Luton Community Arts Trust Limited - Charities report - 22.2

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 2022

FOR

LUTON COMMUNITY ARTS TRUST LIMITED

Page

Reference and Administrative Details

1

Report of the Trustees

2

to

3

Statement of Financial Activities

4

Balance Sheet

5

to

6

Notes to the Financial Statements

7

to

13

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

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).

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 objects of the Trust are to foster and promote, and improve the appreciation of the Arts amongst the people of Luton. In recent years this has been through the provision of drop-in and outreach activities for young disadvantaged persons, using arts related activity to promote a return to education, training and/or employment, through its SNAP project.

Significant activities

Activities

Following the implications resulting from the Covid 19 Pandemic, regular activities ceased to be provided due to lack of funding opportunities for the SNAP Project.

Staff continued to work from home, prioritising working on a revised application to the National Heritage Lottery Fund for to support to develop an archive project based on the historical of the work of LCAT - relating to the period 1975 -2000.

33 RPM

Creation of new products and new distribution outlets for 33 RPM, was continued via increased development of on-line activities, including streaming and downloading trends.

The administration of 33 RPM's work was in the main organized from home supported by re-locating equipment from the Hightown premises which was primarily used as a storage facility.

Significant Other Information

In October 2022, the Company Secretary was awarded a place, as a cohort, on the University of Bedfordshire's newly created Heritage Impact Accelerator Scheme. The Scheme provided training in bid writing and access to the staff and academic resources of the University. In addition the HIAS provided useful contacts and introductions to supportive national organisations like the British Library, Bedfordshire Archives and the Norfolk Records Office.

This was a project to support local creatives and organisations to develop heritage and legacy applications to the National Heritage Lottery Fund. This new initiative fitted perfectly, complementing the Trusts archive proposals and ambitions.

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 has been 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 twelves month's expenditure, in order to enable to activities to continue between funding gaps. Now, as the charity approaches it's final legacy project, it is planned to utilise these reserves, enabling the charity to complete a heritage archive project and wind down in an effective manner. Accordingly, the balance of the contingency has been transferred to general funds to support this aim.

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 5, shows net expenditure of £32,560 on unrestricted funds and expenditure of £1,842 on restricted funds leaving funds of £33,758 and £Nil respectively.

Going concern

The charity has secured sufficient funding, which, along with the current reserves, will enable the charity to continue as a going concern until at least June 2024. As such the going concern basis has been adopted and the Trustees are satisfied that the charity will continue providing services for at least a further 12 months.

FUTURE PLANS

The Trustees are pleased to report that since the year end the Trust has been successful in their application to the National Heritage Lottery Fund to create an archive of the Trust work during 2023-24. This will be the final significant project and will form an enduring legacy of the work of the Trust.

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 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 27 December 2022 and signed on its behalf by:

Mr P Jolly - Secretary

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Investment income

2

3

-

3

20

Other income

3

10,241

-

10,241

10,000

Total

10,244

-

10,244

10,020

EXPENDITURE ON

Charitable activities

4

Charitable activities

42,804

1,842

44,646

44,337

NET INCOME/(EXPENDITURE)

(32,560

)

(1,842

)

(34,402

)

(34,317

)

RECONCILIATION OF FUNDS

Total funds brought forward

66,318

1,842

68,160

102,477

TOTAL FUNDS CARRIED FORWARD

33,758

-

33,758

68,160

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

9

348

-

348

1,842

Investments

10

100

-

100

100

448

-

448

1,942

CURRENT ASSETS

Debtors

11

3,327

-

3,327

4,325

Cash at bank and in hand

33,712

-

33,712

65,591

37,039

-

37,039

69,916

CREDITORS

Amounts falling due within one year

12

(3,729

)

-

(3,729

)

(3,698

)

NET CURRENT ASSETS

33,310

-

33,310

66,218

TOTAL ASSETS LESS CURRENT LIABILITIES

33,758

-

33,758

68,160

NET ASSETS

33,758

-

33,758

68,160

FUNDS

13

Unrestricted funds

33,758

66,318

Restricted funds

-

1,842

TOTAL FUNDS

33,758

68,160

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 27 December 2022 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.

Government grants

Government grants are recognised within other income when deemed to be receivable by the charity.

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 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.

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.

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

2022

2021

£

£

Deposit account interest

3

20

3.	OTHER INCOME

2022

2021

£

£

Government grant

10,241

10,000

10,241

10,000

4.	CHARITABLE ACTIVITIES AND SUPPORT COSTS

Direct Charitable Expenditure

Support

Total 2022

Total 2021

£

£

£

£

Staff costs

24,948

8,316

33,264

33,264

Depreciation

569

-

569

548

Other costs

7,638

1,550

9,188

10,525

33,155

9,866

43,021

44,337

5.	SUPPORT COSTS

Governance

Management

costs

Totals

£

£

£

Charitable activities

8,316

1,550

9,866

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

2022

2021

Charitable

Total

activities

activities

£

£

Wages

8,316

8,316

Accountancy

1,550

-

Independent examiners remuneration for non assurance work

-

1,550

9,866

9,866

6.	NET INCOME/(EXPENDITURE)

Net resources are stated after charging/(crediting):

2022

2021

£

£

Accountancy

1,550

1,550

7.	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.

8.	STAFF COSTS

2022

2021

£

£

Salaries and wages

33,264

33,264

33,264

33,264

The average number of employees during the year was 2 (2021: 2).

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

9.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 April 2021

101,252

Additions

519

At 31 March 2022

101,771

DEPRECIATION

At 1 April 2021

99,410

Charge for year

2,013

At 31 March 2022

101,423

NET BOOK VALUE

At 31 March 2022

348

At 31 March 2021

1,842

10.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

MARKET VALUE

At 1 April 2021 and 31 March 2022

100

NET BOOK VALUE

At 31 March 2022

100

At 31 March 2021

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

31.3.22

31.3.21

£

£

Aggregate capital and reserves

13,818

15,874

(Loss)/profit for the year

(2,056

)

1,368

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Amounts owed by group undertakings

2,817

3,119

VAT

510

795

Prepayments

-

411

3,327

4,325

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

90

64

Other creditors

589

584

Accruals and deferred income

3,050

3,050

3,729

3,698

13.	MOVEMENT IN FUNDS

Net

Transfers

movement

between

At

At 1.4.21

in funds

funds

31.3.22

£

£

£

£

Unrestricted funds

General fund

35,571

(32,560

)

30,747

33,758

Contingency fund

30,747

-

(30,747

)

-

66,318

(32,560

)

-

33,758

Restricted funds

SNAP

1,842

(1,842

)

-

-

TOTAL FUNDS

68,160

(34,402

)

-

33,758

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

10,244

(42,804

)

(32,560

)

Restricted funds

SNAP

-

(1,842

)

(1,842

)

TOTAL FUNDS

10,244

(44,646

)

(34,402

)

Comparatives for movement in funds

Net

Transfers

movement

between

At

At 1.4.20

in funds

funds

31.3.21

£

£

£

£

Unrestricted funds

General fund

71,730

(33,770

)

(2,389

)

35,571

Contingency fund

30,747

-

-

30,747

102,477

(33,770

)

(2,389

)

66,318

Restricted funds

SNAP

-

(547

)

2,389

1,842

TOTAL FUNDS

102,477

(34,317

)

-

68,160

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

10,020

(43,790

)

(33,770

)

Restricted funds

SNAP

-

(547

)

(547

)

TOTAL FUNDS

10,020

(44,337

)

(34,317

)

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

71,730

(66,330

)

28,358

33,758

Contingency fund

30,747

-

(30,747

)

-

102,477

(66,330

)

(2,389

)

33,758

Restricted funds

SNAP

-

(2,389

)

2,389

-

TOTAL FUNDS

102,477

(68,719

)

-

33,758

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

20,264

(86,594

)

(66,330

)

Restricted funds

SNAP

-

(2,389

)

(2,389

)

TOTAL FUNDS

20,264

(88,983

)

(68,719

)

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 2022, £Nil (2021: £2,389) was transferred from the general fund to the SNAP restricted fund to cover for the surplus of expenditure in the period.

As the charity approaches it's final legacy project, it is planned to utilise its unrestricted reserves, enabling the charity to complete a heritage archive project and wind down in an effective manner. Accordingly, during the year, the balance of the contingency fund (£30,747) has been transferred to general funds to support this aim.

14.	RELATED PARTY DISCLOSURES

At the year end the charity was owed £2,817 from 33 RPM Limited (2021: £3,119), a wholly owned subsidiary. There is no formal repayment plan or any interest accruing on the outstanding balance.