Charity registratlon number XR106442 Company registration number N1014495 (Northem Ireland) CRESCENT ARTS CENTRE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 CRESCENT ARTS CENTRE LEGAL AND ADMINISTRATIVE INFORMATION Trustees J Kirk K Beggs M Campbell K Collins R Hooper EHOY N Shannon A Holmes C Magulre Charlty numbèr XR106442 Company number N1014495 Reglstered office 24 Universlty Road Belfast BT7 1NH Audltor Harbinson Mulholland Centrepoint 24 Omeau Avenue Belfast Co. Antrim Northern Ireland BT2 8HS Bankers Ulster Bank 91193 University Road Belfast BT7 1NB CRESCENT ARTS CENTRE CONTENTS Page Trustees, report statement of Trustees, responsibilities Independent audltorfs report 7-10 Statement of financial activities 11 statement of financial position 12 Statement of cash flows 13 Notes to the financial statements 14-25 CRESCENT ARTS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2023 The trustees who are also directors of the charity for the purposes of the Companies Act 2006 present their report and financial statements for the year ended 31 March 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" effective January 2015. and FRS 102 'The Financial Reporting Standard Applicable in the UK and Republic of Ireland" The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Igoverning document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities p￿parIng their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102)" {effective 1 January 2019). Objectlvas and actlvltl•$ Our Vlslon is a society which actlV81y values and promotes ¢re8tivity and the arts for everyone. Our Mlsslon Is lo be a vibrant and welcoming hub where everyone can experience the power of the arts and develop their creativity. The Crescent's purpose Is lo make a difference to everyday lives, through offering creative opportunities. ST The Crescent operates within a set of key principles that encapsulate our belief that arts centres: 1. Provide outstanding artistic experiences and maximise social impact and community cohesion through the breadth of activities and depth of engagement 2. are 'businesses' making significant contributions to the economy 3. drive economic growth by acting as ir)cubators for individual artists and entrepreneurs and through cultural SME'S, supporting them with advice and training lo establish their own enterprises 4. contribute to regeneration and growth through local economic impact and by providing cultiiral place making 5 provide 'safe houses, for the development of artists and companies, encouraging and supporting artistic experimentation and development 6. drive innovation within the industry: with business models that enable artistic risk-laking 7. provide safe and stimulating environments for the creative dev&lopment of childr8n and young people These principles were collaboratively developed by the network Future Arts Centres. of which The Crescent is a member. High level examples describing Impact are outlined below, and our Programme of activities described fLlrther beneath. Social Impact We encourage collaborative and interdependent activities amongst all age groups, abilities and communities. This promotes active citizenship, tolerance and mLltual respect. Our Courses and Workshops programme encourages creative expression and enjoyment of art5 and culture. Our Courses run across multiple weeks: and many of our participants engage in multiple courses, so we can measure impact over time. Our Youth Theatre, and Schools Programme, offers free quality artistic opportunities lo those who may face economiclother barriers to participation. CRESCENT ARTS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Economic Impact The Crescent contracts on average 60 freelance creative practitioners per quarter. We generate income via hiring space to local businesses and community groups, theatre and dance companies, music groups. playing an important role in the promotion of the arts in Belfast and the sustainability of the cenlre. Placa-making and tourlsm The Crescent's impact on ¢Liltural tourism is evident in terms of the visitors to the iconic Victorian building and the surrounding area. Our activity in 2021-22 conlfibuted to making Belfast an artistically and culturally rich City by offering a diverse, accessible and high-qualily arts programme: including an annual Book Festival that actively celebrates South Belfast as a literary place. 2022-23 was first full year of in-person activity further to closlires as related to the Covid-19 pandemic. While the volume of activity delivered was smaller than levels pre-COVID, customers and building users continue to provide excellent feedback on the quality of our activities. Courses & Workshops: Well into its 30th year, our Courses and Workshops programme continued to thrive, with activity delivered across six programme strands.. Children & Family., Dance & Wellbeing.. Music & Drama., Visual Arts & Crafts, Cfeative Writing & Reading.. Languages & Culture.. across 4 Terms. We engaged 52 Tutors, who delivered 329 CoU￿e8 and Workshops, to 2655 unique customers, with capacity at 73 %. In April 2022 we implemented a new Associates Model.. engaging x6 creative practitioners from amongst our Tutor network to advise us on our programming strategies and approach. Example outputs included welcoming a number of new Tutors delivering new aclivities., clarifying our approach to progressionldevelopment routes (eg Levels within Languages and Dance}, and a focu5 on innovation and expansion of activity in ourArt Studio. New courses included.. Children & Family.. Kids Youtuber Bootcamp. Kids Creative Movement.. Let's Mov8 Together., Rock Band Juniors & Senior Music & Drama.. Music Theory., African Drums Visual Arts & Crafts. Tie-Dye- Using Shibori Techniques. Oigilal Photography For All.. Punch Needle,, Boho Fabric Jewellery., Folk Art Embroidefy.. Experimental Sculpture Creative Writing & Reading Structured Editing for Beginners; Writing Climate chang&', A Taste of Awakening Exploring Japanese Haiku Poetry Crescent Live Events platform, held mainly in our beautiful space 'The Cube,. We focussed on working with partners to deliver popular events and Festivals. Note on Festival Partnerships.. emphasis on residenciesltakeover of The Crescent buildinglHub-feel (Bounce Feslival + Imagine Festivalj. Partnerships and Collaborations.. Yalla CIC: Arabic Festival.. Sequence of events October-march Belfast Guitar Night: Declan Zappa Belfast Music Society.. Chamber Babies and Chamber Cherubs concerts in October & March, with live music from Rebekah Durston, pianist Jonathan Rea and classical guitarist Anselm McDonnell CRESCENT ARTS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Belfast Book Festlval (June 2022) Our annual June festival celebrates bestselling authors, award-winning poety and spoken word., and showcases the wealth of local talent that defines our thriving literary community. Festival 2022 was our first in-person festival post-Covid-19. Our strategic focus was on ensuring accessibility and as such we: Trialled a Pay what you Decide Model (response to cost of living crisis) Focussed on highlighting The Crescent Arts Centre a Festival Hub., creating a range of new activrties alongside our traditional Events model, many of them free to Customers including exhibitions, residencie5, dropin sessions. Partnerships with Bamardo's Northern Ireland and Libraries Nl were instrumental to achieve delivery. Popular events included journalist Patrick Radden Keefe- Readings and Conversations with Joelle Taylor; Sessions for writers Wlth Society of Authors and BBC Writers Room.. New Novels with Michelle Gallen and Olivla Fitzsimons. Our thanks to Translink for their support, to Radius Housing, to bookseller partner No Ajibis and to Seamus Heaney Centre at Queen's University Belfast. In November 2022 Belfast Book Festival travelled to Dublin to discuss the Northern Ireland Antholcgy, Impennanence. Malrtln Crawford Award 2022 2022 saw the continued trajectory of year-on year increase in submissions for both Awards. We continued our emphasis on devising innovative ways to present the Awards in the Belfast Book Festival to maximise profile for the Winners. Poetry.. For Poetry it was the 7th year of Award, with Judges Moyra Donaldson and Annemarie Nl Churreain. There were joint winners.. Kathryn Bevis & Jim McElroy For Short Story It was the 6th year of the Award, with Judges.. Lucy Caldwell, Rachael Kelly and Chris Wright. The Winner wasAmy Stewart. Our thanks go to the collaborative and financlal investment given by the Award Supporters.. CILIP. The River Mill, and NIPR Books. Cresc8nt Arts Youth Theatre {CAYr) Our Education and Talent Development Programme for 14-19-year-olds met 21 times ft)r 3 hour sessions on Saturday aftemoons in The Crescent and participated in the National Theatre's Connections Programme with the play Strangers Likg Me by Ed Harris. They presented a Home Show at The Crescent, a Festival show at the Lyric, and were subsequently invited to perform in London on National Stage, in June 2023 Creative Hub The Crescent is a home to 12 professional arts companies {office space) and continued to offer its spaces for discounted creative activity - rehearsals, development, meetings. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. CRESCENT ARTS CENTRE TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Flnanclal review The Audited Financial Statements for 2022123 shows a deficit in unrestricted funds of £136.73512022'. £32,067} including £114,800 (2022.. £114,784) of depreciation within unrestricted expenditure The cash surplus position for the 2022123 financial year was £126,04712022. deficit £193,363) which related in part to the tining of grant receipts The principal funding resources were rental income and grants obtained from Arts Council Northern Ireland and Belfast City Council. Investment pollcy and objectlves The Charity's Memorandum and Articles of Association permit the Trustees to invest as they decide. with professional advice as appropriate. Reserves pollcy The organisation's Reserves Policy is reviewed annually by the Board. Total reserves at 31 March 2023 are £4,455.289 made up of restricted funds of £125,373, designated funds of £3,968,752 and general unrestricted funds of £361,164. Structure, governance and management The charity is controlled by its governing document, a memorandum and articles of association, and constitutes a company limited by guarantee, as defined by the CompaniesAct 2006. During the year the Board agreed a Govemance Manual. The Cres￿nt'S Board of Non-Executive Directors during 2022-23 was as follows.- E Branagh (Resigned 16 May 2023) J Kirk K Beggs M Campbell K Collins R Hooper EHOY O O'Kane N Shannon A Holmes C Maguire (Resigned 11 June 20231 Racrultment and appointment of new trustees Crescent Arts Centre regularly reviews Ihe skllls requirements of the board and recruits and selects new board members to fill gaps identified. Risk management The Board has a risk management strategy which consists of reviewing the risks that the charity may face including health and safety, employment and misappropriation of funds. The strategy also includes the establishment of procedures to mitigate those risks id8ntified in the plan. The trustees also implement procedures to minimise any potential impact on the charity should these risks arise. Audltor In accordan￿ with the company's articles, a resolution proposing that Harbinson Mulholland be reappoint8d as auditor of the company will be put at a General Meeting. CRESCENT ARTS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 The Trustees, ￿port was approved by the Board of Trustees. EHOY Trustee Dated., CRESCENT ARTS CENTRE STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2023 The trustees, who are also the directors of Crescent Arts Centre for the purpose of company law, are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and regulation. Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 °The Financial Reporting Standard applicable in the UK and Republic of Ireland" and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the and of the incoming resources and application of resour￿8, including the income and expenditure, of the for that period. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently; observe the methods and principles in the Statement of Recommended Practice: Accounting and Reportrng by Charities (2015)- make judgments and estimates that are reasonable and prudent; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the 's transactions and disclose with reasonable accuracy at any ts'me the financial position of the and enable them to ensure that the financial statements comply with the Companies Act 20065. They are also responsible for safeguarding the assets of the and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In certain circumstances clients may choose to include an additional statement here which is required to be made within the directors, report as a result of Section 418 of the Companies Act 2006. In accordance with Section 418, directors, reports shall include a statement, in the case of each director in offsce at the date the directors, report is approved, that- (a) so far as the trustee is aware, there is no relevant audit infomation of which the company's auditors are unaware; and (bl he has taken all the steps that hé ought to have taken as a trustee in order to make himself aNare of any relevant audit information and to estab115h that the company's auditors are aware of that infomiation. CRESCENT ARTS CENTRE INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF CRESCENT ARTS CENTRE Oplnlon We have audited the financial statements of Crescent Arts Centre (the 'charity'l for the year end￿1 31 March 2023 which comprise the statement of financial activities, the statement of financial position, the statement of cash fflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of I￿land (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, for the year then ended., have been properly prepared in accordan￿ with United Kingdom Generally Accepted Accounting Pract1￿., and have been prepar8d In accordance with the requirements of the Companies Act 2006. Basis for oplnlon We conducted our audlt in accordance with International Standards on Auditing IUKI (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditoffs responsibilities for the 8udit ol the financial st8tements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant 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 accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatlng 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 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least ￿e1ve months from when the financlal statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other Informatlon The other information comprises th8 information included in the annual report other than the fina￿la1 statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial ststements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we idenlify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatemenl of this other informalion, we are required to report that fact. We have nothing to report in this regard. Matters on which we ar8 required to report by exception We have nothing to report in respecl of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion.. the information given in the financial statements is inconsistent in any material respect with the Trustees, report", or sufficient accounting records have not been kept- or the financial statement5 are not in agreement with the accounting records,, or we have not received all the information and explanations we require for our audit. CRESCENT ARTS CENTRE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CRESCENT ARTS CENTRE Responsibilities of trustees As explained more fully in the statement of Trustees, responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a tru8 and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity'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 charitable company or to cease operations, or have no realistic alternative but to do so. Audltor's responslbllities for the audlt of tha flnanclal ststements We have been appointed as auditors under section 65 of the Charities Act (Northern Ir8land} 2008 and report in accordance with the Act and relevanl regulatlons made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS {UKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. CRESCENT ARTS CENTRE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CRESCENT ARTS CENTRE Our approach to identifying and assessing the risks of material misstatement in respect of irregularrties, including fraud and non-compliance with laws and regulations. was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competen￿. capabilities and skills to identify or recognise non-compliance with applicable laws and re9ulation5' we identified the laws and regulations applicable to the company through discussions with directors andlor senior management, and from our commercial knowledge and experience of the sector. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the op8rations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal corresponden￿-, and Identified laws and regulations were communicated within the audit team regularly and the leam remained alert to instancas of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misslatement, induding obtaining an understanding of how fraud mighl occur, by.. maklng enquiries of management as to where they considered there was susceptibility to fraud, their knO￿adge of actual, suspected and alleged fraud; and considering the Internal controls in place to mitigate risks of fraud and non-compliance wlth laws and regulations; To address the risk of fraud through management bias and override of controls, we.. performed analytical procedures to identify any unusual or unexpected relationships., tested joumal entries to identify unusual transactions., assessed whether judgements and assumptions made In determining the accounting estimates set out in Note 2 wera indicative of potential bias., and Investigated the rationale behind significant or unusual transactions., In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation., reading the minutes of meetings of those charged with governance,. enquiring of management as to actual and potential litigation and daims,. and reviewing correspondence wilh HMRC and the company's legal advisors., There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https'.11 www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. CRESCENT ARTS CENTRE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CRESCENT ARTS CENTRE This report is made solely to the company's members. as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no othei purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have fomied. Angela C Igan (Senior Statutory ditorl for and on behalf of Harblnson Mulholland 5111115 Chartered Accountants statutory Auditor Centrepoint 24 Omeau Avenue Belfast Co. Antrim Northern Ireland BT2 8HS Harbinson Mulholland is eligible for appointment as auditor of the charity by virtue of its eligibllity for appointment as auditor of a company under section 1212 of the Companies Act 2006. 10- CRESCENT ARTS CENTRE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023 Unrestricted Restricted funds funds 2023 2023 Total Unrestrlcted Restricted funds funds 2022 2022 Total 2023 2022 Notes Donations and legacies Charitable activities Investments 8,958 409,998 519 8,958 762,184 519 24,904 167,184 24,904 613,202 352,188 446,018 Total Income 419,473 352,188 771,661 192,096 446,018 638,114 Charitable activities 554.307 350,632 904,939 223,335 579,308 802,643 Other 10 1,901 1,901 Total expendlture 556,208 350,832 906,840 223,335 579,308 802,643 Gross transfers be￿een funds Net (expendlturelllncome for the yearl Net movement In funds (828) 828 1136,735) 1,556 (135,179) <32,067) (132,462) (164,529) Fund balances at 1 April 2022 4,468,651 123,817 4,590,468 4,498,718 256,279 4,754,997 Fund balances at 31 March 2023 4,329,916 125,373 4,455,289 4,466,651 123,817 4,590,468 The statement of financial actlvlties includes all gains and losses recognised in the year. All income and expenditure derive from continuing activitles. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 11 CRESCENT ARTS CENTRE STATEMENT OF FINANCIAL POSITION AS AT31 MARCH 2023 2023 2022 Note8 Flxed assets Tangible assets 12 4,091,524 4,184,704 Current assets Debtors Cash at bank and in hand 13 46,629 418,083 257,483 292,036 464,712 549,519 Credltors: amounts falllng due w5thln one y&ar 14 (100,947) (143,755) Net current assets 363,765 405,764 Total assets less current Ilabilitlos 4,455,289 4,590,468 Income fund8 Restricted funds 15 125,373 123,817 Designated funds General unrestricted funds 16 3,968,752 361,164 4,080,885 405,766 4,329,916 4,468,651 4,455,289 4,590,468 The company is entitled to the exemption from the audit requirement contained in sectlon 477 of the Companies Act 2006, for the year ended 31 March 2023, although an audit has been carried out under section 65 of1he Charities Act {Northem Ireland) 2008. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements under the requirements of the Companies Act 2006. The directors acknowledge Ih8ir responsibilities for Complylng with the requiroments of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 25 M Campbell Trustee EHOY Trustee Company registration number N1014495 12- CRESCENT ARTS CENTRE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 Notes Cash flows from operatlng actlvltles Cash generated froml(absorbed by) operations 21 173,694 (108,268) Investlng actfvitles Purchase of tangible fixed assets Proceeds on disposal of tangible fixed assets Interest received (48,866) {85,104) 700 519 Net cash used In Investlng activltles (47,647) (85,095) Net cash used In flnanclng actlvltles Net Increasal(decrea8e) In cash and cash equlvalents 128,047 1193,363) Cash and cash equivalents at beginning of year 292,038 485,399 Cash and cash equlvalents at end of year 418,083 292,036 The notes on p8ges 14 to 25 fomi part of these financial statemants. 13- CRESCENT ARTS CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Accounting pollcies Charity Information Crescent Arts Centre is a charitable company limited by guarantee incorporated in Northern Ireland. The registered office is 24 University Road, Belfast, BT7 1 NH. 1.1 Accounting conventlon The accounts have been prepared in accordance with the Companies Act 2006 and "Accounting and Reporting by Charities= Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended for accounting periods commencing from 1 January 2016). The charity is a Publlc Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functlonal currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financlal statement8 have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Golng concern The Crescent Arts Centre re-opened lo In-person activity in September 2021, having been forced to close its doors since March 2020 (Covid 191UK Government legislation). Th8 charity secured COVID-19 related Emergency Grant Funding, and the Truste8s note the gradual but encouraging recovery of eamed income Projections have been prepared for 12 months after the year end which show a deficit. The Trustees believe that the Charity holds SLrfFicient reserves, including cash at bank, in order to absorb this daficit if necessary. They do not therefore feel that a material uncertainty exists regarding going concern. 1.3 Charltable funds Unreslricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to speclfic conditions by donors as to how they may be used. The purp)ses and uses of the restricted funds are set out in the notes to the financial statements. 1.4 Income Income is recognised when the charity is legally entitled to it after any performan￿ conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations re￿iVed under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution. the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and servi￿5 provided in the normal course of business, net of discounts, VAT and other sales related taxes. 14- CRESCENT ARTS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accountlng policies {Contlnued) 1.6 Expendlture Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is dassified by activity. The costs of each activity are made up of the total of dIr￿t costs and shared costs, including support costs involved in undertaking each adivity. Direct costs attributaI￿e to a single activity are allocated directly to that activity Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned be￿een those activits'es on a basis consistent wth the use of resources. Central staff costs are allocated on the basis of time spent, and depreclation charges are allocated on the portion of the asset's use. Expenditure Is included in the Ststement of Financial Activities on an accruals basis, exclusive of any VAT which can be recovered. Certain expenditure is directly attributable to specific activities and has been included in those cost categories. Certain other costs, which are attributable to more than one activity. are apportioned across cost categories on the basis of an estimate of the proportion of time spent by staff on those activities. 1.6 Tanglble fixed assets Tangible fixed assets are Initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Freehold land and buildings Fixtures and fittings Computers 20h reducing balance 1 OOA reducing balance 20% reducing balance The galn or loss arislng on the disposal of an asset is detemiined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. 1.7 Impairnient of flxed assets At each reporting end date, the charity reviews the carrylng amounts of its tanglble assets to determlne whether there is any indication that those assets have suffered an impairment loss. If any such ]nd￿ation exists, the recoverable amount of the asset is estimated in order to determine the extent of the impaimient loss (if any). 1.8 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 15- CRESCENT ARTS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accountlng pollcles (Contlnued) 1.9 Flnanclal Instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charivs balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and Ihere is an intention to settle on a net basis or to realise the asset and settl8 the liability simultaneously. Basic financlal assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financlal liabilltles Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable wilhin one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordlnary COUTse of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current Iiabilits'es. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognition of flnanclal Ilabilities Financial liabilities are derecognised when the charity's contractual obligations expir8 or are discharged or cancelled. The cost of any unused holiday entitlement is recognised In the period in which the employee's seNlces are received. Temiination benefits are recognised immediately as an expense when the charity is demonstrably commltted to terminate the employment of an employee or to provide termination benefits. Payments to defined contribution retirement benefft schemes are charged as an expense as they fall due. 16- CRESCENT ARTS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 MARCH 2023 Critical accounting estimates and Judgements In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may drffer from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects ￿lY that period, or in the period of the revision and future periods where the revision affects both current and future periods. The annual depreciation charg8 for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. Donations and legacle$ Unrostrlcted Unre8trl¢t•d funds funds 2023 2022 Donations and gifts 8,958 24,904 All income from donations and legacles in both the current and comparative perlods is unrestricted. 17- CRESCENT ARTS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 MARCH 2023 Charitable actlvltles 2023 2022 Room hire services Grants Licences Box office Other income 83,376 352,188 38,912 279,624 8,084 32,085 446,018 38,448 81,791 14,860 762.184 613,202 Analysis by fund Unrestricted funds Restricted funds 409,996 352,188 762,184 For the year ended 31 March 2022 Unrestricted funds Restricted funds 167,184 446,018 613,202 Grants recelved ACNI Belfast City Councll Belfast City Council Access & Inclusion Programme Future Screens Nl Art Work Domiant Accounts Fund Nl Other 207.752 86,000 26,201 21,919 10,316 333,508 112,510 352,188 446,018 Investments Unrestrlcted Unrestrlcted funds funds 2023 2022 Interest received 519 All investment income in both the current and cornparative periods is unrestricted. 18- CRESCENT ARTS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Charitable activities 2023 2022 Creative Learning Programme Events Core Costs 189,976 81,236 325,822 75.539 32.197 219.762 596,834 327.498 Share of support costs (see note 7) Share of govemance costs (see note 7> 304,005 4,100 471,645 3,500 904,939 802,643 Analy81s by fund Unrestricted funds Restricted funds 554,307 350.632 904,939 For the year ended 31 March 2022 Unrestricted funds Restricted funds 223,335 579,308 802,843 19- CRESCENT ARTS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Support costs Support Governance costs costs 2023Support costs Govemance costs 2022 Depreciation Rates Heat, light and power Maintenance and cleaning Telephone Postsge, stationery and sundry Subscriptions and membership Legal and professional IT costs Insurance Irrecoverable VAT Audit fees 139,445 139,445 5,464 32,700 142,197 674 25,528 142,197 674 25,528 32,700 51,298 4,636 51,298 4,636 234,455 3,793 234,455 3,793 2,271 2,271 1,189 1,189 4,538 12,728 27,759 23,166 4,538 12,728 27,759 23,166 3,848 21,492 24,812 21,179 (7.522) 3,848 21.492 24,812 21,179 (7,5221 3,500 4,100 4,100 3,500 304,005 4,100 308,105 471,645 3,500 475,145 Analysed be￿een Charitable activities 304,005 4,100 308,105 471,645 3.500 475,145 Trustses None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. Employees The average monthly number of employees during the year was.. 2023 Number 2022 Number 15 Employment costs 2023 2022 Wages and salaries Social security costs Other pension costs 273.327 18,160 4,222 170,266 11.477 2.731 295,709 184,474 -20- CRESCENT ARTS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Employees (Contlnued) Remuneratlon of Key Management Personnel The total amount of remuneration received by Key Management personnel in the year was £47,573 (2021: £45,828) There were no employees whose annual remuneration was more than £60,000. 10 Other Unrestricted funds Total 2023 2022 Net1088 on dlsposal of tangible fixed assets 1,901 11 Taxatlon The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 12 Tanglble flxed assets Fraèhold land Flxturèl and and bulldings Ilttlng# Computer8 Total Cost At 1 April 2022 Additions Disposals 5,739,192 47,737 181,417 1,129 87,335 6,007,944 48,866 (5,080) 15,080) At 31 March 2023 5,786,929 182,546 82,255 6,051,730 Depreciatlon and Impalrm•nt At 1 April 2022 Depreciation charged in the year Eliminated in respect of disp05als 1,650,967 115,137 136,069 9,879 36,204 14,429 (2,479) 1,823,240 139,445 (2,479) At 31 March 2023 1,766,104 145,948 48,154 1,960,208 Carrying amount At 31 March 2023 4,020,825 36,598 34,101 4,091.524 At 31 March 2022 4,088,225 45,348 51,131 4,184,704 Ulster Bank Ltd hold a first legal charge ov8r premises at 2 - 4 University Road, Belfast. 21 CRESCENT ARTS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 13 Debtor8 2023 2022 Amounts falllng due wlthln one year: Trade debtors Other debtors Prepayments and accrued income 20,551 26,078 9,899 246,812 772 46,629 257,483 14 Creditors: amounts falllng due wlthln one year 2023 2022 Trade creditor8 Other creditors Accruals and deferred income 16,386 5,597 78,964 5,025 11,345 127,385 100,947 143,755 cfjom ODC)r J o ff) a> r U) In IL rnLL < ¢r) oa)Qr j￿0￿ 0> (o ￿ cy CY n O C•OOr rro u)LL <<[niL￿O CRESCENT ARTS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 16 Designated funds The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes: Balance at 1 April 2021 ResourG88 expended Transfers Balanc9 at 1 Aprll 2022 Re¥ourcos expended Transfers Balance at 31 March 2023 Fixed asset fund 4,141,706 1114,784) 33,963 4,060,885 (114,566) 22,433 3,968,752 4,141,706 (114,784) 33,963 4,060,885 (114,566) 22,433 3,968,752 17 Analys1$ of net assets between funds Unrestrlcted Restrlctsd 2023 2023 Total Unrestrlcted Restricted 2023 2022 2022 Total 2022 Fund balances at 31 March 2023 are represented by.. Tangible assets Current assetsl(liabilities) 3,968,151 363,765 125,373 4,091,524 4,060,887 363,765 405,764 123,817 4,184,704 405,764 4,329,916 125,373 4,455,289 4,466,851 123,817 4,590,468 18 Contlngent Llabllltl08 A contingent liabillty exists in relation to the capital grants recelved from the Arts Councll Northern Ireland In respect of the refurbishment of the building. The conditions of the grant stipulate that there will be a claw back of grants If Crescent Arts Centre disposes or loses thelr interest in the buildlng within ￿enty five years. The building was officially opened in April 2010. -24- CRESCENT ARTS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 19 Related party transactions Transactlons wlth related partles During the year the charity had the following related party transactions with some of the Trustees. Income was received from Open Arts, of which trustee Eileen Branagh is a director and Walk on Air Films, of which trustee Rachel Hooper is a director.. 2023 2022 Walk on Air Films Open Arts 14,310 11,338 4,918 6,250 25,648 11,168 The following amounts were outstanding at the reportlng end date.. Amounts owed by related Amounts owed by related parties partles 2023 2022 Balance Balance Net Net Walk on Air Films Open Arts 2,556 2,254 2,556 2,254 3,154 1,632 3,154 1,632 4,810 4,810 4,786 4,786 20 Pension contrlbutlons The pension cost and charge represents contributions payable by the company to the fund and amounted to £4,222 (2022.. £2,731). At 31 March 2023, contributions amounting to £410 (2022: £410) were payable to the fund and induded in creditors. 21 Cash generated from operatlons 2023 2022 Deficit for the year (135,179) (164,529) Adjustments for.. Investment income recognised in statement of financial activities Loss on disposal of tsngible fixed assets Depreciation and impairment of tangible fixed assets (519) 1,901 139,445 (8) 142,197 Movements in working capitsl.. Decreasel(increase) in debtors (Decrease)fincrease in creditors 210,854 (42,808) (192.78n 106,859 Cash generated froml{absorbed by) operatlons 173,694 (108,268) -25-