Charity number: NIC103703 Company number: N1032276 THE NERVE CENTRE LTD (A company limited by guarantee) Direetors, report and financlal statements for the year ended 31 March 2023
THE NERVE CENTRE LTD (A company limited by guarantee) Contents PY4ge Legal and administrative infomiation Directors, report Auditors, report 9-13 Statement of Financial Activities 14 Balance sheet 15 Statement of Cash Flows 16 Notes to the Financial Statements 17-27
THE NERVE CENTRE LTD (A company limited by guarantee) Legal and admlnistrative information Directors John Mc Gowan Tess Maginess Michael Hamlyn Andrew McAfee Shauna Kelpie Edward Friel Trustees Kathy Gilfillan Anthony Dolierty Secretary Pearse Moore Rtgfistercd offite 7-8 Magazine Street Deny BT48 6HJ Company number N1032276 Charlty number NIC103703 XR20210 Auditors McGroaty Mccafferty & Company Accountants & Registered Auditors 2 Carlisle Terrace Derry BT48 6JX Bankcrs Bank Of Ireland 27 Culmore Road Derry BT48 8JB Nationwide Building Society I l Ferryquay Street Derry BT48 6JN Solicitors Desmond J Doherty & Company 4 Ballougry Road Derry BT48 9XJ Pagc I
THE NERVE CENTRE LTD (A company limited by guarantee) Directors Report for the year ¢nded 31 March 2023 The dire¢tors pr¢sent tlieir annual report and the audited financial statements for the year ended 31 March 2023. Directors and thelr Interests The directors of the charity for the purposes of charity law and who Served during the year were as follows: Andrew McAfee Michael Hamlyn John M¢ Gowan Shauna Kelpie Tess Mc Maginess Edward Friel Principal activlty The principal activity of the company in the year under review was that of running a multimedia arts centre. Structure? governance and management Governin Document The Nerve Centre is a company limited by guarantee and established under a Memorandum of Association which established the objects and powers of the charitable company and is governed by its Articles of Association. It is a registered charity with the Charity Commission. Recruitment and A ointment of the B f Directors The directors of the company are also charity trustees for the purposes of charity law and under the compllny's Articles are known as members of the Board. At the Annual G¢neral Meeting one third of directors retire in rolation and being eligible offer themselves for re-el¢ction. 2Y Risk Mana ement The directors have a risk manag¢ment Strate which consists of establishin8 a system of identifying risks and mitigating such risks. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Statement of disclosure of Informatlon to audltors We, the directors of the company who held otTice at the date of approval of tliese Financial Statements, as set out above, each confirm so far as we are aware, that: there is no relevant audit infonnation of which the company's auditors are unaware; and we have taken all the steps that we ouglit to have taken as directors in order to make ourselves aware of any relevant audit inforniation and to establish that the company's auditors are aware of tliat inforniation. FlnanclAI Rovlcw Budgelary controls and constant reviews of all expenditure continue to be implemented this period and have not hindered business of Tlie Nerve Centre in achieving their primary purpose. Controls taken at the management level will continue to the coming financial year with continous monitoring throughout. The financial uccounts show a surplus of £273,248 with reserves of £3,569,396. Princi al Fundin Sourceg The principal funding sources over the relevant financial year have been Nl Screen, Arts Council of Northem Ireland, British Film Institute, Derry City & Strabane District Council, SEUPB, South West College, Heritage Lottery Fund, Festival 2022 and Paul Hamlyn Foundation. The company maintains a strong relationship with its funders and have secured funding ivith them for the foreseeable future. Page 2
THE NERVE CENTRE LTD (A company limited by guarantee) Chairperson's Foreword This year lias been an unprecedented year for creative programming at the Nerve Centre with our Unboxed project with Oliver Jeffers, Our Place in Space, dominating the year. This large scale sculpture trail launched in Derry in April 22 breaking a world record for the largest number of astronauts in the one place, before moving to Belfast in June. Cambridge in August, Liverpool in October before returning home to Cultra in February 2023. At each location the trail included a full education programme including online resources for schools, an interactive app and animation programme of events, festivals and workshops. Our Place iii Space was one of the best perfonning of the Unboxed Festival projects with audiences in excess of I million aiid at the time of writing our Augmented Reality App and Minecraft World has been downloaded over 3 million times across 150 Countries. We also engaged over I million at the 4 locations. 156,000 attended events and 28,000 students took part in educational aspects of the project. This large scale project was additional to our regularly funded activity supported by our Gore funders. Our largest funder, Northern Ireland Screen, Continued to provide their annual support for our film festival, reative learning centres, academies, film clubs and exhibition programming. Nerve Belfast moved into tlie new location at W5 in Belf&st with Nerve Belfast delivering a variety of STEM training programm¢s during August and Sept¢mb¢r including sessions in coding and Min¢¢raft. At tl)e ei)d of the year Nerv¢ Belfast hosted a free full-day series of events on Tuesday 21 February 2023 to otTicially launch th¢ir new training facility Within W5 LIFE with a symposium on film education. Tlie centre-piece of the symposium was the public launch of the Shortcut website and learning programme which makes freely available 20 European short films exploring sensitive and challenging social issues wliich are iinpacting negatively on tlie physical and mental liealth of young people. Our delivery would not have been possible witliout the support of all our CO funders such as Dery City and Strabane District Council (who support core building costs and the Annual Foyle Film Festival), Belfast City Council and Community Relations Council. Meanwhile back in Derry, Foyle Film Festival celebrated its 35th year and a decade-long partnership with Brunswick Moviebowl. Audiences were great for the festival with over 25 sold out events of the 80 screenings and events which took place at the festival. FestIval favourites Cinematic Breakfasts and Dementia Friendly Screens rethrned with some all-time classics - and this year we welcomed our first collaboration with Foyle Foodbank - offering a series of Foodbank Screens supporting the local community, the public are encouraged to donate much-needed items to the foodbank instead of the usual ticket fee. Page 3
THE NERVE CENTRE LTD (A company limited by guarantee) .continued In February we relaunched our regular cinema screenings at the Nerve Centre committing to every Wednesday and Thursday night. Audiences have been gr¢at and the programming has been excellent as a resLIIt of the n¢iv DCP projector which allows us to get the most recent releases. In March, we delivered both the Reel Lives Film Festival and Schools Film Week with additional support from Northern Ireland Screen. Our music activity including gigs, music courses and music facilitie5 also began to return to normal with courses, gigs and CaDi programmes. We continued to provide many live perfonnances in our venue showcasing local perforniers and international acts as well. In a major coup Nerve Centre booked Bell X I for a show at the Derry Jay2 Festival in May 2022. The show was the smallest venue on the tour and sold out within minutes. Arts Coiincil Nl provided core funding for music activity and capital funding to enable us to Cater for our music programme including live events and music Hothouses provide equlpment to be able to do tliis and adapt our spaces. Our delivery would not have been possible without the support of all our core funders such as Deny City and Strabane District Council (who support core building costs and th¢ Annual Foyle Filin Festival), Belfast City Council and Community Relations Council. Nerve C¢ntre was abl¢ to continue to provide car¢¢r opportunities for young people in the s¢r¢en and creativ¢ industries including the BFI Film Academy, BFI Venue Education Fund, Miisic Hothoiise, Bandcainp and CADI programmes. The Reimagine, Remake Project also had another productive year. The project's vision is that through the energy and imagination of young people, combined with digital creativity, it will create a new dynamTC in tli¢ exploration and interpretation of collections held by museums, and create sustainable models for long- term youth engagement. In June 2022 Young People on the Reimagine Remake Replay project launched their aiigmented reality exhibition at the Ulster Museum. Created over a four week period, local 16 25 year olds were challenged to learn new skills such as illustration and animation to produce an entirely new view on our sliared heritag¢. In this exciting exhibition, visitors could uncover illustrations, animations and voice overs that give a fresh coat of digital paint to Mid Antrim Museum's iconic object wall. Tt is with sadness that the Reimagine Remake Replay project came to an end in November 2022. Lastly, our 10 year grant from the Paul Hamlyn Foundation continued to provide ihe core support for tlie organisation providing a stability and programme resource for the organisation to develop new ways of thinking and seed fund projects at a very early stage. John McGoivan Chairperson Page 4
THE NERVE CENTRE LTD (A company limited by guarantee) Aetivity Report 2022123 Northern Ireland Screen continue to be the largest funder of th¢ Nerv¢ Centr¢ supporting creative learning centres in Derry aiid Belfast, exhibition programme including Foyle Film Festival and Film Clubs. Their funding makes a strategic intervention in the film sector ecosystem crossing between industry, education and exhibition. The Nerve Centre delivers our education, training and participation programmes both at the Nerve Centre and also via our network of Creative Learning Centres in Derry and Belfast, During the period with NI Screen funding Nerve Centre continued the highly successful Acadmies in Aniiration, Production Design and Gaming providing career opportunities for 16 - 19 year olds in the screen Nerve Belfast moved into the new location at W5 in Belfast with Nerve Belfast delivering a variety of STEM training prograiiimes during August and Sepiember including sessions in coding and Minecraft. At the end of the year Nerve Belfast hosted a free full-day series of events on Tuesday 21 February 2023 to officially launcli tlieir new training facility Wlthin W5 LIFE witli a symposium on film education. Foyle Film Festival celebrated its 35th year and a decade-long partnership with Brunswick Moviebowl. Audiences were great for the festival with over 25 sold out events. Foyle Film Festival is one of only a handful of intemational film festivals with Oscar affiliation and BAFTA recognition. The festival, which is a flagship project of the Nerve Centre, offers filmmakers, animators and artists a unique platforn] to screen their films, nctwork with industry prof¢ssionals and gain acc¢ss to the intemational market. In February w¢ r¢launched our regular cinema screenings at tlie Nerve Centre committing to every Wednesday and Thursday niglit. In March, we delivered both the Reel Lives Film Festival and Schools Film Week with additional support from Northern Freland Screen. Nerve Centre has also bullt a reputation as an organisation tliat provides opportunities for new bands and artists in Northerii Ireland. We continued to provide many live perfonnances in our venue showcasing local perfomiers and international acts as well. In a major coup Nerve Centre booked Bell Xl for a show at the Derry Jazz Festival in May 2022. The show was the smallest venue on the tour and sold out within minutes. Arts Council Nl provided core funding for music activity and capital funding to enable us to Cater for our music programme including live events and Inusic Hothouses provide equipment to be able to do this and adapt our spaces. Our delivcry would not have been possible without tlie support of all our core funders such as Detry City and Strabane District Council (wlio support core building costs and the Annual Foyle Film Festival), Belfast City Council and Community Relations Council. In addition, our l O year grant from the Paul Hamlyn Foundation continued to provide the core support for the organisation providing a stability and programme resource for the organisation to develop new ways of thinking and seed fund projects at a very early stage. Page 5
THE NERVE CENTRE LTD (A company limited by guarantee) Nerve Centre continued to provide career opportunities for young p¢opl¢ in the screen and crecltive industri¢s including Musi¢ Hothouse, Bandcamp and CADI programmes. We also d¢liver¢d over 40 full-time places during the year and provid¢ equipm¢nt to support online and blended learning. By working in partnership with South West College we were able to offer these full-time places during the year in full time creative media courses. These courses are the backbone of th¢ Nerve Centre, enabling us to develop the indigenous skills necessary to sustain a local music, multimedia and film/video-making industry. BFI increased their support of the Nerve Centre by also providing funding from their BFI venue education fund as well as the BFI Fllm Academy which we have been delivering on an Nl wide basis for l O years. In July 2022 we delivered the Script Development Lab which provided an excellent chance for young filmmakers to network with industry experts and meet possible fuiure collaborators. Participants were guided by three industry mentors and collaborate on the crelltion of a brand-new short film screenplay. A screenplay that might lielp get that all important first professional credit. Throughout the course PRrticipants received exclusive mllsterclasses from leading TV and film indiistry professionals. Adam Patterson and Declan Lawn are aboard this year. This writing duo scripted the critically acclaimed BBC drama The Salisbury Poisonings and the Simon Pegg helmed Cliannel 4 drama The Undeclared War. The Reimagine, Remake Project also had another productive year and came to a close in Noveinber 2022. The proje¢t's vision is that through th¢ ¢n¢rgy and imagination of young people, Combined with digital crelK tivity. it will create a new dynamic in the exploration and interpretation of collection5 held by museums, and crcate sustainable models for long- terni youth engagement. In June 2022 Young People on the Reimagine Remake Replay project launched their augmcntcd reality exhibition at the Ulster Museum. Created over a four week period, local 16 - 25 year olds were cliallenged to learn new skills such as illustration and animation to produce an entirely new view on our sharcd heritage. Reimagine, Remake, Replay was funded through the Heritage Lottery Fund's Kick the Dust Programme. Tlie project was led by the Nerve Centre with partners National Museums Northern Ireland, Northern Ireland Museums Council and Northern Ireland Screen. The centrepiece of this year was our Unboxed project with Oliver Jeffers, Our Place in Space. This large scale sculpture trail launched in Derry in April 22 breaking a world record for the largest number of astronauts in the one place, before moving to Belfast in June, Cambridge In August, Liverpool in October before returning home to Cultra in February 2023. At each location the trail included a full education programme including online resources for schools, an interactive app and animation programme of events, festivals and workshops. Page 6
THE NERVE CENTRE LTD (A company limited by guarantee) Our Place in Space was one of the best perforn]ing of the Unboxed Festival projects with audiences in excess of I million and at the time of writing our Augmented Reality App and Minecraft World lias be¢n downloaded over 3 million times across 150 countries. We also ¢nga8cd over I million at the'4 locations, 156,000 attended events and 28,000 students took part in educational aspects of the project. News on all our Current workshops and Events can be found at:. https:Ilwww.nervecentre.org Directors Responsibilities in Relation to The Financlal Statements The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the directors to prepare financial statements for each financial year. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of tlie state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the directors are required to: select suitable accounting policies and apply them consistently; observe the methods and principles in the Cliarities SORP 2019 (FRS 102): Inake judgements and estimates that are reasonable and prudent: state wlietlier applicable UK and Accounting Standards have been followed. subject to any material departures disclosed and explained in the financial stateinents. prepare the financial stat¢m¢nts on the going concern basis unless it is inappropriat¢ to pr¢sum¢ that the charity will continue in business, The Board is responsible for maintaining proper accounting records that are suffi¢ient to sliow and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with Companies Act 2006. The Board is also respoiisible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In accordance witli company law, as the company's directors, we ¢¢rtify that: So far as we are aware, there is no relevant audit information of which the company's auditors are unaware; and as tlie directors of tlie company we have taken all steps we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the charity's auditors are aware of that infonnation, Audltor's- McGroarty Mccafferty & Company are deemed to be reappointed in accordance with Section 487 (2) of the Companies Act 2006. Tliis report is prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Page 7
THE NERVE CENTRE LTD (A company limited by guarantee) The financial statements are approved and authorised for issue by the Board of Directors on I l December 2023 and signed on it's behalf by; Dlrector Direetor keie Page 8
THE NERVE CENTRE LTD (A company limited by guarantee) Independent auditor's report to the directors of THE NERVE CENTRE LTD Opfinion We have audited the financial statements of THE NERVE CENTRE LTD for th¢ year ended 31 March 2023 whicli cotnprise the Statement of Financial Activities, the Balance Sheet, the Cashflow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland Thi5 report is made solely to the charitable company's directors, as a body? in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable ompany's directors those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable compaiiy and the charitable company's directors as a body, for our audit work, for this report, or for the opiiiions we liave forined. In our opiiiion the financial statements: give a true and fair view of the state of the charitable company's affairs as at 31 March 2023, and of its incoming resource5 and expenditur¢ of resources. including its income and expenditure, for tlie year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practic¢. and hav¢ b¢en prepared in accordance with the requirements of the Compani¢s A¢t 2006. Basis for opinlon We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of tlie fiiiancial stateinents section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Etliical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe tliat the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to going concern In auditing the financial statements, we have concluded that the directors, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not Identified any material unccrtainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Page 9
THE NERVE CEINTRE LTD (A company limited by guarantee) Other information The directors are responsible for the other inforniation. The other inforniation comprises the inforniation included in the directors, annual report, other than the financial statements and oiir auditor's report thereon. Our opinion on the financial statements does not cover other information and, except to the extent otherwise explicitly stated in our report, we do not express any forni of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other inforniation and, in doing so, consider whether the other inforniation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such inaterial inconsistencies or apparent material misstatements, we are required to deterniine whetlier there is a material missiatement in the financial statements or a material misstatement of the other information. If, based on the work we have perfonned, we conclude that there is a material misstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescrlbed by the CompAnies Act 2006 In our opinion based on the work undertaken in the course of the audit: the infortnation given in the Directors, Annual Report for the financial year for Nvhich the financial statement5 are prepared is consislent with the financial statements. and the Dir¢¢tors Annual Report has been prepared in accordance with applicable Icgal r¢quir¢m¢nts. Matters on whlch we are required to report by ex¢¢ption In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors Annual Report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting record5 have not been kept; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of directors, remuneration specified by law are not made; or we have not received all the inforniation and explanations we require for our audit; or the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption from the requirement to prepare a strategic report. Page 10
THE NERVE CENTRE LTD (A company limited by guarantee) Responsibilities of the directors As explained more fully in the Directors, Responsibilities Statement set out on page 7, tlie directors (who are also the directors of the cliaritable company for th¢ purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a tru¢ and fair view, and for such internal control as the directors detern]ine is necessary to enable the preparation of financial statements that are free from material misstatement, wheilier due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the charitable company's ability to continue as a going concern, disclosing> as applicable. matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the charitable company or to cease operations, or have no realistic altemative but to do so. Auditor's responslbllltles for tho audit of tho finan¢ial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, wlietlier due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but 15 not a guarantee that an audit conducted in accordance with ISAS (U K) will always detect a material misstateinent when it exists. Misstatements Can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the econotnic decisions of users taken on the basis of these financial statements. Explanation as to what extent the audlt was consldered capable of detecting irregularities, including Irregularities, including fraud, are instances of non-complian¢¢ with laws and regulations. We design procedures in line with our responsibilities, outlined above, to d¢t¢ct material misstatements in respect of ic8U1ar1ties, including fraud. However, the primary responsibility for the prevention and detection of fraud lies with management and tlie board of directors of the charitable company. Identifying and assessing poteDtlal rlsks rolated to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: the nature of tlie industry, sector and the specific control environment which it operates in; the cliarities own assessment of the risks that irregularities may occur, eitlier as a result of fraud or error. representations and results from our enquiries with management and the board of directors regarding their own identification and assessment of tlie risk5 of irregularities. enquirieg of manag¢m¢nt relating to accounting estimates measurements, recognition criteria and justification of such amounts. aiiy matters we have identified liaving obtained and reviewed the Charities policies and procedures relating to; * identifying and assessing if laivs and regulations are compliant and whether they are aware of any instances or non-compliance. * detection and response to the risk of fraud and whether they are aware of any actual, suspected or alleged fraud instances. * the internal controls designed to mitigate risks or fraud or non-compliance with laws and regulations, and to minimise risk of management overrides of such controls. Page 11
THE NERVE CENTRE LTD (A company limited by guarantce) all matters discussed among th¢ audit engagement team regarding how and ivhere fraud could occur and the potential indicators of fraud. As a result of these procedures. we considered the opportuniti¢s and incentives that may exist witliin tli¢ charity for fraud. The audit included assessing the procedures and evaluating the measurement of eslimations. In common with all audits under ISA5 (UK), we are also required to perfom] specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks applicable to tlie charity and considered that the most significant are the UK Companies Act 2006, SORP 2019 (FRS 102) and Charities Act (Northern Treland)2008. Audlt responses to risks identified Our procedures to respond to risks identified included tlie following: reviewing the financial statement disclosures, testing the relevant documentation to assess compliance with ilie significant laws and regulations - those described as having a direct effect on the financial statements. enquiring with management and obtaining third paty confirniation from the Charities Solicitors regarding any actual or potential litigation and claims; perforn]ing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. reading minutes of board and management meetings, examine forccasting material in line witli actual performance, identifying any potential fraud indicators or instances. reviewing Companies House and Charity Commission Northern Ireland correspondence, idcntify any late submissions or omissions of mandatory information; review correspondence with HMRC. identifying non compliance of specific information to be disclosed; in addressing the risk of fraud through management override of controls. testing the appropriateness of data entries and adjustments; assessing whether the jiidgements made in making accounting estimates are indicative of a potential bias; and evaluating the rationale of any significant transactions that are unusual or outside the normal course of the Charities objectives. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit. As part of an audit in accordance with ISAS (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provlde a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgcry9 int¢ntional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charitable company's internal control. Page 12
THE NERVE CENTRE LTD (A company limited by guarantee) Evaluate the appropriateness of accounting policies us¢d and the reasonableness of accounting estimates and related disclosures made by the directors. Conclude on the appropriateness of the directors, use of the going concern basis of accounting and, based on the audit evidenc¢ obtained. whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we ¢on¢lude that a Inaterial uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in tlie financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor's report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. -Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and tiininE of the audit and significant audit findings, including any Significant deficiencies in internal control that we identify during our audit. erty Senlor Statutory Auditor for and on behalf of McGroarty Mccafforty & Company Statutory Audfitor 2 Carllsle Terrace Dorry BT48 6JX Dated: 11 December 2023 Page 13
THE NERVE CENTRE LTD (A company Iimited by guarantee) Statement of Financial Activities ror the year ended 31 March 2023 Unrestricted Funds Restrictod Funds 2023 2022 Income and Ei xpenditure Incoming Resources Grants & Sundry Income 3,899,348 1,715,019 5,614,367 4,620,811 Total Incoming Resources 3,899,348 1,715,019 5,614,367 4,620,811 Resources Expended Management & Administration Total Resources Expended 3,586,781 1,754,338 5,341,119 4,404,387 3,586,781 1,754,338 5,341,119 4,404,387 Net Incoming l (Outgoing) Resources 16 312,567 (39,319) 273,248 216,424 Gains/(losses) on revaluation of fixed assets 30,790 312,567 (39,319) 273,248 247,214 Balances brought forward l April 2022 2,300,393 995,755 3,296,148 3,048,934 Balances carried forward 31 March 2023 2,612,960 956,436 3,569.396 3,296,148 All of the above amounts relate to continuing activities. There are no recogni5ed gains and losses other ihan ihose included in the results above and therefore no separate statement of total recognised gains and losses has been presented. There is no difference betsveen the net incoming resources for the year stated above and their historical cost eouivalents. Page 14
THE NERVE CENTRE LTD (A company limited by guarantce) Balance sheet as at 31 March 2023 2023 2022 Notes Fixed assets Tangible assets Investments 1,977,264 636,180 2,040,876 674,069 2,613,444 2,714,945 Current assets Debtors Casli at bank and in hand 10 419,031 3,135,687 1,255,554 2,671,055 3,554,718 3,926,609 Current liabilities Trade creditors Bank loans and overdrafts Other creditors Accruals 185.338 7,134 334,880 134,711 135,176 4,675 1,053,289 174.148 11 662,063 1,367,288 Net current assets 2,892,655 2,559,321 Total assets less eurr¢nt Ilabllltles 5,506,099 5,274,266 Long-tenn liabilities 13 (400,000) (400,000) Net assets 15 5,106,099 4,874,266 Financed By Unrestricted Funds Restricted Funds Revaluation Reserve Capital Grants 15 15 16 17 2,582,170 956,436 30,790 1,536,703 2,269,603 995,755 30,790 1,578,118 5,106,099 4.874,266 These accounts hav¢ been prepared in accordance with the special provision5 of Part 15 of the Companies Act 2006 and the Charities SORP 2019 (FRS 102). The Financial Statements were approved and authorised for issue by th sigiied on its behalf by ard on I l December 2023 and Director Company Number: N1032276 Director as4[21) RIÈL JoiihJ AQL- Page 15
THE NERVE CENTRE LTD (A company limited by guarantee) Statement of Cash flows as at 31 March 2023 Note 2023 2022 Operatlng Actlvities Net incoming l (outgoing) resources for the year Depreciation and impaimient (Increase)/ decrease debtors (Decrease) l increase in creditors 273,248 63,612 836,523 (705,225) 216,424 64,756 (518.632) 307,023 Nct cash Intlow from operating activities 468,158 69,571 Financing Actlvltles Loss on investments Capital grant relased Investments 37,889 (41,415) 38,856 (41,415) 712,925 IncreAse In cllsh in the year 464,632 (645,913) Reconcfillatlon of net cash flow to movement in net funds Increase in cash in the year Net funds at l Aprll 2022 464,632 2,671,055 (645,913) 3,316,968 Net funds at 31 March 2023 18 3,135.687 2,671,055 Page 16
THE NERVE CENTRE LTD Notes to the accounts for the year ended 31 March 2023 General information The charity is a private limited company by guarantee, registered in Northern Ireland and a registcred charity in North¢m Ir¢land. The address of the regist¢r¢d otTice is 7-8 Magazine Street, Derry, BT48 6HJ. The company changed its name to The Nerve Centre Ltd on 31 October 2023. 1.1. A¢¢ountlng conventlon The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within tlie saine accounts. The charity constitutes a public benefit entity as defined by FRS102. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with tlie charity's governing document, the Charities Act (Northern Ireland) 2008 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 published in October 2019 (SORP 2019) and the Companies Act 2006. The financial statements are prepared on a going concern basis under the historical cost convention, modified to included certain items at fair value. The financial statements are presented in sterling wliich is ilie functional currency of the charity. 1.2. Incoming resources All incoming resources ar¢ includ¢d in th¢ SOFA when the charity is legally entitled to the income and the ainount can be qualified with reasonable accuracy. The following specifi¢ policies are applied to particular categories of Income: Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific perfomiance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included. Gifts donated for resale are included as incoming resources within activities for generating funds when they are sold. 1.3. Resources expended All expenditure is accounted for on an accruals basis as a liability is incurred and has been classified under headings that aggregate all costs related to the category. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Page 17
THE NERVE CENTRE LTD Notes to the accounts for the year ended 31 March 2023 1.4. Fund accounting Unrestri¢t¢d funds are available for use at the discretion of the trustees in furtherance of the general objectivos of the charity and which have not been designat¢d for other purposes. Restri¢t¢d funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. Tl)e cost of raising and administering such funds are Charged against the specific fund. 1.5. Tanglble fixed assets and depreciation Land and buildings are carried at a revalued amount, being its fair value at the date of revaluation less subsequent deprcciation and impaimient, provided that fair value can be measured reliably. Tangible fixed assets classified under the headings equipment and motor vehicles are valued at cost less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less residiial value of each asset over its expected useful life, as follows: Land and buildings Fixtures, fittings and equipment Motor vehicles 20/0 Straight Line 200/0 Strkight Line 20% Straight Line 1.6. Investments Investments ar¢ initially r¢¢ord¢d at cost, and subsequently stated at cost less any acciimulated impairm¢nt losses. 1.7. Cash at bank Cash at bank and cash equivalents are stated at Cost at the financial year end. 1.8. Capltal grants Capital grants are received in respect of purchase of fixed assets a portion of whicli is released to the statement of financial activities in the year of receipt. 1.9. Debtors & creditors Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairnient are recognised in expenditure. 1.10. Company status The charity is a company limited by guarantee and does not have a share capital. 1.11. Pension ¢ostS Contributions to auto enrolment pension schemes are recognised as an expense in the period in wliich tlie related service is provided. 1.12. Redundancy costs Redundancy costs are recognised as an expense in the period ivhen the employment contract in question was temiinated. Page 18
THE NERVE CENTRE LTD Notes to the accounts for the year ended 31 March 2023 1.13. Going concern Tli¢ financial stat¢m¢nts have b¢¢n prepared on a going con¢¢rn basis as the dir¢¢tors believe that no material uncertainties exist. The directors have consid¢red the level of funds held and the expected l¢vel of income and expenditure for 12 months fvom authorising these financial statements. The budgeted incoine and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. 1.14. Foreign Currencies Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date, Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the Statement of Financial Activities. Page 19
THE NERVE CENTRE LTD Notes to the accounts for the year ended 31 March 2023 Grants & other income The total income of the company for the year has been derived from its principal activity wliolly undertaken in the UK. 2023 2022 Restricted Income - Charitable Activities Northern Ireland Screen OCN Arts Council (including National Lottery) Derry City & Strabane District Council Community Relations Council ESB SEUPB Nottingham Media Centre Ltd Keadue Community Grant Heritage Lottery Fund British Film Institute Belfast City Council British Council QUB - Film Hub Grant EU Culture Fund Other Grants Paul Hamlyn Foundation 784,427 1,500 78,495 39,688 26,918 8,160 75,886 4,000 1,120,228 57,626 41,499 26,418 5,440 423,421 8,000 290,697 106,105 18,000 265,830 79,700 19,800 76,500 15,300 9,100 40,911 3,931 203,100 6.400 232,415 ,715,019 2,354,476 Unrestricted Income- Charltable Activfitles Project Income Festival 2022 (Unboxed/Belfast City Council) Venue Income]cket Sales Foyle Film Festival South West College Bank Interest Other Income rurlough Claims 485,774 3,023,51 I 107,167 32,219 150,000 26,759 73,918 297,900 1,749,505 63,260 33,607 i 00,000 7,006 3.741 11,316 3,899,348 2,266,335 Total Income 5,614,367 4,620,811 Page 20
THE NERVE CENTRE LTD Notes to the accounts for the year ended 31 March 2023 2.1 Resources Expended - Charitable Activities Unrcstrlcted Funds Restricted Funds Total 2023 Total 2022 Managcment & Admlnlstratlon Wages & salaries Redundancy payments Staff pension costs Staff life insurance payments Rent, rates & venue hire Insurance Heat & light Teleplione & internet Production costs Repairs & mainteiiance Cleaning & consumables Postage> printing & stationery Website maintenance & development Training tutors, course fees & accreditation 35,829 Travel, subsistence & hospitality 4,509 Motor expenses 3,245 Professional fees & subscriptions 61,357 Audit fees 11,000 Bank charges 2,357 Bus hire & carriage Hire of equipin¢nt Materials Artist's fees Video production costs Licence fees Marketing expeiises Grant partner payments Nerve Centre equipment expenditure Bar purchases Sundry expenses Profit / loss on exchange Depreciation of Building Depreciation Fix & fittings Depreciation Motor vehicles Capital Grants Amortiscd Gain/loss on investments Festival 2022 expenses 714,862 836,626 9,950 105,862 1,551,488 9,950 148,019 7,070 30,754 34,218 35,804 9,046 312,507 42,392 5.776 21,881 10,620 134.628 55.042 3.245 61,357 I 1,000 2,357 1,995 480 22,014 42,321 21,681 15,660 19,584 83,134 30,967 23,391 5,587 (15,807) 57,736 354 5,522 (41,415) 37,889 2,542,872 1,445,741 42,157 7,070 138,143 4,920 29,105 16,280 31,328 11,404 182,022 122,362 2,580 ,346 40,421 141,958 40,007 7,531 70,690 1.000 1,274 1,827 13,360 23,463 33,077 29,099 18,681 25,229 317,216 66,362 6,916 2,440 2,214 57,120 354 7,282 (41,415) 38,856 1,497,194 30,754 34,218 35,804 7,415 311.407 1,631 1,100 42,392 5,776 21,881 10.620 98,799 50,533 1,995 480 22,014 42,321 500 21,181 15,660 19,516 83,134 30,967 68 23,391 5,587 (15,807) 57,736 354 5,522 (41,415) 37,889 2,542,872 3,586,781 1,754,338 5,341,119 4,404,387 Page 21
THE NERVE CENTRE LTD Notes to the accounts for the year ended 31 March 2023 Net Incomol expenditure for the year 2023 2022 Net income/ expenditure is stated after Chargin (crediting): Depreciation and other amounts written off tangible assets Auditors, remuneration 63,612 I 1,000 64,756 I 1,000 Auditor's remuneratlon The auditols remuneration amounts to an audit fee of £1 1,000 (2022 - £11,000). Employees 2023 2022 Wages and Salaries Social security costs Pension costs Redundancy costs 1,421,560 129,928 148,019 9,950 1,326,596 119,145 138,143 1,709,457 1,583,884 Two employees received emoluments of more than £60,000 (2022: two) The directors, neither received nor waived any emoluments during the year. (2022: None) Number of employees 2023 Number 2022 Number The average monthly numbers of employees during the year, calculated on the basis of full time equivalents, was a5 follows: 125 85 Taxation As a charity, The Nerve Centre is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act 1992 to the cxtent that these are applied to its chargeable objects. Accordingly, no tax charges have arisen in the charity. Page 22
THE NERVE CENTRE LTD Notes to the accounts for the year ended 31 March 2023 Tangible Asscts Land and bulldings Equipment Motor vehicles Total Cost At l April 2022 2,886,788 1,246,743 52,392 4,185,923 At 31 March 2023 2,886,788 1,246,743 52,392 4,185,923 Depreclatlon At l April 2022 Charge for the year 851,788 1,246,389 57,736 354 46,870 2,145,047 5,522 63,612 At 31 March 2023 909,524 1,246,743 52,392 2.208,659 Not book values At 31 March 2023 1,977.264 1,977,264 At 31 Marcli 2022 2,035,000 354 5,522 2,040,876 Revaluation of prop¢rty A revaluation of the propertics at 4-6 and 7-8 Magazine Street ivas carried out on tlie 15th March 2023. The net book of the properties is £2,004,210, the revalued amount is £2,035,000, this gives a ievalu¢d gain of £30,790. The r¢valuation was carried out by James O'Doh¢rty & Company - Mr Eoin Doherty (RICS Registered Valuer 5615050). Investments 2023 2022 Balance at l April 2022 Additions to investments in year Gainl(loss) on investment 674,069 712,925 (38,856) (37,889) Balance at 31 Marcli 2023 636,180 674,069 The company invested E250,000 (£212,925) with Davy Group on 30th November 2021, in the months November and December 2021 an additional £500,000 was invested. Page 23
THE NERVE CENTRE LTD Notes to the accounts for the year ended 31 March 2023 10. Debtors 2023 2022 Trade debtors Grants receivable Other debtors Prepayments 163,845 206,864 35,104 13,218 666,098 571,621 620 17,215 419,031 1,255,554 11. Creditors: amounts falling due within one year 2023 2022 Trade creditors T&xes and social security ¢reditor Bank loans and overdrafts Deferred income (Note 12) Sundry creditor Accruals 185,338 30,575 7,134 303,675 630 134,711 135,176 110,368 4,675 942,291 630 174,148 662,063 1,367,288 12. Doferrcd Income 2023 2022 Balance at l April 2022 Additions during the year Amounts released to income (942,291) (770,427) (1,344,890) (2,391,263) 2,590,856 4.103,981 Balance at 31 March 2023 303,675 942,291 Deferred income is income received before tlie end of the financial year 31 Marcli 2023 and relates to post year end expenditure. 13. Long-tcrm lillbilltles 2023 2022 Inner City Trust 400,000 400,000 In the event that the building at 7-8 Magazine Street is sold, the charitable company (The Nerve Centre) would be liable to repay the Inner City Trust £400,000. Page 24
THE NERVE CENTRE LTD Notes to the accounts for the year ended 31 March 2023 14. Securities Bank of Ireland hold the following securities; Offer letter dated 5th June 2012 - £12,500 facility. Internal casli deposit dated 7th June 2021 £100,000 faciility. 15. Analysis of net assets between funds Unrostrlcted funds Restrieted funds TotAI funds Fund balances at 31 March 2023 as ropresented by: Tangible fixed assets Investments Current assets Current liabilities Long term liabilities Capital grant 30,790 636,180 2,139,092 (193,102) 1,946,474 1,977,264 636,180 1,415,626 3,554,718 (468,961) (662.063) (400,000) (400,000) (1,536,703) (I,536,703) Total fundy 2,612,960 956.436 3,569.396 16. Movcments In Funds At At l Aprll Incomlng Outgoing 31 Mar¢h 2022 resour¢e$ re$ourccs 2023 Restrlcted funds: Total restricted funds 995,755 1,715,019 (1,754,338) 956,436 Total restricted funds 995,755 1,715,019 (1,754,338) 956,436 Unrostrictod funds: General funds 2,300,393 3,899,348 (3,586,781) 2,612,960 Total unrestricted funds 2,300,393 3,899,348 (3,586,781) 2,612,960 Total funds 3,296,148 5,614,367 (5,341,119) 3,569,396 Purposes of Restricted Vunds Restricted grants awarded to the charity is provided to cover the core objects as explained in directors report. Page 25
THE NERVE CENTRE LTD Notes to the accounts for the year ended 31 March 2023 17. Capital Grants 2023 2022 At l April 2022 Less: Capital Grants Amortised At 31 March 2023 1.578,118 1,619.533 (41,415) (41.415) ,536,703 1,578,118 18. Cash and cash equlvalents 2023 2022 Cash at bank and in hand 3,135,687 2,671,055 19. RelAted party transactions There wer¢ no related party transactions in the period under review. 20. Llmltcd by Guarantce The company is limited by guarantee and does not have a share capital. Every member of the company undertakes to contribute such amount as may b¢ required not exc¢¢ding £1 to the assets of the charitable company in the event of its being woiind up while he or she is a member, or within one year after he or she ceases to be a member. 21. Controlling interest Controlling interest rests with the Board of Directors. 22. Post Balanco Shoot ovonts No significant events have taken place since the year end that would result in adjustments to 2023 financial inforniation or inclusion of a note thereto. Page 26
THE NERVE CENTRE LTD Notes to the accounts for the year ended 31 March 2023 23. Reservcs Poliey The Nerve Centre is committed to organisational financial sustainability and the generation of financial reserves to ensure the future of the organisation. Reserves provide the organisation with adequate financial stability and the means for it to meet its objectives for the future. In addition, sufficient reserves are essential to enable the Nerve Centre to meet it's short, mediuin and longer term strategic objectives. These strategic objectives also include any potential capital expansion plans, capital investsnent including ongoing refurbishment and strategi¢ programme development. Nerve Centre currently operates within a Climate of funding cuts, changes in policy and Brexit. During this period the maintenance of cash reserves are prudent financial management, especially in light of the ut in European Funding post Brexit. Each year Nerve Centre's earned income is used to subsidise the potential shortfall in restricted activities as well as b¢ing added to unrestrictcd reserves. Current reserves will be used for the following; Capital expansion plans and strategic programme investment. Capital investment including ongoing refurbishment, redevelopment, upgrade and maintenance of the current capital stock of the organisation. Investment in new specialist equipment to ensure tliat Nerve Centre has cutting edge technology to d¢liver it's programmes. Risk Maiiagement/Contingency. It is essential for the organisation to have a significant trading r¢s¢rv¢ to enable it to manage a number of funded projects at aiiy one time. There is also a risk factor as many funds are paid in arrears. In addition to any unexpected costs and funding shortfalls, Nerve Centre also needs to provide match funding for projects. Reserves can provide the necessary match funding where a matching runder cannot be secured. Reser4es are also intended to cover essential staff costs including allowances for non-funded salaries, pensions, redundancies and the lik¢. The reserves policy is reviewed annually by the Board of the Nerve Centre. Page 27