Luton Community Arts Trust Limited - Charities report - 20.2

LUTON COMMUNITY ARTS TRUST LIMITED - Company Information

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REGISTERED COMPANY NUMBER: 01915997 (England and Wales)

REGISTERED CHARITY NUMBER: 298437

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

FOR

LUTON COMMUNITY ARTS TRUST LIMITED

Page

Reference and Administrative Details

Report of the Trustees

Independent Examiner's Report

Statement of Financial Activities

Balance Sheet

Notes to the Financial Statements

TRUSTEES

Mr G K Collin Trustee

Mr R Batson Trustee

Mr O Cligan Trustee

Ms R Davis Trustee

Mr M S Wooldridge Trustee

COMPANY SECRETARY

Mr P Jolly

REGISTERED OFFICE

260 - 270

Butterfield

Great Marlings

Luton

Bedfordshire

LU2 8DL

REGISTERED COMPANY

NUMBER

01915997 (England and Wales)

REGISTERED CHARITY

NUMBER

298437

INDEPENDENT EXAMINER

FKCA Limited

260 - 270 Butterfield

Great Marlings

Luton

Bedfordshire

LU2 8DL

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).

Information required under company law to be disclosed in the report of the Directors is contained within the below report of the Trustees.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Trusts major core activity, SNAP, aims to provide free arts activities, social training and facilities for young people who are excluded from mainstream activities due to the following; age, gender, lifestyle, ethnicity, socio-economic status, lack of educational achievement, homelessness etc. In undertaking this activity we introduce young people to arts experiences, support independent cultural expression, build skills and motivate personal development through the production of peer-aimed messages. The project also supports participants' enquiries in relation to education, training and employment opportunities and health (including sexual health, diet, access to GPs and substance misuse). To achieve its objectives the Trust continued to provide a series of in-house projects. Additional to the in-house projects the trust also increased the level of out-reach projects. The Trust also works closely with other agencies to offer mutual support, practical project input and shared resources. Activities included facilitating unique projects within a professional photographic, visual arts and studio environment. Other diversionary educational activity was targeted at the most excluded young people through a range of creative projects that developed life and social skills by using photography, digital imaging, set and costume design, make up, poetry, drama, video and music.

Project themes developed with the participants via group work and individual consultation including Drug & Alcohol Awareness, Positive Aspirations, Identity, the Law, Homelessness, Healthy Eating, & Crime. During the year, the Trust further maintained projects for socially excluded young people and managed the activities of its trading arm, 33 RPM Limited.

Significant activities

The Trust continued to provide SNAP projects, however, priority was given to developing outreach activities and continuing the work started in 2019.

Notable projects undertaken during 2019/20 included the following:

The SNAP Project:

April/May/June 2019

During this period we continued working alongside staff at Marsh House to provide aspirational projects for young people.

Using our High Town premises weekly as a casual Drop-in Centre for advice and support and for 'signposting' to other agencies.

Pre - planning detailed project activity alongside Enable Project staff.

Provided workshop activities for their client group.

Worked with artists to plan activity for High Town Festival.

July/August/September 2019

Over this entire period staff prepared additional work with the Enable Project, due to the difficult nature of the client group, we became aware that this project needed to be rolled back to ensure that the Trust was offering the right kinds of activity to provide a comprehensive service to support that organization.

Provided support to an artist, working on the High Town Festival, and worked with a client group - engaging with over 80 persons of various ages. In addition, we supported her initiatives to prepare a Young Persons Graphic Novel Project.

During the summer the shop was open to YP drop-in for advice regarding current and planned activities and also general advice, guidance and support. Sign-posting where necessary to other agencies.

October/November/December 2019

Opened discussions with Little Red Studios Luton to develop a future NEET dance project alongside LRS's current customer base.

Preparation of activity was undertaken by staff, to develop an arts project called "Hidden Disabilities" - a project involving clients with mental and learning difficulties as well as those with ME, MS, Dyslexia etc.

New SNAP sessions were held at Marsh House developing performance-based work.

January/February/March 2020

The funded work of the SNAP project was rolled back during late February and March due to concerns in respect of COVID 19. We were also informed during January that funding support from LBC via the Airport Fund would cease.

On the 9th March the Director and Secretary agreed to suspend operations from the Trusts premises and administrative work was undertaken from home.

Other Activity

The work of the trading arm, 33 RPM, was maintained and, although there was a significant reduction in physical sales outlets, more activity was being generated online.

The Trust failed to get funding for its application to the Heritage Lottery Fund for creating an archive of the Trust's historical output. However, it was agreed to reapply.

ACHIEVEMENT AND PERFORMANCE

During the year, the Trust maintained research into alternative sources of funding to enable work to be maintained and developed. To protect this policy, the Trust maintains a Reserves Policy to both enable provision of a year's full programme of activity and to support comprehensive ongoing fund -raising initiatives.

This policy has attracted an increase of one-off project funding, whilst some core revenue can be used for maintaining the costs of housing, insurance and other essential utilities.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general on guidance public benefit when setting their policies for the year in line with the charity's aims and objectives.

The Trustees are satisfied that the supported projects provide clear public benefit, and that activities are available to all young people within the local community.

FINANCIAL REVIEW

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between nine and twelve month's expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The trustees have considered the future of the charity in conjunction with the current economic climate and although satisfied that the charity currently has sufficient resources to continue activities, consider it prudent to set aside a reserve or 'contingency fund' sufficient to enable the charity to wind down effectively should a future reduction in funding leave it unsustainable to continue. The amount required is currently estimated at £30,747 and is currently being held in the contingency fund reserve.

The Trustees are fairly satisfied with the position of the charity at the balance sheet date. The results for the year set out on page 7, shows net income of £44,341 on unrestricted funds and expenditure of £36,942 on restricted funds leaving funds of £102,477 and Nil respectively.

Going concern

The trustees have considered the implications of potential cuts to funding and are satisfied that the retained reserves will be sufficient to support the charity in the event of a reduction in the incoming resources until alternative funding is available. As such the going concern basis has been adopted and the Trustees are satisfied that the charity will continue providing services for at least 12 months.

There are no material uncertainties about the Charity's ability to continue as a going concern.

In view of the Coronavirus (COVID 19) pandemic and its impact on the Charity, the Trustees have considered the financial health of the Charity. With this in mind the Trustees believe that the Charity at the date of signing, will continue as a going concern for the foreseeable future.

FUTURE PLANS

The Trust continues to monitor the impact of current Government reductions of funding on the Voluntary Sector.

Given the continuing impact on local authority funding, the Trust will maintain exploration of new funding streams by way of developing further one off project activity.

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 organisation is a charitable company limited by guarantee, incorporation on 22 May 1985 and registered as a charity on 1 February 1978. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Recruitment and appointment of new trustees

Trustees are appointed by the Council of Management (COM) by vote at a yearly AGM of the Trust, as laid out within the Trust's Memorandum and Articles. If new Trustees are required during the year they are co-opted onto the COM and their appointment ratified by an AGM.

Organisational structure

The Trust is a company limited by guarantee and is governed by its Memorandum of Association.

The Trust is governed by a Council of Management meeting 4 to 6 times yearly. The COM has a responsibility to govern the activities of the Trust. None of the Trustees have any beneficial interest in the Company.

The Charity employs 2 persons and has 4 voluntary workers to assist in carrying out the Trust's objectives.

Induction and training of new trustees

All new appointments to the COM are required to have a full understanding of the work of the Charity and have knowledge of the day to day project activity. All Trustees are kept up to date with all training initiatives, both locally and nationally, that relate to their responsibilities as Trustees of a charitable organisation.

Related parties

The charity considers its related parties to be the trustees and its subsidiary company, 33 RPM Limited.

Approved by order of the board of trustees on 13 January 2021 and signed on its behalf by:

Mr P Jolly - Secretary

Independent examiner's report to the trustees of Luton Community Arts Trust Limited ('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

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.

Miss Tara Aldwin ACA

FKCA Limited

260 - 270 Butterfield

Great Marlings

Luton

Bedfordshire

LU2 8DL

26 January 2021

2020

2019

Unrestricted

Restricted

Total

funds

Notes

INCOME AND ENDOWMENTS FROM

Donations and legacies

55,000

Investment income

Other income

221

Total

55,257

55,037

EXPENDITURE ON

Charitable activities

10,916

36,942

47,858

49,298

NET INCOME/(EXPENDITURE)

44,341

(36,942

)

7,399

5,739

Transfers between funds

(17,590

)

17,590

Net movement in funds

26,751

(19,352

)

7,399

5,739

RECONCILIATION OF FUNDS

Total funds brought forward

75,726

19,352

95,078

89,339

TOTAL FUNDS CARRIED FORWARD

102,477

95,078

2020

2019

Unrestricted

Restricted

Total

funds

Notes

FIXED ASSETS

Tangible assets

2,389

2,877

Investments

100

2,389

2,489

2,977

CURRENT ASSETS

Debtors

3,172

328

3,500

2,523

Cash at bank and in hand

99,313

1,413

100,726

92,753

102,485

1,741

104,226

95,276

CREDITORS

Amounts falling due within one year

(108

)

(4,130

)

(4,238

)

(3,175

)

NET CURRENT ASSETS

102,377

(2,389

)

99,988

92,101

TOTAL ASSETS LESS CURRENT

LIABILITIES

102,477

95,078

NET ASSETS

102,477

95,078

FUNDS

Unrestricted funds

102,477

75,726

Restricted funds

19,352

TOTAL FUNDS

102,477

95,078

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 and delivered in accordance with the special provisions applicable to small charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 13 January 2021 and were signed on its behalf by:

Mr G K Collin - 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, with the exception of investments which are included at market value.

The presentation currency of the financial statements is the Pound Sterling (£).

Luton Community Arts Trust Limited meets the definition of a public benefit entity under FRS 102.

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.

Charitable activities

Charitable expenditure comprises of those costs incurred by the charity in the delivery of its activities and services for the beneficiaries. It includes both costs that can be allocated directly to such activities and those of an indirect nature to support them.

Governance costs

Governance costs comprise of all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.

Allocation of overhead and support costs

Costs are allocated where possible directly to the activity to which they relate, or on a basis consistent with the use of resources.

Tangible fixed assets

All assets costing more than £100 are capitalised and all assets are valued at historic cost.

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

Fixtures, fittings and equipment 10% to 33.3% 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Investments

Investment in the subsidiary is included in the balance sheet at cost. The company and its subsidiary comprise a small group. The company has taken advantage of the exemption provided in section 398 of the Companies Act 2006 not to prepare group financial statements and accordingly these financial statements present information about the company as a single undertaking.

2.	INVESTMENT INCOME

2020

2019

Deposit account interest

3.	OTHER INCOME

Other income is made up of the charity allowing smaller businesses to run workshops from their premises. For the year ended 31 March 2020, this totalled £221 (2019: NIL).

4.	CHARITABLE ACTIVITIES AND SUPPORT COSTS

Direct

Charitable

Expenditure

Support

Total

2020

Total

2019

Staff costs

24,948

8,316

33,264

Depreciation

763

782

Other costs

11,231

2,600

13,831

15,252

36,942

10,916

47,858

49,298

5.	SUPPORT COSTS

Governance

Management

costs

Totals

Charitable activities

8,316

2,600

10,916

Support costs, included in the above, are as follows:

2020

2019

Charitable

Total

activities

Wages

8,316

Independent examiners remuneration

1,000

Independent examiners remuneration for non

assurance work

1,600

1,650

10,916

10,966

6.	NET INCOME/(EXPENDITURE)

Net resources are stated after charging/(crediting):

2020

2019

Independent Examiner's remuneration

1,000

Accountancy

1,600

1,650

Depreciation

763

782

7.	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.

8.	STAFF COSTS

2020

2019

Salaries and wages

33,264

The average number of employees during the year was 2 (2019: 2).

The charity also had 4 voluntary workers (2019: 4).

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

9.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

COST

At 1 April 2019

100,977

Additions

275

At 31 March 2020

101,252

DEPRECIATION

At 1 April 2019

98,100

Charge for year

763

At 31 March 2020

98,863

NET BOOK VALUE

At 31 March 2020

2,389

At 31 March 2019

2,877

10.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

MARKET VALUE

At 1 April 2019 and 31 March 2020

100

NET BOOK VALUE

At 31 March 2020

100

At 31 March 2019

100

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

33 RPM Limited

Registered office: 260 - 270 Butterfield, Great Marlings, Luton, LU2 8DL

Nature of business: Trading subsidiary of the Charity

Class of share:

holding

Ordinary

100

2020

2019

Aggregate capital and reserves

14,456

14,960

(Loss)/profit for the year

(504

)

389

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

Amounts owed by group undertakings

2,456

1,859

VAT

716

Prepayments

328

567

3,500

2,523

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

Trade creditors

129

250

Other creditors

559

425

Accruals and deferred income

3,550

2,500

4,238

3,175

13.	MOVEMENT IN FUNDS

Net

Transfers

movement

between

At 1.4.19

in funds

funds

31.3.20

Unrestricted funds

General fund

44,979

44,341

(17,590

)

71,730

Contingency fund

30,747

75,726

44,341

(17,590

)

102,477

Restricted funds

SNAP

19,352

(36,942

)

17,590

TOTAL FUNDS

95,078

7,399

102,477

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

Incoming

Resources

Movement

resources

expended

in funds

Unrestricted funds

General fund

55,257

(10,916

)

44,341

Restricted funds

SNAP

(36,942

)

(36,942

)

TOTAL FUNDS

55,257

(47,858

)

7,399

Comparatives for movement in funds

Net

movement

At 1.4.18

in funds

31.3.19

Unrestricted funds

General fund

908

44,071

44,979

Contingency fund

30,747

31,655

44,071

75,726

Restricted funds

SNAP

57,684

(38,332

)

19,352

TOTAL FUNDS

89,339

5,739

95,078

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

Incoming

Resources

Movement

resources

expended

in funds

Unrestricted funds

General fund

55,037

(10,966

)

44,071

Restricted funds

SNAP

(38,332

)

(38,332

)

TOTAL FUNDS

55,037

(49,298

)

5,739

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

Net

Transfers

movement

between

At 1.4.18

in funds

funds

31.3.20

Unrestricted funds

General fund

908

88,412

(17,590

)

71,730

Contingency fund

30,747

31,655

88,412

(17,590

)

102,477

Restricted funds

SNAP

57,684

(75,274

)

17,590

TOTAL FUNDS

89,339

13,138

102,477

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

110,294

(21,882

)

88,412

Restricted funds

SNAP

(75,274

)

(75,274

)

TOTAL FUNDS

110,294

(97,156

)

13,138

The restricted funds are relating to the Social Needs Awareness Project (SNAP).

The unrestricted funds are available for charitable activities at the Trustees discretion, in accordance with the objects of the charity.

The contingency fund is intended to build up a reserve sufficient to enable the charity to wind down effectively should a future reduction in funding leave it unsustainable to continue to operate.

Transfers between funds

During the year ended 31 March 2020, £17,590 (2019: Nil) was transferred from the general fund to the SNAP restricted fund to cover for the surplus of expenditure in the period.

14.	RELATED PARTY DISCLOSURES

At the year end the charity was owed £2,456 from 33 RPM Limited (2019: £1,859), a wholly owned subsidiary. There is no formal repayment plan or any interest accruing on the outstanding balance.