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2022-03-31-accounts

Company no. 02732325 Charity no. 1041335

Rural Media Charity Report and Audited Financial Statements 31 March 2022

Rural Media Charity

Reference and administrative details

For the year ended 31 March 2022 For the year ended 31 March 2022
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 (resigned 22 October 2021)
John Bateman
Jane Daggers (appointed 10 August 2021)
Joanna Davidson
Anne Dawson (appointed 10 August 2021)
Beverley Gibbs (appointed 10 August 2021)
Matthew Hayes
Martin Hitchin
David Holdsworth
Elonka Soros (resigned 4 May 2021)
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
Julie Colman, Head of Production
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 2022

The trustees present their report and financial statements for the year ended 31 March 2022.

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 Charity 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. See for example our work with Gypsy, Roma, and Travellers: ruralmedia.co.uk/projects/travellers-times.

2. Develop media skills & talent

New talent and diverse voices are at the heart of everything we do. Recent years have seen our talent development work increasingly take centre stage, whether working with school children through to giving new creative talent progression routes into the creative industries. This mirrors the launch of the Government’s Industrial Strategy Creative Industries Sector Deal 2018 with an emphasis on training and employment, the BFI’s five-year strategy with its emphasis on ‘Future Learning and Skills’, and a natural extension of our cultural work for ACE across the West Midlands. 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 Charity will continue its emphasis on place-based work with key stakeholders including Local Authority MLA services, 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 culture, 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, 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/projects/herefordshires-great-place.

2

Rural Media Charity

Report of the Trustees

For the year ended 31 March 2022

4. Raise awareness of rural issues & culture

Having worked closely with rural communities, service providers and policymakers for over 30 years Rural Media Charity is highly regarded and trusted for its knowledge and insight into rural culture. With 17% of England’s residents living in the countryside yet so much of rural life misunderstood and/or misrepresented, raising awareness of issues facing rural communities is a key priority for Rural Media Charity. Rural Media Charity plays an active role in ACE Rural Stakeholders’ Group and development of ACE 2020-30 Strategy, Let’s Create, 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 is increasingly recognised. Rural Media Charity contributes creatively and critically to this major policy discourse. See ruralmedia.co.uk/POV.

5. Support arts & cultural organisations

Arts & culture act as R&D for the creative industries, encouraging experimentation and in turn driving innovation and commercial activity. Meanwhile, creative industries are increasingly recognised as potential drivers of economic growth in rural areas. Rural Media Charity advocates powerfully for cultural organisations and creative businesses to be recognised strategically as contributors to the economic and social wellbeing of rural counties.

Our in-depth local knowledge and understanding of rural communities feed into our own creative programming along with our role in local, regional, and national economic and cultural policy development. To sustain and grow this work, we 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 Rural Media Charity’s leadership role with Herefordshire Cultural Partnership:

the-shire.co.uk/stories/new-report-looks-boost-herefordshires-creative-economy.

Public benefit

The trustees have referred to 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 and colleges, 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 creative digital industries. The charity’s education programme for young people includes the provision of nationally accredited courses, and its work with marginalised communities is internationally recognised. The charity publishes Travellers’ Times, a bi-annual print magazine and daily website travellerstimes.org.uk to support Gypsies and Travellers to tell their stories, educate people and advocate for their communities.

Achievements and performance

Despite the challenges of the Covid pandemic Rural Media Charity’s considerable outputs and outcomes were achieved throughout 2021-22 in no small way thanks to the financial and advisory support of Arts Council England (ACE), including investment from ACE’s Cultural Recovery Fund Rounds 1&2, The National Lottery Community Fund (TNLCF), and a range of local and national trusts and foundation.

3

Rural Media Charity

Report of the Trustees

For the year ended 31 March 2022

During 2021-22 Rural Media Charity worked with more than 2,000 people and with our inclusive outreach programme and project portfolio many were from diverse or disadvantaged backgrounds. During the COVID-19 pandemic, in the earlier part of the year, due to our digital expertise and in house staff skills, we were able to move our workshops, training, and production online to ensure effective service delivery. We produced high-quality media resource training, increasing the skills of young talent in the Midlands. We were grateful for continued core support from The Elmley Foundation which enables us to use film, media and digital art to strengthen communities and 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.

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 more than 20 million over the course of the year.

Project highlights were:

British Film Institute (BFI)

In the ninth year of BFI Film academy, Rural Media Charity trained 22 young people in filmmaking. Participants received a bespoke training schedule, notably producing practical workshops for handson experience. Delivered in hybrid format, the 2021-22 cohort devised, produced, and exhibited a suite of powerful short films all focused on topical themes including body image, mental health and drugs awareness. Participants also had the opportunity to gain an industry recognised NCFE qualification in Preparing to Work in The Film Industry. See ruralmedia.co.uk/bfi

Digital Culture Hub

Rural Media’s proposal to develop a Digital Culture Hub (DCH) was included in Hereford’s Stronger Towns Fund plan. The DCH will contribute to “levelling up” by creating a beacon of innovation and enterprise for Herefordshire and the rural West Midlands where creativity meets technology. It will aggregate in a single, fully accessible, contemporary space the creative technologies, tools, and expertise to inspire and raise the skill levels of creative and cultural entrepreneurs, SMEs, students, public, private and VCSE sectors in the county, enabling them to take advantage of the booming, post-Covid-19 digital economy. Rural Media Charity’s successful application for £1.2m will enable the charity to purchase its current base at Packers House and through loan finance refurbish and equip the new centre.

Rural Studios

We re-branded Rural Media Charity’s commercial trading arm as Rural Studios ruralstudios.co.uk From television and radio for national broadcasters to online social media films for charities and businesses Rural Studios sets out to change perspectives through film and audio and empower future talent through innovative storytelling and powerful visuals. Following the considerable success of work commissioned from Rural Studios by Booker Prize, BBC Arts commissioned Rural Studios to produce 4x60min. ‘performance readings’ of British iconic novels for broadcast on BBC Four in 202223.

4

Rural Media Charity

Report of the Trustees

For the year ended 31 March 2022

Herefordshire is a Great Place

Herefordshire is a Great Place was 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 programme was delivered by Rural Media Charity on behalf of Herefordshire Cultural Partnership (HCP). Legacy activity informed by Great Place during 2021-22 includes: Leominster’s High Street Heritage Action Zone; The Ford Collective delivered by 2Faced Dance; and HCP’s ongoing development of an ACE supported Cultural Compact. Herefordshire is a Great Place was subsequently selected by DCMS as an exemplary project which illustrated many of the advantages and good practice of place-based arts and cultural development. The Great Place evaluations can be found online at ruralmedia.co.uk/charity/projects/herefordshires-great-place and the-shire.co.uk.

New Creatives

New Creatives, an Arts Council England and BBC Arts supported talent development scheme, offered 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 2021-22 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 (EFF) through core funding, the P.O.V. programme has now reached 1,600 14-25 year-olds in Herefordshire, Shropshire and Worcestershire. Activity includes production of P.O.V. podcast series, launched March 2022; youth leadership course with Level 3 qualification; workshops on creative skills, activism and local campaigning. Support from Herefordshire Community Foundation enabled POV to continue its focussed participatory work with rural young people in the Teme Valley area of North Herefordshire. In-depth listening work has informed the development of several spin-off thematic projects (example themes: care experience; rural racial inequality; hyper-local place-based youth consultations). 2022-23 priorities include continuation strategy with EFF staff; developing skills and diversifying Boards through youth trustee programme; and piloting policy development/participatory democracy activity with rural local authorities. See pointofviewrural.com.

Travellers’ Times - TT Vision

Funded by the National Lottery Community Fund, TT Vision builds on work of the last 20 years as Travellers’ Times continues to improve lives through challenging negative media and amplifying Gypsy, Roma and Traveller voices. In 2021-22 we produced two full-page magazines and the website hosted over 150 co-produced news and feature articles and videos information on a huge range of subjects about the things that are important to Gypsy, Roma, and Traveller people. We worked specifically on films and reports for Macmillan Cancer Support and Worcestershire suicide prevention exploring barriers to engagement, recommending best practice and offering advice and support to the Gypsy, Roma and Traveller community.

Our main focus has been working with community members, consultants and stakeholders to develop a three-year paid training programme to transition Travellers’ Times into an independent community led entity through work based training and continuing professional development. The new cohort of 15 trainees joined us in September 2022. See travellerstimes.org.uk/tt-vision.

5

Rural Media Charity

Report of the Trustees

For the year ended 31 March 2022

Financial review

The consolidated financial statements for the year to 31 March 2022 are for Rural Media Charity and its wholly-owned trading subsidiary, Rural Studios 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 2022 total income was £1,033,990 (2021: £1,087,708) of which unrestricted income was £589,712 (2021: £564,048). The deficit on unrestricted funds was £16,575 (2021: £54,356 surplus). Rural Studios Ltd contributed £17,650 (2021: £39,882) to unrestricted funds. Rural Studios Ltd donates all its profits to Rural Media Charity under a deed of covenant.

At 31 March 2022, £2,676 was transferred from the unrestricted general fund to the designated fixed asset fund, representing the value of fixed asset additions in the year, leaving a balance of £118,213 (2021: £112,082) on the unrestricted general fund and a balance of £45,264 (2021: £67,970) on the designated fixed asset 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 2022 the trustees increased the reserves target such that unrestricted general funds, excluding designated funds, are required to provide at least 4 months’ cover of core costs (being establishment and staff expenditure not attributable to project activity). The unrestricted general funds are to be held in the form of cash at bank in a specially designated bank deposit account. At 31 March 2022 the charity's unrestricted general fund target was £110,000 (4 months’ core cost cover) and the actual unrestricted general fund was £118,213 (4.3 month’s cover), all of which was held on bank deposit account at the year-end (2021: unrestricted reserves target £80,000 (3 months’ cover), actual unrestricted reserves £112,082 (4.2 months’ cover)).

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:

To mitigate these risks the charity:

6

Rural Media Charity

Report of the Trustees

For the year ended 31 March 2022

Going concern

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 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 1 April 2022 Rural Media Charity entered into its fifth year as an organisation with National Portfolio Organisation (NPO) status with Arts Council England (ACE). In November 2022 ACE confirmed that Rural Media Charity would retain its NPO status for a further three years to 31 March 2026. 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 Studios 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 Studios 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 2022

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 Production, 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:

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 2022

In so far as the Trustees are aware:

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 16 November 2022 and signed on their behalf by

David Holdsworth

David Holdsworth - 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 2022 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:

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:

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:

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:

(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;

▪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: 18 November 2022

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

13

Rural Media Charity

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2022

Restricted
Note
£
£
Income from:
Donations
3
101,534
357,116
Charitable activities
4
342,314
231,466
Investments
-
122
Other income
430
1,008
Total income
444,278
589,712
Expenditure on:
Raising funds
-
53,495
Charitable activities
386,317
552,792
Total expenditure
6
386,317
606,287
Net income / (expenditure)
57,961
(16,575)
Transfers between funds
-
-
Net movement in funds
7
57,961
(16,575)
Reconciliation of funds:
Total funds brought forward
36,831
180,052
Total funds carried forward
94,792
163,477
Unrestricted		 2022
Total
£
458,650
573,780
122
1,438
1,033,990
53,495
939,109
992,604
41,386
-
41,386
216,883
258,269		 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

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 2022

Note
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
15
Cash at bank and in hand
Liabilities
16
Net current assets
Total assets less current liabilities
17
Net assets
19
Funds
20
Restricted funds
Unrestricted funds
Designated funds
General funds
Total charity funds
Creditors: amounts falling due after more
than 1 year
Creditors: amounts falling due within 1 year		 The group
2022
£
45,264
-
45,264
201,453
251,705
453,158
(219,115)
234,043
279,307
(21,038)
258,269
94,792
45,264
118,213
258,269		 The group The charity
2021
2022
£
£
67,970
45,264
-
2
67,970
45,266
96,922
96,019
164,417
214,789
261,339
310,808
(112,426)
(97,805)
148,913
213,003
216,883
258,269
-
-
216,883
258,269
36,831
94,792
67,970
45,264
112,082
118,213
216,883
258,269		 The charity
2021
£
67,970
2
67,972
95,079
137,475
232,554
(83,643)
148,911
216,883
-
216,883
36,831
67,970
112,082
216,883

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 16 November 2022 and signed on their behalf by

David Holdsworth

David Holdsworth - Chair

John Bateman - Trustee

15

Rural Media Charity

Consolidated statement of cash flows

For the year ended 31 March 2022

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
Cash flows from financing activities:
Cash inflows from new borrowings
Net cash provided used in financing 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
Analysis of changes in net debt
£
£
Cash
164,417
60,991
Loans falling due within 1 year
-
-
Loans falling due after 1 year
-
-
Total
164,417
60,991
Cash flows
At 1 April
2021		 2022
2021
£
£
41,386
46,046
25,382
17,234
(122)
(44)
(104,531)
168,282
101,430
(67,312)
-
(1,318)
63,545
162,888
122
44
(2,676)
(50,822)
(2,554)
(50,778)
26,297
-
26,297
-
87,288
112,110
164,417
52,307
251,705
164,417
£
£
26,297
251,705
(5,259)
(5,259)
(21,038)
(21,038)
-
225,408
At 31 March
2022
New loans		 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

16

Rural Media Charity

Notes to the financial statements

For the year ended 31 March 2022

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. At the year-end the group holds unrestricted general reserves of £118,213 and cash balances of £251,705. 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 beyond the COVID-19 pandemic ACE extended the NPO funding period by a year to 31 March 2023. In November 2022 ACE confirmed that Rural Media Charity would retain its NPO status with unrestricted NPO annual funding maintained at £251,036 for a further three years to 31 March 2026. 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 2022

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) Investment in subsidiary undertakings

The charitable company has one wholly owned subsidiary, Rural Studios Ltd, (registered company number 03751216). The subsidiary is used for non-primary purpose trading activities. The subsidiary undertaking is valued at cost less any cumulative impairment losses in the charitable company's accounts.

18

Rural Media Charity

Notes to the financial statements

For the year ended 31 March 2022

l) 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.

m) 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.

n) 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.

o) 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.

p) Pension costs

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.

q) Redundancy payments

Where an employee receives a termination benefit the full cost is recognised at the date the employee is notified.

r) 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 2022

2. Prior period comparatives: statement of financial activities

Income from:
Donations
Charitable activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
3.
Income from donations
Donations
Individual donations
Grants
Arts Council England
Cultural Recovery Fund
Elmley
Esmee Fairbairn Foundation
Herefordshire Community Foundation
Herefordshire Council
Lankelly Chase
Open Arms Kington CIC
Total income from donations
Net income / (expenditure) and net movement in
funds		 Restricted
£
£
125,000
317,316
398,660
246,688
-
44
523,660
564,048
-
52,351
531,970
457,341
531,970
509,692
(8,310)
54,356
Restricted
£
£
100
-
-
251,036
62,000
-
12,000
-
-
66,280
20,200
-
7,234
-
-
32,000
-
7,800
101,534
357,116
Unrestricted
Unrestricted		 2021
Total
£
442,316
645,348
44
1,087,708
52,351
989,311
1,041,662
46,046
2022
Total
£
100
251,036
62,000
12,000
66,280
20,200
7,234
32,000
7,800
458,650

20

Rural Media Charity

Notes to the financial statements

For the year ended 31 March 2022

3.
Income from donations (continued)
Prior period comparative:
Grants
Arts Council England
Cultural Recovery Fund
Esmee Fairbairn Foundation
Total income from donations
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
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
The British Film Institute
Herefordshire Council
Other <£5k
Earned income
Total income from charitable activities		 Restricted
£
£
-
251,036
125,000
-
-
66,280
125,000
317,316
Restricted
£
£
29,927
-
55,000
-
240,387
-
17,000
-
-
231,466
342,314
231,466
Restricted
£
£
62,979
-
198,000
-
106,681
-
17,000
-
13,000
-
1,000
-
-
246,688
398,660
246,688
Unrestricted
Unrestricted
Unrestricted		 2021
Total
£
251,036
125,000
66,280
442,316
2022
Total
£
29,927
55,000
240,387
17,000
231,466
573,780
2021
Total
£
62,979
198,000
106,681
17,000
13,000
1,000
246,688
645,348

21

Rural Media Charity

Notes to the financial statements

For the year ended 31 March 2022

5. Government grants

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		 £
53,495
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
53,495
-
53,495
Raising
funds		 £
£
509,521
13,693
3,234
-
267,314
-
1,278
-
3,504
-
1,350
-
31,621
-
10,112
280
7,224
-
4,734
-
2,251
-
18,411
-
23,953
-
5,473
-
613
-
25,382
-
91
9,070
916,066
23,043
23,043
(23,043)
939,109
-
Support and
governance
costs
Charitable
activities		 2022
Total
£
576,709
3,234
267,314
1,278
3,504
1,350
31,621
10,392
7,224
4,734
2,251
18,411
23,953
5,473
613
25,382
9,161
992,604
-
992,604

Total governance costs were £9,350 (2021: £8,028).

22

Rural Media Charity

Notes to the financial statements

For the year ended 31 March 2022

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		 £
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
-
Charitable
activities
Support and
governance
costs		 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

23

Rural Media Charity

Notes to the financial statements

For the year ended 31 March 2022

7. Net movement in funds

This is stated after charging:

Depreciation
Operating lease payments
Trustees' remuneration
Trustees' reimbursed expenses*
Auditors' remuneration:
▪Statutory audit (including VAT)
▪Other services		 2022
£
25,382
19,600
Nil
26
8,110
1,560		 2021
£
17,234
30,370
Nil
Nil
7,710
600

*One trustee was reimbursed £26 for travel expenses during the year (2021: £Nil)

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
Other (<£5k)
Grants payable to no individuals (2021: 11)
Grant commitments
Grant commitments brought forward
Grants committed during the period
Grants paid during the period
Grant commitments carried forward		 2022
£
-
1,350
-
-
-
-
-
-
-
-
1,350
2022
£
-
1,350
(1,350)
-		 2021
£
3,000
3,000
2,800
2,000
2,000
2,000
2,000
2,000
4,916
3,139
26,855
2021
£
20,400
26,855
(47,255)
-

9. Grant commitments

24

Rural Media Charity

Notes to the financial statements

For the year ended 31 March 2022

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		 2022
£
513,647
49,655
12,319
1,088
576,709		 2021
£
537,652
50,724
17,797
-
606,173

One employee earned between £60,000 and £70,000 during the year (2021: Nil).

Redundancy costs comprise statutory redundancy payments made to one member of staff following a change in Rural Media's marketing strategy.

The key management personnel of the charitable company comprise the Trustees, the Chief Executive Officer, the Creative Director & Deputy CEO, the Head of Development, Head of Production and the Finance & Operations Director. The total employee benefits of the key management personnel were £259,859 (2021: £238,720).

Average number of employees (headcount)
Average number of employees (full-time equivalent)		 2022
No.
14.7
13.4		 2021
No.
17.4
15.0

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 2022

12.
Tangible fixed assets
The charity and group
Cost
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Motor
vehicles
£
27,270
-
27,270
27,270
-
27,270
-
-		 £
£
197,286
5,215
2,676
-
199,962
5,215
131,527
3,004
24,162
1,220
155,689
4,224
44,273
991
65,759
2,211
Fixtures and
fittings
Technical
equipment		 Total
£
229,771
2,676
232,447
161,801
25,382
187,183
45,264
67,970

13. Investments

Rural Studios Ltd

The charitable company owns the whole of the issued share capital (2 ordinary £1 shares) of Rural Studios Ltd (formerly Rural Media Productions Ltd), a company registered in England and Wales. The subsidiary is used for non-primary 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		 2022
£
184,268
(134,008)
50,260
(32,610)
17,650		 2021
£
191,090
(120,621)
70,469
(30,587)
39,882

26

Rural Media Charity

Notes to the financial statements

For the year ended 31 March 2022

13. Investments (continued)

The aggregate of the assets, liabilities and funds was:

Assets
Liabilities
Funds		 2022
2021
£
£
160,099
77,177
(160,097)
(77,175)
2
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		 2022
£
881,472
41,386		 2021
£
963,842
46,046

15. Debtors

Trade debtors
Accrued income
Rural Studios Ltd
Prepayments
Other debtors		 2022
2021
£
£
178,816
6,204
5,100
67,171
-
-
17,082
20,943
455
2,604
201,453
96,922
The group		 2022
2021
£
£
60,000
-
5,100
23,139
17,749
48,393
12,715
20,943
455
2,604
96,019
95,079
The charity

16. Creditors : amounts due within 1 year

Trade creditors
Other taxation and social security
VAT
Accruals
Deferred income (see note 18)
Other creditors
Loans		 2022
2021
£
£
35,535
42,103
12,363
14,219
31,290
7,072
30,242
37,773
104,125
8,200
301
3,059
5,259
-
219,115
112,426
The group		 2022
2021
£
£
16,449
35,352
12,363
14,219
-
-
28,192
31,013
40,500
-
301
3,059
-
-
97,805
83,643
The charity		 2022
2021
£
£
16,449
35,352
12,363
14,219
-
-
28,192
31,013
40,500
-
301
3,059
-
-
97,805
83,643
The charity
83,643

27

Rural Media Charity

Notes to the financial statements

For the year ended 31 March 2022

17. Creditors : amounts due after 1 year

The group The charity
2022 2021 2022 2021
£ £ £ £
Loans 21,038 - - -

The group secured a Government backed Business Interruption Payment - Bounce Back Loan via Barclays Bank in a bid to secure future low interest loans should the organisation require additional cashflow. The loan was secured at 2.5% interest with no payments due within the first year of the loan.

18. Deferred income

At 1 April 2021
Deferred during the year
Released during the year
At 31 March 2022		 2022
2021
£
£
8,200
58,570
104,125
8,200
(8,200)
(58,570)
104,125
8,200
The group		 2022
2021
£
£
-
8,235
40,500
-
-
(8,235)
40,500
-
The charity		 2022
2021
£
£
-
8,235
40,500
-
-
(8,235)
40,500
-
The charity
-

Deferred income relates to income received in advance of delivery of services.

19. Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Non current liabilities
Net assets at 31 March 2022
Prior year comparative
Tangible fixed assets
Current assets
Current liabilities
Net assets at 31 March 2021		 £
-
94,792
-
-
94,792
£
-
56,145
(19,314)
36,831
Restricted
funds
Restricted
funds		 Designated
funds
£
45,264
-
-
-
45,264
Designated
funds
£
67,970
-
-
67,970		 General
funds
£
-
358,366
(219,115)
(21,038)
118,213
General
funds
£
-
205,194
(93,112)
112,082		 Total
funds
£
45,264
453,158
(219,115)
(21,038)
258,269
Total
funds
£
67,970
261,339
(112,426)
216,883

28

Rural Media Charity

Notes to the financial statements

For the year ended 31 March 2022

20. Movements in funds

Movements in funds
Restricted funds
British Film Institute - Film Academy
Cultural Recovery Fund - CRF1
Cultural Recovery Fund - CRF2
Digital Culture Hub
Elmley Foundation
Herefordshire is a Great Place
New Creatives
POV - Teme Valley
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 Vision
Unrestricted funds		 At 1 April
2021
£
-
7,187
-
-
-
(24,561)
54,052
-
153
-
36,831
67,970
112,082
180,052
216,883		 Income
£
17,430
-
62,000
7,234
12,000
29,927
-
240,487
55,000
20,200
444,278
-
589,712
589,712
1,033,990		 £
(17,430)
(4,595)
(62,000)
(7,234)
(12,000)
(5,366)
(54,052)
(154,897)
(55,153)
(13,590)
(386,317)
(25,382)
(580,905)
(606,287)
(992,604)
Expenditure		 £
£
-
-
-
2,592
-
-
-
-
-
-
-
-
-
-
-
85,590
-
-
-
6,610
-
94,792
2,676
45,264
(2,676)
118,213
-
163,477
-
258,269
Transfers
between
funds
At 31
March 2022
94,792
45,264
118,213
163,477
258,269

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.

Cultural Recovery Fund - CRF2

The CRF2 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 invest further in its project development capacity but also to facilitate more strategic, targeted development and core funding.

29

Rural Media Charity

Notes to the financial statements

For the year ended 31 March 2022

20. Movements in funds (continued) Purposes of restricted funds (continued)

Digital Culture Hub

In June 2021 Hereford Stronger Towns Partnership secured £22.4 million of Town Deal Funding from the Department for Levelling up, Housing and Communities (DLUHC) to deliver six capital projects which is anticipated will support the economic recovery and growth of Hereford. To support the development of the full business cases of these projects DLUHC has made available 5% of the total funding as Early Funding. Rural Media Charity has been allocated £55,000 of Early Funding to be used in the development of the full business case for a capital project that is expected to commence in 2022-23. At 31 March 2022 Rural Media Charity had received and applied £7,234 of Early Funding from Herefordshire Council, the accountable body for the Early Funding.

Elmley Foundation

Core funding in support of a Development Producer post for three years to 2023-24.

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.

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 Vision

A four year training and career development project funded by National Lottery Community Fund to empower the upcoming generation of Gypsy, Roma and Travellers to take on the running and development of Travellers’ Times as a sustainable 100% community-led project.

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.

POV - Teme Valley

Funded by Herefordshire Community Foundation Teme Valley Fund the project focusses on 14-18 year olds living in the Teme Valley region. The project aims are to collect impactful testimony of rural young people’s lived experience and points of view and to amplify these through the production of creative content exploring these issues; to support young people to access new opportunities such as creative, cultural, social, educational, training or career opportunities; and to empower young people to independently create quality digital creative content that raises awareness of issues and themes that are important to rural young people.

Purposes of designated funds

Fixed assets fund

This fund represents the net book value of fixed assets.

30

Rural Media Charity

Notes to the financial statements

For the year ended 31 March 2022

20. Movements in funds (continued) Prior year comparative

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
Unrestricted funds
National Lottery Community Fund -
TT Connect
National Lottery Community Fund -
TT Connect Covid-19 Activity		 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)
-
-
-
-
(42,695)
67,970
(25,275)
42,695
-
Transfers
between
funds		 At 31
March
2021
£
-
7,187
(24,561)
54,052
-
153
36,831
67,970
112,082
180,052
216,883

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
2022 2021
£ £
Amount falling due:
Within 1 year - 30,271
Within 1 - 5 years - 3,557
- 33,828

31

Rural Media Charity

Notes to the financial statements

For the year ended 31 March 2022

22. Related party transactions

Rural Studios Ltd is a wholly owned subsidiary of Rural Media Charity. During the year the company paid the following amounts to the charity:

the following amounts to the charity:
Contribution to production costs, overheads and wages
Gift aid donation to parent		 2022
£
14,100
17,650
31,750		 2021
£
27,342
39,882
67,224

At 31 March 2022 the subsidiary company owed the parent charity £17,749 (2021: £48,393).

Nic Millington, Chief Executive Officer of Rural Media Charity, is a director of Herefordshire Cultural Partnership. During the year, Rural Media Charity invoiced Herefordshire Cultural Partnership £20,000 for consultancy and research work. At 31 March 2022, £20,000 was outstanding and included in the charity's trade debtors.

There were no other related party transactions during the year.

32

Rob Wilson Godfrey Wilson Limited Chartered Accountants & Statutory Auditors 5[th] Floor Mariner House 62 Prince Street Bristol BS1 4QD

16 November 2022

Dear Rob

Letter of Representations on the Financial Statements for the Year Ended 31 March 2022

This representation letter is provided in connection with your audit of the financial statements of the charity for the year ended 31 March 2022.

We confirm that the following representations are made on the basis of enquiries of the trustees, management and staff with relevant knowledge and experience (and, where appropriate, of inspection of supporting documentation) sufficient to satisfy ourselves that we can properly make each of the following representations to you:

  1. We have fulfilled our responsibilities as trustees, as set out in the terms of your engagement letter dated 3 June 2020, under the Companies Act 2006 for preparing 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).

We confirm that in our opinion the financial statements give a true and fair view and in particular that where any additional information must be disclosed in order to give a true and fair view that information has in fact been disclosed. We confirm that the selection and application of the accounting policies used in the preparation of the financial statements are appropriate, and we approve these accounts for the year ended 31 March 2022.

  1. We confirm that all accounting records have been made available to you for the purpose of your audit, in accordance with your terms of engagement, and that all the transactions undertaken by the charity have been properly reflected and recorded in the accounting records. All other records and related information, including minutes of all management, trustees’ and members’ meetings, have been made available to you. We have given you unrestricted access to persons within the charity in order to obtain audit evidence and have provided any additional information that you have requested for the purposes of your audit.

  2. We acknowledge that it is a criminal offence to make a false statement in this regard, and where any director either makes a false statement; is aware that the statement is false; is reckless in preventing this statement; or fails to take reasonable steps to prevent the trustees’ report from being approved, we acknowledge that each director will be guilty of a criminal offence.

  3. We confirm the charity has satisfactory title to all assets and there are no liens or encumbrances on the assets, except for those disclosed in the financial statements.

  4. We confirm that significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. We confirm that we have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements.

  5. We confirm that the charity has no liabilities or contingent liabilities other than those disclosed in the financial statements.

  6. We confirm that all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements have been disclosed to you and accounted for and disclosed in accordance with the applicable financial reporting framework.

  7. We confirm that there have been no events since the balance sheet date which require disclosing or which would materially affect the amounts in the financial statements, other than those already disclosed or included in the financial statements.

  8. We confirm that we are aware that a related party of the charity is a person or organisation which either (directly or indirectly) controls, has joint control of, or significantly influences the charity or vice versa and as a result will include: trustees/directors, other key management, close family and other business interests of the previous. We confirm that the related party relationships and transactions set out in appendix 1 are a complete list of such relationships and transactions and that we are not aware of any further related parties or transactions.

  9. We confirm that the charity neither had, at any time during the year, any arrangement, transaction or agreement to provide credit facilities (including advances and credits granted by the charity) for trustees, nor provided guarantees of any kind on behalf of the trustees.

  10. We confirm that the charity has not contracted for any capital expenditure other than as disclosed in the financial statements.

  11. We confirm that the charity has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non-compliance.

  12. We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal framework within which the charity conducts its activities and which are central to the charity’s ability to conduct its activities, except as explained to you and as disclosed in the financial statements.

  13. We acknowledge our responsibility for the design, implementation and maintenance of internal controls to prevent and detect fraud. We confirm that we have disclosed to you the results of our risk assessment of the risk of fraud in the organisation. There have been no deficiencies in internal control of which we are aware.

  14. We confirm that there have been no actual or suspected instances of fraud involving trustees, management or employees who have a significant role in internal control or that could have a material effect on the financial statements. We also confirm that we are not aware of any allegations of fraud by trustees, former trustees, employees, former employees, regulators or others.

  15. We confirm that, in our opinion, the charity’s financial statements should be prepared on the going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charity’s needs. In reaching this conclusion, we have taken into account all relevant matters of which we are aware, and have considered a period of at least one year from the date on which the financial statements will be approved.

  16. We confirm that in our opinion the effects of uncorrected misstatements are immaterial, both individually and in aggregate, to the financial statements as a whole. A list of the uncorrected misstatements is set out in the management letter.

  17. We confirm that we are not aware of any matters of material significance that should be reported to regulators. We confirm that all correspondence with the Charity Commission has been made available to you.

  18. We confirm that all grants, donations and other income, including those subject to special terms or conditions or received for restricted purposes, have been notified to you. There have been no breaches of terms or conditions during the period regarding the application of such income.

  19. We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that: (a) so far as each trustee is aware, there is no relevant audit information of which you as auditors are unaware; and (b) each trustee has taken all the steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that you are aware of that information.

  20. We acknowledge that it is a criminal offence to knowingly or recklessly make you as an auditor, a statement (oral or written) that conveys, or purports to convey, information or explanations that you require in your capacity as auditor, or are entitled to require, that is misleading, false or deceptive in a material particular.

Yours sincerely

David Holdsworth

David Holdsworth – Chair

For and on behalf of the trustees of Rural Media Charity

Appendix 1: Summary of Related Parties

Connected Organisation Name Nature of Connection Rural Media Productions Limited n/a Wholly owned trading subsidiary Harrison Clark Rickerbys M Hayes Trustee of the charity is a partner in the firm. The firm provides legal advice to the charity.