THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS ANNUAL

THE LIVERPOOL INSTITUTE FOR

PERFORMING ARTS

ANNUAL REPORT

YEAR ENDED 31

st

JULY 2022

COMPANY NUMBER: 02511501

REGISTERED CHARITY: 1001565

THE LIVERPOOL INSITUTE FOR PERFORMING ARTS

Annual Report

For the year ended 31

st

July 2022

1

CONTENTS

Page

Legal and Administrative Details 2

Operating and Financial Review 3

Corporate Governance Statement 13

Trustee sibilities Statement 17

Financial Statements auditor's report 19

Consolidated and Institute Statement of Comprehensive Income and Expenditure 22

Consolidated and Institute Statement of Changes in Reserves 23

Consolidated and Institute Balance Sheets 24

Consolidated Statement of Cash Flows 25

Accounting Policies 26

Notes to the Accounts 31

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Legal and Administrative Details

For the year ended 31

st

July 2022

2

Status

The Liverpool Institute for Performing Arts (referred to as LIPA, the Institute or the company and

collectively with its subsidiary the group) is a company limited by guarantee, with each member

guaranteeing £1. Its registered company number is 02511501. The company is also a registered charity,

number 1001565.

Registered Office

Mount Street

Liverpool

L1 9HF

Advisors

Bankers

Santander plc

Bridle Road

Bootle

Merseyside

L30 4GB

Solicitors

Swan Turton

68A Neal Street

London

WC2H 9PA

Weightmans LLP

100 Old Hall Street

Liverpool

L3 9QJ

Financial Statements Auditors

Crowe UK LLP

3rd Floor

The Lexicon

Mount Street

Manchester

M2 5NT

Internal Auditors

RSM Risk Assurance Services LLP

14

th

Floor

20 Chapel Street

Liverpool

L3 9AG

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Operating and Financial Review

For the year ended 31

st

July 2022

3

The directors present their Annual Report, including the Strategic Report, together with the

audited Financial Statements for the year ended 31

st

July 2022.

1. Constitution and Objectives

LIPA is a company limited by guarantee. It does not have any shares and the liability of its members is

limited. LIPA is a registered charity.

The objective of the company is the provision of education and training in the performing arts. In

pursuit of this objective, the company became sole trustee of The Liverpool Institute Charity on 8

th

October 1993. The governing document of the company is its Articles of Association, which define the

framework for corporate governance. The directors confirm compliance with both current statutory

requirements and the governing document. In particular, the report complies with the requirements of

the Charities Act 2011.

2. Organisation and Decision-Making Structure

The directors, who are collectively referred to as Council, are also the trustees. New directors are

appointed by the Council. The directors during the year and up to the date of signing the accounts were

as follows:

Isabel Begg Kim Johnson

Gina Carter Ian Jones

James Dow Sean McNamara (from 3 September 2021)

Louise Ellman Roger Morris (to 30 September 2022)

Victoria Fea David Owen

Mark Featherstone-Witty Simeon Scheuber-Rush

Simon Fowler Andrew Westwood (to 30 September 2022)

Geoffrey Goodwin Chair Claire Workman

Joe Johnson (from 4 August 2021)

The Council has established, through a scheme of delegation, several sub-committees, some of which

are formed on a short-term basis. Full information on company membership and committees may be

obtained from the Company Secretary. Further information of the five main committees is detailed in

the Corporate Governance Statement. Apart from the Chief Executive and the designated staff trustee,

none of the trustees receive any remuneration or benefit from their work with LIPA.

3. Background

LIPA is dedicated to providing the best teaching and learning for people who want to pursue a lasting

career in the arts and entertainment sector. This is provided through a series of courses aimed at

different age groups. These include pre-higher education courses and undergraduate programmes for

those aged 18 and over and performing arts classes for 4-19 year olds.

LIPA began teaching students in 1996. It was designated a higher education institute in 2006. It was

formed by a combination of the ideas of the Founder: Mark Featherstone-Witty, Sir George Martin and

Sir Paul McCartney to develop a specialist performing arts school and also to save the school building in

which Sir Paul had studied, from dereliction. Eleven years of planning and fundraising preceded the

opening in 1996.

LIPA is not a conventional dance, drama or music college although the standard of professional training

reflects the best of such institutions. The training process is based on an awareness of the need for

performing artists and those who make performance possible to collaborate creatively and integrate with

their peers. The synergy between performers, producers, managers, designers and technicians enables

the students to replicate industry practice giving a better understanding of the business they are

entering. It prepares students for a lasting career in the performing arts industry.

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4. Strategic Report

As a registered charity, the strategic report contain relating, but not

limited to:

Review of Activities and Achievement;

Results for the year;

Capital expenditure;

Cash flows;

Treasury Policies and Objectives;

Public Benefit;

Strategy and Risk;

Estates; and

Immediate Prospects.

5. Review of Activities and Achievement

(a) Higher Education

Undergraduate and Postgraduate Programmes

A total of 901 students as follows:

BA Acting 110

BA Acting (Screen and Digital Media) 43

BA Applied Theatre and Community Drama 60

BA Creative Technologies and Performance 40

BA Dance 98

BA Management of Music, Entertainment, Theatre and Events

93

BA Music 94

BA Music Songwriting and Performance 114

BA Music Songwriting and Production 69

BA Sound Technology 84

BA Theatre and Performance Design 46

BA Theatre and Performance Technology 50

Of the students, 733 were eligible for funding from the Student Loan Company and 168 came from

countries other than the UK. In addition, 33 students

degree programmes are validated by Liverpool John Moores University as the awarding body,

which confers the qualifications. This arrangement has been in place since inception.

Additionally, academic standards need to comply with those monitored by the Quality Assurance

Agency (QAA) for Higher Education. The most recent QAA review in 2015 resulted in the following

outcomes:

The maintenance of the academic standards of awards offered on behalf of its degree-awarding

bodies and/or other awarding organisations meets UK expectations;

The quality of student learning opportunities meets UK expectations;

The quality of the information about learning opportunities meets UK expectations; and

The enhancement of student learning opportunities meets UK expectations.

(it should be noted

Additionally, the QAA review identified the following features of good practice:

The comprehensive range of individually tailored and flexible support provided for students; and

The strategic approach to the use of deliberate and collaborative interdisciplinary practice, which

prepares students for long-term employability.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Corporate Governance Statement

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status following intensive scrutiny of key teaching and employability statistics in forming the

Foundation Certificate

In addition to the BA and postgraduate courses, 9 students studied on the LIPA foundation certificate

in Popular Music and Music Technology, 11 students undertook the LIPA foundation certificate in Dance

and 30 students undertook the LIPA foundation certificate in Acting.

These certificates are accredited by Liverpool John Moores University. The courses are a one-year full

time intensive vocationally orientated programme designed to enable progression into the industry or

provide preparation for degree level work. They receive no public funding.

Destinations

we undertake regular reviews of

graduate activity three years after graduation. As an example of this, a survey of students who graduated

in 2015 traced 84% of students and found that 89% were in employment with 78% in performing arts

related employment.

(b) LIPA 4-19 Part Time Academy

LIPA 4-19 is a part time performing arts academy for 4 to 19 year olds. It aims to produce multi-

disciplined all round performers with courses that comprise song, dance and acting. Courses are

carefully designed to reflect the correct stage of performing arts development for each age group. For

the individual, the skills learned help develop confidence and presentational skills. They stimulate

imagination and creativity.

also a sister school in Maghull. Expansion

has also been achieved by introducing classes on Sundays and advanced classes. In general, all LIPA

managed courses are oversubscribed with a large waiting list, indicating acceptance amongst students

and parents.

Many of the students aged 7 to 19 undertook singing exams in 2021/22 and early starters aged 5 to 6

undertook dance exams.

Many students graduating from LIPA 4-19 have been accepted at highly credited colleges such as

Guildford School of Acting, Performers College, Arts Educational, Urdang Academy, Mountview

Academy of Theatre Arts, the Royal Academy of Dramatic Art (RADA) and Central School of Speech and

Drama.

Once the students reach 16, many of them go on to train at the LIPA Sixth Form College and have also

been accepted to study at LIPA on the degree courses.

LIPA 4-19 activity has additional corporate benefits: non-government revenue streams, utilisation of

specialist facilities outside the normal Higher Education usage and generating expansion without the

need for high levels of capital investment.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Corporate Governance Statement

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6. Results for the Year

The Financial Statements comply with the current statutory requirements and have been prepared in

accordance with Applicable Accounting Standards in the United Kingdom. This includes the Statement

of Recommended Practice (SORP): Accounting for Further and Higher Education 2019 and in

accordance with note 1 of the Accounting Policies.

At 31st July 2022 the group had free reserves of £19,530,630, cash at bank of £4,061,464 and no

borrowings. The directors believe that sufficient resources are available to fulfil adequately the

obligations of the group.

The group experienced a surplus in the year of £725,751 (2021: £201,940 deficit). The overall figure

represents a surplus of 5.6% on income (2021: 1.8% deficit). The financial objectives of the group include

a targeted return of at least 3% of income.

Total income increased by £1,361,269 to £12,857,497. The increase in income is partly due to some

exceptional income items but

due to the COVID-19 pandemic.

Income from government sources totalled £908,579 (2021: £590,656). This represents 7.1% of total

income (2021: 5.1%). The increase is due to additional funding received via a successful bidding round

for OfS capital funding.

Operating expenditure increased by £433,577 to £12,131,746. The main increase was with respect to

staff costs, partly due to general wage increases but also investment in staff levels. Staff related

expenditure increased by £466,041 to £8,173,526. Staff costs represented 63.7% of total income and

67.3% of total expenditure (2021: 67.0% and 65.9% respectively).

7. Capital Expenditure

The total capital additions in the year to 31 July 2022 were £814,260 (2021: £313,536). This money

represented the start of an investment phase in campus and facilities, with further capital enhancements

planned in the year to 31 July 2023.

8. Cash Flows

The consolidated Cash Flow shows a net cash inflow from operating activities of £1,239,346 (2021:

£1,089,486).

Total cash balances and deposits were £4,061,464 at 31

st

July 2022 (2021: £3,436,161). The group had

no borrowings at 31

st

July 2022 (2021: £395,682).

During the year, LIPA maintained healthy cash balances which were higher than the planned balances

in the cash flow forecast. External borrowing to fund future campus investments has been discussed

and agreed but has not been deemed necessary up to the point of writing these financial statements.

9. Subsidiary Undertakings

The company has one subsidiary undertaking, LIPA Enterprises Limited. Any distributable surpluses

generated by the subsidiary are transferred to the Institute by way of donation in accordance with the

Memorandum and Articles of Association. The company has been dormant since 1 August 2020 and has

generated no surplus or deficit in the year to 31 July 2022 (2021: no surplus or deficit).

10. Unrestricted Reserves

LIPA deems all unrestricted reserves to be free funds for use in achieving the objectives of the company.

to provide financial flexibility for the development of the strategic plan. Reserves will be utilised to

ensure the continuing operation of the group and the expansion of capacity when appropriate

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

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approach is to retain sufficient free cash, or have bank facilities available, to meet thr

expenditure.

11. Endowment Reserves

Expendable endowment funds represent bursaries and student project funds which are to be distributed

over a significant period of time.

12. Treasury Policies and Objectives

transactions. The major risks relate to the security of the banking institutions where surplus cash is

invested and the exposure to fluctuating interest rates. Given the current economic environment, there

is no risk-free strategy. The Institute has adopted a risk minimisation strategy and only holds money

with large high-street lenders (primarily Santander plc).

13. Pensions

The Institute participates in only one defined benefit scheme, the Teachers Pension Scheme. It is not

, it is treated as a quasi-defined

contribution scheme. After each valuation the future contribution rates are adjusted. The last

adjustment occurred in March 2016, with contributions being increased from September 2019. A full

explanation of pension commitments is given in note 27 to the accounts.

14. Policy on the Payment of Creditors

Payment terms for goods and services are agreed with the suppliers at the time of placing orders and are

and this was

maintained throughout the year to 31 July 2022.

15. Accessibility and Widening Participation

LIPA is committed to a fair and transparent admissions system. There is no discrimination on grounds

of race, ethnicity, gender, sexual orientation, religion, disability or age. To ensure suitability is assessed

effectively, undergraduate interview and audition events were undertaken. Specialist support is

provided for students with disabilities. Tutors have experience of working with dyslexia, mental health

problems, long-term health problems, stress, organisational difficulties and sensory impairments. IT

equipment provided includes accessibility software.

LIPA is particularly concerned to engage with disadvantaged young people and strives to widen

participation from groups that are under-represented in higher education. LIPA is committed to a range

of outreach initiatives and fair access measures, as detailed in the 2020/21 to 2024/25 Access &

Participation Plan. These are targeted towards:

First degree entrants from lower socio-economic groups;

Those from black and minority ethnic groups;

Mature learners; and

Students from low participation neighbourhoods.

LIPA is also keen to promote applications and support pupils with disabilities and those with experience

of being in care.

In pursuit of these objectives LIPA provides a number of financial support initiatives. In the year to 31st

July 2022 these included:

A LIPA bursary of £560 to all students with a household income of £25,000 or below; and

A care leavers bursary of £1,000 to students who joined us aged 25 or over and who had been in

care for six months or more prior to their 16th birthday.

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We also chose not to charge audition fees for first-stage Acting applicants who applied for 2022 entry

as this part of the process was retained as a self-tape audition.

Through

people across the country that are designed to raise awareness and aspiration towards higher education

progression. These are targeted at school/college groups and individuals primarily interested in

performing arts and making performance possible.

During the year to 31st July 2022, LIPA worked closely with seven partner schools containing a

significant number of students from under-represented groups. In order to encourage interest in

performing arts-related subjects and identify talented students in these areas LIPA provided:

Tailored support workshops, known as LIPA Tasters, in partner schools with Year 7, 8 and 9 pupils

(along with Year 10 and Year 11 pupils in some cases), reaching 395 learners; and

Year 9 taster events between June, open to partner schools plus others from across Merseyside. These

were attended by 224 participants from 10 schools.

From year 10 onwards, LIPA offered a two-year programme of activities for individuals from state

schools who met at least one WP eligibility criteria. This structured progression framework for Year 10

and Year 11 students during this year consisted of:

Review by WP staff of self-tape submissions and online auditions onto the programme, designed, in

part, to give participants audition experience;

Regular communications over the autumn for those signed up to the programme, including pre-

recorded taster workshop sessions;

A welcome event in early March for new participants and parents explaining the future activities on

offer and showcasing the benefits of getting involved in the programme. This was attended by 19

young people and their accompanying supporters;

LIPA XTRA, a 3-day non-residential course attended by Year 10 students who are interested in

progressing to LIPA in the future. They chose to study acting, backstage, dance, music or singing for

the week and participated in a series of practical workshops;

The LIPA Summer Xperience, a 5-day summer school which this year focused on film making -

attended by 15 students finishing Year 10. Working together across four disciplines to create a short

film, the week culminated in a recording which was shared with participants and their families;

16 after-school skills workshops, plus a weekend film making project, for Year 11 students between

January and April 2022 covering various topics in acting, dance, music / singing and making

performance possible (4 per discipline).

For students studying at a Sixth Form or Further Education College, LIPA delivered:

Get Set, a 3-day course attended by 26 students who are interested in applying to LIPA for 2023

entry. They chose to study acting, dance, music or singing for the duration of the project, which

included a focus on application and audition awareness. During Summer 2022 Get Set was run as a

residential experience with students staying in a local hall of residence and taking part in evening

activities;

A range of workshops with nine partner colleges for young people studying performing arts and

making performance possible subjects at level 3 and considering higher education for 2022 and 2023

entry (additional workshops were also offered through schools and colleges liaison work); and

Audition preparation phone calls for students from low participation neighbourhoods throughout

January, February, March and April.

LIPA also responded to a variety of requests for ad-hoc activities from various schools and community

groups. In the year to 31

st

July 2022 LIPA provided:

Five visits to LIPA by non-partner schools and colleges. These visits included a tour and talk and, on

to 13;

In-school or online workshops at/with a further eight schools;

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

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Attendance at 42 careers fairs in local and regional schools / colleges with a LIPA / HE information

stand;

Music Theory preparation workshops during November attended by 4 students interested in

applying to music courses;

Online and in-person sessions in collaboration with Backstage Niche, aimed at encouraging more

students from black and ethnic minority backgrounds into backstage training roles;

Two collaborative talks with other HE providers through the Unifrog platform;

Hosting of and support for an arts week programme for looked after young people, delivered by

Collective Encounters; and

Cover of travel costs for a local college to attend a public performance put on by Applied Theatre and

Community Drama students.

LIPA has also engaged in activities closer to home, supporting its additional education ventures.

Through Access Agreement allocation, LIPA funded visits by LIPA Primary staff to nurseries in low

participation neighbourhoods to encourage progression to LIPA Primary School. LIPA also financed and

hosted an induction day in July for all children and their parents / carers due to start at the Primary

School in September 2022. Pupils currently at the LIPA Primary School participated in a series of

inspirational assemblies and workshops sessions in acting, singing, dance and backstage delivered

Learners at LIPA Sixth Form College participated in activities designed to raise awareness of the process

for applying to study in Higher Education and to assist with building confidence and skills for preparing

auditions / interviews. This included talks and audition preparation workshops across some discipline

areas, as well as portfolio preparation sessions for Production Arts students across the year.

Finally, LIPA was involved in supporting a number of collaborative outreach activities with other HE

providers across Liverpool. This spend has been accounted against additional funding relating to

support of the Uniconnect Programme (formerly NCOP).

16. Public Benefit

Details of the courses and programmes and the number of students who have participated are given

earlier in this Review.

LIPA seeks to provide benefits both to the wider public and to targeted groups of individuals who might

not otherwise experience or participate in the performing arts. In pursuance of this objective LIPA has:

Run

cost. The live streaming was a response to the COVID-19 pandemic;

initiatives or in combination with others;

Given financial support for a number of graduate businesses;

Generated new graduates business employment;

-record and reputation to assist a variety of

enquirers;

Contributed through technical theatre programmes to the regio

Worked in the community, including cultural activities for young people, asylum seekers, offenders

and those with addiction issues;

Sponsored and provided on-going support to The LIPA Primary School and The LIPA Sixth Form

College.

17. Strategy and Risk

Linked to the overall strategic plan, a comprehensive risk register has been produced which links the

goals to the risks and the action plans to mitigate these risks. COVID-19 has meant that some objectives

in the previous strategic plan have not been achieved, but, as appropriate, these have been incorporated

into the new strategic plan, which runs to 31 July 2025.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Corporate Governance Statement

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Applications to LIPA each year are approximately eight times the number of places available. As noted

above it had free cash of £4,061,464 available at 31

st

July 2022 and no borrowings.

In overall terms, LIPA is a relatively low risk organisation with a reputation for excellence, drawing

students from across the world. However, it is not risk free nor does the low level of risk mean that the

Institute is complacent about its future, especially having regard to:

The impact of the recovery from the pandemic on staff, students and the ability to continue to deliver

high quality programmes in a period of uncertainty;

Potential changes in the funding arrangements for UK students;

Increased competition in the Higher Education marketplace;

The UK leaving the European Union, and the impact of this on international student recruitment

patterns and staff mobility; and

The impact of the loss of Institute Specific Funding.

Continue to

providing the best possible student experience;

Maintain and increase the level of student intake, in terms of both quality and numbers, including

overseas students;

Develop new facilities, including additional rehearsal and performance spaces, designed specifically

;

Manage costs appropriately whilst balancing the needs of the student experience; and

Monitoring the wider economic and po al

from the European Union.

18. OfS Funding

For the year ended 31

st

July 2022 OfS income provided 5.4% of total funding. This included

capital grant income. The majority of UK student funding is through loans provided by the Student Loan

Company to students to fund their tuition fees.

19. Estates

LIPA has been operating for circa 25

building attended by Sir Paul McCartney, from dereliction. The building was completely refurbished at

a total cost of £13.6m. LIPA occupies the Mount Street property in accordance with the Scheme of the

Charity Commission which makes LIPA the trustee of the Liverpool Institute Charity.

In March 2012, LIPA acquired the freehold property at 68 Hope Street, on the basis that the building

would provide scope for expansion and enhancement of the facilities on offer at that time. Following

extensive alteration work, the building now provides high quality teaching spaces for the benefit of LIPA

students.

Further investments in the estate took place over the summer of 2022 to continue to enhance the

provision for students. This is part of an ongoing investment in resources planned as part of the current

strategic investment cycle, linked to the overall strategic direction.

20. Immediate Prospects

LIPA appointed a new Principal and CEO, Sean McNamara, who was appointed from 1

st

September 2021

and replaced the Founding Principal and outgoing CEO, Mark Featherstone-Witty.

Following completion of the investment phase of the LIPA 2022 Project (the total project value was

£6,907,000, of which the Office for Students provided £3,873,000), the Institute has continued to

develop and evolve its curriculum offer in accordance with the project plan and the agreed project

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Corporate Governance Statement

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milestones. Further to this, the Institute is continuing to invest in its infrastructure and facilities to the

benefit of its students.

New courses created as part of the LIPA 2022 Project have continued to grow and further courses are

also planned to allow a broader remit of training to be provided, all within the overarching strategic

objective of the company.

Whilst investing in the future, the Group will also continue to:

Review all courses offered and introduce new courses where demand justifies this;

Optimise the funding available;

Continue to pursue Value fo and

Review all new appointments as posts become available.

The Institute is also planning to obtain Taught Degree Awarding Powers (TDAPs) over the course of the

strategic planning cycle to 31 July 2025.

21. The LIPA Multi Academy Trust

plan for 2012-17 included the development of primary provision. To this end, The LIPA

Primary School was incorporated on 30

th

November 2012. This is a company limited by guarantee, with

charitable status. Whilst its members and governors include LIPA Members and Council Directors, the

company does not constitute a subsidiary of LIPA. The LIPA Primary School filled up all year groups as

Commencing September 2021, it changed its name and remit to become a through-school, entitled the

LIPA Primary and High School. This coincided with an intake of 52 pupils into Year 7.

In further pursuance of creating an integrated educational group, LIPA submitted a successful bid to

open a sixth form college. The LIPA Sixth Form College was incorporated on 24

th

December 2013. This

was a company limited by guarantee, with charitable status. Whilst its members and governors include

LIPA Members and Council Directors, the company does not constitute a subsidiary of LIPA. The LIPA

Sixth Form College is heavily over

inspection in February 2020.

On 1

st

May 2022, the company changed its name to The LIPA Multi Academy Trust and absorbed the

assets and liabilities of the LIPA Primary School. The LIPA Multi Academy Trust is a company limited

by guarantee, with charitable status. Whilst its members and governors include LIPA Members and

Council Directors, the company does not constitute a subsidiary of LIPA

During the year LIPA provided support to The LIPA Primary School, The LIPA Sixth Form College and,

from 1

st

May 2022, the LIPA Multi Academy Trust through a Service Level Agreement.

22. Stakeholder Relationships

staff, alumni, patrons, the OfS, employers, government offices,

Liverpool residents, professional bodies and practitioners.

23. Equal opportunities and employment of disabled employees

LIPA is committed to ensuring equality of opportunity for everyone. LIPA respects and positively values

differences in race, gender, disability and disadvantaged backgrounds. Applications for employment by

disabled persons are given full and fair consideration in accordance with their particular aptitudes and

abilities. In the event of an employee becoming disabled, every effort is given to retrain them in order

that their employment with the company may continue.

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24. Fundraising

LIPA does not carry out fundraising to the general public.

25. Going Concern

has sufficient resources to continue to meet its obligations as they arise over the next 12 months. The

Group has a five-year financial forecast that is cash positive. Student numbers for the September 2022

intake are broadly in line with expectations and, up to the time of signing these financial statements,

student withdrawal levels are not out of line with previous years. The Group has undertaken stress

testing on the assumptions within its financial forecasts and believe that the risk of significant adverse

performance is very low.

26. Financial Statements Auditors

A resolution to reappoint Crowe UK LLP will be proposed at the Annual General Meeting.

The approval of the Operating and Financial Review includes the approval of the Strategic Report as

well as the responsibilities required by the regulator.

BY ORDER OF THE BOARD

K Dimmock

Company Secretary

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in doing so complies with the Committee of University Chairs (CUC) Higher Education Code of

Governance 2020. In carrying out its duties it also has regard for the best practice in The UK Corporate

Governance Code 2018, insofar as it is applicable to the company. This summary describes the manner

in which the company has applied the principles set out in the CUC Higher Education Code of

Governance. Its purpose is to help the reader of the accounts understand how LIPA applies the

principles.

ethos and culture and guardians of its fundamentals. The

1.

and mission of LIPA;

2. f Principal;

3. financial statements auditors;

4.

Council. Any changes are subject to the approval of the Privy Council and the Charity Commission.

resolution signed by a majority of the members. There is a Memorandum of Understanding between the

members and Council on how this power is exercised.

the Companies Acts and Trustees within the meaning of the Charities Act. The primary responsibilities

of Council are:

1.

2. To prepare, or cause to be prepared, long-term teaching and business plans and key performance

indicators, and to ensure that these meet the interests of stakeholders;

3. To fill any vacancy, or determine the method of filling any expected vacancy, in the post of

h vacancy or expected vacancy;

4. To delegate to the Principal, as chief executive, authority for the teaching, corporate, financial,

estate and the management of teams LIPA;

5. To establish and keep under regular review the policies, procedures and limits within the

management functions undertaken by, and under the authority of, the Principal;

6. To ensure the establishment and monitoring of systems of control and accountability, including

financial and operational controls and risk assessment;

7. To ensure that processes are in place to monitor and evaluate the performance and effectiveness

of LIPA against the plans and approved key performance indicators, which should be, where

possible and appropriate, benchmarked against other comparable institutions;

8. To establish processes to monitor and evaluate the performance and effectiveness of Council

itself;

9. To conduct its business in accordance with best practice in higher education corporate governance

and with the principles of public life drawn up by the Committee on Standards in Public Life;

10.

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11. To appoint a clerk to Council and to ensure that, if the person appointed has managerial

responsibilities in LIPA, there is an appropriate separation in the lines of accountability;

12. To be responsible for the appointment, grading, appraisal, assignment, suspension and dismissal

of senior post holders and the determination of their pay and conditions of service;

13. To set a framework for the pay and conditions of service of all staff and make rules specifying

procedures according to which staff may seek redress of any grievances relating to their

performance;

14. per books of account

are kept, to approve the annual budget and Financial Statements, and to have overall

15. To set rules, after consultation with the Teaching and Learning Board and representatives of the

students, with respect to the conduct of students, including procedures for suspension and

expulsion, and make such provision as it thinks fit for the general welfare of students;

16. To act as trustee for any property, legacy, endowment, bequest or gift made in support of the work

and welfare of LIPA;

17.

legal obligations, including those arising from contracts and other legal commitments made in

18. To ensure that LIPA adheres to its constitution at all times and that appropriate advice is available

to enable this to happen; and

19.

Meeting or by written resolution, the Privy Council and the Charities Commission.

Directors serve a term of four years, and may be re-elected to serve a further term of four years. Any

director retiring after serving eight years is eligible for re-appointmen

particular skills, experience, commitment and longevity of service.

Nominations for new appointees are sought from existing and past directors and from within the

performing arts, business and other sectors. The aim is to ensure a balance of skills within the Council.

Such criteria as widening the diversity of the Council are also taken into account in seeking nominations.

All nominations are tabled at a full Council meeting for approval. On appointment new directors attend

a half-day induction course at LIPA. This provides a detailed explanation of the legal responsibilities of

the post and the workings of the Institute. This is supplemented by detailed policy documents such as

plan.

Directors observe the Seven Principles of Public Life drawn up by the Committee on Standards in Public

Life.

Council ensures that the Institute has in place appropriate procedures under which staff may raise

matters of legitimate concern in the public interest, consistent with the requirements of the Public

Interest Disclosure Act (2010).

The Council has five main committees - Finance, Audit, Nominations and Governance, Remuneration,

and Teaching and Learning Board. The various terms of reference are set out in the Handbook of

Governance.

capital budgets and monitors performance in relation to the approved budgets.

The Audit Committee meets fou Financial Statements Auditors and

Internal Auditors in attendance as appropriate. The Committee considers detailed reports together with

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Corporate Governance Statement

For the year ended 31

st

July 2022 continued

15

responses and implementation plans. It also receives and considers reports from the OfS as they affect

attend meetings of the Audit Committee as necessary, they are not members of the Committee. The

Committee has the opportunity to meet with both Financial Statements Auditors and Internal Auditors

on their own for independent discussions.

The Nominations and Governance Committee seeks out new directors and recommends their

The Remuneration Committee determines the remuneration of the most senior staff, including the

Principal. The Remuneration Committee has agreed that it will be guided by the CUC HE Senior Staff

Remuneration Code but would not formally adopt it.

The Teaching and Learning Board determines the strategic curriculum development of the Institute.

Working groups are established from time to time by the Chief Executive, for which a member of the

senior management team is responsible (though not necessarily as chair).

Formal working groups are not established without the approval of the Chief Executive, although it is

expected that staff will work in a cross-disciplinary manner and on a team basis, without the need for

direction to do so, in order to maximise the benefits of the expertise available to achieve any given

objective.

LIPA is the sponsor of the LIPA Primary School and the LIPA Sixth Form College. Both are separate

legal entities and these financial statements do not consolidate

sponsored academies.

reviewing its

effectiveness to ensure that LIPA upholds regularity and propriety in the use of public funding. The

system is designed to manage rather than eliminate the risk of failure to achieve business objectives and

can only provide reasonable and not absolute assurance against material misstatement or loss. The

system of internal control is based on an ongoing process designed to identify the principal risks to the

achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to

manage them efficiently, effectively and economically. This process has been in place for the year ended

31

st

July 2022 and up to the date of approval of the Financial Statements and accords with OfS guidance.

The key elements of the com

responsibilities set out above, include the following:

Effective review by directors;

Systems which define policies, set objectives and plans and then monitor financial and other

performance;

Systems and procedures which include segregation of duties, authorisation and approval procedures

and information systems;

An effective internal audit system;

An effective financial statements audit system, including an appropriate response to the points raised

in the management letter;

Other reporting and monitoring systems such as those required by providers of other funds;

The work of the Finance and Audit Committees in monitoring the financial position and control

systems;

The strategic plan and the related annual operating statements which set the framework for the

annual budgets;

The annual operating and capital budgets which identify and quantify the revenue resources available

and associated expenditure;

The provision of regular financial information to individuals with responsibility for elements of the

budget and the monitoring of progress against budgets;

Day to day controls exercised by the financial officers of LIPA;

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Corporate Governance Statement

For the year ended 31

st

July 2022 continued

16

The Financial Regulations which, amongst other items, detail the financial procedures and rules to

be followed for various financial transactions;

Policies on a range of areas such as treasury management, debt collection, fraud etc.; and

A Corporate Governance manual, which sets out various controls and policies.

The risk management strategy incorporates the following processes:

Council have approved the risk management policy;

The principal responsibility for risk management has been assigned to the senior management team,

and risk management is planned into the work of the team for the year, with regular updates to the

at senior management team meetings;

The Internal Auditors have been instructed to ensure that their planning arrangements, methodology

and approach conform to the latest professional standards reflecting the adoption of risk

management; and

The Audit Committee has been charged with providing advice on the effectiveness of the

establishment and implementation of risk management.

The Council ensures that there is an independent Internal Audit function, which has direct access to the

Chair of Council and to the Chair of the Audit Committee. This is the same for the Financial Statements

Audit function.

The Internal Auditors submit regular reports on the adequacy and effectiveness of the system of internal

control, together with recommendations for improvement. Similarly, the Financial Statements Auditors

have the opportunity to suggest control improvements during their audit process. All recommendations

made are monitored and tracked to completion by the Audit Committee.

T

Internal Auditors and the executive managers within the Institute who have responsibility for the

development and maintenance of the internal control framework, and by comments made by the

Financial Statements Auditors in their management letter and other reports. No significant control

weaknesses have arisen during the year.

ON BEHALF OF THE BOARD

G. Goodwin

Chair of Council

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

For the year ended 31

st

July 2022

17

In accordance with the Institute , Council is responsible for

the administration and management of the affairs of the Institute and is required to present audited

financial statements for each financial year.

The Council (the members of which are also the directors of the company for the purposes of company

law) is responsible for preparing the Operating and Financial Review including the Strategic Report and

the financial statements in accordance with applicable law and regulations.

Company law requires Council to prepare financial statements for each financial year. Under that law,

Council is required to prepare the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including

ancial Reporting Standard applicable in the UK and Republic of Ireland .

In addition, Council, through its Accounting Officer, is required to prepare the financial statements in

accordance with the terms and conditions of Terms and conditions of funding for higher

education institutions 2021-22 (issued July 2021) through its accountable officer. Under company law,

Council must not approve the financial statements unless they are satisfied that they give a true and fair

view of the state of affairs of the Institute and the group and of the surplus or deficit, gains and losses,

changes in reserves and cash flows of the Institute and the group for that year.

In preparing the financial statements Council is required to:

Select suitable accounting policies and then apply them consistently;

Make judgements and accounting 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 Institute will continue in business.

Council is responsible for keeping adequate accounting records that are sufficient to show and explain

the Institute's transactions and disclose with reasonable accuracy at any time the financial position of

the Institute and enable it to ensure that the financial statements comply with the

conditions of funding for higher education institutions 2021-22 (issued July 2021), the Statement of

Recommended Practice: Accounting for Further and Higher Education (2019 edition), and any

subsequent amendments, the Office for Student's Accounts Direction (issued October 2019) and the

Companies Act 2006. Council is also responsible for safeguarding the assets of the Institute and hence

for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Council has taken reasonable steps to:

Ensure that funds from the OfS and other funding bodies are used only for the proper purposes for

which they have been given and seek to achieve value for money in accordance with the

and conditions of funding for higher education institutions 2021-22 (issued July 2021) and any other

conditions which the funding body may from time to time prescribe;

Ensure that the Institute has a robust and comprehensive system of risk management, control and

corporate governance, which includes the prevention and detection of corruption, fraud, bribery and

irregularities;

Ensure that there is regular, reliable, timely and adequate information to monitor performance and

track the use of public funds;

Ensure that it informs the OfS of any material change in its circumstances, including any significant

developments that could impact on the mutual interests of the Institute and the OfS;

Ensure that there are adequate and effective arrangements for the management and quality

assurance of data submitted to the Higher Education Statistics Agency, the Student Loans Company,

the OfS and other funding or regulatory bodies;

Ensure an effective framework to

manage the quality of learning and teaching and to maintain academic standards; and

funding purposes.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

For the year ended 31st July 2022 continued

18

Council is responsible for the maintenance and integrity of the corporate and financial information

included on the Institute's website. Legislation in the United Kingdom governing the preparation and

dissemination of financial statements may differ from legislation in other jurisdictions.

Council confirms that:

So far as each member is aware, there is no relevant audit information of which the auditor

is unaware; and

Members have taken all the steps that they ought to have taken as members in order to make

themselves aware of any relevant audit information and to establish that the Institute

aware of that information.

Approved on behalf of Council by:

S. McNamara

Director

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Financial Statements Auditor's report to the Council of The Liverpool Institute for

Performing Arts

For the year ended 31

st

July 2022

19

Opinion

We have audited the financial statements of The Liverpool Institute for Performing Arts for the year

ended 31 July 2022 which comprise Consolidated and Institute Statement of Comprehensive Income,

the Consolidated and Institute Statement of Changes in Reserves, the Consolidated and Institute

Balance Sheets, the Consolidated 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:

July 2022 and of its

incoming resources and application of resources, including its income and expenditure for the year

then ended;

Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice; and

Have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are fu

responsibilities for the audit of the financial statements section of our report. We are independent of the

charitable company in accordance with the ethical requirements that are relevant to our audit of the

financial stat

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.

Conclusions relating to going concern

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 charitable

company'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 trustees are responsible for the other information contained within the annual report. The other

information comprises the information included in the annual report, other than the financial

inancial 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

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.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Financial Statements Auditor's report to the Council of The Liverpool Institute for

Performing Arts

For the year ended 31st July 2022 continued

20

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:

report prepared for the purposes of company law, for the financial year for which the financial

statements are prepared is consistent with the financial statements; and

in accordance with applicable legal requirements.

Opinion on other matters prescribed by the OfS accounts direction (issued October 2019)

In our opinion, in all material respects:

Funds from whatever source administered by the parent institute for specific purposes have been

properly applied to those purposes and managed in accordance with the relevant legislation;

Funds provided by the OfS have been applied in accordance with the relevant terms and conditions;

and any other terms and conditions attached to them; and

nts direction (issued October 2019) have been met.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and its environment obtained in

the course of the audit, we have not identified material misstatements in the strategic report or the

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

The financial statements are not in agreement with the accounting records and returns; or

Certain disclosures of Council's remuneration specified by law are not made; or

We have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees Responsibilities Statement set out on pages 17 to 18, the trustees

(who are also the directors of the charitable company for the purposes 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

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.

A

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

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.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Financial Statements Auditor's report to the Council of The Liverpool Institute for

Performing Arts

For the year ended 31st July 2022 continued

21

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design

procedures in line with our responsibilities, outlined above, to detect material misstatements in respect

of irregularities, including fraud. The extent to which our procedures are capable of detecting

irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the charitable

company operates, focusing on those laws and regulations that have a direct effect on the

determination of material amounts and disclosures in the financial statements. The laws and

regulations we considered in this context were the Companies Act 2006, Charities Act 2011 and

employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws

and regulations to enquiry of the trustees and other management and inspection of regulatory and

legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities,

including fraud, to be the override of controls by management and completeness of income. Our

audit procedures to respond to these risks included enquiries of management about their own

identification and assessment of the risks of irregularities, sample testing on the posting of journals,

reviewing accounting estimates for biases, sample testing from grant and contract documentation,

proof in total of tuition fees from the SITS report database and project income from the register.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected

some material misstatements in the financial statements, even though we have properly planned and

performed our audit in accordance with auditing standards. We are not responsible for preventing non-

compliance and cannot be expected to detect non-compliance with all laws and regulations. A further

description of our responsibilities for the audit of the financial statements is located on the Financial

Repor www.frc.org.uk/auditorsresponsibilities. This description forms part of

Use of our report

This report is

of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the

for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility

audit work, for this report, or for the opinions we have formed.

Vicky Szulist

Senior Statutory Auditor

for and on behalf of Crowe UK LLP

The Lexicon

Mount Street

Manchester

M2 5NT

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Consolidated and Institute Statement of Comprehensive Income and Expenditure

For the year ended 31

st

July 2022

22

Year ended 31

st

July 2022

2022

2021

INCOME Consolidated

Institute

Consolidated

Institute

Notes £

£

£ £

Tuition Fees 1.1 10,573,344

10,573,344

10,092,282

Funding Body Grants 1.2 908,579

908,579

590,656

Project Income 1.3 431,882

431,882

254,116

Other Income 1.4 910,814

910,814

502,824

Investment Income 1.5 6,999

6,999

5,726

Total Income before

Donations and

Endowments

12,831,618

11,445,604

Donations and

Endowments

1.6 25,879

25,879

50,624

Total Income

12,857,497

11,496,228

EXPENDITURE

Staff Costs 2 8,173,526

8,173,526

7,707,485

Other Operating

Expenses

3 3,009,629

3,009,629

3,041,412

Depreciation 945,990

945,989

929,875

Interest and Other

Finance Costs

4 2,601

2,601

19,397

Total Expenditure

12,131,746

11,698,169

Surplus/(Loss) before

Tax

725,751

(201,941)

Taxation 5 -

-

Surplus/(Loss) and

Total Comprehensive

Income for the year

725,751

(201,941)

Represented by:

Unrestricted

(expenditure) / income

for the year

720,449

(249,296)

Restricted income for the

year

7,500

50,000

Endowment

(expenditure) / income

for the year

(2,198)

(2,645)

725,751

(201,941)

All amounts relate to continuing operations.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Consolidated and Institute Statement of Changes in Reserves

For the year ended 31

st

July 2022

23

Income and Expenditure Account

Endowment Restricted Unrestricted Total

Consolidated

£ £ £ £

Balance at 1

st

August 2020 269,654

432,120

18,569,857

19,271,631

(Deficit)/Surplus from the Income

and Expenditure Account

(2,645)

50,000

(249,296)

(201,941)

Transfers between funds -

(482,120)

482,120

-

Total Comprehensive Income

for the year

(2,645)

(432,120)

232,825

(201,941)

Balance at 1

st

August 2021 267,009

-

18,802,681

19,069,690

(Deficit) / Surplus from the

Income and Expenditure Account

(2,198)

7,500

720,449

725,751

Transfers between funds -

(7,500)

7,500

-

Total Comprehensive Income

for the year

(2,198)

-

727,949

725,751

Balance at 31

st

July 2022 264,811

-

19,530,630

19,795,441

Institute

Balance at 1

st

August 2020 269,654

432,120

18,569,857

19,271,631

(Deficit)/Surplus from the Income

and Expenditure Account

(2,645)

50,000

(249,296)

(201,941)

Transfers between funds -

(482,120)

482,120

-

Total Comprehensive Income

for the year

(2,645)

(432,120)

232,825

(201,941)

Balance at 1

st

August 2021 267,009

-

18,802,681

19,069,690

(Deficit) / Surplus from the

Income and Expenditure Account

(2,198)

7,500

720,449

725,751

Transfers between funds -

(7,500)

7,500

-

Total Comprehensive Income

for the year

(2,198)

-

727,949

725,751

Balance at 31

st

July 2022 264,811

-

19,530,630

19,795,441

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Consolidated and Institute Balance Sheets

Registered number: 02511501

24

As at 31

st

July 2022 As at 31

st

July 2021

Consolidated

Institute Consolidated

Institute

Notes £

£

Non-Current Assets

Intangible Assets 6 202,014

202,014

243,674

Fixed Assets 7 16,020,063

16,020,063

16,567,450

Assets Held in Trust 8 1,291,647

1,291,647

1,425,831

Investments 9 2,377

2,477

2,377

2,477

17,516,101

17,516,201

18,239,332

18,239,432

Current Assets

Stock 10 9,287

9,287

4,000

Trade and Other Receivables 11 567,649

567,649

518,429

Cash and Cash Equivalents 12 4,061,464

4,061,464

3,436,161

4,638,400

3,958,590

Less: Creditors

Amounts Falling Due Within One

Year

13 (2,359,060)

(2,359,160)

(3,128,232)

(3,128,332)

Net Current Assets 2,279,340

2,279,240

830,358

830,258

Total Assets less Current

Liabilities

19,795,441

19,069,690

Less: Creditors

Amounts Falling Due after more

than One Year

-

Total Net Assets 19,795,441

19,795,441

19,069,690

Restricted Reserves

Income and Expenditure Reserve

Endowment Reserve

14 264, 811

264,811

267,009

Income and Expenditure Reserve

Restricted Reserve

15 -

-

Unrestricted Reserves

Income and Expenditure Account

- Unrestricted

19,530,630

18,802,681

Total Funds 19,795,441

19,795,441

19,069,690

Approved by the board on 25 November 2022 and signed on its behalf by:

G. Goodwin Chair of Council

S. McNamara Director

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Consolidated Statement of Cash Flows

For the year ended 31

st

July 2022

25

Cash Flow from Operating Activities

2022

£

2021

£

Surplus / (Deficit) for the year ended 31

st

July

725,751

(201,941)

Adjustment for Non-Cash Items

Depreciation

945,990

929,875

(Increase) /Decrease in Stock

(5,287)

850

(Increase) / Decrease in Debtors

(49,220)

30,834

(Decrease) / Increase in Creditors

(373,490)

316,197

Assets Donated

-

Adjustment for Investing or Financing Activities

Investment Income

(6,999)

(5,726)

Interest Payable

2,601

19,397

Loss on Sale of Fixed Assets

-

Net Cash Inflow from Operating Activities

1,239,346

1,089,486

Cash Flows from investing activities

Investment Income

6,999

5,726

Payments made to Acquire Fixed Assets

(814,260)

(489,421)

Donated Assets

(12,232)

-

Write back of liability for purchase of fixed assets

603,733

-

(215,760)

(483,695)

Cash flows from financing activities

Interest Paid

(2,601)

(19,397)

Loan Repaid

(395,682)

(376,819)

(398,283)

(396,216)

Increase/(Decrease) in Cash and Cash Equivalents in

the year

625,303

209,575

Cash and Cash Equivalents at beginning of the year

3,436,161

3,226,586

Cash and Cash Equivalents at end of the year

4,061,464

3,436,161

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Accounting Policies

For the year ended 31

st

July 2022

26

1. Basis of Preparation

These financial statements have been prepared in accordance with the Statement of Recommended Practice:

Accounting for Further and Higher Education (2019 edition) and in accordance with applicable accounting

standards. LIPA is a public benefit entity and therefore has applied the relevant public benefit requirement of the

applicable accounting standards. The financial statements are prepared in accordance with the historical cost

convention.

1.1 The financial statements have been prepared under FRS 102.

1.2 The financial statements are presented in sterling (£).

1.3 Going Concern -

that the Group has sufficient resources to continue to meet its obligations as they arise over the next 12

months. The Group has a five-year financial forecast that is cash positive. Student numbers for the

September 2022 intake are broadly in line with expectations and, up to the time of signing these financial

statements, student withdrawal levels are not out of line with previous years. The Group has undertaken

stress testing on the assumptions within its financial forecasts and believe that the risk of significant adverse

performance is very low.

2. Basis of consolidation

The consolidated financial statements include the company and its subsidiary for the financial year to 31

st

July

2022. Intra-group transactions are eliminated on consolidation. In the financial year to 31

st

July 2022, the

subsidiary was dormant and therefore there were no transactions within it.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors,

including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The Institute makes estimates and assumptions concerning the future. The resulting accounting estimates and

assumptions will, by definition, seldom equal the related actual results. There are no estimates or assumptions

that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities

within the next financial year.

Critical areas of judgement

There are no areas of judgement that have a significant risk of causing a material adjustment to the carrying

amounts of assets and liabilities within the next financial year.

4. Income Recognition

4.1 Income from the sale of goods or services is credited to the Statement of Comprehensive Income and

Expenditure when the goods or services are supplied to the external customers or the terms of the contract

have been satisfied.

4.2 Fee income is stated gross of any expenditure which is not a discount and credited to the Statement of

Comprehensive Income and Expenditure over the period in which students are studying. Where the amount

of the tuition fee is reduced by any discount, income receivable is shown net of the discount.

4.3 Bursaries and scholarships are accounted for gross as expenditure and not deducted from income.

4.4 Funds the Institute receives and disburses as paying agent on behalf of a funding body are excluded from the

income and expenditure of the Institute where the Institute is exposed to minimal risk or enjoys minimal

economic benefit related to the transaction.

4.5 Government grants, including funding council grants are recognised within the Statement of Income and

Expenditure over the periods in which the Institute recognises the related costs for which the grant is

intended to compensate. Where part of a government grant is deferred it is recognised as deferred income

within creditors and allocated between creditors due within one year and due after more than one year as

appropriate.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Accounting Policies continued

For the year ended 31

st

July 2022

27

Other grants and donations from non-government sources are recognised within the Statement of

Comprehensive Income and Expenditure when the Institute is entitled to the income and performance

related conditions have been met.

4.6 Income received in advance of performance related conditions is deferred on the balance sheet and released

to the Statement of Comprehensive Income and Expenditure in line with such conditions being met.

4.7 Other grants and donations from non-government sources are recognised within the Statement of

Comprehensive Income and Expenditure when the Institute is entitled to the income and performance

related conditions have been met. Income received in advance of performance related conditions being met

is deferred on the Balance Sheet and released to the Statement of Comprehensive Income and Expenditure

in line with such conditions being met.

4.8 Non-exchange transactions without performance related conditions are donations and endowments.

Donations and endowments with donor-imposed restrictions are recognised within the Statement of

Comprehensive Income and Expenditure when the Institute is entitled to the Income. Income is retained

within the restricted reserve until such time that it is utilised in line with such restrictions at which point the

income is released to general reserves through a reserve transfer.

4.9 Investment income and appreciation of endowments is recorded in income in the year in which it arises and

as either restricted or unrestricted income according to the terms applied to the individual endowment fund.

4.10 Donations with no restrictions are recorded within the Statement of Comprehensive Income and

Expenditure when the Institute is entitled to the income. Donations and endowments with restrictions are

classified as restricted reserves with additional disclosure provided within the notes to the accounts. There

are four main types of donations and endowments with restrictions:

1. Restricted donations - the donor has specified that the donation must be used for a particular objective;

2. Unrestricted permanent endowments - the donor has specified that the fund is to be permanently

invested to generate an income stream for the general benefit of the Institute;

3. Restricted expendable endowments - the donor has specified a particular objective other than the

purchase or construction of tangible fixed assets, and the Institute can convert the donated sum into

income; and

4. Restricted permanent endowments - the donor has specified that the fund is to be permanently invested

to generate an income stream to be applied to a particular objective.

5. Capital grants

Capital grants are recorded in the Statement of Comprehensive Income and Expenditure when the Institute is

entitled to the income subject to any performance related conditions being met.

6. Accounting for retirement benefits

superannuation scheme that provides benefits based on final pensionable pay. For other staff the company also

operates the LIPA Staff Pension Schemes, a range of defined contribution pension plans providing benefits

additional to those from the State.

Defined Benefit Plan

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Under the

definitions set out in Section 28 of FRS102 -employer pension scheme.

LIPA is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, LIPA has

taken advantage of the exemption in Section 28.11 of FRS102 and has accounted for contributions to the scheme as

if it were a defined contribution scheme.

Defined Contribution Plan

A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions

into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for

contributions to defined contribution pension plans are recognised as an expense in the Statement of

Comprehensive Income and Expenditure in the periods during which services are rendered by employees. The

dependently administered funds.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Accounting Policies continued

For the year ended 31

st

July 2022

28

7. Employment benefits

Short term employment benefits such as salaries and compensated absences are recognised as an expense in the

year in which the employees render service to the Institute. Any unused benefits are accrued and measured as the

additional amount the Institute expects to pay as a result of the unused entitlement.

8. Operating leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or

incentives are spread over the minimum lease term.

9. Foreign currency

Transactions in foreign currency are accounted for at the sterling equivalent (net of charges) on the date of receipt

or payment. Monetary assets and liabilities are translated into sterling at year end rates. The resulting exchange

differences are dealt with in the determination of income and expenditure for the financial year.

10. Intangible assets

Intangible assets are stated at cost less accumulated amortisation. Intangible assets are amortised over between

three and 10 years, representing their remaining estimated economic lives. Intangible assets are subject to

periodic impairment reviews as appropriate.

11. Fixed assets

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of a

fixed asset have different useful lives, they are accounted for as separate items of fixed assets.

Land and buildings

Costs incurred in relation to land and buildings after initial purchase or construction, and prior to valuation, are

capitalised to the extent that they increase the expected future benefits to the Institute.

Freehold land is not depreciated as it is considered to have an indefinite useful life.

Freehold buildings are depreciated on a straight line basis over 50 years.

Leasehold land is depreciated over the life of the lease up to a maximum of 50 years.

Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are

brought into use.

Furniture and equipment

Items of furniture and equipment costing less than £1,000 per individual item or groups of the same items are

written off in the year of acquisition. All other equipment is capitalised.

Capitalised furniture and equipment is stated at cost and depreciated over its expected useful life as follows:

Computer equipment 3 years; and

Furniture and other equipment up to 10 years.

12. Assets held in trust

Assets held in trust include additions to the Liverpool Institute building. These assets are depreciated over a period

of up to 25 years.

Art works represent historic assets used by the institution and corporate art and are not, therefore, accounted for

as a heritage asset.

13. Investments

Investments are shown at cost less any provision for impairment.

14. Stock

Stock is held at the lower of cost and net realisable value, and is measured using an average cost formula.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Accounting Policies continued

For the year ended 31

st

July 2022

29

15. Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially

at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest

method, less any impairment.

16. Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans,

are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using

the effective interest method.

17. Cash and cash equivalents

Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if

they are in practice available within 24 hours without penalty.

Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash

with insignificant risk of change in value.

18. Borrowing costs

Borrowing costs are recognised as an expense in the Statement of Comprehensive Income and Expenditure in the

period in which they are incurred.

19. Provisions, contingent liabilities and contingent assets

Provisions are recognised in the financial statements when:

(a) The Institute has a present obligation (legal or constructive) as a result of a past event;

(b) It is probable that an outflow of economic benefits will be required to settle the obligation; and

(c) A reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is determined by discounting the expected future cash flows at a pre-tax rate

that reflects risks specific to the liability.

A contingent liability arises from a past event that gives the Institute a possible obligation whose existence will only

be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the Institute.

Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not

probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.

A contingent asset arises where an event has taken place that gives the Institute a possible asset whose existence

will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of

the Institute.

Contingent assets and liabilities are not recognised in the Balance Sheet but are disclosed in the notes.

20. Taxation

The Institute is an exempt charity within the meaning of Part 3 of the Charities Act 2011, and, as such, is a charity

within the meaning of Section 506 (1) of the Income and Corporation Taxes Act 1988. The Institute is recognised as

a charity by HM Revenue & Customs. It is therefore a charity within the meaning of Para 1 of schedule 6 to the

Finance Act 2010 and accordingly, the Institute is potentially exempt from taxation in respect of income or capital

gains received within categories covered by section 478-488 of the Corporation Tax Act 2010 (CTA 2010) or section

256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively

charitable purposes.

The Institute receives no similar exemption in respect of Value Added Tax. Irrecoverable VAT on inputs is included

in the costs of such inputs. Any irrecoverable VAT allocated to fixed assets is included in their cost.

The Institute y is liable to Corporation Tax in the same way as any other commercial organisation.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Accounting Policies continued

For the year ended 31

st

July 2022

30

21. Reserves

Reserves are allocated between restricted and unrestricted reserves. Restricted endowment reserves include

balances which, through endowment to the Institute, are held as a permanently restricted fund as the Institute must

hold the fund to perpetuity.

Other restricted reserves include balances through which the donor has designated a specific purpose and therefore

the Institute is restricted in the use of these funds

.

22. Financial Instruments

LIPA only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities and

their measurement basis are as follows:

Financial assets trade and other debtors are basic financial instruments and are debt instruments measured at

amortised cost. Prepayments are not financial instruments.

Cash at bank is classified as a basic financial instrument and is measured at face value.

Financial liabilities trade creditors, accruals and other creditors are financial instruments, and are measured at

amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there

is an obligation to deliver services rather than cash or another financial instrument.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts

For the year ended 31

st

July 2022

31

1. Income 2022 2022 2021 2021

Consolidated Institute Consolidated Institute

1.1 Tuition Fees £ £ £ £

Full Time UK/EU

Undergraduate Fees

6,907,722

6,993,470

Full Time Overseas

Undergraduate Fees

2,783,201

2,197,859

Postgraduate and

foundation self-funded

fees

871,346

897,533

Audition and Other Fees 11,075

11,075

3,420

10,573,344

10,092,282

1.2 Funding Body Grants

OfS Recurrent Grants 394,196

394,196

443,798

OfS Capital Grant 294,500

294,500

74,174

OfS Hardship Funding 3,716

3,716

72,684

Research England 200,000

200,000

-

Kickstart 16,167

16,167

-

908,579

590,656

1.3 Project Income

LIPA 4-19 415,619

415,619

234,085

Other Projects 16,263

16,263

20,031

431,882

254,116

1.4 Other Income

Catering, Bar and Venue

Hire

246,610

74,538

Projects and

Performances

128,460

90,437

Service Level Agreement

Income

224,883

216,624

Sundry Income 310,861

310,861

121,225

121,226

910,814

502,824

1.5 Investment Income

Interest Receivable 6,999

6,999

5,726

6,999

5,726

1.6

Donations and

Endowments

New Endowments 2,000

2,000

-

Donations with

Restrictions

10,500

50,000

Unrestricted Donations 1,147

1,147

624

Donated Assets 12,232

12,232

-

25,879

50,624

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31

st

July 2022

32

1.7 Grant and Fee Income

The sources of grant and fee income included in notes 1.1 to 1.3 is as follows:

2. Staff Costs

2022 2022 2021 2021

Consolidated

Institute

Consolidated

Institute

Aggregate amounts for staff and

directors paid in respect of:

£ £ £ £

Wages and Salaries

6,626,845

6,236,133

Social Security Costs

557,578

532,874

Other Pension Costs

989,103

938,478

8,173,526

7,707,485

Emoluments of the Chief Executive

(2021 Founding Principal and Chief Executive):

2022

£

2021

£

Remuneration

138,167

203,312

Pension contributions 30,823

-

168,990

203,312

No other employees received remuneration more than £100,000.

The emoluments of the Principal and CEO are t the

operational structure operated by LIPA, the complexity of the role, the performance of the CEO and the rates of

pay of others in similar roles both locally and nationally. The Principal and CEO received a remuneration that

was 5.34 times the median FTE salary for other substantive staff at LIPA (2021: 5.97 times).

Key Management Personnel

Key management personnel are those persons having authority and responsibility for planning,

directing and

controlling the activities of the Institute. The team comprised four (2021: six)

individuals led by the Chief

Executive.

2022

£

2021

£

Remuneration of key management personnel, other

than the Chief Executive, including pension

contributions

386,135

540,829

2022 2022 2021 2021

Consolidated Institute Consolidated Institute

£ £ £ £

Grant income from the

OfS

692,412

590,656

Grant income from other

bodies

201,688

20,031

Fee income from non-

qualifying courses

1,312,614

1,135,038

Fee income for taught

awards

9,690,923

9,191,329

11,897,637

10,937,054

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31

st

July 2022

33

Average number of persons (including the Principal

and CEO) employed during the year was:

2022

number

2021

number

Administration

62

60

Teaching and Teaching Support

90

86

Catering, Bar, Conference and Venue

6

158 152

In addition, about 180 staff were employed on a part time hourly paid basis. Many of these were students or

part-time LIPA 4-19 staff. The full time equivalent of all the part - time hourly paid staff is 12 (2021: 12).

2022

2022 2021 2021

Consolidated

Institute

Consolidated

Institute

The aggregate amounts for staff and

directors can be split into the following

categories:

£ £ £ £

Teaching 4,665,767

4,665,767

4,403,514

Productions 492,005

492,005

456,283

Projects 190,166

190,166

152,723

Canteen, Bar and Venue 154,195

154,195

120,131

Information Systems and Technical

Support

545,359

520,182

Marketing and Student Recruitment 760,310

760,310

698,417

Facilities 483,067

483,067

443,495

Administration 882,657

882,657

912,740

8,173,526

7,707,485

2022

No.

2021

No.

Number of directors accruing

retirement benefits 1

1

Directors, other than reimbursement of expenses. In the year to 31

st

July 2022 the total expenses paid to Council

Directors was:

2022

2021

£

Reimbursement of travel and accommodation

expenses to 2 directors (2021: three directors).

623

89

3a. Analysis of Operating Expenditure by Activity

2022 2022 2021 2021

Consolidated

Institute Consolidated Institute

£ £ £ £

Teaching Related 429,915

429,915

545,700

Productions 292,925

292,925

249,293

Projects 148,711

148,711

40,588

Cafe, Bar and Venue 122,295

122,295

23,529

Information Services and Technical

Support

601,919

615,474

Marketing and Student Recruitment 419,651

419,651

205,989

Facilities 678,579

678,579

626,989

Administration 315,634

315,634

733,850

3,009,629

3,041,412

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31

st

July 2022

34

Operating Expenditure includes 2022

£

2021

£

Financial Statements

Audit

18,900

18,000

Other 1,260

1,200

15,844

19,016

Operating Lease Rentals

9,455

9,545

3b. Access and Participation

2022 2022

Consolidated

Institute

£ £

Total access activity investment

- Access (pre-16)

162,232

139,781

- Access (post-16)

87,017

81,519

- Access (adults and the community)

12,396

5,909

- Access (other)

-

Financial support

129,440

123,300

Research and evaluation

10,897

17,550

401,982

368,059

£246,809 of these costs are already included in the overall staff costs figures included in the financial statements, see

note 2. In addition, LIPA spent £85,372 in support for disabled students in the financial year to 31

st

July 2022.

The Access and Participation

Plan 2020-21 to 2024-25, which is located on LIPA's website. The differences between the planned spend as per the

Access and Participation Plan relate to changes in activity during the year, some linked to the COVID-19 pandemic,

which meant that activities had to be altered.

4. Interest Payable 2022

2022

2021

Consolidated

Institute

Consolidated

Institute

£ £ £ £

Interest on bank loan

2,601

19,397

Other finance costs

-

Total 2,601

2,601

19,397

5. Taxation

LIPA is a charitable company as stated in Accounting Policies note 20. There is no tax charge arising for the year

(2021: £nil) in respect of subsidiary undertakings.

6.

Intangible Assets (software)

Consolidated and Institute

Cost

Total

£

At 1

st

August 2021 439,639

Additions

Disposals -

At 31

st

July 2022 465,893

Depreciation

At 1

st

August 2021 195,965

Charge for the Year 67,914

Eliminated on Disposal -

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31

st

July 2022

35

At 31

st

July 2022 263,879

Net Book Value

At 31

st

July 2022 202,014

At 31

st

July 2021 243,674

7.

Tangible Fixed Assets

Consolidated and Institute

Freehold

Land and

Buildings

Fixtures,

Fittings and

Equipment

Art Works Total

£ £ £ £

Cost

At 1

st

August 2021 16,223,608

5,527,684

197,092

21,948,384

Additions 82,452

705,554

-

788,006

Donated Assets -

12,232

-

12,232

Write back of liability (603,733)

-

(603,733)

Disposals -

(466,156)

-

(466,156)

At 31

st

July 2022 15,702,327

5,779,314

197,092

21,678,733

Depreciation

At 1

st

August 2021 1,428,376

3,755,466

197,092

5,380,934

Charge for the Year 292,397

451,495

-

743,892

Disposals -

(466,156)

-

(466,156)

At 31

st

July 2022 1,720,773

3,740,805

197,092

5,658,670

Net Book Value

At 31

st

July 2022 13,981,554

2,038,509

-

16,020,063

At 31

st

July 2021 14,795,232

1,772,218

-

16,567,450

Freehold Land and Buildings

The freehold buildings relates to the property at 68 Hope Street, Liverpool.

Freehold land includes land amounting to £1,000,000 which is not depreciated.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31

st

July 2022

36

8. Assets held in Trust

Consolidated and Institute

Cost

Total

£

At 1

st

August 2021

2,050,772

Additions

-

At 31

st

July 2022

2,050,772

Depreciation

At 1

st

August 2021

624,941

Charge for the Year

134,184

At 31

st

July 2022

759,125

Net Book Value

At 31

st

July 2022

1,291,647

At 31

st

July 2021

1,425,831

The assets held in trust represent the cost of capital works on the Liverpool Institute building.

Interest in Liverpool Institute building

LIPA has no ownership rights to the Liverpool Institute building. It occupies the building in its role as sole corporate

trustee of The Liverpool Institute Charity. LIPA was appointed corporate trustee of The Liverpool Institute Charity

on 8

th

October 1993. The Liverpool Institute Charity has no assets, other than the Liverpool Institute building, and

no liabilities. It generates no income and incurs no expenditure. LIPA may continue in its role as corporate trustee of

The Liverpool Institute Charity, and thereby occupy the Liverpool Institute building, provided it continues to use the

building for educational purposes.

In the event that LIPA no longer operates the trusteeship of The Liverpool Institute Charity, and thereby loses its

rights to occupy the Liverpool Institute building, trusteeship would revert to the former trustee, Liverpool City

Council; failing acceptance by them of the trusteeship the Charity Commission would seek an alternative trustee.

may only be used for educational purposes, the directors do not consider that any market value can be attributed to

it and that a valuation would not be in the best interests of the Institute.

9. Non-Current Investments

Subsidiary

Companies

Chattels and

Memorabilia

Total

Consolidated

£ £ £

At 1

st

August 2021

-

2,377

Additions

-

Disposals

-

Impairment

-

At 31

st

July 2022

-

2,377

Institute

£ £ £

At 1

st

August 2021

100

2,377

2,477

Additions

-

Disposals

-

Impairment

-

At 31

st

July 2022

100

2,377

2,477

Please refer to note 24 for additional details relating to the investment in the subsidiary company.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31

st

July 2022

37

10. Stock 2022 2021

Consolidated and Institute

£

Canteen and bar stocks 9,287

4,000

11. Trade and Other Receivables At 31

st

July 2022 At 31

st

July 2021

Amounts due within one year Consolidated

£

Institute

£

Consolidated

£

Institute

£

Tuition and Other Fees

41,099

35,862

Other Debtors

184,220

166,378

Amount owed by subsidiary

undertakings

-

Amounts owed by related

undertakings

882

7,755

Prepayments and Accrued Income 341,448

341,448

308,434

567,649

518,429

12. Cash and Cash Equivalents At 31

st

July 2022 At 31

st

July 2021

Consolidated Institute Consolidated Institute

£

£ £ £

Cash and Cash Equivalents 4,061,464

4,061,464

3,436,161

13.

Creditors

: Amounts falling due within

one year

At 31

st

July 2022

At 31

st

July 2021

Consolidated Institute Consolidated Institute

£ £ £ £

Bank loan

-

395,682

Trade Creditors

470,098

772,662

Taxation and Social Security

204,410

375,568

Accruals

287,126

367,948

Other Creditors and Deferred Income 1,397,426

1,397,526

1,216,372

1,216,472

2,359,060

2,359,160

3,128,232

3,128,332

Deferred

Income

Included in other creditors and deferred income are the following items of income which have been deferred until specific

performance related conditions have been met.

At 31

st

July 2022

At 31

st

July 2021

Consolidated

Institute Consolidated

Institute

£

£ £ £

Donations -

-

4,000

Grants 3,072

3,072

-

3,072

4,000

Bank Loan

Within the creditors falling due within one year for the year ended 31 July 2021, the bank loan refers to a secured

loan

originally taken out with RBS but then transferred to Santander plc. Security on the loan was

in the form of a first legal

. The loan transferred to Santander plc was for an amount of £791,364

repayable over a

remaining term of circa 18 months, at a rate of 3% plus base rate. The final repayment was made in January 2022.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31

st

July 2022

38

14

.

Endowments Restricted

Permanent

Endowments

Unrestricted

Permanent

Endowments

Expendable

Endowments

2022

2021

Total Total

£ £ £ £ £

Balances at 1

st

August

2021

Capital -

-

235,372

238,689

Accumulated Income -

-

31,637

30,965

-

267,009

269,654

New Endowments - -

2,000

-

Investment Income -

-

1,022

809

Expenditure -

-

(5,220)

(3,454)

At 31

st

July 2022 -

-

264,811

267,009

Represented by:

Capital -

-

232,460

235,372

Accumulated Income -

-

32,351

31,637

-

264,811

267,009

Analysis by type of

purpose

Bursary and Prize Funds -

-

60,918

62,909

Culture -

-

181,995

181,270

Graduate Business

Support

-

21,898

22,830

-

264,811

267,009

Analysis by Asset

Cash -

-

264,811

267,009

15

.

Restricted Reserves

Reserves with restrictions are as follows:

Capital

Grants

Other

Restricted

Funds and

Donations

2022

2021

Total Total

£ £ £ £

Balances at 1

st

August 2021 -

-

432,120

New Grants -

-

New Donations -

10,500

50,000

Investment Income -

-

Capital Grant Utilised -

-

Expenditure -

(10,500)

(482,120)

At 31

st

July 2022 -

-

Analysis of Other Restricted Funds and

Donations by type of purpose

2022 2021

Total Total

£ £

Buildings

-

Other

-

Other restricted funds include donations and restricted expendable endowments.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31

st

July 2022

39

16

.

Reconciliation of Cash Flow to Statement of Financial Position

Consolidated

At 1

st

August

2021

Cash Flows

At 31

st

July

2022

£ £ £

Cash at Bank and on Deposit

3,436,161

625,303

4,061,464

Other

-

3,436,161

625,303

4,061,464

17. Consolidated reconciliation of net credit

31 July 2022

£

Net credit at 1 August 2021 3,040,479

Movement in cash and cash equivalents 1,020,985

Other non-cash changes

-

Net credit at 31 July 2022 4,061,464

Change in net credit 1,020,985

Analysis of net credit: 31 July 2022

£

31 July 2021

£

Cash and cash equivalents 4,061,464

3,436,161

Borrowings: amounts falling due within one year

Secured loans

-

(395,682)

Borrowings: amounts falling after more than one year

Secured loans

-

Net credit

4,061,464

3,040,479

18. Capital and Other Commitments

Consolidated and Institute at 31

st

July 2022

£

2021

£

Commitments contracted for refurbishment of estates 330,066

-

Other capital additions

88,997

-

419,063

-

Capital commitments are funded from cash reserves.

19. Contingent Assets and Liabilities

Consolidated and Institute at 31

st

July 2022

£

2021

£

Guarantees -

-

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31

st

July 2022

40

20.

Lease Obligations

Consolidated and Institute

Total Rentals payable under Operating Leases

31

st

July 2022 31

st

July

2021

Plant and

Machinery

Other

Leases

Total Total

£ £ £ £

Payable during the year 9,455

-

9,455

9,545

Future minimum Lease payments due

Not later than one year 9,455

-

9,455

Later than 1 year and not later than 5 years

-

9,455

18,910

-

18,910

28,455

21. Financial assets and liabilities

31

st

July 2022 31

st

July 2021

Consolidated

Institute Consolidated

Institute

£ £ £ £

Financial assets measured at amortised cost 4,287,665

4,287,665

3,646,156

Financial liabilities measured at amortised

cost

1,418,907

1,418,807

2,187,397

22. Events after the Reporting Period

There were no significant events after the after the reporting period that impact the results for the year or the balance

sheet at 31

st

July 2022.

23. Subsidiary Undertaking

During the year ended 31

st

July 2022, LIPA had one wholly owned subsidiary, LIPA Enterprises Limited (which is

registered at the same address as LIPA).

LIPA Enterprises Limited is registered in England and Wales and is dormant, resulting in the cost of investment of

£100 having been written off. The principal activity of the company was the provision of training courses.

24. Connected Charitable Institutions

24.1 The LIPA Primary School

Salaries and third-party costs paid by LIPA on behalf of The LIPA Primary School were recharged directly to it

without uplift. In the year to 31

st

July 2022, LIPA charged The LIPA Primary School £70,917 for support services

(2021: £95,279). Further to this, there were other intercompany sales of £3,842 in relation to cleaning and postal

charges.

At 31

st

July 2022 The LIPA Primary School owed LIPA £nil (2021: £2,642).

24.2 The LIPA Sixth Form College (from 1

st

May 2022, The LIPA Multi Academy Trust)

Salaries and third-party costs paid by LIPA on behalf of The LIPA Sixth Form College were recharged directly to it

without uplift. In the year to 31st July 2022, LIPA charged The LIPA Sixth Form College (and from 1

st

May 2022,

the LIPA Multi Academy Trust) £153,966 for support services (2021: £121,345). Further to this, there were other

intercompany sales of £406 in relation to cleaning and postal services.

At 31

st

July 2022 The LIPA Multi Academy Trust owed LIPA £882 (2021: £5.114).

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31

st

July 2022

41

24.3 Transfer of Undertakings (Protection of Employment) (TUPE) Procedure

On 1 April 2022 the staff members employed by LIPA on behalf of the LIPA Primary School and LIPA Sixth Form

College transferred their employment status to the LIPA Sixth Form College via a TUPE transfer. All future rights

and liabilities passed to the LIPA Sixth Form College on that date.

25. Related Party Transactions

During the year, LIPA undertook the following transactions with related parties defined by Financial Reporting

Standard 102.

25.1 The Liverpool Institute Charity

LIPA is the sole corporate trustee of The Liverpool Institute Charity. LIPA occupies the Liverpool Institute Building,

held in The Liverpool Institute Charity, under terms at £nil rent.

25.2 LIPA Enterprises Limited

Transactions with the subsidiary, LIPA Enterprises Limited, have not been disclosed under the exemption allowed

in FRS102 Section 33.

25.3 LIPA members

M Featherstone-Witty, the Founding Principal and former CEO, is a Member of the company. In the year he received

remuneration of £4,871. His remuneration for the previous year is disclosed in note 2. Mr J Dimmock, a Member

of the company, received remuneration of £2,777 for services provided to the company in the year (2021: £24,255).

K. Dimmock, a close family member of J. Dimmock is also employed by the company. R Grey, another Member of

the company, is a consultant with Swan Turton LLP, who received payments of £6,837 in relation to professional

services (2021: £8,912). J Thornton, who is a paid employee of the company and is also a Member received

remuneration of £58,278 during the year (2021: £57,418).

In addition to this, no other travel expenses were paid (2021: £89 in relation to one individual).

26. Pension Commitments

26.1 Defined Benefit Scheme

As stated in Accounting Policies note 6,

Scheme (TPS). The scheme is sector wide and the Department Education has provided the information below in

order to meet the requirements of Financial Reporting Standard 102 Section 28.

The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme,

governed by the Teachers' Pen

2014 (as amended). These regulations apply to teachers in schools and other educational establishments, including

academies, in England and Wales that are maintained by local authorities. In addition, teachers in many

independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher

education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from

1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a

change of contract. Teachers and lecturers are able to opt out of the TPS.

The Teachers' Pension Budgeting and Valuation Account

Although members may be employed by various bodies, their retirement and other pension benefits are set out in

regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by

public funds provided by Par

contributions from members, along with those made by employers, are credited to the Exchequer under

arrangements governed by the above Acts.

The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and

Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April

2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in

the Account is invested in notional investments that produce that real rate of return.

Valuation of the Teachers' Pension Scheme

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31

st

July 2022

42

As a result of the latest scheme valuation employer contributions were increased in September 2019 from a rate of

16.4% to 23.6%. Employers also pay a charge equivalent to 0.08% of pensionable salary costs to cover

administration expenses.

The next valuation is expected to take effect in 2023.

A copy of the latest valuation report can be found by following this link to the .

Scheme Changes

In December 2018, the Court of Appeal held that transitional protection provisions contained in the reformed

judicial and firefighter pension schemes, introduced as part of public service pension reforms in 2015, gave rise to

direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June 2019,

referred the case to an Employment Tribunal to determine a remedy which will need to be offered to those members

of the two schemes who were subject of the age discrimination.

Since then, claims have also been lodged against the main public service schemes including the TPS. The

Department has conceded those in line with the rest of the government. In July 2020 HM Treasury launched a 12-

week public consultation which will provide evidence to support the delivery of an appropriate remedy for the

affected schemes, including TPS.

A final remedy will be determined once the results of the consultation are established.

In December 2019, a further legal challenge was made against the TPS relating to an identified equalities issue

whereby male survivors of opposite-sex marriages and civil partnerships are treated less favourably than survivors

in same-sex marriages and civil partnerships. The Secretary of State for Education agreed not to defend the case.

In June 2020, the Employment Tribunal recorded its findings in respect of the claimant. DfE is currently working

to establish what changes are necessary to address this discrimination.

Any impact of these events will be taken into account when the next scheme valuation is implemented. This is

scheduled to be implemented in April 2023, based on April 2020 data.

The pension costs paid to TPS in the year amounted to £657,177 (2021: £607,209) and the total amount outstanding

as at 31

st

July 2022 was £71,385 (2021: £107,181).

26.2 Defined Contribution Scheme

331,926

(2021: £331,269). The amount outstanding at 31

st

July 2022 was £nil (2021: £nil).

The member and the company make contributions to the LIPA Staff Pension Schemes. Currently contribution rates

for the main scheme are 7.4% to 11.7% of pensionable salary by the member and 16.48% of pensionable salary by

enrolment programme. Under this scheme both the member and the company make contributions of 3% of

pensionable salary. Employees may elect to join neither the main nor the default scheme.

27. Legal Form

LIPA is a company limited by guarantee in the United Kingdom, with registration number 02511501. The company

is a registered charity, number 1001565. The registered office is: Mount Street, Liverpool, L1 9HF.