Castle Park Arts Centre - Charities report - 22.2

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 2022

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 2022. 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

Castle Park Arts Centre continues 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 make people happy through culture, support, inspiration and entertainment. Our overriding aim is for everyone who visits or uses the Arts Centre to enjoy themselves and leave feeling good and look forward to returning.

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 remain a cultural hub for the professional arts community whether it be arts practitioners running workshops across the art forms or participants who learn new skills and make new connections at the rich variety of events and courses offered or 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

This financial year has been one of learning and recovery from the Covid-19 pandemic.

Government continued to provide financial help through the Job Retention Scheme and Small Business Grants. The Job Retention Scheme helped fund staff wages, and the Small Business Grants were designated for essential capital improvements to the building and surroundings. These residual Covid related grants provided the Centre with a little more financial breathing space to be reactive, responsible, and flexible to the changed post pandemic environment.

During the year we continued to make better use of our outdoor space to generate revenue through the courtyard café and to deliver cultural activities on a cost-effective basis. Musicians performed, for free, every day, to the public. This resulted in three vital cultural benefits; the artists were able to continue to entertain people and express themselves artistically; the public had an outlet to enjoy live music and this not only reinvigorated public interest in the Arts Centre but progressively built confidence in the public about continuing life in a responsible, socially distanced way; the Arts Centre benefitted from the earned income from the café and also from the wider audience this daily cultural engagement drew in.

Throughout the year all galleries were fully booked. Exhibitions run for 6-weeks at a time then change over. There was no shortage of artistic groups or artists wishing to exhibit. Groups hiring rooms for art workshops and other creative activities were, however, slow to return and this had a negative impact on revenue.

We continue to recognise the importance of providing a high level of cultural engagement to the community, including those from underserved groups in society. Enhancing local creative skills remained a prime objective. Artists displaying in the gallery in the past year mainly came from within the region. All are of a high standard even though many are of amateur status. Applications to display art built up during the year and the Open Exhibition was very well supported and highly successful. The public continue to have free access, including disabled access, to the building and art exhibitions there are no barriers to audience or visitor diversity. Our policy is to welcome all. Making people happy is what the Arts Centre seems to do better than most organisations and maintaining a high standard of diverse artistic activities remains strategically vital.

During the year improvements continued to be made to the Centre. New surface water drains have been installed in courtyard 2, which resolved the flooding problems in the gallery, and courtyard 2 has been remodelled and paved in a circular design. The external walls of gallery 2 have also been refurbished with k-rendering, which has improved the visual aspect and provided added insulation. The buildings and courtyards will continue to be maintained to a high standard and top-quality care of the asset will become an ongoing commitment.

Units in the courtyard remained fully occupied throughout the year and not only provided welcome revenue but continued to enhance the cultural offerings of the Centre. They also contribute to attracting greater footfall.

Many lessons continued to be learned in operating the courtyard café inhouse. The surplus generated provided a much-needed financial contribution in support of the Charitable activities and it is planned to improve on this in the future.

During the year the board reviewed it's 10-year Strategic Plan - Working together - A strategy for success. From the review and analysis, a clear strategic focus was developed.

Throughout the year the Arts Centre has remained important to the local community and artists of all persuasions by being responsive to their needs and by protecting the beautiful historical building and surroundings. We have stayed true to our values by making everybody welcome, comfortable, and safe so they can be stimulated by the art on display, inspired by the high-quality workshops, entertained by top class musicians and performers. Above all, the Arts Centre has strived to make everyone look forward to returning.

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 2022 accompanies this report. This shows that income for the year increased from £131,255 in 2021 to £172,638, Expenditure also increased from £112,546 in 2021 to £172,297 resulting in a surplus of £341 in 2022.

Capital grants that have been received by Cheshire West and Chester Council for grant projects to enhance the availability of outside spaces for cultural activities within 2022 have been treated as accrued income within the balance sheet and all costs relating to these projects have and will be offset against this income. The amount outstanding at the year end and stated within accruals is £9,344. The remains of this grant will be offset against capital projects which will take place in the year 2023..

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 2020-21 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 3 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

P Vickery

Mrs S Burkey

Independent Examiner

KPD Business Services Limited

The Old Shippon

Bradley

Frodsham

Cheshire

WA6 7EP

Approved by order of the board of trustees on 15 July 2022 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 2022.

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

15 July 2022

2022

2021

Art

Unrestricted

Restricted

Council

Total

Total

fund

fund

Grant

funds

funds

Notes

£

£

£

£

£

INCOME AND

ENDOWMENTS FROM

Donations and legacies

5,613

-

-

5,613

61,731

Other trading activities

2

167,024

-

-

167,024

69,469

Investment income

3

1

-

-

1

55

Total

172,638

-

-

172,638

131,255

EXPENDITURE ON

Raising funds

87,810

-

(92

)

87,718

25,518

Charitable activities

Activity

84,579

-

-

84,579

87,028

Total

172,389

-

(92

)

172,297

112,546

NET INCOME

249

-

92

341

18,709

Transfers between funds

11

92

-

(92

)

-

-

Net movement in funds

341

-

-

341

18,709

RECONCILIATION OF

FUNDS

Total funds brought forward

207,439

-

-

207,439

188,730

TOTAL FUNDS CARRIED FORWARD

207,780

-

-

207,780

207,439

2022

2021

Art

Unrestricted

Restricted

Council

Total

Total

fund

fund

Grant

funds

funds

Notes

£

£

£

£

£

FIXED ASSETS

Tangible assets

8

147,047

-

-

147,047

151,216

CURRENT ASSETS

Debtors

9

772

-

-

772

5,132

Cash at bank and in hand

76,513

-

-

76,513

82,962

77,285

-

-

77,285

88,094

CREDITORS

Amounts falling due within one year

10

(16,552

)

-

-

(16,552

)

(31,871

)

NET CURRENT ASSETS

60,733

-

-

60,733

56,223

TOTAL ASSETS LESS CURRENT LIABILITIES

207,780

-

-

207,780

207,439

NET ASSETS

207,780

-

-

207,780

207,439

FUNDS

11

Unrestricted funds

207,780

207,439

TOTAL FUNDS

207,780

207,439

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 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 15 July 2022 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

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

2022

2021

£

£

Art Centre Activities

21,973

5,082

Room lettings

39,131

26,974

Café Sales

105,920

37,413

167,024

69,469

3.	INVESTMENT INCOME

2022

2021

£

£

Investment income

1

55

4.	NET INCOME/(EXPENDITURE)

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

2022

2021

£

£

Depreciation - owned assets

4,169

4,667

Hire of plant and machinery

808

-

5.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.

6.	STAFF COSTS

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

2022

2021

Administration

1

1

Security

1

1

Café Staff

3

1

5

3

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

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Art

Unrestricted

Restricted

Council

Total

fund

fund

Grant

funds

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

24,165

-

37,566

61,731

Other trading activities

69,469

-

-

69,469

Investment income

55

-

-

55

Total

93,689

-

37,566

131,255

EXPENDITURE ON

Raising funds

25,518

-

-

25,518

Charitable activities

Activity

49,462

-

37,566

87,028

Total

74,980

-

37,566

112,546

NET INCOME

18,709

-

-

18,709

RECONCILIATION OF FUNDS

Total funds brought forward

188,730

-

-

188,730

TOTAL FUNDS CARRIED FORWARD

207,439

-

-

207,439

8.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

COST

At 1 April 2021 and 31 March 2022

106,734

45,313

2,626

DEPRECIATION

At 1 April 2021

8,539

3,021

1,239

Charge for year

2,135

906

138

At 31 March 2022

10,674

3,927

1,377

NET BOOK VALUE

At 31 March 2022

96,060

41,386

1,249

At 31 March 2021

98,195

42,292

1,387

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 April 2021 and 31 March 2022

51,215

2,767

208,655

DEPRECIATION

At 1 April 2021

42,239

2,401

57,439

Charge for year

898

92

4,169

At 31 March 2022

43,137

2,493

61,608

NET BOOK VALUE

At 31 March 2022

8,078

274

147,047

At 31 March 2021

8,976

366

151,216

9.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Other debtors

772

1,255

VAT

-

3,877

772

5,132

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

VAT

2,605

-

Other creditors

3,703

10,845

Accrued expenses

10,244

21,026

16,552

31,871

11.	MOVEMENT IN FUNDS

Net

Transfers

movement

between

At

At 1.4.21

in funds

funds

31.3.22

£

£

£

£

Unrestricted funds

General fund

207,439

249

92

207,780

Restricted funds

Art Council Grant

-

92

(92

)

-

TOTAL FUNDS

207,439

341

-

207,780

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

172,638

(172,389

)

249

Restricted funds

Art Council Grant

-

92

92

TOTAL FUNDS

172,638

(172,297

)

341

Comparatives for movement in funds

Net

movement

At

At 1.4.20

in funds

31.3.21

£

£

£

Unrestricted funds

General fund

188,730

18,709

207,439

TOTAL FUNDS

188,730

18,709

207,439

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

93,689

(74,980

)

18,709

Restricted funds

Art Council Grant

37,566

(37,566

)

-

TOTAL FUNDS

131,255

(112,546

)

18,709

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

Net

Transfers

movement

between

At

At 1.4.20

in funds

funds

31.3.22

£

£

£

£

Unrestricted funds

General fund

188,730

18,958

92

207,780

Restricted funds

Art Council Grant

-

92

(92

)

-

TOTAL FUNDS

188,730

19,050

-

207,780

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

266,327

(247,369

)

18,958

Restricted funds

Art Council Grant

37,566

(37,474

)

92

TOTAL FUNDS

303,893

(284,843

)

19,050

12.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2022.