Hopscotch Theatre Company - Charities report - 21.2

REGISTERED COMPANY NUMBER: SC151359 (Scotland)

REGISTERED CHARITY NUMBER: SC022633

HOPSCOTCH THEATRE COMPANY

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

Page

Report of the Trustees

1

to

9

Independent Examiner's Report

10

Statement of Financial Activities

11

Balance Sheet

12

to

13

Notes to the Financial Statements

14

to

18

The trustees present their annual trustees' report together with the financial statements of the charity and for the year ending 31 July 2021 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.

The financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, the Memorandum and Articles of Association, 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).

OBJECTIVES AND ACTIVITIES

Objectives and Aims

Our Mission

Hopscotch Theatre Company's mission is to create theatre that is transformational for children. Helping them to become more creative and confident young people, working specifically in schools and non-traditional family venues, we aim to give all Scotland's children and young people the opportunity to participate in the arts without barriers to access.

Our Objectives

As stated in the company's Memorandum of Association the objectives of the charity are to:

'Promote and encourage the arts, especially opera, plays, drama, ballet and music, and the study of the arts, and for these purposes to organise, promote, manage and conduct music, dramas and other entertainments in United Kingdom and abroad annually or at such longer intervals as the company may determine.'

In furtherance of the stated objects, the company shall:

'Advance Scottish contemporary theatre through the commissioning and performing of challenging relevant new writing and devised work embracing all forms and styles.'

'To tour and work throughout Scotland and abroad across the widest possible social and geographical spread to encourage the development of existing and new audiences and venues.'

Our activities to promote this objective can currently be divided into the following 4 areas:

- Professional Theatre Productions- Creating an annual programme of theatre productions for schools and non-traditional venues for children, young people and families.

- Commissioning - Developing new writing for young audiences by leading playwriting talent in Scotland, including our annual associate pantomime playwright opportunity.

- Creating opportunities - A priority for working with emerging and recently graduated theatre creatives to gain experience on professional productions that allows experimentation and discovery.

- Engagement and Outreach - Workshops and creative learning experiences in schools and communities.

Strategic Objectives

Whilst Hopscotch's key priority is sustainability following a significant impact to activity from the pandemic, it remains future-focused, identifying these strategic priorities:

- Develop longer term relationships with a cluster of schools on a significant residency-style project to establish hyper local working and a depth of impact rather than only a broad reach.

- Build on recent digital developments to strengthen associated resources for schools/teachers/communities to engage with productions, increasing sustainability and longevity of a productions individual impact.

- Explore the role of pantomime in Hopscotch's output, with potential for longer seasons and bringing in inclusive voices to diversify the representation within our pantomime for audience groups.

- Diversify large and small income sources from regular and one-off opportunities, to create long term sustainability in the company and expand the scope of project remits.

To achieve these strategic aims we will:

- Develop a stronger and more resilient core team of staff, incorporating capacity for marketing; development of relationships with schools (for the educational impact of productions); and digital expertise supporting both marketing and learning resources.

- Support existing staff to learn and develop links with innovators and commercial/business experts in the wider cultural community.

- Support the length of development time given to an individual production so that the individual impact and lifespan of a single show is extended.

- Carry out consistent re-evaluation of the operating context and awareness of how the children's theatre sector is seen within Scotland's cultural landscape.

Achievements and Performance

Despite being unable to access our core audiences in-person due to ongoing restrictions within schools, due to the COVID pandemic, we have been able to achieve the following within our programming and still reach and expand our audiences:

Performances

'The Lost Reindeer' - An Audio Story Adventure:

- In response to being unable to tour pantomime in December 2020 we produced and distributed a festive audio story adventure to schools in co-production between ourselves and emerging creative enterprise The Audio Story Company.

'The Unseen Child' - An on demand digital adaptation:

- With financial support from The People's Postcode Lottery and Charcoal Blue the company recorded an on-demand digital adaptation of 'The Unseen Child' by Hannah Lavery in July 2021 which will provide an online touring experience to schools across Scotland in 2022.

Development

In addition to our performance activity the company continued to create opportunities for creatives working in writing, design and direction:

'The Unseen Child' by Hannah Lavery - Playwright Commission:

- We continued to support our commission of Hannah Lavery's children's rights focused work 'The Unseen Child' in 20-21 completing the playscript on 14th December 2020.

'Plop! In the Ocean' by Sarah Mooney - Sustainability and theatre design Residency:

- With financial support from the Leche trust we created an opportunity for Jenny Booth to undertake a residency with the company, in February 2021. Exploring sustainable practices, policy and touring in relation to our in-development production 'Plop! In the Ocean.'

'Puss n' Boots' by Zoë Bullock - Playwright Commission:

- In February 2021 we established our first associate pantomime playwriting opportunity, commissioning emerging playwright Zoë Bullock to create a contemporary adaptation of 'Puss n' Boots' and explore the potential of pantomime as a vehicle to explore ecological, gender and EDI topics for young audiences. The resulting pantomime will be presented in December 2021.

DETAILED PROGRAMME NARRATIVE

'The Lost Reindeer' - An Audio Story Adventure

- Achieving our objectives: developing new writing for young audiences; working with emerging and recently graduated theatre creatives.

The Lost Reindeer is an interactive audio adventure - think audiobook meets pantomime!

Poppy the Elf needs your help! Three of Santa's reindeer have gone missing and Poppy needs your help to find them before Santa notices. By listening for clues, learning how to communicate with reindeer and of course, dealing with reindeer poop, you can help Poppy save Christmas! It's going to be silly, it might be smelly, and it will definitely be fun!

The Lost Reindeer was a new co-production between Hopscotch Theatre Company and The Audio Story Company for ages 4 - 7. Made in response to our inability to tour pantomime for the first time in 32 years we wanted to provide our audiences with an alternative production to celebrate the end of the Winter term in 2020..

With funding from Creative Scotland's Culture Organisations and Venues Recovery Fund - we were able to distribute The Lost Reindeer free of charge to all our partner schools who were originally due to be visited by our pantomime team pre-pandemic.

"I had reservations as I felt the children are so used to the visual and tend not to be as good listeners as they used to be, but I was amazed! They not only listened but responded with gusto and were completely engaged (apart from one solitary child who just sat in his seat the whole time). I did it with a P1 and a P2 class." - Clober Primary School

- 'The Unseen Child' - On demand digital adaptation.

- Achieving our objectives: Creating an annual programme of theatre productions for schools; Developing new writing for young audiences.

Joe is a clever young boy, who has a lot in life but doesn't quite appreciate it. Every day is the same, he rushes through breakfast and strolls to school through the forest. But today is not like any other day…

The company created an R&D process during January 2021 and subsequently followed this with the recording of an on demand digital adaptation of 'The Unseen Child' by Hannah Lavery during July 2021.

Made under strict COVID guidelines this was an opportunity to research and develop how the company rehearses and makes work while adhering to COVID mitigations and how it can adapt its creative output to online platforms. The process served to prepare the core staff of the company to undertake future digital projects such as our digital livestreamed pantomime for Winter 2021. The company plan to carry out an online tour of 'The Unseen Child' in February 2022.

ARTIST & SECTOR DEVELOPMENT

- Meeting our objectives: developing new writing for young audiences; working with emerging and recently graduated theatre creatives.

Hopscotch Theatre Company continued to provide opportunities and support to independent artists and freelancers during 20 - 21, responding to the COVID crisis and its impact on the freelancers that make up the majority of our sector. We completed one commission with Hannah Lavery for 'The Unseen Child', started a brand-new commissioning process for 'Puss n' Boots' with Zoë Bullock and provided continuing professional development to Jenny Booth to research sustainable practice in set design. 'The Unseen Child' created freelance opportunities for 7 creatives over an extended period across an online R&D and the production of its digital recording. We continued to support the development of Sarah Mooney's 'Plop! In the Ocean' and in March 2021 started an associate relationship with Ariel Killick to develop her new work 'Òr Treasure over the coming year.

We continue to support independent artists and companies through informal mentorship and advice via online platforms and forums and through subsidised or free use of our rehearsal studio in Govan. Staff continue to develop their core skills and engage in regular continuing professional development:

- Thomas McCulloch was mentored by Louise Gilmour-Wills via the Federation of Scottish Theatre's Mentorship scheme.

- Thomas McCulloch participated in The Touring Networks Enterprising Leadership in the New Reality programme.

- Stephanie Black-Daniels participated in Punch Drunk's Making Immersive Stories for Young Audiences masterclass.

- The team continue to participate in a range of online talks and workshops in consciousness raising to support our anti-racist strategies and policies.

The company has invested heavily in digital adaptation via the Adapt and Thrive fund and future participation in the Scottish Government's Creative Digital Initiative. We aim to build our digital capacity to allow us to stay more responsive to digital opportunities in the coming years and diversify the audiences we reach and how we reach them.

YEAR END QUANTITATIVE PERFORMANCE SURVEY

The Lost Reindeer - An Audio Story Adventure December 2020 - 63

While the company continued its development activities, we were severely affected in our ability to reach our audiences as COVID restrictions continued in Scottish schools throughout the year. This reflects a major decline in the amount of performances given in this year compared to the previous year. Instead our company focussed primarily on training and making plans for future development and creativity as well as financial sustainability.

FINANCIAL REVIEW

Financial Review and Results

There was a net increase in overall funds during the year of £31,125 owing to a significant grant received from the Scottish Government's Adapt and Thrive Fund (£44,598) which is to be spent during the remainder of 2021 and 2022.

The charity was unable to tour its main income generating activity, pantomime for the first time in 32 years and has had no opportunities to tour it's non seasonal programming. This is reflected in the Income during the year decreasing from 19/20; £169,273 to 20/21; £84,457.

However, owing to lower activity there is a decrease in expenditure from 19/20; £155,347 to 20/21; £53,332. However, development of projects has continued and £18,594 has been spent in advance of 21/22. A core member of staff was on maternity leave between 28th July 2020 and 28 April 2021 which reflects a decrease in core expenditure on salaries for this financial year.

The amount carried forward is £99,524 at 31.7.21.

Investment policy and objectives

The charity does not hold any investments. Any surplus cash flow during the year is re-invested in pursuit of the charity's aims and objectives.

Reserves policy

The reserves of the charity are as described in the accounting policies. It is the policy of the charity to build up unrestricted funds to equate to approximately 6 months unrestricted management and administration expenditure to provide sufficient resources to meet ongoing projects and closure costs if required.

Based on current levels of expenditure 6-months unrestricted costs would equate to approximately £23,909. Reserves at 31.7.21 were £99,524. The trustees acknowledge that the current levels of expenditure are lower owing to lower activity and staffing and will continue to maintain a target reserve of previous years £30,444.

PLANS FOR THE COMING YEAR

With touring and performing within schools still severely restricted we will continue to:

- Develop projects and commissions in partnership with freelance creatives.

- Find new methods via online digital adaptation to engage with our audiences.

- Pursue the strategic objectives outlined in page 3 of this document.

'Puss n' Boots' 2021

The company is preparing to tour our annual pantomime in person to schools if possible, however we remain vigilant of potential variants and restrictions which could curtail this and have planned for the likely need for digital adaptation.

'Òr Treasure' 2022

The company is continuing to pursue funds to support the writing and development of Ariel Killick's new project 'Òr Treasure' a Gaelic medium storytelling piece about her ancestors' journey to Australia and her subsequent return as a highland diaspora returnee.

'The Unseen Child' 2022

We are currently editing the on demand digital adaptation of the recording with an aim to tour this digitally to Scottish schools in February 2022.

'Associate playwright pantomime opportunity'

We predict that Zoë Bullock will complete her commission by September 2021 and presentation of the pantomime will happen either in person or digitally. We plan to continue developing this opportunity in 2022 by commissioning another writer to create an adaptation of 'Jack and the Beanstalk'.

'Plop! In the Ocean' 2022

We are planning on touring 'Plop! In the Ocean' to Scottish schools in April 2022 if restrictions allow.

Other activities

The company will continue to offer continuing professional development to core staff members. Stephanie Black-Daniels will undertake a General Management workshop with LVL/UP in November 2021 with Aysha Powell of Punch Drunk and Thomas McCulloch will undertake a Producing workshop with Francesca Moody. We will continue to stay responsive to opportunities as they emerge and provide support for freelancers and the wider sector within the means of our resources.

Further future plans

Other aims of the company are to situate ourselves as a hyperlocal company engaging more with our immediate community in Govan, Glasgow. We will continue to appraise and adapt our method of touring to promote and increase environmental sustainability within our practice and continue to develop our equality policies and practices to diversify the practitioners we work with to represent and reflect our broad community and audiences we perform for within schools.

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.

Organisational structure

The Board of Trustees hold regular meetings to review all aspects of the operation of the charity. The charity ensures that new trustees have skills that will complement the existing structure of the board and ensure that they are familiar with the practical work of the charity. They are also given training and induction when they join the board.

As set out in the articles of Association the maximum number of Trustees is 20. One third of directors must retire from office at the Annual General Meeting but can be re-elected.

A member may nominate themselves or another for consideration for election as a trustee. The election process will take place at the Annual General Meeting.

The trustees may at any time appoint any member (providing they are willing to act) to be a trustee, either to fill a vacancy or as an additional trustee.

Related parties

In so far as it is complimentary to the charity's objects, the charity is guided by both local and national policy. The representation of local organisations within this group has proved invaluable to the charity in establishing improved links within the community and identifying relevant policy developments and prospective funding.

Risk management

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC151359 (Scotland)

Registered Charity number

SC022633

Registered office

7 Water Row

Govan

Glasgow

G51 3UW

Trustees

Mr J Gallagher Cultural Co Ordinator (Chair)

Mrs D Hannon Photographer (Treasurer)

A McMillian Technical Theatre Skills Officer

Company Secretary

S Black-Daniels

Independent Examiner

Sue Nicolson

ACMA CGMA

Nicolson Accountancy

Trinity House

31 Lynedoch Street

Glasgow

G3 6EF

Approved by order of the board of trustees on 24 February 2022 and signed on its behalf by:

Mr J Gallagher - Trustee

I report on the accounts for the year ended 31 July 2021 set out on pages eleven to eighteen.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

Basis of the independent examiner's report

My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. 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 seeking explanations from you as 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 view given by the accounts.

Independent examiner's statement

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

(1)	which gives me reasonable cause to believe that, in any material respect, the requirements

-	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 accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations

have not been met; or

(2)	to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Sue Nicolson

ACMA CGMA

Nicolson Accountancy

Trinity House

31 Lynedoch Street

Glasgow

G3 6EF

10 March 2022

31.7.21

31.7.20

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

30

-

30

-

Charitable activities

Arts Promotion

-

-

-

123,104

Other trading activities

2

84,425

-

84,425

46,169

Investment income

3

2

-

2

-

Total

84,457

-

84,457

169,273

EXPENDITURE ON

Charitable activities

Arts Promotion

53,332

-

53,332

155,347

NET INCOME

31,125

-

31,125

13,926

RECONCILIATION OF FUNDS

Total funds brought forward

68,399

-

68,399

54,473

TOTAL FUNDS CARRIED FORWARD

99,524

-

99,524

68,399

31.7.21

31.7.20

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

7

3,811

-

3,811

1,120

CURRENT ASSETS

Debtors

8

22,075

-

22,075

3,481

Cash at bank and in hand

87,828

-

87,828

64,870

109,903

-

109,903

68,351

CREDITORS

Amounts falling due within one year

9

(14,190

)

-

(14,190

)

(1,072

)

NET CURRENT ASSETS

95,713

-

95,713

67,279

TOTAL ASSETS LESS CURRENT LIABILITIES

99,524

-

99,524

68,399

NET ASSETS

99,524

-

99,524

68,399

FUNDS

10

Unrestricted funds

99,524

68,399

TOTAL FUNDS

99,524

68,399

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 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 24 February 2022 and were signed on its behalf by:

Mr J Gallagher - 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.

Plant and machinery

-

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.

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

31.7.21

31.7.20

£

£

Rehearsal and costume hire

760

3,220

Other income

8,948

21,798

JRS Grant

14,869

11,151

Covid Related Grant Income

59,848

10,000

84,425

46,169

3.	INVESTMENT INCOME

31.7.21

31.7.20

£

£

Deposit account interest

2

-

4.	NET INCOME/(EXPENDITURE)

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

31.7.21

31.7.20

£

£

Depreciation - owned assets

1,270

373

5.	TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

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

6.	STAFF COSTS

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

31.7.21

31.7.20

Support

1

1

Management

2

2

3

3

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

7.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST

At 1 August 2020

21,257

Additions

3,961

At 31 July 2021

25,218

DEPRECIATION

At 1 August 2020

20,137

Charge for year

1,270

At 31 July 2021

21,407

NET BOOK VALUE

At 31 July 2021

3,811

At 31 July 2020

1,120

8.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.21

31.7.20

£

£

Prepayments

22,075

3,481

9.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.21

31.7.20

£

£

Social security and other taxes

-

73

Deferred income

13,297

150

Accrued expenses

893

849

14,190

1,072

10.	MOVEMENT IN FUNDS

Net

movement

At

At 1.8.20

in funds

31.7.21

£

£

£

Unrestricted funds

General fund

68,399

31,125

99,524

TOTAL FUNDS

68,399

31,125

99,524

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

84,457

(53,332

)

31,125

TOTAL FUNDS

84,457

(53,332

)

31,125

Comparatives for movement in funds

Net

movement

At

At 1.8.19

in funds

31.7.20

£

£

£

Unrestricted funds

General fund

54,473

13,926

68,399

TOTAL FUNDS

54,473

13,926

68,399

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

169,273

(155,347

)

13,926

TOTAL FUNDS

169,273

(155,347

)

13,926

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

Net

movement

At

At 1.8.19

in funds

31.7.21

£

£

£

Unrestricted funds

General fund

54,473

45,051

99,524

TOTAL FUNDS

54,473

45,051

99,524

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

253,730

(208,679

)

45,051

TOTAL FUNDS

253,730

(208,679

)

45,051

11.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 July 2021.