THE_ELEMENTS_WORLD_THEATR - Accounts

The Trustees present their annual report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).

The Object of the Company shall be the advancement of education for the public benefit through the promotion of, and by encouraging participation in, the Arts.

The company seeks:

• To promote individual and collective creativity;

• To promote co-operation between artists of different cultural backgrounds, races and disciplines and the public;

• To present high quality productions and arts projects in support of the stated Object.

Owing to the effect of the COVID19 pandemic on cultural organisations in general there were no new artistic initiatives undertaken by the company during the year. In short the company continued on an essentially 'care and maintenance' basis which involved little more than maintaining its historic web presence.

Finally, as previously noted in the 2020 Directors Report, two projects flagged up by the Directors in their 2018 Annual Report, viz:

• Assembling an archive of papers and other materials on works created by Lee and the company for lodging in the National Library of Scotland

• Placing Lee’s creative output – her poetry, scripts of plays and papers on theatre - on the public record via some form of publication.

are still 'live' but have only progressed slowly thus far and did not result in any financial outlays during the year.

A small deficit of £565 arose during the year (2020: £506), leaving negative reserves of £245 carried forward at the year end (2020 : surplus reserves of £320).

There were no principal funding sources during the year.

Reserves and going concern policy

The Board has set a target to maintain its reserves to a level equivalent to three months running costs for the organisation.

Reserves at 31 December 2021 have decreased and there is now negative reserves of £245 (2020 : surplus reserves of £320). The directors remain confident that, with the company’s low underlying cost base, financial support from directors and continuing support from patrons, that the charity can continue for the foreseeable future.

Investment policy and performance

Under the Memorandum and Articles of Association, the charity has the power to invest any money that the company does not immediately require in any investments, securities or properties. As there are few funds for long-term investment the directors, having regard to the liquidity requirements of operating the charity and to the reserves policy, have operated a policy of keeping available funds in an interest bearing bank account.

Risk Management Policy

The annual strategic review and forward planning event considers the risks to which the charity is exposed and identifies what needs to be in place to manage these risks throughout the year. The risks faced by the company fall into two categories, internal and external.

Internal risks are minimised by the implementation of procedures for authorisation of transactions and activities and to ensure consistent quality of delivery for all operational aspects of the company.

External risks relate largely to the sustainability of the company. These risks are minimised by the development of a strategic plan, which will allow for the diversification of funding and activities.

Any variation from the business plan has an associated risk assessment that is presented to the board of directors.

Governing Document

The Elements World Theatre is a company limited by guarantee governed by its Memorandum and Articles of Association dated on 25 April 2005. It is registered as a charity with the Inland Revenue. The organisation is a charitable company limited by guarantee and has no share capital. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Recruitment and appointment of directors

The company has a Board of directors that are voted in from the membership and no person shall be admitted as a member of the company unless approved by the directors. The Board meets regularly to evaluate, monitor and plan the development of the organisation. Nominations to be a director are requested from the membership at the AGM. All directors must stand down at the AGM but are eligible for re-election. The nominations for election are put to the membership at the AGM and the full Board is thereby elected via an ordinary resolution. The number of directors must not be less than 3 but shall not be subject to any maximum, unless otherwise determined by a special resolution. In addition, the Board may appoint up to 4 Specialist Advisors in a non-voting capacity.

At their first meeting after the AGM the directors elect their office bearers for the coming year. The Board can appoint further directors at any time during the year. The Board discuss what skills are required when a position arises. A short list is created and prospective trustees are contacted. The Board also welcomes applications if they believe they would be a good addition to the charity.

On joining the Board trustees receive a pack containing information about the charity and their role. Support is offered by experienced Board members when needed.

Reference and Administrative Information

Charity number            SC022072

Company number            SC283766

Registered Office and        11 Learmonth Gardens

Operational address        Edinburgh

                EH4 1HB

Our Advisors                

Independent Examiner         Fiona Haro CA

Thomson Cooper Accountants

22 Stafford Street

Edinburgh

EH3 7BD

Bankers                 The Co-operative Bank p.l.c

P.O. Box 101

1 Balloon Street

Manchester

     M60 4EP

Directors and Trustees     Rodney Charles Stares (Secretary)

                 Michael Thomas Borland

Ana Isabel Cabrera Montesinos

Key management personnel

No salaries were paid in the year.

The Trustees, who are also the directors of The Elements World Theatre for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities SORP;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees' report was approved by the Board of Trustees.

I report on the financial statements of the charity for the year ended 31 December 2021, which are set out on pages 6 to 13.

The charity’s Trustees, who are also the directors of The Elements World Theatre for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The Trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006 (as amended). An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the accounts.

In connection with my examination, no matter has come to my attention:

to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The Elements World Theatre is a private company limited by guarantee incorporated in Scotland. The registered office is 11 Learmonth Gardens, Edinburgh, EH4 1HB.

The financial statements have been prepared in accordance with the charity's [governing document], the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

At the time of approving the financial statements, the Trustees have committed to providing financial support and therefore have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

• Unrestricted funds are funds that can be used in accordance with the objectives of the charity at the discretion of the directors.

• Designated funds are unrestricted funds set aside by the directors for specific future purposes or projects.

• Restricted funds are funds that can only be used for particular restricted purposes within the objectives of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

All incoming resources are included in the statement of financial activities when the charity is entitled to, and virtually certain to receive, the income and the amount can be quantified with reasonable accuracy.

For donations to be recognised the charity will have been notified of the amounts. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Income from government and other grants, whether ‘capital grants or revenue grants’, are recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Where a grant is received for a specific purpose, it is included in restricted income and any unexpended portion carried forward as a restricted fund.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Income from other trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. All expenditure was incurred in carrying out charitable activity of the charity, including the costs of operating.

The charity and its wholly owned subsidiary are not registered for VAT and therefore all expenditure is recorded inclusive of VAT.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include office costs, general administration, and governance costs and are incurred directly in support of expenditure on the objects of the charity. The bases on which support costs have been allocated are on a direct basis or as a proportion of time spent.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Subscriptions

Direct

Subscriptions

Direct

Depreciation

Direct

The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Refer to the table for the basis of apportionment and the analysis of support and governance costs.

The average monthly number of employees during the year was:

There were 0 employees in the year (2019 - 0).

During the year, a director made a loan to the company to the value of £264. This was outstanding at the year end and is included in other creditors.