Registration Number N1031527 Charity Number NIC104797 DERRY THEATRE TRUST Trustees, Report and Consolidated Financial Statements for the year ended 31 March 2023
DERRY THEATRE TRUST Trustees, officers and advisors Martin Bradley Mary McKenna Martin Mullan Sandra Biddle Dolores O'Reilly Conal Casey Sliauna Cusack* Sean Carr Resigned 04 May 2023 Patricia tA)gue Resigned 04 May 2023 Sean Fleming Appointed 06 July 2023 Niree Mcmorris Appointcd 06 July 2023 nominated by Derry City & Strabane District Council Trustees of Derry Thealre Trust and M Forum Trading Limited Resigned 02 September 2022 Directors of subsidiary company Millennium Foruni Productions Limited Martin Bradley David McLaughlin Key Management Personnel Chief Executive Officer Fiiiance Manager Box Office Maiiager Teclinical Manager General Maiiager Secretary Mary McKenna David McLaughlin Elaiiie McParland Lisa Heaney Lorcan McLaughlin Paul Mason HMRC Charity No. Cbarity Commlsslon No. XR16635 NIC104797 Registered Offlce & Business Address Newmarket Street Londonderry BT48 6EB Independent Auditors McDaid Mccullough Moore Chartered Accountants and Statutory Auditor 28132 Clarendon Street Derry BT48 7HD Bankers Allied Irish Bank Strand Road Londonderry BT48 7TN Solicitors Gu¢kian Flanagan Solicitors 7 Limavady Road Londonderry BT47 6JU
DERRY THEATRE TRUST Trustees, Report and ConsolldAted Flnan¢ial Stst¢ments for the year ended 31 March 2023 Contents Page Trustees, annual report (incorporating directors report and strategic report) 2 - 7 Trustees, responsibility statement Independent auditors, report 9-12 Consolidated statement of financial activities 13 Consolidated statement of financial position 14 Company statement of financial position 15 Consolidated statement of cash flows 16 Notes to th¢ financial statsments 17-38 Page I
DERRY THEATRE TRUST Company lin)ited by guarantee Trustees, report (incorporating the directors, report and strategic report) for the year ended 31 March 2023 The Trustees, (in their capacity as Trustees, and Directors) present their annual report for the year ended 31 arch 2023. This report has been prepared by the trustees, in accordance with the requireinents of Section 414 of tlie Companies Act 2006. The results represent a complete year of trading, the first complete year since the Covid pandeinic. The company is a regislered charity, limited by guarantee whose governing document is the memoranduin and articles of association. strategie Report Objectives & activities Thc principal activity of Derry Theatre Trust is tlie operation of the Millennium Forum theatre complex for arts and cntertaiiiment purposcs. The Trust was established to promote, maintaiii, improve and advance the education of the public in the City of Derry and Northern Ireland, in the Arts. To achieve this objective the theatre has put on a wide variety of shows, including professional shows such as West End productions, perfonnaJi¢es by local ainateur drama groups, educational projects. comedy acts and internationally recognised musicians. The general public, male and female, young and old, have access to a wide variety of perforinances to suit all tastes. The tlieatre also provides an educational outreach prograinme during the summer montlis in conjunction with local schools and local groups which provides a framework for development of local artists. The faci lities of tlie theatre are also used by local drama, miisic and dance groiips. The aims of Derry Theatre Trust / the Milleiiiiium Forum theatre are: to present a unique theatrical experience. to promote arts & Culture in the North W¢st of Ireland, to establish tlie Milleiiiiiuin Forum as a leadiiig conference centre. and to develop and sustain a successful organisation and to provide public benefit. The trustees, vision for the Millennium Forum is to be tlie regional theatre of choice for the Nortli West. delivering a finaiicially sustainable mixed arts programme accessible to the majority of people in the catchment area. The entertainment programme aims to satisfy the audience, ensiiring maximum box office incoine at miniinum cosL without reducing standards and maintaining the financial stability of the theatre. Public benefit Derry Theatre Trust strives to ensure that the Millennium Forum provides public benefit. The public benefit test is at tlie hcart of what it means to be a charity. Dcrry Theatre Trusvs principal objective is to establish, maintain and promote a theatre for arts and entcrtainmcnt purposes. In setting this objective the Trustees have coiisidered the Charity Commission for Northern Iland'S guidancc on public benefit to ensure that its activities have helped to achieve its principal objective of public b¢n¢fit for its beneficiaries. The public benefjt that Derry Theatre Trust provides through promoting its activities are: presenting live perforillances of plays, musicals, opera, dance, comedy acts, childrens shows and various genres of music. providing hire facilities for local groups (drama. musical, dance). provisioii of ali all iii oiie leisLire r'd¥ilily in Ihe form of tlieatre, restaurant & bar facilities. enhanoing the local economy froin audiences visiting the theatre and staying in the area, resulting in increased business for hotels, bars, restaurants and taxi companies. Page 2
DERRY THEATRE TRUST Company limited by guarantee Trustees, report (incorporating tlie directors, report and strategic report) for the year ended 31 March 2023 coiitinued contracting witli local suppliers for foodlbar stocks, brochure production and advertising. and providing full aiid part time employment. The Trustees, give careful consideratioii in setting admission prices to the theatre, so that the facility is aGcessible to everyone interested in the Arts, in that adimission prices differ dcpending on tlie niglit of the performance, on seat location etc. Local aTnateur drama groups also benefit from rediiced theatre hire rates. The trustees, believe tliat they are tlier¢forc meeting the public benefit test by increasing the accessibility of the theatre to both payiiig patroiis / local groups and tlie commercial effect of. the theatre location to the IoLal economy. Aehievements and performances The results presented are for 12 months trading. Key performance indicators for tlie company are as follows: 2023 120 231 168,501 2022 45 I I I 58,294 Shows/conferences Performances Audience In pronioting its principal objective of promoting the Arts, diiriiig tlie year the theatre programme included West End Sliows sucli as Blood Bros aiid Six, musical performances by Imelda May and The High Kiiigs, Ainateur performaiices of High Scliool Musical, comedy acts sucli as Tommy Tiernan and Jason Manford, cultural shows raiigiiig from tlie Ulster Orchestra to the Ukraii)ian Ballet as well as local performance shows of Cinderella and Myra. Financial review Income for the year was £4,842,610 (2022 £2,427,178) resulting in an operating deficit of (£139,297) (2022 (£212,661)) before actuarial chaiiges in the pension scheme. A detailed analysis of income aiid expeiiditure is provided in notes to the accounts. Grant aid. in addition to Core funding from Derry City & Strabane District Council aiid the Arts Council, of £160,936 was obtaiiied. Net assets at the balance slieet date were £8,241,590 (2022 - £7,169,877). The valuation of tlie pension scheme assets and liabilities at tlie balance sheet date resulted in a surplus of £1,211,000 (2022 siirplus £507,000). The SLirplus on the pension scheme was a result of changes to key assuinptions used to calculate the present value of the scheme assets and liabilities. The discount ratc has increased by 1.9 %, the CPI inflation assuTnption has reduced by 0.4 % aiid the salary increase assumption has reduced by 0.40/0. I'here has also been a change to the post retirement mortality assumptions. Coiitinued provision of core funding from Derry City & Strabane District Council £443,300 (2022 £443,300) and The Arts Council £90,250 (2022 - £70,250) are of vital importance to the operation of the theatre. Additional fundiiig of £49,850 from the Arts Council and £17,141 from Derry City & Strabane District Council was obtained to help counter the cost of living crisis. The Trustees gratefully acknowledge the continued support of all fundiiig bodies. The trustees, are satisfied with the results for th¢ year and expect a coiitinued improvement in results when public confidence lias been fully restored after the Covid pandemic. Page 3
DERRY THEATRE TRUST Company limited by guarantee Trustees, report (incorporating the directors, report and strjtegic report) for the year ended 31 March 2023 contiiiued Prin¢lpal risks and uncertainties The manageinent lias coiidLl¢ted its own review of the major risks to which the Trust is exposed and systems liave been establislied to mitigate those risks. The principle risk ii) the current climate is business performance risk. This is tlie risk tl)at the theatre will iiot operate as expected due to both interiial and external factors such as Covid-19 and social distancing requirements and also competition in the Arts sector. Measures to mitigate this risk include appropriate management personiiel, business planning and reporting and financial controls. The Trust continually monitors its exposure to financial risk. Given the size of the group & company, the trustees have not delegated the respoiisibility of monitoriiig financial risk to a sub cominittee. The policies set by the trustees are impleinented by tlie finance departineiit. The financial viability aiid sustainability of the theatre is a major risk recognised. The shows performance scliedule is of utmost iinportaiice aiid is carefully planiied to eiisure adequate cashflows and where possible to maximise fuiidiiig. Diversification of activities via M Foriim Tradiiig Liinited and Mi1Sennium Forliin Productions Limited, including Inore eillphasis on the income geiierated froin tlie bars, spoiisorship and advertising have also been identified. Business and finance risk is managed by ensuring appropriate staff, with appropriate experience are in place and budgets and forecasts prepared and reported on Inonthly. The reporting iietwork inakes use of ali established IT systein wliich combines a general accounting package, a bar software package and a box office system, all of whicli are continuously updated and maintained. The Trust's financial assets includes cash, trade and otlier debtors and trade creditors and accruals togetlier with defei'red inconie. Associated risks include credit risk and liqiiidity risk. To minimise credit risk the Trust has iinplemeiited policies that requ ire appropriate credit checks on potential customers before traiisactions take place. To minimise liquidity ris1( performaiices are carefully planiied to ensure appropriate cash flows exist to meet operational costs (advance box office ticket sales reduces liquidity risk). Internal risl(s are minimised by the iinplementation of coiitrols and procedures for authorisatioii of all transactioiis. The theatre is committed to operatiiig in a healthy and safe working environment. Health & safety risk is minimized by impleineiitatioii and promotion of health and safety policies and extensive training. Covid-19 health & safety me&8ures introduced incliide appointment of a Health & Safety officer, hand and hygieiie washing procedlires, social distanciiig protocols signage aiid floor markings aiid provision of PPE equipmeiit. Health & safety Tlie company has iii place a Health and Safety Policy which requires it to comply as a minimum with all legislation and to take all reasoiiable practicable steps to ¢iisure tlie safety, health and welfare of all employees, patrons and anyone else affected by tlie activities carried out. Page 4
DERRY THEATRE TRUST Company limited by guarantee Trustees, report (incorporating tbe directors, report and strateg5c report) for the year ended 31 March 2023 continued Trustees, Annual Report Structureg governance and management Governing document The Trust is a charitable coinpany, limited by guarantee (willi no sliare capital) aiid its governing docuineiit is its Memorandum and Articles of Association. The Trusts charitable status IS T¢cognised by HM Revenue & Customs Charity nuinber XR16635. The company is registered with the Charities Commission, No. NIC104797. Organisational structure Derry Theatre Trust is managed by the trustees. Trustees are either noininated - by Derry City & Strabane District Couiicil or ord inary cliosen based on tlieir skills and professional backgrounds so as to eiisure a wide range of experience is represented on the Board. Trustees ineet bi-monthly to review performaiice, determiiie strategies, assess risk and plan future policies. Tlie Trust has two wholly owned subsidiary compaiiies, M Foruin Trading Limited aiid Millenniuin Foriiiii Productions Ltd. M Forum Trading Limited is responsible for tlie theatrical operation of the Millennium Forum, including all aiicillary services such as the operation of the box office aiid the bars. All costs incurred, other tlian wages (a cost of Derry Tlieatre Trust), are incurred by M Forum Trading Limited. Any year end surplus is gifted to Derry Theatre Trust, who also collects the rental income, receives the operatiiig graiits from Derry City & Strabane District CoLiiiciI and the Arts Council aiid employs and pays the staff to operate the theatre. The Trust owns the freeliold property and the plaiit and machinery together witli fixtures and fjttings, Millennium Forum Prodiictions Ltd is respoiisible for producing the exteriial touring performances of Titanic Danc¢" and other productions that may arise. The Trust is managed daily by the chief executive, David McLaughlin and senior employees. The senior employees from fiiiance, box office, marketing, development, front of house, technical and tlie bars, report daily to the ch ief executive ensuring the smooth operation of tlie tlieatre. The chief ¢xecutiv¢ is responsible for artistic policy, contracting with artists and booking the daily prograin of performances and also for cnsuring that the theatre complics witli all r¢l¢vent rcgulations iiicluding Covid-19 and social distancing regulations and other health & safety requireinents of staff and the public. Various sub committees operate at th¢ theatre to look into all aspects of operations such as funding and access to the Arts for all, including patrons who suffer from dementia. The Trust is an equal opportunities employer committed to positive policies on recruitment, training aiid career developinent for staff members (and potential staff members) regardless of marital status, religion, colour, race, ethnic origin or disability. The Trust also accominodates custoiners with disabilities with the use of Braille materials, captioned performances, the loop system, signed performances, relaxed performances and special access to certain parts of tlie auditorium. Page 5
DERRY THEATRE TRUST Company Ilmited by guarantee Trustees, report (incorporatlng the dlre¢tors' report and strategic report) for the year ended 31 March 2023 coiitiiiued Appointment and training of trustees New trust¢es are nominated by currcjit trustees and from nomiiiations proposed by Derry City & Strabane District Council. Also in 2023 public advertisemellts were placed in local media seeking new trustees. Induction and training of new trustees is providcd by existing trustees and by employees. Most trust¢¢s, due to their experiencc and backgrounds are already familiar witli the work of the theatre. Investment policy The Trust operates a prudent investinent policy. Jiivcstments opportunities wheii they arise are in the form of short term, low risk baiik deposits. Reserves policy The trustees have examined the charity's requirements for reserves taking into accouiit the risks that the Trust has recogiiised. The reserve requirement is estiinated to be at least tliree months of expenditlire. Expenditure of the charity is currently £4.98 million, equatiiig to quarterly expenditure of approximately £1,245,000. Tlie Trust intends to iiicrease reserves to tliis desired level wlien future opportunities arise. The actual reserves at 31 March 2023 falls short of tlie desired level and the trustees recognise it will take a coiisiderable period of time to acliieve tlieir target but aiiticipate a gradual increase over time. Plans for the future The TrLlStees' future aims are.. l. The financial viability of tlie tlieatre. 2. Maintaining tlie theati'es position as the ultimate venue of choice for tlieatre goers in the catchment area. 3. Ensuring maximum accessibility of the theatre to all groups in the catchment area. 4. The introduction of additional programming that will attract iiew patrons to the theatre. 5. To co-operate witli other bodies in produciiig work that can tour tlie major theatres in Northern Ireland, the Republic of Irelaiid, mainland UK, Chiiia and USA. and 6. To inake facilities available to local groups, at a cost that is not prohibitive. The Trustees,, as a result of tlie above aims, expect to increase core revenue streams whilst continiiing to promote non core activities. Tlie future plans of th¢ Triist encompass strategies that are designed to broaden the Theatr¢'s audien¢¢ base, to confirm its position as the cultural centre of the north west and to maintain financial stability- Related parties Dcrry City & Strabane District Council, with whom the company has a close working relatioiiship, nominates trustees to the board of trustees and attends the monthly board meetings. The Trust continues to receive vital annual funding from Derry City & Strabane District Council and Arts Council towards core operating costs. Donations The Millennium Forum charges a development donation on all ticket sales. This donation during the year was £182,143 (31 March 2022 £74,0001). This donation is a restricted fund and will be used for improvements, developmeiit of shows, enliaiiceiiieiit expeiiditui'¢ wid futui'e refui'bisliineiil plJeLl5 ai ilie iliealre. Page 6
DERRY THEATRE TRUST Company limited by guarantee Trustees, report (fincorporating the directors, report and strategic report) for the year ended 31 March 2023 continued Environmental policy Tlie group & coinpaiiy is committed to reducing its environmental impact and to continually improving its e11viroiimental performwice. It has a duty of care with respect to its environmeiital practice and to achieve this it: wholly supports and coinplles with tlie requirements of curreiit envirojimental legislation and codes of practice. rninimises waste aiid recycles as much as possible. mininiises energy and water waste iii order to coiiserve supplies and also consumption of natural resources, especially where they are non-renewable. operates and maliitaiiis equipment with due regard to environmental issues. assesses, in advance, the eiivironmeiital iinpact of any new products or services intended for introduction, so that no damage is done to tlie environment. ensures that all employees uiiderstand the group & company's environinental policy and conform to the staiidards by trainiiig and iiistruction. proinptly addresses aiiy complaiiits abolit breaclies of environmental policy to the satisfaction of all concerned; and coiistantly reviews policy to ensure adequacy. Statement of disclosure of information to auditors We, tlie trustees of the charitable coiiipany who lield office at the date of approval of these financial statements as set out above each coiifirm, so far as we are aware, that: there 15 no relevent aiidit inforination (information needed by the cliaritable group & company's auditors in connection with preparing their report) of which the cliaritable coinpany's auditors are unaware, and we have taken all the steps tliat we ought to have taken to make ourselves aware of any relevent audit informatioii and to establlsh that tlie charitable company's auditors are aware of that iiiformation. Auditors McDaid Mccullough Moore are deemed to be reappointed in accordance with Section 487(2) of the Coinpanies Act 2006. This report is prepared in accordaiice with the special provisions of part 15 of the Companies Act 2006 relating to mediiim sized companies. The Chairman and Trustees would like to express their thanks to the management and staff at tlie Milleiiniuin Forum for their eiideavolirs over the last year and to the theatre patrons for their continued support. This report was approved and authorised for issue by the Trustees on 7 September 2023 and signed below on its behalf by: Mary McKenna Secretary Page 7
DERRY THEATRE TRUST Trustees, responsibility statement for the year ended 31 March 2023 Trustees, responsibilities Tlie trustees are responsible for preparing the trustees aiiiiual report and the fiiiancial statements in accordance with applicable law and regulatioiis. Company law requires the trustees to prepare financial statements for each financial year. Under that law the truste¢s have elected to prepare the financial statements iii accordance witli United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under coinpaiiy law the trustees inust not approve tlie financial statements iinless they are satisfied that they give a true and fair view of the state of the affairs of tlie charitable company aiid of the incoming resources and application of resources, including the incoine and expeiiditure, of the cliaritable coinpany for that year. In preparing tliese financial statemeiits tlie trustees are required to: select suitable accounting policies and apply them consistently. observe the metliods aiid principles in the Charities SORP2019. make judgements and estiinates tliat are reasoiiable aiid prudent. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explaiiied iii tlie fiiiancial statemeiits. and prepare the financial statements on the goiiig concern basis unless it is inappropriate to presume that the charitable coinpany will continue in biisiness. Tlie trustees are responsible for keeping adequate accounting records that are sufficient to show and explain tlie charitable coinpany transactions and disclose witli reasonable accuracy at any time the financial position of the charitable company ai)d to eiiable thein to ensure that tlie finaiicial statemeiits comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable coimpany and hence for taking reasonable steps for the preveiition and detection of fraud and oth¢r irregularities. Page 8
DERRY THEATRE TRUST Independent auditor's report lo the members of DERRY THEATRE TRUST We Iiave audited the financial stateinents of DERRY THEATRE TRUST (the charitable company) and its subsidiaries for tlie year ended 31 March 2023 wliich comprise the consolidated statement of finaiicial activities, the consolidated and charitable company stateinent of financial position, the consolidated statemeiit of cash flows and notes to tlie fiiiancial statements, including a summary of significant accounting policies. The fiiiancial reporting frainework that has been applied in their preparation is applicable law and United Kingdom Accoiinting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accouiiting Practice). In our opinion the fiiiancial statements: give a true aiid fair view of tlie state of the group's and parent charitable company's affairs as at 31 Marcli 2023, and of the group's iiicoinliig resources and application of resources, including its income and expenditure, for the year then ended. have beeii properly prepared in accordance with United Kingdom Geiierally Accepted Accounting Practice. and have been prepared in accordance with tlie requiremeiits of the Companies Act 2006. Basis for opinion We conducted our aiidit in accordance with International Standards on Auditing (UK) (ISA'S (UK)) and applicable law. Our responsibi lities under those standards are furtlier described in the Aiiditor's responsibilities for tlie audit of tlie financial statements section of our report. We are independent of the group and parent charitable company iii accordance witli the ethical requirements that are relevant to our audit of the fiiiancial stateineiits in the UK, iiicludiiig tlie FRC'S Ethical Standard, and we have fulfilled our other ethical respoiisibilities in accordance with these requirements. We believe that the audit evidence we liave obtained is sufficient and appropriate to provide a basis for our opinioii. Concluslons relating to Going Concern Iii auditing tlie financial statemeiits, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the fiiiancial statements is appropriate. Based on tlie work we have perforined, we Iiave not ideiitlfied any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the respoiisibilities of the trustees with respect to going concern are described in tlie relevent sections of this report. Other information The trustees, are responsible for the other information. The other information comprises the information included in the trustees, aiinual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial stateinents does not cover the other information and, except to the extent otherwise explicitly stated in our reporL we do not express aiiy form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other iiiformatioii is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material incoiisistencies or apparent material miststatements, we are required to deterniine whether there is a material misstateinent in tlie financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. Page 9
DERRY THEATRE TRUST Independent auditor's report to the members of DERRY THEATRE TRUST continued We Iiave nothing to report in tliis regard. Opinion on other matters prescribed by the Companies Act 2006 Iii our opinion, based oil the work undertaken in tlie course of th¢ audit: the inforniatioi) given in the trustees, report (incorporating tlie strategic report and the trustees, report) for the financial year for wliicli the financial statements are prepared is coiisistent with the financial statemeiits. aiid the trustees, report (including tlie strategic report) has been prepared in accordaiice with applicable legal requiremeiits. Matters on which we are requircd to report by exception Iii tlie liglit of our knowledge and understaiiding of the group & company and its environment obtained iii the course of the audit, we have not idenlified material misstatcinents in the trustees, report. We Iiave notliing to report in respect of the following matters in relation to which thc Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have iiot been kept, or retums adequate for our audit have not been received from branches not visited by us. or tlic charitable group & coinpany's finaiicial statements ar¢ iiot in agreement with the accounting records and returns. or certain disclosiires of trustees, remiineration specified by law arc iiot iiiade. or we have iiot received all tli¢ inforination aiid explanations we require for our audit. Responslbllities of trustees, As explained more fully iii tlie trustees, responsibilities statemenL the trustees, (who are also the directors of the charitable company for the purpos¢s of company law) are respoiisible for the preparation of the financial statements and for beiiig satisfied that they give a true and fair vlew, aiid for such internal control as the trustees, determine is necessary to enable tlie preparation of fiiiancial statements that are free from material misstatement, whether due to fraud or error. In preparing tlie finaiicial statements, tlie trustees, are responsible for assesslng the groiip's and parent charitable company's ability to continu¢ as a going coiicern, disclosing, as applicable, matters related to going concern and iising thc going concern basis of accounting unless th¢ trustces, eithcr intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alt¢rnativc but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtaiii rcasonable assurance about wheth¢r the financial statcments as a whole are free from material misstatemeiit, wliether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a Iiigh level of assurance, but is not a guarantee that ali audit conducted in accordance with ISAS (UK) will always dctcct a material misstatement wheii it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could re&sonably be expected to influence the economic decisions of users taken on the basis of these fiiiancial stateinents. Page 10
DERRY THEATRE TRUST Independent auditor's report to the men]bers of DERRY THEATRE TRUST continued Irregularities, including fraud, are instaiices of non-coinpliance with laws and regulatioiis. We design procedures in line with our responsibilities, outlined above, to detect material mistatements in respect of irregularities, iiicliid ing fraud. The exteiit to which our procedures are capable of detecting irregularities, including fraud is detailed below. Based on our understandiiig of the charitable group & company and the environmeiit in wliich it operates, we identified that the group & company's principal risks were of non-compliance with laws and regulatioiis relating to charitable companies, and we considered tlie extent to which non-coinpliance might have a material effect on the financial stateineiits. We also ¢onsid¢r¢d laws and regul<itions that have a direct impact on the preparation of the financial stateinents such as the Coinpanies Act 2006, income tax and payroll tax. Audit procedures performed to address the risk included the following: Inspecting correspondeiice with regulators and tax authorities. Discussioiis willi maiiagemciit including consideration of known or suspected instances of non-coinpliance with laws and regulation and fraud. Consideriiig the iiiternal controls in place to mitigate risks of fraud and iion-compliance with laws aiid regulations. Identifying aiid testing journals and tlie ratlonale behiiid significant or unusual transactions, in particular journal entries posted with unusual accouiit combinatioiis, postings by unusual iisers or with uniisual descriptions. Challeiigiiig assiimptions and judgements made by management in their critical accounting estimates. Owiiig to the inliereiit liinitations of an audit, there is an Linavoidable risk tliat we may not have detected soine material misstatements in the financial statements, even though we have properly planned and performed our audit in accordaiice with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is froni tlie events and traiisactioiis reflected iii tlie financial stateinents, the less likely the inlierently limited procedures required by auditing standards would identify it. In additioii, as with any audit, there remaiiis a higlier risk of non-detection of irregularities as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preveiiting non-compliance and cannot be cxpectcd to detcct non-compliance with all laws and rcgulations. As part of an audit in accordance with ISAS (UK), we exercise professional judgeinent and maintain professional sccpticism throiighout the audit. We also: identify and assess the risks of material misstatement of th¢ financial statemeiits, whether due to fraud or error, design and perforni aiidit pro¢ediires responsive to thos¢ I'isks, and obtain aiidit evidence that is sufficieiit aiid appropriate to provide a basis for our opinion. The risk of iiot detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraLid may involve collusion, forgery, inteiitional omissions, misrepresentations, or the override of internal control. Page 11
DERRY THEATRE TRUST Independent auditor's report to the members of DERRY THEATRE TRUST continued obtain an understand ing of internal control relevant to tlie audit iii order to design audit procedures that are appropriate in tlie circumstances, but not for the Plirpose of expressing an opinion of the effectiveness of tlie company's iiiternal control. evaluate the appropriateness of accountiiig policies used and the reasonableness of accounting estimates and related disclosures inade by the trustees,. conclude on the appropriateness of the trustees, use of the going concerii basis of accounting and, based on tlie audit evidence obtained, whetlier a material uncertaiiity exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going coiicerii. If we conclude that a material uncertainty exists, we are reqiiired to draw attention in our auditorfs report to the related disclosures in the finaiicial statements or, if such disclosures are inadeqiiate, to modify our opinion. Our conclusions are based on tlie audit evidence obtaiiied up to tlie date of our auditorfs report. However, future events or conditions niay cause the charitable compaiiy to cease to continiie as a going concern. evaliiate the overall presentation, structure and conteiit of the financial statemeiits, including tlie disclosiires, and wliether the financial statements represent the underlying transactions and events iii a Inanner tliat achieves fair presentatioii. We communicate with those charged with goveriiance regarding, among other matters, the planned scope and timiiig of the audit aiid significant audit find ings, includiiig aiiy significant deficiencies in interiial control that we ideiitify during our audit. Use ol. our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Conipanies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's Inembers those matters we are required to state to them in an auditor's report and for iio other purpose. To tlie fullest extent permitted by law, we do not accept or assume responsibility to anyone other than tlie cliaritable company and the charitable compaiiy's members as a body, for our audit work, for this report. or for the opinioiis we have formed. KL'I'III ougli (Senlor Statutory Auditor) lid on behalf of McDaid Mccullough Moore Chartered Accountants #nd Statutory Auditor 28132 Clarendon Street Derry BT48 7HD Date . 7 September 2023 Page 12
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DERRY THEATRE TRUST Company No,N1031527 Consolldated statement of financial position as at 31 March 2023 2023 2022 Notes Fixed assets Intangible assets Tangible assets 13 14 7,306,993 7,555,301 7,306,994 7,555.302 Current assets Stocks Debtors Cash at bank and in hand 16 17 18 17,460 227,424 2,454,076 20,140 169,614 1.902,777 2,698,960 2,092,531 Creditors: amounts falling due within one year 19 (1,829,364) (1,488,946) Net current assets 869.596 603,585 Total assets less current liabilities P¢iisioii asset/( liability) 8,176,590 65,000 8,158,887 (989,000) 20 Net assets 8,241,590 7,169,887 Funds Restricted fuiids Unrestricted funds 22 23 8,230,506 11,084 8,277,403 (1,107,516) Total charlty funds 8?41,590 7,169,887 The financial statements were approved and authorised for issue by the Trustees on 7 September 2023 and were signed below on its behalf by JM,LLL Martin Bradley Trustee Mary McKenna Trustee The notes on pages 17 to 38 form an integral part of these financial statements. Page 14
DERRY THEATRE TRUST Company No.N1031527 Company statement of financial positlon as at 31 March 2023 2023 2022 Notes Fixed assets Intangible asscts Tangible assets 13 14 7,288,568 7,528,350 7.288,569 7,528,351 Current assets Debtors Cash at bank and in hand 17 18 442,883 920,267 227,865 855,456 1,363.150 1,083.321 Creditors: amounts fydlling due within one year 19 (105.497) (93,238) Net current assets 1,257,653 990,083 Total assets less current liabilities Pension asset/(liability) 8,546,222 65,000 8,518,434 (989,000) 20 Net assets 8,611,222 7,529,434 Funds Restricted funds Unrestricted funds 22 23 8.211,081 39C),141 8,250,452 (721,018) Total charity funds 8.611,222 7.529,434 The financial statements were approved and authoriscd for issue by the Trustees on 7 September 2023 and were signed below on its behalf by ALl/LLA- M.xii'tiii Ili'adley ru¥tL'e Mary McKenna Trustee The notes on pages 17 to 38 forn) an fintegral part of these financial statements. Page 15
DERRY THEATRE TRUST Consolldated statsment of cash flows for the year ended 31 Mareh 2023 2023 2022 Notes Cash flows from operating actlvitles Net (deficit) before actuarial gain l (deficit) (139,297) (212,661) Adjuslmenlsfor.. Dcpreciation Defined benefit pension scheme service cost 248.308 157,000 250.800 150,000 Changes in., Stocks D¢btors CdItorS 2,680 (57,810) 340,418 (17,876) 142,243 834,877 Cash generated from operatfing actlvltle8 551,299 1,147,383 Cagh flow from investing actlvltles Payments to acquire tangible fixed assets (46,515) Net Increase in eash and cash equfvalents in the year Net debt at l Aprll 2022 551 ?99 1,902,777 1,100,868 801,909 Net casb and casb equfvalent8 at 31 March 2023 18 2,454.076 1,902,777 Page 16
DERRY THEATRE TRUST Notes to Financial Statements for the year ended 31 March 2023 Accountlng Policies Accounting Convention and basis of preparation The charity coiistitutes a public benefit entity as defined by FRS 102. Derry Theatre Trust is a private company liillited by guarantee, registered in Northern Ireland. The address of the registered office is Milleniiium Forum, Newmarket StreeL Derry BT48 6EB. The group finaiicial statem¢nts have been prepared under the historical cost conv¢ntion aiid in accordance with the Charities SORP (FRS 102) for charities preparing tlieir accouiils in accordance with tlie Financial Reporting Staiidard (FRS 102) applicable in the UK and Republic of Ireland (issued in October 2019), the Companics Act 2006 aiid under the Companies Act 2006 (Strategic Report and Directors, Report ) Regulations 2013. The financial statem¢nts prepared in st¢rling, which is the functional currency of tlie entity. Aw)uiitiiig policies have been applied consistently in the curreiit and preceding year. 1.2. Basis of Consolidatlon The Group fiiiaiicial statemeiits comprise the financial statements of Derry Theatre Trust and its subsidiary coinpaiiies, M Forum Trading Limited and Milleiinium Forum Productions Limited. The finaiicial stateinents of the subsid iary companies are prepared for tlie same reporting year as ihe parent compaiiy, usiiig consistent accoLinting policies. A subsidiary is an entity controlled, either directly or indirectly, by the Company, wliere control is tlie power to govern tlie fiiiaiicial and operating policies of the entity so as to obtain benefit from its activities. The directors have takeii advantage of the exeinptioii available under section 408 of the Companies Act 2006 and not presented a separate statement of financial activities for the company. 1.3. Income Income is included in the statement of financial activities when tlie charity is entitled to the income and the amount can be quwitificd with reasonable accuracy. Income represents theatre ticket sales, tlicatre and room rentals, merchandise income, bar and confeLtionery sales and income from advertising, marketing & spoiisorship, exclusive of value added tax. Income also includes grant income from Derry City & Strabune District Couiicil, the Arts Council and Arts & Business. Income from theatre ticket sales, receiv¢d in advancc of a performance, is deferred to tlie date of the performance and matched against the cost of th¢ relevant performance. Capital grants are rccognised in tlie year of receipt in the statement of financial activities and treated as restricted funds with the relatcd depr¢ciation of the assets charged against the same fund, The deferred developin¢nt donation, is recognised when received, is a restricted fund donation added to the ticket costs to the patroiis of the tlieatre and is used for improvements, development of shows, eiihan¢ement expenditure and to fiiiance future refurbishmeiit projects. Page 17
DERRY THEATRE TRUST Notes to Financial Statements for the year ended 31 March 2023 . continued 1.4. Expenditure Expenditure is recognised on an accruals basis as a liability is inciirred. Expenditure, where releveiit, is exclusive of VAT. Charitable activities expendlture coinprises those costs incurred by the charity in the deliverance of its charitable activities. It includes botli costs tliat can be allocated directly to such activities aiid tliose costs of an indirect iiature necessary to support them. Support costs not directly related to theatrlcal perforinaiices are allocated where possible to the performance of that activity, Support costs include office costs, legal & professional costs and administrative payroll costs. 1.5. Conference licence The coiiference liceiice is valued at cost less accumulated ainortisation. Amortisatioii is calculated to write off the cost in eqiial aiinual instalineiits over tlieir estimated usefu I life of 5 years. 1.6. Tangible fixed assets and depreciation Taiigible fixed assets witli a life expectancy of greater tliaii one year, are iiiitially recorded at cost and subsequently stated at cost less any accumulated depreciation and impairmeiit losses. Depreciatioii is provided at rates calculated to write off the cost less residual value of each asset over its expected useful l ife, as follows.. Buildings Piazza developinent Plant and inach iiiery Fixtures, fittings and equipmeiit straight line over fifty years 20/0 - 20 % straight line 100/0-209/0 Straight line 20Q/o Straight line Land is not depreciated. 1,7. Impairment of assets A review for iiidicators of impairmeiit is carried out at each reporting date, with the recoverable amount being estiinated where such indicators exist. Where the carrying value exceeds the recoverable amount, tlie asset is impaired accordingly. Prior impairinents are also reviewed for possible reversal at each reportiiig date. 1.8. Leasing Rentals payable under operating leases are charged against income on a straight line basis over the lease term. Page 18
DERRY THEATRE TRUST Notes to Financial Statemenls for the year ended 31 March 2023 ontinued 1.9. Subsidiaries Fixed asset investments reflect the company iiiterest in the wholly owned subsidiary companies M Forum Tradiiig Limited and Millennium Forum Productions Limited. Investments are Ineasured at the lower of cost and net realisable value. 1.10. Stock Stock is valued at tlie lower of cost aiid net realisable value. in respect of stocks, cost is calculated on a first iii first out basis. Cost includes purchase price aiid transport costs less trade discouiits and rebates. Net realisable value is based 011 selling price less any further costs of disposal. 1.1 l. Pension and other post - retirement benefits The charitable coinpany operates a defined benefit pension scheme for employees. The assets of the scheme are held separately from those of the charitable company. Pension scheme liabilities are measured oli ali actuarial basis using a projected unit method and are discounted to their present value usiiig a discount rate of 4.60/0 (2022 . 2.70/0). Pension scheine assets are valued at market value at the balance sheet date. The pension scheme cliarge in tlie Stateinent of Financial Activities is the current and past service cost plus fiiiaiicing cost less employers coiitributions. The pension sclieine deficit is recognised in full oil the balance slieet. 1.12. Foreign currencies Monetary assets aiid liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are recorded at the rate of excliaiige prevailiiig at the date of the transactioiis. All differences are taken to the Statement of Financial Activities. 1.13. Funds The funds of the charitable group & company consist of restricted funds and unrestricted funds. Unrestricted funds are funds available for use by the charity at the discretion of the trustees in furtherance of the general objectives of the charity and have not been designated for other purposes. Restricted funds are funds which are to be used in accordaiice with specific restrictions imposed by tlie donors. The aiin and use of each restricted fund is set out in the notes to the financial statements. 1,14. Donated assets Donated assets are included in the financial statements at the lower of cost or net realisable value. The trustees e.stimate of replacement cost is ba,sed on existing market valuations for similar &ssets. Page 19
DERRY THEATRE TRUST Notes to Financial Statements for the year ended 31 March 2023 continued 1.15. Golng concern The financial statements have been prepared on a going concem basis as the trustees believe tliat adequate resources are available to contiiiue operations and no material uiicertainties exists. Tlie Trustees have considered the level of funds held and the expected level of income and expciiditure for twclve moiiths from authorising these financtal statements. The basis of their judgemciit, taking iiito account the curreiit fiiiancial climate, include reveniies ¢xp¢cted froin th¢ 23124 programme, current revenues versus budget and continued sUPPOrt from funding bodies. 1.16. Debtors Debtors aiid prepayments are r¢cognised at the settlement amouiil due after any trade discount. 1.17. Creditors Creditors are recognised wliere the cliarity has a present obl igation resulting from a past event tliat will probably result in a payment to a tliird party and the amount cali be reliably estiinat¢d. 1.18. Judgements and key sources of uncertaillty In applying company accoiinting policies the Trustees are required to make judgements and estimates on an oiigoing basis about the carrying value of the company assets and liabilities. If Tevision is reqiiir¢d, the revision is recognised iii that p¢riod together with future periods if necessary. The depreciation charge in respect of tangible fixed assets is b&sed on tlie estimated useful life of each group of assets. Revisioii of estimated useful life of each grouping will affect tlie estiinates charged iii the Statement of Financial Activities. 1,19. Financial instruments The group aiid Company financial assets and liabilities are considered basic financial instruments. The financial asset or liability is initially recognised at transaction value and recognised on ly when the company becoines a party to the contractual provisions of the instrumeiit. Page 20
DERRY THEATRE TRUST Notes to Flnancial Statements for the year ended 31 March 2023 continued Donatlons Unrestricted Restricted Restrlcted income income capital funds funds funds 2023 2022 'I'otal 'rotiil Development donation 182,143 189 143 74,UOO 182,143 182,143 7£1.000 Income from charitable activitles Unrestricted Restricted Restricted income income capltal funds funds funds 2023 2022 Total Total Derry City & Strabane District Council Arts Council of Nortliern Ireland Sundry graiits 460,441 140,100 73,945 460,441 140,100 89,147 446,750 70,250 222,899 15,202 15,202 2,706,265 14,558 190,375 2,536 214,869 126,107 674,486 689,688 2,706,265 14,558 190,375 2,536 214,869 126,107 739,899 964,835 1,917 32,720 1,738 42,094 13,122 180,180 Box olYi¢e On-line donations Perforinance rentals Prograinme/merchaiidising Costs recharged Roomlpiazza reiitals Coronavirus Job Retention Scheine 3,269,912 674,486 3,944,398 1.976,505 Income from other trading acllvlties FOH and bar inoome Sponsorship income Advertising income Confectionery sales Miscellaneous income Rental income 372,925 49,788 18,930 125,818 2,358 132,708 37?,9?5 41),788 197,118 14,250 1,624 55,218 758 107,548 1?5,818 ?,358 132,708 702,527 702,527 376,516 Group investment Income 2023 2022 Bank int¢rest 13,542 157 Page 21
DERRY THEATRE TRUST Notes to Ffinancial Statements for the year ended 31 March 2023 continued Costs of Charitable activAties - by activity Charitable Trading activitie$ activities 2023 Total 2022 Total Production costs Wages Cost of sales - bar Outside catcring Cost of sales - confectionery Marketing & advertising Depr¢ciatioii Maintenance Grant expeiiditure Support costs (below) 2,219,381 732,624 2,219,381 58,649 791,273 135.722 135,722 54,932 42,698 78,587 4,674 248,308 350,556 63,969 8,080 996,481 741,926 555,331 56,264 54,932 42,698 14,891 44 1)78 251),8(10 11)9,21118 3,450 772,311 78,587 243,634 350,556 63,969 988,401 4,732,084 249,823 4.981.907 2,63C),839 Support costs Core Theatre activities Trading activities 2023 Total 2022 Total Administration wages Staff training & welfare Computer costs Telephone Rates Light & heat Cleaning Insurance Miscellaneous Audit fccs Legal & professional fees 427,616 1,140 75,036 14,262 8,434 150.797 56,105 42,296 155,134 9,000 414,581 427,616 1,140 80,616 14,262 8,434 150,797 56,105 43,796 155,134 i 0,000 48,581 387.622 3,632 47,568 21,341 3,591 99,582 28,888 37.506 113,637 9,497 19,447 5,580 1,500 1,000 988,401 8,080 996.481 772,311 Support costs where ascertainable llre allocated directly to the rclatcd activity. Expenditur¢ allocation between restricted and unre8tricted is included in the fiinds notes. Page 22
DERRY THEATRE TRUST Note$ to Financial Statements for the year ended 31 March 2023 continued Group deficlt 2023 2022 Net deficit is stated after charging: Depreciation of tangible assets (Profit)/Loss on foreign exchange Operating lease rentals - Office equipment 248.308 (472) 250,800 (516) 3,682 1,486 Auditors, remunerntion 2023 2022 Fees payable to the compaiiies auditors for the audit of the companies annual financial stateineiits 1,800 Fees payable to the companies auditors for the audit of the subsidiary companies 8,200 1,800 7.697 i 0,000 9,497 Income and Expenditure account 2023 2022 Income per Statement of Financial Activities less Capital grant income 4,842,610 2,427,178 (6.865) 4,842,610 2,420,313 (4,981 ()07) (2,63C),83C)) Expenditure N¢t deficit (139,?97) (219,526) Group interest payable and similar charges 2023 2022 Interest 798 Page 23
DERRY THEIATRE TRUST Notes to Financlal Statements for the year ended 31 March 2023 contiiiued Employees- Company and group Number of employees The average monthly numbers of employees (includiiig the chief executive) during the year were: 2023 2022 Front of House / Security Technical Administration Box Office Marketing Bar Development 17 16 10 10 17 62 54 Employee status Full tiine employees Part time employees 18 44 16 38 Employment costs 2023 2022 Wages and salaries Social security costs Pension costs-other operating charge Compensation for loss of office 878,075 64.447 259,162 17,205 667,657 45,515 229.781 1,218,889 942,953 PensSon The company defined benefit pension scheme deficit has improved during the year, from a deficit of (£989,000) in 2022 to surplus of £65,000 in 2023. This is principally because of Changes to key assumptions used to Calculate the present value of scheme assets, changes in asset returns and changes iii demographic assumptions to allow for the effect of Covid-19 iii relation to post-retirement mortality rates. Refer to note20. Page 24
DERRY THEATRE TRUST Notes to Flnancial Statements for the year ended 31 March 2023 continued 9.1. Key management personnel 2023 2022 Chief executives, emoluments Remuneration and otlier einoluments Pension contributions 78,842 14,442 75,286 13,717 93,284 89.003 Emoluments of other employees did not exceed £60,000. Key management personnel remuneration Wages and salaries (iiicluding pensioii coiitributions) Social security costs 166,579 14,950 198,981 16.801 181,529 215,782 Remuneration of full time key management personnel is set by the Trustees. as adjusted by inflation. 9.2. Trustees, remuneration The trustees were not remunerated for their services during the year (2022 - £NIL). One trustee was reimbursed £3,000 in respect of mileage and subsistence expenses incurred during the year (2022 - £3,000). 10. Pension costs The group operates a defined benefit pension scheme. The scheme and its assets are held by independent managers. Charges incurred in arriving at operating deficit for the year and the statement of recognised gains and losses for the year are shown in note 20 the accounts. 11. Tax on ordinary activities No groiip charge to corporation tax arises in the year ended 31 March 2023 (31 March 2022 - £ nil), Derry Theatre Trust is a registered charity for tax purposes and the company policy of the subsidiary companies, is to gift aid any surplus to the parent company, Derry Theatre Trust. As a result no corporation tax liability arises. Page 25
DERRY THEATRE TRUST Notes to Financial Statements for the year ended 31 March 2023 continued 12. Deficit for tbe year attrlbutable to members, Th¢ trustees have taken advantag¢ of the exemption available under section 408 of the Companies Act 2006 and not presented a separate statement of financial activities for the charitable company. The results of the parent undertaking for the year ended 2023 showed a deficit of (£129,212) and a surplus of £1,081,788 after crediting a surplus on actuarial pension of £1,211,000 (2022 showed a deficit of (£305,008) and a surplus of £201.992 after Grediting a surplus of on actuarial pension of £507,000. 13. Intsngible fixed assets - Group and company Conference Ilcence Cost At l April 2022 At 31 March 2023 Total 20,443 Amortization At l April 2022 At 31 March 2023 20,442 Net book values At 31 March 2023 At 31 March 2022 Page 26
DERRY THEATRE TRUST Notes to Financial Statements for the year ended 31 March 2023 contiiiued 14. Tangible fixed assets Land and Fixtures, buildings PAazza Plant and fittings and freehold development machinery equipment Group Total Cost At l April 2022 11,369,599 487,326 2,616,284 907,528 15,380,737 At 31 March 2023 11,369,599 487,326 2,616,284 907,528 15,380.737 Depreciation At l April 2022 Charge for the year 4,242,363 207,392 240,553 2,521,137 7,702 821,383 7.825,436 33,214 248,308 At 31 Marcli 2023 4,449,755 248,255 2,521,137 854,597 8,073,744 Iyet book values At 31 March 2023 6,91 (),844 239,071 95,147 52,931 7,306 ()()3 At 31 March 2022 7,127,236 246,773 95,147 86,145 7,555,301 Land and Fixtures, buildings Piazza Plant and fittings and freehold development machinery equipment Company Total Cost At l AprAI 2022 Additions 11,369,599 487,326 2,616,284 864,898 15,338,107 At 31 March 2023 11,369,599 487,326 2,616,284 864,898 15,338,107 DeprecAation At l April 2022 Charge for the year 4,242,363 207,392 240,553 2,521,137 7,702 805,704 7,809,757 24,688 239,782 At 31 Marcli 2023 4,449,755 248,255 2,521,137 830,392 8,049,539 Net bookvalues At 31 March 2023 6,919,844 239,071 95,147 34,506 7,288.568 At 31 March 2022 7,127236 246,773 95,147 59,194 7,528.350 The cost of depreciable assets iiioluded in laiid and buildings at 31 March 2023 was £1 0,369,599. At tlie balance slieet date there was no inaterial difference between carrying value and market value. The building cost of the theatre building includes the build cost of three rental units. The total cost of tliese rental units is negligible compared to the total build cost. Page 27
DERRY THEATRE TRUST Notes to Financial Statements for the year ended 31 March 2023 continued IS. Group information Company M Forum Trading Limited and Millennium Forum Productions Limited (company's limited by guarante¢) arc wholly owned subsidiarics of Derry Theatre TrusL wliose registered offices are at Newmarket Street, Derry B T48 6EB. Derry Theatre Trust controls the voting rights of both companies. Subsidiary undertakings Country of ineorporatlon Nature of & Company No. busiDess Company Subsidiary undertakings M Forum Trading Limited Northern Ireland Operating a N1050180 theatre for Arts & Entertainmeiit Millennium Foruiii Productions Ltd Northern Ireland N1637011 Producing external toiiring performances The aggregate amount of capital and reserves and the results of these undertakings for the last relevent financial year were as follows: Results for the year Reseryes M Fonim Trading Limited Millennium Forum Productions Ltd (388,057) (1,560) Incom¢ for M Forum Trading Limited for the year amounted to £3,918,055 (2022 - £1,483,179) and expenditure for the year ainounted to £3.497,473 (2022 - £1,360,524). Nornial company policy of M Forum Trading Liinited is to gift any operating surplus to Derry Theatre Trust £420,582 (31 March 2022 £16,240). Income for Millennium b'orum Productions Ltd tor the year amounted to £nil (31 March 2022 - £nil) and costs for the year amounted to £1,560 (31 Maroh 2022 - £12,405). Page 28
DERRY THEATRE TRUST Notes to Financial Statements for the year ended 31 March 2023 . continued 16. Stoclis 2023 2022 Group Stocks 17,460 20,140 The replacement value of stock does not materially differ from cost. 17. Debtors Group Trade debtors Other debtors Prepayments 2023 2022 161,738 21,824 43,862 71,421 58,385 39.808 227,424 16C),614 Company Trade debtors Amoiints owed by M Forum Trading Limited Other debtors 27,527 406.923 8,433 48,032 162,270 17,563 442,883 227,865 18. Cash and cash equivalents Group 2023 2022 Cash at bank and in hand 2,454,07f) 1,902,777 2,454,076 1,902.777 Company 2023 2022 Cash at bank and in hand 920,267 855,456 920,267 85.5,456 Cash and cash equivalents on the balaiice sheet comprise bank accounts. Page 29
DERRY THEATRE TRUST Notes to FIDanclal Statements for the year ended 31 March 2023 . continued 19. Credfitors: amounts fallfing due wlthin one year 2023 2022 Group Trade creditor3 Deferr¢d income Other taxes and social security costs Accru¢d expenses 619,971 956,500 118,671 134.222 417,347 951,162 21.062 99,375 1,829,364 1,488 (J46 2023 2022 Company Trade cr¢ditors Deferred income Other tsxes and social securlty costs Accrued expenses 3,200 14,083 25,648 62,566 3,308 14,688 21,062 54,180 105,497 93,238 Seeurlty . Company Charitable company property is s¢cured by :" Debentures in favour of (l) The Millennium Commission and (2) The Department for Social Development on the Trust's Land contained in folios LY62853 and LY3478 County Londonderry. Loans from group companies are interest fr¢e, unsecured and repayable on demand. PAge 30
DERRY THEATRE TRUST Iyotes to Financlal Statements for the year ended 31 MaNh 2023 continued Group and company The charitable company operates a funded defined pension plan with benefits earned up to 31 March 2015 linked to filial salary and beiiefits after 31 March 2015 linked to a career average revalued earnings basis. The assets of the scheme are held separately from those of the charitable company. The pension scheme is a multi-employer defined benefit scheme administered by NILGOSC. The scheme operates on a roll forward approach of calculating pension scheme assets and liabilities by making adjustments to tlie results of the last full valuation (31 March 2022). 20, 20.1 Principal actuarial assumptions were . 2023 2022 Salary increase rate Pension increase rate CPI inflation Discount rate 2.6 3.0 Pension contributions are determined by Aon, a member of the Institute of Actiiaries, on the basis of the actuarial repoit in Apri12023. 20.2 The fair value of the scheme assets, the present value of the scheme liabilities and the resulting surplus/(deficit) are., Value at 31103123 Value at 31103122 Equities Bonds Property Other 1,168,400 689,356 327,152 736,092 1,339,767 840,087 312,300 630,846 Total market valiie of assets Present value of scheme liabilities 2,921,000 (2,856 000) 3,123,000 (4,112,000) Net pension asset / (liability) 65,000 (989,000) Page 31
DERRY THEATRE TRUST Notes to Financlal Statements for the year ended 31 March 2023 continued An analysis of the movements in the deficit during the year are shown below: Group and company 2023 2022 (Defi¢it) brought forward Total operating charge Total finance cost Actuarial gain Employer contributions (989,000) (231,000) (26,000) 1,211,000 i 00,000 (1,346,000) (199,000) (28,000) 507,000 77,000 Surplusl(Deficit) carried fonvard 65,000 (989,000) The employers, contribution into the scheme during the year ended 31 March 2023 amounted to £102,162 employers, contribution rate of 19.5% {31 March 2022 £79,782 at a contribution rate of 19.5%). The employ¢rs' contribution for the year ended 31 March 2024 is estimat¢d at £102,000. Page 32
DERRY THEATRE TRUST Notes to Financial Statements for Ihe year ended 31 March 2023 continued 20.3 Analysis ofthe amount charged to operaling (deficit) 2023 2022 Current service cost Return on pension scheme assets Interest on peiision scheme liabilities (231,000) (199,000) 85,000 60,000 (I I 1,000) (88,000) (257,000) (227,000) Total operatiiig charge 20.4 Analysis ofamount recognised in Statement oftotal recognised gains and losses 2023 2022 Actuarial (deficit) / gain on pension scheme assets Actuarial gaiii on the scheme l labilities (369,000) 154,000 1,580,000 353,000 Actuarial gain 1,211.000 507,000 20.5 History ofexperience gains and losses A history of experience gains and losses is shown below: 2023 2022 2021 2020 2019 Difference between the expected and actual return on scheme assets: amount (£) percentage of scheme assets Experience gains and losses on scheme liabilities: amount (£) percentage of the present value of the scheme liabilities Total amouiit recognised in Statement of total recognised gains and losses.. amount (£) percentage of tlie present value of the scheme liabilities (369,000) 154,000 453,000 (631,000) 116,000 (13)% (5)% (16)0/0 (28)% (4)0/0 1,580,000 353,000 (872,000) (266,000) (15,000) (9)0/0 (21)% (9)0/, (O)O/o 1,211,000 507,000 (419,000) (365,000) 101,000 (42)0/0 (12)% (12)0/ (12)% (3)O/0 Page 33
DERRY THEATRE TRUST Note8 to Flnan¢ial Ststements for the year ended 31 March 2023 . continued 21. Flnanelal commltments - offiee equlpment At 31 March 2023 the group had annual commitments und¢r non-cancellable operating leases as follows . 2023 2022 Expiry date . Within one y¢ar Between one and five years 1,594 1,509 1,806 3,300 3,103 5,106 Page 34
DERRY THEATRE TRUST Notes lo Financial Statements for the year ended 31 March 2023 continued 22. Restricted funds - Group 2022 Income Expendlture 2023 Restricted capital funds Capital projects Donation 7.302.442 95,000 (229,040) 7,073,402 95,000 7,397,442 (229,040) 7,168,402 Restricted income funds D¢v¢lopment donations Derry Clty & Strabaiic District Council Arts Council for Northerii Ireland Other grants 879,961 182,143 443,300 140,100 91,1186 1,062,104 (443,300) (140.100) (91,086) 879,961 115C),629 (674,486) 1,062,104 Total group restricted funds 8,277,403 856,629 (903,526) 8,230,506 Restricted funds - Company 2022 Income Expenditure 2023 Restricted capital funds Capital pi'ojects Donatioii from Arts Council 7,275.491 95,00 (220,514) 7,054,977 95,000 7,370 111)I (220,514) 7,149,977 Restricted income funds Development donation fund Derry City & Strabaiie District Council Arts Council for Northern Ireland Surldry grltS 879,961 182,143 443.300 140,100 33,167 1,062,104 (443,300) (140,100) (33,167) 879.()61 798,710 (616,567) 1,062,104 Totsl company restricted funds ¥,250,452 798,710 (837,081) 8,212,081 Purpose of restricted funds Cor¢ grants received from Derry City & Straban¢ District Coiinoil and The Arts Council of Northern Irelaiid are aniiual operating grants contributiiig towards the operaling costs of Ihe Ihealre. These graiits ar¢ fully utilised in the year. The Nalional Lottery Community F4und also provided assistance during the year in resp¢ct of a grant to cover salaries. Capital project fund graiits are the Original capital funding froin donors The Millennium Commission, The Arts Council of Northerii Ireland, Derry City Council, DSD and Tara Consultants, towards the biiilding costs of The Milleiiniuin Foruin. This funding is reduced annually by tlie related depreciation cliarge on the assets ot the company. Page 35
DERRY THEATRE TRUST Notes to Financlal Statements for the year ended 31 March 2023 coiitinued The developmeiit donation fund is a donation added to ticket costs to be used for improveinents, development of shows, eiihancement expenditure and to finance future refurbishment projects. Other grants received duriiig the year were from Arts & Business. Derry City and Strabane District Council, The Arts Council of Northern Ireland,Tourism NI and Children In Need contribute towards l) The cost of theatrical perfOnn1CeS produced by the Millennium Forum, including Interact Youth Arts Festival and Education Programine productions and 2) Sundry income / capital projects. 23. Unwtricted funds - Group Actuarial pension gain 2022 Income Expenditure 2023 Total unrestricted funds (1.107,516) 3,985,981 (4,0711,381) 1,211,000 11,084 Unrestricted funds - Company Actuarial penslon Income Expenditure surplus 2022 2023 Total unrestrlcted funds (7?1,018) 554,953 (645,794) 1,211,000 399,141 Purposes of unrestrieted funds Unrestricted funds are funds that are utilised at the discretion of the trustees in furtherance of the objectives of the cliaritable grouplcompany. Included in company unrestricted funds is gift aid from the subsidlary company, M Forum Trading Liinited and tal income. Included in group unrestricted incom¢ is all income and costs froin the subsidiary trading companies, M Forum Trading Limitcd and Millennium Forum Productions Limited. Page 36
DERRY THEATRE TRUST Notes to Financial Statements for the year ended 31 March 2023 continiied 24. Company limited by guarantee The charitable compaiiy is limited by guarantee not having a share capital. Every member of tlie charitable company iindertakes to coiitribiite to th¢ assetslliabilities of the charitable compaiiy in the eveiit of tlie saine being woiii)d up while helslie is a Inember, or within one year after he/slie ceases to be a meinber, for paymeiits of the debts aiid liabilities of the cliaritable company coiitracted before he/she ceases to be a member, aiid of the costs, charges and expenses of winding up and for the adjustinent of the rights of the contributories amongst themselves, such amount as maybe required not exceeding one pound. 25. Analysis of changes in net debt Opelling balance Cash flows Closing balance Group Casli at bank and iii liand 1,902,777 551,299 2,454.U76 Opening balance Cash flows Closing balance Company Cash at bank and in haiid 855,456 64,811 920,267 26. Relaled party transactions Derry City & Strabane District Council nominate councillors, Shauna Cusack, Patricia Logue, Sean Carr, Sean Fleming and Niree Mcmorris to the board of trustees. The Council provided funding duriiig tlie year of £460,441 (2022 - £446,750). Transactions wlth the chief executive officer, David McLaughlin, during the year, amounted to £18,402 in respect of pantoinime royalties and mileage (2022 - £9,655). Transactioiis with Martin Bradley, trustee and chairman, during the year amounted to £3,000 (2022 £3,000) in respect of mileage & subsistence expenses. Room reiital incoine received during the year, froin Foyle School of Speech aiid Drama, an organisation operated by trustee, Sandra Biddle, amounted to £9,370 (2022 - £4,8741). Martin Mullan is a director of Grove Theatre. Room rental income received during tlie year was £5,175 (2022 - £933). Page 37
DERRY THEATRE TRUST Notes to Financial Statements for the year ended 31 March 2023 continued 27. Analysis of net assets between funds for the group I company Unrestricted Restricted funds funds Total 2023 Consolidated fund balances at 31 March 2023 Fixed assets Net current assets Pension asset 169,011 7,137,983 (222,927) 1.092,523 65,000 7,306.994 86(),5()6 11,084 8.230,50() 8,241,5YO Unrestricted Restricted funds funds Total 2022 Consolldated fund balances at 31 March 2022 Fixed assets Net current assets Pension liability 188,279 7,367,U23 (306,795) 910,380 (989,000) 7,555,302 603,585 (989,000) (1,107,516) 8.277.403 7,169.887 Unrestricted Restricted funds funds Total 2023 Company fund balances at 31 March 2023 Fixed assets Net current assets Pension asset 169,011 7,119,558 165,130 1,092,523 65,000 7.288,56L) 1 ?57,653 65,000 399,141 8,212,081 8,611 ?22 Unrestricted Restricted funds funds Total 2022 Company fund balances at 31 March 2022 Fixed assets Net current assets Pension liability 188.279 7.340,072 79,703 910,380 (989,000) 7,528,351 990 083 (989.000) 7,529,434 (791,018) 8,250,452 Page 38