## **Billericay Arts Association** (A company limited by guarantee) # **Report & Financial Statements for the Year Ended 31 March 2024** ## **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 2024** |**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 – 14| **Billericay Arts Association** ## **Report of the Management Committee for the year ended 31 March 2024** The Management Committee presents its report and financial statements reviewed by Independent Accountants for the year ended 31 March 2024 ## **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 P Baker|| |Mrs J Cook|| |Mr N Davey|| |Mr I Grant|| |Mrs T Hilton|| |Mrs J Kerton|| |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 2024** ## **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 2024** ## **Chairman’s Report** I am pleased to report that the price increases to our Class Fees and Room Hire charges made during the early part of the year, combined with the numbers of students attending have brought our accounts back on track. We again decided not to increase Membership fees as without running other events there is no incentive for people to join BAA unless they are attending a class. Like so many people, businesses and organisations it is now difficult to get any help from our bank that would improve our efficiency to trade. More people are paying for their classes by bank transfer which is helpful but we currently have no facility to check their payments until we receive our monthly bank statement. This is despite several attempts to achieve this which always seem to be thwarted by our bank but it is being pursued. The process of paying cheques and cash in at the Post Office is working well then we heard our High Street Branch many be closing but there is little point worrying about that until we hear anything definite. We decided against increasing the prices for our refreshments, not for economic reasons but purely for the practicality of taking cash payments for them. The irritation factor of providing so much more change for even a 10p increase in prices would outweigh the financial benefit. Unfortunately, the water boiler in the kitchen began leaking and we were told the tank had split. We decided to replace the whole unit rather than just the tank as this would be more straightforward and would also mean it would not need an annual service this year. However, this meant our volunteers had to cope with using kettles to provide hot drinks. The new unit was installed and a strange taste and smell to the water was immediately noticed but the engineer said it would dissipate. It didn’t, so the installers were contacted but they said it would have to be dealt with by the manufacturers under warranty. There was a further delay until their engineer was able to visit and agreed there was a problem with the hot water quality, took samples, examined the installation but found nothing to explain the cause. He replaced the tank, although there was no sign of anything wrong, and it solved the problem. Having the original water heater replaced sounded so simple but the whole procedure caused enormous inconvenience to our volunteers and customers and hours of wasted time. Thankfully we have not had to replace any other equipment so our expenditure has largely been on the cleaning, licences, minimal decorating and the requirement for annual tests and servicing. The monthly Jazz afternoons, at no charge to The Fold, continue to attract good audiences, an opportunity to hear live music and some income from refreshments served in the interval. We would like to hold ticketed music performances and book other artistes, but with no way of being able to predict enough support we still haven’t felt able to risk a possible financial loss. We also haven’t been able to attract any new people prepared to commit themselves to help at a performance. 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 reduced series of one day and half day Workshops in July which attracted some new people and we also ran some sessions on Saturdays in the Spring with mixed attendance. As always, it is difficult to find tutors who could offer new subjects The Fold has had to operate for over two years adjacent to the now derelict site of the former Reids premises. Planning Permission, to convert the existing premises into apartments and build a new block in their car park, was granted in March 2024 but the developer had no plans to start the work immediately. A second and more extensive fire occurred in April and caused almost total destruction of what was planned to be converted as well as damage to the neighbouring businesses in Laindon Road. We were assured by the developer within a few days of the fire that they still intended to proceed but not before 2025 and that Basildon Council may require a new application. Nothing has happened 3 to the site since the fire other than the erection of safety barriers and the gradual deterioration of the charred remains. The Fold survived unscathed once again and our visitors are now accustomed to the depressing view. We continue to be very grateful for all the work carried out by the Receptionists as The Fold couldn’t even open without them. However, several of our regular Receptionists have had to give up and we really do need to find replacements as their duties cannot continue to be covered on a regular basis by just one or two other volunteers. As an organisation we are not alone in needing new volunteers but we also need ones who will commit themselves to a regular session and these are even more difficult to find these days. During the year we have sadly lost several good friends of The Fold and they are much missed. 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 4 ## **Billericay Arts Association** ## **Report of the Management Committee for the year ended March 2024** ## **Financial Review** The Fold’s income shows signs of improvement despite the ever upward costs of utilities and services. To achieve this, it was necessary to impose several price increases during the year plus constant monitoring. No ticketed events were held during the year as some people still appear to be reluctant to come out in the evening and it could be a costly risk. We may try an afternoon performance in the future though we are still very short of people to help run any performance. The income and expenditure account showed a surplus of £17,507 compared with last year’s surplus of £5,311, a real improvement over last year and the previous year ## 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 £12,196 from £112,640 to £124,791 ## Expenditure in the year The total costs of repairs and maintenance of £4,276 during the year includes repairs to the kilns, a replacement fan in the kiln room, a new water boiler for the kitchen, some interior decorating and annual testing and servicing. Of the utilities’ charges during the year, gas showed a decrease from £8,701 to £8,116 and electricity showed an increase from £4,715 to £4,871. These small movements reflect a mild winter rather than better unit rates. Water rates increased from £527 to £647 Our total overall costs show an increase of £1,847, from £51,816 to £53,303 and reflect an increase in trading during the year. In 2022 we took the decision to write off all capital items at The Fold, such as replacement windows, which we could not take with us if we ever have to relocate. There has been one purchase of a new asset during the year – the new kitchen water boiler. The written down value of tangible fixed assets brought forward were 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. 5 ## Principal funding sources Attendance at many classes continues to grow despite the need to increase the class fees slightly every term. Class fees generated income of £42,601 and membership fees £1,761 which is lower than the previous year meaning that fewer people attended The Fold Room Hire fees generated income of £19,227 an increase on last year of £1,263 but still not as high as pre Pandemic as there are now fewer societies. Our total overall operating income increased by £13,683 from £57,127 to £70,810 ## Plans for Future Periods With the increases in unit prices of gas and electricity, it was decided to increase class fees, room hire charges and prices for refreshments from September 2023 and again during the year to cover all expected increases. However, with our improved trading position we intend to hold prices firm, at least for the 2024 Summer Term. The Charity plans to continue 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 2024** ## **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 30 August 2024 and signed on its behalf by: **M White (Chairman)** **P Jakes (Vice Chairman)** Independent Examinerfs Report to the Trnstees of Billericay Arts Association Respective responsibilities of trustees and examiner rKrt 144(2) CTrwiiE5 2011) w¥J Ihat an examinatson is required. examine the accounts under Section 145 of the 2011 Act; 145(5){b) of trE 2011 A4I).' to state whether parti(aJlar matters have c(xne to my attention. Basis of independent examinerfs statement that woukl be r8Juired in an audit. and miseqwty no 0&mrK￿ is extKessed as to the &£cwts ￿￿esent a ITue and fair v￿, ar#J tre repNt Iwniied to those ntss set in the statement bekm. Independent examinerfs statsment (1) whith grdes us reascywble **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
Plant Sales
Other income:
Bank interest received Santander
**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**
**2024**
£
405
419
1,761
19,227
4,420
0
0
42,601
1,181
96
23
677
**70,810**
0
18,380
34,923
**53,303**
17,507
104,185
**121,692**|**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**| 9 ## **Billericay Arts Association** ## **Balance Sheet as at 31 March 2024** |||**2024**|**2023**| |---|---|---|---| ||**Notes**|£|£| |**Fixed Assets**|||| |Tangible fixed assets|**10**|0|0| |**Current Assets**|||| |Debtors|**11**|3,858|3,440| |Cash at Bank and in hand||124,791|112,640| |||128,649|116,080| |**Current Liabilities**|||| |Creditors falling due|||| |within one year|**12**|-6,957|-11,895| |**Net current assets**||121,692|104,185| |**Net Assets**||121,692|104,185| |**Unrestricted funds**|**14**|121,692|104,185| |**Total Funds**||**121,692**|**104,185**| Approved by the Trustees of the Association on 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 2024** ## **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**
**2024**
824
824
**2024**
42,601
42,601|**Total Funds**
**2023**
707| |---|---|---| |||707| |||**2023**
31,870| |||31,870| 11 ## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2024** |**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**|**2024**
**£**
0
13,957
589
2,646
1,188
18,380
217
664
165
547
8,006
3,096
647
2,363
8,116
4,871
4,276
12
755
439
480
0
269
0
34,923
**53,303**|**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**| 12 ## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2024** ## **6 Tutors’ Salaries & Fees** |Staff costs comprised:
Gross Salaries
Professional services for Payroll
Total|**2024**
**£**
13,477
480
13,957|**2023**
**£**
14,044
396| |---|---|---| |||14,440| ## **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. 13 ## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2024** ## **10 Fixed Assets** |All fixed assets were written off
in 2022
NBV @ 31.03.24
**11**
**Debtors**
Trade debtors, Prepayments
& accrued income
**12**
**Creditors due within 1 year**|Property
Class
Equipment
Equipment
£
£
£|Furniture &
Fittings
£
0
**2024**
**£**
3,858
3,858
6,957
6,957|TOTAL
£| |---|---|---|---| ||0
0
0||0| ||||**2023**
**£**
3,440| ||||3,440| ||||11,895| ||||11,895| 14 ## **Billericay Arts Association Notes forming part of the Financial Statements for the year ended 31st March 2024** ## **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**
**2023**
**Resources**
**Resources**
**2024**
**£**
**£**
**£**
**£**
104,185
70,810
53,303
121,692| |---|---| ||104,185
70,810
53,303
121,692| 15