The trustees present their annual report and financial statements for the year ended 30 September 2023.
The financial statements have been prepared in accordance with the accounting policies to the financial statements and comply with the charity's deed of trust, 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).
Mission Statement
Our mission is to maintain excellence in education and service provision. To pay attention to the detail of our student’s needs, in the design and delivery of our courses, and the needs of our clients, in the set up and execution of our services. To afford our students, and our clients, every advantage and opportunity in the realisation of their goals. We value our clients, and we love film. Our mission is to honour both.
LFAET Aims
The charity is a company limited by guarantee. The charity's objects are to provide professional media, digital and creative training, personal development, professional and personal mentoring, guidance, advocacy and group educational activities to young and old people on Merseyside regardless of any social, financial or geographical restrictions.
The Educational Trust aims to provide quality industry standard training and personal
development to each of the participants on our courses. The trust will play its full part in the economic, cultural and social life of Merseyside through its development plan to deliver a quality service by contributing and subsidising leisure facilities, advocacy services and training support to the local community.
During the past 22 years we have strived to become a beacon of vision and social advancement in North Liverpool.
22 years ago, we at the Liverpool Film Academy Educational Trust, restored the otherwise dilapidated old school building of Kirkdale St. Lawrence from a windowless monstrosity into the proud business you see today.
A potential fire hazard and permanent example of a despondent and downcast community was reborn in to an area for positive activity, business, creativity and economic growth.
The Film Academy exists as not-for-profit organisation primarily here to serve out the mission statements listed above.
Giving something back:
We support and house community groups and local artists - for free - in an effort to engage community hearts and minds and raise local aspirations.
The large and well-equipped gym has been donated to Kirkdale Boxing Club.
The spacious and secure hall for free community use and benefit advice
We regularly support school, university and apprenticeship training placements.
The Reach of our Work:
Liverpool Film Academy Educational Trust persists in their vision to engage with youth, returners to work, minority groups and those other members of our community who are excluded from mainstream routes into media and creative learning.
We try to up skill, educate and personally develop individuals through using creativity and media as a vehicle. The fact we are so closely linked with the working media industry only goes to further our breadth of learner opportunity and potential to engage individuals with work based learning and employment opportunities.
LFAET objectives:
embrace all forms of diversity
develop new creative talent for film and television
create real world learning opportunities for students and trainees on professional productions
provide a academic experiences that allows students to reflect on their practice
provide a friendly, professional working environment that treats everyone with dignity and respect
provide opportunities for students to development key communication and networking
skills that enhance their professional opportunities and standing
Competitive advantage:
commitment to the local community/region and the youth of the community
high quality of education and training working on live productions mentoring by industry professionals
working at the centre of the film and television industry provides numerous
professional and networking opportunities
development of critical and reflective skills
As required by Section 17(5) of the Charities Act. The Trust, in shaping the objectives for the year and planning the Trust's activities, the trustees have considered the Charity Commission's guidance on public benefit and fee charging, The Company provide subsidised office space for Liverp0ol start up creative businesses.
Community Activities
Partnerships:
The unique selling point for LFAET is Its relationship with LA Productions and the opportunities that provides to trainees for real employment opportunities in the film and television industry. In addition LFAET staff have access to the wealth of expertise and resources LA Productions make available to their trainees. From the point of view of a trainee they get an outstanding experience in that they are supported in their educational development by professional educations in LFAET and are able to access mentors working at the top of their profession in film and television.
Our successes with all levels of educational and community agencies have been documented in previous reports. We have offered over 50 training and placement opportunities ranging from one day to three months. We continue to offer this range of placements but experience tells us that longer term training and placements are more productive so we have broadened our efforts in this direction and in collaborative community projects as below.
Schools:
Script to Screen is our longest standing training programme that remains available to schools with LFAET and LA Production staff go into schools and workshop pupils to develop short stories and films about social issues.
University:
We continue to work with all four the local universities and this year we have been engaged with:
Liverpool John John Moores
Edge Hill University
Liverpool University
Liverpool Hope University
Yorkville University Canada
Salford University
With our Masterclass and Industry Talk’s programmes we have been particularly active this year with Edge Hill University and Liverpool John Moores University. These events generally
comprise half a day or a day with a group of senior staff including the CEO attending the University for workshop and talks. They will conclude by engaging informally with students for advice and guidance on working in the industry and always with the offer of hosting interested students who would like to visit LA Productions and the offer of placements to the right candidates.
What is not often appreciated by students is the breath of roles in the film and television industry. We have also worked with Salford University as external examiners for a PhD on the Media Industry, specifically Children’s Television.
Other Partnerships:
BBC Bursary Scheme
LA Productions have been awarded a paid bursary from the BBC for BAME trainees/students to be paid to work on all productions. The experience is invaluable. The time, resources and energy afforded to managing and properly monitoring these projects is substantial on the staff at LA Productions and LFA responsible for the development of the trainee.
As the Trust operates from the same site as Liverpool Academy Productions Limited, it continues to benefit from the various members of the LA Productions team who volunteer their time and the use of space and equipment. This allows for an exceptional quality of volunteer that would not be available if based elsewhere.
Projects
Granite Harbour series 2 - BBC Scotland & BBC1
These placements were for five episodes of the whole series working with a different director and cast on every episode. BBC also provided a similar bursary on previous projects trainees working in Directing, Camera and Costume and feedback from trainees was that they had an outstanding experience.
This Scheme is highly successful and feedback from students indicates it is invaluable in gaining professional training and again requires substantial work and commitment from both LA Productions and LFA.
National Educational Networks include:
National Film and Television School (NFTS)
London Film School
International Networks include:
New York Film Academy (NYFA): Colin McKeown, CEO of LA Productions visited the School in New York early 2018
Current director of the School has served on the Polish National Theatre, Film and Television School annual Film Festival jury, Hong Kong and Chinese Region Film
Festival jury and The Russian National Film and Television School (VGIK) jury and relationships exist with all of these Schools and others internationally
Yorkville Film School
The Charity's reserves (excluding restricted funds) held as at the balance sheet date are in deficit by £32,115 (2022: deficit £17,857).
Unrestricted funds, where available, can be used in accordance with the charitable objectives at the discretion of the trustees.
The charity is controlled by its Articles and Association and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Recruitment and appointment of trustees
I take this opportunity to thank all trustees who have served on the Board during the past year.
At the Educational Trust we are always eager to recruit trustees to the board and new members to the Trust. The Board of trustees may appoint any person nominated by any member of the Association as a member of the Board of trustees.
No person who is not a member of the Association shall in any circumstances be eligible to hold office as a member of the Board of trustees.
As Trustees serve as a means of communication with communities that a charity exists to serve, it is important we consider the composition and diversity of the board. Expanding and diversifying the composition of trustees will enhance the good management and senior staffing of the charity by bringing in fresh expertise and experience. After deliberations and consideration of our strategic plan and aims going forward we would:
Identify skills gaps in our existing body of trustees
Draft a job description and person specification
Discuss advertising and nomination strategy
Receive and shortlist applications
Interview applicants
Appointment of new Trustees
Induction of new Trustees
Evaluate these appointments in our next annual report
Existing trustees will conduct interviews with a set of agreed questions for all candidates. Notes of interviews will be kept. Successful candidates will be approved by all trustees and appointed subject to positive references. Trustees must also be satisfied in writing that candidates have:
Not previously been disqualified from acting as trustees
No existing or potential conflicts of interest
No Disclosure and Barring issues that would prevent candidates from taking up the role
Once the above procedure is followed to the satisfaction of the board, the existing Trustees would be in a position to appoint the new Trustee. The Chair of Trustees would then write to the successful candidate outlining their duties as members of the Board. They would be invited to participate in the next meeting and be allocated a mentor who would support them through a formal induction process where they would get full information of the charity and meet staff and participants.
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The trustee report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of The Liverpool Film Academy Educational Trust (the charity) for the year ended 30 September 2023.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The Liverpool Film Academy Educational Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Old St Lawrence School, Westminster Road, Liverpool, Merseyside, L4 3TQ, United Kingdom.
The financial statements have been prepared in accordance with the Charities SORP (FRS 102), 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) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
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 received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable 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 between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
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:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
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.
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 charity's 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 there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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 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 within 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 ordinary course 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 liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
Wages
Rent and rates
Insurance
Repairs and renewals
Establishment expenses
Travel expenses
Administration expenses
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The bank loan has been secured in line with the following security schedule:
Security Type | Granted By | Security Address/Description |
|
|
|
1. 1st Legal Charge | Liverpool Film Academy | Old St. Lawrence School, |
| Educational Trust | Westminster Road, Liverpool |
|
| and the associated assets |
|
|
|
2. Guarantee for £236,000 | Liverpool Academy Productions |
|
| Limited |
|
Supported by: |
|
|
(a). Debenture | Liverpool Academy Productions |
|
| Limited |
|
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Included in other creditors is an amount of £507,581 (2022: £505,725) owed to LA Productions Limited, a company in which one of the trustees Colin McKeown is a director. This amount has arisen due to the financial support provided by LA Productions Limited over the years.