Bath Arts Workshop Limited - Charities report - 21.2

REGISTERED COMPANY NUMBER: 01114273 (England and Wales)

REGISTERED CHARITY NUMBER: 0266038

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

FOR

BATH ARTS WORKSHOP LIMITED

Page

Report of the Trustees

1

to

3

Independent Examiner's Report

4

Statement of Financial Activities

5

Balance Sheet

6

to

7

Notes to the Financial Statements

8

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 2021. 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 principal objective of the company is to promote, encourage and increase the appreciation and understanding by the general public of the arts generally, and promote education in all sections of the community of both cultural and creative arts. This is achieved primarily though the performances of The Natural Theatre Company (a trading name) and educational workshops.

Significant activities

This financial year was severely affected by the COVID pandemic and the associated lockdowns. Between April 2020 and July 2020 no performances were allowed to take place. Again in November 2020 and January to March 2021. This means activities were drastically reduced

- Provided reduced, socially distanced costumed interpretation at the Roman Baths between July and October 2020, and in December 2020

- Created two information films for DHI

- We were awarded a National Lottery Heritage fund grant for "Hidden Heroes" participation project. The research element was conducted online.

- Some online workshops for our Theatre School and Falmouth University

- Several Gigs including a Christmas Shopping Event in Bath

- Staff changes: The pandemic forced two redundancies of our Bookkeeper and Marketing Administrator. All staff were put on Furlough or part-furlough throughout the year

- Procedural changes - we changed to Xero online accounting enabling bookkeeping to be undertaken by the Administrator and the Director

- There was significant reductions in building usage and therefore in the associated costs.

Public benefit

The charity objectives and aims are performed with regard to the Charity Commission guidance on public benefit.

Social investments

These were received from:

- performance fees

- Government & BNES COVID Business Support Grants

- the Government furlough scheme

- donations from local business and trusts

- building hire.

Strategies

Strategies employed to achieve the objectives:

- continued support of several community and education projects, including youth theatres and work experience weeks for young people

- the hire of the studio, workshop and office space

- increased Twitter, Facebook and Instagram activity

- because of the chaos of the UK's exit from the EU, corporate bookings have all but disappeared, so we refocussed to heritage and tourism clients.

Future plans

Our future plans are:

- to respond to the easing of COVID lockdowns with performances as legally permitted

- to increase the diversity and inclusion of the company

- develop new performances

- continue to develop education/participation strands

- create projects to sell directly to the general public.

RESERVES

The trustees have decided that £70,000 should be kept in reserve at all times as a contingency. This figure breaks down as follows; £45,000 to cover maintenance of essential services, £10,000 to support the cash flow of the charity and £15,000 for unplanned closure, to meet pay and redundancy costs. This Reserves Policy have been reviewed for the next financial year.

At the end of the year, the charity had unrestricted net current assets of £64,990.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies House Act 2006.

Trustees and organisational structure

Trustees are appointed by the board of trustees and normally serve for a period of three years, at the end of which time they may seek re-appointment. The minimum number of trustees (a quorum) is three and the maximum thirty. Trustees agree the broad strategy for the company and delegate day to day administration and implementation to the artistic director. The trustees keep the skill requirements of the board under review. New trustees may be sought by open advertisement or through dialogue with candidates with relevant expertise. Selection of new members is a matter for the existing board. On appointment, new members are given an introduction to the work of the company and provided with information about their role and charity law.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

01114273 (England and Wales)

Registered Charity number

0266038

Registered office

Widcombe Institute

Widcombe Hill

BATH

BA2 6AA

Trustees

M R Fineman

S A Mccluskey (resigned 1.1.21)

O J Norton

D J Looman

V F Hitchman (resigned 1.2.21)

P B Eccleson

G D Stobart

Company Secretary

A P Burden

Independent Examiner

Berkeley Hall Marshall Limited

6 Charlotte Street

Bath

BA1 2NE

INVESTMENT POLICY AND OBJECTIVES

The charity has limited reserves and these are generally held in accounts which are readily accessible. The trustees are, however, mindful of their responsibilities and seek to obtain the best returns available within the context of such a policy.

The charity owns the freehold of the building from which it operates. The building is shown as a designated fund in the accounts to distinguish it from readily available funds.

FINANCIAL REVIEW

The financial statements of the charity for the year ended 31 March 2021 show a deficit of £45,211. After taking into account all sources of income, and not including the depreciation of the building, the deficit was £31,512.

During the year, the company received £17,995 in grants and donations from the general public, which was used during the year to meet the running costs of the company. The trustees continue to actively review and consider all funding options and the Board has implemented strategies to match income to costs to secure the long term future of the Company.

Approved by order of the board of trustees on 19 October 2021 and signed on its behalf by:

D J Looman - Trustee

Independent examiner's report to the trustees of Bath Arts Workshop Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2021.

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.

Matthew Small FCA

ICAEW

Berkeley Hall Marshall Limited

6 Charlotte Street

Bath

BA1 2NE

9 November 2021

2021

2020

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

14,939

3,056

17,995

225

Charitable activities

Touring expenses

71,350

-

71,350

289,586

Other trading activities

2

44,713

-

44,713

46,465

Investment income

3

15

-

15

148

Total

131,017

3,056

134,073

336,424

EXPENDITURE ON

Raising funds

12,447

-

12,447

14,209

Charitable activities

Production expenses

117,931

3,037

120,968

211,185

Touring expenses

3,573

-

3,573

13,668

Administration

3,231

-

3,231

111,627

Overheads

35,548

2,404

37,952

20,327

Other

4

1,113

-

1,113

1,113

Total

173,843

5,441

179,284

372,129

NET INCOME/(EXPENDITURE)

(42,826

)

(2,385

)

(45,211

)

(35,705

)

RECONCILIATION OF FUNDS

Total funds brought forward

778,985

118,267

897,252

932,957

TOTAL FUNDS CARRIED FORWARD

736,159

115,882

852,041

897,252

2021

2020

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

9

671,169

92,091

763,260

780,409

CURRENT ASSETS

Debtors

10

5,498

-

5,498

35,332

Cash at bank and in hand

68,205

47,837

116,042

93,343

73,703

47,837

121,540

128,675

CREDITORS

Amounts falling due within one year

11

(8,713

)

(24,046

)

(32,759

)

(11,832

)

NET CURRENT ASSETS

64,990

23,791

88,781

116,843

TOTAL ASSETS LESS CURRENT LIABILITIES

736,159

115,882

852,041

897,252

NET ASSETS

736,159

115,882

852,041

897,252

FUNDS

12

Unrestricted funds:

General fund

111,624

143,816

Designated fund

624,535

635,169

736,159

778,985

Restricted funds

115,882

118,267

TOTAL FUNDS

852,041

897,252

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 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 19 October 2021 and were signed on its behalf by:

D J Looman - 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, as modified by the revaluation of certain assets.

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.

Improvements to property

-

2% on cost

Motor vehicles

-

15% on reducing balance

Equipment

-

25% on reducing balance

Freehold property is to be depreciated over 50 years, holding a residual value of £200,000.

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.

The restricted fund represents funds received towards the capital building costs to be carried out to transform the premises into more practical workable areas, together with grants from the Arts Council and Bath and North Somerset Council specifically to maintain the artistic programme.

The designated fund consists of funds raised towards the purchase of freehold premises.

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

2021

2020

£

£

Sundry income

44,713

46,465

3.	INVESTMENT INCOME

2021

2020

£

£

Bank interest received

15

148

4.

OTHER

2021

2020

£

£

Accountancy

613

613

Independent examination

500

500

1,113

1,113

5.	NET INCOME/(EXPENDITURE)

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

2021

2020

£

£

Depreciation - owned assets

17,149

17,915

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

7.	STAFF COSTS

Staff costs :

2021 2020

£ £

Salaries and fees 129,493 280,105

Social security costs 3,026 4,736

Total 132,519 284,841

The average weekly number of employees during the year,

including the services of performers who retained reserved

self-employed status, was 47 part time and 2 full time (2020 - 47 part time and 2 full time)

No employee received emoluments of more than £60,000 during the year.

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

2021

2020

Administration

2

2

Performers

47

47

49

49

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

8.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

225

-

225

Charitable activities

Touring expenses

289,586

-

289,586

Other trading activities

46,465

-

46,465

Investment income

148

-

148

Total

336,424

-

336,424

EXPENDITURE ON

Raising funds

14,209

-

14,209

Charitable activities

Production expenses

211,185

-

211,185

Touring expenses

13,668

-

13,668

Administration

109,223

2,404

111,627

Overheads

20,327

-

20,327

Other

1,113

-

1,113

Total

369,725

2,404

372,129

NET INCOME/(EXPENDITURE)

(33,301

)

(2,404

)

(35,705

)

RECONCILIATION OF FUNDS

Total funds brought forward

812,286

120,671

932,957

TOTAL FUNDS CARRIED FORWARD

778,985

118,267

897,252

9.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Motor

property

property

vehicles

Equipment

Totals

£

£

£

£

£

COST

At 1 April 2020 and 31 March 2021

650,000

234,908

25,321

123,245

1,033,474

DEPRECIATION

At 1 April 2020

90,000

34,861

8,930

119,274

253,065

Charge for year

9,000

4,698

2,459

992

17,149

At 31 March 2021

99,000

39,559

11,389

120,266

270,214

NET BOOK VALUE

At 31 March 2021

551,000

195,349

13,932

2,979

763,260

At 31 March 2020

560,000

200,047

16,391

3,971

780,409

10.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

-

25,144

VAT

1,029

-

Prepayments

4,469

10,188

5,498

35,332

11.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

99

800

Social security and other taxes

1,306

1,702

VAT

-

7,973

Other creditors

31

-

Accrued expenses

1,357

1,357

Deferred income

29,966

-

32,759

11,832

12.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.20

in funds

31.3.21

£

£

£

Unrestricted funds

General fund

143,816

(32,192

)

111,624

Designated fund

635,169

(10,634

)

624,535

778,985

(42,826

)

736,159

Restricted funds

Restricted funds

118,267

(2,385

)

115,882

TOTAL FUNDS

897,252

(45,211

)

852,041

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

131,017

(163,209

)

(32,192

)

Designated fund

-

(10,634

)

(10,634

)

131,017

(173,843

)

(42,826

)

Restricted funds

Restricted funds

3,056

(5,441

)

(2,385

)

TOTAL FUNDS

134,073

(179,284

)

(45,211

)

Comparatives for movement in funds

Net

movement

At

At 1.4.19

in funds

31.3.20

£

£

£

Unrestricted funds

General fund

166,483

(22,667

)

143,816

Designated fund

645,803

(10,634

)

635,169

812,286

(33,301

)

778,985

Restricted funds

Restricted funds

120,671

(2,404

)

118,267

TOTAL FUNDS

932,957

(35,705

)

897,252

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

336,424

(359,091

)

(22,667

)

Designated fund

-

(10,634

)

(10,634

)

336,424

(369,725

)

(33,301

)

Restricted funds

Restricted funds

-

(2,404

)

(2,404

)

TOTAL FUNDS

336,424

(372,129

)

(35,705

)

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

Net

movement

At

At 1.4.19

in funds

31.3.21

£

£

£

Unrestricted funds

General fund

166,483

(54,859

)

111,624

Designated fund

645,803

(21,268

)

624,535

812,286

(76,127

)

736,159

Restricted funds

Restricted funds

120,671

(4,789

)

115,882

TOTAL FUNDS

932,957

(80,916

)

852,041

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

467,441

(522,300

)

(54,859

)

Designated fund

-

(21,268

)

(21,268

)

467,441

(543,568

)

(76,127

)

Restricted funds

Restricted funds

3,056

(7,845

)

(4,789

)

TOTAL FUNDS

470,497

(551,413

)

(80,916

)