**Company Registration Number 3006904 Registered Charity Number 1049698**
**HEADWAY ARTS** (A COMPANY LIMITED BY GUARANTEE)
# **REPORT AND ACCOUNTS For the year ending 31 March 2022**
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT** _**For the year ended 31 March 2022**_
The Trustees, who are also Directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 March 2022.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Registered charity name** Headway Arts **Charity registration number** 1049698 **Company registration number** 3006904 **Registered office** Headway ArtSpace, The Old Church, Waterloo Road, Blyth, Northumberland NE24 1BY
## **Trustees**
For the purposes of the Companies Act 2006, the Board of Trustees is the Board of Directors of the charitable company and is referred to as the Trustees throughout this report.
The Trustees of Headway Arts during the period and to the date of signing this report are as follows:
Mr S Bradley Mr P D James Ms L Neslund Ms K Wilcox **Company Secretary** Mrs F M Castle **Bankers** Barclays Bank plc, 3 Northumberland Square, North Shields, NE30 1QX **Independent Examiner** Mr P O’Hara FCA, Chartered Accountant, 4 Stoneyhurst Road West, Gosforth, Newcastle upon Tyne NE3 1PG
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing Documents**
Headway Arts is a charitable company limited by guarantee, incorporated as Headstrong Productions on 6 January 1995 and registered as a charity on 9 October 1995.
It was established under the Memorandum of Association that established its objects and powers and is governed under its Articles of Association, as amended by special resolutions dated 30 June 2000 and 21 November 2005.
The company changed its name from Headstrong Productions to Headway Arts by means of a special resolution passed on 18 November 2015.
The Directors of the company are also Trustees of the charity.
2
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT**
_**For the year ended 31 March 2022**_
## **STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)**
## **Governing Documents (Cont.)**
Eligibility for membership of the charity, and membership of the Board of Trustees, is governed by the Memorandum and Articles of Association. There are no restrictions in the governing document on the operation of the charity other than those imposed by general charity law.
## **Charitable Purpose**
Headway Arts’ charitable objectives are ‘to advance education for the public benefit through the promotion of the arts with particular but not exclusive reference to the dramatic arts’.
## **Principal Activity, Aims and Objectives**
In delivering our charitable purpose we strive to offer high quality arts and cultural participation opportunities to communities in Northumberland and beyond.
Our aims are to:
- Produce high quality art
- Create environments where art can take place
- Provide lifelong learning, training and employment opportunities
- Offer platforms for expression & the exploration of creativity
- Proactively encourage the engagement and representation of excluded groups
- Offer a means to contribute to the cultural life of communities
- Initiate informed debate and influence policy-making
Our values are that:
- Everyone is equal and everyone is different
- Participation in the arts enables personal development and social inclusion
- Participation in the arts is an entitlement for everyone
- Creative contribution is of high value irrespective of the circumstance or background of the person
- All participants have the right to make choices and determine their own creative engagement
## **Structure and Governance**
The charity currently has a board of 4 non-executive Trustees.
The Board meets a minimum of four times per year and conducts an Annual General Meeting, typically in November.
Detailed written Board reports and an agenda are prepared by the Chief Executive and circulated in advance of meetings.
3
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT** _**For the year ended 31 March 2022**_
## **STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)**
## **Recruitment and Appointment of Board of Trustees**
Trustees are elected to the Board as necessary, with regard to any specialist skills required on the Board, based on discussions and recommendations offered by Trustees and outside advisors to the organisation. Trustees are re-appointed annually.
## **Trustee Induction and Training**
New Trustees are briefed on their legal obligations under company and charity law, our Memorandum and Articles of Association, the operation of the Board and its decision-making processes, future plans and recent performance to support their understanding of Headway Arts’ activities.
They are encouraged to attend appropriate training, are made aware of Charity Commission publications and online guidance and are encouraged to provide feedback.
## **Policies on Reserves**
The Trustees have reviewed the charity's needs for reserves in line with the guidance issued by the Charity Commission.
The Trustees aim to hold a level of Unrestricted Reserves sufficient to meet the costs of essential salaries and overheads for a 3 to 4 month period which would allow for the orderly winding down of the operation in the unlikely event that the Trustees so decided.
At present, the Trustees estimate that the Unrestricted Reserves required for such purposes would be in the range of £40,000 to £50,000.
Headway Arts’ current Unrestricted Reserves are £57,766 at 31 March 2022. Free Reserves, defined as Unrestricted Reserves minus the value of Unrestricted Tangible Fixed Assets, are £48,896.
The Trustees believe that, now that this level has been reached, reserves should be maintained at least at this level to ensure the charity can run efficiently and meet the needs of the beneficiaries.
This policy will be reviewed by the Trustees on an annual basis as part of the charity’s budgeting processes.
## **The Charity's grant making policies**
The charity does not currently engage in grant-making activity.
## **The contribution of volunteers**
The charity makes extensive use of volunteers within its productions and to support its activities.
4
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT** _**For the year ended 31 March 2022**_
## **OBJECTIVES AND ACTIVITIES**
## **Public Benefit**
The Trustees understand and have discussed the implications of the provisions of the Charities Act 2006, which state that all charities must demonstrate that they are established for public benefit and have had due regard to the public benefit guidance issued by the Charity Commission. The Trustees believe that the charity meets both of the key principles.
Principle 1 - There must be an identifiable benefit, or benefits
Headway Arts’ activities include a core commitment to the promotion of the arts, enabling the personal development of those in our care and providing a benefit to the wider community.
Principle 2 - Benefit must be to the public, or a section of the public.
Engagement in Headway Arts’ productions is open to people of all backgrounds who want to be part of the experience.
Headway Arts’ beneficiaries are therefore entirely appropriate to its aims and the public as a whole benefits from its work.
All of these benefits are clear, evidenced and relate directly to Headway Arts’ aims. In addition, the Trustees do not consider that any significant detriment or harm flows from Headway Arts’ work.
## **Risk Management**
The Trustees of the charity regularly review (at least annually) the major governance, operational and financial risks which the charity faces as part of its annual business planning process and confirm that systems have been established to mitigate these risks.
Headway Arts has a risk management strategy in place which comprises:
- an annual review of the strategic risks the charity may face via the business plan
- the establishment of systems and procedures to mitigate those risks identified
- the implementation of procedures designed to minimise any potential impact on the charity should those risks materialise.
These control systems have enabled Headway to return to a strong and stable financial position after experiencing some financial difficulties several years previously.
The Trustees have managed the potential impact of further financial risks by ensuring that:
- Prudent budgets have been set for the next financial year
- Regular management accounts are provided, showing the performance against budget
- Contingency plans are in place for the actions which would be taken if income appears unlikely to reach its target
The Trustees are satisfied that appropriate financial systems and controls and employment policies and practices are now in place.
5
**HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT** _**For the year ended 31 March 2022**_
## **ACHIEVEMENTS AND PERFORMANCE**
## **Summary of the main achievements of the charity during the year**
We began this year still in lockdown and still working remotely with all of our workshop sessions online. We decided at the onset to take a positive approach to lockdown and, looking back, we can see the opportunities it has given us: It has helped us fully integrate a digital approach into our service, enabled us to reach people who are least able to participate because they are housebound or limited by their health/disability, improved the digital inclusion of hard to reach groups and provided our Associate Artists with new challenges to present their way of working in a digital context.
Once again, we received confirmation from Northumberland care services that we maintained sufficient contact with our online workshops to retain our social care contracts for most of our regular attenders. Delayed payments could have caused major cash flow problems had we not manage to secure a good level of reserves in the previous year.
Overall, we have managed to maintain a good financial position this year through the funding we carried over (ie the funding that was for the delayed projects), but project funding opportunities, particular with the smaller trusts and foundations, have been fewer due to the emphasis placed on ensuring less fortunate organisations and services survive the pandemic. We have, however, managed to maintain the organisation and its programme with no financial loss this year and having funding in place for this year (from previous years) has given the organisation opportunity to focus on its development and prioritise tasks which it would not have been able to do under usual circumstances, particularly looking at its future programmes of work.
From May 2021 the STARS! creative arts sessions for learning disabled adults resumed in person, initially outdoors where gentle reintroduction sessions took place, moving to our redesigned storytelling garden funded by NHS Charities Together, before moving back indoors in July. Making the most of this outdoor work our Stars! artists created a short dance film in collaboration with The National Trust Seaton Delaval Hall using the Hall’s grounds as a backdrop. (https://vimeo.com/headwayarts). We also took part in the Seaton Delaval Hall open House event in October alongside 8 other regional companies, with three street theatre pieces inspired by the Hall.
Our Creative Café sessions have resumed as part of our continuing online service thanks to funding from the Northumberland Recovery College. As part of offering a combined service (in person and online) we have carried out significant renovations to the garden at Headway Artspace so it can be used for in person Creative Café sessions and other events in the future.
Our annual Come on Down festival this year was a hybrid event as so many learning-disabled people, being such a vulnerable group health wise, were still isolating. We had live streamed performances, recorded films and groups from across the county joined us for our “Power Sofa’ chats. To date there have been 3,208 viewings.
As with everything else, Covid also affected our ‘Hold Your Peace’ performances which had been devised prior to lockdown. When it became obvious that the performance, which centres around life in a hospital for people with learning disabilities during the First World War, was not going to be able to tour, we adapted it into a radio play/podcast which can be heard at https://vimeo.com/headwayarts Just as we got back into the swing of things after lockdown we were visited by Storm Arwen and lost our roof! The closure of half the building impacted greatly not only on our projects and events, but also on our sales and revenue. Luckily, we had good insurance or we wouldn’t be here now! At the end of the year we are still waiting for the roof to be fixed but happy to be getting on with our work as best as we can.
6
**HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT** _**For the year ended 31 March 2022**_
## **ACHIEVEMENTS AND PERFORMANCE (CONTINUED)**
## **Summary of the main achievements of the charity during the year (Cont.)**
In view of our pending bid to become an Arts Council England National Portfolio Organisation we joined together with other cultural organisations in the region to commission an audience development plan. We have been meeting to discuss what we want to find out about potential/future audiences, how we could share information about existing audiences and what information already exists in the county. The report includes valuable insights into current and potential audiences for the Arts, which will help us develop and grow.
In November 2022 we were overjoyed to receive funding from the National Lottery Reaching Communities strand for our 3-year disability project Reaching Out. The project really helps us further our mission bringing together disability groups from across Northumberland to address issues of isolation, mental health and resilience through the arts.
Through our continuing work with the Erasmus+ programme, learning disabled artists visited Lisbon to work with disabled performers from Sweden, Poland and Portugal and to prepare for a visit to Blyth later in the year. Next year will be a year of catch up as we push to complete all of our European projects by the end of 2023 when Erasmus+ closes. What will happen to our European partnerships after that time is unknown, but we will keep in touch online and take advantage of any opportunities that arise.
## **Financial Review**
The out-turn for the year is an unrestricted surplus of £7,656 (2021: Surplus £20,799).
The surplus will be added to Unrestricted Reserves, leaving a balance on Unrestricted Funds at 31 March 2022 of £57,766.
The Trustees consider the financial performance of the charity to be satisfactory and would wish to record their appreciation for the diligence and hard work of the staff, management and Board of Trustees during the year.
The Trustees acknowledge that careful financial management will be required on an ongoing basis and will continue to consider the charity’s viability and status as a going concern on a regular basis, undertaking only those projects which best fulfil our charitable objectives and utilise our specialist skills whilst also being economically sound. We continue to be aware of our obligations to all our stakeholders, including staff and creditors.
## **Principal Funding Sources**
Grants received in the year are listed in Note 4 to the accounts.
The charity is grateful to all such funders for their grant support during the year.
7
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT** _**For the year ended 31 March 2022**_
## **PLANS FOR FUTURE PERIODS**
The COVID-19 virus has affected all of us and we find ourselves in very different times. The pandemic has not been kind to learning disabled people in the arts sector and we face the very real possibility of losing the all ground we have made over the past 25 years, particularly in terms of inclusion. It is increasingly important we maintain the profile of learning disability arts and ensure access and inclusion are prioritised as we continue to come out of lockdown.
The pandemic brought the service we normally provide to a sharp focus demonstrating not only its valuable role in keeping disabled people creative and included in society, but its value in maintaining good mental health and wellbeing and in helping people to be safe, feel secure and find new routines. We will continue to provide and maintain this valued support and develop our new and exciting projects that look back at where we have been and ahead to where we might go. We are excited to have begun our Arts Council Funded “Beautiful Difference” project will look at people’s similarities, differences and our shared humanity.
Having placed ourselves as the National Centre of Arts and Inclusion we will continue to work regionally, nationally and internationally to find best inclusive practices, quality methodologies and inform national policy debates.
Blyth is undergoing a transformation and Headway Arts will be at the centre of this, ensuring that it meets its key aims over the next five years to build on its work and ensure it has the resources necessary to expand its work in line with both demand and current local and regional plans. We continue to develop the building, seeking funds to refurbish and develop ArtSpace as the contemporary, accessible and inclusive space it deserves to be.
As always, and at the core of everything, Headway Arts remains passionately committed to working with those in the community who are considered hardest to reach, particularly people who are learning disabled, have special needs or with enduring health issues.
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## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT**
_**For the year ended 31 March 2022**_
## **RESPONSIBILITIES OF THE TRUSTEES**
The Trustees (who are also the Directors of Headway Arts for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.
In preparing these 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 judgments and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Signed by order of the Trustees
## **Frances Castle Company Secretary Company Registration Number 3006904**
## **16 November 2022**
9
## **INDEPENDENT EXAMINER’S REPORT TO THE MEMBERS ON THE UNAUDITED ACCOUNTS OF HEADWAY ARTS YEAR ENDED 31 MARCH 2022**
I hereby report to the Trustees/Members of Headway Arts (Charity Registration Number 1049698) on the accounts for the year ended 31 March 2022 set out on pages 11 to 24.
## **Responsibilities and basis of report**
As the charity’s Trustees (and also its directors for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent Examiner’s Statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods or principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial reporting Standard applicable in the UK and Republic of Ireland (FRS102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **Pete O’Hara, FCA, Chartered Accountant Fellow of the Institute of Chartered Accountants in England & Wales**
4 Stoneyhurst Road West, Gosforth, Newcastle upon Tyne NE3 1PG
16 November 2022
10
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**Note**
**Income**
Income from Investments
2
Donations & Legacies
3
Income from Charitable Activities
4
**Total Income**
**Expenditure**
Expenditure on Charitable Activities
5
**Total Expenditure**
**Net Income/(Expenditure)**
Balance brought forward at 1 April
**Balance carried forward at 31**
**March**
**13**|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total 2022**
**Total 2021**
**£**
**£**
**£**
**£**
1
-
1
3
1,314
-
1,314
551
163,694
69,298
232,992
288,580|
|---|---|
||**165,009**
**69,298**
**234,307**
**289,134**
157,353
106,710
264,063
252,196|
||**157,353**
**106,710**
**264,063**
**252,196**|
||**7,656**
**(37,412)**
**(29,756)**
**36,938**
50,110
94,510
144,620
107,682|
||**£57,766**
**£57,098**
**£114,864**
**£144,620**|
The notes on pages 13 to 24 form part of the financial statements.
All of the activities of the company are classed as continuing.
The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.
11
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL POSITION/BALANCE SHEET** _**AS AT 31 MARCH 2022**_
|**Notes**
**Fixed Assets**
Tangible Fixed Assets
9
**Current Assets**
Debtors
10
Cash At Bank & In Hand
**Creditors – Amounts Falling Due Within 1 Year**
11
Net Current Assets/(Liabilities)
**Total Net Assets**
**12**
**Represented by:**
Unrestricted Reserves
13
Restricted Reserves
13|**2022**
**2021**
**£**
**£**
26,059
37,496
73,034
47,507
29,257
74,812|
|---|---|
||102,291
122,319
(13,486)
(15,195)|
||88,805
107,124|
||**£114,864**
**£144,620**|
||57,766
50,110
57,098
94,510|
||**£114,864 **
**£144,620**|
The notes on pages 13 to 24 form part of the financial statements.
The Trustees are satisfied that for the year ended 31 March 2022 the charity was entitled to exemption under section 477(2) of the Companies Act 2006.
The Trustees also confirm that the Members have not required the charity to obtain an audit in accordance with section 476 of the Companies Act 2006
The Trustees acknowledge their responsibilities for:
(i) ensuring that the charity keeps adequate accounting records which comply with section 386 of the Act, and
(ii) preparing financial statements which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of its profit or loss for the financial year in accordance with the requirements of section 393, and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to the charity.
## **These financial statements were approved and signed by a Member of the Board of Trustees on 16 November 2022.**
**L Neslund Trustee Company Registration Number 3006904**
12
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1. Accounting Policies**
## **Basis of Accounting**
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 – 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006 and the Statement of Recommended Practice (Charities SORP FRS 102) "Accounting and Reporting by Charities" and the Charities Act 2011.
The financial statements have been prepared on the historical cost basis, modified to include certain financial instruments at fair value.
Advantage has been taken of the provisions in the SORP for Charities applying FRS 102 Update Bulletin 1 not to prepare a statement of cashflows.
The financial statements are prepared in sterling, which is the functional currency of the charity.
## **Taxation Status**
Headway Arts is a Charity registered under the 1960 Charities Act and is accorded exemption from liability to taxation on its income under S505 Income and Corporation Taxes Act 1988.
## **Going Concern**
There are no material uncertainties about the charity's ability to continue.
## **Income**
All income is included in the statement of financial activities when the charity is entitled to the income, any performance related conditions attached have been met or are fully within the control of the charity, the income is considered probable and the amount can be quantified with reasonable accuracy.
The following specific policies are applied to particular categories of income:
- Donations and legacy income is received by way of donations, legacies, grants and gifts and is included in full in the Statement of Financial Activities when receivable. Where legacies have been notified to the charity but the criteria for income recognition have not been met, the legacy is treated as a contingent asset and disclosed if material.
- Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
- Investment income is included when receivable.
- Income from charitable trading activity is accounted for when earned.
- Other income is accounted for when receivable.
13
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1. Accounting Policies (Continued)**
## **Expenditure**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:
- Costs of raising funds comprise the costs associated with attracting donations, grants and legacies and the costs of trading for fundraising purposes.
- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
- Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
## **Tangible Fixed Assets and Depreciation**
Capital items costing over £250 are capitalised and included in fixed assets.
Depreciation is provided on any fixed assets at rates calculated to write off the assets over their remaining useful lives as follows:
- Furniture, Fittings & Equipment- 33.3% per annum on reducing balance
- IT Equipment - 33.3% straight line
- Leasehold Property Improvements – over the length of the lease (to 3 December 2024)
## **Impairment of Fixed Assets**
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
## **Financial Instruments**
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost where there is a material adjustment.
14
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1. Accounting Policies (Continued)**
## **Fund Accounting**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the purposes of the charity.
Designated funds are unrestricted funds earmarked by the Trustees for specific purposes.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor.
## **Judgements and Key Sources of Estimation Uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
There are no significant judgements or estimation uncertainty included within the financial statements.
## **Pensions**
Headway Arts contributes to a defined contribution pension scheme. Further details can be found in Note 8.
For the defined contribution scheme, the amount charged to the Statement of Financial Activities in respect of pension costs is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet.
## **2. Income from Investments**
|**ncome from Investments**||
|---|---|
|Bank Interest Receivable|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**2022**
**£**
**2021**
**£**
1
-
1
3|
||**£1**
**£-**
**£1**
**£3**|
The 2021 total of £3 related wholly to Unrestricted Funds.
## **3. Income from Donations & Legacies**
|Donations|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**2022**
**£**
**2021**
**£**
1,314
-
1,314
551|
|---|---|
||**£1,314**
**£-**
**£1,314**
**£551**|
The 2021 total of £551 related wholly to Unrestricted Funds.
15
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **4. Income from Charitable Activities**
|**ncome from Charitable Activities**||
|---|---|
|**Earned Income**
Project Fees
Other Earned Income
**Grant Income**
Arts Council England Cultural Recovery
Fund
Arts Council England Emergency Fund
Blyth Town Council
Coalfields Regeneration Trust
Coronavirus Job Retention Scheme
EDF Blyth Offshore Community Benefit
Fund at the Community Foundation of
Tyne & Wear and Northumberland
Edward Gostling Foundation
Erasmus+
Erasmus+ (Access & Aesthetic project)
Erasmus+ (REAL project)
European Social Fund (ESF)
ESF LA6 Community Grant (Moving
Mountains project)
ESF LA6 Community Grant (Releasing
Potential project)
ESF LA6 Community Grant
Good Things Foundation
Hadrian Trust
Healthwatch Northumberland
Mental Health Concern NHS Winter
Resilience Fund
National Lottery Covid19 Response Fund
National Lottery Heritage Fund
Northumberland County Council (NCC)
Starting Back Up Fund
NCC Arts, Culture and Heritage
NCC Community Chest
NCC COVID Support
NCC Heart of Blyth
Northumberland Citizens Advice
Percy Bilton Charity
Power to Change Community Business
Renewal Fund
Continued overleaf…|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**2022**
**£**
**2021**
**£**
76,962
-
76,962
45,623
738
-
738
-|
||**77,700**
**-**
**77,700**
**45,623**
30,041
-
30,041
60,250
-
-
-
30,129
10,000
-
10,000
10,000
-
-
-
1,895
-
-
-
4,448
8,232
-
8,232
10,763
-
-
-
2,900
-
10,759
10,759
-
-
-
-
16,133
-
-
-
7,165
-
2,438
2,438
-
-
5,373
5,373
-
-
19,295
19,295
7,228
-
-
-
16,616
-
1,000
1,000
-
-
1,000
1,000
-
-
1,000
1,000
-
-
5,000
5,000
-
-
-
-
23,847
-
-
-
4,500
8,000
-
8,000
-
9,721
-
9,721
9,721
-
4,755
4,755
4,943
-
-
-
10,000
-
-
-
830
-
5,798
5,798
-
-
-
-
470
20,000
-
20,000
-|
16
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **4. Income from Charitable Activities (Cont.)**
|Prime Fund at the Community Foundation
of Tyne & Wear and Northumberland
Riddell Family Community First Fund at
the Com. Foundation of T&W and N’land
Ridley Family Fund
Ryder Architecture
Screwfix Foundation
Wellesley Trust|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**2022**
**£**
**2021**
**£**
-
-
-
3,952
-
2,880
2,880
-
-
-
-
3,880
-
10,000
10,000
-
-
-
-
3,587
-
-
-
9,700
**85,994**
**69,298**
**155,292**
**242,957**
**£163,694**
**£69,298**
**£232,992**
**£288,580**|
|---|---|
Of the 2021 total of £288,580, £200,333 related to Unrestricted Funds and £88,247 to Restricted Funds.
## **5. Expenditure on Charitable Activities**
|**Expenditure on Charitable Activities**||
|---|---|
|**Project Delivery Costs**
Materials/Project Costs
Contract Workers
Wages & Salaries
**Support Costs**
Travel & Subsistence
Office Costs
Premises Costs & Room Hire
Repairs & Maintenance
Insurance
Depreciation
**Governance Costs**
Accountancy Fees
Legal & Professional Fees|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**2022**
**£**
**2021**
**£**
-
11,201
11,201
26,533
-
31,508
31,508
24,450
105,284
58,200
163,484
141,595|
||**105,284**
**100,909**
**206,193**
**192,578**
761
-
761
1,999
2,599
-
2,599
1,669
19,886
-
19,886
21,306
12,436
-
12,436
13,279
9,740
-
9,740
6,948
5,015
5,801
10,816
12,065|
||**50,437**
**5,801**
**56,238**
**57,266**
1,632
-
1,632
1,152
-
-
-
1,200|
||**1,632**
**-**
**1,632**
**2,352**|
||**£157,353**
**£106,710**
**£264,063 £252,196**|
Of the 2021 total of £252,196, £180,088 related to Unrestricted Funds and £72,108 to Restricted Funds.
17
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **6. Net Income/(Expenditure)**
|Net income/(expenditure) is stated after
charging/(crediting):
Independent Examiner’s Fees
Depreciation – Owned Assets
**Staff Costs/Trustees’ Remuneration**
Gross Salary Costs
Pension Costs
Social Security Costs
|**2022**
**£**
**2021**
**£**
1,152
1,152
10,816
12,065|
|---|---|
||**2022**
**£**
**2021**
**£**
150,406
129,445
3,235
3,135
9,843
9,015|
||**£163,484 £141,595**|
## **7. Staff Costs/Trustees’ Remuneration**
No employee received remuneration of more than £60,000 during the year (2021 - Nil).
The average number of staff employed during the year, calculated as full-time equivalents, was as follows:
|
was as follows:|||
|---|---|---|
||**2022**|**2021**|
||**No.**|**No.**|
|Artistic Production and Support|**5**|**5**|
No remuneration was paid to or waived by Trustees/Directors in the year (2021: Nil) and no travel and subsistence expenses (2021: None) were reimbursed to Trustees in respect of their attendance at meetings of the charity.
There were no transactions undertaken by, or on behalf of the charity, in which any Trustees or a connected person had a material interest during the year to 31 March 2022 (2021: Nil).
## **8. Pension Scheme**
Pension benefits are provided through a Group Personal Pension Scheme, which is a defined contribution scheme. The assets of the scheme are held separately from those of the company in a separately administered fund. In the year to 31 March 2022 Headway Arts made an employer's contribution of 3% of pensionable pay, provided that the employee makes a minimum contribution of 5%.
These amounts are paid over to the scheme on a monthly basis. Contributions totalling £875 were outstanding at 31 March 2022 (2021: £950).
18
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **9. Tangible Fixed Assets**
|**9.**
**Tangible Fixed Assets**|||
|---|---|---|
|**Leasehold**
**Property**
**Improvements**
**£**
**IT**
**Equipment**
**£**
**Fixtures,**
**Fittings &**
**Equipment**
**£**
**Total Fixed**
**Assets**
**£**
**Cost**
At 1 April 2021
57,120
14,362
50,106
121,588
Additions in year
-
-
-
-
Disposals
-
(5,627)
-
(5,627)
At 31 March 2022
57,120
8,735
50,106
115,961
**Accumulated Depreciation**
At 1 April 2021
33,914
9,024
41,154
84,092
Charge for year
5,802
2,358
2,656
10,816
Disposals
-
(5,006)
-
(5,006)
At 31 March 2022
39,716
6,376
43,810
89,902
**Net Book Value**
At 31 March 2022
**£17,404**
**£2,359**
**£6,296**
**£26,059**
At 1 April 2021
£23,206
£5,338
£8,952
£37,496
**10.**
**Debtors**
**2022**
**£**
**2021**
**£**
Trade Debtors
35,826
4,764
Accrued Income – Grant Funding
37,208
42,743
**£73,034**
**£47,507**|**Leasehold**
**Property**
**Improvements**
**£**
**IT**
**Equipment**
**£**
**Fixtures,**
**Fittings &**
**Equipment**
**£**
**Total Fixed**
**Assets**
**£**
57,120
14,362
50,106
121,588
-
-
-
-
-
(5,627)
-
(5,627)||
||57,120
8,735
33,914
9,024
5,802
2,358
-
(5,006)|50,106
115,961
41,154
84,092
2,656
10,816
-
(5,006)|
||39,716
6,376|43,810
89,902|
||**£17,404**
**£2,359**|**£6,296**
**£26,059**|
|||£8,952
£37,496
**2022**
**£**
**2021**
**£**
35,826
4,764
37,208
42,743|
|||**£73,034**
**£47,507**|
All sums are due within 1 year.
19
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **11. Creditors – Amounts Falling Due Within 1 Year**
|Taxes & Social Security Costs
Pension Scheme Creditor
Sundry Creditors
Accruals
**Analysis of Net Assets between Funds**
Fixed Assets
Debtors
Cash at Bank and In Hand
Creditors – Amounts Due Within 1 Year|
**Unrestricted**
**Funds**
**Restricted**
**Funds**
**£**
**£**
8,870
17,189
35,826
37,208
26,556
2,701
(13,486)
-|**2022**
**£**
**2021**
**£**
7,167
3,220
875
950
1,947
4,933
3,497
6,092|
|---|---|---|
|||**£13,486**
**£15,195**
**Total**
**2022**
**Total**
**2021**
**£**
**£**
26,059
37,496
73,034
47,507
29,257
74,812
(13,486)
(15,195)|
||**£57,766**
**£57,098**|**£114,864**
**£144,620**|
## **12. Analysis of Net Assets between Funds**
20
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE ACCOUNTS**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **13. Analysis of Charitable Funds**
|**Analysis of Charitable Funds**||
|---|---|
|**Unrestricted Funds**
Charity General Fund
**Restricted Funds**
Arts Council England
Erasmus+
Coastal Revival Fund*
Culture Bridge Fund at the Community
Foundation of Tyne & Wear and N’land
Curtin PARP Fund
Edward Gostling Foundation
Erasmus+ (Access & Aesthetic)
European Social Fund (Moving Mountains)
European Social Fund (Releasing Potential)
European Social Fund Capacity Building
Good Things Foundation
Hadrian Trust
Healthwatch N'land
Mental Health Concern NHS Winter
Resilience Fund
National Lottery Heritage Fund
Northumberland Council Community Chest
Northumberland Council Heart of Blyth
Northumberland Citizens Advice
Prime Fund
Riddell Family Community First Fund at the
Community Foundation of Tyne & Wear and
Northumberland
Ridley Family Fund
Ryder Architecture
Wellesley Trust (Building Improvements)*
Wellesley Trust (Young People project)
**Total Restricted Funds**
**Total Funds**|**Fund at 1**
**April**
**2021**
**£**
**Incoming**
**Resources**
**in Year**
**£**
**Resources**
**Expended**
**in Year**
**£**
**Fund at**
**31 March**
**2022**
**£**
**50,110**
**165,009**
**(157,353)**
**57,766**
29,724
-
(15,110)
14,614
-
10,759
(10,759)
-
19,917
-
(4,909)
15,008
1,500
-
(1,500)
-
2,880
-
(2,880)
-
2,900
-
(2,900)
-
10,866
-
(10,866)
-
-
5,373
(5,373)
-
-
19,295
(4,000)
15,295
-
2,438
(2,438)
-
-
1,000
(1,000)
-
-
1,000
(1,000)
-
-
1,000
(1,000)
-
-
5,000
(5,000)
-
4,500
-
(4,500)
-
-
4,755
(4,755)
-
830
-
(830)
-
-
5,798
(5,798)
-
4,740
-
(4,740)
-
-
2,880
(2,880)
-
3,880
-
(3,880)
-
-
10,000
-
10,000
3,073
-
(892)
2,181
9,700
-
(9,700)
-|
||**94,510**
**69,298**
**(106,710)**
**57,098**|
||**£144,620**
**£234,307**
**£(264,063)**
**£114,864**|
*Though £46,145 from Coastal Revival Fund and £9,549 from the Wellesley Trust was received and fully spent in the year to 31 March 2017 on the capital redevelopment of Headway ArtSpace, the required accounting treatment releases the grants over the period of the lease, matching the annual depreciation of the capital improvements.
21
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **13. Analysis of Charitable Funds (Cont.)**
## **Name of Restricted Fund**
## **Description, Nature & Purpose of the Restricted Fund**
Arts Council England
To fund the Talking Seeing Doing project
Coastal Revival Fund
To fund a programme of building improvements
Culture Bridge Fund at the Community Foundation of Tyne & Wear and Northumberland
To fund a school-based arts project
Curtin PARP Fund at the Community Foundation of Tyne & Wear and Northumberland
To fund Printable workshops
Edward Gostling Foundation
To fund STARS! circus workshops
Erasmus+ (A&A)
To fund the Access & Aesthetic European partnership
Erasmus+ (DW4DD) To fund the Different Ways For Different Days European partnership
European Social Fund (ESF) To fund capacity building European Social Fund (ESF) To fund the Moving Mountains project European Social Fund (ESF) To fund the Releasing Potential project Good Things Foundation To fund tablets for STARS! Hadrian Trust To fund Come On Down Healthwatch Northumberland To fund the hosting and facilitation of an End Of Life Care Research Group Mental Health Concern NHS Winter To fund the Creative Café project Resilience Fund National Lottery Heritage Fund To fund the Sill to Sea project
22
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS**
_**FOR THE YEAR ENDED 31 MARCH 2022**_
## **13. Analysis of Charitable Funds (Cont.)**
## **Name of Restricted Fund**
## **Description, Nature & Purpose of the Restricted Fund**
Northumberland County Council Community Chest
To fund a garden ramp and gate
Northumberland County Council - Heart of Blyth
To fund a creative consultation
Northumberland Citizens Advice
To fund Kickstart staff recruitment
Prime Fund at the Community Foundation of Tyne & Wear and Northumberland - Workshops
To fund STARS! circus skills workshops
Riddell Family Community First Fund at the Community Foundation of Tyne & Wear and Northumberland
To fund STARS! dance workshops
Ridley Family Charity
To fund the PrintAble project
Ryder Architecture
To fund the installation of staging
Wellesley Trust - Building Improvements
To fund a programme of building improvements
23
## **HEADWAY ARTS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **14. Taxation**
The company is a registered charity and no provision is considered necessary for taxation.
## **15. Financial and Capital Commitments**
No material financial and/or capital commitments have been made in respect of future financial periods (2021: None).
## **16.**
## **Legal Status**
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. The company law members of the charity are the members of its Board of Trustees.
The charity is incorporated under the Companies Act 1985 and is limited by guarantee, each member having undertaken to contribute such amounts not exceeding £1 as may be required in the event of the company being wound up whilst he or she is still a member or within one year thereafter.
24