Billericay Arts Association
(A company limited by guarantee)
Report & Financial Statements for the Year Ended 31 March 2023
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 2023
| 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 2023
The Management Committee presents its report and financial statements reviewed by Independent Accountants for the year ended 31 March 2023
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 2023
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.
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Billericay Arts Association
Report of the Management Committee for the year ended 31 March 2023
Chairman’s Report
After a great deal of discussion and mindful of the losses made by BAA for the last 2 years it was agreed that Class Fees and Hire Charges would be increased by 20% from September 2022. This didn’t cause the negative reaction we feared as existing students re-enrolled for their classes and new students weren’t put off by the higher fees. The prices for refreshments were also increased but it was agreed not to make any increase to the annual membership fees.
Following the news of huge increases in gas and electricity it was agreed that Class Fees for Spring 2023 would increase by £1.00 per week for every student. This was easy to explain to the students and publicising the gas bill of £1,675 just for February 2023 helped them understand the need for another increase.
Whilst we accept payment for Class Fees by cash, cheque and bank transfer we ask for cash when purchasing refreshments. We are still resisting payments by card because of the charges but for how much longer? The closure of our local branch of HSBC has caused some difficulties. We are able to pay in cheques and cash at The Post Office but they cannot provide advice and only accept complete bags of coins which means usually means some coins cannot be paid in and have to be carried forward until there are enough of that denomination.
Luckily this year we have not had to replace any equipment so our expenditure has largely been on the cleaning, licences, minimal decorating and the annual tests and servicing we have to have done.
Although there have been no paid performances at The Fold for a second year, we were approached to see if we could host an afternoon of free jazz on a monthly basis. We do not charge for the use of the room, we get high class musicians for no fee, it attracts an audience who are delighted to hear live music again, buy refreshments and may even offer to help run The Fold.
Although the classes for adults have been generally well attended, we sadly have still not been able to run any classes for children because there are no volunteers available to be Receptionists during the after-school slot. There was a successful series of one day and half day Workshops in July which attracted many new people, some of whom enrolled in the termly classes.
We were extremely fortunate that the serious fire in July 2022 at Reids, the premises next to The Fold, did not cause any damage to The Fold, thanks to the prompt action of the emergency services and the wind blowing away from us. One of the downsides was that the Reids site is now derelict and plans are being submitted for the development of it into apartments. If successful, this will have an enormous effect on The Fold as our outlook will be lost and parking is likely to be a major problem. Another downside was that many people thought The Fold was also unable to operate so we had to make a huge effort to tell them otherwise. BAA was invited to promote The Fold at the Community Day in March at the Chantry Centre. It was extremely well attended and many people showed an interest in The Fold and our classes. We even gained a new Receptionist.
We continue to be very grateful for all the work carried out by the Receptionists as The Fold couldn’t even open without them. I would like to thank the members of GCOM for their help running The Fold but the time has now come to admit we need to actively seek extra members to help share the workload and take on some of the key roles.
Margaret White
3
Billericay Arts Association
Report of the Management Committee for the year ended March 2023
Financial Review
The Fold is still feeling some effects of the Covid-19 Pandemic. The current increase in inflation has significantly increased the cost of our utilities. However, following additional monitoring of all expenditure and increasing our prices The Fold’s income has shown definite signs of improvement during the year.
We are pleased to report that most of our classes have returned to pre-pandemic enrolment despite the fact that we reluctantly had to increase our class fees each term.
No events were held this year, partly because we felt that we should continue to provide more space for the audiences and the reduced number that could then be accommodated would result in reduced income and not cover the artistes’ fees but also because we haven’t had enough volunteers to run the events.
The income and expenditure account showed a surplus of £5,311 compared with last year’s loss of £30,837 and although modest is the first positive figure for 2 years
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.
Our cash reserve stands at £60,000 and our cash balance increased during the year by £9,448 from £103,092 to £112,540. The reserve will be reviewed annually as part of the budgeting process.
Expenditure in the year
The total costs of repairs and maintenance of £3,173 during the year includes minor repairs, some interior decorating and annual testing and servicing.
Of the utilities’ charges during the year, gas showed an increase from £4,619 to £8,701 and electricity showed an increase from £3,602 to £4,715. We are fairly sure next year’s increases won’t show a reduction. Water rates increased from £100 to £527 due to the erratic nature of the bills received.
Our total overall costs show a decrease of £16,792, from £68,608 to £51,816 and this is an expected result as last year 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. There has been no purchase of new assets during the year.
This 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 £17,964 an increase on last year of £5,922 but still not as high as pre Pandemic as there are now fewer societies. Class fees generated income of £31,870 and membership fees of £1,958 showing a continued return of people to The Fold but with accompanying additional expenditure.
Our total overall operating income increased by £19,356 from £37,771 to £57,127.
Plans for Future Periods
With the alarming increases in prices of gas and electricity, it was decided to increase class fees, room hire charges and prices for refreshments from September 2022 and again during the year to cover all expected increases.
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 2023
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;
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make judgements and estimates that are reasonable and prudent; and
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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 5 July 2023 and signed on its behalf by:
M White (Chairman)
P Jakes (Vice Chairman)
6
Independent Examlnerfs Report to the Tru8tee8 of 8llleTl¢•y Arts Assoclallon Re8p•clv? r•8pon•lbllltl•J of trustse8 and •xamln•r IhssearlLThrEth 144Q) cltscharities 20111 Ihat an independent examinth"on' requr&J. It s rty r¢sprt4ty kj.. examine the accounts under Section 145 of 2011 Act.. 14S(5Xbl ofts 2011 Pdl.. to stste whether parts"cular mattor3 have cxyne to my attentn. 3a818 of nd•[KInt exJminerf¥ Statement My examination was carried out in acoydaE with General redjn5 giv by the Charity CoMm6s¥. An ltstv1kj be requirJ n an ajdit and csequ isexpressed as to th01frrIho8Q?WniS present a rL fwrvvll aTrJ Ihe rw * Iwred t0th matters setcrtrt in thB stater Ixlyw. Independent examln•f8 ¥tai¢ment to Prepa aceount5 which aoxjrd with the aceounting records and to compty wth thè )tir9 Pr&lTh.' aThJ R8pxytirg tycharities applicabla to charitie5 preparing th?ir accounts in accoroancè with the FInarlat Reporting St&ndard applicable in the UK and RepublK of Ireland IFRS 1021 (effective 1 January 20151 have noi been met.. or p) to*, in r Date...... i.i.I,.,I Michad Letch & Partners LLP 146 HJh Street 'Ilenc E$, CM129DF
Billericay Arts Association Statement of Financial Activities (including Income & Expenditure Account) for the year ended 31st March 2023
| Notes Incoming resources Incoming resources from generated funds: Voluntary income: Donations 2 Sales of Donated Books & Pictures 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 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 2023 £ 123 584 1,958 17,964 3,455 0 0 31,870 987 86 100 57,127 0 17,590 34,226 51,816 5,311 98,874 104,185 |
Total Funds 2022 £ 314 124 1,527 12,042 1,764 0 1,288 19,828 773 38 73 |
|---|---|---|
| 37,771 | ||
| 1531 18,102 48,975 |
||
| 68,608 | ||
| -30,837 129,711 |
||
| 98,874 |
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Billericay Arts Association
Balance Sheet as at 31 March 2023
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 |
2023 £ 0 3,440 112,640 116,080 -11,895 104,185 104,185 104,185 104,185 |
2022 £ |
|---|---|---|
| 0 | ||
| 2,611 103,092 |
||
| 105,703 -6,829 |
||
| 98,874 | ||
| 98,874 | ||
| 98,874 | ||
| 98,874 |
Approved by the Trustees of the Association on 5 July 2023
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 2023
1 Accounting Policies
a) Basis of Preparation
The financial statements have been prepared under the historical cost convention, 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.
2 Donations
| Donations -including personal and sales of donated books and paintings 3 Incoming resources from generated funds - Class income Class Fees |
Total Funds 2023 707 707 2023 31,870 31,870 |
Total Funds 2022 438 |
|---|---|---|
| 438 | ||
| 2022 19,828 |
||
| 19,828 |
10
Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2023
| 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 & Photocopying charges Publicity Licences & Royalties Cleaning/Household Waste Removal Biffa Water & Sewerage Rates Insurance Gas Electricity Repairs & maintenance Postage Office Telephone inc broadband Other expenses Accountancy Depreciation of fixed assets 9 Council rates Capital additions Total Resources Expended |
2023 £ 0 14,440 466 2,524 160 17,590 223 441 0 203 7,390 3,425 527 1,995 8,701 4,715 3,173 55 878 1,303 570 0 627 0 34,226 51,816 |
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 1394 |
||
| 48,975 | ||
| 68,608 |
11
Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2023
6 Tutors’ Salaries & Fees
| Staff costs comprised: Gross Salaries Professional services for Payroll Total |
2023 £ 14,044 396 14,440 |
2022 £ 13,556 396 |
|---|---|---|
| 13,952 |
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.
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Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2023
10 Fixed Assets
| All fixed assets were written off in 2022 NBV @ 31.03.23 11 Debtors Trade debtors, Prepayments & accrued income 12 Creditors due within 1 year |
Property Class Equipment Equipment £ £ £ |
Furniture & Fittings £ 0 2023 £ 3,440 3,440 11,895 11,895 |
TOTAL £ |
|---|---|---|---|
| 0 0 0 |
0 | ||
| 2022 £ 2,611 |
|||
| 2,611 | |||
| 6,829 | |||
| 6,829 |
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Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2023
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 2022 Resources Resources 2023 £ £ £ £ 98,874 57,127 -51,816 104,185 |
|---|---|
| 98,874 57,127 -51,816 104,185 |
14