Company iegistralion llumber" N1029491 Chanty registralion number.. 102460 Paragon Studios Ltd (A company limited by guarantee) Annual Rqrt and Financial Statements for the Year Ended 31 May 2024 Ilopper & Co Chartercd ALcounianl 6 Doagh Road IdllyLlarc C c) Antri 13-1.39 9BG
Paragon Studios Ltd Colltents RcfLrencc and Administrative Details I'rustees, Report 2to5 StatL"mcnt of 'l'rustees' Responsibilities IndLp¢ndent Lxaminevs Report Slaicmenl of binancial Activities 8t09 BalanrL. Sheet io Notes to Ihc I,inancial Statemenls 11 lo22
Paragon Studios Ltd Reference and Administrative Details Chairperson Ray Cashell Trusteeg Ray Casbell Anne Magci Katherine Sara Lindsay Rachcl Botha Michael Patrick Conlon Sinead Marniion Stephen Hackdi Anne MageT Secretary Charity Registration Number 102460 Company Registration Nllmber N1029491 The chanty is mcoryKJrated m Northern Ireland. I l Rosemary Street BelF1 BTI IQA Hopper & Co Chartered Accountant 6 Doagh Road Ballyclare Co Antrim BT39 9BG Registered Office Independent Examiner Page I
Paragon Studios Ltd Trnstees, Report 'I"hc trn%lcc.s, who arL directors for the purposcs of company law, present the annual report together with thL rinancial statcmcnls of the charitable company for the ycai cnded 31 May 2024. 'Ihe trustees as at thL date of this report arL as set out on page l. Objectives and aetivities Objects and aims Paragon .%iudios Ltd ( hereinafter referred to as PS2) has two main objectives: l) to provide good, affuTdable and long terni work spaces for artists 2) lo support and encourage artist5 and cultural practitioners to pr(Jduce and show individual or collaborative new work cJth¢r inside our proJcLt spacc or at outside locations, often th thc inclusion of local communities. With a strong belief in the relevancc of art and its function in socicly. we aim to f]nd new and Surprising ways to f&cilitatc ihe production of ncw work and make it accessible to a wide audience. This aim to connect contemporary art and peoplc Is done in different Wdys thTough long tenn projects with comtnunitie5, Televant subjects, participation. openne55 and inclusio ()ur organ15alion is artisi led, eICient and restlessly committed to art and ils function foT Ihe general public.. to stimulate rLflLclion. provoke, inspire enTich and transfonn. We support artists whosc WOTk is exciting, origina], rclcvant and ofhigh artistic quality. Wc see our position in the arts ecology as a vilal building block for artists between the start of4ind midw(iy thyough their careLr. Wc Provide and facililxte unrestricted and non-comtncrGial opportunilies foT artists to show their work aiid inlcract with the public_ Public benEfil ThT()ugh the provision ol aItordable and subsidised workspaces. regular free workshops, community engaged projcLls and an cxpentncnlal cxhibilion programme foT L"arly lo mid career artists in our projecl spacc. the public at laFgL can Lnjoy and b¢nefit from a greater undcrsianding and appreciation of the arts. In all our activilies thc wider public is cncourag¢d to participate and cu-produce, potentially devLloping any artislic tcndencies Ihey may possess. 'I"he trustLCS confirm that they have cornplied with the requirements of scction 4 of the ChaTities Act 2008 to have due regard to ihL public benefit guidance published by the Charity Commission for Nurthcrn Ircland. Page 2
Paragon Studios Ltd Trnstees, Report Aehievements and performance unding In lalL' 2023. w¢ were delighted to have been awarded funding frorn Belfast City Council a5 one of 17 organisations seleLtLd for 13elfast 2024 year of culture. This atnbiliou5 project has come with a substantial level of fijnding, to be draw do1 al various milestones throughoul thc Tcmaindcr ol the 2024 calendar year. Alongside our Belfast 2024 funding. we continue to draw upon othet Bcifast City Council streams: Small Grants ( to support our curaloT in Te51dcncc PTogramme and ibree furthcT cxhibilionslpublic cngagement programmes ) as well as Artists, Studio Orbian15alional Grants. wbicb support one day of oui Strategic Vision and Development Curatofs tirne.our core fundL"r Ictnains Arts Council of Northem Ircland. and fund]ng for the full-time Project Curator Tole continues lo be providcd by Future Screens Nl. Whilst fijnding from the Freclands Foundaiion h&s come to an end. we have secwed a grant from F.STne m1hell TTUSt to mounl a substanlial exhibilion of Freelands Artist Programme participants. wi)rk al 'l-he Mac, Belfist which opcned in April. We are delighted io have recendy received ndIng for PeasPark FTOTn Necessity and will Pllt this towards investing in place ( capital structures. sloragc Tnatcr]als. biodivcTSIty initiatives ), people ( upskilling Tesidents and gardeners ). and progtamvncs { artist engagcmcnt al for local comrnunities ). Prcmiscslstudio and workplace piow5ion We cunlinuc to operate from picmiscs at I l and 15 Rosernary StreeL with our project syace including I l individual artisl studiowoTkp1&ceS and 3 rcsidcTJCy spaces. Securing longer terni premises conts.nues to bc a pnonty. We have rLCCTilly secured renl-frec premises in Casilecourt Shopping Ccntrc which will support the workshops and cngagcmenl prOgTarnn for our Belfasi 2024 projecL Our Strafrgic Vision and Development Curdior has joined a stratcgic working group on thc quality and continuily of studio prOS1O. convcned by Belfasl City Council along ih rcpresentatives from Arts Council of Northern Ireland. Arts & Bu51n¢5s. and flax Art Studios. Art.% Programme P.%, eaTTied out 19 projects involvTng 142 artists and 39 workshops with 280 participants during the reporting period. 'Ihcrc wcre scveral open-call opportunities. including llde DevelopEncnÉ Opportunily ( foi fivc artists w]th mtcrcst in socially engaged PTacts"ce, site Specificity and the built environment ), and the A.51 patenis/aTlist carcTS residcncy oppnrtunity. Our Belfast 2024 praject aims to undertake over 100 workshop5 thioughout the City with schools. con]Tnunity groups, residential homes. matkets, artists. studios. shopping centre5 and sheds. Selccted Projects In October 2023, PS. selected to host the a-n ( Artists, Infornmtion Company ) Assembly. a three day probTtullTnL of talks, screeJllngs. pancls. workshops and Q&A's. This was the frst Asscmbly lo be hcld in NortheTn Ireland and introduced our wotk to a-n's 30.OIJ) members. We WLfL also delighted to have been made a new pernent partner on the UK wide Syllabus aTlist developmenl piagTammc. Whilst thc funding for the organisalion { from Freclands foundats.on and Arts Council F.ngland ) is limilcd. I'S? has becn sclcctcd from numerous high prnfile organisab.ons to woik ongsIdC r.ngland bascd Wysmg Arts Centre, EasLside Projecty Spike Island. Studio Voltaire, New Art Exchange and TACO! Over thc next 9 years we will dev¢lop relationships and piogrammcs with individual artists and partners which will greatly amplify our work on a nationwide level. Page 3
Paragon Studios Ltd Trustees, Report Financial review Policy on reserves 'Ihe directors, policy in relation to free reserves is to ensure thai PS2 maintains minimuln r¢s¢rves equivalent lo at least Iwu Tnonihs of normal charitable expendilure in order lo maintain liquidity. to COV aJ]y unforseen costs which may arise, T io fulfill obligalions of PS. in the event cuuent levels of incoFn¢ are not maintained. ricL reserves are defined total resetves excluding any resirictrd fvnds. Plan5 for future periods Aims and key objeclivesforfvthreperiods I'S, has complctcd a business plan for 2022-2025 outlming thL' visions and ain of the organisation and will refresh the Strategic Plan towards the end of this year. The ncxl urgent steps for a susthinable fuiure are: l ) T() %ecure core funding. rathct than an all-PTojed fimding model. which will sUPPOrt the new sffing structure with the emphasis on organisational developmenl lather than delivery. Through Belfast 2024 we have been able to hirc a part-time (4 houTS plw ) finance administrator. 2) To draw on mcmbeTships such as ArLs & Busin5 lo bring expertise on { in particular ) funding and HR to support Ollr ongoing growth ls an organisats.on and a Boar(L 3) l"0 securc longer terni premises for our Studios and projed space. Strueture? governanee and management ]Vdlure ofgoverning dfpcumenl I'S, is d ILgislered charity and a company limited by guarantee and so docs not have a share capital. The liability of each mLmbcr is limited to £1. The company is governed by its A"eleS of Associalio Induction and training oflrnslees Ncw Trustees - who arc also appointed as Directors - have an induction meeting with the Chair of the Board. They arL briefed on a rangc of issues including a full introduction to the organisation. its decision making process. busincss plan ana recent Fmancial perfonnance, and the roles and Tesponsibilits"es of a Board member. This year we plan lo avail of Arts & Busincss's Ijoard Malching Scheme to bting ncw cxpertise the Board which reflects the changes to the staffing struclure. and to prornote training and Icsourccs from. ¢.g NtCVA lo existing Board members. Page 4
Paragon Studios Ltd Trustees, Report Orgunisdtiondl strneture A i'oluntarn, Board ol. Director5 who arc also the Trusiees oversees the ivork of the compall and establishes policv and strategi.. During the reporting period Ray Cashell has remained in tK)si as Chair of PS: with Anne Mager as Secretary. and Miihael Conlon as Inierim Treasurer ( until a Board Match '1th financial expertise can be found through Arts & Busin¢85 ). This Near ive .][1 seek to recruit ai least one studio member to thc Board. Folloi¥'ing the retircTneni of Peier Mutschler. the organisation's long terni voluntary, Crcative Director. PS, now emploNs tivo co-directors.. one full time Project Curaior ( Davy Mahon l and one part time freelance Strategic Vision and Development Curator ( Jane Mom)M' ). Peier remains involved in the Bclfa51 2024 projeci as a paid freelance ProjLLt LLad. l-hc nem,. part time. freclance Finance Administraior post is occupied bi, Zoe Morgan.Through our BLllast 2024 projcct. M'e will crcatc paid OPFOrtunities for 12 artists to 'ork closely i¥ith the organisa(ion throughout the l'ear on ¥¥'orkshop delivery. The Lompan! h85 all ncccssary tx)licies in place which are reviewed regularly. including new wlicies this year on En7r0M¢nIal SustainabililN. Marketing and Audien¢e DevelopmenL Diillersiti. and Inclusion. and Accessibilily. Throughout thL N'car the work of PS: i.a5 great1 supw)rted by the Board and the committment and dedication of the ini'it¥d artists and cxtcrnal volunteers. Major risks undmanagemenl ofthose nsks Financial suslainabiliAJ The Trustees have a risk managcment StratTr. Ivhich comprise5: an annual rel'ie. of the principal risks and uncertaintics that the charits. faces thL establishment of wlicies. sl'stems and procedurcs to mitigate thosc risks identified in the annual review the implementation of procedures designed to mintmisc or manage an! wtential impact on the charity should ihese risks materialise FinanLial sustainabilitv h&$ been identified &$ the major risk facing the charity at any TX)ini in lime. All identilied risks are managed by ensuring that rob tx)licies and procedures are in place. A ke), eleTneni in the managemeni ol- linancial risk is a regular revieii" of available liquid funds to settle debts as theN' fall duc. Small companies provision statement 1'hi5 rctK)rt has becn prepared in accordance with the small companies regime under the Companies Act 2006. Thc nnu ort pprovcd b> the trusiecs of the charity on 13 Decemkr 2024 and signed on its behalf b),: Ra Chairman and l- Page 5
Paragon Studios Ltd Statement of Trustees, Responsibilities The trustees (who are also the directors of Para20n Siudios Lid for the purposes of compan!. la..) are responsible lor preparing the trustecs. rerK>rt and thc tinancial staletnents in accordance iiith applicable laii" and United Kin¥dom Accounting Standards (United Kingdom GerEerdllN- Accepted Accounting Prd¢iicel. including l-"RS 102 "1-he Financial Reporting Standard applicable in the UK and Republic of Ireland" The r¢port and accounts have bcen prcpared in accordance ii'ith the provisions in thc Cotttpanies Act 2006 relatine to small companies. Company law requires Ihe trustees to prepare financial statements for each financial ycar. Under compani. law the Iruslees musi not approie the financial siatements unless the! are saiisfied that ihc!, gii'c a true and fair 114. ol-the statc of atTairs of the chariiable compan! and of the incoming resources and application of resources. including lis inlome and expenditure. of the charitable compani, for ihat period. In preparitt£ thesc financial statcinints. tlie trustees are required to: sclect suitable accounting policie5 and applv thetn COnSiSi¢ntlv- observe the methods and principle5 in the Charitics SORP- mak'e judgements and estimaies thai are reasonable and prudeni: state i%'hether applicable accounting standardk cotnprisino FRS 102 hai'e been folloived. subje¢t to anfv maierial departures disclosed and explained in the financial statements. and prcparc thc financial statements on the ?oing concern basis unlcs5 it is inappropriate to presume that the chariiable ¢ompan!' ii'ill coniinue in business. The trustees are resw>nsible for keeping proper accounting record5 that can disclose i%'ith reasonable accurac). at any time the tinancial position of the charitable compani. atEd cnable them to ensure ihat the financial statements comply i¥ith the Companies Act 2006. Thei. are also resrx)nsible for safeeuardino the asseis of the charitable Lompan¥ and hcncc lor taking reasonable sieps for the prei'eniion and deieciion offraud and oihcr irrcgularitics. The Irusiees are responsible for the maintenance and inte£ritv of the corporate and financial infomiation included on Ihe charitable compan! s il'ebsite. Legislation governing the prepardtion and disseminaiion of financial statLmeni8 may difler from legislation in oiher jurisdictions. ppr thc stees of ihe charity on 13 December 2024 and signed on its behalf bv: .Ll_ Cha an and trustc¢ Page 6
Paragon Studios Ltd Independent Examiner's Report to the trustees of Paragon Studios Ltd ('the Company,) I repon io ihe ¢hariiy truslees on mv examination of the counts of the Company for the year ended 31 Ma). 2024. Responsibilities and basis of report As the charilN s trust¢e5 of Paragon Studios Lid land also ils direclors lor thc purw)ses of compan!. lai¥,) N'ou are r¢sponsibl¢ lor th¢ preparation ol-lhe accounts in accordance '1th lh¢ requirements ofthe Companics Act 2006 (-the ?006 Aci. l. I lai'ing satisfied m!'5elf that the accounts of Paragon Siudios Ltd are noi Yquired to be audited under Part 16 of the 2006 ALI and eligjible lor independent Lxamination. I retxyri in res1 of m), examinalion of )'our charii>' s aL'Luunis as carried oui ut)der s¢¢iion 65 (2) of ihe Chariiies Aci (Northem Ireland) 2008 ('Ihe 2008 Act'l. In carn'ing oui mi. examinaiion I have followed the Directions given by ihe Charity Commission for Northem Ir¢land under section 6519)Ib) ol'ihe 2008 Acl. Independent examiner's staltment I hav¢ ¥omplLILd examin<ition. I confirn) thal no matters hav¢ come to my artention in wnnection wi(h the exainination gii'ing me cause io believe: acc()untin8 records w¢r¢ nol k¢pt in respeci of Paragon Siudios Ltd required by section 386 of the 2006 Act: or 2. the acL'ounts do nol acwrd with those records; or 3. IhL' a¢counls do rKyI comply ivith the accounting requir¢m¢nts of seciion 396 of Ihc 2006 Aci other than any r¥quirement that ihe accounts give a 'lrue and fair view, which is mt a matler (xjnsidered as part of an ind¥pLndL'nt examinaiion; or 4. thL aLL()ullis hail not en preparLd in accordance wilh ihe mL'ihods and principles of the SialemL'nt of RLYommLnded PraLiice for a¢wunting and reponing bfv charities lapplicable to charities prLparing iheir acLounts in accordance with (he Financial RerA)rting Standard applicable in the UK and Republic of Ireland IFRS 102)]. I have no conccrns and have come acros5 rK) other mailers in conneciion with th¢ examination to which altentiort 5hoLild bL' draivn in this rep)rt in order lo enable a proper understanding of ihe accounts to be reached. imon I lopper. FCA CharlL"red ALLountanl 6 1)()dgh Road BallK'clarL L'o Anirim BT39 9BG 14 De¢emb¢r 2024 Page 7
Paragon Studios Ltd Slatemtnt of Financial Activities for the Year Ended 31 May 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted funds Restricted funds Total 2024 Note Income Endowments from: D()niilions aiid lilaLIty Charitable activitiC5 Other incom¢ 30.1 4.670 2.600 30.1110 212.671 2.6011 208.001 Total income 37.370 208.001 245.371 Expenditure on: Charitabl¢ aLlivili¢5 134.05?) 1168.299) 1?1I2.3511 -roial expenditure 134.05?) 1168.299) l?11?..1511 Nei inLome -rransl¢rs between funds 3.318 (71 39.702 43.11?11 Nei movemeni in funds 3,311 39.709 43.U?V Reconeiliition of funds Toial ILinds broLigh( lon%'ard 12.712 59.?33 71.945 Total fund5 iarri¢d fornard 16 98.94? Restricted funds 114.965 Tot%1 2023 Unreslricted funds Note Income and Endowments from: l)onalivns dnd lLgYILs C'hariiablL activilics Oiher income 32.326 4.960 813 32.326 131979 X13 126.319 Total in¢ome 38.099 126.319 164.418 Expenditure on: CliaritahlL aLiiviiies 137.405) (125.9181 1163..1?.11 '[ oial expenditure 137.405) 125.9181 (163.3231 NLt income Translers between funds 694 191 401 1.095 Net movement in fvnd5 685 410 1.095 Reconciliation of fuNd5 Total lundb broughi lorward 12.027 58.824 70.851 The notes on pages I I to 22 forn) an intcgrdl part of these financial slaternents. Pogc 8
Paragon Studios Ltd Statement of Financial Activities for the Year Ended 31 May 2024 (Including Income and Expenditure Account and Statement of Total Re¢ognised Gains and Losses) Unrestricted Restricted funds Total 2023 Note Toial funds carried forward 16 12,712 59.234 71.946 All ol-lhe chariiy's aL'tivilies derive from continuing operdiions during the above two periods. The funds breakdown is shoivn in TK>ie 16. The notes on pages I I to 22 forni an inlcgral part of these financial statemcnts. Page 9
Paragon Studios Ltd (Registration number: N1029491) Balance Sheet as at 31 May 2024 2024 2023 Note Fixed Asset5 Tangible assets 13 607 Current assets Cash al bank and in hand 14 115.078 71.655 Creditors: Amounts falling dut within one ytir Net current assets 15 17201 114.358 70 1)35 Net a55ets 114.965 71.946 Funds ofthe chrity: Restricted income funds R¢slriit¥d lunds 16 98.942 59.234 Unrestricted income funds LliirLiriLILd lunds 16.023 12.71? Total funds 16 114.965 71.94(? For th¢ finanLial year ending 31 May 2024 ihe charity was enliiled to exemption from audit under seL(ion 477 0l.ihL' (-.ompanies Act 2006 relaiing to small companies. l)ireclors' responsibilities: ThL members havc not rLquircd the charity io obtain an audii of its accounts for th¢ year in qULS1ion in alcorddnce with seLtion 476: and 'rhe direc(ors acknowledge their responsibilities for compljing with the requiremenis of the ALI Miih rLSPL'LI I() accouniing records and ihc preparation of aOnts. ThLSC linancial statLm¢nl% have been prl"par in accordance M'iih (he sp¢cial provisions rL.laling io LompuniLs subjLCt to the small companies regime i%'ithin Part 15 of the Companies Aci 2006. Thc linancial statements on pages 8 to 22 ivere approved b>. the trustees. and authorised for issue on 13 1)ILL'mbLr 20?4 and si ont 11-by- Ra). Cashcll Chairman and Tru51cc Michael Patrick Conlon Trusicc Thc notcs on pages I I to 22 forn) an iniegral part of these finan¢ial stementS. Page 10
Paragon Studios Ltd INotes to the FinancAal Statements for the Year EDded 31 May 2024 I Charity status ThL LharlI is limiied bi. guardntee. incoryrated in Northern Ireland. and consequentlv doc5 not hai'e share capita]. Each ol. the trusiees is liable io contribute an amount not exceeding £1 towards the assets of the charitN' in the eN'ent ol- liquidation. ThL address ol. its reeistered office is: I l Rosctnarv Street Bellast BTI IQA These finan¢ial siatements were authorised for issue by the trustees on 13 December 2024. 2 Accounting polieies Summary of significant aecomnting policies and key accounting estimates ThL prii)cipal accouniing policies applied in Ihe preparation of ihese financia] statements are set out below. Thcse policies have been consistently applied to all the jears prescnted. unless othenvise stated. Statement of eompliance I'h¢ financial statemcnts hai."e becn prcparcd in accordance iN'ith Accounting and Reporting by Charities: Statement ol- Reix)mmended Praciice appliLable io charities preparing their accounts in accordance ¥¥'ith the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland (FRS 102) {effe¢iiv¢ l January 2015) - (Charities SORP IFRS 10?11. the Financial Rewrting Sthndard applicablc in the UK and Republic of Ireland (FRS 102). They also compli. H'ith the Companies Act ?006 and Charities Act (Northem Ireland.) ?008 and 2013. Basis of preparation Paragon Studios Ltd meets the definition of a public bettefit entity under FRS 102. Assets and liabilities are initially recognised at historical cosi or transaction value unless otherwise stated in the relevant accounting policy notes. Pagell
Paragon Studios Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Going concern
Thc linanLial statcments have been preparcd on a going concern basis.
I'he trusiees assess whether the use of going uoncem is appropriate i.c. ,hether there are any material uncertainties
related io evenl5 or condiiions that may cast significant doubt on the abiliti, ot the charity to continuL as a going
concern. The irustees make this assessment in respect of a period of one vear from the date ol. approval ol. the
linancial 51atem¥nls.
In March 2020 ihe charity took st¢ps (in line ivith government advice) io help contain the outbrcak ol- C OVII)-19.
This meani that the charily had io slighil). tyurlail. or Change. hoi%' il operates although the charitw has bLLli ablL to
continue the bulk of ils acti]ll¢S using online serijices and adopling co1 eompliant pr2¢ Cticcs.
The Coi'id crisis mav accelerate the fall in some ol'our income. Our abilitN' lo survik'e the crisis ivill relN on addpting
quickly to this tall in income whilst siriving to build and lind alternatives and doing all i¥'e can to bl r¥
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 May 2024 Charilable aclivilies Chariiable expenditure comprises ihose LOSIS incurred bv ihe charily in the deliverv of its aciivilies and seriJi¢¢s lor it5 beneliciaries. It includes EKJth cosls that can b¢ alloc&ed direcily to such activities and those costs of an indirect naiurL nLcessary io supp)rt ihem. Support ros¢s Support Loqts include Lentrdl functions and have bcen allocated io activity cosi categories on a basis con8isieni i¥'ith IhL USL ol resourcLS. lor example. alloLaiing propert) costs by lloor areas. or per capiw staff costs b}, the lim¢ sp¢nt and other LOSIS by iheir usage. Governance costs 'I'hL'SL illLludL ih¢ costs aiiributable to the Charity's compliance '11h ¢onstitulional and statutory. requiremenis, including audil. stratLgic managemL'nl and iruslees meeiings and r¢imburs¢d ¢xpenses. TxAtion ThL Lharily is Lonsidered to p&8s the les15 set oul in Paragraph I S¢h¢dule 6 ofthe Finance Act 2010 and therefore it mLI'ls (hL dLfinition ol-a charitable company for LIK corw)raiion l&x purw)ses. Accordingly. Ihe charity is poten(ially exLmpt Irom t&xation in rcspcLI ol. incutne or capilal gains rec¢iv¢d w'iihin categorics covered by Chapier 3 Part I I ol- thL (.i)rporation I'ax Act 2010 or Section 256 01. the T&xation of Chargeable Gains Acl 1992. to ihe extent that such income or gains ar¢ appli¢d exclusively to charitable purwses. Tangible fixed sstts Ii)diK iduiil IiiLd a55Lls costing £1.00 or more are iniiially r¢cord¢d ai cosi. less any subsequent accumulaied depr¢¢ialion and subsequent accumulated impairnient1055es. Depreci4tion and mortis¢ion l)LpfL'Liation is proi'idLd on tangible fixed asscis so as io wriie OIT the cost or valuation, less any estimated residual vdlu¥. [)(r IhLir eipLLied u5Lful economic lili #s follows: C8sh and cash equivalents Cash and cash Lquivalents comprisL' cash on hand and call deposils. and oiher short-terni highly liquid invcsiments that are readily conv¢rtible to a known amounl of osh and are subje¢l lo an insignifi¢anl risk ol'change in value. Page 13
Paragon Studios Ltd
Notes to the Financial Statements for the Year Ended 31 May 2024
Borrowings
Intcrcst-btaring knrrowings are initially recorded at fair valve. nei of iransaciion Cosis. Inlerest-bearing borroivings
are subscquentlv carried at amortiSLd cosl. M'iih th¢ ditTerence beii%een the procccds. ncl of Iransaciion costs. and the
amount duc on redemption b¢ing recognised as a charge io ihe Slemen1 of l-inancial A¢livili¥s 0er ihe peri()d of
the relevant borr01ng.
Interest expense 15 rogniSed on ihe basis of Ihe effective inieresi meil)od and is included in int¢r¢sl pa)'able and
Sitnilar Lhargcs.
Borroi¥'ings are classified as current liabilities unless the charitv ha5 an unconditional right io defer seiilement ol'the
liahilitv for at ILast twelve months after th¢ re)nIng dale.
Foreign ex¢hAnee
Tr
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 May 2024 Financial instruments Clas.vificlltion l.'IlldllLial asSLts and financial liabilities are recognised when the charity bccomcs a party to the contractual pri)i.i%lUll% 1)rth¥ in5trum¢ni. Finantyial liabiliiie% and equilj, instruments are classiticd according to tlie substance of the conlractual arrangcmcnts enlLred into. An Lqulty instrumcnt is any contract thdt evidences a r¥sidual interest in the assets ot. the ChltY afier deducting all of its liabilities. Recognition andmeasurement All tinaiicial asscts and liabilities are initially measured at transa¢tion price (including transaction Lostsl, except tor thosc linancial assets Llas5ificd as ai fair value through profil or loss. which arc initially mcasured at fair value Iii,hich is normally the transaction price excluding transaciion costs). unless the arrangement constitutes a tsnancing transaction. I l-an arrangement constitutes a financing transaction. the financial asset or financial liability is measured at the prcsent valuc of the future pa!.ments discounted at a market rate ol. interest for a similar debt instrumeni. Financial assets and liabilitics arc only offset in the staiemenl of financial position when, and only .hCn there exists a Iceall!. enlorceablL right to set oft the recognised amounts and the tyharit}' intends either to scttlc on a net basis. or lo r¢alis¢ thc assct and settle the liability simultaneously. Financial &ssets are derecognised 'en and only when al the contractual rights lo the cash flows frotn thc financial asset expire or are settled, b} the charity transters to another party substantially all of the risks and rewards of oi¥nership of ihe finanLial asset. or c} the charity. despite having retaincd sotne, but not all, significant risks and reardS of oivnership. has (ransferred control of the assct to another party. Financial liabilitics are derecognised only when the obligation specified in the contract is disLharged, cancelled or expircs. Page 15
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 May 2024 Debt inslrumenl. D¢bt instrumcnt5 ivhich tncet the tollowing conditions are subsequently eaSUred at amortised co.81 using the elT¥vlive ini¢resi meihod- (a) 1.he LontraLtual return to the holdcr is {]) a Iixcd ajnount; {ii) a positie fixed rate or a wsitii'e variable rate; or (iiil a Lombination of a positive or a negative tixed rate and a posiiive variable rate. (b) The coiitract ma). provide tor repal'ments of the prinLipal or the return to the holder (but not both) to be linkLd to a %ingle relean1 obserl'able indcx ol. general price inllation of the ¢urr¢n¢y in which the dcbt instrument is denominated. provided such links are not Icvcrag¢d. Icl Thc contrdct ma). provide for a determinable variation of the return to the holder during the life of the instrumeni. proi.ided that lil Ihe nci¥' ratc satisfies condition (a) and the variation is noi contingcnt on tutiirc cvcilts othLr tlian I I I a change of a contractual variable rate,. (2) to protect the holder against credit deterioration ot. the i88uer', {31 chang¢s in Icvics applicd by a central bank or arising from changes in relevant t&xation or laiv; or (li} the neiv raie is a markct ratc of iiitcrtst and satisfies condition (a). Id} l-hcrc is no coiitractual provision that could. by it8 terms, result in the holder losing the principal amount or any intLrcbt attributablc to the cuThent pcriod or prior periods. lel CuntraLtUdl proi.isions that pcrmit the issucr to prcpav a debt insirument or permit th¥ holder to put it back to thi issuer before maturity are not contingent on future ci'ents, other than to proteLt the holdcr agdinst IhL cfLdii deterioration of ihe issuer or a Lhangc in control ot thc issuer. or to proteci the holder or i55Utr against changLs in leillies applied by a central bank or arising from changes in relei'ant taxation or law. 11) Contractual provisions may permit the extension of the iemi of the debt instrument. providcd that the return lo the holdcr and any other contractual provisions applicable during the extended tcrm satisty the conditions ol- paragraphs la) to {c). Debt instruments that are classified as payable or receivable 1th]n one vear on initial recognition and whilh meLt the abovL condilions are measured at the undiscounted amount of the cash or other consideration expe¢iid io be paid or rccLivcd. nit ol. impairment. With tliL Lkception af .8ome hedging instrum¥nls. other debt instruments not meeting these conditions are measurcd at lair illaluc through profit or loss. Commitments to make and receive loans ivhich meet the conditions mentioned above are measured ai Lost (i%.hiLh ma}, bL nil) less impairment. Inveslments Ini'esimenis in non-¢onvertible preferenL¢ shares and non-puttablc ordinary or preference shares IM.here shares arc publiclN tradcd or their fair value is reliably me&8urablel are measured at tair value through profit or loss. Where lair valuc cannot be mcasured reliably. inveslments are measured at cost Icss impaim)ent. Ini'esimenis in subsidiaries and a55ociatcs arc Tncasurcd at cost Icss impaimient. For inve8tm¢nts in 8ub.%Édiarics acquircd lor considcration including the i$8ue of shares qualifying lor mcrger relief. cost is measured bv relerenLI to thc nominal valuc of thc shares issued plus tair value of other consideration. Any preTniutn is ignored. Page 16
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 May 2024 Derivalivefinoncial insirnments ThL charl. uses derivatiie financial instrutnenls to reduce cxw)sure (o fo]gn exchange risk and interest rate movements. The charity does not hold or issue derivatile financia] instruments for speCUl1ve purposes. D¢rivali¢S are init11. recognised at fair value at the datc a derivative contract is entered inio and are subsequentl). remLasured to their fair i'alue at each retM)rting dc. The resulting gain or loss is recognised in staiement ol. financial actii'itlLS immediaieli. unless the deriat11't is dcsignaied and etTectii"e as a hedging instrument. in iihich event the timing ol'thc recogniiion in statemcni of financial aciiiiiies depends on the nature of the hedge rclationship. Fair vulue meu5uremeni The besi evidence ol fair valu¢ is a quoted price for an identical asset in an active markeL When quoied prices are unai'ailable. the price of a recent tyan&Yiion for an identical asset proi'ides evidence of fair value as long as there h(15 not bccn a signifiLant change in economic ¢ir¢umstances or a significant lapse of iitne since the transaction look plaLC. 11-the market is not actii"e and reLeni transaciions of an identical asset on their oi¥'n are not a good cslimate of fair value. the fair value is estimated bv using a valuation technique. 3 Income from dotyations and legacies Unrestricted funds General Total fund5 Donaied sernices and faciliiies 30.1 30.100 Total for 2024 30.100 30.100 Total for 2023 32.326 4 Income from charitable ctivities Unrestricted fvnds General Restricted funds Total funds Studio operating costs Art% C.ounLil Bellast C.ilN Council lJniversit) of Ulster l.-reclands NeLtssii Bellast 20?4 Artists Assemblv 4.670 4.670 19.033 18.077 21.273 16.736 10.000 11.389 7.493 4.000 19.033 18.077 21.273 16.736 10.0 111.389 7.493 4.000 HareJ' -frus1 Total for 2024 4.670 208.001 212.671 Page 17
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 May 2024 Unrestricted fllnds General Restricted funds Total fund5 Total for 2023 4.960 126.319 lJl.279 5 Other income Unrestri¢ted funds GeRerAI Total fllnds Fees and supplies 2.600 2.60U Total for 2024 2.600 2.600 Total for 2023 813 813 6 Expenditure on raising funds 7 Expenditure on charitable activities Unrestricted funds Genernl Restricted fund5 Total funds Studio operating costs Arts Council N.1 Beltast City Council Unii'ersitj. of Ulster Frcclands British Council Thc Imac Esme MitLhell Nccessit Beifasl 2024 Artists Asscmbly HareV Trust D¥prcciation and amortisation Governance cosis 34.052 34.052 20.929 20.821 20.956 27.613 4.000 7?6 1.749 2.182 56.579 7.ioo 4.000 404 840 20.929 20.821 20.956 27.613 4.000 726 1.749 2,182 56.579 7.500 4.000 4114 840 Total for 2024 34.052 168.299 202.351 Total for 2023 37.405 12i.918 163.323 Page 18
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 May 2024 TotAI expenditure In addilioi) lo the expenditure analyqed above. there are also gov¢rnanLe costs 01. £840 12023 £7801 which relate diriLilI' Ii) chariiablL (i¢livili¥s. note 8 lor lurther details. 8 Anfilysis of governance And support costs GovernAnce costs Restricted funds Total funds IndLPLI)dLni L'xdminLr lie% .xaininali()11 i)I' Ihi linanuial stal¢menls 840 11411 Total for 2024 840 1140 Total for 2023 780 71111 Page 19
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 May 2024 9 Net incomingloutgoing resources Nei inLoming rLsourLL5 toi. th¢ year include.. 2024 2023 epreciation DI. lixed assets 404 404 10 Trustees remuner*tion and expenses No Irusl¢es. nor any persons Lonn¢¢ted with Ihern. have reLeived any rcmuneralion from th¥ charilv during Ihe year. No trustccs hav¥ received any reimbursed Cxpenscs or any oiher benetits from the charity duriiig th¥ v¢ar. I I Independent examiner's remuneration 2024 2023 Examinali()n ol'ihe linanLial slalemenis 840 78n 12 TAxation Th¥ (harily is & registLred Lharity and is IherLlor¢ exLmpl Irom luxalion. 13 Tnngible fixed fissets Furnitllre and equipment Tot41 Cost Ai l June 2023 3.516 3.516 At 31 Ma> 2024 3.516 3.516 Depreiiation Ai l JunL 2023 Charge lor the year 2.5U5 404 2.505 404 At 31 Imav 2024 2.909 2.909 Net book value At 31 May 2024 607 ()07 Ai 31 May 2023 Page 20
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 May 2024 14 Cash and eash equivalents 2024 2023 Cash ai bank 115,078 71.655 IS Creditors: amounts falling due within one year 2024 2023 Accruals 720 720 16 Funds Balance at 31 May 2024 Balance at I June 2023 In¢oJning resources Resources expended Transfers Unrestricted General LlnrLStricted 12,712 37,370 134.0521 16,023 Restricted Arts C.'oiincil Nl Bcltast Lit Council Unii'ersity ot Ulslcr F reelands Bi'ili5h c.ouncil I'he Mac L5nic MitLh¢ll NLcessity B¥llast 2024 Arti818 Assembl! Harvey -l-rust 17,200 6.859 3,204 11,640 12,147 2.183 6,000 19.033 18.077 21.273 16,736 122,1731 120,8211 120.956) (27.613) (4.000) (726) (1.749) (2.182) 156.5791 (7.500) 14.000) 14,060 4.115 3.521 763 8,147 .457 4,251 7.818 54,810 i 0,000 11,389 7.493 4,000 Total restricted 59,233 208,001 1 I68,299} 98.942 Total funds 71,94) 245,371 1202.351) 114.965 Page21
Paragon Studios Ltd Notes to the Financial Statements for the Year Ended 31 May 2024 Balance at 31 laV 2023 Balance at I June 2022 Incoming resourees Resources expended Transfers Unrestricted funds General Ilnr¥Stricted 12,027 38,099 (37,4051 {91 12.712 Restricted Arts L oiincil Nl Bclfast C"itN Council Llni*ersitN' ol- Ulster Frcclands British Council Thc Mac Esme Mitchell Elephant Trust C.ai'ehill Primar}, School 6.969 6.000 318 7.740 35.297 2,500 18.881 13,627 21.919 62.892 18.6501 112.768) 119.033) (58.992) 123.149) 1317} 17.200 6.8)9 3.204 11.640 12.148 2.IS3 6.OOU 6.000 2.000 1.000 12.072) 1937) 72 163) Total restricted funds 58.824 126.319 1125.9181 59.234 Total funds 70.851 164.418 1163.3231 71.946 17 RelAted party transactions Page 22