Castle Park Arts Centre - Charities report - 21.2
Castle Park Arts Centre - Charities report - 21.2
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Unaudited Financial Statements for the Year Ended 31 March 2021 |
for |
Castle Park Arts Centre |
Castle Park Arts Centre |
Contents of the Financial Statements |
for the Year Ended 31 March 2021 |
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 |
Castle Park Arts Centre (Registered number: 01588845) |
Report of the Trustees |
for the Year Ended 31 March 2021 |
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 |
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. |
Castle Park Arts Centre (Registered number: 01588845) |
Report of the Trustees |
for the Year Ended 31 March 2021 |
ACHIEVEMENT AND PERFORMANCE |
Charitable activities |
This financial year has been dominated by the Covid-19 pandemic. The Arts Centre was required to close for 8 months of the year and could only open with restrictive social distancing during the months July to October. Government provided financial help through the Job Retention Scheme and Small Business Grants. We were also fortunate to be awarded a Culture Recovery Grant from the Arts Council. The Job Retention Scheme helped fund staff wages, the Small Business Grants were designated for essential capital improvements to the building and surroundings and the Culture Recovery Grant funded top up salaries, overheads and made a contribution to reflating our reserves. |
The Culture Recovery Grant allowed the Arts Centre to survive the year in which income has been severely restricted. In doing so it has given us the financial resilience to reopen with plans that should ensure a sustainable future. The grant enabled the Centre to endure continued restrictions and provided the financial breathing space to be reactive, responsible and flexible to the ongoing changes and potential for continued restrictions and to plan for reopening. |
During the period July to the end of October 2020 when lockdown restrictions were eased, we tried new things and learned a lot about how we needed to adapt to the changing circumstances to ensure a viable future for the Arts Centre. Our first priority was to make better use of our outdoor space to generate revenue through the courtyard café and to continue to deliver cultural activities on a cost-effective basis. A stage and two marques were erected in the courtyard. 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. |
Until lockdown in March 2020 the café was contracted out. A major change was to bring the management of the café back inhouse under our direct control and fully integrate it into Centre activities. This proved highly successful and brought in new audiences to the Arts Centre and greater revenue than anticipated. After directly operating the café over the summer it became clear that to comply with modern hygiene requirements and strict Covid-19 protocols improvements to the layout of the counter and modernisation of the kitchen was needed to gain the full long term financial benefit of providing a well maintained and fully compliant cafeteria. During the latest lockdown refurbishment works have been completed using the unexpected surpluses gained over restricted summer opening. Future surpluses from the café will provide the resources to maintain high standards of maintenance in our historic building, courtyard and gardens. |
Although the café provided much needed income when it was allowed by the Government to operate outdoors, the galleries, workshops and indoor events had to remain closed to the public. We mitigated these restrictions by delivering content in a different way than was originally intended. Art continued to be displayed in the galleries and every item was displayed online and sales were made online on a click and collect basis. |
During the year the board produced a 10-year Strategic Plan - Working together - A strategy for success. A performance review of the Arts Centre was carried out along with a competitor analysis. From the review and analysis, a new vision and values emerged, and a clear strategic focus was developed. Over the coming year the Arts Centre will secure its future through a new Trust or by renewing the lease. Further, it is resolved to strengthen its financial position. To maintain its artistic reputation, it will relentlessly protect the high standards currently being achieved and vigorously promote the tangible benefits of art and culture to the widest possible audience. The Arts Centre will remain 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. The Arts Centre will stay true to its values at all times and make 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 will strive to make everyone look forward to returning. |
The annual Open Arts Exhibition was held in a restricted format. Visitors were not allowed in person, but art was displayed online, and a good proportion of sales were made because of being online. The Open continued to provide a competitive spirit within the arts community for professionals and amateurs of every age and experience. |
Professional surveys of all aspects of the building were commissioned during the year and will be used to improve building maintenance programme. |
Castle Park Arts Centre (Registered number: 01588845) |
Report of the Trustees |
for the Year Ended 31 March 2021 |
ACHIEVEMENT AND PERFORMANCE |
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 2021 accompanies this report. This shows that income for the year increased from £86,692 in 2020 to £131,255, expenditure also increased from £91,788 in 2020 to £112,546 resulting in a surplus of £18,709 in 2021. |
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 2021 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 £21,026. The remains of this grant will be offset against capital projects which will take place in the year 2022. |
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. |
Castle Park Arts Centre (Registered number: 01588845) |
Report of the Trustees |
for the Year Ended 31 March 2021 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
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 |
Registered Charity number |
Registered office |
Trustees |
P Vickery |
Independent Examiner |
KPD Business Services Limited |
The Old Shippon |
Bradley |
Frodsham |
Cheshire |
WA6 7EP |
Approved by order of the board of trustees on |
Independent Examiner's Report to the Trustees of |
Castle Park Arts Centre |
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 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. |
Mrs Kathryn Davies |
BFP FCA DChA |
KPD Business Services Limited |
The Old Shippon |
Bradley |
Frodsham |
Cheshire |
WA6 7EP |
14 May 2021 |
Castle Park Arts Centre |
Statement of Financial Activities |
for the Year Ended 31 March 2021 |
2021 | 2020 |
Art |
Unrestricted | Restricted | Council | Total | Total |
fund | fund | Grant | funds | funds |
Notes | £ | £ | £ | £ | £ |
INCOME AND | ENDOWMENTS FROM |
Donations and legacies | - | 37,566 |
Other trading activities | 2 | - | - |
Investment income | 3 | - | - |
Total | - | 37,566 |
EXPENDITURE ON |
Raising funds | - | - |
Charitable activities |
- | 37,566 |
Total | - | 37,566 |
NET INCOME/(EXPENDITURE) | - | - | ( | ) |
RECONCILIATION OF | FUNDS |
Total funds brought forward | - | - |
TOTAL FUNDS CARRIED FORWARD | - | - | 188,730 |
Castle Park Arts Centre (Registered number: 01588845) |
Balance Sheet |
31 March 2021 |
2021 | 2020 |
Art |
Unrestricted | Restricted | Council | Total | Total |
fund | fund | Grant | funds | funds |
Notes | £ | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 | - | - |
CURRENT ASSETS |
Debtors | 9 | - | - |
Cash at bank and in hand | - | 7,434 |
- | 7,434 |
CREDITORS |
Amounts falling due within one year | 10 | ( | ) | - | (7,434 | ) | ( | ) | ( | ) |
NET CURRENT ASSETS | - | - |
TOTAL ASSETS LESS CURRENT LIABILITIES | - | - |
NET ASSETS | - | - |
FUNDS | 11 |
Unrestricted funds | 188,730 |
TOTAL FUNDS | 188,730 |
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. |
Castle Park Arts Centre (Registered number: 01588845) |
Balance Sheet - continued |
31 March 2021 |
These financial statements have been prepared in accordance with the 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 |
Castle Park Arts Centre |
Notes to the Financial Statements |
for the Year Ended 31 March 2021 |
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 | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
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. |
Castle Park Arts Centre |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
2. | OTHER TRADING ACTIVITIES |
2021 | 2020 |
£ | £ |
Art Centre Activities |
Room lettings | 26,974 | 25,171 |
Craft workshop operations | - | 18,002 |
Café Sales | 37,413 | - |
3. | INVESTMENT INCOME |
2021 | 2020 |
£ | £ |
Investment income |
4. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Depreciation - owned assets |
5. | 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. |
6. | STAFF COSTS |
The average monthly number of employees during the year was as follows: |
2021 | 2020 |
Administration | 1 | 1 |
Security | 1 | 1 |
Café Staff | 1 | - |
Castle Park Arts Centre |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
7. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Art |
Unrestricted | Restricted | Council | Total |
fund | fund | Grant | funds |
£ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | - | - |
Other trading activities | - | - |
Investment income | - | - |
Total | - | - |
EXPENDITURE ON |
Charitable activities |
- | - |
NET INCOME/(EXPENDITURE) | ( | ) | - | - | ( | ) |
Transfers between funds | 15,715 | (15,715 | ) | - | - |
Net movement in funds | (15,715 | ) | - | ( | ) |
RECONCILIATION OF FUNDS |
Total funds brought forward | 178,111 | 15,715 | - |
TOTAL FUNDS CARRIED FORWARD | 188,730 | - | - | 188,730 |
8. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 April 2020 |
Additions |
At 31 March 2021 |
DEPRECIATION |
At 1 April 2020 |
Charge for year |
At 31 March 2021 |
NET BOOK VALUE |
At 31 March 2021 |
At 31 March 2020 |
Castle Park Arts Centre |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
8. | TANGIBLE FIXED ASSETS - continued |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2020 |
Additions |
At 31 March 2021 |
DEPRECIATION |
At 1 April 2020 |
Charge for year |
At 31 March 2021 |
NET BOOK VALUE |
At 31 March 2021 |
At 31 March 2020 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Other debtors |
VAT |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Other creditors | 10,845 | 755 |
Accrued expenses |
11. | 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 | 18,709 | 207,439 |
Castle Park Arts Centre |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
11. | MOVEMENT IN FUNDS - continued |
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 | ( | ) | 18,709 |
Comparatives for movement in funds |
Net | Transfers |
movement | between | At |
At 1.4.19 | in funds | funds | 31.3.20 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 178,111 | (5,096 | ) | 15,715 | 188,730 |
Restricted funds |
Lift Grant | 15,715 | - | (15,715 | ) | - |
TOTAL FUNDS | 193,826 | (5,096 | ) | - | 188,730 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 86,692 | (91,788 | ) | (5,096 | ) |
TOTAL FUNDS | 86,692 | (91,788 | ) | (5,096 | ) |
Castle Park Arts Centre |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2021 |
11. | MOVEMENT IN FUNDS - continued |
A current year 12 months and prior year 12 months combined position is as follows: |
Net | Transfers |
movement | between | At |
At 1.4.19 | in funds | funds | 31.3.21 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 178,111 | 13,613 | 15,715 | 207,439 |
Restricted funds |
Lift Grant | 15,715 | - | (15,715 | ) | - |
TOTAL FUNDS | 193,826 | 13,613 | - | 207,439 |
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 | 180,381 | (166,768 | ) | 13,613 |
Restricted funds |
Art Council Grant | 37,566 | (37,566 | ) | - |
TOTAL FUNDS | 217,947 | (204,334 | ) | 13,613 |
12. | RELATED PARTY DISCLOSURES |