Company registration number". N1029491 chai.ity registi3tion number.. 102460 Paragon Studios Ltd (A company limi*d by guarantee) Annual Report and Financi Statements for the Year Ended 31 May 2023 Hopper & Co Chartered Accountant 6 Doagh Road Ballyclare Co Antritn BTJ9 9BG
Paragon sthdios Ltd Conceuts Reference and Administrative Details Trustees, Report 2to5 Statement of Trustees, Responsibxlities Independent Examinefs R¢port Ststement of Fin8n¢ial A¢tivities BalanGe Sheet Notes to the Finaneial Ststements IOto21
Paragon Studios Ltd Reference and AdmAnistrative Details Chairperson Ray Cashell Trustee Peter Mutschler Ray Cashell Anne Mager Katherine Sara Lindsay Rachel Botha Michael Patrick Conlon Sinead Marniion Niamh Swllion setary Anne Mag¢ Charity Registration Number I02460 Company Registration Number N1029491 The charity is incorpornted in Northern Kreland. I l Rosemary Street Belfast BTI IQA Hopper & Co Chartered Accountant 6 Doagh Road Bally¢lare Co Antrim BT39 9BG Reoistered Offiee Independeot Exaffjiner Page I
Paragon Studios Ltd Trnstees, Report The truste¢s, who are directors for the purposes of company law, prent the annual report together with the financial st&tements of the charitsble company for the year ended 31 May 202). The truytees as at the date of this report are as set out on page l. Objectlves and aetivities Objects and alm Paragon Studios Ltd ( hereinafter referred to as PS2) has two main objectives: l) to provide good, affordable and long terni work spaces for artists 2) to support and encourage artists and ¢tural ptitiOnerS to produce and show individual or collaborative new work either ingide our project space or at outside lo&qtions. often with the inclusion of lo¢al eoit)munities. With a strong belief in th¢ relevance of art and its function in society. we aim to find new and surprising ways to faGilitste tbe produclion of nev4 woik and make it accessible to a wide audience. TEiis aim to connect contemporary art and people is done in differenl ways - through long tenn projects 1th eommunities, r¢levant subjects, participatÉon, opewiess and inclusion. Our organisatiou is artist led, efficient and restlessly committed to Art and its fun¢tion for the general public.. to stimulate reflection. provoke, inspiTe enrich and transforni. We support artists whose work is exciting. original, relevant and of high artistic qualjty. We see our position in the arts ecology as a colourful building step for artists between th¢ start of and midway througb their care¢r. We provtde and facilitate unrestrictsd and uncommercial opportunf(ies for thtsts to show their work and internct with the public. Public benefit Through tbe provision of affoFdable and subsidtsed workspaces, regular free workshops, community engaged Projects and an experimelltsl exhtbitiO programme for early to mid career artists in our projett spac¢. the public at large ¢aD enjoy and benefit from a greater understanding and appreciation of th¢ arts. Irj all our activities the wider public is encouraged to participats and co-produce. pot¢Dtially developing any artistic tendencies they may possess. The trustees confirni that they Ellve eornplitd with the requiwnents of section 4 of the Charitt¢s Act 2008 to have du¢ Tegard to the public benefit guidan¢e published by the Charity Comrnission for Northern Jreland. Page 2
Paragon Studios Ltd Trustees, Report Achievements and performance Funding Our core llder remains th¢ National Lottery through the Arts Couftcil of Norhtem Ireland. Our fvll time 3 y¢ar position is funded by Futurescreen Nl, and various streams of project funding come from Belfast City Council. Until the end of 2023, PS2 still receives fimding from the Freelands Foundation for the Freelands Artist Progranune (2018-2023 ). Siuc¢ having a part time strategi¢ ¢ttor, our thnding sources diverstfied 2nd broadened th¢ reporting period in line with OUT 5 year Strate. Premiseslstudio and workplace provision PS2 operates from its pr¢mises at I l and 15 Rosemary Street, wtth project space including I l individual artist Studioslworkplaces and 3 residency spaces. As mLwh as we now enjoy the pr¢mise$ since moving in over 3 years ago. we only have a Tenency at Will contract with a high degw of uncertaittty. Securing long¢r tem premÈs¢s ¢ontinues to b¢ a priority. Arts Programme PS2 carrted out 2J proj#ts involving 76 artists and 41 workshops witb ?39 participants duTing the reporting period.The programme was ¢urated by our new PTOjeCt curator, Davy MahoD. The year round weekly l>pen Communal Shared Drawing prograinme, now running for over 3 years delivered online, h&8 a steady and high number of participartts from Northern Ireland and abroad. which makes it the most success1 and ac¢essible activity. Selected Projects Profe*siona] development is one o'f the key aspects of our artist SlEPPOrt. Th¢ Fr¢elands Artist Progtwrjme. whicb will end after 5 years in Dernber 2023. saw 20 emerging and re-emerging artists based in Northern Ireland receiving tailored curatori21 supporL p¢er learnijig, exhibitions and other opportunÉti¢s. The prOgrae of 3, year long" residencies continued and demonstrated the benefit of longer terni committh6nt: l) With Clodagh Boyce, a llew curator ij) resid¢nce was s¢le¢ted. focusing on people of ¢lour qu¢er communitTes in their Collaborative programme 2) The criti¢al writing residency continued their ¢ollaboration with African ArtÉsts Foundatiow Nigeri focusing on 'Reclaiming Art Histories & Developing Critical DI10Sure, 3) Soft Fiction Projects continued their collective residen¢y, worf(ing on publications and rnnnig workshops for Risograph printing as a tool for ¢mpowernient Finallcial review Policy on r£¥erves The directors. policy Én relation to free Yeserves is to ensure that PSI maintsins mlnimum reserves equivalent to at least two months of nomial ¢haritable expenditure in order to maintain liquidity, to cover any unforseen costs which nTry arRs¢, and to fulfill obligations of PS. in the event current lev¢ls of income aR not malntained. Free reserves are defined as totaI reserves ex¢luding any restrACted funds. Page 3
Paragon Studios Ltd Trnstees, Report Plans for future periods Aims andkey objectivesforfutureperiods PS2 has completed a businees plan for 2022_2025 outlining the vision and aims of the organisation.Thr transitio from a volunteer to an OTganisation led by paid pmfessionats is underway and progressing. The next urgent st¢ps for a sustsinable future are: l) establish additional paid positions T.e. a creative director and a finance administrator. To make a successful transition pos5ibl¢ and to continue and expand the programme and activities offered, PS and it% Board irjust look for add3tional funding sources. 2) Secu longer t¢rni premises for QLTrr studios and project space 3) stretigthen and refresh the Board wtth dedicated external expertise and studio members Structure? govern2nce and management Nalmre ofgoverning document PS2 is a registered ¢Ewity and a company limited by gvarantee and so does not have a share c41ital. Th¢ liability of each member Ts limited to £1. The cornpany is governed by its Articles of Association. IAduelEon ond<raiHing oftruslees New Trustees - who are also appointed as DirertOTS - have an indllction meeting with the Chair of tbe Board. They are brie£ed on a range of issues iN¢luding a full introduction to thc organisation, its decision makkng process, businesg plan and recent financial perfonnance, and the role5 aTJd responsibiliÈies of a BtsaTd membeT. Thanks to a Belfast City Council granL an intensive Board training prOgrrne happen¢d in January 2023, culminaÈÈng with a full Planning and Review day with a consEE1t2. Individual Board members also atteDded sessions with Arts & Business and Thrive. Organisalional struekure A voluntary Board of Dire¢tot¥ who are a]$0 the Trustees oversees the work of the company and establishes policy &rtd strategy. The year saw considerable ehanges in the B02Td structure, marking a ren¢w41 of positions. Bronagh Lawso Stepp down as Chairperson in December 2022. banding oveT tbts position to long standing Bo8Td member. Ray Cashell. At the same time, studio and Board membeis Bill S&unders and Dougal Mackenzt< as Secretary, reSied. Anne Mager filled his position. Sadly, Hugh O'Donnell died far too voung in the same month. Hugh was 2 strong advocate for equal opportunties for artists wsth disabilltios, and his input will be sorely missed. We thank atl past Board membets for their time and work. New Board members were appointed: Sinead M&mion and Katy Lindsay in May, Mitch Conlon and Rachel Botha in Morch attd June 2023. Our ¢urreftt Board consists of three studio members, representing the collective. and five exten1 rnembers, with a broad range of professional skills and experience. PS2 now employs one ftdl tim¢ project curator ( Da MahorA }, one part time curator for the Freelarjds Artist Programme { cl Hickey ) and one part time, freelance. strategic vi32on and development curator ( Jane Morrow }. Th¢ ¢reative director is still held in a voluntary position ( Peter Mutschler ). The Company has all necessary policies in place which are reviewed regularly. Throughout the year the work of PS, was greatly supported by the Board and the committment and dedication of the invited artists and external voluntecrs. Page 4
Paragon Studios Ltd Trustees, Report Major risks artdmanagepnent oflhosg risks FÉnak3¢ial suslainability The Trustees have a risk managemeJ]t strategy which cornprises: - an annual rewiew of the prin¢ipal risks and uncertainties that the charity faces - the establislunet)£ of policies, systems and procedur¢s to mitigate those risks identified in the annual review the trnplem¢ntation of procedur¢s designed to minimise or manag¢ ony pot¢ntial impact on the charity should these risks materialise Financial sustainabijity has been identified as the maioT risk faGing the Gharity at any point in time. FiTRancial sustainability has been identifjed as the major rtsk facing the GhaTity at ony point in time. All identified risks are rnaged by ensllritsg that robust wlicies and procedures are in pla¢¢. A key element in the Inanagement of financial risk is a regular review of available Itquid funds to settl¢ debts as they fall due. Sm911 eompaoies provision statement This report has been prepar¢d in aecordanc¢ with the snM]I comp4ni¢s r¢gim¢ under the Companies Act 2006. ThnUal report was approved by the trustees of the charity on I l December 2023 and SiEned on its behalf by: AnnF Mager Cothpany Secr and Trustee Page 5
Paragon Studios Ltd Statement of Trustees, Responsibilities The trustees (who are also the directors of Paragon Studios Ltd for the purposes of company law) are responsible for preparing the trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Prdciice), inclLLding FRS 102 "The Finan¢ial Reporting Stsndard applicable in the UK aftd Republi¢ of ITeland' The report and accounts have b¢en Prepared in accordanr£ with the provisions in the Companies Act 2006 relating to small compani¢s. Company law requires the trustees to prepare financial statements for ea¢h financial year. Under comp&ny law the trustees must n()t approve the financial statements unless they aTe satisfied that they give a true and fair view of the state of affairs of the chaTitsble company and of the incoming resources and appli¢ation of resources. including its income and ¢xpendttur4 of the ChItable company for that period. In preparing thege financial StateMts. the trustees are wuired to: select suitable accounting policies and apply them consistently) observe the methods and principles the Ch&Titie8 SORP- make jlldEeme))ts and estimates that are Twonable and pwdent" stste whether applicable a¢couttting standards, comprising FRS 102 have been followed, subjecf to any material departures disclosed and explained in the finan¢ial staiements" and prepare the financia] statents on the going concern basis unless it is inappropriate tr) presume that the charÈtsble ¢ompany will continue in bustness. The truste¢s are r¢spoDsible for keeping proper accounting records that can dis¢lose with reasonable accuracy at aay tin)e th¢ financial posltion of the charitable company and enable them to ensure that the financial staten)entS comply with the Companies Act 2006. They are also responsibl¢ for safeguarding the assets of tbe charitable company and hence for taking reasonabl¢ steps for the prevention and deteGtion Df fraud and other iTregularities. The trustees are responsible for the maintcnance and InteIty of the corpoTak and financial infomiatton in¢lud¢d on the ctwitable company's website. Legislation governing the pr¢paratiOD and dissemination of finan¢ial statements may differ from Itgislation RD Other jurisdictions. ed by the trustses of tbe charity on I l December 2023 and signed on its behalf by: ager Comp y secret d trustee Page 6
Paragon Studios Ltd Independent Examiner's Report to the trustees of Paragon Studios Ltd Cthe Company,) I report to the charity trustees on my eKqminatAon of the accounts of the Company for the year ended 31 May 2023. Responsibllities and basis of report As the charity's tsustees of Paragon Studios Ltd (and also its directors for the purposes of company law) you are responsil)le for the preparation of the aOUnts in accordance with the requirements of the Compani¢5 Act 2006 ('the 2006 Act,). Having satisfied myself that the accounts of Paragon Studios Ltd are not required to be audited under Part 16 of the 2006 Act and are eligible for independent exatnination, I report in respect of my examination of yow ¢ty,$ ac¢oiints as carried out under section 65 (2) of the Clwlties Act (Northern beland) 2008 ('the 2008 Act,). In cang out my examination I have followed tbe Directions given by th¢ Charty Commission for North¢Tn Ireland under section 65(9)(b) of the 2008 ACL Independent examiner's statement I have compl¢t¢d my fjxaminatxon. I Confirni that no mattsrs have Come to my attention in Conoection with the examination givAng n]¢ caus¢ to believe: l. accounting records wer6 not kept in respect of Pardgon Stl108 Ltd as required by section 386 of the 2006 ACL or 2. the accounts do not a¢¢oTd with those records. or 3. the accounts do not comply with the accounting reqllirennts of section 396 of the 2006 Act other than any requirement that the accouBts give a 'lrue and fair view which is not a matter ¢QDsid¢red as part of an independent examination. or 4. the accounts have not been prepared in accordanc¢ with the metbods and principles of the Statement of Recon)m¢ndcd Practice fi)r accounting and reporting by charities [applicthle to ¢harÈties preparing th¢iT accounts in accordance with the FFaancial Reportino Stan(lard applicable in th¢ UK and Republic of Ireland (FRS 102)]. I have no concerns and have come across no other rnatters in connection with th¢ aMination to which attention should be drawn in this report xn OTder to enable a proper Ullderstauding of the awunts to be Tcached. Simon CA Chartered A¢rourAtant 6 Doagh Road BlyClare Co Antrim BT39 9BG 12 December 2023 Page 7
Paragon Studios Ltd Statement of FInaneX Activmties for the Year Ended 31 May 2023 (Inclllding Income and Expenditure A¢count and Statement of Tot21 ReeogDised Cains and Losses) UDrestricted funds Restricted fllnds Total 2023 Note Income and Endowments from: Donations and legacies Charitabke activities Other income 32,326 4,960 813 32,326 131279 813 126.319 Total income 38.099 126,319 164,418 Expenditure on: Charitable actRviti¢s 37,405) (125,918) (163,323) (163,323) Totsl exp¢nditure (37,405) 125,918) Net income Transfers between fimds 694 (9 401 1,095 Net moii¢ment ID funds 685 410 1,095 Reconeiliation of fullds Totsl fidS brought foThvard 12,027 58.824 70,851 Total fuuds Carried forward 16 12.712 Unrestricted funds 59,234 Restricted nds 71,946 Total 21122 Note Income and Endowments from: Donations and RegleS Charitable actiVAties 32,666 5,080 32,666 147,977 142,897 Total income 37,746 142,897 180,643 Expenditllre on= Charitable adivities (35330 109,742 (145,072) Total expenditure Net incoLue (35,330) (109,742) 33,155 (145,072) 2,416 35,571 Net moveEnent in funds 2,416 33,155 35,571 Rw)neiliation of funds Total fids brought forward 9.610 25,670 35,280 70,851 Total fimds carried forward 16 12.026 58,825 All of the charity's activities derive from ¢ontinuing operations during the above two periods. The funds breakdown is shown in nots 16. The notes on pages 10 to 21 forni arA inte81 part of these financial statements. Page 8
Paragon Studios Ltd (Registration number: N1029491) Balance Sheet as at 31 May 2023 2023 2022 Note Fixed assets Tangible assets 13 I,oii 1,415 Current assets Cash at bank and in hand 14 71,655 70.156 Credltors: Amounts fglling due within one year Net eurrent gssets 15 720 720) 70,935 69,436 Net assets 71,946 70,851 Fullds of the charlty: Restricted ineome funds Restricted ndS 16 59,234 58.824 Unrestricted income fund5 Unrestricted fimds 12.712 12,027 Tot21 funds 16 71,946 70,85I For the fwaooial year etidÈng 31 May 2023 the charity w&8 entitled to ¢xemption from audit under section 477 of the Companies Act 2006 relating to small Gompanies. Directors, responsibilities: The members have not required the charity to obtstn audit of its COUnts for the year in question Èn accordance with se¢tion 476. and The directors acknowledge their r¢sponsÉbilities for complying with the requirements of the Acr with respect to accounting records and the PTeparation of accounts. These financial statements have been prepared in accordance with the special provisions relatAng to Companies subject to the small companies regime within Part 15 of the Corupanies Act 2006. The fitjancial s De¢eiiibFr 2023 ements on pages 8 to 21 wer¢ appraved by the trustees, and authorised for issu¢ on I I d srgned on their behalf by.. Raytashell Chaimwand Trustee ne Mager Cmpany S ary and Trustse The notes on pages 10 to 21 form an intsgraj part of tEiese financial statements. Page 9
Paragon Studios Ltd Notes to the Finallcial Statements for the Year Ended 31 May 2023 I Charlty ststlls The charKty is limited by guarantee, incorpoTated in Northern Ire12n and ¢onsequently does not have share ¢2pital. Each of the trustees is liable to contriTrJule an amount not exceeding £1 towards the assets of the charity Tn tbe event of liquidation. The address of its registered office is- I l Rosemary Street Belfast BTI IQA These finan¢ial statsments were authorised for issue by the trustees on I l December 2023. 2 Accounting poJieio8 Summary of signiflcallt accoutillg polieies gnd key accounting estimates The priDGipal accounting licieS applied in the preparation of these finarAcial statements are set out below. Thes¢ policies tmve been Gonsist¢ntly applied to 211 the vears presented, unies8 otherwise stated. Statement of compli2Dce The financial statements have been prepared in acwrdance with Accounting and Reporting by Charities: Statement of Recommended Pra¢tice applicable to clwities preparing their accounts in accordan¢e with the Financia] Reporting Standard applicable in tht UK and Republic of Ireland (FRS 102) [effve l January 2015) - (Charities SORP (FRS I02)}, the Financial Reportiog Standard applicable sn th¢ UK and Republic of Ireland (FRS 102). They also comply with the compani Act 2006 and Charities Act (Northern IreSand.) 2008 and2013. Basi$ of preparation Parason Stsdios Ltd meets the defmition of a public benefit entity under FRS 102. Assets aDd liabilities are inttially recognlsed at histOTical cost or transaction value unless otherwise stated in the relevant accounting policy notes. Page 10
Paragon Studios Ltd Notes to the FRllancial Statements for the Year Ended 31 May 2023 Going coneern The fsnancial statements have been prepared on a going concern basis. The trustees assess whether the use of going concern is appropriate i.e. whether th¢re are any mat¢rial uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The ttlLStees make thts assesstn¢nt in Tespect of a per&od of one year from the date of approvaI of the finan¢ial statements. In March 2020 the charity took steps (in IiKke with goverlkment advice) to help contain the outbreak of COVID-19. TFLIS meant that the chaTity had to slightly curtail. or chang¢, how it operates atthough the charity has been able to conttnue th¢ bulk of its activiti¢s using online s¢rvi¢¢s and adopting Covid compliant practices. The Covid crisis may acc¢leTate the fa]1 in some of our income. Our ability to survive the crisis will rely on adaptiT]g quickly to this fall in income whilst striving to build and find alternatives and doing aIl we can to be ready for any economic boun¢e 'back. The nature of fijnding is such that th¢ Trustees cannot be GertaTn that projeGted tUre funding will Inaterialise. At the time of approving th¢ a¢COun despite finanGiaI challenges and following assessment, the Trustees hav¢ a Teasonabl¢ expectalion that the charity has adequate resources to continu¢ in operational existence for the fOeeable future, ther¢fore the Trustees contiaue to adopt the going concern basis of a¢couRtting in prePing these fitwiGia] statements. Income and eudowments All income is recognised on¢¢ the charity has entitlement to the income, it is probable that the inc43me will be received and the amount of the income receivable can be measured reliably. Dbn&tions and légdcEes Donations are recognised when th¢ charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to condKtiot)s that r4uire a lev¢1 of perfonnance by the charity befor¢ th¢ charity ig entitled to the funds, the income is defentd and not recognised until eith¢r those conditions are fvlly meL or the fulfilment of those conditions is wholly within the control of the chaLIty and Èt is probabl¢ that these condittons will be fulfilled in the reportin£ period. Donatedsenyices andfocYlidLs Where services or facilities are Provided to the charity as a donation that would nornially be puwhased from our suppliers. this benefit 15 include4 in the financial statements at its fair value unless its fair value cannot be reliably measured, then at the cost to the donor or the wale valLte of goods that are to be sold. Expenditure All expenditure is r¢cognised once there is a legal or constrn¢tive obligation to that expenditure, it is probable settlement is required and the amount Gan be Le3$ured reliably. All costs aT¢ allocated to the applicable expenditure heading that aggregate simithr costs to that category. Where costs cannot be direcdy attributed to particul headings they have been allocated on a basis cottsistent witb the us¢ of resources, with central staff eosts allocated on the basis of time spent. and depreGiation charges allocated on the portion of the asset's [e. Other support costs ar¢ allo¢atsd based on the spread of staff ¢osts. Pagell
Paragon Studios Ltd Notes to the Fina]Jcial Statements for the Year Ended 31 May 2023 Choritable aLYivai Charitable expertditLe comprises those costs it>cwred by the charity in the delivery of its activÉties and services for its beneficiaries. It incllldes both costs that be allocated directly to such activities and those costs of an indirert uature necessary to support them. Governance costs These includt the costs attributable to the cbaiity's compliance with constitutional and statutory Tequirements. including &udit. strategic nwiagement and trustees meetitw and reimbursed exp¢nses. T8xxtion The ¢harity is wnsidered to pass the tests Set out in Paragraph I Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitsble company for UK ¢oryor*ion tsx purposes. Accordingly, the charity is potentially exempt from t&Yation in respect of tncome or capita] gains received wÉthin categories covered by Chapter 3 Part 1 l of the CorpoTation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gaing are applied exclusively to ch7ble purposes. Tangible red assets Individual fixed assets costiug £1.00 or more are initia]ly recoided at ¢0¢ less any subs4uetrt accumulated d¢pTe¢iation and subsequent accumulated impairnlent losses. Depreciation and amortisation Depreciation is provided on tangible fixed assets so is to write off the cost or valuation, l¢ss any estimated residual value, over their expected usefijl economic life as frillows: C%sh and cash equivalents Cash and cash equivalents comprise ¢ash on Iwid and call dewJSits. and other short-terni highly liquid investments that are readily eonv¢rtible to a known amount of cash and are subject to an insignifi¢allt risk of change in value. Borrowings Interest-bearing borrowings are initially recorded at fair v2]ue, net of transaction costs. Interest-bearing borrowings are subsequently carried at amorttsed cost, wkth the difference between the proceeds, net of transaction costs, and the amount dtje on redemption being re¢ogAised a charge to the Statement of Financial Activities over the period ofthe relevant borrowing. ILrterest expense is recognised ol) tbe basis of the effective int¢rest mcthod and is in¢luded in ixterest payabl¢ and similar charges. Borrowings are classified as current llabilities unless the cbarity has an unconditional right to defer settlement of the liability for at least twelve months after the Teporting date. Page 12
Paragon Studios Ltd Notes to the Financial Ststements for the Year Ended 31 May 2023 Foreign exchange Transactions in for¢ign currencies are worded at the rate of excharLge at the date of the transa¢tion. Monetary assets ond liabilities denominated in foreffign cuttcleS at the balance sheet dats are reported at the rates of exchange prevailing at thal date. The results of overseas op¢ratÉons are translated at the average rates of exchange during the period and their balance sheets at the rates mling at the balance sheet date. Exchange differences arising on translation of the opening net asset5 and results of overseas operations ar¢ reported in other comprehensive income and accumulated in equity (attributed to non-coatrolling interests as appropriate). Other exohange differen¢¢s are recognised in the Statement of Financial Activities in the period in which they arise exwt for: l ) exchange differences on traDsactiotLS enteied into to hedge ¢ert&'n forei curren¢y rtsks {see above)" 2) exchange differences arising on .InS or losses on non-monetary it¢n]s which are recogRis¢d in other compreh¢nsive income" and J) in the ¢as¢ of th¢ Gonsolidated fInancial statements. exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is netther planned nor likely to occur (therefore fomÉng part of the iiet investment in the foreign operation), which are recognised in other comprehensiv¢ income and reported under equity. Fund strueture Unrestricted income funds are general funds that are avallable for at the trte¢S discretion in furtherance of the objectives of the charity. Restricted income fimds are those donated for use in a partIlar area or foT specific purposei the us¢ of which is restricted to that area or purpose. Financial instrumeDts Classification Financial ets atsd financial liabilities are recognised when th¢ charity becomes a paty to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified accordills to the substance of the contractual aTrangements entered into. An equity instrument is any contract that evidences a residual int'erest in th¢ assets of the charity aft¢r deducting all of its liabilities. Page 13
Paragon Studios Ltd Notes to the FinancAal Statements for the Year Knded 31 May 2023 Derivalivefmémeial inslrupnénts The charity uses derivative fnttn¢ial instnunents to redu¢e exposure to foreign exchange rtsk and interest rate movements. The charity does not hold or sssue derivative financlal instruments for specu12tive purposes. D¢rivatives are initially recognised at fair value at the date a derxvative contract is entered into and are subsequently r¢measured to their fair value at ea¢h reporting date. The resultillg gain or los$ is re¢ognised in st&ement of financia] acttvities immediately unless the derivative is designated and effective as a hedging Instmen( in which event the timing of the COgnition in statement of financi activities depends on the nature of the hedge relationship. Féur valug measurement The best evidence of fair value is a quoted PTiC¢ for an identieal asset in an active markeL When quoted prices e unavailable, tbe price of a recent transaction for an identical asset provides eviden¢e of fair value as long as there has not been a significant change in ¢¢onomic circumstances or a significant 13pse of time since the tr2nsactio7) took place. If the Tnaiket is not active and recent transactions of an identical asset on their own are not & good estimate of fair va]u4 the fair value 15 estimated by using a valuation technique. 3 Income from donations aud legaciès UnrestrActed funds General Total funds Donations and lega¢ies' Donations fron] individua]s Donated services 2nd facilities 646 31,680 646 31.680 Total for 2023 32326 Totsl for 2022 4 Ineome from charitsble aetivities Unrestricted funds GeA)erg1 Restricted fuDd$ Total funds Studio operating costs Arts Council Belfast City Council University of Ulster Freelands Esme Mitchell Elephant Trust Cavehill Primary School 4,960 4,960 l8,881 13,627 21.919 62.892 6,000 2.000 1,000 18,881 13.627 21,919 62,892 6,000 2,000 1,000 126,319 Total for 2023 4,960 131,279 Totsl for 2022 5,080 142,897 147,977 Page 16
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 May 2023 5 Other income Unr&strieted funds General Total fun(ts Fees and supplies 813 813 Total for 2023 813 813 6 Expenditure on raising funds Total costs 7 Expenditure on charitable activities Unrestricted fullds GeNeral Restrirted funds Total funds Note Studio operatin8 costs Arts Council Belfast City Coun¢il University of Ulster Freelands British Council The Mac Elephant Trust Cavehill Primary School Depreciation. amorttsation and other Simil costs Governan¢e costs 37,405 37,405 7.826 12,768 7,826 12.768 19,033 58.632 23.149 317 2.072 937 58.632 23,149 317 2.072 937 404 780 404 780 Total for 2023 37,405 125,918 163,)23 Total for 2022 35,330 109,742 145 072 Total expenditure In addition to the expenditure analysed above. the are also governance costs of £780 (2022 - £720) which relaÉ¢ dir¢¢tly to charitable activities. See note 8 for fLth¢r d¢tsAIs. Page 17
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 May 2023 8 Attalysis of govenjance and support eosts Governanc¢ costs Restyitted funds Tot21 funds Independent examiner fees Exatnination of the financial ststements 780 780 Total for 2023 780 780 TO for 2022 720 720 Page 18
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 Ivlay 2023 9 Net incomingloutgoing resources Net incoming resources for the year imclude: 2023 2022 Depreciation of fix¢d assets 404 404 .10 Trustees remuneration and ¢xp¢nses No trustees, nor any peTsons COFmected with them, have received any Trmuneration fiDm the charity during the year. No trustees ha received any reimbursed expenses or any other benefits from the charity during the year. I I Independent ex2miner's remunerntion 2023 2022 Examination of the fjnancial statfflnents 780 720 12 Taxation The charity is a registerod charity and is therefore exempt from taxation. 13 Tangible fixed assets Furniture and equipment Total Cost At l June 2022 3,516 3,516 At 31 May 2023 3.516 3,516 Depreciation At l June 2022 Charge for the year 2.101 404 2,101 At 31 May 2023 2,505 2,505 Net book value At 31 May 2023 K,oJ i At 31 May 2022 1,415 1.415 Page 19
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 May 2023 14 C98h and cash equlvalents 2023 2022 C2sh at bank 71.655 70.156 15 Creditors: amouut$ falling due within one year 2023 2022 AeCDlS 720 7?0 16 Funds Balance at 31 May 2023 Balanee at I June 2022 Incoming resources Resources expended Trgnsfers Unrestrieted GeNeral UnTestricted 12,027 38,099 (37,405) (9) 12.712 Restricted Arts Council Nt B¢lfast City Council University of Ulstsr Freelands British Council The Ma Esme Mitchell Elephant Trust Cavehill Primary S¢hwl 6,969 6,000 18,881 13.627 21,919 62,892 (8,650) (12,768} (19,033) (58,992) (23,149) {317) 17.200 6,859 3,204 11.640 12,148 7,740 35.297 2,500 6.000 2.000 1,000 6.000 (2,072) (937 72 (63) Total restricted 58,824 126,)19 (125,918 59,234 Total thnds 70,851 164.418 (163,323) 71,946 Page 20
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 May 2023 Balance at J Jllne 2021 Incoming resources Resources expended Balance at 31 May 2022 Urtr&8tricted funds GeneTtsI Unrestricted 9,610 37,746 (35,329) 12,027 Restricted Arts Council Nl B¢lfast City Council Univeity of Ulster. Freelands British Council The Mac 6,854 6.000 318 12,498 16,000 (15,885) 6.969 6,000 318 7,740 35.297 2,500 89,100 35.297 2,500 (93.858) Total restrieted funds 25.670 142,897 (109.743) 58,824 Total funds 35,280 180,643 {145.072) 70,851 Page21