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2021-03-31-accounts

THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

ANNUAL REPORT AND ACCOUNTS

for the year ended

31st March 2021

REGISTERED NUMBER: 02391543

CHARITY NUMBER: 702781

THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Annual Report and Accounts for the year ended 31st March 2021

Contents Page
Company Information 1
Report of the Trustees 2
Independent Auditor’s Report 11
Consolidated Statement of Financial Activities 14
Consolidated and Company Balance Sheets 15
Consolidated Statement of Cash Flows 16
Notes to the Accounts 17

THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Company Information for the year ended 31st March 2021

Incorporated in England and Wales on 11th June 1999 Incorporated in England and Wales on 11th June 1999
Company number: 02391543
Charity number: 702781
Trustees: Rachel Higham (Chair)
Prof. Dinah Birch
Simon Sprince (resigned 9 September 2021)
Emlyn Williams (resigned 23 November 2021)
Prof. Joe Yates (resigned 7 October 2021)
Matthew Balnaves
Sheralee Lockhart
Jernice Easthope (appointed 5 May 2020)
Dr Richard Jones (appointed 27 April 2020, resigned 11th Nov 2021)
Secretary: Nicola Triscott (appointed 13th October 2021)
Senior Staff:
Chief Executive: Nicola Triscott
Head of Programme: Maitreyi Maheshwari
Head of Operations: James Hammond
Registered office: The FACT Centre
88 Wood Street
Liverpool
L1 4DQ
Statutory auditor: DSG
43 Castle Street
Liverpool
L2 9TL
Bankers: Natwest Bank
2-8 Church Street
Liverpool L1 3BG

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Report of the Trustees for the year ended 31st March 2021

The trustees, who are the directors of the charity, present their annual report and the audited accounts for the year ended 31st March 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP 2019) “Accounting and Reporting by Charities” (FRS102) in preparing the annual report and financial statements of the charity.

Governing document

The charity is a company limited by guarantee and registered as a charity with the Charity Commission. It is governed by its Memorandum and Articles of Association dated 26th March 1990, as subsequently amended by special resolutions dated, 12th June 1996, 27th September 1999, 8th January 2003, 19th April 2004 and 12[th] September 2019.

Charitable Objective

FACT’s charitable objective, as defined in the Articles of Association approved in September 2019, is to promote the arts and creative technology and to advance the education in this field for the benefit of the public.

Public Benefit

The trustees of the charity are mindful of their particular responsibilities as outlined in Guidance Note “Charities and Public Benefit (2009), and consider that the charitable objectives have been discharged through the following activities:

The trustees believe that the charity genuinely discharges its duty of care relating to public benefit and will continue to undertake additional assessment to underline the charity’s effectiveness in this respect.

Appointment and retirement of trustees

Trustees are appointed to the board by resolution of the trustees of the board. There must be not less than seven and not more than fifteen trustees. The trustees who served during the year, together with any changes up to the date of approving this report are listed on page 1.

The usual term of office for a trustee is three years, at the end of which they shall retire. Trustees are eligible for reappointment by the board of Trustees for up to a further two terms, each of three years, unless a trustee is appointed to be Chair where another one term is permitted. No Trustee shall serve for more than nine consecutive years, unless the Trustees consider it would be in the best interests of FACT for a particular Trustee to continue to serve beyond that period and that Trustee is reappointed in accordance with the Articles.

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Report of the Trustees (continued) for the year ended 31st March 2021

Trustee recruitment, induction and training

New trustees are appointed after a recruitment process as part of which they will submit a written application. Prospective candidates are interviewed and proposed for appointment to the board. The full board makes the decision on the appointment of any new trustee. All new trustees are issued with an induction pack of information on FACT and its activities and are encouraged to attend events at the centre through regular invitations. Relevant training opportunities for trustees of cultural organisations are circulated on a regular basis.

Risk management

The trustees are aware of the risks facing the charity by way of financial and strategic management and take appropriate steps to mitigate them. The Finance Sub Committee meets at regular intervals between Board meetings and proposals from these meetings are then put forward to the Board. A risk register is maintained and reviewed at every Board meeting.

The charity continues its strategy to develop an appropriate reserve and the Board is ensuring the charity prioritises the building of this fund over the coming years. The Board and the senior management are not complacent and recognise that continuous review of all risk areas is essential to ensure that the business operates on a sound financial footing both now and in the future.

Health and Safety issues in the building are continually monitored and appropriate action is taken. The charity has carried out full health and safety risk analysis on the operation, the health and safety and equal opportunities policy are included in the staff manual and all new recruits are given health and safety training appropriate to their position.

Organisation

The board of trustees, who are also the directors of the charity, administer the charity and meets as necessary but not less than four times a year. The day-to-day operations of the charity are the responsibility of the Chief Executive and the Executive Team, named above, to whom the board of trustees have delegated authority for operational matters including finance, employment and development, within the overall strategy agreed by the board.

Aims, Achievements and Performance during the Year

Renowned internationally and based in Liverpool, FACT inspires people with bold and experimental projects and exhibitions exploring art, technology, science and society. FACT nurtures a diverse future generation of artists, filmmakers, creative makers, imaginists and critical thinkers, and supports young people and emerging artists to gain confidence, skills and experience that can pave the way to more productive and enriching futures.

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Report of the Trustees (continued) for the year ended 31st March 2021

FACT aims to provide:

These aims are each underpinned by a range of objectives and key performance indicators covering all aspects of the organisation’s ambitions. FACT has weathered the uncertainty of COVID-19. We have kept steadfast in our mission - enriching and shaping lives through film, art and creative technology - by being resilient, flexible and responsive to the needs of our audiences. In the last year, we delivered 80+ learning sessions, worked with over 450 school children, supported 33 artists, and engaged global audiences of over 300,000 in the last year.

While the pandemic and the transition to new ways of working were extremely demanding on staff, the lockdowns had inadvertently positive effects in terms of triggering innovation and resourcefulness. New online commissions, participatory programmes, events activities and artist development programmes were developed, along with other forms of remote delivery of projects. When the building reopened, the team re-worked our exhibitions for a Covid-safe audience experience, introducing interactivity to eliminate the need for touch and to assist social distancing, such as motion sensor triggers, QR codes, the use of AR filters, etc.

For the year 2020/2021, FACT chose a programme theme of The Living Planet, which proved timely. Through exhibitions, new commissions, events, podcasts, videos, activities and learning projects, both online and in-person, The Living Planet looked at our relationship with the natural world, exploring ways in which wildlife, plant life and ecological systems respond to the impact of human actions. Although the building was closed at times, FACT remained open, providing events and activities online and offsite.

Exhibitions Programme

And Say the Animal Responded? (Exhibition, 12 August 2020 - 14 February 2021)

FACT’s major exhibition for 2020/21, postponed from its intended opening date in March, opened in August after the first pandemic lockdown. It then had an extended run though the year, allowing people to access it during periods between lockdowns.

The exhibition presented work by five international artist/artist groups: including a new sound-sculptural installation by Ariel Guzik (Mexico) and works by Amalia Pica (Argentina/UK) with Rafael Ortega (Mexico, Alexandra Daisy Ginsberg (UK), Demelza Kooij (Netherlands/UK) and Kuai Shen (Ecuador).

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Report of the Trustees (continued) for the year ended 31st March 2021

And Say the Animal Responded? enabled visitors to encounter the (non-human) animal on its own terms, without placing human characteristics or logic onto the animal’s behaviours and communications. Underpinning the exhibition were considerations of the ever-diminishing environments of the animal, and how human-centric behaviours and technologies govern the ways in which we encounter the creatures with whom we share our planet. The exhibition encouraged audiences to look at the world through very different eyes, suggesting that we need radically to rethink the way we engage with our ecosystems and how we construct our ideas of community.

"A captivating show that explores our fragile connection to other species" - The Guardian

Broken Symmetries (International tour)

The exhibition Broken Symmetries: Art x Physics ran from 14 March - 31 May 2020 at the National Taiwan Museum of Fine Art, remaining open despite the pandemic and attracting 34,146 visitors. It opened in parallel at iMAL, Brussels, on 5 March and ran until 16 August 2020, with total visitor figures of 1490. The exhibition then toured to KUMU in Tallinn, Estonia, where it ran from 29 October 2020 - 21 February 2021.

Public Programme

In addition to a programme of podcasts and online talks, activities and events, FACT’s transformer summit moved online and was reworked as Framework for Resilience.

Framework for Resilience (Discursive event)

Following the cancellation of FACT’s first transformer summit in March 2020, Framework for Resilience was the first of a new series of discursive events. This three-part series of online conversations, concluding FACT’s Year of the Living Planet, brought together activists, artists, researchers and educators to think about the world we are creating, the world we are destroying, the systems which will fall, and those which should prevail. The conversations were attended by 399 people.

“The series does not offer an answer to how we reverse the world’s destruction - it never claimed it would. But it is a good place to start in the process of unlearning the colonial attitudes that underpin our systems of living. It offers a sense of community and common purpose that feeds resilience; the framework that might lead towards resistance.” – Art Monthly

Artist Development Programme

During the 2020/21 year, FACT ran remote residencies for 15 artists through three schemes:

FACT Together, set up in response to the financial uncertainty for artists caused by COVID-19, offered 10 early career artists living in the North of England a grant of £1,500 each, plus three months of support from the FACT team, to develop a new project to be presented online. Projects responded to FACT’s 2020 theme of The Living Planet . A rich variety of work was produced, including games, an IGTV series, a lunar calendar poetry subscription, meditative AV works, and an interactive map. Some highlights of the reach of the artworks were Milda Baginskaite's IGTV series Global Challenges, which received over 5600 views, more than 400 people exploring Niloo Sharifi's The Magic Tree, and 338 people participating in Shonagh Short's online game PESTS.

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Report of the Trustees (continued) for the year ended 31st March 2021

‘It helped develop my practice by allowing me to work in a way I've only dreamed of before and shown me the direction I want to take in future.” - 2020 Participating Artist.

Our 2020 European Media Arts Residency Exchange artists, Carolin Liebl and Nikolas Schmid-Pfähler), who are based in Germany, had a remote residency with FACT throughthe first six months of the year, with the outputs shared online in November 2020 across a blog post and social media presence. A video documenting the artists’ process and finished work was later produced.

The first year of the Jerwood Arts FACT Digital Fellowships scheme appointed three emerging creatives – Angele Chan, Tessa Norton and Yambe Tan - for this paid remote residency and artistic development opportunity. During their residency, the fellows received bespoke training, mentoring, crits, production support and research input from the team at FACT, the other Fellows, and an invited selection of wider collaborators, presenting their work in Spring 2021 when the centre reopened.

Learning Programme

Augmented Empathy (Participatory commission with young people)

Artist collective Keiken (Hana Omori, Isabel Ramos and Tanya Cruz) developed a multi-layered participatory project called Augmented Empathy in a new collaborative commission with FACT’s Learning team. In Augmented Empathy, Keimen explored the subversion of existing tools - in this case, Instagram filters - and how social media can be used as a space for exchange and artistic creation. The result was 4 Instagram filters which can be downloaded and used by anyone. With dance artist Sakeema Crook and CGI artist Ryan Vautier, Keiken then developed a series of live performances and this film installation using the filters.

Learning Non-Human (Learning project for intergenerational group of young people and older adults)

Young at Art engages with over-60s to creatively explore art, technology and culture towards an active notion of digital agency. It is run by FACT, Open Eye Gallery and the Happy Older People’s Network, National Museums Liverpool.

FACT’s Young at Art project for 2020/21 was Learning Non-Human, an intergenerational project developed by artist and former lawyer, Jack Tan, alongside local participants. Commissioned as part of FACT’s Year of the Living Planet, the project gave participants the opportunity to explore Intergenerational Climate Justice and how future humans and non-humans will be affected by our current actions. FACT’s Learning team and Tan worked alongside youth leaders at Team Oasis, Dingle to initiate the project, and participants were selected from FACT’s Digital Ambassadors (over-60’s group), and FACT’s young people’s programme. The project allowed the participants to continue regularly engaging with FACT throughout the Covid-19 pandemic and resulting lockdowns. The result of the project was a digital tool and online game, NonHumans of Liverpool, that can be used to affect policymaking, which takes into account the voices of nonhumans, such as birds, trees and flowers, that are affected by our organisations, lives and businesses. Participants were invited to play the game, assuming the roles of these non-human folk.

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Report of the Trustees (continued) for the year ended 31st March 2021

Resolution (Learning programme for adults in prisons)

Funded by the Paul Hamlyn Foundation, this three-year programme brings together participants within the criminal justice system, artists and staff to collaboratively produce a series of new artworks, which critically explore their understanding and experience of the world, both within the criminal justice system and beyond. Whilst the prisons closed across the country due to the pandemic, the Learning team was still able to work remotely with a group of prisoners at HMP Altcourse. Artist Melanie Crean designed a self-led activity for the group of ex-military men engaged in the project. Melanie also led a session with policy makers and activists from The Howard League Penal Reform to test some of the ideas in her project, The Machine to Unmake you .

Financial Review

The financial results for the year are set out on pages 14 to 31. The charity had net incoming resources on unrestricted funds of £180,377 (2020: £53,619). This strong financial performance reflects a number of non-recurrent impacts related to the Covid-19 pandemic: the closure of the building to the public for much of the financial year temporarily reduced estates running costs and allowed for a temporary reduction in staffing cost, with support of the coronavirus job retention scheme grant. However, earned income from events, hospitality and rental income were negatively impacted and will take some time to recover.

FACT Trading Limited is a wholly owned subsidiary company that provides events and hires services within the FACT building, as well as video production services. It made a profit of £Nil for the financial year (2020: £Nil), after allowing for a management fee payable to the Charity of £Nil (2020: £Nil), and a gift aid donation of £Nil (2020: £Nil).

Going Concern

The financial statements have been prepared on a going concern basis. The organisation has been able to successfully negotiate the economic disruption caused by the Covid-19 pandemic through careful management of costs, obtaining funding commitments from core funders, together with additional fundraising and cash flow management.

The trustees have considered the level of funds held and the expected level of income and expenditure for the twelve months from authorising these financial statements. The trustees assess the charity to be a going concern based on review of financial performance of the 2021/22 year to date, the management accounts forecast for the remainder of 2021/22, the 18 month rolling cash flow forecast, funding commitments from Arts Council England and Liverpool City Council, and longer-term plans and forecasts for 2022 and beyond. As a result, the trustees are confident about the financial future of the charity and satisfied that these accounts are prepared on a going concern basis.

Reserves Policy

The trustees have adopted a financial policy that seeks to increase unrestricted reserves to a level of approximately £300,000, which presently represents two to three months of operating costs. The charity is also intending in future years to set aside designated funds for the purpose of maintaining the charity’s asset base in good order through timely repair and replacement. The unrestricted reserve at the end of the year stood at £381,672 (2020: £201,295).

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Report of the Trustees (continued) for the year ended 31st March 2021

At the year end the group had free reserves of £235,826 (2020: £83,782), consisting of unrestricted reserves of £381,672 and commitments for future depreciation of unrestricted fixed assets of £145,846. During the year the trustees designated £240,000 of unrestricted reserves for future capital expenditure needs, and a further £50,075 towards supporting artist residencies.

Related Parties and Co-operation with other organisations

No Trustees receive remuneration from their work with the charity. Details of transactions with the Trustees and key management personnel are set out in Note 12. No connections between Trustees/senior managers have been disclosed during the year, and therefore no such related party transactions have been reported.

Remuneration of key management personnel

The remuneration of key management personnel is determined by the board of trustees. The trustees consider the seniority of the post, the expertise and experience of the post holder, the local market conditions and sector market conditions for remuneration, and benchmarking information from similar organisations in determining the remuneration of key management personnel.

Changes in fixed assets

Movements in fixed assets are shown in note 14 to the accounts.

Future Plans

Radical Ancestry is FACT’s next annual theme: an exploration of race, migration and belonging. Three exhibitions/seasons are planned within this theme. The first will be curated by FACT’s 2021 curator-inresidence Annie Jael Kwan. The second, curated by the FACT team, is titled Stories of Us. The third, with a theme of Global Futurisms, will be curated by our 2022 curator-in-residence (to be appointed). Building on the success of our online programme, residencies and commissions, in 2021-2023 and beyond, online commissions, public events and residencies will become continued and important parts of FACT’s offer.

A new initiative by FACT, Cinema in the City will extend FACT’s world-leading digital art and film programme beyond our doors, taking cinema into distinctive new corners of the city and offering film lovers a unique experience of film and location. Each film screening will be preceded by a short film produced by a local artist, curated by FACT’s Programme team through a city-wide open call. By programming their work alongside larger titles, we offer new artists a culturally engaged audience, raising their profile and developing their practice. This platform supports our mission to inspire and nurture a diverse new generation of artists and film-makers, enabling emerging artists to gain confidence, skills and experience.

Responding to the difficult experience of young people and emerging creative professionals over the course of the pandemic, FACT has a renewed focus on supporting young people, particularly teenagers taking decisions that will affect the direction of their lives and those in their twenties starting out on their careers.

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Report of the Trustees (continued) for the year ended 31st March 2021

Our initiatives for 2021/22 include:

Statement of trustees’ responsibilities

The trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Annual Report and Accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare accounts 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 the year. In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the accounts 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.

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Report of the Trustees (continued) for the year ended 31st March 2021

Trustees’ statement of disclosure of information to the auditors

Each of the persons who is a trustee at the date of approval of this report confirm in so far as they are aware that:

Auditors

DSG have agreed to offer themselves for re-appointment as auditors of the charity, and a resolution for their reappointment will be proposed at the Annual General Meeting.

This report was approved by the Board of Trustees on 6[th] December 2021 and signed on its behalf by:

Rachel Higham Chair of the Board

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Independent auditors’ report to the members and trustees of The Foundation for Art and Creative Technology

Opinion

We have audited the financial statements of The Foundation for Art and Creative Technology (the ‘parent charitable company’) for the year ended 31st March 2021 which comprise the Consolidated Statement of Financial Activities (including Consolidated Income and Expenditure Account), the Group and Company Balance Sheet, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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

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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 the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report including the strategic report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Group’s 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

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

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

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Capability of the audit in detecting irregularities, including fraud

Based on our discussions with the Group and parent charitable company’s management and the Trustees, we identified that the following laws and regulations are significant to the Group and parent charitable company:

These matters were discussed amongst the engagement team at the planning stage and the team remained alert to non-compliance throughout the audit.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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, for our audit work, for this report, or for the opinions we have formed.

Andrew Moss BA FCA (Senior Statutory Auditor)

For and on behalf of DSG Chartered Accountants, Statutory Auditor Castle Chambers 43 Castle Street Liverpool L2 9TL

6[th] December 2021

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Consolidated Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31st March 2021

Notes Unrestricted
Funds		 Restricted
Funds		 Total 2021 Total 2020
(Restated)
Income from: £ £ £ £
Donations and legacies 2 1,125,380 0 1,125,380 1,133,681
Charitable activities 3 358,322 111,785 470,106 542,582
Other tradingactivities 4 900 0 900 33,414
Other income 5 112,058 0 112,058 0
Total income 1,596,659 111,785 1,708,444 1,709,677
Expenditure on:
Raisingfunds 6 236,668 0 236,668 153,886
Charitable activities 7 1,179,614 207,025 1,386,639 1,597,412
Total expenditure 1,416,282 207,025 1,623,307 1,751,298
Net income/(expenditure) 10 180,377 (95,240) 85,137 (41,621)
Reconciliation of funds:
Total funds brought forward 201,295 3,664,374 3,865,669 3,907,290
Total funds carried forward 381,672 3,569,134 3,950,806 3,865,669

All income and expenditure relate to continuing operations.

The Statement of Financial Activities includes all gains and losses recognised during the year.

The notes on pages 17 to 31 form part of these accounts.

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Balance Sheets as at:

31st March 2021

Company Number: 2391543

Consolidated Consolidated Company Company
2021 2020
(restated)		 2021 2020
(restated)
£ £ £ £
Fixed assets
Tangible Assets 3,676,158 3,795,847 3,676,158 3,795,847
Intangible Assets 11,361 18,935 11,361 18,935
Investments 0 0 1 1
3,687,519 3,814,782 3,687,520 3,814,783
Current assets
Debtors 197,585 466,564 203,893 477,814
Cash at bank and in hand 538,159 (40,487) 531,044 (41,419)
735,743 426,077 734,937 436,396
Creditors: amounts fallingdue
within oneyear 415,981 350,567 415,981 361,692
Net current assets 319,763 75,510 318,956 74,704
Creditors: amounts fallingdue 56,475 24,624 56,475 24,624
after more than oneyear
Total Net Assets 3,950,806 3,865,669 3,950,001 3,864,863
Charity Funds
Unrestricted funds -general 91,597 201,295 90,792 200,490
Unrestricted funds - designated 290,075 0 290,075 0
Restricted funds 3,569,134 3,664,374 3,569,134 3,664,374
Total funds 3,950,806 3,865,669 3,950,001 3,864,864

These accounts were approved by the trustees and authorised for use on 6[th] December 2021, and are signed on their behalf by:

Rachel Higham Chair of the Board

The notes on pages 17 to 31 form part of these accounts.

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Consolidated Statement of Cash Flows

For the year ended 31st March 2021

Notes 2021 2020
£ £
Cash Flow from Operating Activities 26 555,743 (7,192)
Cash Flow from Investing Activities
Payments to acquirefixed assets (12,504) (36,777)
Gains (losses) on foreigncurrency exchangerates 0 (1,981)
Repayment ofsocial investmentloan (14,594) (13,604)
Receiptfor BounceBack Loan 50,000 0
Net Cash Flow from Investing Activities 22,902 (52,362)
Netincrease (decrease)incash inthe year 578,646 (59,554)
Cash and cash equivalents at start ofyear (40,487) 19,067
Cash and cash equivalents at end ofyear 538,159 (40,487)
Cash and cash equivalents consist of:
Cash at bank and in hand 538,159 (40,487)

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Notes to the Accounts Year ended 31st March 2021

1. Summary of significant accounting policies

(a) General information and basis of preparation

The Foundation for Art and Creative Technology is a limited company by guarantee and a registered charity in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are set out in the Trustees’ Report.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1.

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

(b) Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

(c) Income recognition

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

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.

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Notes to the Accounts Year ended 31st March 2021

1. Summary of significant accounting policies (continued)

(c) Income recognition (continued)

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

The charity receives government and other grants in respect of specific projects and to support general revenue requirements. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as bank deposits and is primarily in the form of interest. It is included when the amount can be measured reliably using the effective interest method.

(d) Expenditure recognition

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

(e) Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at the FACT centre. Where support costs cannot be directly attributed to particular headings, they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Premises overheads have been allocated on the basis of space used by the various charitable activities and other overheads have been allocated on the basis of staff numbers.

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

The analysis of these costs is included in note 8.

(f) Fixed assets

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

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Notes to the Accounts Year ended 31st March 2021

1. Summary of significant accounting policies (continued)

Depreciation is provided on all tangible fixed assets with a purchase cost in excess of £400, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Long leasehold premises 2% per annum after impairment, net of the cost of land Leasehold Improvements 10% per annum Exhibitions & collaboration equipment 15% per annum Film and video equipment 25% per annum Fittings and office equipment 25% per annum

Intangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated amortisation over an economic life of 5 years unless there are any impairment losses to be recognised.

(g) Investments

Investments in subsidiaries are measured at cost less impairment.

(h) Debtors and creditors receivable / payable within one year

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

(i) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

(j) Concessionary loans

Concessionary loans include those payable to a third party which are interest free or below market interest rates and are made to advance charitable purposes. Where the loan is repayable on demand within one year, the loan is measured at cost, less impairment. Where the loan is repayable more than one year, the loan is initially measured at fair value and subsequently measured at amortised cost using the effective interest rate method, less impairment.

(k) Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

(l) Operating leases

Rentals payable and receivable under operating leases are charged to the SoFA on a straight-line basis over the period of the lease.

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Notes to the Accounts Year ended 31st March 2021

1. Summary of significant accounting policies (continued)

(m) Foreign currency

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

(n) Employee benefits

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

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

(o) Tax

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

(p) Going concern

The financial statements show a net current asset position of £319,763 (2020: £122,778). The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure are sufficient with the level of reserves for the charity to be able to continue as a going concern. Having regard to this matter, the trustees consider it appropriate to prepare the financial statements on the going concern basis.

Note 2- Income from Donations and Legacies Note 2- Income from Donations and Legacies Unrestricted Funds Unrestricted Funds Unrestricted Funds
Total 2021 Total 2020
£ £
Revenue Grants
Arts Council England 1,024,418 1,005,909
Liverpool CityCouncil 99,164 124,164
Donations
Unrestricted Donations 1,798 3,608
1,125,380 1,133,681

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Notes to the Accounts

Year ended 31st March 2021

Note 3: Income from Charitable Activities Other earned Total Total
Grants income 2021 2020
£ £ £ £
Income receivable
Exhibitions & commissions 49,054 76,785 125,839 113,922
Learningand Participation Programme 4,374 50,075 54,449 112,267
Media services 0 31,209 31,209 29,859
Recharges to thirdparties 0 178,940 178,940 237,506
Museums & Galleries Tax Relief 0 21,312 21,312 49,028
Cultural RecoveryFund 58,357 0 58,357 0
111,785 358,322 470,106 542,582
Deferred i Deferred i ncome
Brought
forward		 Carried forward Total Total
Received 2021 2020
£ £ £ £ £
Projectgrants - restricted funds
Exhibitions & commissions 9,193 73,381 33,520 49,054 83,231
Learningand Participation Programme 4,374 0 0 4,374 101,118
Cultural RecoveryFund 58,357 0 0 58,357 0
71,924 73,381 33,520 111,785 184,349
Other earned income -unrestricted funds
Exhibitions & commissions 76,785 0 0 76,785 30,691
Learning andParticipation Programme 50,075 0 0 50,075 11,148
Media services 31,209 0 0 31,209 29,859
Recharges to third parties 178,940 0 0 178,940 237,506
Museums & Galleries Tax Relief 21,312 0 0 21,312 49,028
Other Income 0 0 0 0 0
358,322 0 0 358,322 358,233
Note 4: Income from other Trading Activities Unrestricted Funds Unrestricted Funds Unrestricted Funds
2021 2020
£ £
Events Management 900 33,414
Note 5: Other Income Unrestricted Funds
2021 2020
£ £
Job Retention Scheme Grant 112,058 0

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Notes to the Accounts Year ended 31st March 2021

Note 6: Expenditure on Raising Funds
Direct Support Total Total
Costs Costs 2021 2020
£ £ £ £
CommercialOperations 30,558 87,781 118,339 63,272
Fundraisingand Development 45,009 73,320 118,329 90,614
75,567 161,101 236,668 153,886
Note 7: Expenditure on Charitable Activities Note 7: Expenditure on Charitable Activities Note 7: Expenditure on Charitable Activities Note 7: Expenditure on Charitable Activities Note 7: Expenditure on Charitable Activities
Direct Support Total Total
Costs Costs 2021 2020
£ £ £ £
Exhibition & Commissions 354,525 508,314 862,838 959,273
Learning andParticipation Programme 115,574 349,870 465,444 638,139
Cultural RecoveryFund 54,620 3,737 58,357 0
524,718 861,921 1,386,639 1,597,412

£159,757 (2020: £279,589) of the above costs were attributable to restricted funds and £1,226,882 (2020: £1,317,823) of the above costs were attributable to unrestricted funds.

Note 8: Allocation of Support Costs
Raising Funds
£		 Exhibition &
Commissions
£		 Learning
Programme
£		 Commercial
Operations
£		 Total
£
StaffCosts 52,336 235,513 157,009 26,168 471,026
Staff-relatedExpenses 73 330 220 37 661
Premises andInsurance Costs 5,681 142,021 99,415 36,925 284,042
Marketing Costs 1,329 11,959 11,959 1,329 26,575
Depreciation 2,729 68,215 47,750 17,736 136,429
Office andITCosts 9,343 42,046 28,030 4,672 84,091
Governance Costs 1,829 8,231 5,487 915 16,462
73,320 508,314 349,870 87,781 1,019,285

Bases of cost allocations

Property and depreciation costs are allocated firstly on the basis of space to the charitable activities and to support costs in respect of all shared space. Marketing costs are allocated on the basis of the estimated share of the value of the services to each of the main charitable areas. Other costs are allocated on the basis of staff numbers.

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Notes to the Accounts

Year ended 31st March 2021

For comparison, the prior year allocation of support costs was as follows:

Note 8: Allocation of Support Costs - 2019/20 Note 8: Allocation of Support Costs - 2019/20
Commercial
Operations £		 Raising Funds
£		 Exhibition &
Commissions
£		 Learning
Programme
£		 Total
£
StaffCosts - 20,620 206,199 185,579 412,398
Staff-related Expenses 1,272 288 2,880 2,592 7,033
Premises and Insurance Costs - 17,858 178,577 160,719 357,154
MarketingCosts - 1,410 14,104 12,693 28,208
Depreciation - 7,035 70,351 63,316 140,702
Office and IT Costs 923 4,686 46,855 42,170 94,633
Governance Costs - 663 6,627 5,964 13,254
2,195 52,559 525,593 473,034 1,053,382
Note 9: Governance Costs 2021 2020
£ £
Board Expenses 0 1,141
Auditor's Remuneration 6,750 5,000
Governance Support Costs 9,712 7,113
16,462 13,254
Note 10: Net Income/Expenditure for the Year Note 10: Net Income/Expenditure for the Year 2021 2020
£ £
This is stated after charging:
Auditor's Remuneration
- Audit Fees 6,750 5,000
- Non audit services 0 1,255
Depreciation of intangible and tangible fixed assets 136,869 140,702
OperatingLease Rentals 1,180 6,272
144,799 153,229

Note 11: Auditors Remuneration

The Auditor’s remuneration amounts to an audit fee of £6,750 (2020: £5,000).

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THE FOUNDATION FOR ART AND CREATIVE TECHNOLOGY

Notes to the Accounts Year ended 31st March 2021

Note 12: Trustees’ and key management personnel remuneration and expenses

None of the trustees (or any persons connected with them) received or waived any remuneration during the year (2020 - £Nil).

Travel expenses totalling £Nil (2020 - £Nil) were reimbursed to trustees during the year.

Note 13: Staff Costs 2021 2020
£ £
Staff Costs for the Year were as follows:
Salaries and Wages 673,908 648,851
SocialSecurity Costs 56,779 53,249
Defined Contribution PensionCosts 13,648 12,221
744,335 714,321
2021 2020
Number Number
The Average Number of Employees on a headcount basis were as follows:
Fundraising andDevelopment 2 2
Direct CharitableActivities 12 14
CommercialOperations 4 3
SupportActivities 10 12
Casual Staff 10 10
38 40
The number of employees who received total employee benefits(excludingemployer
pension costs)of more than £60,000 is as follows:
2021 2020
Number Number
£60,001to£70,000 0 1
£70,001to£80,000 1 0

The trustees consider the key management personnel to be the Chief Executive, together with the Head of Operations and the Head of Programme. The total amount of employee benefits received by key management personnel in the year was £164,072 (2020: £101,955).

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Notes to the Accounts Year ended 31st March 2021

Note 14: Tangible Fixed Assets Note 14: Tangible Fixed Assets
Group and Company Leasehold
premises		 Lease
Improvement
s		 Exhibitions
and
collaboration
s equipment		 Film and
video
equipment		 Office and IT
Equipment		 Total
£ £ £ £ £ £
Cost or Valuation
As at 31/03/2020 9,198,165 209,731 182,546 360,252 125,890 10,076,584
Additions 0 0 12,504 0 0 12,504
Disposals 0 (3,458) (148,617) (262,336) (53,335) (467,746)
As at 31/03/2021 9,198,165 206,273 46,433 97,916 72,555 9,621,342
Depreciation
As at 31/03/2020 5,548,165 108,806 159,938 359,767 104,061 6,280,737
Charge for theperiod 90,000 21,663 6,413 440 10,780 129,296
Disposals 0 (3,458) (147,381) (262,291) (51,719) (464,849)
As at 31/03/2021 5,638,165 127,011 18,970 97,916 63,122 5,945,184
Net Book Value
As at 31/03/2020 3,650,000 100,925 22,608 485 21,829 3,795,846
As at 31/03/2021 3,560,000 79,262 27,463 0 9,433 3,676,158

The estimated value of the land included in the leasehold’s premises that is not being depreciated is £500,000 (2020: £500,000).

Note 14 continued: Intangible Fixed Assets Note 14 continued: Intangible Fixed Assets
Group and Company Intangible
Assets
£
Cost or Valuation
As at 31/03/2020 37,870
Additions 0
Disposals 0
As at 31/03/2021 37,870
Depreciation
As at 31/03/2020 18,935
Charge for theperiod 7,574
Disposals 0
As at 31/03/2021 26,509
Net Book Value
As at 31/03/2020 18,935
As at 31/03/2021 11,361

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Notes to the Accounts Year ended 31st March 2021

Note 15: Fixed Asset Investment
The investment of £1 represents the whole of the issued share capital of FACT TradingLtd,a subsidiary
companywhich manages the commercial activities within the FACT Centre. The companyis currentlydormant.
Subsidiary Company 2021 2020
£ £
Turnover 0 63,272
Cost of Sales 0 61,077
Gross Profit 0 2,195
Administration Expenses 0 2,195
Gift to Charity 0 0
Net Profit(Loss)before Taxation 0 0
Taxation 0 0
Net Profit(Loss)after Taxation 0 0
Current Assets 7,115 12,797
Creditors Due within One Year 6,309 11,991
Total Net Assets 806 806
Note 16: Debtors Group Group Company Company
2021 2020 2021 2020
£ £ £ £
FeesReceivable 41,571 182,832 41,571 170,967
Grants andAccruedIncome 109,178 226,463 109,178 226,463
Other Taxes 16,682 (7,216) 18,164 (2,049)
Amounts owedfromGroup Undertaking 0 0 4,827 17,948
Other Debtors 0 0 0 0
Prepayments 30,153 64,485 30,153 64,485
197,585 466,564 203,893 477,814
Note 17: Creditors Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Trade Creditors 57,089 23,767 57,089 34,892
Other taxation and social security 14,241 13,838 14,241 13,838
Accruals 25,108 5,774 25,108 5,774
Amounts owed to GroupUndertaking 0 0 0 0
Social InvestmentLoan 15,649 14,593 15,649 14,593
BounceBack Loan 2,500 0 2,500 0
Other Creditors (359) 2,491 (359) 2,491
Grants and deferred income 301,752 290,103 301,752 290,103
415,981 350,567 415,981 361,692

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Notes to the Accounts

Year ended 31st March 2021

Note 18: Amounts falling duegreater than oneyear Note 18: Amounts falling duegreater than oneyear
Group Group Company Group
2021 2020 2021 2020
£ £ £ £
Elaine RileyBursaryFund 3,500 3,500 3,500 3,500
Bounce Back Loan 47,500 0 47,500 0
Social Investment Loan 5,475 21,124 5,475 21,124
56,475 24,624 56,475 24,624
Maturityof Debt:
Amounts fallingdue:
- in oneyear or less 18,149 14,593 18,149 14,593
- between one and twoyears 15,475 15,649 15,475 15,649
- between two and fiveyears 37,500 5,475 37,500 5,475
71,124 35,717 71,124 35,717

The social investment loan is a £70,000 loan issued in August 2017 with a five-year repayment term. It is an unsecured loan with a 7% interest rate.

Note 19: Operating Lease Commitments Note 19: Operating Lease Commitments Note 19: Operating Lease Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
2021 2020
£ £
Within one year 1,180 3,099
Two to five years 374 3,173
1,554 6,272
Note 20: Deferred Income
£
As at 1st April 2020 290,103
Additions duringtheyear 159,648
Amounts released to income (147,999)
As at 31st March 2021 301,752

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Notes to the Accounts Year ended 31st March 2021

Note 21: Accrued Funding Commitment
£
As at 1st April 2020 226,463
Additions duringtheyear charged to income 60,150
Amounts released to income (177,435)
As at 31st March 2021 109,178

Note 22: Contingent Liabilities

Capital Grants

Grants may be repayable in certain circumstances for example in the event that the building is not used as an arts centre for public benefit or if all the conditions attached to any grant have not been met in full.

In addition, The Arts Council of England has taken a fixed charged over the building (charge registered 5th January 2001) and a floating charge over the other assets of the charity. The terms of a grant provided by the Arts Council for England prohibit the charity from disposing of its interests in the building without their prior consent.

The trustees do not expect any liability to repay grants to crystallise and therefore no provision is made.

Note 23: Lease with City Screen Liverpool

FACT has granted a 25-year lease to City Screen Liverpool Limited, a wholly owned subsidiary of Cineworld Group plc, to let part of its property on a profit-sharing rent arrangement. The lease began in February 2003, when the FACT Centre opened. Under the terms of the lease, City Screen Liverpool Ltd must provide a cultural cinema programme at the FACT Centre. It is due to come to an end in February 2028.

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Notes to the Accounts

Year ended 31st March 2021

Note 24: Fund Reconciliation
Balance Incoming Resources Transfers Balance
Unrestricted Funds 31/03/2020 Resources Expended 31/03/2021
as restated
£ £ £ £ £
Group
General Funds 201,295 1,596,659 1,416,282 (290,075) 91,597
Desginated Funds 0 0 0 290,075 290,075
201,295 1,596,659 1,416,282 0 381,672
Company
General Funds 200,490 1,596,659 1,416,282 (290,075) 90,792
Desginated Funds 0 0 0 290,075 290,075
200,490 1,596,659 1,416,282 0 380,867
Balance Incoming Resources Transfers Balance
Restricted Funds 31/03/2020 Resources Expended 31/03/2021
£ £ £ £ £
Group and Company
Exhibitions & commissions 0 49,054 49,054 0 0
Learningand Participation Programme 0 4,374 4,374 0 0
Other Income 0 58,357 58,357 0 0
Capital Grants 3,664,374 0 95,240 0 3,569,134
3,664,374 111,785 207,025 0 3,569,134

Restricted grants represent amounts received from various funders to support particular projects, all of which having been expended during the year.

During the year the trustees designated £240,000 of unrestricted reserves for future capital expenditure needs. This is for essential works to maintain the FACT building as a welcoming, accessible, safe and efficient building. Planned capital works include upgrades to public toilets, creating an education space, and installing an LED window that can showcase artist works and increase the visibility of the building. A further £50,075 was also designated towards supporting artist residencies.

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Notes to the Accounts Year ended 31st March 2021

Note 25: Analysis of net assets between funds Note 25: Analysis of net assets between funds
Fund balances at 31stMarch 2021arerepresented by:
Unrestricted
funds		 Restricted funds Total
Group £ £ £
Fixed assets 118,385 3,569,134 3,687,519
Cash 538,159 0 538,159
Social InvestmentLoan (21,124) 0 (21,124)
BounceBack Loan (50,000) 0 (50,000)
ElaineRileyBursaryFund (3,500) 0 (3,500)
Other current(liabilities)/assets (200,247) 0 (200,247)
381,672 3,569,134 3,950,806
Company
Fixed assets 118,385 3,569,134 3,687,519
Investments 1 0 1
Cash 531,044 0 531,044
Social InvestmentLoan (21,124) 0 (21,124)
Bounce Back Loan (50,000) 0 (50,000)
Elaine RileyBursaryFund (3,500) 0 (3,500)
Other current(liabilities)/assets (193,939) 0 (193,939)
380,867 3,569,134 3,950,001
Note 26: Reconciliation of net movement in funds to net cash flow from operating activities Note 26: Reconciliation of net movement in funds to net cash flow from operating activities Note 26: Reconciliation of net movement in funds to net cash flow from operating activities Note 26: Reconciliation of net movement in funds to net cash flow from operating activities
2021 2020
£ £
Net income(expenditure)foryear 37,869 (41,621)
Depreciationof fixed assets 136,870 140,704
(Profit)/loss ondisposalof fixed assets 2,897 0
(Increase)/decreaseindebtors 268,979 (45,432)
Increase/ (decrease)in creditors excludingloan repayments 109,127 (60,843)
Net cash flow from operatingactivities 555,743 (7,192)

Note 27: 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 in contributing £1 each.

Note 28: Pensions

The company operates a number of money purchase pension plans on behalf of the employees. The assets of the scheme are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the fund and amounted to £13,648 (2020: £12,221).

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Notes to the Accounts Year ended 31st March 2021

Note 29: Related Party Transactions

The company is controlled by its directors whose names are shown on page 1.

The charity has taken advantage of the exemption in Section 33 of FRS 102 from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared.

There were no other related party transactions during the year, nor any outstanding balances at the year end.

Note 30: Prior Year Comparative Statement of Financial Activities

Unrestricted
Funds		 Restricted Funds Total 2020
as restated as restated
Income from: £ £ £
Donations andlegacies 1,133,681 0 1,133,681
Charitable activities 358,233 184,349 542,582
Othertrading activities 33,414 0 33,414
Other income 0 0 0
Total income 1,525,327 184,349 1,709,677
Expenditure on:
Raisingfunds 153,886 0 153,886
Charitable activities 1,317,823 279,589 1,597,412
Total expenditure 1,471,708 279,589 1,751,298
Net income/(expenditure) 53,619 (95,240) (41,621)
Reconciliation of funds:
Total funds brought forward 147,676 3,759,614 3,907,290
Total funds carried forward 201,295 3,664,374 3,865,669

Prior Period Adjustment

In accordance with the Charities SORP (FRS 102) income must only be recognised to the extent that the charity has provided the specified services as entitlement to the grant only occurs when the performance conditions are met. In a prior period, the charity has incorrectly recognised income of £47,268 in respect of funding where the grant has performance related conditions and therefore a prior period adjustment has been processed to correct this. The adjustment has had the effect of reducing closing unrestricted funds at 31 March 2019 by £47,268.

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