Castle Park Arts Centre - Charities report - 20.2

REGISTERED COMPANY NUMBER: 01588845 (England and Wales)

REGISTERED CHARITY NUMBER: 512019

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 March 2020

for

Castle Park Arts Centre

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Notes to the Financial Statements

9

to

14

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with

the financial statements of the charity for the year ended 31 March 2020. The trustees have adopted the provisions of

Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their

accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)

(effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The mission statement of Castle Park Arts Centre is;

To stimulate interest, knowledge and understanding of the arts in their broadest sense. It aims to improve the perception,

awareness and enjoyment of the Arts regionally, locally and especially in young people.

Consistent with this statement the Centre has the following vision:

To be an independent, self-funding "people place" offering a wide variety of artistic activities.

Building on this vision, our aims and objectives centre on using our building, with its rich history and beautiful setting,

to provide galleries, places and spaces for the community to gather socially, participate in arts-based activities and to be

excited and inspired by art works created by emerging and established artists.

We want the Centre to become a cultural hub for the professional arts community; arts practitioners running workshops

across the art forms; participants who learn new skills and make new connections at the rich variety of events and

courses offered; members of the public of all ages who visit the gallery, attend functions, visit the arts-based retail

outlets or socialise in the café.

To realise these ambitions, it is our primary task to maintain the building in good condition, to provide a safe space for

all these activities to take place and to invest, subject to the availability of funds, in those improvements that can enhance

the experience for artists, staff, volunteers and visitors.

Public benefit

The trustees have complied with the duty in Section 4 of the 2006 Act to have due regard to public benefit guidance

published by the Charity Commission.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The annual Open Arts Exhibition was particularly successful in terms of the high number and quality of entries. The

Open provides a competitive spirit within the arts community for professionals and amateurs of every age and

experience, including donated prize money from a local business.

In addition to the Open, 28 other art exhibitions were held throughout the year. Every 6-weeks four art exhibitions run

concurrently in each of the galleries and public entry to the exhibitions is free. Galleries provide a quiet, restful place to

contemplate art.

All galleries were booked for exhibitions for the next 18 months but the Covid-19 crisis, which forced the country into

lockdown in the last week of March 2020, brought uncertainty to the ability to fulfil this demand.

Diverse music events continue to gain in popularity. The range of performances in the year included classical, blues,

folk, gypsy jazz, country and popular. Music Mondays are well supported by the local community with high monthly

attendances. A guitar masterclass was well received, and attendees came from across the country.

Workshop opportunities and art classes attracted a large number of participants and enhanced the reputation of the

Centre for artistic excellence. People learn new skills and make new connections at workshops across many art forms.

Arts bases retail sales within the building increased and offers members of the public a creative and rich choice of

handmade items.

Castle Park Arts Centre continues to be the cultural hub in Frodsham. It is currently home to over 50 groups and

associations and welcomes over 80,000 visitors each year. Central to the ethos of the Arts Centre is the value placed

upon being a safe, welcoming space for the well-being of the local community.

Helps is given to other charities in their fundraising activities by offering free rooms and a place to publicise their

events.

The courtyard, café and retail outlets continue to attract increasing numbers of visitors.

Steps have been taken to obtain professional surveys of all aspects of the building as a basis for an improved building

maintenance programme.

Investment policy and objectives

The Arts Centre's formally approved investment policy is to hold funds in a current bank account for dealing with day to

day transactions and to hold the reserves separately at the interest-bearing COIF Charity Investment Fund in the CPAC

Investment Account for safety and to maximise returns.

FINANCIAL REVIEW

Financial position

The Statement of Financial Activities for the year ended 31 March 2020 accompanies this report. This shows that whilst

income for the year reduced from £107,478 in 2019 to £86,692, expenditure also reduced from £103, 521 in 2019 to

£91,788 resulting in a loss of £5,096.

Reserves policy

In line with the Charity Commission's expectations, the trustees reviewed their reserves policy and agreed on a realistic,

achievable target of maintaining a reserve of £25,000 to cover unforeseen expenditure. The trustees will review this

reserves policy in line with the accounting information presented for the 2019-20 financial year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by

guarantee, as defined by the Companies Act 2006.

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by

guarantee, as defined by the Companies Act 2006. The management of the charity is the responsibility of the trustees,

who are listed in this report.

Organisational structure

The Centre is run by a Board of Trustees in line with its approved Articles of Association.

Day to day operations are controlled by the Centre Manager, who is appointed by and accountable to the Board. The

Centre Manager is supported by two caretakers and a cleaner, who are all part time paid contractors. Their hours of

work are at the discretion of the Centre Manager.

The Centre Manager is also supported by a rota of volunteers who attend daily to welcome visitors to the Centre and

report any immediate issues for resolution. The volunteers are a key element in ensuring the smooth operation of the

Centre.

The Board of Trustees provides the necessary direction to the Centre Manager via sub-committees that comprise a mix

of Trustees and volunteers with relevant experience.

The sub-committees cover the following areas:

- Art Exhibitions

- Events

- Finance

- Communications

There are currently 6 trustees.

Risk management

Trustees of Castle Park Arts Centre have a duty to identify, review and assess the risks the charity is exposed to ensure

appropriate controls are in place to provide reasonable assurance against fraud and error and to plan for the management

of those risks. During the year a comprehensive risk assessment was undertaken, and risk register produced, including a

financial management framework.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

01588845 (England and Wales)

Registered Charity number

512019

Registered office

Castle Park Arts Centre

Off Fountain Lane

Frodsham

Cheshire

WA6 6SE

Trustees

Dr H A Hoather

T F Birkenhead (resigned 18.10.19)

P Vickery

Mrs S Burkey

P Verinder

J G Whitaker (resigned 29.1.20)

Mrs J Gregory

R G Meadows

Independent Examiner

KPD Business Services Limited

The Old Shippon

Bradley

Frodsham

Cheshire

WA6 7EP

Approved by order of the board of trustees on 16 July 2020 and signed on its behalf by:

P Vickery - Trustee

Independent examiner's report to the trustees of Castle Park Arts Centre ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for

the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act

and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried

out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the

Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the

examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should

be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Mrs Kathryn Davies

BFP FCA DChA

KPD Business Services Limited

The Old Shippon

Bradley

Frodsham

Cheshire

WA6 7EP

16 July 2020

2020

2019

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

4,550

-

4,550

17,353

Other trading activities

2

82,067

-

82,067

90,027

Investment income

3

75

-

75

98

Total

86,692

-

86,692

107,478

EXPENDITURE ON

Charitable activities

Activity

91,788

-

91,788

103,521

NET INCOME/(EXPENDITURE)

(5,096

)

-

(5,096

)

3,957

Transfers between funds

11

15,715

(15,715

)

-

-

Net movement in funds

10,619

(15,715

)

(5,096

)

3,957

RECONCILIATION OF FUNDS

Total funds brought forward

178,111

15,715

193,826

189,869

TOTAL FUNDS CARRIED FORWARD

188,730

-

188,730

193,826

2020

2019

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

8

155,359

-

155,359

144,832

CURRENT ASSETS

Debtors

9

2,715

-

2,715

3,620

Cash at bank and in hand

32,311

-

32,311

49,333

35,026

-

35,026

52,953

CREDITORS

Amounts falling due within one year

10

(1,655

)

-

(1,655

)

(3,959

)

NET CURRENT ASSETS

33,371

-

33,371

48,994

TOTAL ASSETS LESS CURRENT LIABILITIES

188,730

-

188,730

193,826

NET ASSETS

188,730

-

188,730

193,826

FUNDS

11

Unrestricted funds

188,730

178,111

Restricted funds

-

15,715

TOTAL FUNDS

188,730

193,826

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 16 July 2020 and were signed on its behalf by:

P Vickery - Trustee

S Burkey - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been

prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement

of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial

Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)',

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost

convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it

is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the

charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and

the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has

been classified under headings that aggregate all cost related to the category. Where costs cannot be directly

attributed to particular headings they have been allocated to activities on a basis consistent with the use of

resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful

life.

Freehold property

-

2% on cost

Improvements to property

-

2% on cost

Plant and machinery

-

10% on reducing balance

Fixtures and fittings

-

10% on reducing balance

Computer equipment

-

25% on reducing balance

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions

arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable

company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2.	OTHER TRADING ACTIVITIES

2020

2019

£

£

Art Centre Activities

38,894

45,955

Room lettings

25,171

26,267

Craft workshop operations

18,002

17,805

82,067

90,027

3.	INVESTMENT INCOME

2020

2019

£

£

Investment income

75

98

4.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2020

2019

£

£

Depreciation - owned assets

4,667

4,477

5.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2020 nor for the year ended

31 March 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2020 nor for the year ended 31 March 2019.

6.	STAFF COSTS

The average monthly number of employees during the year was as follows:

2020

2019

Administration

1

-

Security

1

-

2

-

No employees received emoluments in excess of £60,000.

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

1,638

15,715

17,353

Other trading activities

90,027

-

90,027

Investment income

98

-

98

Total

91,763

15,715

107,478

EXPENDITURE ON

Charitable activities

Activity

103,521

-

103,521

NET INCOME/(EXPENDITURE)

(11,758

)

15,715

3,957

RECONCILIATION OF FUNDS

Total funds brought forward

189,869

-

189,869

TOTAL FUNDS CARRIED FORWARD

178,111

15,715

193,826

8.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

COST

At 1 April 2019

106,734

30,243

2,024

Additions

-

15,070

78

At 31 March 2020

106,734

45,313

2,102

DEPRECIATION

At 1 April 2019

4,269

1,209

1,023

Charge for year

2,135

906

108

At 31 March 2020

6,404

2,115

1,131

NET BOOK VALUE

At 31 March 2020

100,330

43,198

971

At 31 March 2019

102,465

29,034

1,001

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 April 2019

51,169

2,767

192,937

Additions

46

-

15,194

At 31 March 2020

51,215

2,767

208,131

DEPRECIATION

At 1 April 2019

39,995

1,609

48,105

Charge for year

1,122

396

4,667

At 31 March 2020

41,117

2,005

52,772

NET BOOK VALUE

At 31 March 2020

10,098

762

155,359

At 31 March 2019

11,174

1,158

144,832

9.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

-

2,538

Other debtors

650

-

VAT

2,065

1,082

2,715

3,620

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Social security and other taxes

-

198

Other creditors

755

2,236

Accrued expenses

900

1,525

1,655

3,959

11.	MOVEMENT IN FUNDS

Net

Transfers

movement

between

At

At 1.4.19

in funds

funds

31.3.20

£

£

£

£

Unrestricted funds

General fund

178,111

(5,096

)

15,715

188,730

Restricted funds

Lift Grant

15,715

-

(15,715

)

-

TOTAL FUNDS

193,826

(5,096

)

-

188,730

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

86,692

(91,788

)

(5,096

)

TOTAL FUNDS

86,692

(91,788

)

(5,096

)

Comparatives for movement in funds

Net

movement

At

At 1.4.18

in funds

31.3.19

£

£

£

Unrestricted funds

General fund

189,869

(11,758

)

178,111

Restricted funds

Lift Grant

-

15,715

15,715

TOTAL FUNDS

189,869

3,957

193,826

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

91,763

(103,521

)

(11,758

)

Restricted funds

Lift Grant

15,715

-

15,715

TOTAL FUNDS

107,478

(103,521

)

3,957

A current year 12 months and prior year 12 months combined position is as follows:

Net

Transfers

movement

between

At

At 1.4.18

in funds

funds

31.3.20

£

£

£

£

Unrestricted funds

General fund

189,869

(16,854

)

15,715

188,730

Restricted funds

Lift Grant

-

15,715

(15,715

)

-

TOTAL FUNDS

189,869

(1,139

)

-

188,730

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are

as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

178,455

(195,309

)

(16,854

)

Restricted funds

Lift Grant

15,715

-

15,715

TOTAL FUNDS

194,170

(195,309

)

(1,139

)

12.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2020.