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2021-03-31-accounts

GREATER MANCHESTER ARTS CENTRE LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR

THE YEAR ENDED MARCH 31 2021

Company number 1681278 Charity number 514719

GREATER MANCHESTER ARTS CENTRE LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

INDEX
Administrative information 1
Trustees’ and Directors’ annual report 2 – 11
Auditors’ report 12 – 14
Group statement of financial activities 15
Company statement of financial activities 16
Group balance sheet 17
Company balance sheet 18
Statement of cash flows 19
Notes to the financial statements 20 – 39

GREATER MANCHESTER ARTS CENTRE LIMITED ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED MARCH 31 2021

OPERATIONAL NAME

HOME

DIRECTORS
Name Appointed/Resigned Position Subcommittee
(see key below)
J S Claypole-Smith Chair FC
N S Arthanayake
J Bloxham
N M Ibu FC
K Jackson
C Jeffries FC Chair FC
V L Pinnnigton
Cllr L Rahman *
R Ruia FC
S T Sorrell
Cllr B Stone ** Resigned 7/05/21

(*Cllr L Rahman nominated by Manchester City Council. ** Cllr B Stone nominated by GMCA)

SENIOR MANAGEMENT TEAM Chief Executive D J Moutrey Executive Director J Gilchrist Technical Director S Pritchard Development Director R Joyce Director of Finance C Riches Director of Marketing & Communications B Turnbill Creative Director: Film & Culture J Wood

REGISTERED OFFICE AND HOME PRINCIPAL PLACE OF BUSINESS 2 Tony Wilson Place Manchester M15 4FN AUDITORS Chittenden Horley Chartered Accounts and Statutory Auditors 456 Chester Road Old Trafford Manchester M16 9HD SOLICITORS Weightmans 1 Spinningfields Hardman Square Manchester M3 3EB BANKERS Royal Bank of Scotland Plc 8 Mosley Street Manchester M60 2BE

SUBCOMMITTEES FC – Finance Sub-committee

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GREATER MANCHESTER ARTS CENTRE LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

The trustees present their annual report together with the consolidated financial statements of the charity and its subsidiaries for the year ended March 31 2021.

REPORTING FRAMEWORK

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 (FRS102) (effective 1 January 2019), referred to as the Charities SORP (FRS 102) (second edition – October 2019).

OBJECTIVES AND ACTIVITIES

Charitable objects

The objects of the Charity are:

“to promote, maintain, improve and advance education, particularly by the encouragement of the Arts, including the arts of cinema, drama, dance, photography, painting and sculpture and including all other arts of a visual nature provided that all the objects of the Company shall be of a charitable nature.”

To achieve this, the Charity creates and presents work under the brand of HOME in Manchester and distributes art books under the brand Cornerhouse Publications.

HOME is the trading name for Greater Manchester Arts Centre Ltd (GMAC) and is one of the UK's leading centres for theatre, film and visual arts.

GMAC is funded on an annual basis by the Arts Council of England (ACE), the Greater Manchester Combined Authority (GMCA) and the British Film Institute (BFI). As a Group pre-pandemic, it had incoming resources of £6.4 million of which c68% is earned from cinema box office, theatre box office, trading, fundraising, sponsorship and SLA contract funding from Manchester City Council (MCC).

GMAC is a National Portfolio Organisation (NPO) for ACE and has successfully applied for NPO status for the period 2018 – 2022. Due to the pandemic, GMAC applied for the 2022/23 NPO one year extension with a plan showing how the investment principles are to be met. This extension will help organisations bridge the gap until the next full NPO application in 2022. As part of the planning for the long-term strategy over this time period, the Mission, Vision and Values of GMAC centre on thriving and being sustainable in the future.

Vision

HOME is central to making Greater Manchester a major city celebrated for its distinctive art; art that enriches the lives and life chances of its people, a magnet for artists and creatives with the highest engagement in the arts in the UK.

Mission

HOME is an open and social space place for the curious from all our communities, future artists and producers of work that is provocative, playful and contemporary, of Manchester and the world.

Values

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GREATER MANCHESTER ARTS CENTRE LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

For 2020/21, HOME had the following strategic aims :

However, these aims had to be adjusted due to the enforced closure of the venue due to the pandemic. The organisation had to adapt its business model and look to deliver in different ways. These outcomes are laid out in the achievements and performance section.

Activities

To achieve our strategic objectives HOME undertakes the following activities:

HOME Film - An extraordinary and independent programme and experience across five screens

HOME Theatre - is international, interdisciplinary, provocative, questioning, visual and poetic.

HOME Visual Art - foregrounds artists' projects working across its distinctive strengths - artist film, performance and participation

HOME Engagement – with, and for, the people of our city

HOME Talent Development - to help to develop creative talent across our artforms

Cornerhouse Publications – distribution of high quality artists’ books

Public benefit

In shaping the objectives, and planning the activities for the year, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance on public benefit requirement and fee charging. The charity relies on grants and the generated income from fees and charges to cover its operating costs. In setting the level of ticket prices, fees and other charges the trustees give consideration to the accessibility to activities for those on low income.

Use of social investments

GMAC did not make any social investments as defined by the SORP in 2020/21.

Contribution of volunteers

HOME has engaged 29 volunteers in various activities across the organisation. Collectively, these volunteers have contributed 1,336 hours via a range of tailored schemes.

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GREATER MANCHESTER ARTS CENTRE LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

Achievements and Performances

2020/21 was the sixth year trading as HOME, but it proved to be a year devastated by the Covid-19 pandemic.

The previous year had been GMAC’s most successful year to date, with nearly 900,000 visits to HOME, around 7,000 events taking place and over 20,000 people engaged in arts practice from our communities. HOME had an economic impact to the city of £26 million. However, Greater Manchester was one of the regions hardest hit by coronavirus restrictions – and HOME had the longest time with the toughest tier restrictions for arts venues. HOME was only able to open a total of 62 days in 2020/21, and this with social distancing limiting capacities in theatres, cinemas and galleries. When open, restrictions on hospitality further impacted ancillary trading.

The March 2020 closure due to coronavirus was a devastating blow. HOME has managed the financial impact and ongoing risk by:

Despite these adaptations, HOME remained committed to delivering the objectives of the charity through innovation – creating work digitally or with social distancing in place. The organisation positioned itself at the heart of the economic and cultural recovery of the city, and committed to supporting the freelance creative ecology of the city that were devastated by the closure of the arts infrastructure.

Homemakers

HOME’s team realised that to support artists the organisation needed to find a way to commission them to create new work despite the lockdown. And furthermore, HOME saw an artistic opportunity. Could the pandemic and our collective experience of ‘locking down’ be a creative prompt to redefine the concept of live art, producing works that have a lasting, digital legacy?

The initial release of five fully-funded Homemakers commissions for artists to create new works at home, for audiences at home became available to the public in early May, just eight weeks after the lockdown. Works ranged from video performances and interactive games, to handwritten fantasy scenarios and silent gothic horrors, all to be enjoyed and interacted with, from home.

The series was extended even further with plans for new works to be released in Summer 2021, and there are now over 30 commissions from artists creating work across the UK and internationally. Some artists featured in the series are HOME regulars, such as Javaad Alipoor, Bryony Kimmings and Hot Brown Honey, while other works were with commissioning partners across the country – such as Music Theatre Ways and London Sinfonietta, Cambridge Junction, and Chinese Arts Now, among others – new artists were brought to a HOME audience.

Social Distanced Re-Opening

HOME opened to the public on 4 September 2020 following a thorough consultation with audiences and stakeholders. This included the formation of the “HOME Soon Panel”, a group which included artists, audiences, staff and volunteers. This group helped inform the strategy for reopening, which included social distancing measures, approach to programming and the need to retain digital work for audiences less confident about returning.

Cinema: The programme picked up where it left off, including new releases and festival screenings that were unable to take place. This included Viva Festival events, new releases including the reproduction of La Haine and Les Miserables and special one off screenings including Parasite and The Elephant Man shown in Theatre 1.

Theatre: HOME was amongst the first venues to offer a full season of 11 theatre shows to a live audience, including three World Premieres, and with cinemas, theatres and galleries all open by early October. This included world premieres by Rash Dash and David Hoyle.

Visual Art: HOME’s 2020 gallery reopening exhibition was Art Comes HOME. This featured three artist presentations: Bubbling Pitch by MSR FCJ, Blue Glass Fortunes by Joy Yamusangie , and Our Plague Year by Nick Burton.

With social distancing, the spaces were operating at around 22% capacity, and with a reduced screening schedule. Audience demand was clear, with over 9,300 visits and 60% of theatre performances selling out, and audience surveys showing 97% thought safety measures were good or excellent.

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GREATER MANCHESTER ARTS CENTRE LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

Live to Digital

Due to a change in the public health context, HOME was subject to a further forced closure in November. Through clear planning, HOME was able to move the vast majority of the live theatre programme online. By using remote PTZ cameras, filming could be done at a safe distance in a separate room. The cameras could be operated by a single person and streamed in HD, ensuring that the quality of the filming matched the quality of the work. Although our artists had started to plan for the shift to livestreamed digital performances, online audience interaction was unchartered territory, which led to innovative and playful outcomes.

Shows such as High Rise eState of Mind, The Believers are But Brothers, and Sh!t Actually played to 3,394 digital audience members direct from HOME.

Online Programme

The visual art programme also moved online, which included a serialisation of the graphic novel Our Plague Year, which was viewed by 12,500 people. HOME also did digital gallery tours for audiences not comfortable to return to the venue when it was open, and to provide sustained digital engagement when the second lockdown happened.

HOME also partnered with online film platforms including Mubi and BFI Player to distribute film to audiences digitally. This included the continued work of HOME Artist Film.

The Engagement Team were able to innovate and deliver work for the communities digitally. This included delivering the BFI Film Academy online, distributing equipment to the participants’ homes and hosting sessions via zoom.

The Talent Development Team continued to commission and support artists, and deliver a range of opportunities.

Black History Month

October 2020 saw a month-long celebration of Black art, film, theatre, music, and live performance. The programme of activity was curated to question representation and challenge narratives, and to champion Black artists and Black-led organisations in Manchester and the North West.

Black History Month was delivered digitally and at HOME, with audiences enjoying socially distanced performances from Manchester’s finest spoken word collective, Young Identity.

HOME Future 20: The Last Place on Earth

Initially due to open as a physical exhibition in August 2020, Last Place on Earth became a mesmerising virtual reality piece, created by HOME’s Future 20 Collective in collaboration with Studio Morison. The Future 20 Collective are a group of ten artists aged 18 to 25 who started to work with HOME in 2019, on a 12 month, cross-art-form training programme. Future 20 specialise in a range of disciplines including filmmaking, poetry, spoken word, photography, visual art, music, theatre and glassmaking.

Taking as its starting point a future eco-catastrophe, Last Place on Earth explores what the planet could look like when it is reborn.

When the world came to a standstill in spring 2020, the underlying themes of the work felt more relevant than ever. Working with Studio Morison, Future 20 responded to the coronavirus outbreak by splicing together film and virtual reality to create a new, digital experience where they were no longer constrained by the size and scale of a physical exhibition space.

Future 20 produced an alternative place for audiences to reconnect with nature, through the virtual reality lens. A space for people to think carefully about who they are, the impacts of their behaviours and attitudes towards our planet and what actions we must take to create real positive change.

Support for Freelancers

Throughout this unusual year, HOME’s commitment to supporting freelancers has remained a core part of our mission. Interventions in this year included:

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GREATER MANCHESTER ARTS CENTRE LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

FINANCIAL REVIEW

Overview

The results for the year are set out on pages 15 and 16 of the financial statements. This year the group is reporting a surplus, after tax credits but before transfers, of £675,271 (2019/20 £-14,507) on unrestricted funds, which represents a significant increase in the financial result given the circumstances. Regular funding continued through the year, together with the HMRC CJRS grant and an additional ACE emergency grant plus other emergency grants and donations.

The group is reporting net current assets of £1,723,184 (2019/20 £346,509). This increase in net current assets is attributable to the increase in cash in the bank from the grants received during the year and the reduction in creditors, due to reduced trading.

The directors consider that the overall financial position is significantly improved through the support received during the year, the cost reductions through closure of the building and restructuring the organisation. The ongoing uncertainty meant that HOME was unable to deliver on some of its activities for which funding was received. However, in early 2021/22 when there was more certainty about re-opening, the Board designated funds towards specific activities in 2021/22, some of which were delayed from 2020/21. The most significant activity for 2021/22 was the outdoor theatre, Homeground £141k, for which funding (grants and donation) are included in the 2020/21 accounts. Other activities for which funding was designated related to the visual arts exhibitions, £85k.

Subsidiaries

Greater Manchester Arts Services Ltd (GMAS) was severely impacted by the pandemic and subsequent lockdown. The shop remained closed for the whole of the year, despite the building opening for a few weeks. On reopening the building, the aim was to keep contact between staff and customers to a minimum and the shop was too high risk due to its size.

In addition, the staffing of the shop changed as a result of the restructure in the summer 2020, moving the management and staffing under Customer Services. This change would come into play once the shop reopened in May 2021.

Our Food and Beverage (F&B) provider, Wardley, was able to open the restaurant and bar, albeit with social distancing and reduced opening times, for the limited time the building was open. The cinema bar remained closed for the whole period.

To ensure that the F&B concession remained viable, the fixed service charge was ceased whilst the building was closed and only re-introduced for the short time that they could trade. The low sales also reduced the concession rent, which is calculated as a percentage of sales; for the period it was open in 2020/21 this was 4% of sales, rather than the usual 8%.

The limited turnover generated for GMAS by Wardley, £17,652 and a CJRS grant of £16,921 were not enough to cover the costs of sales or the administrative expenses leading to a loss of £74,796 in 2020/21 (2019/20 - profit £160,946). As GMAS is part of the GMAC group, so indirectly benefitted from the Cultural Relief Fund 1 and Emergency Relief Fund from ACE; the applications to these funds included the loss of income from this trading subsidiary.

Despite the difficult period continuing, the shop reopened in August 2021 and the F&B reopened in May 2021. Signs so far, show that the demand for F&B is growing quickly and the concession rent percentage is now back up to 8% and turnover around £200k per month. There is more work required to enable the shop to make a profit but as customers footfall increases in the building, sales are slowly increasing.

The trustees of GMAS are confident that trading will soon re-establish itself and the current loss will be recovered within 2021/22. Any profits will remain within the subsidiary until the deficit is eliminated.

HOME Manchester Productions Ltd (HMP) was established to exploit the opportunities presented by Theatre Tax Relief and agreements were entered into in respect of three HOME productions in 2020/21. In respect of Museum and Gallery Exhibition Tax Relief, it has entered into 3 agreements in respect of exhibitions in 2020/21.

However, due to the lockdown, all three theatre productions were cancelled but costs associated with them were partially recoverable; and of the exhibitions, one was cancelled, one delayed until 2022 and the other, Art Comes Home, opened for the brief period in Autumn 2021. At the year end the eligible losses meant that Creative Tax Credits of c£20k were claimable, but this amount is yet to be received.

Cornerhouse Publications Ltd (CP) provides a specialist sales and distribution service for many of the most innovative publishers, galleries and museums working in contemporary visual arts. While CP works with a number of larger publishers, the majority of clients are small, publicly funded arts organisations whose publications, judged purely on commercial terms, are often unattractive to the mainstream art book distributors. Cornerhouse Publications continues to sell through the book trade, mail order, and online via the CP website enabling customers worldwide the opportunity to acquire publications that might otherwise not be available to them.

During the lockdown, all the CP staff were furloughed as the demand from their customers had all but disappeared. However, there was a small and steady income from on-line sales, an increase on pre-pandemic, during this period. A review of the operations and financials last summer led to a reorganisation of the team reducing it from 2 FTE (4 Staff) down to 1 FTE (2 staff). The new structure was launched in September 2020 with the aim of bringing in efficiencies to reduce costs as well as a review of prices. There is still progress to be made but sales did increase in the last half of the year as shops, museums and art galleries reopened across Europe. The increase from on-line sales also remained.

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GREATER MANCHESTER ARTS CENTRE LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

In 2020/21, CP made a loss of £9,346 after management and space recharges from the Charity. However, as agreed by the Charity, following the previous year end, a grant of £106,987 was made to eliminate the cumulative deficit on reserve and this year’s loss. Although CP was not able to breakeven as anticipated due to the ongoing lockdown and restructure costs of redundancy, other costs were significantly reduced. Sales continue to improve and the forecast for 2021/22 shows that a breakeven position is possible.

Reserves Policy and Risk Management

As part of this process the Trustees have identified the responsibilities for reviewing risks throughout the organisation. The Trustees monitor progress against strategic objectives at each of their meetings. Risks are managed by a three–stage process:

In recent years the main focus of the Trustees risk management oversight has concerned financial risk management and in particular ensuring that GMAC maintains sufficient reserves to operate effectively and to be able to maintain the capacity to respond to change. Free reserves are calculated with reference to the unrestricted funds not already invested in fixed assets or associated with designated funds. Following the move to new premises in 2015 the Charity had an increased requirement for reserves reflecting the increased scale of operations and a changed business risk assessment. This was again reviewed in early 2021 as a result of the pandemic which showed the importance of having such reserves in such uncertain times

The process of building free reserves continue in 2020 through good management planning and efficiency gains boosted as well by grants from the ACE Cultural Relief Fund 1. The level required to sustain operations in future years is £765,000 which is calculated as the Group’s fixed pay and overheads for a 3 month period.

Free reserves at 31 March 2021 are £1,249,737 (2020 - £275,515). The pandemic has meant that many of the activities that were to take place during the year are postponed into 2021/22, most significantly the investment in artists and theatre productions. Much excess free reserves above the target level will be used to support the aims of the organisation that were not possible during this year, in particular an outdoor theatre with two HOME productions and support for many freelancers who were unable to work during the pandemic and a full visual arts programme in the 10 months that the building will be open in 2021/22.

Principal funding sources

For the 2020/21 year all our major funders maintained their funding at the expected levels. The fundraising environment was difficult but GMAC has had some significant success raising over £700,000 from trusts, foundation, and commercial sponsorship. The membership scheme continues to grow with over 2,200 members and 217 Friends.

The charity receives grant in aid support from three primary public stakeholders.

Arts Council England invested £1,321,387 as an unrestricted grant to enable the charity to meet its charitable aims. GMAC is a National Portfolio Organisation, and is required to submit its Business Plan and Audience Development plans to ACE annually. The charity also submits annual monitoring information to ACE.

The British Film Institute invested £185,000 to enable the charity to present a diverse film programme and increase access to independent film for the public. Quarterly monitoring is required.

Greater Manchester Combined Authority granted £136,900 to the charity to support delivery of projects across the Greater Manchester area. The grant is conditional on an approved plan of delivery and bi-annual return of monitoring information across a range of agreed key performance indicators.

Manchester City Council operate a service level agreement with GMAC wherein the charity was paid £1,268,394 to operate the facility, present a programme of artistic works for the public and deliver an associated education, community, youth and outreach programme. Delivery of the SLA is monitored through a suite of KPI’s against which the charity reports quarterly. MCC have the right to levy financial penalties where specific KPI’s are not met. In such cases a remedial plan will be required before any penalty is applied.

Investment policy and review

Under the memorandum and articles of association the Charity has the power to make any investment which the Trustees see fit. Currently any surplus funds are placed on deposit with a UK clearing bank.

Funding

HOME has good relationships with all its core funders but the national and international economic situation continues to be challenging especially with the ongoing uncertainty of the pandemic and increasing costs. Government policy in the medium and long terms towards funding the arts remains unclear as a result, although there were two further Cultural Relief fund (2 and 3) opportunities which HOME applied for; successful in one and waiting for the outcome of the other. The impact of Brexit remains challenging, with increased workloads around processing imports and exports, delays in deliveries and complex rules.

It is clear that local authorities will continue to be under huge pressure and face further significant cuts. Despite this, MCC and GMCA continue to place a high value on arts and culture as tools of economic and social recovery post-pandemic but their continued support will not be taken for granted as their budgets continue to come under pressure from central government. Although funding for 2020/21 from MCC is confirmed to be £23k higher.

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GREATER MANCHESTER ARTS CENTRE LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

Funding from ACE was secured with HOME being confirmed as an NPO for 2018-22 and is currently awaiting the outcome of the one year extension for 2022/23. Similarly, the BFI are showing strong support for the work of HOME.

Given the uncertainty in the funding environment and inflation increases, growth of trading, private and trusts and foundation income will continue be a priority for HOME. Alongside this, the group restructured the business to bring in cost savings from 2020 onwards; this will be kept under review and more changes will be made if necessary.

HOME has a proven track record of an entrepreneurial and business-like approach to running an arts organisation, which will be key to ensuring the resilience and continuation in the future.

Going concern

The Trustees have adopted the going concern basis for preparing these group accounts. They have considered the impact of COVID 19, Brexit and other current risks:

The trustees have concluded that there are no material uncertainties about the Group or Charity’s ability to continue as a going concern.

FUNDRAISING

GMAC is a registered charity and raises funds through a number of different methods:

GMAC’s Development team comprises of four, dedicated fundraisers who are all FTE members of staff. They work closely with senior leadership and trustees to make new contacts and cultivate gifts. GMAC does not currently work with freelance or commercial fundraisers to act on our behalf.

GMAC is registered with the Fundraising Regulator and subscribes to the Fundraising Code of Practice. GMAC has an organisational Ethical Fundraising Policy and Whistleblowing Procedure. We are not aware of any instance of any GMAC member of staff failing to comply with the agreed fundraising standards in the year 19/20.

GMAC’s fundraising strategies and agreed approach do not allow for behaviour which is unreasonably persistent, places undue pressure on a person to donate or is an unreasonable intrusion on a person’s privacy. GMAC does not engage in Direct Mail fundraising or telephone fundraising campaigns. We adhere to strict GDPR guidelines and all emails have an easy ‘unsubscribe’ function, should any person no longer wish to receive communication from us.

GMAC did not receive any complaints with regards to their fundraising practice during the financial year 2019/20. We have a formal Fundraising Complaints Procedure, and our contact details are clearly listed on our website should any person wish to raise complaints or concerns about our fundraising activity.

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GREATER MANCHESTER ARTS CENTRE LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

FUTURE PLANS

HOME has developed a new 2 year Business Plan 2021-23 in conjunction with stakeholders and partners. This process included work with the HOME Futures Panel, a group of 30 users of HOME including audiences, artists, volunteers and staff.

The mission and vision for the organisation remain consistent as above, but the reasons for delivering it over the period require HOME to:

Climate change remains the biggest threat to our planet, and HOME has a responsibility to play a significant role in the “Green Recovery” post-pandemic.

These aims will be fulfilled through:

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GREATER MANCHESTER ARTS CENTRE LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

STRUCTURE GOVERNANCE AND MANAGEMENT

Governing document

The charity is a company limited by guarantee governed by its memorandum and articles of association dated November 25 1982, as amended by special resolutions dated 08/12/83 and 20/05/13. It is a registered charity with the Charity Commission.

Members of the company

The members of the company include those admitted to membership by the Directors and those Local Authorities who have contributed funds to the charity.

Appointment of trustees

The Directors who served during the year together with any changes are listed on page one of the annual report. The Directors are appointed by the members in general meeting or appointed having been nominated by a Local Authority that is a member of the company. Currently Manchester City Council and the Greater Manchester Combined Authority are entitled to nominated directors. The Board may appoint directors to fill casual vacancies, but those so appointed only hold office until the next Annual General Meeting. Maximum length of service is stipulated in the memorandum and articles of association.

Trustee induction and training

New Trustees receive and induction pack, including a Governance handbook and attend an induction session with the Chairman and Company Secretary. Periodic board training days are also held.

Organisation

The Board of Directors meets as necessary (usually at least four times a year) and has a Finance Sub-Committee which reports to the full Board and may be given delegated authority for particular pieces of work. Working Groups are used to focus on time limited projects or review.

The day to day operation of the charity is the responsibility of the Chief Executive and the other members of the senior management who together with the Trustees constitute the key management personnel of the charity. The members of senior management are listed on page 1.

The Group employs an average of 187 staff representing 92.5 full time equivalent staff. The bar and catering activities are provided by an external catering contractor.

The non-charitable trading activities are carried out by the wholly-owned trading subsidiary, Greater Manchester Arts Services Ltd, which is managed by its own Board of Directors. Profits from the trading subsidiary, which comprises the profits from the bar and catering operation and HOME shop, are gifted to the Charity.

Theatre production activities are carried out through HOME Manchester Productions Ltd, which enables Theatre Tax Relief to be claimed on qualifying productions.

From April 1 2015, the publications operations have been carried out by another trading subsidiary Cornerhouse Publications Ltd.

Pay and remuneration for senior staff

The directors consider the board of directors, who are the Charity’s trustees, and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Charity on a day to day basis. All directors give of their time freely and no director received remuneration in the year. Details of directors’ expenses are given in note 11 and related party transactions are disclosed in note 25 to the accounts. Under the charity’s Board expenses policy, only Directors resident outside Greater Manchester are eligible to claim travel expenses.

The pay of the senior staff is reviewed annually and normally increased by an amount deemed affordable and in line with prevailing inflation. In view of the nature of the charity, the directors benchmark against pay levels in other arts organisations of a similar size run on a voluntary basis.

Related parties

Details of related party transactions are given in the notes to the financial statements.

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GREATER MANCHESTER ARTS CENTRE LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The trustees (who are also directors of Greater Manchester Arts Centre Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual 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, 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 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.

STATEMENT OF DISCLOSURE TO AUDITORS

We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

SMALL COMPANY PROVISIONS AND APPROVAL

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Approved by the Board of Trustees and signed on its behalf by:

C Jeffries

C Jeffries - Director

Date: 21/10/21

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AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE GREATER MANCHESTER ARTS CENTRE LIMITED FOR THE YEAR ENDED MARCH 31 2021

Opinion

We have audited the financial statements of Greater Manchester Arts Centre Limited (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended March 31 2021, which comprise The Group and Company Statements of Financial Activities, the Group and Company Balance Sheets the Statement of Cash Flows and notes to the financial statements, including 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 group and parent 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 group’s or parent 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 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. 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 course of 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.

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 the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the [strategic report and the][7] directors’ 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:

12

AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE GREATER MANCHESTER ARTS CENTRE LIMITED FOR THE YEAR ENDED MARCH 31 2021

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, set out in the Directors’ and Trustees’ Annual Report, the trustees (who are also the directors of the parent 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 groups and parent 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 group or parent 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

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks in respect of irregularities and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statement to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

No instances of material non-compliance were identified.

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.

13

AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE GREATER MANCHESTER ARTS CENTRE LIMITED FOR THE YEAR ENDED MARCH 31 2021

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. 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 of Part 16 of the Companies Act 2006 and 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 members and its 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 as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Smith

Peter Smith BA FCA DChA– Senior Statutory Auditor

For and on behalf of: HGA Accountants & Financial Consultants t/a Chittenden Horley Chartered Accountants and Statutory Auditors

456 Chester Road Old Trafford Manchester M16 9HD Date: 15/11/21

HGA Accountants & Financial Consultants t/a Chittenden Horley is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

14

GREATER MANCHESTER ARTS CENTRE LIMITED GROUP STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED MARCH 31 2021

Notes
INCOME
Incoming resources from generated funds:
Donations
2
Charitable activities
3
Other trading activities
4
Investment income - bank interest
Other income
5
TOTAL INCOMING RESOURCES
EXPENDITURE
Costs of raising funds
7
Expenditure on charitable activities
8
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
11
Transfers between funds
18
NET INCOME/(EXPENDITURE)
BEFORE TAXATION
TAXATION- Creative Tax Credits
NET MOVEMENT IN FUNDS
(Net income/(expenditure) after taxation)
TOTAL FUNDS
Brought forward
18
Carried forward
18		 General
Designated
Funds
Funds
£
£
2,977,347
-
1,744,525
-
99,580
-
262
-
66
-
Unrestricted		 General
Designated
Funds
Funds
£
£
2,977,347
-
1,744,525
-
99,580
-
262
-
66
-
Unrestricted		 Restricted
Funds
£
405,606
823,045
-
-
-		 Total
Total
2021
2020
£
£
3,382,953
1,761,884
2,567,570
3,799,899
99,580
731,434
262
769
66
5,266
4,821,780 - 1,228,651 6,050,431
6,299,252
300,037
3,866,787		 -
72,556		 -
441,924		 300,037
452,024
4,381,267
6,163,829
4,166,824 72,556 441,924 4,681,304
6,615,853
654,956
237,321		 (72,556)
100,323		 786,727
(337,644)		 1,369,127
(316,601)
-
-
892,277
20,315		 27,767
-		 449,083
-		 1,369,127
(316,601)
20,315
98,480
912,592
271,827		 27,767
182,246		 449,083
74,904		 1,389,442
(218,121)
528,977
747,098
1,184,419 210,013 523,987 1,918,419
528,977

The notes on pages 20 to 39 form part of these financial statements.

15

GREATER MANCHESTER ARTS CENTRE LIMITED COMPANY STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED MARCH 31 2021

Notes
Incoming resources from generated funds:
Donations
2
Charitable activities
3
Other trading activities
4
Investment income - bank interest
Other income
5
TOTAL INCOME
EXPENDITURE
Costs of raising funds
7
Charitable activities
8
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
11
Transfers between funds
18
NET MOVEMENT IN FUNDS
TOTAL FUNDS
Brought forward
18
Carried forward
18		 General
Designated
Funds
Funds
£
£
2,977,347
-
1,748,116
-
77,470
-
262
-
66
-
Unrestricted		 General
Designated
Funds
Funds
£
£
2,977,347
-
1,748,116
-
77,470
-
262
-
66
-
Unrestricted		 Restricted
Funds
£
405,606
823,045
-
-
-		 Total
Total
2021
2020
£
£
3,382,953
1,923,050
2,571,161
4,542,944
77,470
359,404
262
769
66
5,266
4,803,261 - 1,228,651 6,031,912
6,831,433
199,372
3,866,988		 -
72,556		 -
441,924		 199,372
229,554
4,381,468
6,796,042
4,066,360 72,556 441,924 4,580,840
7,025,596
736,901
237,321		 (72,556)
100,323		 786,727
(337,644)		 1,451,072
(194,163)
-
-
974,222
275,617		 27,767
182,246		 449,083
74,904		 1,451,072
(194,163)
532,767
726,930
1,249,839 210,013 523,987 1,983,839
532,767

The notes on pages 20 to 39 form part of these financial statements.

16

GREATER MANCHESTER ARTS CENTRE LIMITED GROUP BALANCE SHEET AS AT MARCH 31 2021

Notes
FIXED ASSETS
Tangible Assets
12
Intangible Assets
13
CURRENT ASSETS
Stock
15
Debtors
16
Cash at Bank and in Hand
CREDITORS
Amounts falling due in one year
17
NET CURRENT ASSETS
NET ASSETS		 2021
£
14,297
733,706
1,562,435		 2021
2020
2020
£
£
£
179,235
182,468
16,000
-
195,235
182,468
14,842
829,437
342,016
1,186,295
839,786
1,723,184
346,509
1,918,419
528,977
1,918,419
528,977
2,310,438
587,254
FUNDS
Unrestricted
General fund
18
Designated fund
18
Restricted
18
TOTAL FUNDS		 1,184,419
210,013		 271,827
182,246
1,394,432
454,073
523,987
74,904
1,918,419
528,977

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

The notes on pages 20 to 39 form part of these financial statements.

Approved by the Board of Directors and authorised for issue on 21/10/21

C Jeffries

C JEFFRIES

DIRECTOR

Company registration number: 1681278

17

GREATER MANCHESTER ARTS CENTRE LIMITED COMPANY BALANCE SHEET AS AT MARCH 31 2021

Notes
FIXED ASSETS
Tangible Assets
12
Intangible Assets
13
Investments
14
CURRENT ASSETS
Debtors
16
Cash at Bank and in Hand
CREDITORS
Amounts falling due in one year
17
NET CURRENT ASSETS
NET ASSETS		 2021
£
737,321
1,552,905		 2021
2020
2020
£
£
£
179,013
182,246
16,000
-
102
102
195,115
182,348
762,523
328,455
1,090,978
740,559
1,788,724
350,419
1,983,839
532,767
1,983,839
532,767
2,290,226
501,502
FUNDS
Unrestricted
General fund
18
Designated funds
18
Restricted
18
TOTAL FUNDS		 1,249,839
210,013		 275,617
182,246
1,459,852
457,863
523,987
74,904
1,983,839
532,767

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

The notes on pages 20 to 39 form part of these financial statements.

Approved by the Board of Directors and authorised for issue on 21/10/21

C Jeffries

C JEFFRIES

DIRECTOR

Company registration number: 1681278

18

GREATER MANCHESTER ARTS CENTRE LIMITED STATEMENT OF CASH FLOWS AS AT MARCH 31 2021

notes
Cash generated from/(used in)
operating activities
20
Cashflows from investing activities
Interest and dividends
Purchase of tangible fixed assets
Purchase of intangible fixed assets
Cash provided by/(used in) investing activities
Cashflows from financing activities
Repayment of borrowing
Cash used in financing activities
Increase/(decrease) in cash & cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalents consist of:
Cash at bank and in hand
Current asset investments		 Group
2021
£
1,306,195		 Group
2020
£
47,631		 Charity
Charity
2021
2020
£
£
1,310,226
47,122
262
(65,323)
(20,000)
(85,061)		 769
(101,935)
-
(101,166)		 262
769
(65,323)
(101,935)
(20,000)
-
(85,061)
(101,166)
(715) (84,761) (715)
(84,761)
(715) (84,761) (715)
(84,761)
1,220,419
342,016		 (138,296)
480,312		 1,224,450
(138,805)
328,455
467,260
1,562,435 342,016 1,552,905
328,455
1,562,435 342,016 1,552,905
328,455
1,562,435 342,016 1,552,905
328,455

The notes on pages 20 to 39 form part of these financial statements.

19

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

1 ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared: under the historic cost convention; in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective January 1 2019 (second edition – October 2019); FRS102; and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS102.

The accounts are prepared in £ sterling, which is the functional currency of the Group.

Going concern

There are no material uncertainties about the Group or Charity’s ability to continue as a going concern.

Estimates and judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Income recognition

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following applies to particular types of income:

Grants , whether of a capital or revenue nature, are recognised when the charity has entitlement to the funds, any performance conditions have been met and it is probable that the income will be received.

Donations from individuals and other bodies (not being of the nature of a grant) are recognised when receivable.

Earned income is measured at the fair value of the consideration received or receivable for services and goods supplied, net of discounts and VAT.

Deferred income

Income is only deferred and included in creditors when:

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds

including those associated with fundraising activities, managing investments and commercial trading by the subsidiary company.

Charitable activities costs of undertaking the work of the charity.

The charity is registered for VAT and is able to recover some of the input tax charged as it relates to vatable supplies. Costs are stated net of VAT were charged and irrecoverable VAT is included as a separate charge either within direct costs or support costs as appropriate.

Production costs

Where performances of a production straddle the year-end, payroll, rehearsal and audition costs are recognised in the year in which they arise. Other, production costs (e.g. scenery / costumes) and creative team fees are apportioned between the periods on the basis of the number of performances and included in either accruals or prepayments. The costs associated with the theatre productions for HOME incurred pre year end relating to shows taking place entirely post year end have been carried forward this year in line with this policy. Provision is made in the accounts for any production losses or additional costs outside of the approved production budget, irrespective of the timing of the performances. Costs in respect of research and development are written off in the year they are incurred.

Allocation of support costs

Support costs are those functions which assist the work of the charity either by supporting the delivery of charitable activities or by supporting the generation of funds. They include property costs, back office functions, staff costs and professional fees. The basis of allocations is set out in note 9.

20

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

1 ACCOUNTING POLICIES (continued)

Pension contributions

The company is an admitted body to the Greater Manchester Pension Fund, a defined benefit scheme, in respect of certain employees who were previously employed by Manchester City Council as part of the Library Theatre Company. Employer contributions of 17.6% were made during the year. This is a multi-employer scheme and the information required to separately identify the fund assets and liabilities is not available, and therefore contributions are accounted for as though the scheme was a defined contribution scheme. In any event, there is an agreement with Manchester City Council that the will fund any deficit attributable to these employees. The number of employees in the scheme at the year end was 3 (2020: 5).

For other employees, the company operates a defined contribution pension scheme and makes employers’ contributions of 3% of annual salary. Under auto-enrolment legislation from 1[st] May 2014 all members of staff are assessed in respect of their eligibility under this legislation. Members of staff earning over £10,000 per annum are offered the opportunity to join the defined contribution scheme. If they decline they are automatically enrolled in accordance with current legislation in The Peoples Pension – an automatic enrolment scheme. All other staff are assessed in accordance with the legislation. Contributions are charged to the SoFA in the year they are payable.

In accordance with the collective agreement between Equity and UK Theatre (formerly the Theatre Managers Association), the company makes employer's pension contributions of 3% of fees paid to actors or stage managers enrolled in the Equity Pension Scheme, provided that the members make an employees' contribution of 2%.

Tangible fixed assets, Intangible assets and depreciation

Individual tangible and intangible assets costing more than £1,000 are capitalised at cost and are depreciated over their estimated useful lives on a straight line basis as set out below. Assets reaching the end of their useful life as per the policy will be reassessed where the assets are still in good working order.

Depreciation rates, all straight line, are as follows:

Assets held on finance leases over life of lease (currently 5 years for all) Catering equipment, fixtures & fittings 12.5% pa Other equipment 12.5% - 25% pa (previously 25% pa) Intangible assets 20% (5 years)

The Charity reviewed the useful economic life and residual values of assets included within other equipment and has revised the rate of depreciation.

Debtors

Trade and other debtors are recognised at the settlement amount due and prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

Financial instruments

The charity has only basic financial instruments which are initially recorded at cost, and subsequently measured at their settlement value.

Group financial statements

The financial statements consolidate the results of the charity and its wholly owned subsidiaries on a line by line basis.

Theatre tax credits

Where the trading subsidiary, HOME Manchester Productions Ltd, incurs qualifying losses in respect of theatre productions, the company has decided that these will be surrendered for a cash payment from HMRC under the Theatre Tax Credit regime. Where receipt of these tax credits is virtually certain they are included in the accounts in the year in which the qualifying losses were incurred.

21

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

2 DONATIONS
Revenue grants:
ACE NW
British Film Institute (BFI)
GMCA
Environmental training grant
WO Trust
Leri Charitable Trust
COVID Support
ACE emergency funding
ACE CRF1
Garfield Weston Foundation
Ogelsby Charitable Trust
Esmee Fairbairn
Granada Foundation
Other
HMRC - CJRS
Donations
General donations
Donations re Engagement
Donations re Theatre
Donations re Visual Arts
In kind support:
Film curation
Accommodation & travel
Marketing/fundraising
Legal and professional costs
Total for group
Donation from GMAS
Total for company		 Unrestricted 2021
Restricted		 Total Unrestricted 2020
Restricted
Total
£
1,321,387
185,000
136,900
-
-
-		 £
-
-
-
7,106
-
-		 £
1,321,387
185,000
136,900
7,106
-
-		 £
1,297,513
185,000
-
-
5,408
29,000		 £
£
-
1,297,513
-
185,000
-
-
-
-
-
5,408
-
29,000
1,643,287 7,106 1,650,393 1,516,921 -
1,516,921
156,000
-
-
17,000
18,600
4,000
700
965,361		 -
351,000
47,500
-
-
-
-		 156,000
351,000
47,500
17,000
18,600
4,000
700
965,361		 -
-
-
-
-
-
-
12,000		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12,000
1,161,661 398,500 1,560,161 12,000 -
12,000
119,221
-
-
-
22,178
6,000
-
25,000		 -
-
-
-
-
-
-		 119,221
-
-
-
22,178
6,000
-
25,000		 158,764
-
-
-
33,267
1,560
11,372
25,000		 -
158,764
-
-
-
-
3,000
3,000
-
33,267
-
1,560
-
11,372
-
25,000
172,399 - 172,399 229,963 3,000
232,963
2,977,347
-		 405,606
-		 3,382,953
-		 1,758,884
161,166		 3,000
1,761,884
-
161,166
2,977,347 405,606 3,382,953 1,920,050 3,000
1,923,050

There is no income attributable to designated funds in either year.

22

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

Unrestricted
£
3 INCOME FROM CHARITABLE ACTIVITIES
Project grants, box office and other project income
Film
193,032
Theatre
127,632
Visual Arts
133,868
Engagement
3,518
Talent Development
1,672
Sector Leadership and development
20,000
Garfield Weston Foundation
-
MCC contract funding
1,268,394
Per charity
1,748,116
Consolidation adjustments:
Add: Cornerhouse Publications
136,928
Less Home Productions Manchester
(140,519)
Per group
1,744,525
4 INCOME FROM OTHER TRADING ACTIVITIES
Sponsorship
54,167
Venue, room hire, and rent
5,381
Corporate & individual membership
5,800
Management charges
5,046
Hire of equipment
7,076
Per charity
77,470
Less eliminated on consolidation:
Charges to subsidiaries
(12,463)
Add Subsidiary income:
GMAS
34,573
Per group
99,580
5 OTHER INCOME
Disposal of fixed assets
-
Sundry income
66
Per charity and group
66		 Unrestricted 2021
Restricted		 Total Unrestricted 2020
Restricted
Total
£
-
238,210
-
199,962
114,473
165,000
105,400
-		 £
193,032
365,842
133,868
203,480
116,145
185,000
105,400
1,268,394		 £
1,268,625
1,096,923
604,891
24,080
10,548
20,498
1,268,788		 £
£
13,979
1,282,604
39,500
1,136,423
3,000
607,891
154,506
178,586
27,606
38,154
10,000
30,498
-
1,268,788
1,748,116
136,928
(140,519)		 823,045
-
-		 2,571,161
136,928
(140,519)		 4,294,353
174,292
(917,337)		 248,591
4,542,944
-
174,292
-
(917,337)
1,744,525 823,045 2,567,570 3,551,308 248,591
3,799,899
-
-
-
-
-		 54,167
5,381
5,800
5,046
7,076		 143,616
159,361
20,875
19,750
15,802		 -
143,616
-
159,361
-
20,875
-
19,750
-
15,802
77,470
(12,463)
34,573		 -
-
-		 77,470
(12,463)
34,573		 359,404
(68,162)
440,192		 -
359,404
-
(68,162)
-
440,192
99,580 - 99,580 731,434 -
731,434
-
66		 -
-		 -
66		 -
5,266		 -
-
-
5,266
66 - 66 5,266 -
5,266

There is no income attributable to designated funds in either year, for any of the categories of income above.

23

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

TRADING SUBSIDIARIES
Turnover
Cost of sales
Gross profit
Administration Expenses
Operating profit/loss
Other income
Net profit/loss before taxation
Taxation
Net profit after taxation
Total assets
Total liabilities
Net funds
Total income as above
less eliminated on consolidation
To Group income
Total costs as above
Less eliminated on consolidation:
Management charges, rent &
hire of equipment
Donations
Inter company trading
To group costs		 Cornerhouse Publications
2021
2020
£
£
121,878
174,292
138,630
179,277		 Cornerhouse Publications
2021
2020
£
£
121,878
174,292
138,630
179,277		 HOME Manchester
Productions Ltd
2021
2020
£
£
121,648
819,682
140,519
917,337		 HOME Manchester
Productions Ltd
2021
2020
£
£
121,648
819,682
140,519
917,337		 GMAS LTD
2021
2020
£
£
17,652
440,192
10,512
119,779
(16,752)
7,644		 (4,985)
20,323		 (18,871)
1,444		 (97,655)
825		 7,140
320,413
98,857
159,467
(24,396)
122,037		 (25,308)
-		 (20,315)
-		 (98,480)
-		 (91,717)
160,946
16,921
-
97,641
-		 (25,308) (20,315)
20,315		 (98,480)
98,480		 (74,796)
160,946
-
-
97,641 (25,308) - - (74,796)
160,946
102,505
(102,504)		 113,142
(210,782)		 63,525
(63,524)		 98,480
(98,479)		 46,332
106,619
(111,651)
(97,142)
1 (97,640) 1 1 (65,319)
9,477
243,915
(106,987)		 174,292
-		 121,648
(121,648)		 819,682
(819,682)		 34,573
440,192
-
136,928 174,292 - - 34,573
440,192
146,274
(3,759)
-
-		 199,600
(11,386)
-
-		 141,963
-
-
(140,519)		 918,162
-
-
(917,337)		 109,369
279,246
(8,704)
(56,776)
-
-
-
-
142,515 188,214 1,444 825 100,665
222,470

6 TRADING SUBSIDIARIES

Cornerhouse Publications Ltd

The charity transferred its book distribution activities to this subsidiary with effect from April 1 2015. This company distributes art books on behalf of a number of publishers and receives commission and warehousing income.

HOME Manchester Productions Ltd (HMP)

HMP has been formed to undertake the production, running and closure of in house theatrical productions and qualifying exhibitions on behalf of the charity. It subcontracts the production work back to the charity, and is eligible to claim Theatre Tax Relief and Museums and Galleries Exhibitions Relief.

Greater Manchester Arts Services Ltd (GMAS)

The subsidiary company operates a bookshop selling publications connected to the arts and other merchandise to raise revenue, and it operates the café and bar through a commercial franchise arrangement with a third party.

The café and bar provide spaces for people visiting the HOME to meet and socialise.

24

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

7 COSTS OF RAISING FUNDS
Fundraising
Direct costs
Direct salaries
Support costs
Per Charity
GMAS (note 6)
Per Group		 Unrestricted 2021
Restricted		 Total Unrestricted 2020
Restricted
Total
£
-
136,492
62,880		 £
-
-
-		 £
-
136,492
62,880		 £
18,476
140,304
70,774		 £
£
-
18,476
-
140,304
-
70,774
199,372
100,665		 -
-		 199,372
100,665		 229,554
222,470		 -
229,554
-
222,470
300,037 - 300,037 452,024 -
452,024

8 CHARITABLE EXPENDITURE

Per charity
3,939,544
Consolidation adjustments:
Charitable costs in subsidiary companies
HOME Manchester Productions Ltd
1,444
Cornerhouse Publications Ltd
142,515
Less eliminated on consolidation:
Charges from HMP
(121,648)
Grant to CPL
(106,987)
Release bad debt provision CPL
84,475
Per group
3,939,343
Costs charged in charity:
Film
1,165,280
Theatre
1,626,575
Visual Arts
673,968
Engagement
340,288
Talent Development
219,268
Sector leadership & development
20,000
Publications
22,512
Charged to restricted funds:
Garfield Weston
(30,896)
Environmental training grant
(7,106)
ACE CRF1
(90,345)
Depreciation to restricted funds
-
Per charity
3,939,544		 Per charity
3,939,544
Consolidation adjustments:
Charitable costs in subsidiary companies
HOME Manchester Productions Ltd
1,444
Cornerhouse Publications Ltd
142,515
Less eliminated on consolidation:
Charges from HMP
(121,648)
Grant to CPL
(106,987)
Release bad debt provision CPL
84,475
Per group
3,939,343
Costs charged in charity:
Film
1,165,280
Theatre
1,626,575
Visual Arts
673,968
Engagement
340,288
Talent Development
219,268
Sector leadership & development
20,000
Publications
22,512
Charged to restricted funds:
Garfield Weston
(30,896)
Environmental training grant
(7,106)
ACE CRF1
(90,345)
Depreciation to restricted funds
-
Per charity
3,939,544		 441,924
-
-
-
-
-		 4,381,468
1,444
142,515
(121,648)
(106,987)
84,475		 6,447,723
825
188,214
(819,682)
-
(1,570)		 348,319
6,796,042
-
825
-
188,214
-
(819,682)
-
-
-
(1,570)
3,939,343 441,924 4,381,267 5,815,510 348,319
6,163,829
1,165,280
1,626,575
673,968
340,288
219,268
20,000
22,512
(30,896)
(7,106)
(90,345)
-		 618
25,623
-
75,678
45,678
165,980
-
30,896
7,106
90,345
-		 1,165,898
1,652,198
673,968
415,966
264,946
185,980
22,512

-
-
-
-		 1,788,090
2,829,062
1,328,215
354,583
178,578
(11,056)
-
-
-
-
(19,749)		 32,516
1,820,606
50,134
2,879,196
26,185
1,354,400
156,251
510,834
46,106
224,684
17,378
6,322
-
-
-
-
-
-
-
-
19,749
-
3,939,544 441,924 4,381,468 6,447,723 348,319
6,796,042

25

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

8 CHARITABLE EXPENDITURE (continued)

Expenditure in the charity is analysed as follows:
2020/21
Film
Theatre
Visual Arts
Engagement
Talent development
Sector leadership & development
Publications
2019/20
Film
Theatre
Visual Arts
Engagement
Talent development
Sector leadership & development		 Direct
Costs
£
71,975
214,064
157,623
106,137
28,725
185,980
22,512		 Direct
Salaries
£
341,659
592,259
80,433
154,102
141,560
-
-		 Support
Costs
Total
£
£
752,264
1,165,898
845,875
1,652,198
435,912
673,968
155,727
415,966
94,661
264,946
-
185,980
-
22,512
787,016 1,310,013 2,284,439
4,381,468
631,445
1,422,304
826,439
159,114
27,216
6,322		 402,561
591,052
110,551
197,298
107,356
-		 786,600
1,820,606
865,840
2,879,196
417,410
1,354,400
154,422
510,834
90,112
224,684
-
6,322
3,072,840 1,408,818 2,314,384
6,796,042

26

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

9 SUPPORT COSTS

SUPPORT COSTS
2020/21
Film
Theatre
Visual Arts
Engagement
Talent development
Fundraising		 Marketing
Costs
£
32,195
27,241
24,765
7,429
7,429
7,429		 Support
salaries
£
498,226
524,136
280,233
99,820
53,004
46,070		 Other
Costs
£
135,548
239,276
105,232
24,125
18,248
8,275		 Governance
costs
£
55,210
27,605
20,704
20,704
13,803
-		 Depreciation
Total
Costs
2021
£
£
31,085
752,264
27,617
845,875
4,978
435,912
3,649
155,727
2,177
94,661
1,106
62,880
106,488 1,501,489 530,704 138,026 70,612
2,347,319
2019/20
Film
Theatre
Visual Arts
Engagement
Talent development
Fundraising		 41,765
35,340
32,127
9,638
9,638
9,638		 433,146
450,412
224,951
102,394
53,453
45,635		 208,510
297,826
138,605
24,039
15,438
12,693		 24,217
12,109
9,082
9,082
6,054
-		 Total
2020
78,962
786,600
70,153
865,840
12,645
417,410
9,269
154,422
5,529
90,112
2,808
70,774
138,146 1,309,991 697,111 60,544 179,366
2,385,158

Governance costs

Salaries Professional and legal fees Overheads

2021 2020
£ £
22,285 20,016
96,546 12,856
19,195 27,672
138,026 60,544

Support costs are allocated on the following basis:

Area

Marketing costs Support salaries

basis

estimate of usage estimate of time spent

comment

net of any direct attribution Fundraising charged as a direct cost

Other costs:

Property Irrecoverable VAT (after any direct attribution) Support freelance staff All other costs Depreciation

Space

Head count estimate of time spent estimate of usage Space

net of any direct attribution

27

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

10 STAFF INFORMATION
a Employees
Salaries and wages
Pension costs (GMAC) - money purchase
Pension costs (GMPF) - multi-employer scheme
Employer's NI contributions
Staff costs for the Trading subsidiary included above
Employees earning more than £60,000 p.a. (gross pay and taxable benefits only)
Between £60,000 and £69,999
Between £70,000 and £79,999
Between £80,000 and £89,999		 2021
2020
£
£
2,761,881
2,715,622
58,334
60,685
50,757
20,496
195,615
200,277
3,066,588
2,997,080
96,309
117,951
Number
Number
2
1
1
1
-
1

The key management of the charity comprise the trustees and senior staff (as set out on page1) and the key management of within the group are the same people plus Cornerhouse Publications Ltd manager and GMAS bookshop manager. From November Cornerhouse Publications and the Bookshop have been managed by the charity and costs recharged.

The trustees do not receive any remuneration for their services.

The total employee benefits of other key management were as follows:
Charity
Group
b Actors and stage managers
Fees
Pension contributions (Equity)		 £
£
432,861
508,455
460,004
560,965
£
£
29,424
57,741
-
240
29,424
57,981

Actors and stage managers are engaged on a self employed basis subject to Equity approved contracts.

c Average staff numbers

The average number of employees referred to above, was as follows:-

Direct charitable - employees
Support /Management and administration
Trading subsidiary		 2021
Average
number
127
56
4		 2021
Average FTE
number
47
42
3		 2020
2020
Average
average FTE
number
number
143
52
62
45
5
4
187 92 210
101
The average number of freelance actors and stage manager referred to above, was
Direct charitable - actors and stage managers
1		 as follows:-
1		 1
1

28

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

11 NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)

This is stated after charging/(crediting):
£
£
Auditors remuneration:-
Audit fees - annual accounts
8,500
8,300
Accountancy fees
6,479
2,356
Finance lease charges
3
2,446
Depreciation of fixed assets held on finance leases
3,990
65,037
Depreciation of other fixed assets
64,566
119,265
Amortisation of intangible assets
4,000
-
Trustees remuneration
-
-
Trustees expenses re travel and accommodation
-
720
Number
Number
Trustees having expenses reimbursed or paid on their behalf
-
1
12 TANGIBLE FIXED ASSETS
Short leasehold
Fixtures
Land and
Fittings and
GROUP
Buildings
Equipment
Total
Cost
£
£
£
As at April 1 2020
14,004
1,521,917
1,535,921
Additions
5,083
60,240
65,323
Disposals
-
-
-
As at 31 March 2021
19,087
1,582,157
1,601,244
Depreciation
As at April 1 2020
10,412
1,343,041
1,353,453
Charge for the year
2,468
66,088
68,556
Disposals
-
-
-
As at 31 March 2021
12,880
1,409,129
1,422,009
Net Book Value
As at 31 March 2021
6,207
173,028
179,235
As at 31 March 2020
3,592
178,876
182,468
COMPANY
Cost
As at April 1 2020
14,004
1,509,294
1,523,298
Additions
5,083
60,240
65,323
Disposals
-
As at 31 March 2021
19,087
1,569,534
1,588,621
Depreciation
As at April 1 2020
10,412
1,330,640
1,341,052
Charge for the year
2,468
66,088
68,556
Disposals
-
As at 31 March 2021
12,880
1,396,728
1,409,608
Net Book Value
As at 31 March 2021
6,207
172,806
179,013
As at 31 March 2020
3,592
178,654
182,246		 This is stated after charging/(crediting):
£
£
Auditors remuneration:-
Audit fees - annual accounts
8,500
8,300
Accountancy fees
6,479
2,356
Finance lease charges
3
2,446
Depreciation of fixed assets held on finance leases
3,990
65,037
Depreciation of other fixed assets
64,566
119,265
Amortisation of intangible assets
4,000
-
Trustees remuneration
-
-
Trustees expenses re travel and accommodation
-
720
Number
Number
Trustees having expenses reimbursed or paid on their behalf
-
1
12 TANGIBLE FIXED ASSETS
Short leasehold
Fixtures
Land and
Fittings and
GROUP
Buildings
Equipment
Total
Cost
£
£
£
As at April 1 2020
14,004
1,521,917
1,535,921
Additions
5,083
60,240
65,323
Disposals
-
-
-
As at 31 March 2021
19,087
1,582,157
1,601,244
Depreciation
As at April 1 2020
10,412
1,343,041
1,353,453
Charge for the year
2,468
66,088
68,556
Disposals
-
-
-
As at 31 March 2021
12,880
1,409,129
1,422,009
Net Book Value
As at 31 March 2021
6,207
173,028
179,235
As at 31 March 2020
3,592
178,876
182,468
COMPANY
Cost
As at April 1 2020
14,004
1,509,294
1,523,298
Additions
5,083
60,240
65,323
Disposals
-
As at 31 March 2021
19,087
1,569,534
1,588,621
Depreciation
As at April 1 2020
10,412
1,330,640
1,341,052
Charge for the year
2,468
66,088
68,556
Disposals
-
As at 31 March 2021
12,880
1,396,728
1,409,608
Net Book Value
As at 31 March 2021
6,207
172,806
179,013
As at 31 March 2020
3,592
178,654
182,246		 This is stated after charging/(crediting):
£
£
Auditors remuneration:-
Audit fees - annual accounts
8,500
8,300
Accountancy fees
6,479
2,356
Finance lease charges
3
2,446
Depreciation of fixed assets held on finance leases
3,990
65,037
Depreciation of other fixed assets
64,566
119,265
Amortisation of intangible assets
4,000
-
Trustees remuneration
-
-
Trustees expenses re travel and accommodation
-
720
Number
Number
Trustees having expenses reimbursed or paid on their behalf
-
1
12 TANGIBLE FIXED ASSETS
Short leasehold
Fixtures
Land and
Fittings and
GROUP
Buildings
Equipment
Total
Cost
£
£
£
As at April 1 2020
14,004
1,521,917
1,535,921
Additions
5,083
60,240
65,323
Disposals
-
-
-
As at 31 March 2021
19,087
1,582,157
1,601,244
Depreciation
As at April 1 2020
10,412
1,343,041
1,353,453
Charge for the year
2,468
66,088
68,556
Disposals
-
-
-
As at 31 March 2021
12,880
1,409,129
1,422,009
Net Book Value
As at 31 March 2021
6,207
173,028
179,235
As at 31 March 2020
3,592
178,876
182,468
COMPANY
Cost
As at April 1 2020
14,004
1,509,294
1,523,298
Additions
5,083
60,240
65,323
Disposals
-
As at 31 March 2021
19,087
1,569,534
1,588,621
Depreciation
As at April 1 2020
10,412
1,330,640
1,341,052
Charge for the year
2,468
66,088
68,556
Disposals
-
As at 31 March 2021
12,880
1,396,728
1,409,608
Net Book Value
As at 31 March 2021
6,207
172,806
179,013
As at 31 March 2020
3,592
178,654
182,246
19,087 1,582,157
1,601,244
10,412
2,468
-		 1,343,041
1,353,453
66,088
68,556
-
-
12,880 1,409,129
1,422,009
6,207 173,028
179,235
3,592 178,876
182,468
14,004
5,083		 1,509,294
1,523,298
60,240
65,323
-
19,087 1,569,534
1,588,621
10,412
2,468		 1,330,640
1,341,052
66,088
68,556
-
12,880 1,396,728
1,409,608
6,207 172,806
179,013
3,592 178,654
182,246

Included in fixtures, fittings and equipment are assets held on finance lease contracts with a net book value of £nil (2020 - £3,990).

29

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

13 INTANGIBLE FIXED ASSETS

GROUP & COMPANY
Cost
As at April 1 2020
Additions
Disposals
As at 31 March 2021
Amortisation
As at April 1 2020
Charge for the year
Disposals
As at 31 March 2021
Net Book Value
As at 31 March 2021
As at 31 March 2020		 Total
£
-
20,000
-
20,000
-
4,000
-
4,000
16,000
-

14 FIXED ASSET INVESTMENTS

The charity has owns 100% of the issued share capital of the following companies:

Name Activity Investment Company no.
2021
2020
£ £
Greater Manchester Arts Services Ltd Catering services & retail outle 100 100 1905978
Home Manchester Productions Ltd Theatre productions 1 1 9310260
Cornerhouse Publications Ltd Book distribution services 1 1 9475426
102 102

All the companies are incorporated in England.

30

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

15 STOCKS
Stock of goods for resale
16 DEBTORS
Trade debtors
Grants and income receivable
Greater Manchester Arts Services Limited
HOME Manchester Productions Ltd
Cornerhouse Publications Ltd
Intercompany provision
Creative Tax Credits
Other debtors
Prepayments
17 CREDITORS falling due within one year
Trade creditors
Other taxes and social security
Accruals
Cornerhouse Publications Ltd
Other creditors
Finance lease creditors
Income and grants in advance		 GROUP
2021
£
14,297		 GROUP
2020
£
14,842		 COMPANY
COMPANY
2021
2020
£
£
-
-
358,337
225,179
-
-
-
-
63,525
6,870
79,795		 448,043
81,755
-
-
-
-
98,480
4,925
196,234		 234,635
290,884
225,179
81,755
106,846
91,167
62,624
97,579
22,457
84,475
-
(84,475)
-
-
6,870
4,925
78,710
196,213
733,706 829,437 737,321
762,523
137,916
77,418
170,135
-
17,633
-
184,152		 316,584
112,833
154,507
42,213
715
212,934		 83,232
252,881
73,279
108,694
143,206
123,128
-
-
17,633
42,207
-
715
184,152
212,934
587,254 839,786 501,502
740,559

31

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

18 STATEMENT OF FUNDS

Income
Expenditure
Transfers
31/03/2021
£
£
£
£
4,821,780
(4,166,824)
257,636
1,184,419
-
(72,556)
100,323
210,013		 1,394,432 523,987
-		 523,987 1,918,419 1,459,751
(65,319)		 1,394,432
357,959 (337,644)
-		 (337,644) 20,315
(4,239,380) (441,924)
-		 (441,924) (4,681,304)
4,821,780 1,228,651
-		 1,228,651 6,050,431
31/03/2020
01/04/2020
£
271,827
182,246		 454,073 74,904
-		 74,904 528,977
Transfers
losses &
01/04/2019
Income
Expenditure
taxation
£
£
£
£
419,471
6,047,661
(6,130,634)
(64,671)
136,900
-
(136,900)
182,246		 117,575 (19,095)
-		 (19,095) 98,480
(6,267,534) (328,570)
(19,749)		 (348,319) (6,615,853)
6,047,661 251,591
-		 251,591 6,299,252
556,371 170,978
19,749		 190,727 747,098

32

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

18 STATEMENT OF FUNDS (continued)

Income
Expenditure
Transfers
31/03/2021
£
£
£
£
4,803,261
(4,066,360)
237,321
1,249,839		 1,249,839 195,013
10,000
5,000
-		 210,013 1,459,852 80,920
-
-
-
-
6,357
221,860
-
130,566
84,284
-		 523,987 - - 523,987 1,983,839
237,321 85,323
10,000
5,000
-		 100,323 337,644 (20,000)
-
(260,655)
(21,084)
-
(35,905)
-
-
-
-		 (337,644) - - (337,644) -
(4,066,360) (72,556)
-
-
-		 (72,556) (4,138,916) (4,480)
(7,106)
(90,345)
(26,416)
(618)
(25,623)
-
(75,678)
(45,678)
(165,980)		 (441,924) - - (441,924) (4,580,840)
4,803,261 -
-		 - 4,803,261 105,400
7,106
351,000
47,500
-
238,210
-
199,962
114,473
165,000		 1,228,651 - -
 1,228,651 6,031,912
31/03/2020
01/04/2020
£
275,617		 275,617 182,246
-		 182,246 457,863 -
-
-
6,975
45,178
-
6,282
15,489
980		 74,904 - - 74,904 532,767
Transfers
losses &
01/04/2019
Income
Expenditure
taxation
£
£
£
£
399,303
6,579,842
(6,540,377)
(163,151)		 (163,151) 182,246
-		 182,246 19,095 -
-
-
-
(19,095)
-
-
-
-		 (19,095) - - (19,095) -
(6,540,377) -
(136,900)		 (136,900) (6,677,277) -
-
-
(32,516)
(50,134)
(26,185)
(156,251)
(46,106)
(17,378)		 (328,570) (19,749) (19,749) (348,319) (7,025,596)
6,579,842 -
-		 - 6,579,842 -
-
-
13,979
39,500
6,000
154,506
27,606
10,000		 251,591 - - 251,591 6,831,433
399,303 -
136,900		 136,900 536,203 -
-
25,512
74,907
20,185
8,027
33,989
8,358		 170,978 19,749 19,749 190,727 726,930
COMPANY
Unrestricted funds:
General fund
Designated funds:
Invested in fixed assets
Audience development
Education and learning
GMCA re 2019/20
Total unrestricted funds
Restricted Funds:
Garfield Weston Foundation
Environmental training grant
ACE - CRF1
Garfield Weston Foundation - COVID
Project funds
Film
Theatre
Visual Arts
Engagement
Talent Development
Sector leadership & development
Sub total restricted project funds
Capital grants expended
HOME fit out
Sub total restricted capital funds
Total restricted funds
Total Funds

33

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021 18 STATEMENT OF FUNDS (continued)

Income
Expenditure
Transfers
31/03/2021
£
£
£
£
-
-
-
-
-
-
-
-
-
-
-
-
(618)
-
6,357
-
-
-
-		 6,357 -
60,000
73,210
58,650
30,000
-
-
-		 221,860 -
-
-		 -
- (35,000)
-
-
-
-
-
(905)
-		 (35,905) -
-
-		 -
(618) -
-
-
(11,850)
-
(9,273)
-
(4,500)		 (25,623) -
-
-		 -
- -
60,000
73,210
70,500
30,000
-
-
4,500		 238,210 -

-
-		 -
31/03/2020
01/04/2020
£
-
-
-
6,975
-		 6,975 35,000
-
-
-
-
9,273
905
-		 45,178 -
-
-		 -
Transfers
losses &
01/04/2019
Income
Expenditure
taxation
£
£
£
£
10,580
2,644
(13,224)
-
7,957
2,471
(10,428)
-
-
2,938
(2,938)
-
6,975
-
-
-
-
5,926
(5,926)
-		 - -
-
-
-
-
-
(19,095)
-		 (19,095) -
-		 -
(32,516) (33,271)
-
-
-
-
(12,363)
-
(4,500)		 (50,134) (20,185)
(3,000)
(3,000)		 (26,185)
13,979 35,000
-
-
-
-
-
-
4,500		 39,500 -
3,000
3,000		 6,000
25,512 33,271
-
-
-
-
21,636
20,000
-		 74,907 20,185
-		 20,185
COMPANY ANALYSIS
Revenue funds
Film
Film Hub North West re ViVa
BFI re ViVa
Europa
BFI - Danger Deception Deceit!
Other grants
Theatre
John Ellerman Foundation
MCC re HOME Ground
Garfield Weston - HOME Ground
Garfield Weston Foundation
Savannah Wisdom Foundation
Stage One - Theatre Investment Fund Ltd
Theatres Trust
PRS Foundation
Visual Arts
ACE via Primary (Nottingham Studios Ltd)
Other grants
Other donations

34

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021 18 STATEMENT OF FUNDS (continued)
Income
Expenditure
Transfers
31/03/2020
£
£
£
£
51,250
(33,092)
-
22,440
82,661
-
-
82,661
18,500
(2,100)
-
16,400
14,051
(14,051)
-
-
20,000
(17,875)
-
2,125
7,500
(2,500)
-
5,000
5,000
(3,060)
1,940
1,000
(1,000)
-
-
(2,000)
-
-
-
-
-
-		 130,566 -
6,354
68,930
-
6,000
-
-
3,000
-		 84,284 -
-
-		 -
- -
-
-
-
-
-
-
-
-		 - -
-
-		 -
(75,678) (135)
(30,000)
(12,570)
-
(2,973)
-
-
-
-		 (45,678) (165,000)
(980)
-		 (165,980)
199,962 -
30,000
81,500
-
2,973
-
-
-
-		 114,473 165,000
-		 165,000
31/03/2019
01/04/2019
£
4,282
-
-
-
-
-
-
-
2,000
-		 6,282 135
6,354
-
-
6,000
-
-
3,000
-		 15,489 -
980
-		 980
Transfers
losses &
01/04/2018
Income
Expenditure
taxation
£
£
£
£
8,027
75,000
(78,745)
-
-
-
-
-
-
-
-
-
-
15,300
(15,300)
-
-
50,000
(50,000)
-
-
10,000
(10,000)
-
-
-
-
-
-
-
-
-
-
2,000
-
-
-
2,206
(2,206)
-		 - -
-
-
-
-
-
-
-
-		 - -
-
-		 -
(156,251) -
(25,000)
-
(9,106)
-
(7,500)
(2,000)
-
(2,500)		 (46,106) -
(3,228)
(14,150)		 (17,378)
154,506 -
-
-
9,106
6,000
7,500
2,000
3,000
-		 27,606 -
-
10,000		 10,000
8,027 135
31,354
-
-
-
-
-
-
2,500		 33,989 -
4,208
4,150		 8,358
COMPANY ANALYSIS
Engagement
Young Manchester
German Wings
Garfield Weston Foundation
BFI Film Academy
Ogelsby Charitable Foundation
The Beaverbrooks Charitable Trust
Future Arts Centres (national Lottery)
Austin Hope
The Bob Halliwell Charitable Trust
The Peter Kershaw Trust
Talent Development
Foyle Foundation
Esme Fairbairn
Garfield Weston Foundation
National theatre
Edwin Fox Foundation
Evan Cornish Foundation
Granada Foundation
Leri Trust
Leche Trust
Sector Leadership & development
ACE - Audience Development
ACE - Danish Delegations
ACE - Danish Delegations

35

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

18 STATEMENT OF FUNDS (continued)

Capital grants expended

Capital grants expended represents amounts received and expended on fixed assets where there are continuing restrictions over their use and disposal, against which future depreciation will be charged.

Other restricted fund balances

Garfield Weston Foundation Reopening and investment in improved systems BFI - Danger Deception Deceit! To support project costs 2021/20 MCC re Homeground Creation of outside performance space Garfield Weston Foundation re Homeground Creation of and operation of outside performance space Garfield Weston Foundation Commissions and festival costs Savannah Wisdom Foundation To provide subsidised tickets Young Manchester For creative activities for young people German Wings To support young people taking first steps in creative sector. Garfield Weston Foundation To support engagement programme, including staffing costs. Ogelsby Charitable Foundation To support engagement programme The Beaverbrooks Charitable Trust To support engagement programme Future Arts Centres (national Lottery) To support engagement programme Esme Fairbairn To support talent development project across artforms Garfield Weston Foundation To support the costs of the talent development programme Edwin Fox Foundation Towards costs of next Push Festival

It is anticipated that all the above funds will be utilised in 2021/22.

19 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Company fund balances at March 31 2021
are represented by:-
Tangible fixed assets
Intangible fixed assets
Fixed asset investment in subsidiaries
Net current assets
Company fund balances at March 31 2020
are represented by:-
Tangible fixed assets
Fixed asset investment in subsidiaries
Net current assets
Creditors due in more than one year
Free Reserves:
Net current assets		 Unrestricted funds
General
Designated
£
£
-
179,013
-
16,000
102
-
1,249,737
15,000		 Unrestricted funds
General
Designated
£
£
-
179,013
-
16,000
102
-
1,249,737
15,000		 Restricted
Funds
£
-
-
-
523,987		 Total
£
179,013
16,000
102
1,788,724
1,249,839 210,013 523,987 1,983,839
-
102
275,515
-		 182,246
-
-		 -
74,904		 182,246
102
350,419
-
275,617 182,246 74,904 532,767
2021
£
1,249,737		 2020
£
275,515

36

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

20 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) after taxation
Add back depreciation & amortisation
Deduct interest income shown in investing activities
Deduct profit/add back losses on disposals of FA
Decrease/(increase) in stock
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash generated from/(used in) operating activities		 Group
2021
£
1,389,442
72,556
(262)
-
545
95,731
(251,817)		 Group
2020
£
(218,121)
184,522
(769)
-
(2,989)
244,418
(159,430)		 Charity
Charity
2021
2020
£
£
1,451,072
(194,163)
72,556
184,302
(262)
(769)
-
-
-
-
25,202
191,844
(238,342)
(134,092)
1,306,195 47,631 1,310,226
47,122
21 MOVEMENT IN NET DEBT
Group
Cash and cash equivalents
Cash at bank and in hand
Debt
Finance lease obligations
Cash and cash equivalents net of debt
Charity
Cash and cash equivalents
Cash at bank and in hand
Debt
Finance lease obligations
Cash and cash equivalents net of debt		 at 31/3/19
£
342,016		 cashflows
£
1,220,419		 leases
£
-		 cash
as 31/3/20
£
£
-
1,562,435
715 (715) - -
-
341,301 1,224,450 - 1,562,435
-
1,552,905
328,455
715 (715) - -
-
327,740 1,552,905

There were no: acquisitions or disposals of subsidiaries; foreign exchange movements; or market value changes in the period.

22 CONSTITUTION

The Company is limited by guarantee and does not have a share capital. In the event of the Company being wound up the members are committed to contributing £1 each.

23 TAXATION

The company is a registered charity and is entitled to claim annual exemption from UK corporation tax under sections 466 to 477 of the Corporation Tax Act 2010.

24 CAPITAL COMMITMENTS

The company had the no capital commitments at the year end (2020 - none).

37

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

25 LEASE COMMITMENTS

a Operating leases

At the year end the company had no commitments under operating leases (2020 - none).

b Finance leases

At the year end the Group and Company had the following minimum commitments under finance leases:

Payable within:
One year
Between 2 and 5 years
Less interest
Finance lease liabilities per creditors notes		 £
£
-
3,104
-
-
-
3,104
-
(2,389)
-
715
-
715

26 RELATED PARTY TRANSACTIONS

a Transactions involving directors

The Charity benefits from the pro bono legal services provided by Weightmans, of which Karl Jackson one of the trustees is a partner. This in kind support has been included in these accounts as income and costs valued at £25,000 (2020 - £25,000).

The directors made donations to the charity totalling £9,500 in the year ( 2020 - £13,518), of which$1,500 related to restricted fund projects (2020 - £none) which did not influence the decision to proceed with these activities. None of the directors were patrons in the year (2020, two directors contributing £10,000).

There are no other transactions with Directors which require disclosure.

b Key management personnel.

Details of the employment benefits of key management personnel are given in note 10.

c Trading subsidiaries

In addition to the details of the charges to and from the trading subsidiaries given in note 6, the Charity recharged

overheads to GMAS, which are netted off its own costs, as follows:

63,094 73,627

38

GREATER MANCHESTER ARTS CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021

27 GREATER MANCHESTER PENSION FUND

The charity has 5 members of staff who are members of the Greater Manchester Pension Fund (GMPF), a defined benefit fund, being former employees of Manchester City Council as part of the Library Theatre Company.

As part of the merger agreement the charity entered into a pooling agreement with Manchester City Council in respect of the employer contributions to GMPF. Under this agreement the rate of employer contributions payable by the charity is effectively fixed at the date of the merger, with MCC agreeing to compensate the charity for any future increases. Employer contributions in the year were 19.1% of eligible salary.

The GMPF is valued every three years by a professionally qualified independent actuary using the projected unit method, the rate of contributions being determined by the actuary. The latest actuarial valuation was at 31[st] March 2019. The actuarial valuation showed the value of the scheme assets as being 102% of liabilities of the scheme.

The actuary reported that in his opinion “the resources of the scheme are likely in the normal course of events to meet the liabilities of the scheme, as required by regulations.”

This is a multi-employer scheme and it is not possible to separately identify the assets and liabilities of the scheme which would be attributable to the charity and it is therefore accounted for as a defined contribution scheme.

39