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2022-03-31-accounts

FILM NATION UK TRADING AS INTO FILM (A company limited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Company Number: 08210217 Charity Number: 1154030

FILM NATION UK

(A company limited by guarantee)

CONTENTS

Page
Reference and Administrative Information 1
Chairman’s and Chief Executive’s Report 2
Directors’ and Trustees’ Report incorporating Strategic Report 4
Independent Auditor’s Report to the Members 22
Statement of Financial Activities 26
Balance Sheet 27
Statement of Cash Flows 28
Notes to the Financial Statements 29

FILM NATION UK (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT INCORPORATING THE STRATEGIC REPORT

FOR THE YEAR ENDED 31 March 2022

Reference and Administrative Information

Charity Name Company Registration Number 08210217 Charity Registration Number 1154030 Registered Office 31 Islington Green London N1 8DU Auditors Cooper Parry Group Limited Cubo Birmingham Office 401, 4[th] Floor Two Chamberlain Square Birmingham B3 3AX Bankers Barclays Bank plc 27 Soho Square London, W1D 3QR

Film Nation UK (trading as Into Film)

Board of Trustees

Members of the Board of Trustees, who are directors for the purpose of company law and Trustees for the purpose of charity law, who served during the year and up to the date of this report are set out below:

Mr J P F Bradley (resigned 23[rd] June 2021) Ms B D Broccoli OBE Ms L Bryer ** Mr D Clark (resigned 20[th] April 2022) Mr M J Devereux (resigned 23[rd] June 2021) Mr E N Fellner CBE Mr J A Graydon ACA Ms K Lee* (resigned 13[th] March 2022) Ms D Lewis-Egonu (appointed 23[rd ] June 2021) Sir A Macdonald Ms G McKenna Ms A A A Mensah Mr C J Needham Ms N Park Ms L Williams (appointed 23[rd] June 2021)

Senior Management Team

Chief Executive Paul Reeve MBE Chief Technology Officer Alan Reitsch Director of Communications Mark Frodsham Director of Programme Delivery Jane Fletcher Director of Finance and Operations Will Elkerton Director of Business Development Leigh Thomas

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FILM NATION UK (A company limited by guarantee)

CHAIRMAN’S AND CHIEF EXECUTIVE’S REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Soon after the start of our 2021/22 year, cinemas were permitted to reopen. After the many dark days resulting from Covid, finally there was some light at the end of the projector.

Nevertheless, this review covers another far from ‘normal’ year. Our schools faced ongoing disruption, with several studies highlighting the pandemic’s seismic impact on young people’s lives and education. This made it more important than ever for Into Film to help schools utilise the potential of screen storytelling to enrich learning, increase access to culture, and support the vital issue of mental health and wellbeing, in both the classroom and extracurricular settings.

A major milestone was the full launch of Into Film+, the UK’s first free streaming and educational resource service dedicated to film and designed for all school settings. This helped drive a month-on-month increase in the reach of our programme. By the end of the year, 44,000 educators working in UK schools and colleges had an Into Film account, spanning some 20,000 educational institutions – 77% of them outside London and South East England. Independently conducted evaluation of our programme found that teachers highly trust and rate its quality, and that it achieves a broad range of important educational outcomes.

As the year progressed, we were delighted to reintroduce our cinema screenings in venues across the UK. The centrepiece was the Into Film Festival in November which, even with Covid-related issues and precautions limiting capacity, still achieved a total audience of 194,000 children, young people and their teachers.

The lifting of Covid restrictions saw an explosion of film and TV production, which placed an even greater spotlight on the skills shortages facing the industry. Two recent reports from the BFI have identified that the provision of effective careers information in schools will be an integral element of a long-term strategy to address the challenge. Into Film is ideally positioned to play a supporting role, as we serve as a bridge between the industry and the education sector. During 2021/22, we increased our provision of online careers-related content and expanded our programme of talks and webinars involving industry professionals, while our pioneering ScreenWorks work experience programme in Northern Ireland continued to grow.

Now we’re keen to do more. Alongside work to increase awareness of potential screen careers, we want to encourage and enable more schools to involve their students in practical filmmaking, which will foster a range of valuable skills and ignite in some an aspiration to pursue a pathway to the industry. Just as importantly, it will also empower young people to tell their own diverse stories and become makers of their own culture.

It’s a huge privilege to offer the majority of our programme free of charge to state schools and eligible youth settings. The support of our funders (listed below) makes this possible and we are extremely grateful to all of them. In particular, we would like to thank the BFI for its partnership and its trust in us over the last five years, and the UK’s Lottery players who enable the BFI to grant us National Lottery funding. We also extend special thanks to Cinema First, Northern Ireland Screen and the Paul Hamlyn Foundation.

Finally, we would like to pay tribute to our wonderful staff team for their unstinting commitment to our mission, and to our Trustees for their ongoing guidance and support. But most importantly, to all our teachers who continue to inspire their pupils through film.

Eric Fellner, Chairman Paul Reeve, CEO

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FILM NATION UK (A company limited by guarantee)

CHAIRMAN’S AND CHIEF EXECUTIVE’S REPORT

FOR THE YEAR ENDED 31 MARCH 2022

With thanks to:

Our funders:

British Film Institute The National Lottery Cinema First Northern Ireland Screen Paul Hamlyn Foundation British Council

Our film industry ambassadors:

Sir Kenneth Branagh Ruby Barnhill Lynwen Brennan Naomi Harris Rhys Ifans Celyn Jones Katie Leung Jack Lowden Eddie Redmayne Matthew Rhys Michael Sheen Cornelius Walker

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FILM NATION UK

(A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT INCORPORATING THE STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their annual report and audited financial statements for the year ended 31 March 2022. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

Objectives and Activities

Objectives

Into Film puts film at the heart of children and young people’s educational, cultural and personal development. More than half of UK schools engage with our programme of Into Film Clubs, special cinema screenings, and resources and training to support classroom teaching.

Alongside rich online content for young audiences, this provides 5–19-year-olds with inspiring opportunities to learn about and make film, and develop a passion for cinema.

Our mission is to inspire dynamic ways of learning with film and connecting with cinema that reaches the widest possible young audience across the UK.

Our vision is that film is at the heart of every child and young person’s life and learning.

Into Film is a not-for-profit organisation supported principally by the BFI (through the National Lottery), Cinema First and Northern Ireland Screen.

The charitable organisation’s objects as set out in its Articles of Association are:

Public benefit

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charitable company’s aims and objectives and in planning future activities. In particular, the Trustees have considered how planned activities will contribute to the aims and objectives set.

Since its inception, the Into Film education programme has connected with over half of all UK schools, as well as a significant number of colleges and youth groups.

One of our biggest successes is the spread and make-up of our clubs, right across the four nations with the broadest spectrum of schools. We have the greatest geographical reach of any UK cultural education organisation and maybe, outside of the Scouts and Guides, of any UK educational charity.

As a result of support from our principal funders, the BFI and Cinema First, we are able to make our programme free of charge. Both the financial and administrative benefits of this universal access are key drivers of our unparalleled success at reaching scale and achieving diversity within the school system.

Use of volunteers

All club leaders, including head teachers, teachers, classroom assistants and others, give their time to running their clubs on a voluntary basis. Into Film also works with actors, directors, producers, and many other professionals from the film industry who give their time on a voluntary basis in delivering its activities.

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Key achievements, performance, and impact

THE INTO FILM PROGRAMME

Into Film is the UK’s leading charity for film in education. We support educators to unlock the power of film to deliver transformative learning outcomes for children and young people aged 5-19 in class, extra-curricular settings and in cinemas.

Working with educators, we’ve created a programme that features the UK’s only school-specific film streaming service (Into Film+), as well as teaching resources and training, careers information, cinema screenings and a network of extra-curricular film clubs. The core Into Film offering is free for UK state schools thanks to funding from the National Lottery (through the BFI), Cinema First and Northern Ireland Screen.

While this was a year we made great progress in virtual learning and hosting, it's also been fantastic to return in-person to schools, events and panels.

YEAR AT A GLANCE

2021-2022

5,871 44,000 Into Film Clubs UK educator Into Film account holders 138,590 5,500 teaching resources downloaded educators streaming Into Film+ 4,270 74% educators trained Into Film account holders outside London and SE

SINCE WE STARTED

2013-2022

1.2m teaching resources downloaded

1.2m 2.6m teaching resources downloaded children and young people joined the Into Film Festival for free 334,000 film reviews submitted 44,000 children and young people engaged 30,000 in practical filmmaking pupils engaged with in-school industry visits

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Key achievements, performance, and impact (continued)

OUR WORK IN THE CLASSROOM

Film for Learning

Film for Learning was our professional development programme to research the impact of embedding film in the curriculum.

The aim was to improve young people’s engagement, participation and attainment in Key Stage 2. How? By equipping teachers with the skills, confidence and resources to use film in literacy teaching and learning.

Teachers and senior leaders in primary schools across Bristol, Bradford and Belfast were given a bespoke blended learning programme.

Our aim was to enable teachers to embed film-based learning within each school by June 2022. Participating teachers were trained in Film for Literacy Learning and then became Into Film Ambassadors, sharing training and resources.

Together, we successfully embedded film in staff development, literacy curriculum and school development plans.

Film for Learning has changed the way we work with schools. Now our online training courses and resources can help any school achieve the same impact, whatever their specialism.

Big thanks to the Paul Hamlyn Foundation for funding the programme, as well as Nerve Centre, Curriculum Innovation, and boomsatsuma for local delivery support.

Key literacy outcomes

93% of pupils have improved in literacy tests*

85% of teachers have seen improved speaking and listening skills

79% of senior leaders reported a direct correlation between using film in the classroom and pupil engagement

71% of teachers observed an improvement in pupils’ creative writing

*Pupils in participating schools have improved from ‘Working Towards Expected Standards’ to ‘Working At Expected Standard’

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Learning at your fingertips

This was the first full year teachers had access to our Learning Platform.

Our range of courses shows just how relevant film and filmmaking is to teaching and learning; whatever the subject, topic or age group.

Each course features a combination of ready-to-go teaching resources, interactive webinars, specially created videos, film highlights and quizzes.

In 2021-22, we ran nine courses:

3,300 Teaching resources downloaded

81,000 E stimated students reached via educators who use our platform

You only get one shot

Our One-Shot Filmmaking courses demonstrate the power of simple filmmaking techniques, such as ‘Shoot and Screen’, with very little equipment. They help teachers support students in accessing and following curricular learning in class. Essential life skills develop too, including teamwork, problem-solving, communication and critical thinking.

In our 2021 survey of 600+ teachers, here’s how many respondents agreed filmmaking supported these keys skills:

94% Creativity 85% Teamwork
84% Digital skills 70% Problem-solving
87% Communication skills 65% Leadership
87% Confidence 63% Literacy

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Lockdown training

3 out of 4 educators incorporated our training into their teaching and learning practice.

96% planned to use film going forward.

Teachers saw a noticeable to significant impact on student:

80% Attainment 96% Engagement 90% Confidence 88% Essential skills (teamwork, 90% Creativity problem solving etc.)

Into Film resources

This year, our resources covered many themes, including body image, gender and sexuality, wellbeing and grief.

Resources are key to our work, and hugely valuable for teachers. In fact, since we launched in 2013, more than 1.2 million have been downloaded! Our resources mirror national lesson plans and help teachers unpick key cross-curricular themes.

Throughout 2021-22, we produced six key types of resources: curricular, new film releases, assemblies, film guides, training, and online courses.

Thanks to our work with partners like BAFTA and Disney, we gave teachers access to the latest film releases and offered them fantastic insights straight from the experts.

138,000 26 11,000 total downloads new resources most popular resource downloads ( Encanto: Recycle the Rhythm – see below)

We do need to talk about Disney’s Encanto

To celebrate this fantastic film’s cinema release, we partnered with Disney to create Encanto: Recycle the Rhythm . Inspired by the film, our brand-new educational resource brings Madrigal magic to students aged 6- 11.

Tailored to the recent Model Music curriculum update for schools in England, the resource spans music, arts, PSHE and literacy. Pupils develop their music and composition vocabulary over two lessons.

A music consultant (professional musician and composer) advised us on music theory and features in the resource videos. And we used subtitles and on-screen graphics to make sure deaf and hard-of-hearing children could also benefit from the musical resource.

Then, inspired by the passionate Colombian musical, we challenged students to create an eco-orchestra. Using only recyclable materials, they created instruments to produce soulful rhythms and beats!

Teaching music can often call for specialist equipment and knowledge. But, this accessible and fun resource shows leaders how they can bring musical magic to their classroom at no cost, with only everyday materials.

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OUR WORK WITH FILM CLUBS

In both school and out-of-school settings, our Into Film Clubs provide rich and varied opportunities to watch, discuss, review and make films.

We set educators up with all the materials, resources and training. Then clubs can instantly stream over 200 films on Into Film+.

Plus, we organise incentives, competitions and rewards to help engage 5–19-year-olds even further.

An Into Film Club is an exciting, safe and comfortable way for young people to learn, gain confidence and make friends.

Social inclusion

We’re committed to championing equity, equality, diversity and inclusion, and are proud that a high proportion of Into Film Clubs are in areas of disadvantage.

We believe that cultural learning has a dynamic role to play in addressing disparities in achievement and aspiration.

Into Film Club stats

Into Film Club schools with a higher-than-average take-up of free school meals:

47% in England 39% in Wales 49% in Northern Ireland 48% in Scotland are run in schools where +50% of pupils live in areas of economic and social deprivation

INTO FILM+ STREAMING SERVICE

Meet our breakthrough platform: the UK's first free* streaming service designed specifically for schools and educational settings.

We’ve always championed film as a learning tool and an integral element of young people's cultural experience.

Together with Filmbankmedia, we’re able to make film more accessible than ever. Our growing bank of over 200 films covers everything from timeless classics to new releases, with more titles added all the time.

And the best part? Every film comes complete with curriculum-linked educational resources for all ages and abilities. Into Film+ unlocks the power of film like never before – easing planning and enhancing teaching.

Our next phase of development will include content from the BFI National Archive and enable educators to save highlights from films for their teaching

In our January 2022 survey:

93% of respondents would recommend Into Film+ to other teachers ( 77% already had)

100% of respondents gave Into Film+ an average overall score of 4+ (where 1 = Poor, 5 = Excellent)

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Connecting Culture

We’ve continued to help educators and youth leaders mark important cultural dates and milestones through film.

It’s all of our responsibility to help young people grow into socially aware adults, but leading those conversations can be an intimidating task for educators.

With Into Film+, and all its corresponding resources and lesson plans, film becomes a tool to roleplay challenging discussions, spark open debate and encourage solution-finding for young people.

Films include shorts and feature lengths, animations and dramas, blockbusters and independents. Each has an engaging perspective on wider global issues.

World Mental Health Day

From grief and bereavement to bullying and emotional awareness, we curated films to help primary and secondary students develop skills around self-inquiry, wellbeing and compassion.

Plus, we hosted an exclusive Into Film+ Q&A session around the coming-of-age musical Dear Evan Hanson. Director Stephen Chbosky, actor Nik Dodani and Jane Caro (from the Mental Health Foundation) joined us to discuss social anxiety, self-esteem and grief.

LGBTQ+ History Month

Did you know, 1 in 5 teachers say they’re uncomfortable discussing LGBTQ+ topics with pupils? This research, from charity Just Like Us, shows just how valuable the right support can be.

This February (and beyond), we wanted to not only educate and inspire young people across the UK, but also to instigate and normalise peer-to-peer LGBTQ+ discussion. So we collaborated with experts and individuals from across the lesbian, gay, bi, trans, queer, questioning and ace spectrum.

Our curation helps young people explore gender identity and representation, gender reassignment, gay and lesbian rights, discrimination, coming out and self and social acceptance.

Festive Films

The Christmas countdown is an iconic couple of weeks in schools (two nostalgic words for you: TV trolley), so Into Film+ had to share the season’s classics.

Our Into Film+ catalogue was officially Christmas-ified. Heart-warming hits, new animated shorts and festive archive film from the BFI made the shortlist.

Resources and film guides were provided, with exclusive bonus content too.

Plus, the Into Film Festive Quiz returned and we ran a special festive edition of our ongoing Review 500 competition.

Festive figures

1,158 new unique users 2,898 unique video starts 28% increase on all unique users 897 unique resource downloads

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OUR YOUTH ADVISORY COUNCIL

Children and young people are at the heart of our work, and our Youth Advisory Council (YAC) is key to making sure they always feel listened to and valued.

Split across five regional councils, the YAC brings passionate young people together to give feedback on our work and take part in fun film-related activities.

It’s a fantastic opportunity for any young film fan, both to help shape our programme and gain a window into the film industry.

As always, the contribution from this year’s YAC has been fantastic and helped us put young people first (more on that below).

We asked some of our YAC members to share their inspirations, aspirations and advice for other young people

Listening and Learning

Thanks to our YAC, we don’t only work for young people, but with them.

We started the YAC to make sure we’re always in tune with what young people think, and listening to what they have to say.

YAC members play a vital role in informing the resources we give to teachers, and helping us make sure everything is relevant and engaging.

It gives young people the opportunity to voice their opinions and views on wider lesson topics in general, and share their own ideas too.

Our YAC give an invaluable personal insight into what young people need from us right now.

In the past year alone, the council:

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Getting inside the film industry

Career workshops, film festivals and expert Q&As give the YAC a glimpse inside the world of film. This year, our YAC took part in regional festival youth jury panels, including Encounters (supporting new talent in short film and animation), Iris Prize (celebrating LGBTQ+ film), The Scottish Film Festival and Cardiff Animation Festival. One YAC member even handed out an award in Cardiff, representing Into Film.

Plus, the young film fans heard from inspiring experts at the top of their game, with YAC members hosting Q&As and asking their own questions.

Film Programmers from cinemas across the UK explained how cinemas work, and Into Film Board member Nira Park shared her experience as a film and TV producer.

We want YAC members to feel like a career in film is possible. Workshops on CV writing and job-hunting help to set these young people on the right track. In our Q&A with Into Film trustee Col Needham, the IMDb CEO shared his experience and advice on breaking into the industry.

OUR WORK IN FILMMAKING

Film of the Month

Our flagship filmmaking competition makes sure young people aged 5-19 have a place to submit their films, have their voices heard and their stories told.

Entries are assessed on idea, sound, story and look, as well as technical ability. Each and every month, judges have a tough decision on their hands. Previous winners include stop motion animations made by 7- year-olds and silent movies produced by 18-year-olds.

With no restriction on genre or theme, young people are able to create films about topics that matter to them.

We are continually blown away by the exceptional quality of the films submitted to us each month.

Calling out climate change

Thanks to a donation from the Pinewood Studios Group, alongside Glasgow hosting COP26, one local school was able to use filmmaking to bring young people’s voices into the climate conversation.

Back in November 2021, we set a task for Additional Support Needs students at Drumchapel High School, Glasgow.

We asked the group to create a short film on climate change, with expert help from filmmaker and animator Sharon Sorensono.

Over six weeks, Sharon held virtual sessions to help develop their skills; including a viewing of the documentary 2040, for inspiration.

The final piece premiered at the Glasgow Film Theatre, followed by a screening of climate-focused documentary I am Greta. The film was later shown in schools across the country.

Students learnt about filmmaking and climate change, developed essential life skills and felt a huge sense of achievement. Educators and pupils alike gained confidence in short filmmaking.

Thanks to Pinewood Studios for their charity donation that made this project possible.

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OUR WORK WITH THE FILM INDUSTRY

Partnering with the biggest names in film helps us nurture young audiences and lay the groundwork for a thriving cinema industry for years to come.

Through in-cinema activity, sector support and school-facing film marketing campaigns, we aim to cultivate the largest sustainable, passionate and diverse young audience possible.

Our new release marketing campaigns offer targeted reach and engagement with 60K+ named educators across the UK. Partnership programmes are film-branded and expertly mapped to curriculum topics, offering a unique route to reach, teach and inspire future audiences. Plus, our Into Film Festival helps young people from all backgrounds experience the wonder of cinema.

Our role as the bridge between film industry and the education sector is only possible thanks to the support of Cinema First, the BFI, NI Screen and the hard work of thousands of industry professionals across the UK.

Our audience development work

86% of young people are more likely to go and see other films at the cinema as a result of the Into Film Festival

91% of educators surveyed say that using Into Film resources has helped enhance young people's interest in film and cinema-going

INTO FILM FESTIVAL

The world’s largest free film festival for young people has returned!

We were beyond excited to welcome a huge and diverse group of 5–19-year-olds, from right across the UK, to once again join us at the Into Film Festival once again.

We all know how wonderful it feels to have our favourite events back in the calendar – and we were especially looking forward to this one! Even though we had less capacity due to COVID-19 precautions, the atmosphere was as electric as ever.

From exhibition and distribution, to print movement and special guest speakers, thanks to all of the organisations from across the industry who supported us once again.

Together, our partners gave young people the opportunity to experience the gold-standard of film-watching, with some audience members visiting the cinema for the first time ever.

During the Festival period (10th-26th November):

184,809 visitors 25,825 attended cinema for the first time 2,553 screenings and events 496 venues 32,320 attended autism-friendly screenings

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Into Film Festival 2021 highlights:

Thanks to the Into Film Festival:

90% of young visitors are more likely to go to the cinema 95% of teachers said this was the first trip to the cinema for students since Covid-19

Careers behind the camera

Inspired by No Time To Die production trainees, we worked with Universal Pictures UK and ScreenSkills to create a special backstage resource.

We produced an incredible, curriculum linked, resource that embraces the Gatsby Benchmarks and criteria set out by Careers Scotland, Careers Wales and Careers NI. The resource included videos and practical activities that linked to the careers, PSHE, mathematics, science and literacy curriculums.

Exclusive content included behind the scenes footage and interviews (including chats with young people on work placements, giving advice and support for other young people interested in entering the industry)

Inspiring in industry

To mark International Women’s Day (8 March), as well as National Careers Week (7-12 March), we joined forces with BAFTA to talk representation.

Our first in-person event was a diverse, all-female panel that discussed the importance of representation in the industry and how to join the conversation. No matter your race, gender, sexuality or background. Held at Empire cinema in Haymarket in London, host Rhianna Dhillon was joined by Lashana Lynch (No Time to Die, Captain Marvel), Lyttanya Shannon (Subnormal: A British Scandal) and Siân Fever (Wonder Woman, Wonder Woman 1984 The Crown).

They encouraged the young audience to believe in themselves, and that their unique voice and perspective isn’t just valued but needed. Through the panel’s own hard work and experience, they shared tangible advice to help budding actors, directors and editors, plus pearls of wisdom on how to:

As they discussed, although the industry has been so slow to change, it is changing. So now is the time for young people – from all walks of life – to get involved.

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SPECIAL PROJECTS

Turning to the archives

The UK’s historic film gold mine gives an extraordinary insight into our past.

Archive film is a great way to show young people what our ancestors experienced, helping them connect with the past and make sense of the present.

We created many film projects across the UK celebrating the value and importance of looking back in time.

Raising Literacy Through Scottish Film

Inspired by the poetic documentary film From Scotland With Love , we explored Scottish history, heritage and stories through archive footage. Each of the six student activities built towards one final challenge: producing your very own archive piece.

Created with National Library of Scotland Moving Image Archive and Queen Margaret University, with funding from Screen Scotland.

Make Film History

In Yorkshire, Archives for Education started the Make Film History project to develop a sustainable archive footage model, amidst barriers around copyright law and rights clearance. We consulted on a funding bid (running a pilot project in a real school) to design supportive resources for primary and secondary schools.

The pilot was a brilliant learning experience, leaving us with a model to reuse and build on.

Prisons Memory Archive Project

The Prisons Memory Archive in Northern Ireland has a unique collection of more than 120 recordings, short films and photographs.

We developed a rich resource which will give history, politics and journalism students a far deeper understanding of the significance of the prisons, and the importance of preserving our history.

We also created a Teachers’ Guide with the Prisons Memory Archive team at Queen’s University Belfast.

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Spring Screenings

We kicked off 2022 with one message of hope: We Can Be Heroes.

As a counterpoint to the distressing news stories around the world, we wanted to share uplifting tales of togetherness, so we ran three weeks of specially curated films, celebrating inspiring stories from across the globe.

Films included…

Held in major cities and smaller towns across the UK, all screenings were completely free.

Cinema without barriers

All showings featured subtitles to increase accessibility and help improve young people's literacy. A selection of events were also autism friendly, and audio described screenings were available upon request.

National Careers Week

The film industry needs young people! We want to help teachers show that working in film is possible.

We want to show students they could be part of the world’s most thriving nations for film.

In highlighting career paths, we can break down the stigma that working in film isn’t possible for everyone, or that it's only open to the few.

Our ‘near to peer’ approach celebrates diversity and shows young people that they can find a place in the film industry.

The future film industry depends on the creative, smart and inspiring young people we’re working with today.

Over 800 students from 41 schools joined from across the UK, with 86% of respondents rating the session ‘Good/ Excellent’, with the majority rating it ‘Excellent’.

Here are just a few of the talented professionals we worked with during National Careers Week:

26 careers sessions

6,486 young people were reached through our sessions

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Structure, governance, and management

Nature of the governing document

The charitable company is limited by guarantee and does not have share capital. It is governed by its Memorandum and Articles of Association. Film Nation UK is a registered charity, trading as Into Film.

Governance

Into Film has a Board of Trustees, chaired by Eric Fellner CBE. The Board can comprise up to fourteen Trustees, including the Chair. There were twelve Trustees as at 31 March 2022.

There are two permanent Sub-committees: a Finance and Audit committee comprising two Trustees, and a Development committee comprising two Trustees (plus other non-Trustees to help with fundraising), which meet quarterly. Additional expertise led sub-committees will be created as needs demand.

Trustee induction and training

The founding Trustees are experienced as Trustees and have been instrumental in the development of Into Film. Trustees appointed since formation have been inducted by the Chief Executive using a recently compiled induction manual to ensure a comprehensive view of the organisation, its stakeholders, partners, and the wider context in which Into Film operates. Trustees are regularly kept up to date with changes in relevant legislation and receive training where appropriate to their responsibilities.

Senior management structure

The day-to-day management of Into Film is carried out by the Senior Management team comprising the directors of all departments, led by the Chief Executive. Executive team salaries were made equal at the inception of Into Film when they were benchmarked against equivalent roles in the public sector and other educational charities. Since then, they have increased with inflation, where possible, in line with the experience in similar sectors.

Equity, Equality, Diversity and Inclusion (EED&I)

Two years ago, Into Film began a journey to build an inclusive, active listening culture that respects difference, in which staff are happy and proud to create a programme that reflects the diverse society we work within.

In partnership with inclusion consultants Diversity Pride, we completed the first stage of this journey, exploring and articulating what we want to achieve and what our vision is. We began putting tangible actions in place to foster belonging within the organisation and to remove barriers to inclusion across the programme.

This first phase has helped us learn and understand how we can collectively make things better and be open to making lasting change.

Supported by a representative working group, EED&I conversations now happen in all team meetings and progress has been made within recruitment and the accessibility of our online and in-cinema programmes.

Risk Management

In line with best practice and the requirements of the Charity SORP FRS 102, specific consideration has been given to the identification and management of risk within the organisation. This has resulted in a risk register, detailing priorities of importance with required actions identified to manage the risk. This is reviewed twice a year by the Finance and Audit committee and quarterly by the Senior Management Team. Details of specific risks facing the organisation and the steps taken by the Trustees to manage these risks are given on the following page.

Page 17

FILM NATION UK (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT INCORPORATING THE STRATEGIC REPORT - continued

FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance, and management (continued)

Principal Risks and Uncertainties

The main risks facing the charity are:

Lottery funding is at risk from fluctuations in future Lottery income, and funding from Cinema First will depend to an extent on the future commercial marketplace. This is mitigated through continued work to further programme impact and dialogue with the BFI regarding approaches to maximising public value; researching where there is potential to continue elements of programme, and introducing new ones, that could attract alternative income sources and use findings to inform the Business Plan; and implementing a fundraising strategy. In the future we plan to co-opt a Development Specialist on to Board and have already set-up a Board Fundraising sub-committee.

This risk has increased since the arrival of COVID-19, however we remain in close contact with our funders, who have remained supportive during this period. We have also planned for different funding scenarios to ensure that the organisation is not adversely affected by a reduction.

This is the same risk as in previous years, however, due to the pandemic, we have been given an extra year of Lottery funding, so the uncertainty is now what happens beyond 31 March 2023.

COVID-19 has had a significant impact on both the film and education sectors, which we will continue to monitor and change our strategy accordingly. During the pandemic, we switched to online delivery for many of our activities and continued to do so even after we were able to safely return to face-to-face delivery. Our staff are our priority and have worked from home since before the lockdown; since then, we have put in place as many processes as possible to help people work as effectively as possible under difficult and varied individual circumstances, to maintain work relationships and monitor their mental health and well-being.

The challenge now is to incorporate the developments and learning from remote working and online delivery into the next organisational strategy and ensure that our working conditions and arrangements are the best possible for our staff and the organisation.

The delivery of the Into Film programme has relied heavily on our DVD order service, which has now been replaced (and enhanced) by the development of our own streaming service, Into Film+. As streaming from providers to customers becomes more commonplace, the urgency of the government to extend existing film licensing legislation for education organisations to cover streaming becomes ever more pressing. This is mitigated by using specialist legal advice and a Board working group to address licensing issues.

Given the overall reduction in funding for cultural and film education activity, securing funds has become harder in the current climate. We monitor fundraising quarterly, with the Director of Business Development responsible for commercial income and income from trusts and foundations.

Page 18

FILM NATION UK (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT INCORPORATING THE STRATEGIC REPORT - continued

FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance, and management (continued)

Financial Review

A summary of the financial results and the work of the Charity are set out below.

Income and expenditure for the year

The Statement of Financial Activities for the year is set out on page 27 of the financial statements. A summary of the financial results and the work of the Charity is set out below.

Total income for Into Film for the year was £5,787,233 comprised mainly of donations and grants from film and education related organisations, with the majority (£4,767,500) being Lottery funding distributed by the British Film Institute (BFI).

Total expenditure for the year was £5,844,087 which has resulted in a net deficit of £56,854. This is due mainly to costs incurred in 2021/22 that relate to designated reserves or restricted income received in previous years.

The net unrestricted income, including income retained from restricted projects, was £151,598 which means our freely available reserves have increased to £685,165.

Reserves policy

In accordance with the Charity’s Articles of Association, Film Nation UK may set aside funds for special purposes or as reserves against future expenditure. The Board of Trustees have agreed that it is prudent to retain a level of reserves sufficient to cover the costs of transition, in the event of significantly reduced funding. The level of funding is reviewed annually, and the reserves increased if required and funds are available.

Given that our Lottery contract stipulates that we would receive six months’ funding at the current levels, should we get any reduction or notice of cessation of funding (the equivalent to £400,000 per month), Trustees have deemed that holding additional general reserves of around £300,000 is more than sufficient. The level of reserves held at 31 March 2022 exceeds the reserves target, in light of both COVID-19 and the point the organisation is in the funding cycle.

In 2019/20 we designated additional reserves towards digital development, to ensure that there were funds available to continue to develop and launch our Video on Demand (VoD) service and associated Learning Management System (LMS). Most of these funds were used during last year; now that both services have been launched, the remaining reserves have been used to offset the costs of running the services during 2021/22.

In 2020/21 we also designated two additional reserve amounts: donations received from EON, which will be used against specific activity, yet to be decided; plus, the carry forward of NI Screen income, which is unrestricted income but has been allocated against NI costs in 2021/22.

This has led to unrestricted general funds as at 31 March 2022 of £685,165, unrestricted designated funds of £198,426 and restricted funds of £243,682.

Further detail regarding fund balances is given at Note 14 to the financial statements.

Investments

Apart from cash deposits Into Film does not have investments. Investments are permitted under the Articles of Association and the Board of Trustees will seek to develop an appropriate policy when required.

Page 19

FILM NATION UK (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT INCORPORATING THE STRATEGIC REPORT - continued

FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance, and management (continued)

Fundraising

Into Film does not actively raise funds from the public but does occasionally receive unsolicited donations from individuals or organisations. These are ring fenced and allocated to specific activity, either at the request of the donor or as suggested by Into Film.

We do employ a small (freelance) fundraising team who work mainly on securing income from trusts, foundations, and corporate bodies.

Looking to the future

Into Film’s five-year strategy identifies the following objectives, that remain in place for 2022/23:

Page 20

FILM NATION UK (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT INCORPORATING THE STRATEGIC REPORT - continued

FOR THE YEAR ENDED 31 MARCH 2022

Responsibilities of the Trustees

The Trustees (who are also the directors of Film Nation UK for the purposes of company law) are responsible for preparing the Directors’ and Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the 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:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

This report has been prepared taking advantage of the exemptions for small companies in section 15 of the Companies Act 2006.

Auditors

Cooper Parry Group Limited has expressed its willingness to continue in office and will be proposed for reappointment at the Annual General Meeting.

Approved by the Board of Directors on 19 October 2022 and signed on behalf of the Board:

Eric Fellner Chairman

Page 21

FILM NATION UK (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES

OF FILM NATION UK

Opinion

We have audited the financial statements of Film Nation UK (“the charitable company”) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Material uncertainty related to going concern

We draw attention to note 1 underneath the heading “Going Concern” in the financial statements, which confirms that the charitable company, at the time of signing these accounts, has not had its funding for the most recent round of Lottery funding (financial year 2023/24 onwards) confirmed by its principal funder, the BFI. As stated in note 1, these events or conditions, along with the other matters as set forth in note 1, indicate that a material uncertainty exists that may cast significant doubt on the charitable company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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

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

Page 22

FILM NATION UK (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES

OF FILM NATION UK - continued

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the report of the Trustees, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ and Trustees’ Annual Report .

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

Page 23

FILM NATION UK (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES

OF FILM NATION UK - continued

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page 22, 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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our assessment focussed on key laws and regulations the charitable company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, Charities Act 2011, taxation legislation, data protection and employment legislation.

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

Page 24

FILM NATION UK

(A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES

OF FILM NATION UK – continued

Auditor's responsibilities for the audit of the financial statements (continued)

Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members and Trustees those matters we are required to state to them in an auditor's 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 members and trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Glen Bott FCA

Senior Statutory Auditor for and on behalf of:

Cooper Parry Group Limited

Chartered Accountants and Statutory Auditor Cubo Birmingham Office 401, 4th Floor Two Chamberlain Square Birmingham B3 3AX

Date: 24 October 2022

Page 25

FILM NATION UK (A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (incorporating an income and expenditure account)

FOR THE YEAR ENDED 31 March 2022

Notes
INCOME FROM:
Donations and legacies
2
Other trading activities
3
Investments
4
Charitable activities
5
Total income
EXPENDITURE ON:
Costs of generating funds
Charitable activities
Total expenditure
6
NET (EXPENDITURE)/INCOME FOR
THE YEAR
Transfer between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward at 1 April
Total funds carried forward at 31 March
14		 General
Funds
£
Restricted
Funds
£
2022
Total
£
2021
Total
£
45,311
-
45,311
151,407
383,341
-
383,341
304,288
1,268
-
1,268
520
4,882,563
474,750
5,357,313
5,048,000
5,312,483
474,750
5,787,233
5,504,215
75,118
-
75,118
66,923
5,443,861
325,108
5,768,969
5,690,580
5,518,979
325,108
5,844,087
5,757,503
(206,496)
149,642
(56,854)
(253,288)
147,998
(147,998)
-
-
(58,498)
1,644
(56,854)
(253,288)
942,089
242,038
1,184,127
1,437,415
883,591
243,682
1,127,273
1,184,127

All income and expenditure derive from continuing activities.

The statement of financial activities incorporates all gains and losses recognised in the above two financial periods.

The notes on pages 29 to 41 form part of these financial statements.

Page 26

FILM NATION UK (A company limited by guarantee)

BALANCE SHEET

COMPANY No. 08210217

AS AT 31 March 2022

Notes
FIXED ASSETS
Tangible fixed assets
11
Investments
20
CURRENT ASSETS
Debtors
12
Bank and cash balances
CREDITORS: Amounts falling due within one year
13
NET CURRENT ASSETS
NET ASSETS
Represented by:
Unrestricted - general funds
14
Unrestricted - designated funds
14
Restricted funds
14		 2022
£
2021
£
15,440
14,877
-
-
15,440
14,877
398,162
234,114
1,180,709
1,612,378
1,578,871
1,846,492
(467,038)
(677,242)
1,111,833
1,169,250
1,127,273
1,184,127
685,165
533,567
198,426
408,522
243,682
242,038
1,127,273
1,184,127

The financial statements were approved by the board of directors on 19 October 2022 and are signed on its behalf by:

Eric Fellner Chairman

The notes on pages 29 to 41 form part of the financial statements

Page 27

FILM NATION UK (A company limited by guarantee)

STATEMENT OF CASH FLOWS for the year ended 31 March 2022

Notes
Net cash used in operating activities
17(a)
Cash flow from investing activities
Capital expenditure
17(b)
Net cash used in investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at 31 March 2022
Cash and cash equivalents at 31 March 2021
Cash and cash equivalents consist of:
Cash at bank and in hand		 2022
£
2021
£
(416,192)
26,834
(15,477)
(5,644)
(15,477)
(5,644)
(431,669)
21,190
1,180,709
1,612,378
1,612,378
1,591,188
1,180,709
1,612,378

Page 28

FILM NATION UK (A company limited by guarantee)

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

1 Accounting policies

Basis of preparation

Film Nation UK (trading as Into Film) is a charity limited by guarantee in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are in education among children and young people using film as a learning tool.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Incoming resources

All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).

Voluntary income by way of grants, donations and gifts is included in full in the Statement of Financial Activities when receivable and when the amounts are known with certainty and are measurable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charitable company, are recognised when it becomes unconditionally entitled to the grant.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably, and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example, the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the charitable company earns the right to consideration by its performance. Where income is received in advance of performance it is treated as deferred income and included within creditors.

The charitable company receives government grants in respect of its award from the British Film Institute. Income from government and other grants are recognised at fair value when the charitable company has entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.

Page 29

FILM NATION UK (A company limited by guarantee)

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

1 Accounting policies (continued)

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably.

Charitable expenditure comprises those costs incurred by the charitable company in the delivery of its activities and services for its beneficiaries.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charitable company and include audit fees and costs linked to the strategic management of the charitable company.

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity comprise both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Fund accounting

Restricted funds

Restricted funds represent grants and donations received which are subject to restrictions on their expenditure imposed by the donor or through the terms of an appeal. The aim and use of each restricted fund are set out in the notes to the financial statements.

Unrestricted funds and designated funds

Unrestricted funds represent funds that are expendable at the discretion of the directors in the furtherance of the objects of the charitable company. Such funds may be held in order to finance both working capital and capital investment.

Designated funds are those funds which are unrestricted in nature, but which have been designated by the directors to be used in a particular manner.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Fixtures, fittings & equipment 4 years straight line Plant & machinery etc. 3 years straight line

Assets purchased which are under £500 are expensed to the Statement of Financial Activities.

Page 30

FILM NATION UK (A company limited by guarantee)

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

1 Accounting policies (continued)

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Recognition of liabilities

Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.

Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in for that service.

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

VAT

VAT is only partially recoverable by the charitable company. Any irrecoverable VAT is included within the relevant costs in the Statement of Financial Activities.

Tax

The charitable company meets the definition of a charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Going concern

The Trustees assess whether the preparation of the financial statements on a going concern basis is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements.

At the time of approving these financial statements, the charitable company is taking part in the application process for the next round of Lottery funding, with confirmation by the BFI of the next three year’s Lottery funding awards not expected until January 2023. The Trustees consider the going concern basis to be appropriate based on the expectation that the charitable company is successful with the funding applications however the Trustees acknowledge that there is a material uncertainty because if the application for this funding is unsuccessful then this would cast significant doubt on the ability of the charitable company to continue as a going concern.

The Trustees have concluded that the adoption of the going concern basis for these financial statements remains appropriate, however acknowledge that there is a material uncertainty in relation to the matter noted above.

Page 31

FILM NATION UK (A company limited by guarantee)

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

Donations and legacies 2022 2021
£ £
Donations 45,311 151,407

2 Donations and legacies

All of the income received in respect of donations and legacies was attributable to unrestricted funds in both the years ended 2022 and 2021.

3
Other trading activities
Cinema First
Sponsorship
Earned income
Sale of assets		 2022
£
2021
£
145,000
271,875
-
(40,000)
237,335
72,413
1,006
-
383,341
304,288

All of the income received in respect of other trading activities was attributable to unrestricted funds in both the years ended 2022 and 2021.

The sponsorship amount in 2021 relates to sponsorship income not collected due to the cancellation of the 2021 Awards.

4 Investments 2022 2021
£ £
Bank interest receivable 1,268 520

All of the income received in respect of investments was attributable to unrestricted funds in the year ended 2022 and 2021.

Page 32

FILM NATION UK (A company limited by guarantee)

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

5 Income from charitable activities
Income from charitable activities
Restricted
Paul Hamlyn
Northern Ireland Screen
British Council
Merthyr Tydfil CC
Unrestricted
BFI grants receivable
Northern Ireland Screen
Trust & Foundations		 2022
£
2021
£
120,000
116,500
184,000
259,000
160,750
25,000
10,000
-
4,767,500
4,517,500
115,063
129,000
-
1,000
5,357,313
5,048,000

A grant of £24,000,000 was awarded to Into Film by the British Film Institute for the five-year period commencing 1 April 2018. The BFI grant income identified for 2021/22 represents the cash drawn down during the financial year.

During 2017/18 an amount of £130,000 was drawn down early, to cover the costs of setting up a DVD delivery service for film clubs, to replace the service previously run by LOVEFiLM. This means that the amount available for the remaining 4 years of the BFI contract will be reduced by the same amount.

In 2020/21, COVID-19 meant that our costs were less than expected, so we requested that we delay drawing down £250,000 of Lottery funds to the final year of the original contract. As the pandemic continued into 2021/22, we found ourselves in a similar position, and requested that those funds be carried over for another year.

During 2020/21 we were also informed by the BFI that COVID-19 had delayed the planning of the next funding cycle; instead, we would get an additional year of lottery funding, at the original level, meaning our current Lottery funding will now end at 31 March 2023.

This gives a final year Lottery balance of £5,050,000 to be drawn down in 2022/23.

Page 33

FILM NATION UK (A company limited by guarantee)

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

6 Analysis of expenditure on charitable activities

Costs of generating income
Salaries, pensions and other
staffing costs
Direct costs
Audience development
Commercial activity
Communications and PR
Content
Digital
Digital Development (Streaming & LMS)
Events and Into Film Festival
Filmmaking
Programme Delivery
British Council (Camara Chica)
ICAP (Moving Minds)
Paul Hamlyn (Film for Learning)
Northern Ireland Screen (ScreenWorks)
Northern Ireland Screen (Mentoring pilots)
Merthyr Tydfil (Community Renewal Fund)
Overhead costs
Customer Relationship Manager (CRM)
Finance
Human Resources
Information Technology
Offices and premises
Strategy & Planning
Governance(note 7)		 Unrestricted
Funds
£
Restricted
Funds
£
2022
Total
£
2021
Total
£
75,118
-
75,118
66,923
(209)
-
(209)
6,721
56,745
-
56,745
28,200
657,471
-
657,471
681,658
255,078
-
255,078
269,694
594,524
-
594,524
514,495
386,602
-
386,602
418,230
174,657
-
174,657
92,577
69,654
-
69,654
41,475
1,441,862
-
1,441,862
1,351,082
-
59,564
59,564
31,287
-
8,967
8,967
83,543
-
96,521
96,521
89,040

-
153,387
153,387
140,190

-
6,622
6,622
17,793

-
47
47
-
84,500
-
84,500
100,569
141,404
-
141,404
74,604
181,187
-
181,187
328,398
417,785
-
417,785
473,129
457,359
-
457,359
404,968
420,881
-
420,881
438,281
104,361
-
104,361
104,646
5,518,979
325,108
5,844,087
5,757,503

Page 34

FILM NATION UK (A company limited by guarantee)

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

7
Governance costs
Audit & Accounting fees
Salaries
8
Net expenditure for the year
Net expenditure is stated after charging:
Depreciation of owned assets
Insurance: Trustees’ and senior staff indemnity insurance
Audit fees – current year
 2022
Total
Funds
£
2021
Total
Funds
£
25,808
26,649
78,553
77,997
104,361
104,646
2022
£
2021
£
13,919
11,216
9,535
9,535
17,500
17,450

9 Pension costs

Into Film operates a salary sacrifice contribution pension scheme in respect of its employees. The scheme and the assets are held by independent managers.

In October 2017, the charity implemented auto-enrolment for all its staff, increasing the number of employees using the pension scheme. At 31 March 2022, a total of 78 employees participated in these schemes (2021: 78). The charitable company will match the percentage contribution by the employee, up to a maximum of 5% of salary.

The pension charge in the year was £268,728 (2021: £283,897) and at the year-end there were £32,766 contributions payable (2021: £31,441).

Page 35

FILM NATION UK (A company limited by guarantee)

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

10
Staff costs
Wages and salaries
Social security costs
Pension costs
Redundancy costs		 2022
£
2021
£
2,891,437
2,949,614
302,303
306,692
268,728
283,898
24,375
-
3,486,843
3,540,204

Number of employees

The average monthly numbers of employees (excluding the trustees) during the year, calculated on the basis of full-time equivalents, was as follows:

Chief Executive’s office
Communications and PR (now includes Web content team)
Digital
Education
Partnerships and Strategy
Finance and Operations		 2022
Number
2021
Number
2
2
18
21
8
8
36
36
8
8
6
6
78
81

The number of employees (individuals) was 95 (2021: 92).

The number of employees whose emoluments amounted to £60,000 or more in the year was as follows:

2022 2021
Number Number
£60,001 - £ 70,000 5 6
£80,001 - £ 90,000 1 1
£90,001 - £100,000 1 1

Pension contributions in respect of the seven higher paid staff were £23,412 (2021: eight higher paid staff were £28,332).

No salaries or wages have been paid to Trustees during the year (2021: £nil).

No charity Trustee received payment for professional or other service supplied to the charity (2021: £nil).

The total amount of employee benefits received by key management personnel is £515,852 (2021: £509,522). The key management personnel consist of six individuals (2021: six): the Chief Executive, Director of Programme Delivery, Director of Business Development, Director of Finance and Operations, Chief Technology Officer, and Director of Marketing and Communications.

Page 36

FILM NATION UK (A company limited by guarantee)

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

11
Tangible fixed assets
Costs
As at 1 April 2021
Additions
Disposals
As at 31 March 2022
Depreciation
As at 1 April 2021
Disposals
Charge for the year
As at 31 March 2022
Net book values
As at 31 March 2022
As at 31 March 2021
12
Debtors
Trade debtors
Other debtors
Prepayments and accrued income		 Fixtures,
Fittings &
Equipment
91,481
-
(6,817)		 Computer
Equipment
Total
£
26,755
118,236
15,477
15,477
-
(6,817)
84,664 42,232
126,896
87,750
(5,822)
1,674		 15,609
103,359
-
(5,822)
12,245
13,919
83,602 27,854
111,456
1,062 14,378
15,440
3,731 11,146
14,877
2022
£
2021
£
36,271
52,048
1,435
4,073
360,456
177,993
398,162
234,114
13
Creditors: Amounts falling due within one year
Trade creditors
Other creditors
Accruals
Deferred income		 2022
£
2021
£
148,492
331,736
113,773
125,024
204,773
177,982
-
42,500
467,038
677,242

Page 37

FILM NATION UK (A company limited by guarantee)

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

14 Fund balances

Fund balances at 31 March 2022 are represented by:
Tangible fixed assets
Current assets
Current liabilities
Fund balances at 31 March 2021 were represented by:
Tangible fixed assets
Current assets
Current liabilities		 General
£
Restricted
£
Total
£
15,440
-
15,440
1,335,189
243,682
1,578,871
(467,038)
-
(467,038)
883,591
243,682
1,127,273
14,877
-
14,877
1,604,454
242,038
1,846,492
(677,242)
-
(677,242)
942,089
242,038
1,184,127
2021/22
Restricted Funds
ICAP
Paul Hamlyn
NI Screen (Projects)
British Council
Merthyr Tydfil
Unrestricted Fund
General Funds
Designated Funds
Cinema First
Digital development
EON donation
NI Screen (Clubs)
Fixed asset fund		 At 1 April
£
Incoming
Resources
£
Outgoing
Resources
£
Transfers
£
At 31 March
£
33,957
-
(8,967)
(24,990)
-
69,827
120,000
(96,521)
(22,200)
71,106
76,817
184,000
(160,009)
(100,808)
-
61,437
160,750
(59,564)
-
162,623
-
10,000
(47)
-
9,953
242,038
474,750
(325,108)
(147,998)
243,682
533,567
5,020,841
(5,001,764)
132,521
685,165
100,000
145,000
(245,000)
-
-
111,016
-
(111,016)
-
-
151,407
31,579
-
-
182,986
31,222
115,063
(146,285)
-
-
14,877
-
(14,914)
15,477
15,440
1,184,127
5,787,233
(5,844,087)
-
1,127,273

Page 38

FILM NATION UK (A company limited by guarantee)

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

14 Fund balances (continued)

2020/21
Restricted Funds
ICAP
Paul Hamlyn
NI Screen (Projects)
British Council
Unrestricted Fund
General Funds
Designated Funds
Cinema First
Digital development
EON donation
NI Screen (Clubs)
Fixed asset fund		 At 1 April
£
Incoming
Resources
£
Outgoing
Resources
£
Transfers
£
At 31 March
£
150,000
-
(83,543)
(32,500)
33,957
92,317
116,500
(89,040)
(49,950)
69,827
-
259,000
(157,983)
(24,200)
76,817
67,724
25,000
(31,287)
-
61,437
310,041
400,500
(361,853)
(106,650)
242,038
612,679
4,551,433
(4,731,551)
101,006
533,567
115,000
271,875
(286,875)
-
100,000
379,246
-
(268,230)
-
111,016
-
151,407
-
-
151,407
-
129,000
(97,778)
-
31,222
20,449
-
(11,216)
5,644
14,877
1,437,415
5,504,215
(5,757,503)
-
1,184,127

Description of funds

General funds include any reserves available to be used in the event of future reductions in funding.

The Paul Hamlyn funding is for the Film for Learning project, to provide teachers with CPD to develop their film analysis, animation and filmmaking skills, and embed film in the classroom.

The ICAP funding is being used to explore and promote mental wellbeing through filmmaking, with professional filmmakers working with young people to improve their confidence, find their voice, learn about working in a fun and creative team, and to gain filmmaking skills and experience.

The NI Screen funding is being used to deliver the ScreenWorks project, a scheme to help young people in Northern Ireland aged 16-19 to explore screen crafts through a range of unique work experiences and a mentoring pilot.

The British Council funding is for the Camara Chica project, which runs filmmaking courses in overseas countries.

The transfers between the Restricted and General Funds represent amounts retained by Into Film to cover internal staff costs, management fees and other costs, as agreed with each funder.

Page 39

FILM NATION UK (A company limited by guarantee)

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

14 Fund balances (continued)

The Designated Funds represent funds ring-fenced by the Board in respect of the following:

15 Leasing commitments

The total future minimum lease payments under non-cancellable operating leases in respect of land and buildings are as follows:

Expiry Date 2022 2021
£ £
Within 1 year 181,400 200,460
Within 2-5 years 73,840 45,000

16 Capital commitments

There were no capital commitments at the balance sheet date (2021: £nil).

17 Cash flow notes

(a) Reconciliation of net expenditure to net cash flow from operating activities

Net expenditure for the year
Depreciation
Loss on disposal
(Increase)/ decrease in debtors
Increase/ (decrease) in creditors
Net Cash used in operating activities		 2022
£
2021
£
(56,854)
(253,288)
13,919
11,216
955
-
(164,048)

68,267
~~(210,204)~~
~~200,639~~
(416,192)
26,834

Page 40

FILM NATION UK (A company limited by guarantee)

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

17 Cash flow notes (continued)

(b)
Capital expenditure
Purchase of tangible fixed assets
(c)
Analysis of changes in net debt
At 1 April
2021
£
Cash at bank and in hand
1,612,378		 2022
£
2021
£
(15,477)
(5,644)
Cash
flows
£
At 31 March
2022
£
(431,669)
1,180,709

18 Controlling interest

The charitable company is controlled by its Trustees.

19 Company limited by guarantee

Film Nation UK is a charitable company limited by guarantee and accordingly does not have a share capital. The liability of each member of the charitable company is limited to £1 in the event of it being wound up while he or she is a member, or within one year after he or she ceases to be a member.

20 Investments

Subsidiary undertakings

The following charitable companies are Limited by Guarantee and are under the control of Film Nation UK at the balance sheet date.

Subsidiary name

First Light Movies Limited Company No. 05730661 Dormant Company Film Club (UK) Company No. 05895219 Dormant Company

Page 41