## **Billericay Arts Association**
(A company limited by guarantee)
## **Report & Financial Statements for the Year Ended 31 March 2021**
## **Billericay Arts Association**
## **The Fold, 72 Laindon Road, Billericay, Essex CM12 9LD**
Billericay Arts Association is a Registered Charity No 1003508 and a Company Limited by Guarantee registered in England with No 02539543
## **Billericay Arts Association**
(A company limited by guarantee)
## **Financial Statements**
## **For the Year Ended 31 March 2021**
|**Contents**|**Page**|
|---|---|
|Report of the Management Committee|1 - 7|
|Independent Examiners’ Report|8|
|Statement of Financial Activities|9|
|Balance Sheet|10|
|Notes forming part of the Financial Statements|11 - 15|
## **Billericay Arts Association**
## **Report of the Management Committee for the year ended 31 March 2021**
The Management Committee presents its report and financial statements reviewed by Independent Accountants for the year ended 31 March 2021.
## **Reference & Administrative Information**
|Charity Name:|Billericay Arts Association|
|---|---|
|Charity registration number:|1003508|
|Company registration number:|02539543|
|Registered Office and|The Fold|
|Operational address|72 Laindon Road|
||Billericay|
||Essex|
||CM12 9LD|
|**Management Committee**||
|Mrs M White|Chairman|
|Mr P Jakes|Vice Chairman|
|Mr A Tofts|Treasurer|
|Mrs B Collins|Classes Secretary|
|Mrs M Ellis|Company Secretary|
|Mrs F Adams||
|Mr L Berger||
|Mrs J Cook||
|Mr N Davey||
|Mr P Gladwin||
|Mrs J Nash||
|Mrs P Peddar||
|Mrs M Schultz||
## **Accountants**
Michael Letch & Partners LLP, Accountants & Registered Auditors, 146 High Street, Billericay, Essex CM12 9DF
## **Bankers**
HSBC,109 High Street, Billericay, Essex CM12 9AN.
Santander UK plc, BBAM, Bridle Road, Bootle, L30 4GB
1
**Billericay Arts Association**
## **Report of the Management Committee for the year ended 31 March 2021**
## **Structure and Governance**
## Governing Document
Founded in 1979, the organisation was incorporated as a charitable company limited by guarantee on 14 September 1990 and registered as a charity on 26 July 1991. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.
## Recruitment and Appointment of Management Committee
The directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as members of the Management Committee. All Officers of the Company must be elected annually.
## Organisational Structure
Billericay Arts Association has a Management Committee which meets monthly and is responsible for the strategic direction and policy of the charity. The Committee is made up of between 10 and 20 members, which we reduced from between 15 and 25 members at the AGM of 2012. At the year end the Committee had twelve members from a variety of professional backgrounds relevant to the work of the charity.
## **Objectives and Activities**
The formal objectives of the Association are to foster and promote the maintenance, improvement and development of artistic taste and the knowledge, understanding and appreciation of the arts among the people of Billericay and neighbourhood. To achieve these objectives, had it been a normal year under review, the Association would have presented or assisted in the presentation of, public concerts, dramatic performances, recitals, art exhibitions, lectures and other arts events, as well as providing a wide range of arts classes.
2
## **Billericay Arts Association**
## **Report of the Management Committee for the year ended 31 March 2021**
## **Chairman’s Report**
Our previous Financial Year was interrupted by the announcement of the national Lockdown necessary because of the Covid-19 Pandemic. Whilst we had all heard rumours about what might happen I don’t think we had any idea how much our lives would be changed. Every class had at least one week cancelled, the Pete Neighbour Jazz evening had to be cancelled and all activities at The Fold ceased. Someone had to check on the security of the premises and collect bills that continued to arrive so that fell to me and I drove along eerily deserted roads to inspect a gloomily empty Fold. The heating had to be kept on low until the weather warmed up but nothing untoward was found. The cleaners returned on reduced hours and The Fold was thoroughly cleaned.
Our Treasurer, Alan Tofts, suffered a stroke and has been unable to carry out his role for the rest of the year. We are very pleased that his condition continues to improve.
The new windows for the Performance Area, store room, Reception and Office, ordered in November 2019 to be fitted at Easter were finally installed in June. Had we known about our reduced financial circumstances we wouldn’t have considered replacement windows but they have certainly proved their worth as the need to open windows became so important particularly in the PA where the old wooden windows had become almost impossible to open or close safely.
We normally show our appreciation of the work done by our volunteers by having a Summer Afternoon Tea Party but although an actual party wasn’t possible our caterers were asked to provide “Tea in a Bag” and these were delivered to the volunteers by some members of GCOM whilst observing social distancing. The contents were received with delight and many recipients took the trouble to write a thank you.
The Drama School asked if the premises could be used as a base for Zoom drama lessons to be filmed and these started as soon as was allowed and for many months Frances’ School of Drama provided the only income from Room Hire. As restrictions gradually lifted we were able to start to make plans for reopening. All tutors were asked if they felt ready to resume teaching but unsurprisingly over a half said they weren’t.
By September The Fold looked very different as all extra furniture had been removed, the books went into store, a one way system was put in place and an electrical door closer was fitted to the door between the corridors so it could be held open, avoiding the need to touch it, but will close automatically if the fire alarm sounds. Signs went up everywhere and so the new normal began.
Ten classes were allowed to run but with restricted numbers and well-spaced tables and some classes were split into two rooms for greater spacing. It was agreed we wouldn’t increase the fees to encourage students to return but those who said they weren’t ready were told their places would be safeguarded. If any room was used more than once a day there had to be additional cleaning between classes and in all the communal areas. This increased the cleaning costs but was unavoidable. Unfortunately a second Lockdown cut that term short, followed by another at the beginning of 2021 so there were no further classes until April.
In August we heard that our dear friend Eddie Philpott had died. He joined the association as a Receptionist on Thursday evenings after work and had been on the committee since 1980, later becoming Vice Chairman, Company Secretary and Office Manager. He was such an active member, encouraging his family to participate in many Fold activities such as “Park Your Sheep” and organised performances by Neville Dickie as well as keeping us all on track financially. Eddie was very involved in the various attempts to find a new home for BAA which culminated in our move from the old premises in the, now Waitrose, car park to the current premises He hadn’t been well for many
3
years but he always replied “Fine” to any enquiries about his health so we miss that response, his input, his advice and his friendship.
The most difficult thing about the ever changing situation was trying to find out which regulations applied to The Fold as it did not fall into any of the named categories. It is educational – but not a school. It is a community building – but far from a typical community centre where people go primarily to socialise. It hosts performances but isn’t a theatre. We probably erred on the side of caution but survived both financially, thanks to many years of care with our finances and physically, thanks to our volunteers, many of whom hadn’t ventured out for months, and who were prepared to return so that other people could try to resume pre pandemic activities. I would especially like to thank all the volunteers who went out of their way to helped me run The Fold during this strange year. The delight shown by people who have started to resume their activities at The Fold makes all the extra work worthwhile.
Margaret White
4
## **Billericay Arts Association**
## **Report of the Management Committee for the year ended March 2021**
## **Financial Review**
Like so many businesses and organisations the Covid-19 Pandemic which began in March 2020 had a huge effect on The Fold’s income and expenditure. All expenditure decreases were entirely due to the premises being completely closed during the Lockdowns, however, the costs of cleaning did not decrease by the same proportions as when we were able to run a limited number of classes we had to have additional cleaning because of Covid-19.
The income and expenditure account showed an unrestricted fund loss of £23,524 compared with last year’s surplus of £2,022.
## Reserves policy
Since all the activities of the Association revolve around the building that the Association occupies, its policy is to maintain sufficient cash reserves, over and above those needed to meet its day to day running expenses, to deal with major repairs and replacement of property and equipment and to allow for a potential calamity situation, of which Covid was a prime example.
This year we paid the balance of £10,352 for new windows for the Performance Area, Store Room, Reception and Office, the order having been placed in November 2019 and a deposit of £2,588 paid at the time. Although the revised cash reserve stands at £60,000, our cash balance reduced during the year by £23,651 from £130,492 to £106,841 as we had made a loss during the year. The reserve will be reviewed each year as part of the budgeting process.
## Expenditure in the year
The total costs of repairs and maintenance during the year of £19,237 include new windows in The Fold totalling £12,940.
Of the utilities charges during the year, gas showed a decrease of £2,422 and electricity showed a decrease of £2559. Water usage went down by £497.
Our annual electrical testing charges, which are included in Maintenance, were high as they included the fixed installations testing and the installation of an electrical door closer in the corridor. A reduced amount of exterior decorating is also included under Maintenance. With little income we still had to spend money on a Perspex screen for the Reception counter to keep the Receptionists safe plus endless sanitiser and wipes. It also became obvious that The Fold would have to have Wi-Fi installed as this would be likely to be needed for our classes and other activities.
Our total overall costs decreased by £16,131 from £74,520 to £58,389.
## Principal funding sources
Room hire fees generated income of only £3,975 a huge decrease on last year, and class fees generated income of only £2,649, again due to closures during Lockdowns. It was agreed by GCOM that when we were allowed to run classes the numbers attending should be reduced to allow social distancing in all rooms but without increasing the fees accordingly in order to tempt students to return. Some classes had to be split into two sessions which meant doubling some tutors’ salaries.
5
There were no events during the Financial Year although there were some requests for ticket refunds for the cancelled performance in the previous year and in March 2020 we paid Peter Rudeforth 50% of his fee early when his performance in May had to be cancelled because of Covid19
Our total overall operating income decreased by £51,714 from £76,842 to £25,128 and this is despite the Government grant, Furlough payments and a Council Tax window.
## Plans for Future Periods
It will take some considerable time to build up the funds so plans are being made to increase class fees, room hire charges and prices for refreshments from September 2021.
The Charity plans continuing the activities outlined above in the forthcoming years subject to satisfactory funding arrangements.
6
## **Billericay Arts Association**
## **Report of the Management Committee for the year ended 31 March 2021**
## **Responsibilities of the Management Committee**
The Companies Act 2006 requires the Management Committee to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the Management Committee should follow best practice and;
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to assume that the company will continue on that basis.
The Management Committee is responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006, Charities Act 2011, Memorandum and Articles of Association, and Statement of Recommended Practice: 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) (effective 1 January 2015).
The Management Committee is also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## Members of the Management Committee
Members of the Management Committee, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 1.
## **Independent Examiners**
Michael Letch and Partners were re-appointed as the charitable company's independent examiners during the year and have expressed their willingness to continue in that capacity.
This report has been prepared in accordance with the Statement of Recommended Practice: 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) (effective 1 January 2015) and in accordance with the provisions in the Companies Act 2006.
Approved by the Management Committee on 6 December 2021 and signed on its behalf by:
## **M White (Chairman)**
**P Jakes (Vice Chairman)**
7
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Michael Lelch & Partners LLP
146 Hyh Street
Billeric8y
Essex.
CM12 9DF
## **Billericay Arts Association Statement of Financial Activities (including Income & Expenditure Account) for the year ended 31st March 2021**
|**Notes**
**Incoming resources**
**Incoming resources from generated**
**funds:**
Voluntary income:
Donations and grants
**2**
Activities for generating funds:
Membership subscriptions
Income from hirings
Profit on refreshments
Commissions received
Events income
Class fee income
**3**
Pottery Sales
Other income:
Bank interest received
Government grant received via BBC
Furlough payments
**Total Incoming resources**
**Resources expended**
**Costs of generating funds:**
Costs of events
**4**
Costs of classes
**4**
Costs of general overheads
**4**
**Total Resources expended**
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward|**Total**
**Funds**
**2021**
£
40
20
3,975
0
0
0
2,649
187
106
10,000
8641
**23,524**
489
11,308
46,592
**58,389**
-32,771
162,482
**129,711**|**Total**
**Funds**
**2020**
£
2,281
3,808
23,955
3,252
0
7,465
35,201
635
245
0
0|
|---|---|---|
|||**76,842**|
|||7,205
25,187
42,128|
|||**74,520**|
|||2,322
160,160|
|||**162,482**|
9
## **Billericay Arts Association**
## **Balance Sheet as at 31 March 2021**
|
**Notes**
**Fixed Assets**
Tangible fixed assets
**10**
**Current Assets**
Debtors
Cash at Bank and in hand
**11**
**Current Liabilities**
Creditors falling due
within one year
**12**
**Net current assets**
**Net Assets**
**Unrestricted funds**
**14**
**Total Funds**|**2021**
£
20,855
3,027
106,841
109,868
-1,012
108,856
129,711
129,711
**129,711**|**2020**
£|
|---|---|---|
|||29,494|
|||6,342
130,492|
|||136,834
-3,846|
|||132,988|
|||162,482|
|||162,482|
|||**162,482 **|
Approved by the Trustees of the Association on 6 December 2021
The Trustees have taken advantage of the Companies Act 2006 by not having these accounts audited under Section 477 (total exemption).
The Trustees have confirmed that no notice has been deposited under Section 476 of the Companies Act 2006.
The Trustees have acknowledged their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
10
## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2021**
## **1 Accounting Policies**
## **a) Basis of Preparation**
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain fixed assets, and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), Charities SORP (FRS 102) and Companies Act 2006.
## **b) Depreciation**
Tangible fixed assets are written off over their estimated useful lives on a straight line basis. Our practice is to depreciate equipment at 20 per cent per annum over 5 years whilst the Association’s contribution to the initial improvement and subsequent major improvements to the property are depreciated over 10 years at 10 per cent per annum.
## **c) Income**
Income is credited to the income and expenditure account on an accruals basis with the exception of membership subscriptions which are shown on a received basis.
## **d) Donations and Grants**
All donations received during the year have been taken to the credit of the income account. The Association received a grant from Basildon Borough Council to help with loss of income because of Covid-19 restrictions.
## **2 Donations**
|Donations -including personal, book and plant sales
**3**
**Incoming resources from generated funds - Class income**
Class Fees
Sale of Pottery|**Total Funds**
**2021**
40
40
**2021**
2,649
187
2,836|**Total Funds**
**2020**
2,281|
|---|---|---|
|||2,281|
|||**2020**
35,201
635|
|||35,836|
11
## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2021**
|**4**
**Total Resources Expended**
**Notes**
Costs of events income:
Events fees & expenses
Costs of classes:
Tutors salaries and fees
**6**
Materials
Expenses and fees for models
Costs of general overheads
General Administration
Photocopier charges
Publicity
Licences & Royalties
Cleaning/Household
Waste Removal Biffa
Water & Sewerage Rates
Insurance
Gas
Electricity
Repairs & maintenance
Postage
Office Telephone
Other expenses
Accountancy
Depreciation of fixed assets
3
Council rates
Expenditure on Covid protection
**Total Resources Expended**
**5**
**Net Incoming Resources for the year**
This is stated after charging:
Depreciation|**2021**
**£**
489
10,838
0
470
11,308
0
-4
79
193
6,505
2,325
373
1,834
2,891
1,177
19,237
100
725
317
1,070
9,276
0
494
46,592
**58,389**
**2021**
**£**
9,276
9,276|**2020**
**£**|
|---|---|---|
|||7,205|
|||21,860
1,015
2,312|
|||25,187|
|||290
166
608
298
8,067
2,787
870
1,853
5,313
3,736
4,247
84
977
1,300
810
9,899
823
0|
|||42,128|
||||
|||**74,520**|
|||**2020**
**£**
9,899|
|||9,899|
12
## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2021**
## **6 Tutors Salaries & Fees**
|Staff costs comprised:
Salaries and fees
National Insurance contributions
Total|**2021**
**£**
10,838
-
10,838|**2020**
**£**
21,850
10|
|---|---|---|
|||21,860|
## **7 Related Party Transactions**
No related party transactions were identified during the year.
## **8 Taxation**
As a charity Billericay Arts Association is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or S256 of the Taxation of Chargeable Gains Act 2002 to the extent that these are applied to charitable objects. No tax charges have arisen in the Charity.
## **9 Premises**
The premises are to be leased rent free from Basildon District Council under an agreement for a period of 99 years (from 1994). The lease agreement has yet to be formally signed but the Council has given us assurances that if, for some unforeseen reason, the agreement was not signed and we were required to vacate the property, it would return to us our contribution to the costs of refurbishing the property.
13
## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2021**
## **10 Fixed Assets**
|Cost @ 01.04.20
Additions
Cost @ 31.03.21
Depreciation @01.04.20
Charge for Year
Depreciation @31.03.21
NBV @ 31.03.21
NBV @ 31.03.20
**11**
**Debtors**
Trade debtors
Prepayments & accrued income
**12**
**Creditors due within 1 year**|Property
Class
Office
Equipment
Equipment
£
£
£
153,679
8,535
4,321
0
0
0|Furniture &
Fittings
£
42,482
637
43,119
38,162
2,522
40,684
2,435
4,320
**2021**
**£**
3,027
3,027
1,012|TOTAL
£
209,017
637|
|---|---|---|---|
||153,679
8,535
4,321||209,654|
||129,763
7,277
4,321
6,232
522
0||179,523
9,276|
||135,995
7,799
4,321||188,799|
|||||
||17,684
736
0||20,855|
|||||
||23,916
1,258
0||29,494|
||||**2020**
**£**
1,003
5,339|
||||6,342|
|||||
||||3,846|
14
## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2021**
## **13 Reserves Policy**
Since all the activities of the Association revolve around the building that the Association occupies, its policy is to maintain sufficient cash reserves, over and above those needed to meet its day-to day running expenses, to deal with major repairs and replacement of property and equipment and to allow for a potential calamity situation.
Our revised cash reserve remains at £60,000 until any future reviews.
## **14 Movements in Funds**
|**Unrestricted funds:**
General funds
**Total funds**|**At 1 April**
**Incoming**
**Outgoing**
**At 31 March**
**2020**
**Resources**
**Resources**
**2021**
**£**
**£**
**£**
**£**
162,482
25,618
-53,389
129,711|
|---|---|
||162,482
25,618
-58,389
129,711|
15