The trustees present their annual report and financial statements for the year ended 31 March 2025.
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 memorandum and articles of association, 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).
FACT's charitable objective, as defined in the latest Articles of Association approved in February 2022, is to promote the arts and creative technology and to advance the education in this field for the benefit of the public.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake and consider that the charitable objectives have been discharged through the following activities:
Free to access exhibitions within the FACT Centre building
Free to access and low-cost workshops, events, and participatory projects that provide educational, participation and engagement objectives
Free to access, low-cost and paid talent development opportunities and commissions for artists, curators and filmmakers
Free to access exhibitions or screenings at other locations and venues
Free on-line content via the FACT website
The trustees believe that the charity genuinely discharges its duty of care relating to public benefit and will continue to undertake additional assessment to underline the charity's effectiveness in this respect.
Vision, Purpose & Offer
FACT is a world-leading centre for contemporary art, film and the creative use of technology. Located in the heart of Liverpool, we are a friendly social space working with artists and people to create transformative experiences that spark the imagination and enrich lives. As a place to help make sense of the world today, FACT provides opportunities across a variety of platforms for people to create, interact and listen. We champion new ideas and experiences, nurturing a diverse future generation of artists, filmmakers, creative makers, imaginists and critical thinkers, and supporting young people and emerging artists to gain confidence, skills and experience.
FACT aims to provide:
A world-leading programme of exhibitions and projects at the intersection of art, film, technology, and society, offering inspiring extraordinary cultural and learning experiences for diverse audiences, particularly young people.
Talent and career development opportunities, including residencies, commissions, mentoring, traineeships and training schemes for young and emerging artists and creative professionals.
Unique opportunities for 11-17-year-olds from diverse backgrounds to participate in art and creative technology projects, exploring and creating new art and knowledge with social impact through collaboration with artists, scientists and technologists.
A diverse and skilled leadership and workforce, and a model of operation that is sustainable financially and environmentally.
Achievements and Performance
2024/25 was a year of exceptional achievement for FACT. The cultural sector continues to face real financial pressures, but we exceeded our visitor targets and curated a series of ambitious, compelling exhibitions that sparked important conversations and genuine engagement. Through powerful artistic programming, the successful launch of our talent development hub Studio/Lab, and the culmination of our six-year Resolution programme working with the criminal justice system, FACT demonstrated the transformative power of art and technology to enrich lives and spark positive social change. This year's achievements, alongside innovations in governance and participative management, put us in a strong position for future growth and transformation.
Artistic Programme: Exhibitions & Commissions
FACT presented an ambitious programme of exhibitions in 2024/25, welcoming 206,541 visits to the building - surpassing our target of 200,000 and marking an increase of 12,000 compared to the previous year.
Major Exhibitions
On the other side (1 March - 9 June 2024) Featuring artists Melanie Crean, Katrina Palmer and Pilvi Takala, this exhibition marked the culmination of FACT's multi-year work with the criminal justice system. Exploring challenging themes, the exhibition received critical acclaim from Art Monthly and Corridor 8, with reviewers praising how it "successfully circumvents a polarising spectacle by focusing on process and dialogue."
RIP Germain: "After God, Dudus Comes Next!" (5 July - 13 October 2024) R.I.P. Germain transformed Gallery 1 into a series of commercial shops and 'false fronts', attracting 7,069 visits (80 per day). The exhibition proved particularly popular on TikTok, driving a younger audience and many repeat visitors. Time Out featured it in "Eight amazing art exhibitions to see around the UK this August."
Sara Sadik: Xenon Palace Championship (5 July - 13 October 2024) Sara Sadik's immersive 'magical hookah lounge' in the Foyer Gallery welcomed 7,740 visits (88 per day), with visitors particularly enjoying the interactive gameplay aspects of the work.
Art Plays Games (5 September 2024 - 27 April 2025) This groundbreaking experimental exhibition examined how artists use games to challenge traditional storytelling and explore pressing contemporary issues. Over nine months and four carefully curated rotations, it attracted 9,895 visits (65 per day). The exhibition featured internationally renowned artists alongside emerging local talent, including Rachel Maclean, Sahej Rahal, Angela Washko, David O'Reilly, Alice Bucknell, and our four regional digital artist residents. Visitor feedback was exceptional, with families returning multiple times across rotations and industry professionals suggesting collaborative events. The exhibition concluded with the 'Choose Your Own Adventure' symposium featuring workshops, performances and discussions on world-building.
Cosmotechnics (8 November 2024 - 26 January 2025) Curated by FACT's curator-in-residence Beatrice Zaidenberg, this exhibition explored technology through Latin American perspectives. It became the most visited exhibition since 2022-23, attracting 6,300 visits over 66 days (95 per day), with a significant spike driven by TikTok engagement.
Christopher Kulendran Thomas: Safe Zone & Bahar Noorizadeh: Free to Choose (20 February - 11 May 2025) These powerful solo exhibitions addressing imperialism, capitalism and alternative futures received exceptional visitor feedback. Thomas’ compelling work, a major co-commission with Wiels, Brussels, centred on an AI-remixed spherical meditation on 9/11 television footage.
Public Programme & Events
FACT's 2024/25 public programme created vital spaces for dialogue and community connection. Our approach moved beyond traditional gallery talks to create meaningful encounters between artists, audiences and communities.
Key programme highlights included:
The 'Choose Your Own Adventure' symposium for Art Plays Games, demonstrating FACT's unique convening power at the intersection of games and arts sectors
R.I.P. Germain's capacity exhibition tours where audiences decoded hidden meanings
Christopher Kulendran Thomas in conversation with Google Arts & Culture exploring AI's role in historical narratives
UK premiere of 'Admiror or Revolutionary Sentiments' at Invisible Wind Factory
Resolution panel discussions bringing together prison officers, artists, and participants with lived experience
Book launch for Melanie Crean's 'A Machine to Unmake You' creating dialogue about systemic change
Accessibility remained central with BSL interpretation, relaxed formats, and hybrid delivery ensuring broad participation. The programme established FACT as a crucial forum for exploring how art and technology shape our collective future, and the role of art in policy change.
Learning & Community Programmes
Resolution: Art & Criminal Justice Programme
FACT's six-year Resolution programme reached its powerful conclusion in 2024/25, establishing new methodologies for socially engaged practice:
Ain Bailey: FOUR presented sonic autobiographies created with imprisoned men and families at HMP Buckley Hall
Amartey Golding collaborated with 22 men at HMP Altcourse to create a 200kg chainmail sculpture representing their shared stories
Publication and dissemination of Melanie Crean's book to practitioners, galleries and libraries nationally
International recognition through hosting the Generative Justice Group, exploring forms to resist exclusion
"Whatever it was that they were involving themselves in had longevity. It was something that wasn't just going to disappear." - Prison Officer
Youth & Schools Engagement
Our commitment to young people remained central to FACT's mission:
46 school sessions delivered engaging thousands of students
28 youth group sessions working with 10 groups and 236 participants
8 Do Something Saturday sessions with 157 participants
Unity Youth collaboration where young people created work with R.I.P. Germain and Sara Sadik
BFI Film Academy successfully delivered with 24 young people producing films
Clatterbridge Cancer Centre Partnership
Artist Nina Davies worked with the Teen and Young Adult Support Group to reimagine cancer treatment experiences through science-fiction storytelling. Participants created a fiction podcast set 500 years in the future, transforming personal experiences into creative narratives. One participant noted: "Since taking part in these activities, I have been able to move on with my life a lot easier."
Studio/Lab: Talent Development
Studio/Lab opened its doors to paying members in March 2024, marking a significant milestone in FACT's commitment to supporting artists working with digital technologies. This visionary facility offers production spaces for video editing, podcasting, motion capture, XR development and virtual production, creating a unique creative hub in the North West. What began as a vision for nurturing digital creativity has quickly evolved into a thriving community where artists, filmmakers and creative technologists collaborate, learn and push the boundaries of their practice.
Key achievements:
30 active paying members (up from 9 at year start)
Nearly £15,000 in revenue generated, exceeding the £14,000 target
Over £30,000 in funding secured plus £10,000 in-kind support
29 events delivered including 13 skills workshops
15 paid residencies hosted across micro, regional and international programmes
Digital Artist Residencies
Four Northern artists were selected for the 2024 programme, supported by DaDa and Lucid Games:
Matt Allen - exploring M.E. and chronic fatigue through digital art
Gavin Gayagoy - investigating digital spaces and identity
James McColl - developing a text-based wrestling game
Livi Wilmore - exploring 'digital childhoods' and abandoned online spaces
International Partnerships
UK/Hong Kong residency with Videotage, Near Now and Sudden Beams supporting 6 artists
FACT x Mondriaan Fonds residency renewed for 2026 with increased funding
New British Council-funded exchange secured with Brazil's Kino Beat festival
Film Programme & Cinema in the City
Our pioneering Cinema in the City offsite screening programme reached diverse communities across Liverpool, bringing cinema experiences to underserved areas:
May 2024: Partnership with Pagoda Arts Chinese Community Centre featuring films from Hong Kong and East Asia
October 2024: 90s nostalgia weekend with VideOdyssey, Toxteth's last video rental shop
December 2024: Family-friendly festive programme at Liverpool Lighthouse, Anfield
February 2025: Valentine's weekend at Ullet Road Church achieving 76% attendance
The programme also delivered twelve community cinema screenings, a screening of From Ground Zero (2024) as part of the Palestinian Film Festival, and a special Black History Month programme including the recently-restored Bushman (1971) and panel discussions on racial justice.
Audience Development & Communications
Our strategic approach to audience development focused on building sustainable relationships while maintaining broad appeal. Targeted campaigns reached 5,000+ students through university partnerships, family audiences via Visit Liverpool collaborations, and gaming communities through industry connections. Partnerships with LUMA and Chinese Arts Centre ensured our programme reached Liverpool's diverse communities.
Digital Engagement Impact FACT's digital strategy transformed audience connection, with one TikTok video reaching 100,000+ views and doubling gallery visits during Cosmotechnics' final week. Strategic platform-specific content and 28% email open rates drove our 12,000 year-on-year visitor increase.
Press and Media Success Despite a challenging media landscape, FACT secured coverage in Art Monthly, Wallpaper*, Dazed and international publications. Critics praised our exhibitions' social relevance and technological innovation, with The Double Negative noting how our work "becomes a portal to rethink our relationship with technology.”
Strategic Communications Networks Partnerships with Visit Liverpool, Culture Liverpool and Film Hub North created a multiplier effect, with each partner extending our reach to distinct audiences. This integrated approach contributed directly to exceeding our 200,000 visitor target.
Accessibility FACT's accessibility initiatives established sector-leading inclusive practice through our comprehensive Visual Story, Easy Read guides developed with access consultants, BSL content, and pioneering Quiet Hours sessions. These innovations ensured our ambitious programme truly serves everyone in our community.
Accessibility FACT's accessibility initiatives established sector-leading inclusive practice through our comprehensive Visual Story, Easy Read guides developed with access consultants, BSL content, and pioneering Quiet Hours sessions. These innovations ensured our ambitious programme truly serves everyone in our community.
Partnerships & International Connections
FACT's collaborative approach amplified our impact through strategic partnerships:
Major Programme Partners
Liverpool John Moores University - ongoing collaboration through Dr Emma Murray as criminologist-in-residence
Paul Hamlyn Foundation - funding the complete Resolution programme
Lucid Games - supporting digital residencies with mentoring and resources
Mondrian Foundation - supporting Netherlands residency
DaDaFest - co-producing accessible residencies
Liverpool Biennial 2025 - hosting three artists including a FACT co-commission
WIELS, Brussels - co-commissioning Christopher Kulendran Thomas’ Safe Zone
Artspace Sydney - co-commissioning Christopher Kulendran Thomas' Safe Zone
The Otolith Collective - curating Bahar Noorizadeh's public programme
Clatterbridge Cancer Centre - long-term partnership for Nina Davies' participatory project
First Take - delivering BFI Film Academy programme
Videotage (Hong Kong), Near Now, Sudden Beams - UK/Hong Kong residency partnership
Kino Beat (Brazil) - British Council-funded residency exchange
International Reach
FACT commissions toured to prestigious venues: Amos Rex (Finland), Emerson College (USA), Vanderbilt Museum of Art (USA), and iMAL (Brussels)
Director invited to present at international conferences in Seoul and Beta Festival Dublin
Funding & Development Success
Strategic fundraising secured vital resources for programme delivery and organisational development:
Major Grants Secured
£301,000 from Fidelity UK Foundation - the largest non-statutory grant since opening
1.61% uplift in Arts Council England funding to £1,040,911 annually
Additional support from Granada Foundation, Fenton Arts Trust, Fluxus, and Goethe Institut
Earned Income Achievement
Studio/Lab exceeded targets generating nearly £15,000 revenue
Video production maintained strong client relationships
Secured valuable in-kind support from Arriva Bus and Merseyrail for youth programmes
Impact & Recognition
FACT's impact in 2024/25 was demonstrated through exceptional visitor engagement and sector-wide recognition. We exceeded visitor targets by 20%, welcoming 206,541 visits - an increase of 12,000 from the previous year. This audience growth was amplified by critical acclaim across major publications, with features in Art Monthly, Wallpaper*, Time Out, and Dazed validating our curatorial vision.
FACT's impact extended into academic and policy spheres through contribution to UKRI-funded research on participatory criminal justice. Our Resolution programme established new methodologies for socially engaged practice, with the Generative Justice Group selecting FACT as an international case study. The programme's methodology publication is now used by practitioners across the UK and internationally.
Beyond formal recognitions, our impact was felt through:
Studio/Lab's transformation from concept to thriving hub in one year
Innovative governance experiments attracting sector-wide interest
Head of Programme invited to present at REMIX Summit on digital arts programme
Establishment as thought leader in arts and social justice
This combination of audience growth, critical recognition, academic contribution, and sector leadership confirms FACT's position as a vital force in contemporary culture.
FACT's 2024/25 programme demonstrated resilience and innovation, successfully balancing artistic excellence with community impact while navigating financial challenges. Through powerful exhibitions, meaningful participatory projects, and strategic development of talent and partnerships, FACT continued to establish itself as a leader in art, technology and social change.
Operational Excellence and Organisational Innovation
Governance Development
FACT strengthened its governance through strategic board recruitment and creative approaches to board practice. We welcomed six new trustees during 2024/25, bringing expertise in finance, organisational development, gaming industry, filmmaking, cinema management, and venue operations - appointments that directly support our strategic priorities. Our annual Board Away Day at Bidston Observatory brought trustees and senior management together to work on long-term strategy, including an impact model.
Additionally, we pioneered an experimental approach through collaboration with curator Stella Sideli, who curated interventions incorporating movement and creative practices, challenging traditional board formats and fostering trustee-staff engagement. This creative approach to governance reflects FACT's commitment to innovation extending beyond our artistic programme into how we operate as an organisation.
Organisational Structure and Culture
We continued developing our participative management and leadership model through:
Implementation of our distinctive 'Circles and Roles' structure promoting transparency
Dynamic visual mapping using Maptio platform to reduce duplication and identify gaps
Cross-team working groups addressing strategic priorities
Regular staff away days fostering departmental connections and collaborative planning
This approach supports our interdependent leadership culture, encouraging innovation and appropriate risk-taking across all organisational levels.
Digital Transformation and Environmental Responsibility
FACT embraced digital transformation while maintaining environmental commitments:
Comprehensive project management through Asana
Development of AI Policy balancing a people-centred approach with creative innovation
Upgraded Building Management System improving efficiency
Carbon Literacy Project certification for key staff
Environmental Policy implementation through dedicated working group
Staff Development and Financial Management
Investment in our team included:
Comprehensive training in public speaking, project management, and EDI
Director selected for Arts Council England's 'Navigating Digital Change' programme
Head of Business and Operation’s selected for Independent Cinema Office's 'Revisiting Your Cinema Business Model' programme
Progress toward Disability Confident Employer status
Despite sector-wide funding challenges, we maintained strong financial governance:
Reinstated Finance Sub-committee with new expertise
Successfully claimed £164,000 in Museums & Galleries Tax Relief
Implemented new banking arrangements
Achieved more favourable year-end position than budgeted
These operational achievements demonstrate FACT's commitment to being a progressive, well-managed organisation modelling best practice in the cultural sector.
Equality, Diversity and Inclusion
FACT strengthened its EDI commitment through a dedicated staff working group that developed a comprehensive 2025-26 Action Plan focusing on policy updates, inclusive recruitment, and programme accessibility. Our Head of Programme co-chaired the Liverpool Arts & Culture Race Equality Manifesto event, bringing together 29 organisations to share accountability measures. This internal development combined with sector-wide engagement positioned FACT as a model for meaningful EDI implementation.
The results for the year and the charity’s financial position at the end of the year are shown in the attached financial statements. The charity had net expenditure on unrestricted funds of £212K (2024: net income of £67K).
The financial statements have been prepared on a going concern basis. The organisation is rebuilding its audiences and earned income strands in the late pandemic, and has obtained funding commitments from core funders, together with additional fundraising.
The trustees have considered the level of funds held and the expected level of income and expenditure for the twelve months from authorising these financial statements. The trustees assess the charity to be a going concern based on review of financial performance of the 2025/26 year to date, the management accounts forecast for the remainder of 2025/26, the 18 month rolling cash flow forecast, the confirmation of Arts Council England’s funding commitment to FACT Liverpool for 2025/26 as part of its National Portfolio Organisations, and longer-term plans and forecasts for 2026/27 and beyond with no indication of a reduction in funding. As a result, the trustees are confident about the financial future of the charity and satisfied that these accounts are prepared on a going concern basis.
The trustees have agreed a financial policy to keep free reserves at a level that will cover three months of operating costs. In 2025, the level has remained at £350,000 (2024: £350,000) to account for rising costs. The trustees consider that reserves at this level will help to ensure that in the event of a financial shock, such as a significant drop in funding, the company will be able to continue operating during a period of adjustment. This level of reserves has been maintained throughout the year.
Free reserves are defined as total unrestricted funds available for spending less any designated funds. Designated funds are funds set aside by the trustees for a future purpose together with the value of tangible fixed assets used operationally by the charity.
At the year end the total unrestricted reserves stood at £4,058,143 (2024: £4,271,039). Of this amount, £3,498,528 (2024: £3,647,465) represented the value of tangible fixed assets held at the year end and £180,000 (2024: £240,000) was designated for the purpose of maintaining the charity’s asset base in good order leaving a balance of free reserves of £379,615 (2024: £383,574).
The trustees are aware of the risks facing the charity by way of financial and strategic management and take appropriate steps to mitigate them. The Finance Sub Committee meets at regular intervals between Board meetings and proposals from these meetings are then put forward to the Board. A risk register is maintained and reviewed at every Board meeting.
The charity continues its strategy to develop an appropriate reserve and the Board is ensuring the charity prioritises the building of this fund over the coming years. The Board and the senior management are not complacent and recognise that continuous review of all risk areas is essential to ensure that the business operates on a sound financial footing both now and in the future.
Health and Safety issues in the building are continually monitored and appropriate action is taken. The charity has carried out full health and safety risk analysis on the operation, the health and safety and equal opportunities policy are included in the staff manual and all new recruits are given health and safety training appropriate to their position.
Governing document
The charity is a company limited by guarantee and registered as a charity with the Charity Commission. It is governed by its Memorandum and Articles of Association dated 8th February 2022.
Trustees
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:
Trustees are appointed to the board by resolution of the trustees of the board. There must be not less than seven and not more than fifteen trustees. The trustees who served during the year, together with any changes up to the date of approving this report are listed above.
The usual term of office for a trustee is three years, at the end of which they shall retire. Trustees are eligible for reappointment by the board of Trustees for up to a further two terms, each of three years, unless a trustee is appointed to be Chair where another one term is permitted. No Trustee shall serve for more than nine consecutive years, unless the Trustees consider it would be in the best interests of FACT for a particular Trustee to continue to serve beyond that period and that Trustee is reappointed in accordance with the Articles.
Trustee recruitment, induction and training
New trustees are appointed after a recruitment process as part of which they will submit a written application. Prospective candidates are interviewed and proposed for appointment to the board. The full board makes the decision on the appointment of any new trustee. All new trustees are issued with an induction pack of information on FACT and its activities and are encouraged to attend events at the centre through regular invitations. Relevant training opportunities for trustees of cultural organisations are circulated on a regular basis.
The board of trustees, who are also the directors of the charity, administer the charity and meet as necessary but not less than four times a year. The day-to-day operations of the charity are the responsibility of the Chief Executive and the Executive Team, named on the legal and administration page, to whom the board of trustees have delegated authority for operational matters including finance, employment and development, within the overall strategy agreed by the board.
The remuneration of key management personnel is determined by the board of trustees. The trustees consider the seniority of the post, the expertise and experience of the post holder, the local market conditions and sector market conditions for remuneration, and benchmarking information from similar organisations in determining the remuneration of key management personnel.
In accordance with the company's articles, a resolution proposing that DSG Audit be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of FACT Liverpool for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
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 Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures 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 charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of FACT Liverpool (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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 Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements 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.
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 twelve months from when the financial 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 information
The other information comprises the information included in the annual report other than the financial 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 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 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 identify 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 misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within 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 report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
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 true 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.
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 (UK) 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our discussions with the charity’s management and the Trustees, we identified that the following laws and regulations are significant to the entity:
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards and Charity Law.
Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the charity and therefore may have a material effect on the financial statements include compliance with the charitable objectives, public benefit, fundraising regulations, safeguarding and health and safety legislation.
These matters were discussed amongst the engagement team at the planning stage and the team remained alert to non-compliance throughout the audit.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
FACT Liverpool is a private company limited by guarantee incorporated in England and Wales. The registered office is 88 Wood Street, Liverpool, L1 4DQ.
The financial statements have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 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.
The financial statements do not incorporate the results, assets and liabilities of the charity’s wholly owned subsidiary, FACT Trading Limited. Consolidated accounts have not been prepared as these would not be materially different from the single entity financial statements as presented.
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.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Investment in subsidiaries are measured at cost.
At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible 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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 differ 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 only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Bases of cost allocations
Costs are allocated on the basis of staff time/cost.
None of the trustees (or any persons connected with them) received any remuneration during the year, but 4 of them were reimbursed a total of £615 travelling expenses (2024: 3 were reimbursed £789).
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
More information on the charge over the long leasehold premises, with a carrying amount of £3,200,329 (2024: £3,290,329), is given in note 23.
The bank loans relates to a bounce back loan of £50,000 taken in December 2020, with a repayment holiday until January 2022 with a five-year repayment term. This is an unsecured loan with a 2.5% interest rate.
Deferred income is included in the financial statements as follows:
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Restricted grants represent amounts received from various funders to support particular projects, all of which having been expended during the year.
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.
The trustees have designated £180,000 for the purposes of maintaining the charity’s asset base and future further capital spend.
Tangible fixed asset fund - In order to accurately show the reserves tied up in fixed assets held by the charity, a designated tangible fixed asset fund has been created representing assets used operationally by the charity. This fund includes assets acquired with historic capital grants . As these grants have been expended in line with the conditions of funding, this has discharged the restriction on them, and therefore they have been transferred to unrestricted funds.
Capital Grants
Grants may be repayable in certain circumstances for example in the event that the building is not used as an arts centre for public benefit or if all the conditions attached to any grant have not been met in full.
In addition, The Arts Council of England has taken a fixed charged over the building (charge registered 5th January 2001) and a floating charge over the other assets of the charity. The terms of a grant provided by the Arts Council for England prohibit the charity from disposing of its interests in the building without their prior consent.
The trustees do not expect any liability to repay grants to crystallise and therefore no provision is made.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
At the reporting end date the charity had contracted with tenants for the following minimum lease payments:
Lessor
Lease with City Screen Liverpool
FACT has granted a 25-year lease to City Screen Liverpool Limited, a wholly owned subsidiary of Cineworld Group plc, to let part of its property on a profit-sharing rent arrangement which has been renegotiated to include quarterly rental payments.
The lease began in February 2003, when the FACT Centre opened. Under the terms of the lease, City Screen Liverpool Ltd must provide a cultural cinema programme at the FACT Centre. It is due to come to an end in February 2028.
There were no other related party transactions in the year.
Details of the charity's subsidiaries at 31 March 2025 are as follows:
FACT Liverpool is incorporated under the Companies Act as a company limited by guarantee. The liability of the members is limited to £1.