Registratlon Number N1031527 Charity Number NIC104797 DERRY THEATRE TRUST Trustees, Report and Consolldated FIDanclal StstemeDt¥ for the year ended 31 Marcb 2024 DERRY THEATRE TRUST Trustees, officers and Advisors Martin Bradley Mary McKenna Martin Mullan Caitlyn Kelly Dolores OReilly Conal Casey Shauna Cusack* Resigned 03 July 2024 Sean Carr Resigned 04 May 2023 Patricia Logue Resigned 04 May 2023 Sean Fleming Appointed 06 July 2023 Niree Mcmorris Appointed 06 July 2023 Brian Tierney Appointed 04 July 2024 nominated by Derry City & Strabane District Council Trnstees of - Derry Theatre Trn8t and M Forllm Tradlng Llmfited Appointed 02 November 2023 Dlrectors of subsidiary company Millenllium Fornm Productions Limited Martin Bradley David McLaughlin Key Management Personnel Chief Executive Officer Finance Manager Box Office Manager Technical Manager General Manager Secretary Mary McKenna David McLaughlin Elaine McParland Lisa Heaney Chloe HarkinlLorcan McLaughlin Paul Mason HMRC Charity No. Cbarlty Commlssfion No. XR16635 NIC104797 Registered Offlee & Buslness Address Newmarket Street Londonderry BT48 6EB Independent Auditors McDaid Mccullough Moore Chartered Accountants and Statutory Auditor 28132 Clarcndon Street Derry BT48 7HD Bankers Allied Irish Bank Strand Road Londonderry BT48 7TN Solicltors Guckian Flanagan Solicitors 7 Limavady Road Londonderry BT47 6JU DERRY THEATRE TRUST Trustee81 Report and Consolldatsd Flnanclal Statements for the year ended 31 March 2024 Contents Page Trustees, annual report (incorporating dir￿torS report and strategic report) 2 - 7 Trustees, r¢spoiisibility ststemeiit Independent auditors, report 9-12 Consolidatsd statement of financial activities 13 Consolidated statement of financial position 14 Company statem¢nt of fllwiclal position 15 Consolidated statement of cash flows 16 Not￿ to the fmancial ststements 17-38 Page I DERRY THEATRE TRUST Company limited by guarantee Trustees, report (Incorporating the directors, report and strateglc report) for the year ended 31 Marcb 2024 The Trustees, (in their capacity as Trustees, and Directors) present their annual report for the year ended 31 March 2024. This report has been prepared by the trustees, in accordance with the requirements of Section 414 of the Companies Act 2006. The company is a registered charity, limited by guarantee whose governing document is the memorandum and articles of association. Strategic Report Objectives & uctivities The principal activity of Derry Theatre Trust is the operation of th¢ Millennium Forum theatrc complex for arts and entertainment purposes. The Trust was established to promote, maintain. improvc and advance the education of the public in the City of Derry and Northern Ircland, in the Arts. To achieve this objective the theatre has put on a wide varicty of shows, including professional shows such as West End productions, perforniances by local amateur drama groups, educational projects, comedy acts and int¢rnationally recognised musicians. The general public, male and female, young and old, have acc¢ss to a wide variety of perforniances to suit all t&st¢s. The theatre also provides an eduGational outr¢ach programme during the summer months in conjunction with local schools and local groups which provides a framework for development of local artists. The facilities of the theatre are also used by local drama, music and dance groups. Th¢ aims of D¢rry Th¢atr¢ Trust / the Millennium Forum theatre are: to present a unique theatrical experience. - to promote arts & culture in the North West of Ireland. - to establish the Millennium Forum as a leading 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 the regional theatre of choice for the North West, delivering a financially sustsinable mixed arts programme accessible to the majority of people in the catchment area. The entertainment programme aims to satisfy the audience, ensuring maximum box office income at minimum cost, 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 the heart of what it means to be a charity. Derry Theatre Trust's principal objectivc is to estsblish, maintain and promote a theatre for arts and Cntertainment puiposes. tn setting this objective the Trustees have c,nnsidered the c.harity Commission for North¢rn Ir¢land's guidance on public benefit to ensure that its activities have helped to achieve its principal objective of public benefit for its bcneficiaries. The public benefit that Derry Theatre Trust provides through promoting its activities are: - presenting liv¢ perfonnances of plays, musicals, Oper￿ dance, comedy acts, childrens shows and various genres of music. - providing hire facilities for local groups (drama, musioal, dance); provision of an all in one leisure facility in the form of theatr¢, food & bar facilities. enhancing the local economy from audiences visiting the theatre and staying in the area, r¢sulting in increased business for hot¢ls, bars, restaurants and taxi companies; Page 2 DERRY THEATRE TRUST CompaDy limited by guarantee Trustees, report (Ineorporatlng the dlrectors, report and strategie report) for the year eDded 31 March 2024 . continued - contracting with local suppliers for foodlbar stocks, brochure production and advertising. and - providing full and part time employment. The Trustees, give careful consideration in setting admission prices to the theatre, so that the facility is accessible to everyone interested in the Arts, in that admission prices differ dcpending on the night of the perforniance. on scat location etc. Local amateur drama groups also benefit from reduced theatre hire ratcs. The trustees, believe that they are therefore meeting thc public benefit test by increasing the accessibility of the theatre to l)oth paying patrons I local groups and the commercial ettect ot the theatrc location to the local ¢¢onomy. Achievements and perforniaDces Key perforniance indicators for the company are as follows: 2024 129 250 168,999 2023 120 231 168,501 Shows/conf¢renrKs Performances Audi¢n¢¢ Flnanclal revlew Income for the yw was £5.540,770 (2023 £4,842,610 ) resulting in an operating surplus of £106,101 (31 March 2023 - deficit £139,297) before actuarial changes in the pension scheme. A detailed analysis of income and expenditure is provided in notes to the accounts. N¢t assets at the balance sheet date were £8,292,691 (31 March 2023 - £8,241.590). Th¢ valuation of the pension scheme assets and liabilities at the balance sheet date resulted in an actuarial deficit for the year of (£55,000) (31 March 2023 - surplus £1,211,000). The movement on the pension scheme perfomiance was a result of changes to key assumptions used to calculate the present value of the scheme assets and liabilities. Continued provision of core funding from Derry City & Strabane District Council £376,805 (31 March 2023 - £443,300) and The Arts Council £90,250 (31 March 2023 - £90.250) are of vital importance to the operation of the theatre. Additional funding of £83,231 from the Arts Council was obtained to help with refurbishment costs at the theatre. The Trustees gratefully acknowledge the continued support of all funding bodies. Th¢ trust¢¢s' ar¢ satisfi¢d with th¢ r¢sults for th¢ y¢ar. Principydl Tisks and uncertainties The management has conducted its own review of the major risks to which th¢ Trust is exposed and systems have been established to mitigate those risks. The principle risk in the current climats is business perfomiance risk. This is the risk that th¢ theatr¢ will not operats as expected due to both intsrnal and external factors such as Covid-19 and social distancing requirem¢nts and also competition in th¢ Arts s¢¢tor. Measures to mitigate this risk includ¢ appropriat¢ management personnel, business planning and reporting and financial controls. Page 3 DERRY THEATRE TRUST Company limlted by guarantee Trustees, report {incoryorallng the directors, report and strategie report) for the year ended 31 March 2024 . continued The Trust continually monitors its exposure to financial risk. Given the size of the group & Company, the trustces have not delegated the responsibility of monitoring financial risk to a sub committee. Thc policies set by the trustees arc implemented by the finance department. The f￿anCIal viability and sustainability of the theatre is a major risk rccognised. The shows performance schedulc is of utmost importance and is carefully planned to ensure adequate cashfiows and where possible to maximise funding. Diversification of activities via M Forum Trading Limited and Millennium Forum Productions Limited, including more emphasis on the income generated from thc bars. sponsorship and advertising liavc also beeli identified. Business and financ¢ risk is managed by ensuring appropriate staff. with appropriate experience are in place and budgets and forecasts prepared and reported on monthly. The reporting network makes use of an established IT system which combines a general accounting packag¢, a bar softwar¢ package and a box offic¢ system, all of which are Gontinuously updated and maintained. The Trust's financial assets includ¢s cash, trade and other debtors and trade creditors and accruals together with deferred income. Associated risks include or¢dit risk and liquidity risk. To minimise credit risk the Trust has Implemented poli¢i¢s that ￿qUIre appropriate credit checks on pot¢ntial ¢ustom¢rs before transactions take place. To minimise liquidity risk p¢rformances are carefully planned to ensure appropriate cash flows exist to meet operational costs (advance box office ticket sales r¢du¢es liquidity risk). Internal risks are minimised by the implementation of controls and procedures for authorisation of all transactions. The theatre is committed to operating in a healthy and safe working environment. Health & safety risk is minimized by implementation and promotion of health and safety policies and extensive training. Health & safety measures introduced include appointment of a Health & Safety officer, hand and hygiene washing procedures, social distancing protocols - signage and floor markings and provision of PPE equipment. Healtb & safety The company has in place a Health and Safety Policy which requires it to comply as a minimum with all legislation and to take all reasonable practicable steps to ensure the safety, health and welfare of all employees, patrons and anyone else affected by the activities carried out. Trnste,e,s' Annual Report Structureg governance and management Governing document The Trust is a charitable company, limited by guarantee (with no share capital) and its governing document is its Memorandum and Articles of Association. The Trusts charitable status is recognised by HM Revenue & Customs Charity number XR16635. The company is r¢gist¢r¢d with the Charities Commission, No. NIC104797. Page 4 DERRY THEATRE TRUST Company lfimited by guarantee Trustees, report (incoryorating the directors, report and strategic report) for the year ended 31 March 2024 continued Organtsatiollal structure Derry Theatre Trust is managed by the trustces. Trustees are eithcr nominatsd - by Derry City & Strabane District Council or ordinary chos¢n based on their skills and professional backgrounds so as to ensur¢ a wide range of experience is represented on the Board. Trustees meet bi-monthly to review performance. determine strategies, assess risk and plan future policies. The Trust has two wholly owned subsidiary companies, M Forum Trading Limited and Millennium Forum Productions Ltd. M Forum Trading Limited is responsible for the th￿trical operation of the Millennium Forum. including all ancillary services such as the operation of the box ofifice and the bars. All costs incurred, other than wages (a cost of Derry Theatre Trust), are incurred by M Forum Trading Limited. Any year end surplus is giftcd to Derry Theatre Trust. who also collects the rental incornc, receivcs the operating grants from Derry City & Strabane District Council and the Arts Council and employs and pays the staff to operate the theatre. The Trust owns the freehold property and the plant and machinery together with fixtures and fittings. Millennium Forum Productions Ltd is responsible for producing the external touring performances of "Titanic Dance" and other productions that may arise. The Trust is managed daily by th¢ chief executive, David McLaughlin and senior employees. The senior employees from finance, box office, marketing, development, front of house, technical and the bars. report daily to the chief executive ensuring the smooth operation of the theatre. The chief ¢x¢cutive is responsible for artistic policy, Contracting with artists and booking the daily program of performances aiid also for ensuring that the theatre complies with all relevent regulations including Covid-19 and social distancing regulations and other health & safety requirements of staff and the public. Various sub committees operate at the 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 and career development for staff membcrs (and potential staff members) regardless of marital status, religion, colour, race. ¢thnic origin or disability. The Trust also accommodatcs customers with disabilitics with the use of Braille materials. captioned performances, the loop system, signed perforn]ances, relaxed performances and spe£ial access to certain parts of the auditorium. Appointment and training of trustees New trustees are nominated by current trustees and from nominations proposcd by Derry City & Strabane District Council. Induction and training of new trustees is provided by existing trustees and by employees. Additional governance training was provided during the year. Most trustees, due to their experience and backgrounds are already familiar with th¢ work of the theatre. Investment pollcy The Trust operates a prudent Anvestment policy. Investments opportuniti¢s when they aris¢ ar¢ in the form of short term, low risk bank deposits. Page 5 DERRY THEATRE TRUST Company limited by guarantee Trustees, report (incorporating tbe directors, report and strateglc report) for the year ended 31 March 2024 . continued Reseryes policy The trustees have examined the charity's requirements for reserves taking into account the risks that the Trust has recognised. The reserve requirement is estimated to be at least three months of expenditure. Expenditure of the charity is currently £5.4 million, equating to quarterly expenditure of approximately £1.35 million. The Trust intends to increase reserves to this desired level when future opportunities arise. The actual reserves at 31 March 2024 falls short of the desired level and the trustees recognise it will take a considerable period of time to achieve their target but anticipate a gradual increase over tim¢. Plans for the future The Trust¢¢s' future aims are: l. The financial viability of the theatre. 2. Maintaining the theatres position as the ultimate venue of choice for theatre 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 new patrons to the theatr¢' 5. To co-operate with other bodies in producing work that can tour the major th¢atres in Northern Ireland, the Republic of Ireland, mainland UK, China and USA. and 6. To make facilities available to local groups, at a cost that is not prohibitive. The Trustees,, as a result of the above aims, expect to increase core revenue streams whilst continuing to promote non core activities. The future plans of the Trust encompass strategies that are designed to broaden the Theatre's audience base. to confirm its position as the cultural centre of the north west and to maintain financial stability. Related partles Derry City & Strabane District Council, with whom the company has a close working ￿latIOnshIp, nominates trustCCS to the board of trustces and attcnds th¢ 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 £217,560 (31 March 2023 - £182,143). This donation is a restricted fund and will be, iised for improve,ments, development of shows, enhancement expenditure and future refurbishment projects at the theatre. Environmental policy The group & company is committed to reducing its environmental impact and to continually improving its environm¢ntal p¢rformanrK. It has a duty of car¢ with r￿p¢¢t to its ¢nvironmcntal practice and to achieve this it: wholly supports and complies with the requirements of cur￿nt ¢nvironmental legislation and codes of practi¢¢' Page 6 DERRY THEATRE TRUST Company limited by guarantee Trustees, report {IDcorporatlng the dlre¢tors' report and strategie report) for the year ended 31 March 2024 . continued - minimises waste and recycles as much as possible. minimises energy and water waste in order to conserve supplies and also consumption of natural resources, especially where they are non-renewable. - operates and maintains equipment with due regard to environmental issues. - assesses, in advance, the environmental impact of any new products or services intended for introduction, so that no damage is done to the environment. ¢nsures that all employees understand thc group & company's environmental policy and conform to the standards by training and instruction. promptly addresses any complaints about br￿cheS of environmental policy to the satisfaction of all concerned. and - constantly revi¢ws policy to ensurc adequacy. StatemeDt of dlsclosure of information to auditors We, the trust¢¢s of th¢ ¢haritabl¢ company who held office at th¢ date of approval of these financial statements &s set out above each confirm. so far as we are awar¢, that: there is no relevent audit information (information needed by the Charitable group & company's auditors in connection with preparing their report) of which the charitabl¢ company's auditors are unaware, and we have taken all the steps that w¢ ought to have taken to make ourselves aware of any relevent audit information and to establish that the charitable company's auditors are aware of that information. Auditors McDaid Mccullough Moor¢ are deemed to be reappointed in accordance with Section 487(2) of the Companies Act 2006. This report is prepar￿ in accordance with the special provisions of part 15 of the Companies Act 2006 relating to medium sized companies. The Chairman and Trustees would like to express their thanks to the management and staff at the Millennium Forum for their endeavours over thc last year and to the theatre patrons for their continued support. This report was approved and authorised for issue by the Trustees on 5 September 2024 and signed below on it5 behalf by: Mary McKenna Secretary Page 7 DERRY THEATRE TRUST Trustees, responsfibllity statement for the year ended 31 March 2024 Trustees, responsibllitles The trustees are responsiblc for preparing the trustees annual r¢port and the financial statements in accordance with applicable law and regulations. Company law requires the tru5t¢es to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practicc (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statcmcnts unless they are satisfi¢d that they give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, iiicludiiig Ilie iiiLuIiie ￿ld expeIidilure, ol ilie LI1<￿Ildble LOlllPèUiy lur Llial ycar. Iii pi'epal'iiig LEivbC financial statements the trustees are required to: select suitable accounting policies and apply thcm consist¢ntly' observe the methods and principlcs in the Charities SORP2019" make judgements and estimates that are reasonable and prudent. state whether applicable UK Accounting Standards hav¢ been followed, subject to any material d¢partUTes disclosed and explained in the financial statements. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company transactions and disclose with reasonable accuracy at any tim¢ th¢ financial position of th¢ charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable Company and hence for taking r¢asonable steps for the prevention and detection of fraud and other irregularities. PAge 8 DERRY THEATRE TRUST llldependent auditor's report to the members of DERRY THEATRE TRUST W¢ have audited the financial statements of DERRY THEATRE TRUST (the charitable company) and its subsidiaries for the year ended 31 March 2024 which compris¢ the consolidated statement of financial a¢tiviti¢s, the consolidated and charitsble company statement of financial position, the ¢onsolidat¢d statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting fram¢work that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 Th¢ Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion thc financial statemonts: give a triie and fair view of the state of th¢ groiip's and parent charitable ¢ompanYs affairs as at. 31 March 2024, and of the group's incoming resources and application of resources, including its income and expenditure, for th¢ year then ended. hav¢ been properly prepared in accordance with United Kingdom G¢n¢rally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISA'S (UK)) and applicable law. Our responsibiliti¢s under those standards are further described in the Auditovs responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical r¢quirem¢nts that are rel¢vant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordanc¢ with these requirements. We believe that the audit ¢vid¢nce w¢ have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusfions relallng to Golng Concern In auditing the financial statements, we have concluded that the trustees 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 uncertainti¢s relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statem¢nts are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the r¢lev¢nt sections of this report. nthe.r lnfnrmat.lfin The trustees, are responsible for the other information. The other information comprises the information included in the trustees, annual report, other than the financial statements and our auditor's report thereon. Our opinion on the f￿anCIal statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion th¢r¢on. In connection with our audit of the financial statem¢nts, our r¢sponsibility IS to read the other inforniation and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise app¢ars to be materially misstated. If w¢ identify such material inconsistencies or apparent material miststatem¢nts, we are required to detenTAine whether th¢r¢ is a mat¢rial misstatement in the financial statements or a material misstatement of the other inforn]ation. 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 have nothing to report in this regard. Opinlon oll other mAtters prescrfbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the truste¢s' report (incorporating the strategic report and the trustees, report) for the financial year for which the financial statements are prepared is consistent with the financial stat¢ments' the trust¢¢s' report (including the strategic report) h&8 heen prepared in accordance with applicahle legal requirements. Matters on which we are requfred to report by exception In the light of our knowledge and understanding of the group & ¢ompany and its environment obtained in the course of the audiL we have not identified Materi￿ misstatements in the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to r¢port to you if, in our opinion: adequat¢ a¢¢ounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us. or the charitsble group & company's financial statements are not in agreement with the accounting records and returns. or certain disclosures of trustees, remuneration specified by law are not made" or we have not received all the inforniation and explanations we require for our audit. Responsfibilities of trustees, As explained more fully in the trustees, responsibilities statemenL the trustees, (who are also the directors of the charitable Company for the purposes of company law) ar¢ responsible for the preparation of th¢ finanoial statements and for being satisfied that they give a true and fair view, and for such internal control as the truste¢s' detem)ine is necessary to enabl¢ th¢ preparation of financial statements that ar¢ fre¢ from material misstst¢ment, whether due to fraud or error. In preparing the financial statements, the trust¢es' are responsible for assessing the group's and parent 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 trustees, either intend to liquidate the group or the, pare.nt charitable. company or to c.e,ase, ope,rations, or hav¢ no r¢alistic, alte.rnativ¢ biit to do so. Auditor's responsibilities for tbe audlt of tbe financial statements Our obje¢tives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether du¢ to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit Conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are ¢onsid¢red material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Page 10 DERRY THEATRE TRUST Independent auditor's report to Ihe members of DERRY THEATRE TRUST conlinued I￿egularitIes, in¢luding fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material mistatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irr¢gularities, including fraud is detailed below. Based on our understanding of the charitable group & company and the environment in which it operates, w¢ identified that the group & CoMpan￿S principal risks were of non-compliance with laws and regulations relating to charitabl¢ companies, and we considered th¢ extent to which non-compliance might have a material effect on the financial statements. We also considered laws and regulations that have a direct impact on the preparation of the financial stst¢ments such as the Companies Act 2006, income tax and payroll tax. Audit pro¢¢dures perfonned to address the risk included the following: Inspecting correspondence with regulators and tax authorities. Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud. Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. Identifying and testing journals and the rationale behind significant or unusual trans￿tiOns, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions. Challenging assumptions and judgements made by management in their critical accounting estimates. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordanc¢ with auditing standards. For example, th¢ furth¢r removed non-compliance with laws and regulations (irregularities) is from the events and transa¢tions r¢fl¢¢ted in th¢ financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remains a higher risk of non-detection of irr¢gulariti¢s as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. As part of an audit in accordanc¢ with ISAS (UK), we exercise professional judgement and maintain prof¢ssional 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 provid¢ a basis for our opinion. The risk of not detecting a material misstat¢m¢nt resulting from fraud is higher than for one resulting from error, as fraud may involv¢ collusion, forgery, intentional 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 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 of the effectiveness of the company's internal control. evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatcs and related disclosures made by the trustees,. conclude on the appropriateness of the trustees, use of the going concern basis of accounting and, based on the audit evidence obtained. whether a material uncertainty exists related to events or conditions that may cast S]￿lFiCant doubt on the charitable CoMpan￿S ability to continue as a going concern. If we conclude that a material uncertainty exists. we are required to draw attention in our auditor's report to the related disclosures in the financial statemcnts or. if such disclosures are inadequate. to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However. future events or conditions may causc the charitable company to cease to continue as a going concern. evalvate the overall presentation, structure and content of the financial statements, including th¢ disclosures, and whether the financial stat¢m¢nts represent the underlying transactions and ¢v¢nts in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of 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 Companies Act 2006. Our audit work has been undertaken so that we might state to the charitabl¢ company's members those matters we are required to state to them in an auditor's report and for no other purpose. To th¢ fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have forn]ed. ccullough (Sonior Statutory Auditor) or and on behalf of M¢Daid M¢Cullough Moore Chartered Accountants and Statutory Auditor 28132 Clarendon Street Derry BT48 7HD Date . 5 September 2024 Page 12 In in 4 tr- In in C4m Cr in o r41 * m tr4 f4 ￿ f-- Lr¥ ¢n rn r4 &&&&& ￿ t4U DERRY THEATRE TRUST Company No.N1031527 Consolidated statement of financlal posltloD as at 31 March 2024 2024 2023 Notes Fixed assets Intsngible assets Tangible assets 13 14 7,066.130 7,306,993 7,066,131 7.306,994 Current assets Stocks Dcbtors Cash at bank and in hand 16 17 18 22,974 196,102 2.986,360 17,460 227.424 2.454,076 3,205,436 2,698,960 Credltors: amounts falling due within one year 19 (1,978,876) (1.829,364) Net Current assets 1,226,560 869,596 Total assets less current liabilities Pension 8,292,691 8,176 590 65,000 20 Net assets 8,292,691 8,241,590 Funds Restricted funds Unrestricted funds 22 23 8,223,026 69,665 8,230,506 11,084 Total charity funds 8,292,691 8,241,590 The financial statements were approved and authorised for issue by the Trustces on 5 September 2024 and wei'¢ sigiicd beluw uii ils biliaif by Martin Bradley Trustee Mary McKenna Trustee The notes on pages 17 to 38 fom an integral part of tbese financlal statemenls. Page 14 DERRY THEATRE TRUST Company No.N1031527 Company statement of flnaDcial position A8 at 31 March 2024 2024 2023 Notes Flxed assets Intangible assets Tangible assets 13 14 7,056.231 7.288,568 7,056,232 7,288,569 Current assets Debtors Cash at bank and in hand 17 18 863,095 1,107,264 442,883 920,267 1,970,359 1,363,150 Credltors: amounts falllng due within one year 19 (355,260) (105,497) Net current assets 1,615,099 1,257,653 Totsl assets less current lfiabllltles Pension 8.671,331 8.546,222 65,000 20 Net assets 8,671,331 8,611,222 Funds Restricted funds Unrestricted funds 22 23 8,213,127 458.204 8.212,081 399,141 Total charlty funds 8,671,331 8,611,222 The financial statements were approved and authorised for issue by the Trustees on 5 September 2024 and were signed below on its behalf by Mllrtin Bradley Trustec Mary McKenna Tnistee The notes on page8 17 to 38 form fiDtegral part of these flnanclal statements. Page 15 DERRY THEATRE TRUST Consolldated statement of cash flows for the year ended 31 March 2024 2024 2023 Notes Cash floivs from operating aetivitie8 Net operating surplusl(deficit) before actuarial (deficit)Igain 106,101 (139,297) Ad]￿'¢mentsfOr.. Depreciation Def￿ed benefit pension scheme service cost Other interest receivable and similar income Interest payable and similar expenses 240,863 10,000 (72,560) 1.973 248,308 157.000 (13,542) 798 Changes in.. Stocks D¢btors Creditors (5,514) 31.322 149,512 2,680 (57,810) 340,418 Casb generated from operating aetivities 461.697 538,555 Other intsrest receivable and similar income Interest payable and similar expenses 72,560 (1,973) 13.542 (798) Net increase In cash and ¢ash equivalents ID the year Net debt at l April 2023 532,284 2,454,076 551,299 1,902,777 Net Cash and Cash equlvalents at 31 March 2024 18 2,986,360 2,454,076 Page 16 DERRY THEATRE TRUST Notes to Financial Statements for the year ended 31 Marcb 2024 Accounting Policies 1.1. Accounting conventlon and basis of preparatlon Th¢ charity constitutes a public benefit entity as defined by FRS 102. Derry Theatre Trust is a private company limited by guarantee, registered in Northern Ireland. The address of the registered office is Millennium Forum, Newmark¢t Street, Derry BT48 6EB. The group financial statements have been prepared under the historical cost convention and in accordance with the Charities SORP {FRS 102) for charities preparing their accounts in accordance with the financial Reportiiig Standard (FRS 102) applicable iii tlie UK aiid Republikn of Ii'elaiiLI (issued in October 2019), the Companies Act 2006 and under the Companies Act 2006 (Strategic Report and Directors, Report ) Regulations 2013. The financial statements are prepared in sterling, which is the functional currency of the entity. Accounting policies have been applied consistently in the current and preceding year. 12. Basis of Consolidatlon The Group financial statements comprise the financial statements of Derry Theatre Trust and its subsidiary compani¢s, M Forum Trading Limited and Millennium Forum Productions Limited. Th¢ f￿ancIal statements of the subsidiary companies are prepared for the same reporting Ye￿ as the parent company, using consistent accounting policies. A subsidiary is an entity controlled, either dir¢¢tly or indirectly, by the Company, where control is the power to govern the financial and operating policies of the entity so as to obtain benefit from its activities. The directors have taken advantage of the exemption 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 the charity is entitled to the income and the amount can be quantificd with reasonable accuracy. Income represents theatre ticket sales, thcatre alld room rentals, merchandise income, bar and confectionery sales and income from advertisin marketing & sponsorship, exclusive of value added tax. Income also includes grant income from Derry City & Strabanc District Council, the Arts Council and Arts & Business. Income from theatre ticket sales, rcceived in advance of a performanc¢, is d¢f¢rr¢d to the dats of the performance and matched against the cost of thc r¢l¢vant perforniance. Capital grants are recognised in the year of receipt in the statement of financial activities and treated as restricted ￿ndS with th¢ related depreciation of the assets charged against the same fund. The deferred development donation, is recognised when received, is a restricted fund donation added to the ticket wsts to the patrons of th¢ th¢atr¢ and is used for improvements, development of shows, enhancement expenditur¢ and to finance future refurbishment projects. Page 17 DERRY THEATRE TRUST Notes to Financial Statements for the year ended 31 March 2024 . continued 1.4. Expenditure Expenditure is recogniscd on an accruals basis as a legal liability is incurred and can be reliably measured. Expenditure. where relevenl is exclusivc of VAT. Charitable activities expenditure comprises those costs incurred by the charity in the deliverance of its charitablc activities. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support thcm. Support costs not directly related to theatrical perforniances 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 conferenc¢ lic¢n¢¢ is valued at cost less accumulated amortisation. Amortisation is calculatsd to writ¢ off the Cost in equal annual instalm¢nts over their estimat¢d useful life of 5 years. 1.6. Tanglble Ilxed assets and depreciation Tangible fAxed assets with a life ¢xp¢ctancy of greater than one year, are initially r￿orded at cost and subsequently stated at cost less any accumulated d¢preciation and impairment losses. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows: Buildings Piazza development Plant and machinery Fixtures, fittings and equipment straight line over fifty years 20/0 - 200/0 straight line 100/0-20 % straight line 200/0 straight line Land is not depreciated. 1.7. Impairnient of a&8ets A revicw foi. iiidiLalvi'>* of ijiiP