Company no. 02732325 Charity no. 1041335
## **Rural Media Charity Report and Audited Financial Statements 31 March 2021**
## **Rural Media Charity**
## **Reference and administrative details**
|**For theyear ended 31 March 2021**|**For theyear ended 31 March 2021**|
|---|---|
|**Company number**|02732325|
|**Charity number**|1041335|
|**Registered office and**|Packers House|
|**operational address**|25 West Street|
||Hereford|
||HR4 0BX|
|**Trustees**|Trustees, who are also directors under company law, who served during|
||the year and up to the date of this report were as follows:|
||Andrew Thorman, Chair|
||Anne Dawson (appointed 10 August 2021)|
||Beverley Gibbs (appointed 10 August 2021)|
||David Holdsworth|
||Elonka Soros (resigned 4 May 2021)|
||Jane Daggers (appointed 10 August 2021)|
||Joanna Davidson|
||John Bateman|
||Martin Hitchin|
||Matthew Hayes|
||Trudy Aspinwall (resigned 28 October 2020)|
|**Chief executive officer**|Nic Millington|
|**Company secretary**|Richard Deane|
|**Key management**|Nic Millington, CEO|
|**personnel**|Grant Black, Creative Director & Deputy CEO|
||Rich Matthews, Head of Development|
||Richard Deane, Finance & Operations Director|
|**Bankers**|Barclays Bank Plc|
||1 - 3 Broad Street|
||Hereford|
||HR4 9BA|
|**Solicitors**|Harrison Clark Rickerbys|
||5 Deansway|
||Worcester|
||Worcestershire|
||WR1 2JG|
|**Auditors**|Godfrey Wilson Limited|
||Chartered accountants and statutory auditors|
||5th Floor Mariner House|
||62 Prince Street|
||Bristol|
||BS1 4QD|
1
## **Rural Media Charity**
## **Report of the trustees**
## **For the year ended 31 March 2021**
The Trustees present their report and financial statements for the year ended 31 March 2021.
Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).
## **Objectives and activities**
Rural Media Charity’s mission statement is:
_To use media and creativity as a catalyst for social impact and positive change for individuals, communities, organisations, cultures and society._
To deliver our mission we have identified five strategic priorities:
## **1. Champion underrepresented people & communities**
Rural Media works with individuals of all ages and communities experiencing social, geographic, and material deprivation, with multiple and/or complex needs. Underrepresented communities we have provided participatory training, production opportunities, support, work experience, information and advice for include: young people experiencing domestic and relationship abuse; people with physical and learning disabilities; those in or at risk of entering the justice system; LGBTQ+; people experiencing mental health challenges; those in poverty or unemployed; people facing ethnic discrimination; elderly people both living independently and in residential settings; individuals and families experiencing geographical isolation and loneliness. For an example of our work see ruralmedia.co.uk/tvyp
## **2. Develop media skills & talent**
New talent and diverse voices are at the heart of everything we do at Rural Media. Recent years have seen our talent development work increasingly take centre stage, whether working with school children of all ages right through to giving new creative talent their first commission with a national broadcaster. This mirrors the launch of the Government’s Industrial Strategy with an emphasis on digital education and training, the BFI’s five-year strategy with its emphasis on ‘Future Learning and Skills’ and a natural extension of our own work for ACE across the West Midlands. From 2022 on, we aim to expand our support for talented young people, professional artists and arts organisations to push the boundaries between digital arts and creative practice, giving access to inspirational industry professionals, digital facilities, creative spaces, training, and employment opportunities. See ruralmedia.co.uk/bfi
## **3. Celebrate place & heritage**
Rural Media will continue to work with key stakeholders including National Lottery Heritage Fund, Historic England and National Trust, and, vitally, with communities to strengthen a sense of belonging and pride, share histories and memories, and celebrate what makes a place special. We will inspire and encourage communities locally, regionally and nationally to develop creative enterprises that breathe new life into the places and spaces where they live. More diverse and younger residents will be included in arts, heritage, and cultural activity. Through the creation and distribution of high-quality digital content and improved use and understanding of data, communities will retain younger generations, create employment and creative workspaces, and attract more visitors, increasing sustainability across sectors. See - - ruralmedia.co.uk/charity/projects/herefordshires great place
2
## **Rural Media Charity**
## **Report of the trustees**
## **For the year ended 31 March 2021**
## **4. Raise awareness of rural issues & culture**
Having worked closely with rural communities, service providers and policymakers for over 30 years Rural Media is highly regarded and trusted for its insight into rural culture. With 17% of England’s residents living in the countryside yet so much of rural life is misunderstood and/or misrepresented, raising awareness of the issues facing rural communities is a key priority for Rural Media. Rural Media plays an active role in ACE Rural Stakeholders’ Group and development of ACE 2020-30 Strategy, and other national policy forums, e.g. Rural Services Network (RSN), BBC Rural Affairs Committee etc. As we become a digital-first society with widening choice of where to live, work or study, the interdependence of rural and urban culture, economy and wellbeing are increasingly recognised. Rural Media will contribute creatively and critically to this major policy discourse. See ruralmedia.co.uk/thewillows
## **5. Support arts & cultural organisations**
Rural Media’s less visible but vital work at local and regional level involves supporting arts and cultural organisations to create innovative digital work that creates opportunities for new talent and reaches new audiences. We advocate powerfully for the role of creativity and culture social and economic development, leading or supporting local cultural organisations, and investing via our delegated funding schemes to create new creative partnerships or training for cultural leaders.
Our in-depth local knowledge and understanding of rural communities and their needs feed into our own creative programming as well as regional and national economic and cultural policy development. To sustain and grow this work, we will continue to seek new partnerships and attract cross-sector investment for strategic revenue and capital projects. Our support for cultural enterprise development, especially within the creative technology sector contributes significantly towards regeneration of rural cities and market towns. See ruralmedia.co.uk/charity/projects/invisible-arts-network
The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities. In particular, the trustees consider how planned activities will contribute to the charity’s aims and objectives. Rural Media Charity provides public benefit through its work with communities, schools, groups and individuals to create issue-driven films, heritage and digital arts projects that raise awareness, influence change and celebrate rural life. The charity’s work with young people is designed to foster confidence and equip them with the flexible skillset to work in today's digital industries. The charity’s education programme for young people includes the provision of a British Film Institute Film Academy course. Rural Media Charity’s work with marginalised communities is nationally recognised. The charity publishes Travellers’ Times, a bi-annual print magazine and daily website (www.Travellerstimes.org.uk), that also delivers media skills, news-writing courses and events to train and support Gypsies and Travellers to tell their stories, educate people and advocate for their communities.
## **Achievements and performance**
During 2020-21 Rural Media Charity worked with more than 2,000 people and with our inclusive outreach programme and project portfolio many were from a diverse or disadvantaged background. During the COVID-19 pandemic, due to our digital expertise and in house staff skills, we were able to switch our workshops, training and production online to ensure that we were able to deliver our services effectively. We delivered high-quality media resourcing and training, increasing the skills of young talent in the Midlands. Using film, media and digital art to strengthen communities we were able to give a platform to unheard voices, deliver much needed bespoke and accessible health & wellbeing advice and information directly to communities in crisis and support creative rural talent.
3
## **Rural Media Charity**
## **Report of the trustees**
## **For the year ended 31 March 2021**
Our multi-faceted projects have bettered access to services and advice for Gypsy, Roma and Traveller communities nationally, expanded our community outreach across the most underserved areas of Herefordshire and strengthened creative networks and supported young talent right across the Midlands region. In doing so we created a portfolio of innovative creative media including films, moving image, animation, audio, educational resources, health and wellbeing resources, photography collections, websites and printed media. Through our broadcast and digital channels, we estimate our audience reach to be in excess of one million over the course of the year.
## Project highlights were:
## **British Film Institute (BFI)**
In the eighth year of BFI Film academy, Rural Media trained 22 young people in filmmaking. Participants received a bespoke training schedule, notably producing practical workshops for handson experience. Delivered predominantly remotely, the participants had to create, produce and deliver their concepts via Zoom. The 2020-21 cohort produced four short films, all focused on topical themes including body image, mental health and the global pandemic. In being part of the project, the cohort also had the opportunity to gain an industry recognised NCFE qualification in Preparing To Work In The Film Industry. See ruralmedia.co.uk/bfi
## **Herefordshire is a Great Place**
Herefordshire is a Great Place is part of the national Great Place Scheme, co-funded by Arts Council England and National Lottery Heritage Fund with support from Historic England and local partners including Herefordshire Council and the Elmley Foundation. The scheme, delivered by Rural Media Charity on behalf of Herefordshire Cultural Partnership, secured a 12-month activity extension to March 2021 which enabled Herefordshire is a Great Place to offer bespoke support to community groups and third-party organisations delivering public activity. Grant agreements were amended to allow revised activity to respond to Covid restrictions. In tandem, the scheme piloted two online First Friday exhibitions curated by a Young Creatives Board, delivered 6 online sessions in partnership with Allinteractive Inclusion to influence inclusive access to culture and heritage assets in the county, and began the development of legacy projects. The programme was also evaluated in order to share key findings and lessons with local, regional and national stakeholders involved in cultural place- - making. See ruralmedia.co.uk/charity/projects/herefordshires great place
## **New Creatives**
New Creatives, an Arts Council England and BBC Arts supported talent development scheme, offers commissioning opportunities for Midlands based emerging creatives to make new artistic works in film, audio or interactive media, designed for BBC channels and platforms. During 2020-21 the New Creatives team and BBC commissioning director commissioned 41 young artists and supported them to produce productions across film, audio and interactive. Commissioned artists have all benefitted from professional development, production and marketing and distribution training. See ruralmedia.co.uk/newcreatives
## **Point of View**
Supported by Esmée Fairbairn Foundation through core funding, the P.O.V. programme reached 1,000 14-25 year-olds in Herefordshire through a seven month creative consultation and outreach programme. A widely shared survey was proactively backed by Herefordshire Council and in April 2021 we launched the first Young Leaders creative programmes. The current programme, which will be scaled up into Shropshire and Worcestershire in 2021-2023, involves 28 young people supported to explore youth issues, share lived experiences, gain digital and media skills while working towards a Level 3 accreditation and producing creative content that influences policy changes. See pointofviewrural.com
4
## **Rural Media Charity**
## **Report of the trustees**
## **For the year ended 31 March 2021**
## **Travellers’ Times - TT Connect and TT Connect Covid-19 Activity**
Funded by the National Lottery Community Fund, TT Connect and TT Connect Covid-19 Activity continued the work of Travellers’ Times as community led multi-media projects that seek to improve lives through challenging negative media and providing a platform for Gypsy and Traveller voices to be heard. We use co-production, consultation and training. In 2020-21 we produced two full-page magazines, four ‘Covid Special editions’ and over 50 short information and creative videos to provide positive news and features and information about health, wellbeing-education and employment. The magazine has a readership of approximately 100,000. The website hosted a further 150+ co-produced articles and short films and receives around 950,000 visitors a year.
Throughout the project we conducted action based research with our readers, stakeholders and the wider public to inform the development of a four-year project to transition Travellers’ Times into an independent community-led entity through work-based training and continuing professional development. See travellerstimes.org.uk
## **Financial review**
The consolidated financial statements for the year to 31 March 2021 are for Rural Media Charity and its wholly-owned trading subsidiary, Rural Media Productions Ltd. The financial statements have been prepared according to the requirements of the Statement of Recommended Practice – Accounting by Charities (effective from January 2019) and have been prepared on the basis of funds accounting, rather than on an income and expenditure basis.
For the year to 31 March 2021 total income was £1,087,708 (2020: £1,485,884) of which unrestricted income was £564,048 (2020: £437,916). The surplus on unrestricted funds was £54,356 (2020: £19,542). Rural Media Productions Ltd contributed £39,882 (2020: £22,729) to the surplus on unrestricted funds. Rural Media Productions Ltd donates all its profits to Rural Media Charity under a deed of covenant.
At 31 March 2021, a designated fund was created representing the net book value of fixed assets and £67,970 was transferred to that fund leaving a balance of £112,082 on the unrestricted general fund.
The trustees recognise the importance of maintaining a realistic level of reserves in order to ensure that Rural Media Charity continues to be in a position to discharge its obligations to its beneficiaries, partners, creditors and staff. The reserves policy is reviewed annually by trustees to take into account risk and sustainability of the organisation.
At 31 March 2021 the trustees redefined the reserves target such that unrestricted general funds, excluding designated funds, are required to be at least equal to 3 months’ cover of core costs (being establishment and staff expenditure not directly attributable to project activity) to be held in the form of cash at bank in a specially designated bank deposit account. At 31 March 2021 the charity's unrestricted general fund target was £80,000 (3 months’ core cost cover) and the actual unrestricted general fund was £112,082 (4.2 month’s cover) of which £100,000 (3.8 months’ cover) was held on bank deposit account (2020: unrestricted reserves target £70,000 (3 months’ cover), actual unrestricted reserves £83,001 (3.6 months’ cover), balance on bank deposit account, £40,000 (1.7 months’ cover)).
5
## **Rural Media Charity**
## **Report of the trustees**
## **For the year ended 31 March 2021**
The trustees have considered the major risks to which the charity is exposed and have implemented review systems to mitigate these risks.
The major risks are currently identified as:
- Reliance on charitable and other income to supplement earned income to meet the cost of the creative programme;
- Changes in the arts funding system; and
- Critical impact of the loss of key senior staff.
To mitigate these risks the charity:
- Ensures that it has a diverse funding profile without an over-reliance on any one source of funding;
- Reviews existing and potential ways of generating earned income and works towards financial sustainability;
- Maintains and enhances relationships with key funders and remains well informed about developments in the arts funding arena;
- Invests time and effort in the exploration of funding opportunities and financial partnerships; and
- • Ensures that all staff, including key senior staff, are well supported and that there is a regular appraisal of skills, roles and responsibilities within the senior staff team.
## **COVID-19**
The trustees have considered the impact that the COVID-19 pandemic will have on the charity’s current and future financial position. The expected implications are:
- Production work was delayed throughout 2020-21 with increased costs of production arising from the implementation of Covid safety measures. Although to a lesser degree, the impact has continued into the first half of 2021-22; and
- There has been a shift towards working remotely with an emphasis on creating ‘self-generated’ outputs using digital methods of content production and distribution.
The charity is taking the following steps to mitigate the threat that COVID-19 may pose to the organisation by:
- Performing, monitoring and reviewing risk assessments for office, production and education delivery work; and
- Implementing controls and procedures to reduce the risk of the spread of COVID-19 amongst Rural Media Charity’s workforce, partners and beneficiaries.
During 2020-21, in response to the Covid emergency, Rural Media Charity received funding of £39,550 from the National Lottery Community Fund. This funding enabled the charity to provide additional support to its beneficiaries in the form of positive news, features and information about health, wellbeing-education and employment that were of particular relevance to members of Gypsy, Roma and Traveller communities.
Also during 2020-21, Rural Media Charity received £125,000 of grant funding from the Cultural Recovery Fund (CRF1) managed by Arts Council England of behalf of the Government Department for Digital, Culture, Media and Sport. The CRF1 funding enabled the charity to protect its creative programme by undertaking an agile, iterative restructure centered on technology, and to further develop, refine and consolidate outreach, engagement and remote production practices begun in lockdown.
6
## **Rural Media Charity**
## **Report of the trustees**
## **For the year ended 31 March 2021**
During the first half of 2021-22, Rural Media Charity received a further £62,000 of grant funding from the Cultural Recovery Fund (CRF2) which supports the charity’s sustainability by building the charity’s development capacity in order to develop an increased volume of project funding applications to trusts & foundations, build new organisation partnerships, and to increase on-the-ground community outreach.
The trustees consider that the charity will continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved for the following reasons:
- The charity holds unrestricted general reserves of £112,082;
- The charity’s key funders have confirmed that they will continue to support the charity for at least the next 12 months; and
- The charity benefits from holding National Portfolio Organisation (NPO) status with Arts Council England (ACE). To support NPOs through and beyond the COVID-19 pandemic ACE has extended the NPO funding period from four years to five. The unrestricted NPO funding from ACE is expected to be £251,036 for both 2021-22 and 2022-23.
The trustees, therefore, consider it appropriate to adopt the going concern basis for the preparation of the accounts, as detailed in note 1(c) to the financial statements.
## **Plans for future periods**
At 31 March 2021 Rural Media Charity was entering into what would have been its fourth and final year as an organisation with National Portfolio Organisation (NPO) status with Arts Council England (ACE). As explained above, in response to the COVID-19 pandemic ACE has extended the NPO funding period by a year to include the financial year 2022-23. With NPO status comes secured unrestricted funding to develop Rural Media Charity’s digital arts portfolio. NPO status is the foundation upon which Rural Media Charity will build a more secure and sustainable financial position. As part of its business plan, Rural Media Charity’s trading subsidiary, Rural Media Productions Ltd, will grow its income and surplus.
## **Employees**
At Rural Media Charity we rely heavily on the excellence of our staff to help achieve and maintain the highest standards of our creative outputs. We support our staff through regular performance reviews and through training and development programmes that are tailored to the individual.
## **Structure, governance and management**
Rural Media Charity is a charitable company limited by guarantee, incorporated on 17 July 1992 and registered as a charity on 7 October 1994. The organisation is constituted under a Memorandum of Association which sets out the objects and powers of the charitable organisation and is governed under the Articles of Association. Rural Media Charity wholly owns a subsidiary company, Rural Media Productions Ltd that commenced trading on 13 May 2016.
The directors are also its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees. The organisation does not have a membership and the voluntary Board of Trustees is responsible for the overall management of the charity. The trustees have power to set an upper limit to the number of trustees appointed to the Board, currently there is no upper limit. There must be a minimum of three trustees for the Board to be quorate. The trustees meet in full on a quarterly basis.
The selection and recruitment of new trustees is the responsibility of the full Board, who appoint by invitation of the Board. New trustees are proactively recruited to meet any skills gaps as identified by trustees. All new trustees are invited to attend one full Board meeting, and activities associated to that meeting, before being formally nominated.
7
## **Rural Media Charity**
## **Report of the trustees**
## **For the year ended 31 March 2021**
Each new trustee receives an induction pack prior to nomination setting out their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, and minutes which capture the recent financial performance of the charity. Regular Board development sessions are held and each session following appointment of new trustees incorporates induction and orientation information for the newly appointed Trustees.
The day-to-day running of the organisation is carried out by a Senior Management Team (SMT) members of which are appointed by the trustees. The SMT comprises: Chief Executive Officer, Creative Director & Deputy CEO, Head of Development and Finance & Operations Director. To facilitate effective operations, the Chief Executive Officer and the SMT have delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and programme related activity. Members of the SMT are not directors of the charitable company in the legal sense under Company Law.
The charity adopts the NJC pay structure and pay scales for all its staff, including key management personnel. NJC scales are local government pay scales that are a result of negotiations between trade unions (Unite, Unison and GMB) and the Local Government Association. NJC pay scales are used extensively in the voluntary sector.
## **Fundraising**
The charity does not seek to raise funds from the public and therefore has nothing to report on its fundraising approach and standards.
## **Statement of responsibilities of the trustees**
The trustees (who are also Directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
The trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the group and the incoming resources and application of resources, including the net income or expenditure, of the charity and the group for the year. In preparing those financial statements the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and the group and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
8
## **Rural Media Charity**
## **Report of the trustees**
## **For the year ended 31 March 2021**
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- • the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.
## **Auditors**
Godfrey Wilson Limited were re-appointed as auditors to the group and parent charity during the year and have expressed their willingness to continue in that capacity.
Approved by the trustees on 22 October 2021 and signed on their behalf by
Andrew Thorman - Chair
9
## **Independent auditors' report**
## **To the members of**
## **Rural Media Charity**
## **Opinion**
We have audited the financial statements of Rural Media Charity (the 'parent charity') and its subsidiary (the 'group') for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, consolidated and parent charity balance sheets, consolidated statement of cash flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and the Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
## In our opinion, the financial statements:
- give a true and fair view of the state of the group and parent charity's affairs as at 31 March 2021 and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the annual report other than the group and parent charity financial statements and our auditor’s report thereon. Our opinion on the group and parent charity financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
10
## **Independent auditors' report**
## **To the members of**
## **Rural Media Charity**
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Trustees’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and the parent charity and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charity, or returns adequate for our audit have not been received from branches not visited by us;
- the parent charity financial statements are not in agreement with the accounting records and
- certain disclosures of Trustees’ remuneration specified by law are not made; or
- we have not obtained all the information and explanations necessary for the purposes of our audit.
## **Responsibilities of the Trustees**
As explained more fully in the Trustees’ responsibilities statement set out in the Trustees’ report, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Our responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
11
## **Independent auditors' report**
## **To the members of**
## **Rural Media Charity**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:
(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.
(2) We reviewed the charity’s policies and procedures in relation to:
- Identifying, evaluating and complying with laws and regulations, and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risk of fraud, and whether they were aware of any actual, suspected or alleged fraud; and
- Designing and implementing internal controls to mitigate the risk of non-compliance with laws and regulations, including fraud.
(3) We inspected the minutes of trustee meetings.
(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.
(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.
(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.
(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:
▪Testing the appropriateness of journal entries;
▪Assessing judgements and accounting estimates for potential bias;
- ▪Reviewing related party transactions; and
▪Testing transactions that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
12
## **Independent auditors' report**
## **To the members of**
## **Rural Media Charity**
## **Use of our report**
This report is made solely to the charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charityʼs members those matters we are required to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.
Date: 22 October 2021
## **Rob Wilson FCA (Senior Statutory Auditor)**
For and on behalf of:
## **GODFREY WILSON LIMITED**
Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD
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## **Rural Media Charity**
**Consolidated statement of financial activities** _(incorporating an income and expenditure account)_
## **For the year ended 31 March 2021**
|Restricted
Note
£
£
**Income from:**
Donations
3
125,000
317,316
Charitable activities
4
398,660
246,688
Investments
-
44
Other income
-
-
**Total income**
523,660
564,048
**Expenditure on:**
Raising funds
-
52,351
Charitable activities
531,970
457,341
**Total expenditure**
6
531,970
509,692
**Net income / (expenditure)**
(8,310)
54,356
Transfers between funds
(42,695)
42,695
**Net movement in funds**
7
(51,005)
97,051
**Reconciliation of funds:**
Total funds brought forward
87,836
83,001
**Total funds carried forward**
36,831
180,052
Unrestricted|**2021**
**Total**
**£**
**442,316**
**645,348**
**44**
**-**
**1,087,708**
**52,351**
**989,311**
**1,041,662**
**46,046**
**-**
**46,046**
**170,837**
**216,883**|2020
Total
£
252,500
1,232,776
62
546|
|---|---|---|
|||1,485,884|
|||49,808
1,360,456|
|||1,410,264|
|||75,620
-|
|||75,620
95,217|
|||170,837|
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 20 to the accounts.
14
## **Rural Media Charity**
## **Consolidated balance sheets**
## **As at 31 March 2021**
|Note
**Fixed assets**
Tangible assets
12
Investments
13
**Current assets**
Debtors
15
Cash at bank and in hand
**Liabilities**
Creditors: amounts falling due within 1 year 16
**Net current assets**
**Total assets less current liabilities**
Provisions for liabilities
18
**Net assets**
19
**Funds**
20
Restricted funds
Unrestricted funds
Designated funds
General funds
**Total charity funds**|**The group**
**2021**
**£**
**67,970**
**-**
**67,970**
**96,922**
**164,417**
**261,339**
**(112,426)**
**148,913**
**216,883**
**-**
**216,883**
**36,831**
**67,970**
**112,082**
**216,883**|The group **The charity**
2020
**2021**
£
**£**
34,382
**67,970**
-
**2**
34,382
**67,972**
265,204
**95,079**
52,307
**137,475**
317,511
**232,554**
(179,738)
**(83,643)**
137,773
**148,911**
172,155
**216,883**
(1,318)
**-**
170,837
**216,883**
87,836
**36,831**
-
**67,970**
83,001
**112,082**
170,837
**216,883**|The charity
2020
£
34,382
2|
|---|---|---|---|
||||34,384|
||||196,919
48,089|
||||245,008
(107,237)|
||||137,771|
||||172,155
(1,318)|
||||170,837|
||||87,836
-
83,001|
||||170,837|
These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.
Approved by the Trustees on 22 October 2021 and signed on their behalf by
Andrew Thorman - Chair John Bateman - Trustee
15
## **Rural Media Charity**
## **Consolidated statement of cash flows**
## **For the year ended 31 March 2021**
|**Cash used in operating activities:**
Net movement in funds
Adjustments for:
Depreciation charges
Interest from investments
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Increase / (decrease) in provisions
**Net cash provided by / (used in) operating activities**
**Cash flows from investing activities:**
Interest from investments
Purchase of tangible fixed assets
**Net cash provided used in investing activities**
**Increase / (decrease) in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**|**2021**
**£**
**46,046**
**17,234**
**(44)**
**168,282**
**(67,312)**
**(1,318)**
**162,888**
**44**
**(50,822)**
**(50,778)**
**112,110**
**52,307**
**164,417**|2020
£
75,620
44,740
(62)
(162,901)
120,104
(280)|
|---|---|---|
|||77,221|
|||62
(28,421)|
|||(28,359)|
|||48,862
3,445|
|||52,307|
The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.
16
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
**1. Accounting policies**
## **a) Basis of preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Rural Media Charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.
## **b) Group accounts**
These financial statements consolidate the results of the charitable company and its whollyowned (controlled) subsidiary on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.
## **c) Going concern basis of accounting**
The accounts have been prepared on the assumption that the charity is able to continue as a going concern. The COVID-19 pandemic has had a profound impact on the global economy, and in turn has affected the charity. The trustees have considered the impact of this issue on the charity’s current and future financial position. The group holds unrestricted, general reserves of £112,082 and cash balances of £164,417. The charity’s key funders have confirmed that they will continue to support the charity for at least the next 12 months. The charity benefits from holding National Portfolio Organisation (NPO) status with Arts Council England (ACE). To support NPOs through and beyond the COVID-19 pandemic ACE extended the NPO funding period from four years to five. The unrestricted NPO funding from ACE is expected to be £251,036 for each of the next two years to 2022-23. The trustees consider that the charity has sufficient cash reserves to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved.
## **d) Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Income received in advance of provision of services under contract is deferred until criteria for income recognition are met.
17
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
## **e) Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.
## **f) Funds accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the Trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.
## **g) Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **h) Allocation of support costs**
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated in full to expenditure on charitable activities which is deemed to be reflective of the activities of the charity in this period.
## **i) Grants payable**
Grants payable are charged in the year in which the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attached have been fulfilled. Grants offered subject to conditions at the year end are noted as commitment but are not accrued as expenditure.
## **j) Tangible fixed assets**
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows: Motor vehicles 25% straight line Technical equipment 25% straight line Fixtures and fittings 25% straight line
Items of equipment are capitalised where the purchase price exceeds £1,000.
## **k) Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
18
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
## **l) Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **m) Creditors**
Creditors and provisions are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **n) Financial instruments**
The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.
## **o) Pension costs**
Pension costs are payments to employees' personal pensions.
The charitable company also participated in a defined benefit contribution scheme. The scheme is a multi-employer scheme. In 2005 the scheme was closed to new and existing members. During the year, the charitable company made a payment to settle the debt due in full, under the terms of section 75 of the Pensions Act 1995 (as amended), in relation to the cessation of participation of the charitable company as an employer in the pension scheme operated by The Pensions Trust. There is no further liability due to the scheme.
## **p) Redundancy payments**
Where an employee receives a termination benefit the full cost is recognised at the date the employee is notified.
## **q) Accounting estimates and key judgements**
In the application of the charity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key source of estimation uncertainty that has a significant effect on the amounts recognised in the financial statements is depreciation, as described in note 1j to the financial statements.
19
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
## **2. Prior period comparatives: statement of financial activities**
|**Income from:**
Donations
Charitable activities
Investments
Other income
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
**Total expenditure**
**3.**
**Income from donations**
**Grants**
Arts Council England
Cultural Recovery Fund
Esmee Fairbairn Foundation
**Total income from donations**
**Prior period comparative:**
**Grants**
Arts Council England
Elmley Foundation
**Total income from donations**
**Net income / (expenditure) and net movement in**
**funds**|Restricted
£
£
6,000
246,500
1,041,968
190,808
-
62
-
546
1,047,968
437,916
-
49,808
991,890
368,566
991,890
418,374
56,078
19,542
Restricted
£
£
-
251,036
125,000
-
-
66,280
125,000
317,316
Restricted
£
£
-
246,500
6,000
-
6,000
246,500
Unrestricted
Unrestricted
Unrestricted|2020
Total
£
252,500
1,232,776
62
546|
|---|---|---|
|||1,485,884|
|||49,808
1,360,456|
|||1,410,264|
|||75,620|
|||**2021**
**Total**
**£**
**251,036**
**125,000**
**66,280**|
|||**442,316**|
|||2020
Total
£
246,500
6,000|
|||252,500|
20
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
## **4. Income from charitable activities**
|**Grants and service level agreements**
National Lottery Heritage Fund
Arts Council England
National Lottery Community Fund
The British Film Institute
Herefordshire Council
Other <£5k
**Earned income**
**Total income from charitable activities**
**Prior period comparative:**
**Grants and service level agreements**
National Lottery Heritage Fund
Arts Council England
National Lottery Community Fund
Herefordshire Community Foundation
The British Film Institute
Herefordshire Council
E F Bulmer Benevolent Foundation
Other <£5k
**Earned income**
**Total income from charitable activities**|Restricted
£
£
62,979
-
198,000
-
106,681
-
17,000
-
13,000
-
1,000
-
-
246,688
398,660
246,688
Restricted
£
£
430,154
-
264,000
-
263,172
-
20,000
-
17,000
-
13,000
-
10,000
-
23,732
-
910
190,808
1,041,968
190,808
Unrestricted
Unrestricted|**2021**
**Total**
**£**
**62,979**
**198,000**
**106,681**
**17,000**
**13,000**
**1,000**
**246,688**|
|---|---|---|
|||**645,348**|
|||2020
Total
£
430,154
264,000
263,172
20,000
17,000
13,000
10,000
23,732
191,718|
|||1,232,776|
## **5. Government grants**
The charitable company receives government grants, defined as funding from Arts Council England, National Lottery Community Fund, National Lottery Heritage Fund, The British Film Institute and Herefordshire Council, to fund core services and charitable activities. The total value of such grants in the period ending 31 March 2021 was £773,696 (2020: £1,233,826). There are no unfulfilled conditions or contingencies attaching to these grants in the current or prior year.
21
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
## **6. Total expenditure**
|**Total expenditure**||||
|---|---|---|---|
|Staff costs (note 10)
Training
Production costs
Travel and subsistence
Equipment hire
Grants payable (note 8)
Rent, rates and premises
Insurance
Heat, light and power
Motor expenses
Printing and stationery
Telephone and computer
Memberships and subscriptions
Marketing
Bank charges and interest
Depreciation
**Sub-total**
**Total expenditure**
Professional fees
Allocation of support and governance
costs|£
52,351
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
52,351
-
**52,351**
Raising
funds|£
£
543,861
9,961
1,237
-
277,758
-
1,167
-
15,242
-
26,855
-
31,521
-
9,709
279
7,168
-
1,724
-
2,010
-
17,410
-
15,919
-
475
-
280
-
17,234
-
240
9,261
969,810
19,501
19,501
(19,501)
**989,311**
**-**
Support and
governance
costs
Charitable
activities|**2021**
**Total**
**£**
**606,173**
**1,237**
**277,758**
**1,167**
**15,242**
**26,855**
**31,521**
**9,988**
**7,168**
**1,724**
**2,010**
**17,410**
**15,919**
**475**
**280**
**17,234**
**9,501**|
||||**1,041,662**
-|
||||**1,041,662**|
Total governance costs were £8,028 (2020: £6,283).
22
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
|**6.**
**Total expenditure (continued)**
**Prior period comparative**
Staff costs (note 10)
Training
Production costs
Travel and subsistence
Equipment hire
Grants payable (note 8)
Rent, rates and premises
Insurance
Heat, light and power
Motor expenses
Printing and stationery
Telephone and computer
Memberships and subscriptions
Marketing
Bank charges and interest
Depreciation
**Sub-total**
**Total expenditure**
Professional fees
Allocation of support and governance
costs|£
49,808
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
49,808
-
49,808
Raising
funds|£
£
462,624
25,571
2,126
-
576,089
-
2,822
-
17,018
-
128,411
-
31,589
-
8,411
260
9,395
-
1,459
-
5,398
-
23,852
-
9,067
-
1,946
-
425
-
44,740
-
3,230
6,023
1,328,602
31,854
31,854
(31,854)
1,360,456
-
Charitable
activities
Support and
governance
costs|2020
Total
£
538,003
2,126
576,089
2,822
17,018
128,411
31,589
8,671
9,395
1,459
5,398
23,852
9,067
1,946
425
44,740
9,253|
|---|---|---|---|
||||1,410,264
-|
||||1,410,264|
23
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
## **7. Net movement in funds**
This is stated after charging:
||**2021**|2020|
|---|---|---|
||**£**|£|
|Depreciation|**17,234**|44,740|
|Operating lease payments|**30,370**|30,370|
|Trustees' remuneration|**Nil**|Nil|
|Trustees' reimbursed expenses*|**Nil**|14|
|Auditors' remuneration:|||
|Statutory audit (including VAT)|**7,710**|5,520|
|Other services|**600**|950|
*No trustees were reimbursed any expenses during the year (2020: One trustee was reimbursed for travel costs).
## **8. Grants payable**
|Grants payable to organisations:
Meadow Arts
Open Sky Theatre
Feral Productions
Aspire Living
The Big Skill CIC
Close House
Ledbury Poetry Festival
The Sidney Nolan Trust
Everybody Dancing
Herefordshire Museum Service (Herefordshire Council)
MASH Cinema
Powerhouse
Wye Valley Learning Network
Other (<£5k)
Grants payable to 11 individuals (2020: 22)|**2021**
**£**
**3,000**
**3,000**
**2,800**
**2,000**
**2,000**
**2,000**
**2,000**
**2,000**
**-**
**-**
**-**
**-**
**-**
**4,916**
**3,139**
**26,855**|2020
£
1,200
-
1,200
-
-
-
-
12,000
12,000
12,000
12,000
11,404
12,000
40,916
13,691|
|---|---|---|
|||128,411|
## **9. Grant commitments**
|Grant commitments brought forward
Grants committed during the period
Grants paid during the period
Grant commitments carried forward|**2021**
**£**
**20,400**
**26,855**
**(47,255)**
**-**|2020
£
-
128,411
(108,011)|
|---|---|---|
|||20,400|
24
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
## **10. Staff costs and numbers**
Staff costs were as follows:
|**Staff costs and numbers**
Staff costs were as follows:|||
|---|---|---|
|Salaries and wages
Social security costs
Pension costs
Statutory redundancy costs|**2021**
**£**
**537,652**
**50,724**
**17,797**
**-**
**606,173**|2020
£
477,826
44,980
10,701
4,496|
|||538,003|
No employees earned more than £60,000 during the year (2020: Nil).
Redundancy costs comprise statutory redundancy payments made to three members of staff following the end of project funding.
The key management personnel of the charitable company comprise the Trustees, the Chief Executive Officer, the Creative Director & Deputy CEO, the Head of Development and the Finance & Operations Director. The total employee benefits of the key management personnel were £238,720 (2020: £227,877).
|Average number of employees (headcount)
Average number of employees (full-time equivalent)|**2021**
**No.**
**17.4**
**15.0**|2020
No.
15.4
13.5|
|---|---|---|
## **11. Taxation**
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
25
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
## **12. Tangible fixed assets**
|**The charity and group**
**Cost**
At 1 April 2020
Additions
At 31 March 2021
**Depreciation**
At 1 April 2020
Charge for year
At 31 March 2021
**Net book value**
**At 31 March 2021**
At 31 March 2020|**Motor**
**vehicles**
**£**
27,270
-
27,270
27,270
-
27,270
**-**
-|**£**
**£**
146,464
5,215
50,822
-
197,286
5,215
115,513
1,784
16,014
1,220
131,527
3,004
**65,759**
**2,211**
30,951
3,431
**Technical**
**equipment**
**Fixtures and**
**fittings**|**Total**
**£**
**178,949**
**50,822**|
|---|---|---|---|
||||**229,771**|
||||**144,567**
**17,234**|
||||**161,801**|
||||**67,970**|
||||34,382|
## **13. Investments**
## _Rural Media Productions Ltd_
The charitable company owns the whole of the issued share capital (2 ordinary £1 shares) of Rural Media Productions Ltd, a company registered in England and Wales. The subsidiary is used for nonprimary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are gift aided to the charitable company. A summary of the results of the subsidiary is shown below:
|Turnover
Cost of sales
Gross profit
Administrative expenses
Profit on ordinary activities|**2021**
**£**
**191,090**
**(120,621)**
**70,469**
**(30,587)**
**39,882**|2020
£
190,348
(145,668)|
|---|---|---|
|||44,680
(21,951)|
|||22,729|
26
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
**13. Investments (continued)**
The aggregate of the assets, liabilities and funds was:
|Assets
Liabilities
Funds|**2021**
**£**
**77,177**
**(77,175)**
**2**|2020
£
80,211
(80,209)|
|---|---|---|
|||2|
## **14. Parent charity**
The parent charity's gross income and the results for the year are disclosed as follows:
|Gross income
Results for the year|**2021**
**£**
**963,842**
**46,046**|2020
£
1,338,266
75,622|
|---|---|---|
## **15. Debtors**
|Trade debtors
Accrued income
Rural Media Productions Limited
Prepayments
Other debtors|**2021**
2020
**£**
£
**6,204**
78,003
**67,171**
177,323
**-**
-
**20,943**
7,575
**2,604**
2,303
**96,922**
265,204
**The group**|**2021**
2020
**£**
£
**-**
9,885
**23,139**
169,448
**48,393**
7,708
**20,943**
7,575
**2,604**
2,303
**95,079**
196,919
**The charity**|**2021**
2020
**£**
£
**-**
9,885
**23,139**
169,448
**48,393**
7,708
**20,943**
7,575
**2,604**
2,303
**95,079**
196,919
**The charity**|
|---|---|---|---|
||||196,919|
## **16. Creditors : amounts due within 1 year**
|Trade creditors
Other taxation and social security
VAT
Accruals
Deferred income (see note 17)
Other creditors
Grants payable|**2021**
2020
**£**
£
**42,103**
65,188
**14,219**
10,533
**7,072**
17,093
**37,773**
7,954
**8,200**
58,570
**3,059**
-
**-**
20,400
**112,426**
179,738
**The group**|**2021**
2020
**£**
£
**35,352**
61,065
**14,219**
10,533
**-**
-
**31,013**
7,004
**-**
8,235
**3,059**
-
**-**
20,400
**83,643**
107,237
**The charity**|**2021**
2020
**£**
£
**35,352**
61,065
**14,219**
10,533
**-**
-
**31,013**
7,004
**-**
8,235
**3,059**
-
**-**
20,400
**83,643**
107,237
**The charity**|
|---|---|---|---|
||||107,237|
27
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
## **17. Deferred income**
|**Deferred income**||||
|---|---|---|---|
|At 1 April 2020
Deferred during the year
Released during the year
At 31 March 2021|**2021**
2020
**£**
£
**58,570**
3,050
**8,200**
58,570
**(58,570)**
(3,050)
**8,200**
58,570
**The group**|**2021**
2020
**£**
£
**8,235**
-
**-**
8,235
**(8,235)**
-
**-**
8,235
**The charity**||
||||8,235|
Deferred income relates to income received in advance of delivery of services.
## **18. Provisions for liabilities**
|**Provisions for liabilities**|||
|---|---|---|
||**The group and the charity**||
||**2021**|2020|
||**£**|£|
|Defined benefit pension scheme|**-**|1,318|
The charitable company participated in The Pensions Trust - The Growth Plan defined benefit multiemployer scheme. During the year, payment was made in full to settle the debt due, as described in note 1(o).
## **19. Analysis of net assets between funds**
|Tangible fixed assets
Current assets
Current liabilities
**Net assets at 31 March 2021**
**Prior year comparative**
Tangible fixed assets
Current assets
Current liabilities
Provisions for liabilities
Net assets at 31 March 2020|£
-
56,145
(19,314)
**36,831**
£
-
149,048
(61,212)
-
87,836
Restricted
funds
Restricted
funds|Designated
funds
£
67,970
-
-
**67,970**
Designated
funds
£
-
-
-
-
-|General
funds
£
-
205,194
(93,112)
**112,082**
General
funds
£
34,382
168,463
(118,526)
(1,318)
83,001|**Total**
**funds**
**£**
**67,970**
**261,339**
**(112,426)**|
|---|---|---|---|---|
|||||**216,883**|
|||||Total
funds
£
34,382
317,511
(179,738)
(1,318)|
|||||170,837|
28
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
## **20. Movements in funds**
|**Restricted funds**
British Film Institute - Film Academy
Cultural Recovery Fund
Herefordshire is a Great Place
New Creatives
**Total restricted funds**
_Designated funds_
Fixed asset fund
General funds
**Total unrestricted funds**
**Total funds**
National Lottery Community Fund -
TT Connect
National Lottery Community Fund -
TT Connect Covid-19 Activity
**Unrestricted funds**|At 1 April
2020
£
-
-
(9,121)
91,442
-
5,515
87,836
-
83,001
83,001
170,837|Income
£
17,000
125,000
76,979
67,131
39,550
198,000
523,660
-
564,048
564,048
1,087,708|£
(17,000)
(75,118)
(92,419)
(104,521)
(39,550)
(203,362)
(531,970)
-
(509,692)
(509,692)
(1,041,662)
Expenditure|£
**£**
-
**-**
(42,695)
**7,187**
-
**(24,561)**
-
**54,052**
-
**-**
-
**153**
(42,695)
**36,831**
67,970
**67,970**
(25,275)
**112,082**
42,695
**180,052**
-
**216,883**
Transfers
between
funds
**At 31**
**March 2021**|£
**£**
-
**-**
(42,695)
**7,187**
-
**(24,561)**
-
**54,052**
-
**-**
-
**153**
(42,695)
**36,831**
67,970
**67,970**
(25,275)
**112,082**
42,695
**180,052**
-
**216,883**
Transfers
between
funds
**At 31**
**March 2021**|
|---|---|---|---|---|---|
||||||**36,831**|
||||||**67,970**|
||||||**112,082**|
||||||**180,052**|
||||||**216,883**|
## **Purposes of restricted funds**
## **British Film Institute - Film Academy**
The annual BFI Film Academy provides an opportunity for young people aged 16-19 to access high quality film production training through a series of masterclasses and practical workshops and to gain an NCFE qualification.
## **Cultural Recovery Fund - CRF1**
The CRF1 fund was managed by Arts Council England of behalf of the Government Department for Digital, Culture, Media and Sport. The funding enabled the charity to protect its creative programme by undertaking an agile, iterative restructure centered on technology, and to further develop, refine and consolidate outreach, engagement and remote production practices begun in lockdown.
## **Herefordshire is a Great Place**
‘Herefordshire’s a Great Place’ is a cultural development project, co-funded by Arts Council England and National Lottery Heritage Fund and supported by Historic England. The project empowers communities to redefine what makes Herefordshire a great place, while championing and strengthening the vital role culture and heritage plays in a rural county’s social and economic future. The Herefordshire is a Great Place fund was £24,561 in deficit at the year-end (2020: deficit £9,121) however the charity has a total of £29,928 in confirmed future funding from National Lottery Heritage Fund, which it was not yet entitled to recognise at year end.
29
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
## **20. Movements in funds (continued) Purposes of restricted funds (continued) TT Connect**
A 15 month project funded by The National Lottery Community fund to continue the work of Travellers’ Times and to conduct action based research into the development of a four year project to transition Travellers Times into an independent community led entity.
## **TT Connect Covid-19 Activity**
In response to the Covid emergency National Lottery Community Fund funding was provided to enable the charity to provide additional support to its beneficiaries in the form of positive news, features and information about health, wellbeing-education and employment that were of particular relevance to members of Gypsy, Roma and Traveller communities.
## **New Creatives**
Arts Council England funded talent development scheme offering commissioning opportunities and training for emerging creatives, aged 16-30 based in the Midlands, to make new artistic works in film, audio or interactive media, designed for BBC channels and platforms.
## **Purposes of designated funds**
## **Fixed assets fund**
This fund represents the net book value of fixed assets.
## **Transfer between funds**
The transfer between funds represents the movement of the net book value of the assets purchased using the restricted cultural recovery fund income. There are no restrictions on the ongoing use of these assets so a transfer has been made between restricted funds and unrestricted reserves to reflect this.
30
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
## **20. Movements in funds (continued) Prior year comparative**
|**Restricted funds**
British Film Institute - Film Academy
Carnegie UK Trust
Herefordshire is a Great Place
New Creatives
The Elmley Foundation
Capital asset funds
**Total restricted funds**
General funds
**Total unrestricted funds**
**Total funds**
**Unrestricted funds**
National Lottery Heritage Fund - Big
Wig
National Lottery Community Fund -
It's Kushti to Rokker
National Lottery Community Fund -
Travellers' Times 2017-20
National Lottery Community Fund -
TT Connect|At 1 April
2019
£
-
-
(33,481)
-
-
25,650
-
1,714
-
(6,117)
26,778
20,661
74,556
74,556
95,217|Income
£
17,000
3,000
432,736
61,150
44,493
118,695
100,894
264,000
6,000
1,047,968
-
1,047,968
437,916
437,916
1,485,884|£
(17,000)
(3,000)
(419,473)
(61,150)
(44,493)
(144,345)
(9,452)
(260,199)
(6,000)
(965,112)
(26,778)
(991,890)
(418,374)
(418,374)
(1,410,264)
Expenditure|£
-
-
11,097
-
-
-
-
-
-
11,097
-
11,097
(11,097)
(11,097)
-
Transfers
between
funds|At 31
March
2020
£
-
-
(9,121)
-
-
-
91,442
5,515
-|
|---|---|---|---|---|---|
||||||87,836
-|
||||||87,836|
||||||83,001|
||||||83,001|
||||||170,837|
## **21. Operating lease commitments**
The group and charity had operating leases at the year end with total future minimum lease payments as follows:
|follows:|||
|---|---|---|
||**The group and the charity**||
||**2021**|2020|
||**£**|£|
|Amount falling due:|||
|Within 1 year|**30,271**|29,520|
|Within 1 - 5 years|**3,557**|33,828|
||**33,828**|63,348|
31
## **Rural Media Charity**
## **Notes to the financial statements**
## **For the year ended 31 March 2021**
## **22. Related party transactions**
Rural Media Productions Limited is a wholly owned subsidiary of Rural Media Charity. During the year the company paid the following amounts to the charity:
|the company paid the following amounts to the charity:|||
|---|---|---|
|Contribution to production costs, overheads and wages
Gift aid donation to parent|**2021**
**£**
**27,342**
**39,882**
**67,224**|2020
£
20,000
22,730|
|||42,730|
At 31 March 2021 the subsidiary company owed the parent charity £48,393 (2020: £7,708).
There were no other related party transactions during the year.
M Hayes, a trustee, is a partner in the firm Harrison Clark Rickerbys ("the firm"). During the year Rural Media Charity paid the firm £Nil (2020: £1,410) for legal advice. The transactions were carried out at arms length.
32