Bath Arts Workshop Limited - Charities report - 18.1

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 2018

FOR

BATH ARTS WORKSHOP LIMITED

BATH ARTS WORKSHOP LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2018

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 13

BATH ARTS WORKSHOP LIMITED (REGISTERED NUMBER: 01114273)

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2018

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 2018. 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 2015).

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

During the year significant activities contributing to these objectives were:

- implemented the first year of the 2017-20 Business Plan

- continued the second year of the three-year commission to provide costumed interpretation at the Roman Baths

- won a 12 month commission to provide Arts Services in Somer Valley for BNES

- the company furthered international touring.

- collaborated with Bath Festivals Trust, Bath Fringe Festival, Jane Austen Festival

- developed links for future collaborative wok

- staff changes: the company employed another 5 new actors, and brought in 2 part-time staff. The Company

Administrator was promoted to Company Manager.

- continued the process of improvements and renovations to the building

- hired out the studio more often.

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

- studio and building hire

- Heritage Lottery Fund

- donations from local business and individuals.

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

- increasing corporate bookings through better booking strategies and more efficient systems.

Future plans

Our future plans are:

- to increase income and decrease fixed costs, with an aim to break even each year in cash terms

- seek project funding from Arts Council and other bodies

- make suitable repairs to the building

- organise tours UK and worldwide

- continue to consolidate education/participation strands

- continue marketing drive.

RESERVES

The trustees have decided that a minimum of £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.

The amounts in the reserves policy will be reviewed after draft yearly accounts are shared. The details of the policy

will be reviewed at least every 5 years or on an ad hoc basis should the Trustees feel review is required.

At the end of the year, the charity had unrestricted net current assets of £162,543.

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 M Vick

- resigned 4.10.17

A D Wright

- resigned 27.11.18

S A Mccluskey

R G Lister

- resigned 10.9.18

O J Norton

- appointed 20.7.17

D J Looman

- appointed 23.8.17

V F Hitchman

- appointed 8.9.17

P B Eccleson

- appointed 29.6.18

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 2018 show a surplus of £3,160. After taking

into account all sources of income, and not including the depreciation of the building, the surplus was £12,160.

During the year, the company received £465 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. After previous year losses, in 2012/13 and 2013/14, following the withdrawal of substantial levels

of Arts Council and local authority funding, the Board has implemented strategies to match income to costs to

secure the long term future of the Company.

In 2018-19 the Board has agreed to invest some of its reserves into development projects for the company.

Additionally, funds have been designated to offset the negative economic impact of the UK's withdrawal from the

EU, therefore it is expected that the Company will show a loss in the 2018-19 financial year, including the

depreciation of the building and fixed assets.

Approved by order of the board of trustees on 3 December 2018 and signed on its behalf by:

D J Looman - Trustee

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

BATH ARTS WORKSHOP LIMITED (REGISTERED NUMBER: 01114273)

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 2018.

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

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies

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

18 December 2018

BATH ARTS WORKSHOP LIMITED

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2018

2018

2017

Unrestricted funds

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

464

11,081

11,545

20,410

Charitable activities

Performing income

284,449

-

284,449

240,023

Other trading activities

2

55,007

-

55,007

47,716

Investment income

3

19

-

19

26

Other income

-

-

-

81,705

Total

339,939

11,081

351,020

389,880

EXPENDITURE ON

Raising funds

12,943

-

12,943

11,459

Charitable activities

Production expenses

178,943

7,804

186,747

177,254

Touring expenses

18,541

805

19,346

16,780

Administration

99,386

3,989

103,375

72,154

Overheads

24,386

-

24,386

36,384

Other

4

1,063

-

1,063

1,038

Total

335,262

12,598

347,860

315,069

NET INCOME/(EXPENDITURE)

4,677

(1,517

)

3,160

74,811

RECONCILIATION OF FUNDS

Total funds brought forward

814,303

124,592

938,895

864,084

TOTAL FUNDS CARRIED FORWARD

818,980

123,075

942,055

938,895

BATH ARTS WORKSHOP LIMITED (REGISTERED NUMBER: 01114273)

BALANCE SHEET

AT 31 MARCH 2018

2018

2017

Unrestricted funds

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

9

717,639

99,301

816,940

806,965

CURRENT ASSETS

Debtors

10

16,424

-

16,424

18,044

Cash at bank and in hand

107,122

23,774

130,896

122,633

123,546

23,774

147,320

140,677

CREDITORS

Amounts falling due within one year

11

(22,205

)

-

(22,205

)

(8,747

)

NET CURRENT ASSETS

101,341

23,774

125,115

131,930

TOTAL ASSETS LESS CURRENT LIABILITIES

818,980

123,075

942,055

938,895

NET ASSETS

818,980

123,075

942,055

938,895

FUNDS

12

Unrestricted funds:

General fund

162,543

147,232

Designated fund

656,437

667,071

818,980

814,303

Restricted funds

123,075

124,592

TOTAL FUNDS

942,055

938,895

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31 March 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended

31 March 2018 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 special provisions of Part 15 of the

Companies Act 2006 relating to charitable small companies.

The financial statements were approved by the Board of Trustees on 3 December 2018 and were signed on its behalf by:

D J Looman -Trustee

BATH ARTS WORKSHOP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2018

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 2015)', 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

- 25% 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

2018

2017

£

£

Sundry income

55,007

47,716

3.	INVESTMENT INCOME

2018

2017

£

£

Bank interest received

19

26

4.

OTHER

2018

2017

£

£

Accountancy

550

525

Independent examination

500

500

Sundries

13

13

1,063

1,038

5.	NET INCOME/(EXPENDITURE)

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

2018

2017

£

£

Depreciation - owned assets

18,623

16,591

Deficit on disposal of fixed asset

255

-

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2018 nor for the year

ended 31 March 2017.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2018 nor for the year ended

31 March 2017.

7.	STAFF COSTS

Staff costs :

2018 2017

£ £

Salaries and fees 257,922 240,173

Social security costs 3,815 3,097

Total 261,737 243,270

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 (2017 - 47 part time and 2 full time)

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

8.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted funds

Restricted fund

Total funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

6,558

13,852

20,410

Charitable activities

Performing income

240,023

-

240,023

Other trading activities

47,716

-

47,716

Investment income

26

-

26

Other income

81,705

-

81,705

Total

376,028

13,852

389,880

EXPENDITURE ON

Raising funds

11,459

-

11,459

Charitable activities

Production expenses

161,718

15,536

177,254

Touring expenses

16,351

429

16,780

Administration

71,221

933

72,154

Overheads

33,980

2,404

36,384

Other

1,038

-

1,038

Total

295,767

19,302

315,069

NET INCOME/(EXPENDITURE)

80,261

(5,450

)

74,811

RECONCILIATION OF FUNDS

Total funds brought forward

734,041

130,043

864,084

TOTAL FUNDS CARRIED FORWARD

814,302

124,593

938,895

9.	TANGIBLE FIXED ASSETS

Freehold property

Improvements to property

Motor vehicles

Equipment

Totals

£

£

£

£

£

COST

At 1 April 2017

650,000

234,908

17,075

119,074

1,021,057

Additions

-

-

25,321

3,983

29,304

Disposals

-

-

(17,075

)

-

(17,075

)

At 31 March 2018

650,000

234,908

25,321

123,057

1,033,286

DEPRECIATION

At 1 April 2017

63,000

20,767

16,369

113,956

214,092

Charge for year

9,000

4,698

2,635

2,290

18,623

Eliminated on disposal

-

-

(16,369

)

-

(16,369

)

At 31 March 2018

72,000

25,465

2,635

116,246

216,346

NET BOOK VALUE

At 31 March 2018

578,000

209,443

22,686

6,811

816,940

At 31 March 2017

587,000

214,141

706

5,118

806,965

10.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

10,000

12,597

Other debtors

674

-

Prepayments

5,750

5,447

16,424

18,044

11.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

2,168

-

Social security and other taxes

2,061

1,715

VAT

7,365

5,021

Other creditors

1,029

654

Accrued expenses

1,357

1,357

Deferred income

8,225

-

22,205

8,747

12.	MOVEMENT IN FUNDS

At 1.4.17

Net movement in funds

At 31.3.18

£

£

£

Unrestricted funds

General fund

147,232

15,311

162,543

Designated fund

667,071

(10,634

)

656,437

814,303

4,677

818,980

Restricted funds

Restricted funds

124,592

(1,517

)

123,075

TOTAL FUNDS

938,895

3,160

942,055

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

339,939

(324,628

)

15,311

Designated fund

-

(10,634

)

(10,634

)

339,939

(335,262

)

4,677

Restricted funds

Restricted funds

11,081

(12,598

)

(1,517

)

TOTAL FUNDS

351,020

(347,860

)

3,160

Comparatives for movement in funds

At 1.4.16

Net movement in funds

At 31.3.17

£

£

£

Unrestricted Funds

General fund

138,041

9,191

147,232

Designated fund

596,000

71,071

667,071

734,041

80,262

814,303

Restricted Funds

Restricted funds

130,043

(5,451

)

124,592

TOTAL FUNDS

864,084

74,811

938,895