THE MAC IMETROPOUTAN ARTS CENTRE (COMPANY LIMITED BY GUARANTEE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Contents Page Reference and Administrative Details Trustees. Report (including the Strategic Report) Independent Audit Report 9-12 statement of Financial Activities 13-14 Balance Sheet 15-16 Statement of Cash Flows 17 Notes to ts Financial Statements 18-31
THE MAC (METROPOLITAN ARTS CENTREI IA COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 REFERENCE AND ADMINISTRATIVE DETAILS Trustees Andrew Cowan (resigned 20 March 2023) Colm Devine David Gavaghan (resigned 23 June 2023) Ray Hutchinson (Chairman) Louise O'Boyle Karen Shaw (resigned 14 August 2023) Dorothy Wilson Kim Spence Reglstered offlce 10 Exchange Street West Belfast BT12NJ Solleltors Edwards & Co. Sollcitors 28 Hill St Belfast BT12L4 Bank Ulster Bank Limited 11-16 Donegall Square East Belfast BT15UB Reglstered audltors Harbinson Mulholland Centrepoint 24 Onneau Avenue Belfast BT2 8HS Recognlsed as a charlty by HM Revenue and Customs under number XR26229 Company number N1022945 Charlty reglstration number NIC100808
THE MAC IMETROPOLITAN ARTS CENTREI {A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES, REPORT (including the Strategic Report) The trustees, who are also directors for the purFrf)ses of company law, present their report and the financial statements of the company for the year ended 31 March 2023 1. Structure, Governance and Management Governlng Document The company was incorporated on 26 July 1989 as The Old Museum Arts Centre and changed its name to The MAC (Metropolitan Arts Centre) on 14 October 2010. The MAC (Metropolitan Arts Centre) is a company limited by guarantee with charitable status and Is registered under company number N122945. It is accepted as a charity by the Inland Revenue under reference XR26229. The company has been registered with the Charity Commission for Northern Ireland from 3 November 2014 under registration number NIC100808. The charitable objective of the company as stated in its Articles of Association is.. "the advancement of education in Northern Ireland in relation to the arts and in particular by the provision of a centre for use in instruction in the various arts (visual, performing, musical and literary) and which may also be used for training in any such activities Of for the performances, readings or exhibits and so that the policy governing the use of the ¢8ntre shall not discrimlnate on the grounds of religion, political opinion, race, colour, ethnic origin, sex or age." There have been no amendments to the governing documents in the year. Governance Structure The MAC (Charity) Board is comprised of up to 15 trustees who meet at least 4 limes per year. The trustees are also directors of the company for the purposes of company law. The term of office for trustees is 4 years, th the option to serve a maximum of 2 terms. The Board's key responsibilities include setting out the vision, mission and values of the MAC, agreeing the strategy to deliver the vision and mission, agreeing th8 charity's governance structur8 and policies and ensuring the protection of the capital asset. The Charity has established a wholly owned subsidiary, the MAC Trading Company Ltd {TradeCo), a company Ilmlted by shares which has a seNice level agreement with the Charity which provides a licence to Tradeco to carry out artistic programmes and ancillary trading in the building and sets out the commercial relationship beeen the two companies. Any profits are gifted to the charity in their entirety. The Board has set out the functions of sub-commitlees, officers, the chief executive and other staff In clear delegated authorities and monitors their performance. In carrying out their responsibilities, trustees remain mindful oftheir commitment to upholding the values of accountability to stakeholders, probity and transparency. Sub<ommittees Audit and RisklFinance and Remuneration and Nominations sub-committees are in place to deal with specific issues as required. The Audit and RiskJFinance sub-committee meets monthly with at least 4 of the meetings each year being audit and risk focussed. All members of the sub-committee are non*xecutive directors. The sub-committee is chaired by the Charity Treasurer who has significant, recent and relevant financial experience. The sub- committee includes fv40 other members from the Boards, neither of whom is the Chair of the Charity. The Remuneration and Nominations sub-committee meets as required on an ad hoc basis. All members of the sub-committee are non-executive directors. The sub-committee is chaired by the Charity Chairman, includes the Chairman of Tradeco and at least two other members drawn from Ihe Charity Board one of whom has significant HR skills and experience.
THE MAC (METROPOLITAN ARTS CENTREI IA COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES, REPORT (Including the Strategic Report) {CONfD) 2. Objectives and Activities The MAC aims to contribute to the ongoing transformation of Northern Ireland through the creation of, participation in and appreciation of outslanding art. We Seek to achieve this overarching goal by supporting artists in the creation of excellent art and by delivering programme5 which make this art accessible to as many people as possible. Our artistic programme aims to entertain. connect people to art, and address social issues relevant to the people we work with. and the peop18 of Northern Ireland. In 202212023 we delivered a curated programme of artistic events across (i) Visual Art, (li) Creative Learning & Engagement and (iii) Live Events which attracted and inspired over 220,000 visitors. During this year the MAC brought internationally acclaimed artists to Northern Ireland to share their athork with local people, at the same time as platforming emerging, mid-career and acclaimed local artists. We worked with national partners and communities to explore social inequalities and injustices through art and creativity. As we continued growing back audiences post covid, the MAC worked on a revised marketing and audience development plan. This strategy aimed to deepen relationships with audiences who had already re-engaged since 2020, but also aimed to reengage a large proportion of past bookers who had not yet revlsited. Our exciting programme of events also gave opportunities to continue to attract new audienc8S to the MAC. In discussing these challenges we looked particularly at the MAC'S strategic prlorlties of Imaglnatlon, Soclal Change and Belfast and what these could mean for audiences. We developed a brand lead marketing CAmpaign that would underpin marketing and communicats'ons into 2023124 and beyond. This research highlighted the importance of the building itself and the 'space' that the MAC represented for people, whether for art, community, time to think or to work. It encouraged us to think of a wider view of the MAC, aligning with our new strategic vision and promoting not only the artistic programme but the social, creative, and transformative elements of the organisation itself. An overview of 22123 The MAC has been rebuilding audiences after the disruption caused by Covid, and we anticipated this would take a number of years to return to pre-covid levels. In 2022123, our number of people who made a booking each year was back to pre-pandemic level$, standing at 14,618 bookers. This is number of individual bookers and not number of tickets. There is still a long way to go with rebuilding and sustaining ticket sales at pre-pandemic levels. Annual footfall for 2022123 was 220,000, and we moved from a 5 to 6 day per week opening from July 2022. Our aim is to strengthen the MAC'S position. so it continues to be a vibrant civic space where people can access, and participate in brilliant art. The MAC Is In the business of imaginatlon We valu8 creativity on our stages and galleries and in everything we do.
THE MAC {METROPOLITAN ARTS CETrifRE) (A COMPANY LIMITED BY GUARANTEE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES, REPORT (Including the Strateglc Report) ICONT'D Vlsual Art In 2022123 the MAC presented exhibitions which created significant profile-raising opportunities for artists at critical stage of their careers as well as curating exhibitions which platfonned emerging artists practices here in Northem Ireland. In addition to this developmentsl work the MAC continued to curate major presentstions of intemationally renowned artists with huge public appeal. Our programme opened with an exhibition across all three of our galleries by Scottish artist Clalre Barclay: Thrum ran from 15 April 2022 - 3 July 2022. Claire Barclay is a visual artist recognised for producing large-scale sculptural installations created in response to specific contexts. Her works are immersive sensory experiences that explore our interactions with materials and functionality, by combining formal elements that evoke thinking around the °psychological relationships behmeen human beings and the objects that we live with and produce.. In this exhibition Barclay includes a series of tactile sculpturdl environments, where large-scale forms, made predominantly from fabrics and metals, 'suggest textile narratives and explore our complex re18tionships with cloth.. Historical connections beeen the West of Scotland and Northem Ireland have bacome a focus while evolving the arOrkS. Thls exhibition was realised in partnershlp with Stephen Frledman Gallery, London. Thls was followed by a major exhibitlon by Ron Mueck between 29 July- 5 Nov 2022. This was the first exhibition of Mueck's work in Ireland and brought together seven of his key works including Dead Dad, 1997 and his monumental work In Bed, 2005. Ron Mueck's sculptures each reflect an inner world of private feelings with unsettling power. The artist's intimate, understated meditations on universal experienc8s, of compassion, vulnerability, fear and loss, draw each viewer to their own reflection. This exhibition was realised in partnership Mueck's gallery Thaddaeus Ropac London & Parls and with loans from The Fondation Cartier pour I'Art Contemporain as well as private lenders. We énded the year with New Exlts - 10 Years of Palntlng Shows an exhlbition curated by Dougal McKenzie & Hugh Mulholland which ran from 9 Dec 2022 - 26 Mar 2023. New Exits whilst set within the context of the many significant painting exhibitions the MAC has presented sinc8 Its inception, was primarily an opportunity to draw attention to and celebrate the painting practices that have emerged and continue to fiourish through the woth of graduates of the BA and MFA Fine Art courses at Belfast School of Art since 2012. The exhibition acknowledged the close relationship and interdependencies of the Belfast School of Art and the MAC and how our proximity to each other has informed our work and contributed to our understanding of what it means to be a contemporary painter today. Llve Events 2022123 saw a significant change from pre-covid MAC Live Events programme budget levels, which were reduced by 550/0 from 2019, markedly impacting producing, co-producing, and presenling opportunities. Nevertheless. the MAC sought to present an artistically ambitious, innovative, and balanced core programme alongside strategic Festivals and likeminded artistic partners who co-presented or hired the theatre spaces. The programme covered a dlverse range of art forms presented in collaboration with local, national, and intemational partners with programming choices reflecting contemporary artistic practice, sectoral, cultural, political, and social issues comprising new and extant work from emerging and estsblished artists and organisations.
THE MAC (METROPOLITAN ARTS CETrifRE) (A COMPANY UMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 IMRCH 2023 TRUSTEES, REPORT lincludlng the Strategic Report) (CONT'D) The programme of work and associated schemes contained a practical commitment to the development of artists and companies across all live event disciplines, at every stage in their career, providing a platfomi for Nl based artists to develop and present their work. Simultaneousty. the MAC engaged with and presented work from the national and intemational arena. Featuring highly was the presentation of theatrical work produced and centred in and of the Belfast and Northern Irish experience. Two F)opular and well received Christmas theatre productions were also Nl produced The family focused Cinderella. co-produced with intemationally acclaimed Nl based children's theatre company CahootsNI and former Dery Girl Ma, Tara Lynne O'Nelll and Chrls Robinson lifted adult spirits with On the Shelf. In contemporary dance we presented intemationally acclaimed Political Mother by the Hofesh Shechter Company. Dance training opportunities were provided through the Akram Khan Summer Intensive and by DU Dance's Unanimous. Comedy at the MAC included Gearoid Farrelly, Emer Magulre and Jen Brlster. In spoken word, Stephen James Smith presented Midnight Mango as part of Belfast Pride. Nl based music talent also featured heavily with a dramatically staged concert by Kati• Riehardson/Hox Hue entitled Lucent with over 15 musicians onstage. A re-imagining of Nell Young's Harvest, led by Donal Sculllon, featured a band of 12 musicians. Duke Speclal and Friends staged It Was Only a Dream featuring seven musicians. Acclaimed guitarist Colln Reld perfomied Acmss the Fields and the Ulster Touring Opera presented Rosslni's The Barber of Sevllle. A particular highlight was the MAC prodUd Derry Glrls Reunion, featuring interviews with Bafta wlnning writer Lisa McGee and members of the cast, which, served an important purpose by fundraising and raising awareness of the wider work by the MAC Creative Leaming Team and Associate Partners. The MAC supported the development of Northem Irish artists through schemes providing space, funding, and professional support. Through Space to Create, the MAC provided 40 Ilve event artlsts wlth over 70 days of free space to facilitate the development of new work. Alice Malseed. Catherlne Rees, and Cllodhna McAllisterwere our three HATCH artists, who along with Artlst in Resldence, internationally renowned pianist, Ruth McGinley. were provided with bursaries, free workspaces in venue and mentoring and advice from MAC staff and associates. The MAC also presented a significant number of multi-discipllnary art form events as part of the Belfast International Arts Festival 60th anniversary, the Beast Children's Festival 25th anniversary and the Northern Ireland Science Fests'val 10th anniversary programmes. Other Festivals included the Outburst Queer Arts, Belfast Pride, and Belfast Media Festivals. Over the summer months the MAC welcomed youth and community theatre productions from companies such as New Lodge Arts, The Flax Trust, Belfast School of Perfoming Arts. and Ravara Productions. The MAC is In the buslness of soclal change We will work collaboratively and creatively with people who live with the worst effects of inequality and division on the issues that matter to them. Creatlve Learnlng & Engagement The MAC Creative Leaming & Engagement programme focuses on three main areas". (i) MACtivate addressing social and political inequalities with people who have lived experience, (li) Growing Up at the MAC giving children and young people access to appreciate, and love the arts. (iii) Universlty Partnerships enabling international student-artists to learn from Northern Ireland's experience of arts and peacebuilding.
THE MAC (METROPOLITAN ARTS CENTRE) {A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES, REPORT (Including the Strategic Report) {CONT'D) (i) MACtivate collaborates with five Associate Partners and the communities they serve by co-designing programmes which create opportunities for personal, and societal change. Our Associate Partners are.. Action Mental Health: Changes the lives of those living with mental ill health. Participation & Practice of Rights {PPR): Promotes human rights for people in the asylum, system, those living in housing stress, and people living with mental ill health. Extern: Supports people impacted by homelessness, suicide & addiction. Alliance for Choice: Campaigns for reproductive rights and bodily autonomy. The Ralnbow Project: Supports LGBTQIA+ people to improve well-being. During 202212023 we commissioned four artists to collaborate with our Associate Partners to explore the most pressing issues in our society. The outcomes will be presented during our participatory exhibition At Thg T8ble in April- July 2023. Socially engaged artist Thomas Wells collaborated with The Ralnbow Project, and the LGBTQIA+ community to co-design and create a new queer arts publication called Sam Eden Two. Visual Artist Kerrle Hanna collaborated with people through Actlon Mental Health exploring Northern Irelands current menlal health crisis. Collectively they designed a a series of illustrations which were presented as public billboard campaign during Mental Health Awareness week in May 2023. Multidisciplinary creative production company Dumbworld collaborated with Partlclpatlon and the Practice of Rights working with people in the asylum syslem, mental health activists and people living in housing distress. Together they developed Future Garden which is a speculative project of co-curation imagining a future garden for the Mackie's brownfield site in Belfast. Artist and activist Khaled Barakeh collaborated with people living in the asylum system by working with Anaka Womens Collective and Partlclpatlon and the Practlce of Rlghts Lift the 8an campaign which promotes the right for people in the asylum system to work. This commission wlll form part of a socially 8ngaged exhibition called At The Table which at the MAC in April-July 2023. Our annual programme also Included ctrdesigning opportunities to engage in the arts and accessing the MAC. For example, we host weekly creative workshops for women living in the asylum system who have fled conflict through Partlclpatlon and the Practlce of Rlghts. Actlon Mental Health clients attend weekly artlwellbeing workshops using our exhibitions as inspiration. We delivered an annual programme with The Ralnbow Project hosting queer set-dancing and Qulture Club visual art sessions. We programmed events and workshops with Alllance for Cholce addressing reproductive rights for women, trans-people and people with di58bilities. lil) Growin with the MAC - Children, Young People and Famllles We hosted weeklylseasonal workshops and events facilitated by artist-educators including where children, school-groups and families explored art in the MAC exhibited in our galleries and on our stages. Young people participated in Fly the Flag which is a unique collaboration between arts organisations and human rights charities that celebrates and reminds us of the human rights we all share. The project was co- produced by Fuel, the MAC the National Theatre, the National Theatro of Scotland and the National Theatre Wales. The lead artist for the UK-wide project was Jenny Sealey, Artistic Director of Graeae Theatre and a champion of disability inclusion, and associate artists Paula Clarke and Finn Kennedy who led this yearfs project which focused on Article 20 of the UDHR.. Everyone has the right to freedom of peaceful assembly and association. A film has been created tttat documents the reactions of young people to the right to protest, which was released on 1 Oth December 2022 on International Human Rights Day.
THE hlAC IMETROPOUTAN ARTS CENTRE) (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATElaENTS FOR THE YEAR ENDED 31 hlARCH 2023 TRUSTEES, REPORT (Including the Strategic Report) (CONT'D) (iii} Universit I Creative Partnershi We co-designedldelivered a 3-month module for Intemational Masters Artist Educator students undertaking masterfs degree at ArtEZ Universlty Netherlands. Twelve international students from the Netherlands were based in at the MAC learning about arts and peacebuilding, and their creative agency. The students undertook community-based artist-residencies throughout Belfast in organisations. This year, the internationally acclaimed dance company Akram Khan Company (AKC) hosted a Summer Intensive from 15-20 August. The MAC worked in partnerships with AKC and Theatre and dance Nl. Northem Ireland's leading support organisation for Theatre and Dance. The one-week immersive training programme enabled 30 emerging dancers to learn with AKC team. The MAC Is In tha buslness of Belfast We will help build Belfast's reputation as on8 of the vrforld's most creative cities. The critical value of social arts spaces in clties, placemaklng aspirations has been w811 researched and articulated internationally and has been one of the charity's key functions in the period. The MAC'S social, economic and cultural impact Iplacemaking's main considerations) have been evidenced through a series of independent reviews. Most recently it was confirmed by an external team of independent consultants that the MAC made an economic contribution of £14.8M to the wider economy in 2019120. The MAC is one of Northern Ireland's iconic cultural landmarks and is a valuable capitsl asset which the Board of Trustees and MAC team protect, maintain and preserve. Each year the building is used by, and visited by thousands of people thefOre it is our responsibility to ensue all elements of the building are serviced, maintained and safe for everyday use, and protected for the long-term. The MAC continues to review its sustainability policy. This year we worked in partnership with Queen's University to facilitate placements for Msc Leadership for Sustsinable Development students. Through thi8 partnership the MAC is learning the most current processes to ensure we care for the environment and contlnue to be sustainable. This year we installed an energy monitoring system enabling us to monitor gas, electric and water usage. We delivered energy saving projects which ensure the MAC plant is turned off as soon as the building is closed. We localised control of our air conditioning with the aim of reducing usage. Publlc funding and sustalnabillty In January 2023, the MAC launched its US Friends of the MAC and UK Corporate Friends of the MAC schemes. The US Friends was promoted at an event in New York City at the Dead Rabbit bar with the support of Nl Bureau with a number of significant donations received. In February 2023 the MAC hosted its first public Friends of the MAC fundraising event Dgrry Girts.. The Reunn. UK Corporate Friends of the MAC scheme has been highly successful to date. Public Fundin Our core funders- Arts Council of Northern Ireland and Belfast City Council continue to support us enabling us to deliver our mission and vision. Trusts and Foundations Vve are grateful to the Trusts and Foundations who support us. 1pth their support we have work with hundreds artists and created opportunities for thousands of people to participate and access great art, and conversations.
THE MAC (METROPOLITAN ARTS CEKfREI IA COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES, REPORT lincludlng the Strategic Report) (CONT'D) Trustees, responslbllltles statement The trustees (who are also the directors of the MAC (Metropolitan Arts Centre) for the purposes of company law) are responsible for preparing the Trustees, Report and 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 ststements for each year which give a true and fair view of the state of affairs of the group and charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to= select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP. make judgements and estimates that are reasonable and prudent. stste whether applicable UK accounting standards have been followed, subject to any material departure5 disclosed and explained in the financial statements,. and prepare the financial statements on the going concern basis unless it is inapproprlate to presume that the Charity will continue in buslness. The trustees are responsible for keeping proper accounting CordS that disclose with reasonable accuracy at any time the financial position of the group and charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and charitable company and hence taking reasonable steps for th8 prevention and detection of fraud and other irregularities. Disclosures of informatlon to auditors In so far as the trustee8 are aware at the time of approving our Trustees, Report.. there Is no relevant information, being Information needed by the auditor In connection wlth preparing their report, of which the group's auditor is unaware, and the trustees, having made enquiries of fellow directors and the group's auditor that they ought to have individually taken, have each taken all steps that helshe is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The Trustees, Report, including the Strategic Report, was approved by the trustees on 28th February 2024. By order of the trustees i J Ray Hutchinson Trustee Colm Devine Treasurer
THE MAC IMETROPOLITAN ARTS CENTREI (A COMPANY LIMITED BY GUARANTEE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MAC (METROPOLITAN ARTS CENTRE) Opinion We have audited the consolidated financial statements of The MAC (Metropolitan Arts Centre) for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities (including Income and Expenditure Account), the parent charitable company Statement of Financial Activities (including Income and Expenditure Account), the Consolidated Balance Sheet, the parent charitable company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes. These financial statements have been prepared under the accounting policies set out therein. In our opinion the financial statements.. give a true and fair view ofthe state of the group and the parent charitable company's affairs as at 31 March 2023 and of its surplus for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and . have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon 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 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. Material uncertalnty rolated to going concern In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 2 to the financial statements concerning the group and the parent charitable company's ability to continue as a going concern. Cashflow projections predict that expenditure will exceed income for the period ended 31 March 2024. These conditions, along with the other matters explained in note 2 to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the group and the parent charitable company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the group and the parent charitable company were unable to continue as a going concern. Conclusions rolating to going concern We have nothing to report in respect of the following matters in relation to which the ISAS (UK) require us to report to you where., the directors, use of the going concern basis of accounting in the preparation of the financial statements is not appropriate., or the directors have not disclosed in thè financial statements any identified material uncertainties that may cast significant doubt about the group and charitable company's ability to continue to adopt the going concem basis of accounting for a period of at least tWee months from the date when the financial statements are authorised for issue.
THE MAC (METROPOLITAN ARTS CENTREI (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MAC (METROPOLITAN ARTS CENTREI (CONT'D) Other Infomiation The directors are responsible for the other information. The other infomiation comprises the information included in the annual report, other than the financial statement5 and our auditor'5 report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstalements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that Ihere is a material misstatement of this other information, we are required to report that fact. INe have nothing to report in this regard. Oplnlons on other matters prescrlbod by the Companle$ Act 2006 In our opinion, based on the work undertaken in the course of our audit: the information given in the strategic report and directors, report for the financial year for which the financlal statements are prepared is consistent with Ihe financial statements., and the directors, report has been prepar8d in accordance wrth applicable legal requirements. Matters on whlch we aro requlred to report by exceptlon In th& light of the knowledge and understanding of the company and its environment obtsined in the course of the aLKlit, we have not identified any material misstatements in the directors, report. INe have nothing to report in respect of th8 following matters where the Companies Act 2006 requires us to report to you if, in our opinion.. • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us,. or the financial statement5 are not in agreement with the accountlng records and r8tums,' or certain disclosures of directors, remuneration specified by law are not made., or • we have not received all the information and explanations we require for our audit,. or Responslbllltles of dlrectors As explained more fully in the directors, responsibilities statement, the directors 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 directors 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 directors are responsible for assessing the company's abilty to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. 10
THE MAC IMETROPOLITAPI ARTS cEPRE) IA COMPANY LIMITED BY GUARANTEE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MAC (METROPOLITAN ARTS CENTRE) (CONT'D) Audltorfs responsibllltles for the audit of the flnancial ststements Our objectives are to obtsin reasonable assurance aboLrt whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs 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. A further description of our responsibilities for the audrt of the financial statements is located on the Financial Reporting Council's website at.. http'.IIMvw.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had Ihe appropriate competence, capabilities and skills to identify or recognise non-compliance wlth applicable laws and regulations., we identified the laws and regulations applicable to the company through discussions with directors andlor senior management, and from our commercial knoedge and experience of the sector,. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, tsxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence-, and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financlal statements to material misstatement, including obtaining an understanding of how fraud might occur, by: making enquiries of management as to where they considered there was susceptlbllity to fraud, thelr knowledge of actual, suspected and alleged fraud,. and considering the internal controls In place to mitigate risks of fraud and non-compliance with laws and regulations., To address the risk of fraud through management blas and override of controls, we: performed analytical procedures to identify any unusual or unexpected relationships. tested journal entries to identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias., and investigated the rationale behind significant or unusual transactions.,
THE MAC (METROPOLITAN ARTS CENTRE) IA COMPANY LIMITED BY GUARAKfEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MAC (METROPOLITAN ARTS CENTRE) (CONT'D) Auditorfs responsibilities for the audit of the flnanclal sL*ements (Cont'd) In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation., reading the minutes of meetings of those charged with governance- enquiring of management as to actual and potential litigation and claims., and reviewing correspondence with HMRC and the company's legal advisors., There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-complianc&. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Materlal misstatements that arise due to fraud can be hardar to detect than those that arise from error as they may involve deliberate concealment or collusion. 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 company's members those matters we are required to state to them in an audito 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 company and the company's members as a body, for our audit work, forthis report, or for the opinions we have fomied. Angela Craigan (Senior Statutory Auditor) for and on behalf of Harblnson Mulholland Chartered Accountants ststutory Auditors Centrepoint 24 Ormeau Avenue Belfast Co. Antrim Northem Ireland BT2 8H 281ila+ 12
THE MAC (METROPOLITAN ARTS CENTRE) IA COMPANY UMITED BY GUARANTEE) FINANCIAL STATEPJJENTS FOR THE YEAR ENDED 31 MARCH 2023 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME & EXPENDITURE ACCOUNT) 2023 Restricted Funds 2022 Restricted Funds Notes Unrestricted Funds Unrestrirte Total Total Funds Income and endowments from: Donations and legacies Investments Other trading activltles Other income 370,000 1,433,478 1,069 1,292,052 7,984 1,803,478 1.069 1,292,052 150,000 88 532,211 15,89) 2,356,783 2,506,763 88 532,211 15,890 Totsl 1,671,105 1,433,478 3.104,583 698,189 2,356.763 3,054,952 Expenditure on: Charitable 8Ctiviti8S Cost of raising funds: Commercial trading activities 548,486 1,754,242 2,302,728 229,108 2,404,807 2,633,915 1,090,554 1,090,554 475.527 475,527 Total 1,639,040 1,754,242 3,393,282 704,635 2.404,807 3,109,442 Net Incomellexpendlture) 32.085 (320,764) (288,699) (6,446) (48,044) (54,490) Gross transfers between funds Net movement in funds 32,065 (320,764) (288,699) (6,446) (48,044) (54,49)} Total funds brought forward 258,159 13,654,066 13.912.225 264,605 13,702.110 13,966,715 Total fund8 carried forward 290,224 13,333,302 13,623,526 258,159 13,654,066 13,912,225 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirnents for an income and expenditure account under the Companies Act 2006. The notes on pages 18 to 31 fomi part of these accounts. 13
THE MAC (METROPOLITAN ARTS CENTRE {A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME & EXPENDITURE ACCOUND OF THE CHARITY ALONE 2023 Restricted Funds 2022 Unrestricted Restricted Funds Funds Notes Unrestrided Funds Total Total Income and endowmonts from: Donations and legacies Investments Other trading adivities 370,000 1.069 209,482 1.433,478 1,803.478 1,069 209,482 150,000 88 72,574 2,356,763 2,506.763 88 72,574 Totsl 580,551 1,433,478 2,014,029 222,662 2,356,763 2,579,425 Exp•ndlture on: Charitable activities 548,486 1,754,242 2.302,728 229,108 2,404,807 2,633,915 Total 548.486 1,754,242 2,302,728 229,108 2,404,807 2,633,915 Net movement In fund• 32,665 {320,7641 1288,6991 {6,4461 148.044) 154,490) Gr088 tran•fern botween funds Net movement In fund• 32,665 1320,7841 (288,6991 16,4481 148,0441 154,4901 Total lund8 brought forward 258,159 13,654,066 13.912,255 264,605 13,702,110 13,966.715 Total fund8 Carrled forward 290,224 13,333,302 13,623,526 258,159 13,654,066 13.912,225 The ststement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with th8 requirements for an income and expenditure account under the Companies Act 2006. The notes on pages 18 to 31 form part of these accounts. 14
THE MAC (METROPOLITAN ARTS CENTREI (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 CONSOLIDATED BALANCE SHEET Notes 2023 2022 Flxed assets Intsngible assets Tangible assets 375 13,382.991 2,084 13,473 379 12 13,383,388 13,475 463 Current assets Stock Debtors Cash at bank and in hand 13,454 325,061 287,174 9,852 481,131 530,741 14 625,689 1,021,724 Credltorn: amounts falllng duo ono year 15 385,529 Net current assets 240,160 436,762 Total a8sets1888 current Ilabilltles 13,623,526 13,912,225 Funds Unrestricted funds Restricted funds 17 16 290,224 13 333,302 258,159 13,654,066 Total funds 13,823,526 13,912 225 The financi81 statements on pages 13 to 31 were approved and authorised for Issue by the trustees on 28th February 2024 and were slgned on their behalf by Ray Hutchinson Trustee Colm Devine Treasurer Company reglstratlon number: N1022945 The notes on pages 18 to 31 form part of these accounts. 15
THE MAC (METROPOLITAN ARTS CENTREI IA COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 CHARITY BALANCE SHEET Notes 2023 2022 Flxed assets Intangible asset5 Tangible assets Investments 375 13,382,991 750 13,473,379 12 13 13,383,367 13474130 Debtors Cash at bank and in hand 14 354,003 202 780 429,784 388 364 556,784 818,148 Credltor8: amounts falllng due one year 15 316 625 380,053 Net current a888ts 240,159 438 095 Total assets less curront Ilabllitles 13,623,526 13,912,225 Fund5 Unresiricted funds Restricted funds 17 16 290,224 13 333,302 258,159 13,654,066 Total fund8 13,623,526 13 912225 The financial statements on pages 13 to 31 were approved and authorised for issue by the trustees on 28th Febnjary 2024 and were signed on their behalf by Ray Hutchinson Trustee Colm Devine Treasurer Company reglstratlon number: N1022945 The notes on pages 18 to 31 form part of these accounts. 16
THE MAC (METROPOLITAN ARTS CENTRE) {A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 CONSOLIDATED STATEMENT OF CASH FLOWS 2022 Notes Cash flows from operating actlvltles Cash generated from operations 23 46,102 (417,525) Investlng activltles Purchase of tangible fixed assets Interest recelved (290,737) (154,3351 1,069 88 N•t cash (used In Investlng actlvltleg (289,6681 (154,247) Net Increasel (decrease) In cash and cash oqulvalents (243,5661 (571,772) Cash and cash equivalents of beginning of year 02 Cash and cash equlvalents at end of year Relatlng to: Bank balances and short temi deposits 17
THE MAC (METROPOLITAN ARTS CENTREI (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS Nature of organlsatlon The Charity is an incorporated company limited by guarantee with charitsble status. 11 is governed by a Memorandum and Articles of Association and the liability of each member is limited lo an amount not exceeding £1. The registered office is 10 Exchange Street West, Belfast. The subsidiary is a company limited by shares. A¢countlng pollcles Basls of accountlng These financlal statements have been prepared In accordance wlth the Cornpanies Act 2006 and "Accounting and Reportlng by Charities: Statement of Recommended Practice applicable to charities preparing their account5 Wlth the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021' (as amended for accounting periods commencing from 1 January 2016). The principal accounting policies, judgments and key sources of estimation uncertainty are set out below. The trustees consid8r that these accounting pollcles are suitable, have been consistently applied and are supported by reasonable and prudentjudgment and estimates. The MAC (Metropolitan Arts Centre) meets the definition of a public benefit entity under FRS 102. The financial statements are prepared in accordance with the historical cost convention. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. Group financlal statements These financial statements consolidate the results of the Charity and its wholly owned subsidiary The MAC (Metropolitan Arts Cenlrel Trading Co. Limited on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Accounts for the Charity alone has been presented on page 13. All financial statements are made up to 31 March 2023. Where necessary, adjustments ar& made to the financial statements ofsubsidiaries to bring the accounting policies used into line with those used by other members of the group. All intra-group transactions, balances and unrealised gains on transactions belmeen group companies are eliminated on consolidation. Unrealised losses are also eliminated unle5S the transaction provides evidence of an impairment of the asset transferred. Preparatlon of the accounts on a going concern basls The continued operation of the MAC 15 dependent on the ongoing support of its funders, Art5 Council of Northern Ireland IACNI) and Belfast Cty Council (BCC). The MAC was planned and built as a space that requires a certain level of public subsidy in order to provide the benefits it was built to deliver The financial performance for the year is set out in the Statement of Financial Activities on pages 11 to 12 and described in the Trustees Report. The charity's income exceeded expenditure within unrestricted resources by £32,065 for the year. This result increased unrestricted reserves from £258,159 to £290,224 at the year end. 18
THE MAC (METROPOLITAN ARTS CENTRE) {A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 RCH 2023 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) Accounting policies, (Cont'd Prèparatlon of the accounts on a golng concern basls (Cont'd) Despite substantial cost cutting, inflatlon and continuing uncertainty in the global economy has impacted our cost base significantly. As a resutt directors are forecasting an unrestricted deficit of £143,008 for the year ended 31 March 2024. The trustees are encouraged by the ext8nsive dialogue and closer working relatlonship with the MAC'S funders and look forward to continuing to work collaboratively towards deliverlng a sustainable break-even business model in 2024125. Whilst we are aware that there is uncertainty in relation to public expenditure plans, we have no better information than to forecast that our continued delivery of outcomes in excess of those in our funding contracts, and our turnaround of the business as per our agreements with our funders, will result in at worst stand-alone fundlng for 2023124. At the point of signing the accounts, there remains a great deal of unpredictability in the economy and the associated impact on consumer behaviour. The trustees recognise that these circumstances, coupled with the uncertainty in respect of continued funding from ACNI, represent a material uncertainty over going concern. The trustees consider that in preparing the financial statements they have taken into account all information that could reasonably be expected to be available and recognise that the circumstances described above represent a material uncertainty that casts doubt on the ability of the group and the parent charitable company to continue as a going concern. Nevertheless, having considered these circumstances, alongside proposals for future sustainability, the trustees have a reasonable expectation that the group and the parent charitable company will continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial stat8ments. Income and endowments (a) Donations and legacies Donations and legacies includes all incoming resources generated from gifts, donations and grants, and is recognised in full in the Statement of Financial Activits'es when receivable. Grants are credited to Incoming resources on the earlier of when they are received or when they are receivable, unless they relate to a specified future period, in which case they are deferred. Grants which have been restricted for use by the donor or which relate to capital expenditure are treated as restricted incorne and are credited to the Statement of Financial Activities when they are receivable and when all condrtions have been met. 19
THE MAC (METROPOLITAN ARTS CENTRE) {A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS ICONfD 1 Accountlng policlos (Cont'd) Income and endowments (b) Investments Investment income represents interest receivable during the year on bank deposits, (cl Other trading activities This includes income receivable for services provided, Incom8 from activltles undertaken to raise funds to undertake charitable activitie5, and income from the operation of the MAC. Expendltura (a) Charitable activities This comprises all resources applied by the Charity when working to meet its charitable objectives. This includes support costs allocated to activities on the basis of time spent on those activitl8S. (b) Commercial trading activities This comprises all resources applied by the Charity's wholly owned subsidiary in operating the MAC. (c) Governance costs Govemance costs include the costs of govemance arrangements which relate to the general running of the Charity. All costs are allocated between the expenditure categories on a basis designed to reflect the use of resources. Costs relating to a particular activty are allocated dlrectly- others are apportioned on a basis consistent with the use of resource5. Intanglble flxad assets Intangible assets comprise the cost8 associated with acquiring the liquor licence, and is valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in equal annual instalments of each assel over its estimated useful economic life of 5 years. Tangible flxed assets Tangible fixed assets are stated at cost less depreciation. The cost of fixed assets is their purchase cost, together with any incidental costs of acquisition, net of any VAT recoverable. Depreciation is calculated 50 as to write off the cost of tangible fixed assets, less their estimated residual values. over the expected useful economic lives of the assets concerned. The principal annual rates used for this purpose are.. Land and buildings Fixtures. fittings and 8quipment 20A per annum straight line -100h_ 25Ok per annum straight line 20
THE MAC {METROPOLITAN ARTS CENTREI (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEhlENTS FOR THE YEAR ENDED 31 RCH 2023 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) Accounting pollcles (Cont'dlmpalmient of fixed assets) At each reporting end date, the group and the parent charitable company review the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss {if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group and the parent charitable company estimate the recoverable amount of the cash-generating unit to which the asset belongs. Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenaver there is an indication that the asset may be impaired. Recognlsed impairmenl losses are reversed If, and only if, the reasons for the impairment10s9 have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of th8 asset (or cash-generatin9 unit) is Increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposit8 held at call with banks other short-term liquid investments with original maturities of three months or less and bank overdrafts. Flnancial assets The group and the parent charitable company have elected to apply the provisions of Section 11 'Basic Financial Instrument5, and Section 12 '0ther Financial Instruments Issues. of FRS 102 to all of its financial instruments. Financial assets are recognised in the group's and the parent charitable company's statement of financlal position when the group and the parent charitable company become party to the contractual provisions of the instrument. Financial assets are classified into specffied categorles. The classlfication depends on the nature and purpose of the financial assets and is determined at the time of recognition. Basic financial assets, which include trade and other receivables and cash and bank balances, are Inltially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Other financial assets classified as fair value through profit or loss are measured at fair value. Loans and receivables Trade debtor5, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables,. Loans and receivables are measured at amortised cosl using the effective interest method, less any impairment. 21
THE MAC (METROPOLITAN ARTS CENTREI IA COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS ICONT'D) Accounting policle5 (Cont'd) Interest is recognised by applying the effective interest rate, except for 5hort-term receivable5 when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective inlerest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition. Impaimient of financial assets Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impaimient at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss. DereC0gnitn of flnancial assets Financial assets are derecognised only when the contractual rights 10 the cash flows from the asset expire, or when it transfers the financial asset and substants'ally all tha rlsks and rewards of ownership to another entity. Flnancial Ilabllltias Basic financial liabilities are initially measured at transaction price, unless the arrangement constitutes financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Other financial liabilities classified as fair value through profit or loss are measured at fair value. Other financial Ilabllities Other financial liabilities, ar8 Initially measured at fair value, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method, wlth interest expense recognised on an effective yleld basis. The effectlve interest method is a method of calculating the amortised cost of a financial liabllity and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discoun15 estimaled future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition. Derecognition of financial liabilities Financial liabilities are derecognised when, and only when, the group'8 and parent charitable company's obligations are discharged, cancelled, or they expire. Employee beneflts The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the group and parent charitable company are demonstrably committed to terminate the employment of an employee or to provide termination beneffts. 22
THE MAC (METROPOLITAN ARTS CENTrE) IA COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS ICONT'D) Accountlng policles (Cont'd) Taxation As a registered charity, The MAC (Metropolitan Arts Centre) is not liable to either Income Tax or Corporation Tax, Fund accountlng The Charity has bNo types of funds for which it is spOnSible, and which require separate disclosure. Definits'ons of the funds are as follows.. (a) Restricted funds Grants, donations and other income received which are earmarked by the funder or donor for specific purposes. Such purposes are within the overall aims of the Charity. (b) Unrestricted funds Funds which are expendable at the discretion of the trustees, for the general purposes of the Charity. In addition, funds may be held in order to finance capital investments and working capital. Crltlcal accounting estlmates and Judgements In the application of the group's and parent charitable company's accountlng policies, the tTUStees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions a reviewed on an ongoing basis. Revisions to accounting estimates are COgnised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods Key sources of ostlmatlon uncertainty Going concem The trustees have prepared budgets and cash flows for a period of at least twelve months from the date ofthe approval ofthe financial statements. As explained more fully in Note 2 there is a material UnrtaintY regarding the group's and parent charitable company's ability to meet its liabilities as they fall due, and to continue as a going concern. Nevertheless, having considered the circumstances, the trustees consider it appropriate to prepare the financial statements on a going concern basis. Accordingly, these financial statements do not include any adjustments to the carrying amounts and classification of assets and liabilities that may arise if the group and parent charitable company are unable to continue as a going concern. Tangible fixed assets Tangible assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets are assessed annually and may vary depending on a number of factors. In reassessing asset lives factors such as maintenance programmes are taken into account. Residual value assessments consider issues such as the remaining live of the asset and the estimated value in use. 23
THE MAC (METROPOLITAN ARTS CENTRE) IA COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YUR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) Financlal performance of the Charity The consolidated statement of financial activities includes the results of the Charity's wholly owned subsidiary which operates the arts facility. The financial perfomance of the Charity alone is shown on page 14. Income and endowments 2023 Restricted Funds 2022 Unre81rlct8d Funds Unrestrlcled Funds Restricted Funds Total Total Donatlon8 and l•ga¢le• Arts Councll of Northem Ireland - Capital Works Arts Council of Northern Ireland Belfast City Council Grants Paul Hamlyn Foundation Ulster Gardens Covid large NAV scheme John Ellerman Garfield Weston Foyle Foundation Egmée Fairbaim Foundation Belfast Harfoour Soci81 Change Bank of Ireland Community Foundation British Council Fly the Flag Dormant Ac¢ounl8 other 25,064 1.246,426 25,064 1,246.426 150,000 75,000 30,000 131.933 1,170,903 131,933 1,170.903 150,000 150,000 150,000 150,000 75,000 30,000 150,000 50,000 35,700 696,248 20,000 100,000 50,000 35,700 696,248 20,000 100.000 100,000 100.000 20,000 120,000 10,000 3,950 5,500 3,000 3,000 1,650 9,888 20,000 120,IJOO 10,000 3,950 5,500 3,000 3,000 1,650 9,888 1.979 1.979 370 000 1433 478 1803 478 150 000 2 356 763 2 506.763 Investments Interest receivable 1,069 1,069 88 88 Other tradlng actlvltlo• Sponsorship Other income Gifts and donations Rental income Commercial lffjding operations 25,346 25,346 20,000 20,000 69,598 19,031 1,178.077 69,598 19,031 1.178,077 6,717 10,713 373,698 6,717 10,713 373,698 Government grant 121083 121,083 1292 052 1.292,052 532211 532.211 Other Income Theatre & Museum & Gallery tax relief 7.984 7,984 15,890 15,890 Total 1,671,105 1.433.478 3,104,583 698,189 2,356,763 3.054.952 24
THE MAC IMEfROPOLITAN ARTS CENTREI (A COMPANY UMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) Expenditure Analysis of expendlture Support other Direct Costs Costs 2023 2022 Charltable activltles Core costs Capital Project- The MAC 155,838 375 827 1,771,063 1,926,901 375 827 2,235,342 398 573 Total resources expended 1771063 2 302 728 2633915 Anatysis of support C08ts Charitable Activities Governance 2023 2022 Premises Financial costs Depreciation 145,738 752 381 125 145,738 4,802 381125 84,842 7,131 403 291 4,050 Total support costs 527 15 531665 Net Incoming resources 2023 2022 Net incoming resources are stated after charging.. Depreciation - owned assets Auditor's remuneration.. Audit of financial ststements of the group and parent charitable company Audit of the parent charitable company's subsidiary 381,125 403,291 4,750 4,750 There are no other material costs not already disclosed in notes 6 to 10. 25
THE IMC (METROPOLITAN ARTS CENTRE} IA COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS ICONT'D) Income from trading actlvltles The wholly owned trading subsidiary The MAC (Metropolitan Arts Centre) Trading Co. Limited is incorporated in Northern Ireland {company number N1604239) and pay5 all of its profits to the Charity under the gift aid scheme. Th8 MAC (Metropolitan Arts Centre) Trading Co. Limited operates the arts facility and all commercial trading operations carried on at The MAC (Metropolitan Arts Centre) premises. The summary financial p&rformance ofthe subsidiary alone is.. 2023 2022 Tumover Cost of sales Administration costs Distribution costs Other income 2,661,729 (710,972) (1,845,884) {33,699) 2,261,224 (731,429) (1,604,657) {39,441) 112054 Net profit Gift aided to the Charlty 71,174 (2,249) (Loss)Iprofit before tsxation Tax (15,890) Retained in subsidiary The assets and liabilities of the subsidiary alone vftre.. Total assets Total liabilitl8S 406,498 406,497 510,426 510,425 Total net asset8 Aggregate share capltal and reserves Employ•• Infom)atlon 202 Staff costs Wages and salaries Social security costs Pension costs 1,343,869 119,351 1,196.551 110,864 Average number of employees including trustees Employees earning between £60,000 and £70,000 The totsl arnount of employ8e benefits received by key management personnel in the period vrds £192,87012022.' £268,673). The Charity considers its key management personnel comprises ofthe Chief Executive, Commercial Director, Director of Finance and Corporate Services and Creative Director. 26
THE MAC (METROPOLITAN ARTS CENTRE) {A COMPANY LIMITED BY GUAFIANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) 10 Trustses, remuneratlon The trustees received no emoluments during the year. No trustee received reimbursement of exp8nses during the year. Intanglble flxed assets 11 Group Charitable Com an Cost At 1 April 2022 Additions 31,364 1,874 At 31 March 2023 Depreclatlon At 1 April 2022 Amortisatlon charged for the year 29,280 1,709 1,124 375 30,989 1.499 At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 375 2,084 375 750 12 Tanglble flxed assets Group and charltable company Land & Buildin Fittings & ment Total Cost At 1 April 2022 16,343,164 251,032 460,496 39,705 16,803,680 290,737 Additions Disposals 16,594,198 500,201 17,094,397 At 31 March 2023 Depreclatlon At 1 April 2022 Charge for year Released on disposal 3,088,593 330,237 241,688 50,888 3,330,281 381,125 3,418,830 292,576 3,711,406 At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 13.175,366 13,254,571 207,625 218,808 13,382,991 13,473,379 27
ThE MAC IMETROPOLITAN ARTS CENTREI {A COMPANY LIMITED BY GUAFIANTEE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS ICONT'D) 13 Invèstments The Charity holds one share of £1 in its wholly ovmed trading subsidiary The MAC (Metropolrtan Arts Centre) Trading Co. Limited, which is incorporated in Northern Ireland. This is the only share allotted, called up and fully paid. The activities and results of this company are summarised in note 8. 14 Debtors Amounts falllng dua wlthln one year: Group Charitable Company 2023 2023 2022 2022 Trade debtors Prepayments and accrued income other debtors 102,251 216,563 48,794 197,715 234 622 30,660 1,260 216,583 193,902 106 780 234 622 15 Creditors: amounts falllng duo wlthln one year Group Charitable Company 2023 2023 2022 2022 Trade creditors other tax and social security Accruals Other creditors Intercompany balance 96,806 7,000 110,023 171,700 144,693 201,304 92,921 146,044 28,645 26,792 4,650 4,707 55,635 39,379 1,218 19,549 226 477 289 626 28
THE MAC (METROPOLITAN ARTS CENTrE} (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 RCH 2023 NOTES TO THE FINANCIAL STATEMENTS ICONT'D) 16 Restricted funds of the Charlty Restated Balance Movement in 1 April resources 2022 incoming Movement in resources outgoing Transfer Balance between 31 March 2023 funds Flxed asset funds Capital Project Garfield Weston 13,449,066 205 000 55,063 {375,827) 205,000 205 000 13,333,302 Subtotal 13 654 066 55 083 375,827 13,333,302 Other net assets funds Core costs 1378415 1378415 Subtotal Total 13 654,066 1433,478 1,754 242 13.333,302 Flxed asset funds The fixed asset funds represent funds provided for the purchase of tangible fixed assets. The fund is represented by fixed assets and is reduced by the depreciation charge on the assets. 17 Unrestrlcted funds of the Charlty Net incoming resources for year Balance at 1 April 2022 Transfer btheen funds Total General reserve Designated - Garfield Weston 258,159 (47,434) 79,499 210,725 79,499 Totsl 258,159 32,065 290.224 29
ThE MAC (METROPOLITAN ARTS CEiifREI {A COMPANY LIMITEO BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 hlARCH 2023 NOTES TO THE FINANCIAL STATEMENTS (CONT'D 18 Analysls of nat assets between funds Tangible Fixed assets other net ass ts Total Restricted funds 13,337,302 13,333,302 Unrestrlcted funds 240 555 290 244 19 Related party transactlons Under the control of the Board of Trustees, the MAC Trading Co. Limited, o wholly owned subsidiary of the Charity, charged the Charity expenses of £1,500,000 (2022.. £1,900,000) and transferred to the Charity under Gift Aid a donation of £71,174 {2022'. £13,641 }. At 31 March 2023 a balance of £226,478 (2022.. £289,626) was owed by the Charity to the subsidiary. There were no other transactions or outstanding balances with related parties. 20 Contlngencles A portion of grants received may become repayable if the Charity fails to comply with the terms of letter of offer. 21 Corporatlon taxation The Charity is exempt from taxation in respect of income or capltal gains received. HM Revenue and Customs reference number XR26229. Its subsidiary is subject to corporation taxation on its income and capital gains. 22 Subsldlarles These financial Statements are separate company financial statements for The MAC Limited Details of the company'5 subsidiaries at 31 March 2023 are as follows.. Name of undertaklng Registered Nature of buslness Class of office shares held % Held Dlrect Indirect The MAC Trading Co. Limited As above Operation of arts facilities Ordinary shares 100 30
THE MAC (METROPOLITAN ARTS CENTRE) (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2023 NOTES TO THE FINANCIAL STATEMENTS (CONT'D) 23 Reconclllation of net movement In funds to net cash flow from operatlng activitie8 2023 2022 Net movement in funds for the year (288,699) (54,490) Depreciation & amortisation 382,835 404,990 Loss on disposal of tangible fixed assets 5,536 (Decrease)lincrease in creditors {199,433) (628,143) Decreasel(increase) in debtors 156,070 (135,478) Decreasel(increasel in stock (3,602) (9,852) Interest received 88 Net cash inflowl (ouffiow) from operating activities 31