## **Billericay Arts Association**
(A company limited by guarantee)
**Report & Financial Statements for the Year Ended 31 March 2022**
## **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 2022**
|**Contents**|**Page**|
|---|---|
|Report of the Management Committee|1 - 6|
|Independent Examiners’ Report|7|
|Statement of Financial Activities|8|
|Balance Sheet|9|
|Notes forming part of the Financial Statements|10 – 14|
## **Billericay Arts Association**
## **Report of the Management Committee for the year ended 31 March 2022**
The Management Committee presents its report and financial statements reviewed by Independent Accountants for the year ended 31 March 2022
## **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|
|Mrs M Ellis|Company Secretary|
|Mrs B Collins|Classes Secretary|
|Mrs F Adams||
|Mrs J Cook||
|Mr N Davey||
|Mrs J Nash||
|Mrs P Peddar||
|Mrs M Schultz||
|Mr A Tofts||
## **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 2022**
## **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 regularly 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 2022**
## **Chairman’s Report**
This year has been hard work for volunteers at The Fold. Not all our volunteers felt comfortable resuming their duties initially and some haven’t been able to return at all. Many volunteers have stepped in to cover the shortfall but it is becoming increasingly obvious that we need more people to help share the load.
One of the main things to suffer at The Fold this year has been our performances. We felt obliged to rebook Andante in October 2021 as their original booking in March 2020 had to be cancelled twice because of the lockdown. We had no way of knowing if people were ready to sit together as an audience but with well spaced tables and a reduction in numbers the evening was well received and broke even. We thought we would try D’Ukes in December but that didn’t attract enough people. Perhaps, wary of the difficulties seeing families at Christmas 2020, people were being more careful. Pete Neighbour, another casualty of the lockdown cancellations, contacted us to offer to return in March and we agreed but we were unable to sell enough tickets so that evening made a loss. Following that, a decision was taken not to have any further events for a while until the general situation improves but mainly until we can find enough volunteers to organise them.
We have been delighted to welcome some new volunteers and aware that they hadn’t had an opportunity to meet most of the other volunteers we arranged an afternoon tea before the autumn term began
Our classes are almost back to normal though with some alterations as interests change. We continued to restrict numbers in each class to allow everyone to space out and continued cleaning the rooms after each session until July. By September it was felt that, providing everyone remained vigilant, we could relax most of the restrictions. Classes designated as “Beginners” proved very popular and have attracted many new faces.
Rumours started to circulate about the future of Reids following a visit to their site in summer 2021 from developers and someone from Basildon Council. They said they planned to demolish Reids and replace with a new block of flats and another block in their car park. No plans were lodged at the Planning Department and in September workmen arrived to refurbish Reids and it reopened in October serving Italian meals at and this arrangement has lasted until March 2022. Who knows what the future will bring but we shall remain vigilant and try to ensure minimal effect on The Fold.
The Fold must not rest on its laurels of the past. Times are changing. When it opened in 1979 it was almost the only venue providing opportunities to develop artistic interests with classes for adults and children and a place where like minded people could meet and hire a room. Today Billericay has a new theatre in Radford Way and a new venue – The Chantry Centre where rooms are available to hire. Not far from the High Street is Barleylands where there are art and craft studios, many providing lessons. Since the pandemic we haven’t been able to run any classes for children because of shortage of volunteers to staff The Fold at those times. Like so many organisations we need more help to share the load of running The Fold so we need to actively seek those people.
The volunteers we do have are a fantastic group. Making refreshments may not sound like a bundle of fun but listening to the rapport that develops between a Receptionist and the students who attend classes on that day proves what a sociable activity it can be – if you want it to be.
Margaret White
3
## **Billericay Arts Association**
## **Report of the Management Committee for the year ended March 2022**
## **Financial Review**
Like so many businesses and organisations The Fold has not fully recovered from the Covid-19 Pandemic which began in March 2020 had a huge effect on The Fold’s income and expenditure. The number of events were certainly reduced as were the number of classes. The classes that did resume had fewer students to enable social distancing and the costs of cleaning did not decrease by the same proportions as we had to have additional cleaning because of Covid-19. Many of our Member Societies delayed resuming their regular meetings until their members felt safe to resume.
The income and expenditure account showed an unrestricted fund loss of £30,837 compared with last year’s loss of £32,771
## 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.
Although the revised cash reserve stands at £60,000, our cash balance decreased slightly during the year by £3,749 from £106,841 to £103,092. The reserve will be reviewed each year as part of the budgeting process.
## Expenditure in the year
The total costs of repairs and maintenance of £2,566 during the year only includes minor repairs, some interior decorating and annual testing and servicing.
Of the utilities’ charges during the year, gas showed an increase from £2,891 to £4,619 and electricity showed an increase from £1177 to £3602. We are fairly sure next year’s increases will be considerably higher. Water usage appears to have decreased but that is mainly due to the strange way we are billed and the credit that had accumulated.
It also became obvious that The Fold would have to have Wi-Fi installed as this would likely be needed for our classes and other activities and this has increased our BT bills.
Our total overall costs show an increase of £10,219 from £58,389 to £68,608 but that is an expected result as we took the decision to write off all capita items at The Fold, such as replacement windows, which we could not take with us if we ever have to relocate. We accept this decision causes our results to look worse than our actual trading figures reflect but these show that, with careful planning, we have reduced the actual loss. Next year the figures will not have this imbalance. As is stated in Note 1b:-
“The written down value of tangible fixed assets brought forward have been written off in their entirety as it is considered these have zero value. Tangible fixed assets acquired in the year are written off in the year of acquisition. This is a change in accounting policy from writing off assets over their estimated useful lives on a straight-line basis over five or ten year period”.
4
## Principal funding sources
Room hire fees generated income of £12,042 a huge increase on last year but still not as high as pre Pandemic as there are now fewer societies. Class fees generated income of £19,828 and membership fees of £1,527 showing a steady return of people to The Fold but with accompanying additional expenditure.
Our total overall operating income increased by £12,153 from £25,618 to £37,771 and this is despite not receiving any Government grant or Furlough payments this year.
## Plans for Future Periods
With the threatened increases in gas and electricity, plans are being made to increase class fees, room hire charges and prices for refreshments from September 2022 and possibly again during the year to cover all expected increases.
It will take much longer to rebuild the funds to the pre Pandemic levels.
The Charity plans to continue the activities outlined above in the forthcoming years, subject to satisfactory funding arrangements.
5
## **Billericay Arts Association**
## **Report of the Management Committee for the year ended 31 March 2022**
## **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 28 November 2022 and signed on its behalf by:
## **M White (Chairman)**
## **P Jakes (Vice Chairman)**
6
Independent Examiner's Report to the Trustee$ of Billericay Arts Association
I reFKJI crt thè a¢xMJnls oftheASs(x)ab forthe yearenW 31st Marth 2022, are set cyjt w py g to 15.
Respective responsibilities of trusto8$ and examinor
ml WLir&J fcf tris yw 144P} oftrE Chanbes Act 20111 and that an indeFendent exam¥wtion
required.
It is my resp)n8ibltyto.'
examine the accounts un¢Jer Section 145 of the 2011 A¢t,'
lofolkN the kylythIre$ lad dvn ui ts Ggntrd 9ven ty the Chanty CCffjr l(•YknSec
14515llbl of ts 2011 ALII., and
lo stale whether particular matters have come to my attention.
8¥¥is of independent examin•r'$ Statement
My examination was carried ovt in acccKdance wth General Direth'ons given by the Charity comm*. An
exarrynab'on indLKks 8 reviewofts *xryJntirvJ recxyds kept Lythe CW •vJ a 0pariSOn ofthe accounts we5errted
wrth Ih05e recuds. 11 also indudes cx)nsiderat'on ofany unusual items or disdcwres in the wxxjunts, and $8ekn"r#J
8xplanats"oTh from the trust cc(]cemry any matters The procedures undertaken do not prtsvhle all evh*r
that would be required in an audit, and consequendy no opinK)n 15 expressed as to ¥thets the ac£ounts twent a
'true arKI fair arKI the report is limrted to those matter5 set out in statement bdow
Ind•pondent examlnerf• stat8m•nt
In the (se ofmy examinaticffl, NJ matter5 corr¢ to attthb)n',
111 wl*cti Ltrves us 880ne cause to believe Ihat, in Mala1 Spthe Lu[wnents.'
to keep aL>)xnty rdS n ao)Jrdawwth SgJ*)n 1X) ofts Chanb'es kt 2011,. and
to prepa accounts which aetord with the accounting records and lo comply with the ntsTra
rUl[eM&1ts ofts 2011 Sth ofa C(Mnparyes AL# 26 and metrp)ds aTrJ Fhirx*sclthÈ
Statem&* of R&xXryne Pr*kn.' Aco)Jth'tvJ RepJtiTrJ ty Charities applicable to charities preparing
their account$ in accordance with the Finanaal Reporting Standard applicable in the UK and Republ¢c of
Ireland IFRS 1021 leffectivo l January 2015)
have not been met.. or
(21 to which, in our
reached.
n. attenti SWI be drawn in enable 8 prcpr understsnding clthe to be
13
2(5Z
Michael
Ich & Partners LLP
Atx)JUnts and RegisteredAudts
146 High Street
8illericay
Essex.
CM12 9DF
## **Billericay Arts Association Statement of Financial Activities (including Income & Expenditure Account) for the year ended 31st March 2022**
|**Notes**
**Incoming resources**
**Incoming resources from generated**
**funds:**
Voluntary income:
Donations and grants
**2**
Books
Activities for generating funds:
Membership subscriptions
Income from hirings
Profit on refreshments
Commissions received
Events income
Class fee income
**3**
Pottery Sales
Paper 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**
**2022**
£
314
124
1,527
12,042
1,764
0
1,288
19,828
773
38
73
0
0
**37,771**
1531
18,102
48,975
**68,608**
-30,837
129,711
**98,874**|**Total**
**Funds**
**2021**
£
40
0
20
3,975
0
0
0
2,649
187
0
106
10,000
8641|
|---|---|---|
|||**25,618**|
|||489
11,308
46,592|
|||**58,389**|
|||-32,771
162,482|
|||**129,711**|
8
## **Billericay Arts Association**
## **Balance Sheet as at 31 March 2022**
|
**Notes**
**Fixed Assets**
Tangible fixed assets
**10**
**Current Assets**
Debtors
**11**
Cash at Bank and in hand
**Current Liabilities**
Creditors falling due
within one year
**12**
**Net current assets**
**Net Assets**
**Unrestricted funds**
**14**
**Total Funds**|**2022**
£
0
2,611
103,092
105,703
-6,829
98,874
98,874
98,874
**98,874**|**2021**
£|
|---|---|---|
|||20,855|
|||3,027
106,841|
|||109,868
-1,012|
|||108,856|
|||129,711|
|||129,711|
|||**129,711**|
Approved by the Trustees of the Association on 27 November 2022
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.
9
## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2022**
## **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**
The written down value of tangible fixed assets brought forward have been written off in their entirety as it is considered these have zero value. Tangible fixed assets acquired in the year are written off in the year of acquisition. This is a change in accounting policy from writing off assets over their estimated useful lives on a straightline basis over five or ten year period
## **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|**Total Funds**
**2022**
314
314
**2022**
19,828
19,828|**Total Funds**
**2021**
40|
|---|---|---|
|||40|
|||**2021**
2,649|
|||2,649|
10
## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2022**
## **4 Total Resources Expended**
|**Notes**
Costs of events income:
Events fees & expenses
Costs of classes:
Tutors’ salaries, PAYE and Prof Fees for Payroll
**6**
Materials
Fees for models
Kiln service
Costs of general overheads
Bank Charges
Office Stationery
Publicity
Licences & Royalties
Cleaning/Household
Waste Removal Biffa
Water & Sewerage Rates
Insurance
Gas
Electricity
Repairs & maintenance
Postage
Office Telephone inc installation of broadband
Other expenses
Accountancy
Depreciation of fixed assets
9
Council rates
Expenditure on Covid protection
Capital additions (sign and dishwasher)
**Total Resources Expended**|**2022**
**£**
1,531
13,952
654
3,232
264
18,102
89
33
0
0
8,358
2,900
100
1,856
4,619
3,602
2,566
126
1,161
326
390
21,135
320
0
1394
48,975
**68,608**|**2021**
**£**|
|---|---|---|
|||489|
|||10,838
0
470
0|
|||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
0|
|||46,592|
||||
|||**58,389**|
11
## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2022**
|**6**
**Tutors’ Salaries & Fees**
Staff costs comprised:
Salaries and PAYE
Professional services for Payroll
Total|**2022**
**£**
13,556
396
13,952|**2020**
**£**
10,838|
|---|---|---|
|||10,838|
## **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.
The terms of the lease, although unsigned, have been adhered to by both parties for the past 29 years. In the event of BAA leaving the premises for whatever reason, we would be required to hand over the premises in no worse state of repair than when we took possession. Since the building has received many improvements and regular maintenance during our tenancy, the Trustees see no difficulty in meeting this requirement. Under the agreement BAA is not responsible for structural issues.
12
## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2022**
## **10 Fixed Assets**
|Cost @ 01.04.21
Additions
Cost @ 31.03.22
Depreciation @01.04.21
Charge for Year
Depreciation @31.03.22
NBV @ 31.03.22
NBV @ 31.03.21|Property
Class
Equipment
Furniture &
Equipment
Fittings
£
£
£
£
153,679
8,535
4,321
43,119
0
0
279
0
153,679
8,535
4,600
43,119
135,994
7,799
4,321
40,684
17,685
736
279
2,435
153,679
8,535
4,600
43,119
0
0
0
0
17,685
736
0
2435|TOTAL
£
209,654
279|
|---|---|---|
|||209,933|
|||188,798
21,135|
|||209,933|
||||
|||0|
||||
|||20,856|
|**11**
**Debtors**
Trade debtors
Prepayments & accrued income
**12**
**Creditors due within 1 year**|**2022**
**£**
2,611
2,611
6,829|**2021**
**£**
3,027|
|---|---|---|
|||3,027|
||||
|||1,012|
13
## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2022**
## **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**
**2021**
**Resources**
**Resources**
**2022**
**£**
**£**
**£**
**£**
129,711
37,771
-68,608
98,874|
|---|---|
||129,711
37,771
-68,608
98,874|
14