Charity Registration No. 1000855 Company Registration No. 02535169 {England and Wales) GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU CONTENTS Page Trustees report Independent examiner's report Slalemenl of financial activities Balance sheet 12 Slalemenl of cash flows 13 Notes to the financial statements 14-25 GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2021 The trustees present their report 8nd accounts for the year ended 31 Msrch 2021. The financial slalemenls have been prepared in acwrdance with the accounting policies sel out in note 1 to the financial ststements and comply with the charity's Igoverning documentl, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordan￿ with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 leffectDie 1 January 20191" Objective8 and activities Vision EXTRAORDINARY BALLET ATTHE HEART OF ACREATIVE NATION Mission WE VVILL DELIVER OUTSTANDING PERFORMANCES AND LIFE CHANGING ENGAGEMENT IN CREATIVE AND IMAGINATIVE WAYS. WE VWLL BE ADVOCATES FOR EXCELLENCE, SUSTAINABILITY AND INCLUSION IN BALLET Values WE ARE INNOVATIVE IN OUR THINKING INCLUSIVE IN OUR VISION AND INSPIRATIONAL IN OUR DELIVERY Objects To provide, maintain, improve and advance the education of the public in the arts and sciences. In particular the art and science of dance by the presentstion of public performances and other similar activities. About tha Company Ballet Cymru is an international touring ballet Company for Wales, committed lo inclusion and innovation in dance and classical ballet, and to the highest standard of collaboration. The Company produce original professional dance performances based in the ballet technique, which tour nationally and inlernalionally. Ils extensive Access and Outreach programme is committed lo breaking down barriers to accessing the arts. Company Resources Staff Ballet Cymru has an Artisti¢ Director and Assistant Artistic Director who both lead the Company and choreograph most of the work on a team of dancers. The Artistic Directors are supported by three full-time staff.. an Administrator, an Access and Outreach Officer and a Project Manager. as well as a part lime Communications Officer. The Company contracts nine or ten dancers and bNo or three Technicians on temporary contracts for up to 30 weeks every year, undertaking hNo louring periods. The Company have also taken on two volunteers who help raise the Company profile, in particular lo seek Royal Patronage. Board The Artistic Directors report lo a Board of Directors led by the Company's new Chair Jen Angharad, and regularly refresh their Board with the help of Arts and Business Cymru's 'Board Bank, scheme. Ballet Cymru also has a number of high profile patrons who offer support and help. Company Promises The Company moved into their first premise in Rogerstone, Newport in 2014 which houses dance studios, offices and storage space. The acquisition and major refurbishment programme was made possible through the support of funders including The Arts Council of Wales Lottery Division, The Garfield Weston Foundation, The Foyle Foundation, The Wolfson Foundation and The Linbury Trust. GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2021 Artistic Activity Ballet Cymru produce one or bNo full-lenglh productions per year, or one full length work and a double or triple bill of new work. One of the productions is a co-production with The Riverfront Theatre who help with lighting design and give the Company a production week in the theatre. Ballet Cymru continue lo seek out and work with companies and artists of the highest calibre. Public benefit We have referred lo the guidan￿ contained in the Charity Commissions, general guidance on public benefit when reviewing our aims and objectives and in planning future activities. In particular, the Iruslees consider how planned activities will contribute lo the aims and objectives they have set. Achievements and perfomiance Ex iv mm For Ballet Cymru, like everyone in the creative industries, 2020-21 was a very tough year. The combination of Brexit and the Covid-19 Pandemic meant hard decisions and large cuts in earned income. Ballgt Cymru's priority over this tim& has beèn to remain stablo as an organisation, whilo at tha samg time helping as mu¢h as possible its large cohort of freelance dancers. designers. technicians, and tutors. In this, the company have been very successful. There is no doubl that being Arts Portfolio Wales clients of the Arts Council of Wales has been central in being able lo maintain OLJr core activities and pay our five PAYE staff. Over this period Ballet Cymru did not have to furlough any staff and has maintained ils premises and studios. More than that, this has meant that throughout the year Ballet Cymru were able to adapt, offer work online and Zoom support lo its 100's of professionsl dancers, young professional dancers and associates. Working to help and maintain ils core stakeholders. Ballet Cymru is very proud that il responded quickly and continued lo support its Paul Hamtyn Foundation Funded Duets students, who potentially could be most vulnerable during the exceptional year. The Company delivered a record-breaking Summer Dan￿ programme, all on Zoom, with participants from all over the world, generating £3k in income. Closure of theatres meant the can￿lIatIOn of the entire year of touring. lack of studio hire and cancelled education work resulted in lost income estimated al £180k. This income would usually be used lo engage dan￿rS and technicians lo tour, so again the freelancers were the hardest hil by the closures and inability to tour. Three Arts Council of Wales Covid-19 Relief Grants have been vital in helping mitigate this and have offered the freelance dancers substsnlial creative work, helping them lo maintain their fitness and artistry. Ballet Cymru worked with choreographer Marcus Jarrell Willis in various slates of Covid-19 restrictions, for bNo Arts Council of Wales funded projects and prodU￿d exceptional digitsl work that will be premiered on our new website in 2021. It also enabled the Company to transform one of ils unused spa￿$ into a new dan￿ studio allowing greater social distancing for more people. The freelance company dan￿[5 also created beautiful and haunting lockdown work. which will also be shi)wcased on Ballet Cymru's website. Ballet Cymru also received significant funding from the Garfield Weston Foundation lo build news ways of working through an online Digitsl Stage. That work will continue into 2022 and beyond. GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2021 2020-21 saw Ballet Cymru remain stable as an organisation and Contribute positively by helping to maintain its large base of stakeholders and be active in seeking new income streams and ways of working. Ballet Cymru now produce work online as part of a new Dlgltal Stage and can adapt It8 productions for open air and site-specific locations. Lack of touring has meant a con801idation of its resources and a healthy increase in its Reserves. The company is in good shape to bounce back from the Pandemic and Brexit challenges and is ready to start to bulld Its earned Income agaln. once theatres and audlences are ready to engage safely. Details of any other significant changes in the past financial year.. Trustees R M Till, MBE resigned as Chair on 291912020 J Angharad was appointed Chair 1411012020 S E Bradley appointed Vice Chair 23111120201 F Creedon resigned as VI￿ Chair on 2311112020 S Cash resigned as Trustee on 2311112020 Primary sources of funding in the year as detailed in notes 3-6 and 18 include the following'.- Arts Council of Wales- Core Funding of £255,152. Arts Council of Wales- Training restricted funding of £12,420. Arts Council of Wales- Collaborations restricted funding of £19,297. Arts Council of Wales- Creative Agent restricted funding of 1,750. Arts Council of Wales- COVID-19 funding £22,500. Arts Council of Wales- Cu￿Ural Recovery funding of £41,477 for partitioning of the studio. Garfield Weston funding which is a three year project starb.ng in 201812019 totalling £75,000 with £25,000 relating lo each financial year. The funding continued to March 2021. Garfield Weston also provided £100,000 of funding for the Digitsl Stage, £98,000 of this will be carried forward into 2021122 within restricted funds. Paul Hamlyn Foundation funding of £72,000 for DUETS more and Beller programme Moondance Foundation- COVID-19 funding of £20,000 and £10,500 towards production costs. Linbury Trust funding of £30,000 towards costs of new dance floor. Colwinslon Trusts funding of £10,000 towards production costs. GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2021 Financial review The charity made an unrestricted surplus for the period of £78,406 12020.. £42,867 surplus) and a restricted surplus of £104,62812020'. £26,894 surplus). Rgsgrvgs Flee reserves, which exclude restricted funds and fixed assets, was £196,210 al the year-end 12020.. £116,058). The target for our reserves is currently estimated as six months of core operating costs. This is approximately £100K. w￿lIst the free reserves figure of £196K is above our target of £10DK for 6 months costs. given the significant reduction in touring income and changes in funding opportunities, coupled with the ongoing Covid restrictions, we remain cautious. We anticipate 2022 will be a very challenging year for us, and therefore consider the reserves figure lo be appropriate lo ensure the stability of the company and protect against any uncertainties, as well as working towards achieving the charity's strategic objectives Restrlcted capltal funds The restricted capital funds detailed in Note 18 of £532,048 represent the capital purchase of the building in 2013 and the subseqLJent refurbishment of the building and purchase of other capitsl assets. The capffcal items are being depreciated over their useful economic lives. Restricted revenue funds that were unspent a131 March 2021 were £168,514. These will be spent in the following financial year on specrfic projects. Investment policy Gwenl Ballet Theatre Limited recognises that il will be holding funds throughout the year to finance its operations and its reserves policy. Therefore il has reviewed ils investment policy and for the present lime will endeavour lo maximise its income only through guaranteed capital and interest generating safe investrnenls. This investment strategy also supports the current ewnomic situation. This will be annually reviewed. GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2021 Plan8 for the future Ballet Cymru have detailed and specific plans to return lo perfoming and engaging with communities during 2021, which will increase the charity's unrestricted Income levels following a difficult sales period. GISELLE In May we will begin rehearsals for our new production of Giselle, with strict risk assessments in place. We hope lo return to the stage at Lichfield Cathedral as part of the Lichfield Arts Festival in July. As Covid-19 restrictions ease and venues reopen, we are hopeful that we can relum lo touring with Giselle and start earning income again and have booked a 10-week tour from September to December 2021. WALES SUMMER DANCE We are oplimisli¢ that we Can deliver al least part of Wales Summer Dan￿ in person. again adhering lo strict Covid procedures and currènt Government guidance. PRE-PROFESSIONAL PROGRAMME We hope to start back with the Pre- Professionals in September and recruited a full cohort with a waiting list. ASSOCIATES In May we ran our first in person Associate sessions using social distancing and Covid protocols. It was great to have the young dancers back in the studio and are planning lo return lo 'in person. luilion for the Associates in the autumn. RESOURCES Ballet Cymru's resilience during the pandemic Is reflected in the fact that the Company has maintained all payrolled staff and no one was put on furlough. In addition we offered company dancers ongoing support through remote working and developing our online presen￿ through digital channels, which was a great success and created new opportunities for the Company lo reach wider and more diverse audiences. Our organisational development plans will include the appointment of choreographer Marcus Jarrell Willis, as Resident Choreographer lo the company, who will be creating a work for film. We have plans to further diversify resour￿$ throughout the organisalion. Ballet Cymru is excited about the future and, we feel, well placed to recover from the pandemic. Inde&d we are planning to Come back batter than ever. with a fonNard thinking and r&$ilient now Business Plan in September 2021 which will detail the Company's growth plan for the next 5 year8. Structure. governance and management GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2021 Govorning documont Ballet Cymru is a company limited by guarantee (number 025351691 and established under a Memorandum of Association which establishes the objects and powers of the charitable company and is governed under its Articles of Association lupdaled in June 20161 and constilulion, and also a registered charity (number 10008551. Established in 1986 the Company startèd receiving project funding in 2003 and became a Revenue client of The Arts Council of Wales in 2011. Structure and Management The company had eight trustees for the period. They provided management, legal, educational and commercial business expertise. The Iruslees were instructed on their roles and responsibilities as a trustee. Kgy Managgmont Personngl Darius James -Artls1ic Director Amy Doughty -AssistanlArtistic Director Jenny Isaacs -Adminislralor The key management of the organisation listed above are employed in accordance with the local authority and The Charity Commission. Terms of employment of key personnel were set, based on advice given by Arts Council of Vvales and other stakeholders, and are comparable with other similar arts organisations. Related parties As far as the trustees are aware no related party Iransadions occurred during the current or previous year. Risk management The company has reviewed the major risks lo the organisation and have systems and procedures in place to manage these risks.. Risks Ch8nges in Resources Step$ taken Adapting organisalion structure of the organisalion, improving efficiencies through training and Identify areas of development. Reduction in Funding Seeking new income streams and building relations with existing funders to sustain levels of activity. Economic instability Anlicipaling changes in the economy and adapting lo changes in government policy. and responding to new regulations on Iwal and international levels. Reductions in in level of income Reviewing levels of income acquired through national touring and other aclivilies, identifying new audiences and increasing reach of engagement and participatory projects. GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2021 Reference and administrative details Registered charity name Gwenl Ballet Theatre Limited Also known as Independent Ballet Wales Ballet Cymru Registered charity number 1000855 R9gi$t*rod company numbgr 02535169 Registered office Unil 1 Wern Tr8ding Eslale Rogerslone Newport South Vvales NP10 9FQ Tru$tge$lDirectors R M Tlll, MBE IChair)- resigned 291912020 J Angharad (Chairl appointed 1411012020 J D Greenidge F Creedon IVi¢e Chairl - resigned 2311112020 S Cash resigned 2311112020 S E Bradley (VI￿ Chairl - appointed 2311112020 G Rees CJBall Company Secretary D James Chigf Exg¢ulivg Offi¢grlDirg¢tor D James Bankers Lloyds Bank plc 42 Commercial Street Newport South Wales NP19 1VVX Natwest Bank 19 Cardiff Road Caerphilly CF83 9FQ Independent examiner Sarah Case FCA DChA Azets Audit Servies Ty Detw Lime Tree Court Cardiff Gale Business Park Cardiff CF23 8AB The trustees report was approved by the Board of Trustees. GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2021 Angharad Trustee Dated 29.11.2021 GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2021 The Iruslees, who are also the directors of Gwenl Ballet Theatre Limited for the purpose of comp8ny18w, are responsible for preparing the Trustees Report and the financial statements in accordan￿ with applic2ble law and United Kingdom Accounting Standards Iuniled Kingdom Generally Accepted Accounting Praclicel. Company Law requires the Iruslees to prepare financial slalements for each financial year which give a true and fair view of the stste of affairs of the charity and of the incoming rèsources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the Iruslees are required lo.. select suitsble accounting policies and then apply them consistently., obseNe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., and prepare the financial slalemenls on the going concern basis unless il is inappropriate to presume that the charity will continue in operation. The Iruslees are responsible for keeping adequate accounting records that disclose with reasonable accuracy al any lime the financial position of the Charity and enable them lo ensure that the financial slalements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detedion of fraud and other irr￿ularItie$. GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF GWENT BALLET THEATRE LIMITED I report to the trustees on my examinats.on of the financial slalements of Gwenl Ballet Theatre Limited (the charity) for the year ended 31 March 2021. Rgsponsibilitigs and basis of report As the Iruslees of the charity land also its directors for the purposes of company lawl you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 Ithe 2006 Actl. Having satisfied myself that the financial slalemenls of the charity 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 the charity's financial statements carried out under section 145 of the Charities Act 2011 Ithe 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 14515llbl of the 2011 Act. Independent examinerfs statement Since the charity's gross income exceeded £250,000 your examiner musl be a member of a body listed in section 145 of the 2011 Act. I confim that l am qualified lo undertake the examination because l am a member of Instilulue Chartered Accountants England & Vvales, which is one of the listed bodies. I have completed my examination. I confirrn that no mallers have come lo my attention in connection with the examination giving me cause to believe that in any material respect.. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act., or the financial slalemenls do not a￿Ord with those records., or the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accoLJnts give a true and fair view which is not a matter considered as part of an independent examination., or the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable lo charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021. I have no concerns and have come across no other matters in connection with the examination lo wh￿h allenlion should be drawn in this report in order lo enable a proper understanding of the financial slalemenls to be reached. Sarah Case FCA DChA Azels Audit Services 1st Decernber 2021 Dated. 10- GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021 Unre8tricted Restricted funds funds 2021 2021 Total Unreslricled Restricted funds funds 2020 2020 Total 2021 2020 Notes Donations and legacies Charitable activities Other trading activities Investments 41,452 302,409 18511 357 41,452 669,953 18511 357 37,072 400,233 38,279 37,072 649,452 38,279 367,544 249,219 Total income 343,367 367,544 710,911 475,584 249,219 724,803 enditure on-. Charitable activities 264,%1 262,916 527,877 432,717 222,325 655,042 Net incoming resourcos before tran8fer8 78,406 104,628 183,034 42,867 26,894 69,761 Gross transfers between fijnds 15001 500 Net income for the yearl Net movement in funds 77,906 105,128 183,034 42,867 26,894 69,761 Fund balances at 1 April 2020 118,304 595,434 713,738 75,437 568,540 643,977 Fund balances at 31 March 2021 196,210 700,562 896,772 118,304 595,434 713,738 The slalement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU BALANCE SHEET ASAT31 MARCH 2021 2021 2020 Notes Fixed assets Tangible assets Current assets Debtors Cash at bank and in hand 14 532,048 549,421 2,740 445,965 8,858 182,797 448.705 191,655 Cr&ditors'. amounts falling due within one year 16 {83,981} 127,3381 Net current assets 364,724 164,317 Total assets less current liabilities 896,772 713,738 Income funds Restricted funds Unrestricted fLJnds 18 700,562 196,210 595,434 118,304 896.772 713,738 The company is entitled lo the exemption from the aLJdit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021. The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the slate of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including ils income and expenditure, for the 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 lo financial statements, so far as applicable lo the company. 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 ststements have been prepared in accordan￿ with the provisions applicable lo companies subject to the sm211 companies regime. The accounts were approved by the Trustees on 29.11.2021 ngharad Chair Company Rggi$tration No. 02535169 12- GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021 2021 2020 Notes Cash flows from operating activities Cash generated from operations 21 262,811 84,452 Investing activities Investment income re￿iVed 357 Net cash generated froml(used inl investing activities 357 Net cash used in financing a¢tivitie$ Net Increase In cash and cash equlvalents 263,168 84,452 Cash and cash equivalents al beginning of year 182,797 98,345 Cash and cash equlvalènts at end of year 445,965 182,797 13- GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Accounting policies 1.1 Accounting convention The financial slalemenls have been prepared in accordan￿ with the charity's Igoveming documenll, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191 The charity is a Public Benefit Enlily as defined by FRS 102. The financial statements are prepared in slerfing, which is the functional currency of the charity. Monetary amounts in these financial slalemenls are rounded to the nearest £. 1.2 Going concam The charity reported a net inflow on unrestricted funds of £42,867 for the year including £34,620 HMRC Theatre Tax relief refund. The trustees are of the view that on this basis the Charity is a going concern and there are no material uncertainties about the charity's ability to continue as a going concem. 1.3 Charitable funds Unreslricteol funds are funds which are available for use at the discretion of the charity's members in furtherance of the general objedives of the charity and which have not been designated for other purposes. Restricted funds are subjected lo restrictions on their expenditure imposed by the donor. These ￿ndS are for use in a particular area or for specific purposes, the use of which is restricted lo that area of purpose. 1.4 Incoming resources All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonsble accuracy. The following specific policies ale applied lo particular categories of income.. Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the organisation, are recognised when the charity becomes unconditionally entitled to the grant. Donated services and facilities are included al the value lo the charity where this can be quantified. The value of services provided by volunteers has not been included in these accounts. Incoming resources from grants, where related lo performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance. Grants raceivablè Revenue grants re￿IVed are included in the Ststement of Financial Activities in the same period as the expenditure to which they relate. Capital grants are credited to restricted funds on a received basis and released to the income and expenditure account over the remaining lives of the assets to which they relate. 14- GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Accountlng pollcles {Contlnued) 1.5 Resources expended Expenditure is recognised once there is a legal or conslruclive obligation lo make a payment lo a third party, il is probable that settlement will be required and the amount of the obligation can be measured reliably. Governance costs comprise all costs involving public accountability of the charity and ils compliance with regulation and good practi￿. The charity made no redundancy payments during the reporting period. The￿ has been no offsetting of assets and liabilities, or income and expenses. Charitsble expenditure comprises those costs incurred by the charity in the delivery of ils activities and services for its beneficiaries. 11 includes both costs that can be allocated direct￿ lo such 8clivilies and those costs of an indirect nature necessary to support them. Governance These costs include the costs of governance arrangements. These include such items as independent examination, legal advice for trustees and costs associated with constilulional and slalulory requirements. 1.6 Tangible fixed assets Tangible fixed assets are initialty measured al cost and subsequently measured at cost or valuation, nel 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.. Freehold propety Equipment 2% straight line 15% reducing balance 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 net incomellexpendilurel for the year. 1.7 Impalmient of flxed assets At each reporting end dale, the charity reviews the carrying amounts of its tsngible assets to determine whether there is any indication that those assets have suffered an impaitrnenl105s. If any such iNd￿allon exists, the recoverable amount of the asset Is esb"maled in order to determine the extent of the 1m￿1rMent loss lif any). 1.8 Cash and cash aquivalents 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. 15- GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Accountlng pollcles {Contlnued) 1.9 Financial instruments The charity has elected lo 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 charity's balan￿ sheet when the charity becomes paty lo the Contractual provisions of the inslrumenl. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right lo sel off the recognised amounts and there is an intention to settle on a nel basis or lo realise the asset and settle the liability simultaneously. Basic financial assets Basic fi'nancial assets, which include debtors and cash and bank balances, are initially measured at transaction price including Ir8nsaclion costs and are subsequently carried al amortised cost using the effective interest method unless the arrangement conslitules a financing Iransaclion, where the transaction is measured at the present value of the future receipts discounted at a market rale of interest. Financial assets classified as re￿Ivable within one year are not amortised. Dere¢ognltlon of flnanclal assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are sellled, or when the Charity transfers the financial asset and subslanlially all the risks and rewards of ownership lo another entity, or if some significant risks and rewards of ownership are retained bul control of the asset has transferred to another paty that is able lo sell the asset in its entirety to an unrelated third party. Basic financial liabiliTtie$ Basic financial liabilities, including creditors and bank loans are initially recognised al transaction price Ljnless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted al a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried al 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-CLJrrent liabilities. Trade creditors are recognised initially at Irans8clion price and subsequently measured al amortlsed cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's conlraclual obligations expire or are discharged or cancelled. 1.10 Rgtirgmgnt bgnofits The charity operates a defined contribution scheme for the benefit of its employees. The assets of the scheme are held separately from those of the charity. Contributions payable are charged lo the profil and loss account in the year they are payable and are charged against unrestricted funds. 16- GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Accountlng pollcles {Contlnued) 1.11 Taxation As a registered charity, Gwenl Ballet Theatre Limited is entitled to the exemption from laxalion in respect of income and capital gains received with sections 478-489 of the Corporation Tax Act 2010 and section 256 of the Taxation of Chargeable Gains Act 1992 to the exlenl that these are applied to ils charitable objects purposes only. Critical accounting estimates and judgements In the application of the charity'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 resLJlts may differ from these estimates. The estimates and underfying assumptions are reviewed on an ongoing basis. Revisions to accounting eslimales 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 cutrenl and future periods. Donations and 1gga¢igs Unrestricted funds Total 2021 2020 Donations HMRC Theatre Tax Relief 246 41,206 2,452 34,62D 41,452 37,072 Other trading activities Unrestrl¢ted Unrestricted funds funds 2021 2020 Workshops and l-shirts 18511 38,279 17- GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Charitable activities 2021 2020 Performances Education Grants Programmes 12,926 22,131 634,896 84,139 61,403 501,595 2,315 669,953 649,452 Analysis by fund Unrestricted funds Restricted funds 302,409 367,544 400,233 249,219 669,953 649,452 For the year ended 31 March 2020 Unrestricted funds Restricted funds 400,233 249,219 649,452 Invgstmgnts Unrgstri¢tgd funds Total 2021 2020 Interest receivable 357 18- GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Charitable activities 2021 2020 Staff costs Depreciation Performances Subscriptions Accountancy 161,565 17,372 163,089 1,092 3.714 158,332 13,339 286,464 1,419 3,736 L il Advertising and marketing Repairs and rates Administrative costs Insuran Vehicle costs Other projects Travel and subsistence COVID 19 specific expenditure 26.058 109.628 11.323 4,476 858 18,351 2,361 7,340 33,508 27,666 7,584 5,159 2,007 40,503 74,675 527,227 654,392 Share of governance costs Isee note 91 650 650 527,877 655,042 Net movement in funds 2021 2020 Nel movement in funds is ststed after chargingllcreditingl Depreciation of owned tangible fixed assets 17,372 13,339 Support costs Support Governance costs costs 2021 Support Governance costs costs 2020 Independent examination fees 650 650 650 650 650 650 650 650 Anslysed between Charitable activities 650 650 650 650 Governance costs includes payments to the independent examiners costs of £65012020". £6501. 19- GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 10 Trustees None of the Iruslees received remuneration or received any other benefits from an employment with the charity or a related entity during the CLJrrent or prior period. No Iruslees expenses were incurred during the current or prior period. 11 Employegs Number of employogs The average monthly number of employees during the year was.. 2021 Number 2020 Number Production staff Adminislralion staff Employment costs 2021 2020 Wages and salaries 161,565 158,332 There were no employees whose annual remuneration was £60,000 or more. 12 Related party transactions R•mun*ratlon of key management personnel The key management personnel of the charity comprise of the trustees, the artistic director, the assistant artistic director and the administrator. The remuneration of key management personnel, is as follows. 2021 2020 Aggregate compensation 113,455 113,523 13 Company Llmlt¢d by Guaranteo The company is limited by guarantee and as such, has no shares issued. -20- GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 14 Tangible fixed assets Freehold property Equipment Total Cost Al 1 April 2020 601,854 48,150 650,004 Al 31 March 2021 601,854 48,150 650,004 Depr&clatlon and Impalrn)ent At 1 April 2020 Depreciation charged in the year 59.807 12,039 40,777 5,333 100,584 17,372 At 31 March 2021 71,846 46,110 117,956 Carrying amount At 31 March 2021 530.008 2,040 532,048 At 31 March 2020 $42,047 7,374 549,421 15 Debtors 2021 2020 Amounts falling due within one year. Trade debtors Prepayments and accrued income 1,525 1,215 2,457 6,401 2,740 8,858 16 Creditors: amounts falling due within one year 2021 2020 Not9$ Deferred income Other creditors 17 25,000 2,338 83,981 83,981 27,338 17 Govemment grants Deferred income brought forward was £25,000 relating to grant funding received in advance. During the year this was released lo the Ststement of Financial Activities being funding relating lo the 202012021finan¢ial year. 21 o01￿000￿(￿￿oo00￿o 00Tr400(DQOOOOOLfJo r O LnTI Olnr Lr)oo Z> (o O ￿￿￿LL c c c '> L)L) c c L)u(Jl o) >(i opi< GWENT BALLET THEATRE LIMITED KNOWN AS BALLET CYMRU NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 21 Analysis of net assets between funds Unrestricted funds Restricted fund$ Total Fund balances at 31 Ma￿h 2021 are represented by.. Tangible assets Current asselsllliabilities) 532,048 168,514 532,048 364,724 196,210 196,210 700,562 896,772 22 Analysis of net assets botween funds - previous yoar Unrestricted funds Restricted funds Total Fund balan￿$ al 31 March 2020 are represented by". Tangible assets Current asselsllli8bililiesl 2,245 116,059 547,176 48,258 549,421 164,317 118,304 595,434 713,738 21 Ca8h generated from operations 2021 2020 Surplus for the year 183,034 69,761 Adjustments for.. Investment income recognised in slalement of financial activities Depreciation and impairment of tangible fixed assets 13571 17,372 13,339 Movements in working capital.. Decrease in debtors Increaselldecreasel in Creditors {Decreasel in deferred income 6,119 81.643 {25.0001 38,872 12,5201 135,0001 Cash gengratgd from opgrations 262,811 84,452 -25-