SHOWCASE_THE_STREET - Accounts

The trustees present their annual report and financial statements for the year ended 31 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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)" (effective 1 January 2019).

Policies and objectives

The purpose of the charitable company are:

To promote, maintain, improve and advance the children, young people and adults, the health of the residents in the area which the charitable company operates and the improvement of the opportunities for educationally, socially and rurally disadvantaged by all appropriate means and particularly by encouragement of the Arts including the arts of drama, dance, music, singing, literature and visual arts and encourage public participation in sport (and sport means sport which involves physical skill and exertion) thereby improve the conditions of life and the community spirit of the inhabitants of the area.

We endeavour to ensure the communities that we serve can and do have access to our activity and neither financial hardship or rural exclusion would prevent them from taking part we are also keen to use our activities to support people through difficult periods in line and use them as tools to develop positive pathways they can follow.

Activities for achieving objectives

To ensure we can put these strategies into action our work follows three main streams, these being community classes and shows, educational programmes and growth around our own premises and buildings.

Review of activities

2022 continued to be a huge challenge for Showcase the Street and all charities in Scotland as we tried to balance our important provision of services with also ensuring the charity continued to be sustainable as we moved out of lockdowns and restrictions due to the COVID pandemic.

During the year we have continued to provide services virtually where required including dance classes across Dundee, Angus and Perth and Kinross. In the Tech Hub we supplemented our equipment with new Augmented Reality equipment thanks to funding from the Leng Charitable Trust. The Tech Hub provides so many opportunities including the development of employment courses and new links with Dundee and Angus College. One such Employability course run with young people from Angus saw half that cohort start on new HNC Games Design courses at the college.

It was also good to see our Dance Show again after Covid with hundreds of audience members coming to watch their youngsters. The show again gave us the chance to also showcase the talents of our many young volunteers who support the charity.

Our Dundee building continues to be busy and a great community space housing everything from arts charities to Veterans projects.

Moving into 2023 we will see new developments in a partnership fashion project aimed at Young Girls and we also hope to have new facilities within the building to support this.

We’d also like to thank all our staff, including some who left us after ten years to pursue new careers and we welcome new staff as well in areas of dance and management. Also we’d like to thank our Trustees who support the management of our charity. 

Review of financial position

At the year end the charity holds £162,342 (2021 - £218,358) in reserves, of which £95,772 is unrestricted and of this free reserves not invested in fixed assets or designated amount to £53,688 (2021 - £65,311). No amounts have been designated. The funds at the end of the year put the charity in a strong position as we start 2022/23.

The Trustees regularly monitor the level of unrestricted funds as these are vital in allowing flexibility in our work.

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Reserves policy

Reserves are held to bridge the gap between the spending and receiving of free income and to cover unplanned emergency repairs and other expenditure. The Trustees' ideal level of free reserves at 31 December 2022 would be £10,000 (2021 - £10,000). The current level of unrestricted reserves exceeds this.

Constitution

Showcase the Street is a company limited by guarantee governed by is Memorandum and Articles of Association dated 26 July 2005. It is registered as a charity and company in Scotland (charity number SC035025). Anyone over the age of 16 who supports the aims of the charitable company can become a member, there are currently four members each of whom agrees to pay £1 in the event of the charitable company winding up. There is no subscription fee to become a member.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Method of appointment or election of Trustees

As set out in the Articles of Association, appointment of Trustees is carried out at the annual AGM and minimum of three Trustees must exist to allow the charity to function. Office bearers to include a Chair and a Vice Chair must be appointed each year within these Trustees.

Policies adopted for the induction and training of Trustees

Any new Trustees will undergo a training and orientation day to brief them about legal obligations under charity and company law, and inform them of the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the charity. During induction they will meet key staff and other Trustees. Where relevant and appropriate Trustees are encouraged to attend local and national training events as well as being sent regular briefs by e-mail on updates and changes in practices and or legislation that may affect the charity as well as wider information bulletins on our areas of work. We also encourage Trustees to attend regular staff meetings and visit projects in other areas again where their own time allows.

Key management personnel

The Trustees consider the board of Trustees to be the key management personnel of the charitable company. None of the Trustees were employed by the charitable company in the year and so no Trustee received remuneration, nor did they receive any expenses.

Organisational structure and decision making

The Board of Trustees administers the charitable company, they meet normally on a four monthly to quarterly basis. At present Showcase the Street has a senior manager who has delegated authority in areas such as staffing and practice as well as certain budgets where relevant.

The trustees' report was approved by the Board of Trustees.

I report on the financial statements of the charitable company for the year ended 31 December 2022, which are set out on pages 5 to 24.

The charitable company’s trustees, who are also the directors of Showcase the Street for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the 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 financial statements.

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

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 financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The notes on pages 9 to 24 form part of these financial statements.

The notes on pages 9 to 24 form part of these financial statements.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2022.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Showcase the Street is a private company limited by guarantee incorporated in Scotland. The registered office is Unit 6, Manhattan Works, Dundonald Street, Dundee, DD3 7PY.

The financial statements have been prepared in accordance with the charitable company's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charitable company is a Public Benefit Entity as defined by FRS 102.

The charitable company has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Grants and other income received towards capital expenditure are credited to the statement of financial activities in the year to which they relate.

Government and other grants towards revenue expenditure are credited to revenue in the year to which they relate.

Sublet income is recognised once the charitable company has entitlement to the income.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Concessionary loans

Concessionary loans are initially recognised and measured at the amount received, with the carrying amount adjusted in subsequent years to reflect repayments and adjusted if necessary, for any impairments. The loan from The Energy Savings Trust Limited constitutes a concessionary loan.

In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence.

Fixed assets are also assessed as to whether there are indictors of impairment. This assessment involves consideration of the economic viability of the purpose for which the asset is used.

Wages are allocated across projects both on a direct basis and a percentage basis, Where salaries are funded, the allocation of wages is direct. For employees involved in more than one project, the trustees allocate salaries on a percentage basis.

Grants

Charitable Income

Charitable Income

Dance, workshops, studio hire

VR

Football and pitch hire

Sublet, office and meeting rooms

Charitable Expenditure

Charitable Expenditure

Tuition & show expenses

Refreshments & party food

Hire of equipment

Repairs & equipment

Freelance tutors

Office costs

Rent, rates & insurance

Premises expenses

Other professional fees

Bank charges

Loan interest

Subscriptions

Miscellaneous expenses

Motor & travel

Bad debts

The average monthly number of employees during the year was:

A bounce back loan was received in the year to 31 December 2020 amounting to £50,000. It has an outstanding balance at 31 December 2022 of £35,000 (2021 - £45,000) which is repaid in monthly instalments of £833.33 and carries a fixed interest rate of 2.5% per annum.

Jessica Scotland Trust loan has an outstanding balance at 31 December 2021 of £27,456 (2021 - £35,484) which is repaid in monthly instalments of £736 and carries an annual fixed interest rate of 6.5%.

A loan was received in the year to 31 December 2018 from the Energy Saving Trust Limited amounting to £9,181. It has an outstanding balance at 31 December 2022 of £4,370 (2021 - £5,510) which is repaid in monthly instalments of £95 and carries no interest.

At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

At the reporting end date the charitable company had contracted with sub-let tenants for the following minimum lease payments:

During the year the charitable company entered into the following transactions with related parties:

Name: Community Warehouse Limited (SC475448)
Nature of relationship: Fergus Storrier, a charity trustee, is also a director of the above named company.
The transaction: During the year, the charity paid the above named company a total of £29,500 (2021 - £25,500) for consultancy services provided.

Name: Baby Sensory
Nature of relationship: Claire Puzey, a charity trustee, runs this business within the charity's premises.
The transaction: During the year, the charity received a total of £6,424 (2021 - £3,543) for studio hire.