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2023-03-31-annual-return

Charity Registration No. 102275

Company Registration No. NI039697 (Northern Ireland)

CATHEDRAL QUARTER ARTS FESTIVAL

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

CATHEDRAL QUARTER ARTS FESTIVAL

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees' Ms C Collins Ms C Hickey Ms N Chundur (Chair) Ms E McDermott Ms E DeDakis Mr S Donaldson Secretary Mr S Kelly Charity number 102275 Company number NI039697 Registered office Unit 8 Northern Whig House 3 Bridge Street Belfast Co. Antrim Northern Ireland BT1 1LU Independent examiner FPM Accountants Limited 1 - 3 Arthur Street Belfast Co. Antrim Northern Ireland BT1 4GA Bankers Bank of Ireland 4-8 High Street Belfast Northern Ireland BT1 2BA

CATHEDRAL QUARTER ARTS FESTIVAL

CONTENTS

Page
Trustees' report 1 - 9
Independent examiner's report 10 - 11
Statement of financial activities 12
Balance sheet 13
Notes to the financial statements 14 - 22

CATHEDRAL QUARTER ARTS FESTIVAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The Trustees' present their report and accounts for the year ended 31 March 2023.

The accounts have been prepared in accordance with the accounting policies set out in Note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).

In 2022-2023, we returned to only offering live shows for the first time since 2019, almost doubled the size of both our festivals and saw our turnover grow to beyond pre-pandemic levels, and connected with more artists and audiences than we could have hoped for.

Against a backdrop of uncertainty, we rose to the challenge of delivering two exceptional festivals, Cathedral Quarter Arts Festival (CQAF) 2022 and Out to Lunch (OTL) 2023, giving back the arts sector in Northern Ireland and investing in the organisation’s longer term sustainability and resilience.

Objectives and activities

The Cathedral Quarter Arts Festival is a multi-disciplinary arts festival which takes place each May in Belfast’s Cathedral Quarter area.

Established in 1999, the festival has won strong support for its work through creative programming, innovative marketing and a sense of energy and accessibility, which the more established festivals in the city sometimes appear to lack.

Audience figures have grown from an initial 5,500 to a recent record of 40,000 and the number of events and performances have grown considerably to approximately 160 per year, including our highly acclaimed Out to Lunch Festival which now takes place each January.

The festival is now one of the premier arts festivals in the region with a strong audience base and a distinctive artistic ethos. From the start, the festival has aimed to be truly 'owned' by the whole of the city. Set in a central, accessible and politically neutral location and with a strong commitment to affordability and accessibility, our aim is to exclude no-one, and as a result, the Festival is enjoyed both by both regular arts attendees and those who rarely frequent traditional Theatre or Art spaces.

CATHEDRAL QUARTER ARTS FESTIVAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Vision

To be regarded as one of the top five arts festivals in Ireland within the next five years, celebrated for its originality and artistic excellence with audience figures rising to 50,000.

Mission/Aims and objectives of the Festival

The Cathedral Quarter Arts Festival's Mission Statement can be summed up in the phrase 'putting arts at the heart of Belfast life'. Our aims and objectives are as follows;

Ethos of the organisation

The Cathedral Quarter Arts Festival is a mainstream arts festival yet consciously targets younger, less traditional arts attendees.

Through engagement with the arts in a way that is social, celebratory, enjoyable and inclusive we believe that we have a significant role to play in re-imagining Belfast as a shared city. We have a commitment to a socially progressive agenda and firmly believe the arts can promote values of tolerance, equity and respect.

The Trustees' have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

The Trustees' have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The Cathedral Quarter Arts Festival is a mainstream arts festival yet consciously targets younger, less mainstream arts attendees.

Through engagement with the arts in a way that is social, celebratory, enjoyable and inclusive we believe that we have a significant role to play in re-imagining Belfast as a shared city. We have a commitment to a socially progressive agenda and firmly believe the arts can promote values of tolerance, equity and respect.

CATHEDRAL QUARTER ARTS FESTIVAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Public benefit

The Trustees believe that in the year until March 2023, we fully met the public benefit requirement. The beneficiaries of this charity are the people of Northern Ireland and beyond to include audience members and participants, regardless of religion, political opinion, race, ethnic origin, sex or age and artists and musicians.

The Cathedral Quarter Arts Festival met this purpose through the provision of two significant arts festivals which promoted and encouraged the arts through the delivery of exceptional events in the performing arts which included music, theatre, dance, literature, cinema and the visual arts.

The public benefits that flowed from the purpose of advancing the education of the public in the arts and culture were:

a) enhanced knowledge, understanding and appreciation of the arts among the public b) expanded opportunities for expressive fulfilment and a heightened sense of well-being through participation in creative activities;

c) improved community relations through collective involvement in enriching arts events d) encouragement given to learning and raising of levels of skills among arts practitioners and participants;

e) engendering a strong sense of civic pride.

These benefits can be evidenced through records of those participating in the festival, ticket sales and visitor numbers captured by counters on entrance, critical acclaim in the media, Arts Council and other surveys of attitudes to and the beneficial effects of exposure to culture, and evaluations of the work and impact of the Cathedral Quarter Arts Festival. No harm or private gain arises from these purposes.

CATHEDRAL QUARTER ARTS FESTIVAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Financial Narrative

In 2022-2023, we returned to only offering live shows for the first time since 2019, almost doubled the size of both our festivals and saw our turnover grow to beyond pre-pandemic levels, and connected with more artists and audiences than we could have hoped for.

Against a backdrop of uncertainty, we rose to the challenge of delivering two exceptional festivals, Cathedral Quarter Arts Festival (CQAF) 2022 and Out to Lunch (OTL) 2023, giving back the arts sector in Northern Ireland and investing in the organisation’s longer term sustainability and resilience.

The increased cost of doing business since Covid, a reduction to our grant income and higher salaries meant that despite turnover surpassing expectations, we returned a deficit. Counterbalancing this however was our strong reserves base, which enabled us to still realise the full scale of our ambition.

For the first time, we restructured our organisation to strengthen our core team. To support the Festival Director, we appointed two full time staff, a Creative Producer, funded entirely from reserves, and a Festival Administrator. Together, they lead and support our project and volunteer teams.

While these appointments led to higher salary costs, there were important investments for building resilience. The Creative Producer, responsible for fundraising and new income generation, has already secured major grant awards from Dormant Accounts NI and Future Screens.

The second contributing factor for the deficit was the reduction our grant from Tourism NI by over a third, from £60,000 in 2021 to £40,000 in 2022. This was only communicated to us on Day 3 of CQAF 2022, leaving us unable to seek alternative funding and no choice but to continue with plans.

Finally, we grappled with operating and production costs, especially for the Festival Marquee, and artist fees, increasing by between 20% and 40% compared to the three-year average preceding 2019. This, coupled with the sizable reduction in grant income, exacerbated the size of our deficit.

Despite the challenges outlined above, we are justifiably proud of our considerable achievements. Box office income reached its highest level to date, new public and private funding was secured, our reserves and cash flow remained strong and our profile and reputation further enhanced.

In recognition of the impact the pandemic on the arts sector, we established our Creative Bursaries to support new work from artists based in Northern Ireland. Alongside this, we launched a year round programme to critical acclaim, featuring artists like Jarvis Cocker and Richard Hawley.

Our ethos and investment in our team, programming and creative, funding and community partnerships, curated on an ongoing basis, has meant we bring together audiences, old and new, in a shared celebration of arts and culture, while increasing size and scale of our festivals.

As the Stormont impasse continues and funding from our principal funder remains frustratingly static, it is the source of considerable pride that our organisation continues on an upward trajectory, ever evolving and always adapting to new opportunities and challenges.

CATHEDRAL QUARTER ARTS FESTIVAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Artistic Overview

CQAF 2022

The backdrop to CQAF 2022 was (once again) the uncertainty of having Covid still present in our community and the challenges of trying to second guess where we’d be at the end of a 10-12 month festival planning cycle.

It was a busy 12 months with CQAF 2021 delivered in September 2021 and OTL in January 2022 (for the most part eventually cancelled due to the emergence of the Omicron variant.) We then moved straight into our first fully live festival in three years in May 2022 as we were tentatively emerging out of lockdown and with the lifting of all remaining travel and social distancing restrictions.

On the positive side, a lot of the programme was already in place due to a number of postponed shows being rescheduled into CQAF 2022 and a large number of tickets had already been sold. Shows such as GoGo Penguin, Declan O’Rourke, Bell X1 and Hollie McNish had been on sale for some considerable time and provided a good baseline programme from which to build.

As autumn moved in winter, we added headline names such as Echo and the Bunnymen, John Cooper Clarke and Mogwai to an increasingly credible programme line-up for CQAF 2022. We were also heartened by ticket sales for these shows as many sold out, and quickly.

Early in 2022, programming intensified with the remaining nights in the Festival Marquee going on sale with artists such as Soul II Soul, Kae Tempest, London African Gospel Choir and Penguin Café . Viewed as a whole, CQAF 2022 arguably had the most consistently strong line-up across eleven days in the festival’s history.

Across our other regular venues such as the Black Box, the Ulster Sports Club and Oh Yeah centre the programme was similarly strong with critically lauded acts such as BC Camplight, The Delines, Altered Images, John Shuttleworth and Shappi Khorsandi.

In January 2022, we appointed a Creative Producer with the aim of forging new artistic partnerships and new venues and to bring a fresh approach to programming. One such initiative was to incorporate St Joseph’s Church in Sailortown, sometimes a forgotten part of the city, as a main festival hub. Funding was duly sought and for and received to programme 11 days of music and comedy including Lucy Porter, Monty Python and the Foley Grail, Dani Larkin and Roy Walker.

Another venue new was 2 Royal Avenue (formerly a Tesco supermarket) where we programmed art exhibitions, plays and a talk by leading literary and political commentator, Bonnie Greer. Other quirky and unconventional venues secured by the Creative Producer included the Freemason’s Hall in Cornmarket, the Frist Presbyterian Church and St Patrick’s Church on Donegall Street.

Our Talks and Tours, which were very experiential, proved extremely popular including our Mary Ann McCracken Tour, our Whiskey Tour and a very engaging workshop on traditional bread baking.

Programming aside, CQAF 2022 was characterised by a hugely upbeat atmosphere as people revelled in the pleasure of being back out at shows again, generally mild and pleasant weather and a strong sense that things had finally returned to near normality. Hotels, bars and restaurants all reported doing a brisk trade with accommodation, in particular at a premium over the bank holiday weekend.

Supporting our programming efforts, our marketing campaign delivered strong creatives and visually striking branding all over Belfast and across social media and print advertising. Box office sales met pre-Covid levels, which was remarkable given where we had been just five months previously.

CATHEDRAL QUARTER ARTS FESTIVAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

OTL 2023

OTL 2023 concluded on Sunday 29 January after an extraordinary three and a half week run which saw us present over 60 shows, and around three quarters of which were sold out.

The response exceeded our expectations in terms of the quality of shows, box office sales and a palpable air of general goodwill that the festival was back to our first fully live edition in three years.

Opening with a strong and provocative couple of shows by Reginal D Hunter , comedy was well represented with great shows by Isy Suttie, Robert Newman, Josie Long, Rosie Holt, Emer Maguire, Teresa Livingstone, and Irish newcomer Julie Jay.

The opening weekend set out our stall with a busy and varied programme that included sets by Andy

White , a book talk by Miki Berenyi (Lush) and a rare documentary on Patti Smith.

Highlights of Week 1 included a hugely engaging talk by author Louise Kennedy , an electrifying ‘Trad for Lunch’ featuring Donal O’Connor and Harry Bradley and a packed and high-spirited less than reverent screening of Michael Flatley’s vanity project Blackbird.

Week 2 saw Nine Below Zero raise the roof in the Deer’s Head, Andy Irvine perform to a hugely appreciative crowd in the Black Box and Dark Tropics impressing many new fans with a great show, also in the Black Box.

Highlights of Week 3 included a sumptuous presentation of Opera classics by Opera NI , strong book talks by Damian Gorman and Natalie Haynes , and energetic shows by The Skallions and Mungos HiFi.

Festival favourites Harvest gave a great show of Neil Young classics and Drunk Women Solving Crime brought their popular podcast to Belfast for the first time with two sold out shows including guests Derry Girls writer Lisa Magee .

The pace didn’t let up for the final Week 4 with two great shows by Kitty La Roar , amazing bluegrass from Special Consensus , a fascinating talk by Mark Lewisohn on the Beatles legacy, topical theatre from Kabosh with Not on our Watch , orchestral reworkings of Taylor Swift etc. from Arco String Quartet and an engaging talk by Turner nominee George Shaw.

The closing weekend ended on a high note with a trio of great shows by Mick Flannery, Madison Violet, No Oil Paintings and a lively closing night performance/party by the Anna’s Number attending by regular audience members and our project and volunteer teams.

Operationally we had no hitches to speak of at all, production values were extremely high and lunches were served to full houses every day with good feedback on the quality of the food.

In Conclusion

We look back on CQAF 2022 and OTL 2023 with considerable pride.

We brought audiences two festival programmes filled with many highlights, we had numerous sold out shows, we delivered a terrifically upbeat atmosphere, we worked with new venues and in new communities, reached new audiences. Thanks to the talent, passion and creativity of our teams we have consolidated our reputation as producers of two of Belfast’s most artistically daring festivals.

CATHEDRAL QUARTER ARTS FESTIVAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for specific use should be maintained at a level equivalent to between three and six months expenditure. The Trustees’ considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The Trustees’ have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.

CATHEDRAL QUARTER ARTS FESTIVAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Structure, governance and management Legal Status and Constitution

The Festival is a Company Limited by Guarantee with Charitable Status (Charity Number NIC102275). Its governance structure reflects values of the organisation and provides the capacity to deliver its vision, mission and strategic objectives.

Staffing Structure

We currently employ a Festival Director (full-time), a Creative Producer (full-time) and an Administrator (4 days per week).

Management

We regard our management and administration as the central strength of our organisation. The current Board of Trustees bring a wide-range of expertise to the Festival, offer strong guidance and advice to the Festival Director and ensures complete financial probity.

At present the Board six times per year with an additional Annual General Meeting where Financial Statements are presented and office bearers are elected for the forthcoming year.

The Festival is managed by the Festival Director who is employed by a voluntary Board of Trustees. The Director line-manages all co-workers. Persons with specific responsibilities for Operations, Marketing and Outreach work are employed for shorter term contracts. The Festival Director has a Masters Degree, a Postgraduate Diploma in Cultural Management and 25 years experience in Cultural Management.

CATHEDRAL QUARTER ARTS FESTIVAL

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Statements and financial procedures

The festival has a comprehensive list of Policy Statements and Financial Procedures detailed in our Staff Handbook.

The Trustees', who are also the Directors for the purpose of company law, and who served during the year were:

Ms C Collins Ms C Hickey Ms N Chundur (Chair) Ms E McDermott Ms E DeDakis

Mr S Donaldson

The Trustees' report was approved by the Board of Trustees'.

..............................

Ms N Chundur Chair Dated: .........................

.............................. Mr S Kelly Secretary Dated:.........................

CATHEDRAL QUARTER ARTS FESTIVAL

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES' OF CATHEDRAL QUARTER ARTS FESTIVAL

I report to the Trustees' on my examination of the financial statements of Cathedral Quarter Arts Festival (the charity) for the year ended 31 March 2023.

Responsibilities and basis of report

As the Trustees' of the charity (and also its Directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 65 of the Charities Act 2008 (the 2008 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 65 of the 2008 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 65 of the 2008 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

CATHEDRAL QUARTER ARTS FESTIVAL

INDEPENDENT EXAMINER'S REPORT (CONTINUED)

TO THE TRUSTEES' OF CATHEDRAL QUARTER ARTS FESTIVAL

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Lowry Grant FPM Accountants Limited Chartered Accountants Statutory Auditors 1 - 3 Arthur Street

Belfast

Co. Antrim BT1 4GA Northern Ireland

Dated: .........................

CATHEDRAL QUARTER ARTS FESTIVAL

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
3
8,227
-
Charitable activities
4
377,240
208,921
Total income
385,467
208,921
Expenditure on:
Charitable activities
5
453,572
208,921
Net (expenditure)/income
for the year/
Net movement in funds
(68,105)
-
Fund balances at 1
April 2022
320,228
-
Fund balances at 31
March 2023
252,123
-		 Total Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
8,227
7,439
-
586,161
271,797
206,002
594,388
279,236
206,002
662,493
106,067
206,002
(68,105)
173,169
-
320,228
147,059
-
252,123
320,228
-		 Total
2022
£
7,439
477,799
485,238
312,069
173,169
147,059
320,228

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 requirements for an income and expenditure account under the Companies Act 2006.

CATHEDRAL QUARTER ARTS FESTIVAL

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due within
one year
11
Net current assets
Income funds
Unrestricted funds		 2023
£
73,688
186,632
260,320
(8,197)		 £
252,123
252,123
252,123		 2022
£
84,613
250,125
334,738
(14,510)		 £
320,228
320,228
320,228

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees' on .........................

..............................

Ms N Chundur (Chair)

Trustee

Company Registration No. NI039697

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

CATHEDRAL QUARTER ARTS FESTIVAL

1 Accounting policies Charity information

Cathedral Quarter Arts Festival is a private company limited by guarantee incorporated in Northern Ireland. The registered office is Unit 8 Northern Whig House, 3 Bridge Street, Belfast, BT1 1LU.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

1.2 Going concern

At the time of approving the financial statements, the Trustees' have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Due to the impact of COVID 19 the Trustees have reviewed the financial position of the charity on a regular basis and have taken action to ensure that the charity can continue to operate. Thus the Trustees' continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees' in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

CATHEDRAL QUARTER ARTS FESTIVAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.5 Expenditure

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

Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially 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. Financial assets classified as receivable within one year are not amortised.

CATHEDRAL QUARTER ARTS FESTIVAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.8 Employee benefits

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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.9 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees' 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 are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

CATHEDRAL QUARTER ARTS FESTIVAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Donations and gifts 8,227 7,439

CATHEDRAL QUARTER ARTS FESTIVAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

4 Charitable activities

Unrestricted
Restricted
2023
2023
£
£
Box Office
274,914
-
Performance related
grants
102,326
208,921
377,240
208,921
Analysis by fund
Unrestricted funds
377,240
-
Restricted funds
-
208,921
377,240
208,921
Performance related grants
Belfast City Council
13,309
45,000
Arts Council for Northern
Ireland
12,638
101,002
Department for
Communities
250
-
BCC - Out to Lunch
20,000
-
Tourism NI
9,000
40,000
Film Hub
5,400
-
Sponsorships
17,500
-
Perspective Economics
7,000
-
Cathedral Quarter Trust
9,600
-
Other
7,629
22,919
102,326
208,921		 Total
2023
Unrestricted
Restricted
Total
2022
2022
2022
£
£
£
£
274,914
217,497
-
217,497
311,247
54,300
206,002
260,302
586,161
271,797
206,002
477,799
377,240
271,797
-
271,797
208,921
-
206,002
206,002
586,161
271,797
206,002
477,799
58,309
-
45,000
(45,000)
113,640
-
101,002
(101,002)
250
20,000
-
(20,000)
20,000
20,000
-
(20,000)
49,000
-
60,000
(60,000)
5,400
4,800
-
(4,800)
17,500
9,000
-
(9,000)
7,000
-
-
-
9,600
500
-
(500)
30,548
-
-
-
311,247
54,300
206,002
260,302

CATHEDRAL QUARTER ARTS FESTIVAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

5 Charitable activities

Unrestricted
Restricted
2023
2023
£
£
Staff costs
82,681
21,919
Artist fees
140,686
156,202
Bank Charges
2,059
-
Production
58,685
-
Marketing
28,610
14,800
Running costs
1,220
15,000
Sundry expenses
3,618
-
Travel Costs
60,192
-
Venue Costs
37,008
-
Other programmes and
events
2,752
-
Bursary
9,000
1,000
426,511
208,921
Share of support costs
(see note 6)
23,323
-
Share of governance costs
(see note 6)
3,738
-
453,572
208,921
Analysis by fund
Unrestricted funds
453,572
-
Restricted funds
-
208,921
453,572
208,921		 Total
2023
Unrestricted
Restricted
2022
2022
£
£
£
104,600
2,739
58,890
296,888
20,442
107,899
2,059
978
-
58,685
17,819
16,600
43,410
-
22,613
16,220
22,101
-
3,618
1,334
-
60,192
10,424
-
37,008
9,610
-
2,752
-
-
10,000
-
-
635,432
85,447
206,002
23,323
19,020
-
3,738
1,600
-
662,493
106,067
206,002
453,572
106,067
-
208,921
-
206,002
662,493
106,067
206,002		 Total
2022
£
61,629
128,341
978
34,419
22,613
22,101
1,334
10,424
9,610
-
-
291,449
19,020
1,600
312,069
106,067
206,002
312,069

CATHEDRAL QUARTER ARTS FESTIVAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

6 Support costs

Support
costs
Governance
costs
£
£
Insurance
2,194
-
Rent
6,600
-
Light & Heat
2,339
-
IT Expenses
1,467
-
Consultancy
8,132
-
Telephone
2,591
-
Accountancy
-
3,738
23,323
3,738
Analysed between
Charitable activities
23,323
3,738		 2023
Support
costs
Governance
costs
£
£
£
2,194
1,830
-
6,600
7,368
-
2,339
115
-
1,467
1,959
-
8,132
5,600
-
2,591
2,148
-
3,738
-
1,600
27,061
19,020
1,600
27,061
19,020
1,600		 2022
£
1,830
7,368
115
1,959
5,600
2,148
1,600
20,620
20,620

Governance costs includes payments to the accountants of £3,738 (2022- £1,600).

7 Trustees'

None of the Trustees' (or any persons connected with them) received any remuneration or benefits from the charity during the year.

Any connection between a Trustee or senior manager of the charity with organisations the charity works with must be disclosed to the full Board of Trustees in the same way as any other contractual relations with a related party.

CATHEDRAL QUARTER ARTS FESTIVAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

8 Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
3
2
Employment costs
2023
2022
£
£
Wages and salaries
88,794
53,635
Social security costs
10,193
5,255
Other pension costs
5,613
2,739
104,600
61,629
No employee received remuneration of more than £60,000 during the year (2021 - Nil).
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Grants receivable
14,050
84,613
Prepayments and accrued income
59,638
-
73,688
84,613
10
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
26
-
Payable within one year
26
-		 2023
2022
Number
Number
3
2
Employment costs
2023
2022
£
£
Wages and salaries
88,794
53,635
Social security costs
10,193
5,255
Other pension costs
5,613
2,739
104,600
61,629
No employee received remuneration of more than £60,000 during the year (2021 - Nil).
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Grants receivable
14,050
84,613
Prepayments and accrued income
59,638
-
73,688
84,613
10
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
26
-
Payable within one year
26
-		 2023
2022
Number
Number
3
2
Employment costs
2023
2022
£
£
Wages and salaries
88,794
53,635
Social security costs
10,193
5,255
Other pension costs
5,613
2,739
104,600
61,629
No employee received remuneration of more than £60,000 during the year (2021 - Nil).
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Grants receivable
14,050
84,613
Prepayments and accrued income
59,638
-
73,688
84,613
10
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
26
-
Payable within one year
26
-
2022
£
53,635
5,255
2,739
61,629
2022
£
84,613
-
- Nil).
2023
£
14,050
59,638
73,688
2023
£
26
26
84,613
2022
£
-
-

CATHEDRAL QUARTER ARTS FESTIVAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

11
Creditors: amounts falling due within one year
Bank overdrafts
Other taxation and social security
Other creditors
Accruals and deferred income
12
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2023
2023
£
£
Fund balances at 31
March 2023 are
represented by:
Current assets/(liabilities)
252,123
-
252,123
-		 Notes
10
Total
Unrestricted
funds
2023
2022
£
£
252,123
320,228
252,123
320,228		 Notes
10
Total
Unrestricted
funds
2023
2022
£
£
252,123
320,228
252,123
320,228		 2023
£
26
3,857
1,894
2,420
8,197
Restricted
funds
2022
£
-
-		 2022
£
-
4,112
8,198
2,200
14,510
Total
2022
£
320,228
2022
£
320,228
320,228
320,228