2023-12-31-accounts

Company number: 3001139 Charity number: 1053930

FRIENDS OF THE TIVOLI

REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

FRIENDS OF THE TIVOLI

CONTENTS

	Page
Annual Report of the Trustees	1-7
Independent Auditors Report	8-10
Statement of Financial Activities	11
Balance Sheet	12
Statement of Cash Flows	13
Notes to the Accounts	14-23
Non-Statutory Information – For the Trustees only
Detailed Income and Expenditure Account	24
Consolidated Detailed Income and Expenditure Account	25

FRIENDS OF THE TIVOLI

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31[ST] DECEMBER 2023

The Trustees are pleased to present their report together with the financial statements of the charity for the year ending 31st December 2023.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity Number 1053930

	Company Number3001139 Principal Office19 -23 West Borough, Wimborne, Dorset, BH21 1LT.	Company Number3001139 Principal Office19 -23 West Borough, Wimborne, Dorset, BH21 1LT.	Company Number3001139 Principal Office19 -23 West Borough, Wimborne, Dorset, BH21 1LT.
	Principal Office
	Auditors	Francis Clark LLP	Towngate House, 2 – 8 Parkstone Road, Poole, Dorset BH15 2PW
	Bankers	Barclays Bank PLC
	Solicitors	Harold G Walker	30, West Borough, Wimborne Dorset, BH21 1NF

Directors and Trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout the report are collectively referred to as the trustees.

The Trustees who served during the year and since the year end were as follows:

Alan Breakwell (Chairman) Anita June Cole (re-appointed 30[th] October 2023) Robin Cook Andrew Watkins (co-opted 6[th] June 2023)

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Friends of the Tivoli is a company limited by guarantee governed by its Memorandum and Articles of Association dated 17[th] December 1994 and amended on the 6[th] October 1997, 28[th] September 2004 and the 30[th] October 2023. It is registered as a charity with the Charity Commission. The company has currently over 70 members who undertake to contribute such amount as may be required (not exceeding £10) to the company’s assets if it should be wound up, for payment of the company’s debts and liabilities.

Appointment of Trustees

As set out in the Articles of Association the trustees retire by rotation and are elected by the members attending the annual general meeting (AGM). Members may also nominate trustees for election at the AGM. Trustees can co-opt members during the year and seek confirmation at the AGM. When considering co-option regard is given to a balance of skills to ensure that the trustees have as wide a knowledge base as possible.

Trustee Induction and Training

Any new Trustee will undergo an induction where they will be briefed on their legal obligations under Charity and Company law, the Charity Commission guidance on public benefit, the content of the Memorandum and Articles of Association, previous Trustees’ minutes, the Way Ahead document and the Budget and recent financial performance of the Charity. They will also meet the General Manager and the other employees and have a tour of the facility. Trustees can attend appropriate training events where these will benefit in carrying out their role.

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FRIENDS OF THE TIVOLI

REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31[ST] DECEMBER 2023

Organisation

The Board of Trustees consisting of not less than three members and a maximum of seven administer the charity and its trading subsidiary. The board hold meetings to cover development, finance, and all aspects of the charity. A General Manager, Charlie North Lewis, is appointed by the Trustees to manage the day-to-day operations of the charity. In addition, there is a Building Services Manager, a Production Manager, a Finance Administrator (self-employed), an Office Administrator, a Box Office Administrator, Lighting Technician, Sound Technician and Front of House Manager all who are salaried employees/self-employed with the Projectionists, and Technical Crew being paid a film/show fee.

The Charity relies heavily on volunteers to perform many tasks for example duty manager, front of house, box office, office, and financial administration, operating the bar and café, and day to day maintenance. It is estimated that in a normal year volunteers provide approximately 21,000 hours and at appropriate rates of pay this is equal to £220,000.

Related parties

The charity’s wholly owned trading subsidiary, Tivmanco Limited, was established to operate the theatre, bar and refreshments and gift aids the surplus for the year to the charity. To comply with FRS102 update bulletin 2 relating to gift aid of surpluses, from 2018 onwards the surplus for the year will be reflected in the accounts in the year when the surplus is paid over. The 2019 surplus was retained by Tivmanco Limited, and tax was paid leaving the balance to meet the shortfall in 2020 arising from the pandemic. The balance remaining from 2020 was used to meet the shortfall in 2021. The 2022 surplus was paid over in 2023.

Pay Policy

The directors who are the Trust’s trustees give of their time freely and receive no remuneration and details of any Trustees’ expenses are disclosed in note 6 to the accounts.

It has been normal practise to review salary levels on an annual basis. One of the conditions of the Arts Council Grant awarded in 2021 was that there should be no pay review for at least 18 months following receipt of the grant approval. There was no review in 2022 and a review was undertaken in March 2023.The factors considered as part of the review - the impact of the cost-of-living crisis, minimum pay legislation and differentials coupled with the ability of the theatre to pay. Trustees have also reviewed the theatre’s performance at the end of a financial year and if the budget surplus is above a level determined annually by Trustees, then office staff/managers have received a thank you/bonus for contributing to the success of the theatre. This will be considered when reviewing the 2024 performance. There has been a change in financial administration with the new member of staff being self-employed and a number of the technical crew are now on a zero-hour contract. The pay levels for the senior staff were set on similar posts elsewhere, local market rates and importantly what the theatre could afford.

Risk Management

The Trustees are aware of the risks the business faces and through the board meetings review progress to ensure that any risks are minimised. The General Manager and his team concentrate on the non-financial risks arising from fire, health and safety of artists and audience and other risks that are identified on an on-going basis and from the annual review by the Insurance Company. The Child Protection Policy is in line with the procedures of the local authority.

A risk management strategy has been adopted to cover an annual review of the risks the charity may face, the establishment of systems and procedures to manage the risks identified in the plan, and the implementation of procedures designed to minimise any potential impact should any risk materialise. The risk register is reviewed on an annual basis. A key element in the management of financial risk is the setting of a reserves policy and its regular review by the Trustees.

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FRIENDS OF THE TIVOLI

REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31[ST] DECEMBER 2023

OBJECTIVES OF THE CHARITY

The main objective for which the Charity is established is to promote, restore, maintain, improve, and advance public education in the performing arts by the promotion and production of theatrical plays and the encouragement of the arts including film, shows, drama, mime, dance, singing and music for the benefit of the community. The Charity has a general aim of contributing to the quality of life of the people of East Dorset and the wider area by providing, on a regular basis, accessible professional and community arts events.

PRINCIPAL ACTIVITIES ACHIEVEMENTS AND PERFORMANCE

2023 was the continuation of the recovery started in 2022 after 2020 and 2021 had been severely affected by the pandemic. There is still a long way to go, especially for cinema with the numbers falling below the 2022 level. There are signs that 2024 will be an improvement and hopefully that will be the start of Wimborne films and increased attendances. The show’s numbers were excellent and at the end to the year the pantomime Cinderella broke all records.

Attendance	2019	2020	2021	2022	2023
Cinema/Satellite	25,845	7,758	4,276	12,559	10,449
Shows	52,414	14,195	21,827	48,288	54,389
Total	78,259	21,953	26,103	60,847	64,838

There were 41 different films shown with an average attendance of 65 (92 in 2022). 16 of the films exceeded the average accounting for over 75% of the audience with the remaining 25 films averaging 30 per performance. The most popular films were The Great Escaper, Allelujah, Barbie, Banshees of Inisheren, and Oppenheimer. There was 5 (1 in 2022) screening by satellite which attracted an average attendance of 68 (90 in 2022).

It has been a busy and successful year for live theatre with 140 different events taking place. The Tivoli programme gives a wide range of opportunities with the theatre able to provide quality shows with a balanced programme to suit all tastes covering jazz, comedy, ballet, drama, musicals, tribute bands, celebrity guests, factual programmes, original artists and, over Christmas and New Year a pantomime. Many of the annual favourites returned and a number of artists were appearing for the first time as the Tivoli’s reputation continues to spread. Made to Measure pantomime production of Cinderella was the most successful ever breaking all records and attracting an audience of just under 11,500 for the whole run. The reviews were excellent, and the year ended on a high.

The Trustees are appreciative of the way the General Manager and his team have operated in these challenging times and the way that the public has continued to support the theatre during these difficult financial times. The Tivoli reputation continues to grow in the theatre world and the General Manager takes every opportunity to enhance that reputation with the future programming.

What has continued throughout the year has been the on-going maintenance of the listed building. Works were carried out to meet requirements of the new insurer’s, health and safety and fire safety checks as well as regular day to day maintenance challenges of a listed building. Improvements were carried out to the kitchen in the café whilst providing additional storage backstage.

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FRIENDS OF THE TIVOLI

REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31[ST] DECEMBER 2023

Inside the auditorium the free-standing follow spots were replaced by a digital solution along with improvements to the lighting bar which was the first of a number of improvements to the visitor experience which Trustees are considering when resources allow.

Decisions were taken during the year to change the IT supplier and a full review of the IT requirements for now and in the future has been undertaken with the work being completed during 2024. Secondly a new web site is being developed which went live in May 2024. Finally the Articles of Association were reviewed updated and approved at an extraordinary general meeting at the end of October.

The Trustees have given due regard to public benefit when planning the charity’s activities in accordance with the Charity Commission’s General Guidance on Public Benefit. The paragraphs above set out the activities, achievements, and performance during the year, which are directly related to the objects and purposes for which the charity exists and are fully compliant with the Charity Commission Principles on Public Benefit.

FINANCIAL REVIEW

Trustees continued to monitor the budget throughout the year on a quarterly basis following the practice introduced in 2021 of reviewing the figures in line with the Arts Council headings leading to the merging of Tivmanco and FOTT to give a composite budget rather than two separate ones. It is a clearer process and provides the total picture of activity for the theatre.

Tivmanco the wholly owned trading subsidiary had a turnover approaching one and half million pounds an increase of just under £200,000 from the previous year. 80% of the turnover came from stage shows and cinema, 8.5% from the bar and refreshments and the balance from miscellaneous sales, advertising, and donations.

The 2023 surplus of £111,809 was a reduction of £3,300 compared with the 2022 surplus of £115,101. Whilst the net turnover increased by £68,000 expenditure increased by over £71,000 through increased wage/salary costs, utility costs, additional security at live shows, advertising, internal maintenance, and banking charges. Overall, this was an excellent result which was helped by the pantomime at the end of the year. The surplus of £111,809 from the trading arm Tivmanco for 2023 will be covenanted to the charity in 2024.

This is not the complete financial picture as the charity is responsible for the external maintenance, insurance, business rates, water/sewerage rates, and other expenses of the buildings as well as receiving income from donations, membership, and fundraising. In 2023 the charity received £151,347 covenanted from Tivmanco relating to the 2022 surplus and a balance in hand. This enabled the charity to have a surplus for the year of £58,422 after taking into account the following increased expenditure on external maintenance, audit fees, depreciation offset by additional investment income.

The Trustees have always supported the General Manager in moving the theatre forward whilst ensuring that any increased financial commitment is planned and only implemented when it is financially prudent to do so. Strong financial management will continue to be exercised minimizing risk wherever possible so that the challenges facing the Tivoli are managed in a measured way.

The Trustees have used the Way Ahead document to carry out annually a thorough review of the needs of the theatre and agree their spending plans for the forthcoming year. The Trustees remain prudent and reviewed the document during the summer of 2023 bringing it up to date to ensure that it was relevant for world we now live in.

The Trustees would like to take this opportunity of thanking all the staff, and volunteers for their commitment during 2023 which was another difficult and challenging year.

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FRIENDS OF THE TIVOLI

REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31[ST] DECEMBER 2023

Investment Policy

The Trustees have regard to the liquidity requirements of operating the theatre and kept available funds as cash and placed them on deposit at the best rate obtainable. The theatre has no permanent endowment or annual financial support and relies on income from the customers visiting the theatre to meet the costs of running the theatre. Due to the nature of the business income is not invested for the long term.

Reserves Policy

The Charity aims to maintain unrestricted funds, the free reserves of the charity, at a level sufficient to ensure that all unrestricted expenditure outstanding at any one time can be met. Unrestricted funds were maintained at this level throughout the year. Great care is taken to ensure that no expenditure is incurred unless it can be afforded. Enhancements or improvements will not be approved unless the Trustees are satisfied that the need has been justified and the funds are there to meet that expenditure.

The Trustees review their policy annually and at the start of the year the minimum level of reserves which was set pre COVID was based on 60% of the estimated fixed costs in the following financial year which would continue to be paid if the theatre were closed for a 6-month period and that figure was £145,000. Trustees when reviewing the policy considered three options – the existing method, a figure based on 8 weeks turnover or taking a risk-based approach. It was agreed to move forward with the risk-based approach which would continue to be reviewed annually and the figure would change as each risk was reassessed. A number of factors were considered – downturn in income, increases in expenditure linked to downturn in income, one off costs, shortfall on FOTT and cash flow. The new figure is £173,070. Trustees will continue to fund equipment purchases from surplus reserve funds rather than establish a Designated Reserve for equipment replacement. The position will continue to be monitored. Any surplus reserve funds are available for maintaining, improving, and enhancing the theatre.

On the 1[st] January 2023 £320,862 of general unrestricted funds was available and during the course of the year £50,487 (£104,307 in 2022) was met from the general funds for the digital spot lights and lighting bar and a final invoice for the roof works. After taking into account the surplus for the year and the change in the reserves policy the amount of general unrestricted funds available at the 31[st] December 2023 was £369,862. This figure will be increased during 2024 when the surplus from Tivmanco Ltd in 2023 is covenanted to the Friends of the Tivoli. There is further work to be completed on the walkway connected with the roof which will be met from the unrestricted funds.

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FRIENDS OF THE TIVOLI

REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31[ST] DECEMBER 2023

PLANS FOR FUTURE PERIODS

“The Way Ahead – Review of the Tivoli Theatre” is an in depth look at all aspects of the theatre covering Governance (constitution, trustees, volunteers, and friends of the Tivoli) Budgetary/Financial Reporting (budget, monitoring, reporting, balances, and accounting records) Employees, Theatre and Buildings. It is a flexible document which has been updated in 2023 to reflect and meet the challenges from the changing times we live in.

Whilst the roof works were completed in 2022 there was still the need to strengthen the walkway under the roof and this work was completed in early 2024. A new web site which is relevant and meets the requirements of today’s audiences has been developed and went live from May 2024. Provision for a buggy shelter is a high priority and this will be provided during the early part of 2024. Moving forward the Manager and his team have been looking at areas of the theatre where improvements are required to enhance Health & Safety requirements, improve the visitor experience, as well as investigating whether grants are available to support the projects. Trustees will review the priorities for this work within the funds available and will agree a programme for the works covering the next 2/3 years.

Whilst an overall surplus was achieved in the last two years and 2024 has started well there are still challenging times ahead as the cost-of-living crisis continues to impact on costs as well as the ability of the audience to continue to support the theatre in these difficult times. The finances of the theatre are sound, and the Trustees will continue to maintain tight control through monitoring which will enable stability and moving forward on the projects referred to above.

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FRIENDS OF THE TIVOLI

REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31[ST] DECEMBER 2023.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of Friends of the Tivoli 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 (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 2019 FRS102.

• make judgements 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 adequate 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. They 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.

A resolution to re-appoint Francis Clark LLP for the ensuing year will be proposed at the Annual General Meeting in accordance with Section 485 of the Companies Act 2006.

This report of the Trustees has been prepared in accordance with the small companies’ regime under the Companies Act 2006.

Approved by the board of Trustees on 8 August 2024 and signed on their behalf by :

Alan Breakwell

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FRIENDS OF THE TIVOLI

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF FRIENDS OF THE TIVOLI

OPINION

We have audited the financial statements of Friends of the Tivoli (the 'charitable company') and its subsidiaries (the ‘group’) for the year ended 31 December 2023, which comprise the Group Statement of Financial Activities, Charitable Company and Group Balance Sheet and Charitable Company and Group Statement of Cash Flows, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

• give a true and fair view of the state of the groups and charitable company affairs as at 31 December 2023 and of its results for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

BASIS OF 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 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 original financial statements were 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 trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the 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. 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.

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FRIENDS OF THE TIVOLI

INDEPENDENT AUDITORS’ REPORT (CONTINUED)

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The trustees’ annual report has been prepared in accordance with applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of our knowledge and understanding of the group and charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the financial statements. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Statement of responsibilities of trustees set out on page 7, 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 the trustees 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 group and charitable company’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.

AUDITOR’S 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. 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our audit planning, we obtained an understanding of the legal and regulatory framework that is applicable to the Charity. We gained an understanding of the Charity and the sector in which the Charity operates as part of this assessment to identify the key laws and regulations affecting the Charity. As part of this, we reviewed the Charity’s website for an indication of any regulations in place and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were Charity legislation, employment law and health and safety regulations. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and Charities SORP - FRS 102.

We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the Charity complies with laws and regulations and deals with reporting any issues if they arise.

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FRIENDS OF THE TIVOLI

INDEPENDENT AUDITORS’ REPORT (CONTINUED)

As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the Charity’s ability to continue trading and the risk of material misstatement to the accounts.

As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the Charity’s ability to continue trading and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

• Enquiries of management and trustees regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. As part of these enquiries, we also discussed with management whether there have been any known instances, allegations or suspicions of fraud.

• Reviewed filings with the Charity Commission and whether there were any serious incident reports made during the year.

• Discussed with management if any health and safety incidents have been recorded during the year.

• Reviewed legal and professional costs to identify any possible non-compliance.

• Reviewed Board minutes.

• Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

• Reviewed estimates and judgements made in the accounts for any indication of bias.

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.

USE OF OUR REPORT

This report is made solely to the group and charitable company's trustees, 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 group and charitable company’s trustees those matters we are required to state to them in an auditor’s 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 charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Adrian Way FCA (Senior Statutory Auditor) For and on behalf of Francis Clark LLP, Chartered Accountants and Statutory Auditor

Towngate House 2-8 Parkstone Road Poole Dorset BH15 2PW

Date: 4 September 2024

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FRIENDS OF THE TIVOLI

GROUP STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

For the Year Ended 31st December 2023

INCOME AND ENDOWMENTS		Unrestricted	Restricted	Total	Funds
		Funds	Funds
	Note	2023	2023	2023	2022
		£	£	£	£
Income and endowments from
Donations and legacies	2	12,049	-	12,049	14,949
Other trading activities
Fundraising	2	-	-	-	205
Commercial trading operations	3	1,433,516	-	1,433,516	1,236,980
Investment Income	2	9,582	-	9,582	2,772
Total income and endowments		1,455,147	-	1,455,147	1,254,906
RESOURCES EXPENDED
Raising funds
Cost of generating voluntary income	4	250	-	250	250
Fundraising trading	4	-	-	-	-
Charitable activities
Other expenditure	4	114,305	-	114,305	96,684
Commercial trading operations	3	1,321,707	-	1,321,707	1,121,879
Total expenditure		1,436,262	-	1,436,262	1,218,813
Net incoming resources before		18,885	-	18,885	36,093
transfers
Gross transfer between funds	14&15	-	-	-	-
Net movement in funds for the year		18,885	-	18,885	36,093
Reconciliation of funds
Total funds brought forward		1,343,409	-	1,343,409	1,307,316
Total funds carried forward		1,362,294	-	1,362,294	1,343,409

All the charity’s activities derive from continuing operations during the above periods.

The notes on pages 14 to 23 form part of these accounts.

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COMPANY NUMBER: 3001139

FRIENDS OF THE TIVOLI AND GROUP

BALANCE SHEET At 31st December 2023

		Group		Charity
	Note	2023	2022	2023	2022
Fixed Assets		£	£	£	£
Tangible Assets	7	707,552	726,200	707,552	726,200
Investment in Subsidiary	9	-	-	1	1
		707,552	726,200	707,553	726,201
Current Assets
Stocks	10	5,215	4,343	-	-
Debtors	11	9,307	14,171	25,052	46,775
Cash at Bank and in Hand		1,178,992	1,085,557	524,407	435,741
		1,193,514	1,104,071	549,459	482,516
Creditors
Amounts falling due within one
year	12	538,772	486,862	6,528	16,655
Net Current Assets		654,742	617,209	542,931	465,861
Net Assets		1,362,294	1,343,409	1,250,484	1,192,062
Funds of The Charity
Restricted	14	-	-	-	-
Unrestricted:
General Charitable Funds	15	1,362,294	1,343,409	1,250,484	1,192,062
Total Charity Funds		1,362,294	1,343,409	1,250,484	1,192,062

The accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

Approved by the board of Trustees on 8 August 2024 and signed on its behalf by:

Alan Breakwell Trustee (Director)

The notes on pages 14 to 23 form part of these accounts.

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FRIENDS OF THE TIVOLI

Statement of Cash Flows and Consolidated Statement of Cash Flows

For year ended 31[st] December 2023

		Group	Group	Charity	Charity
	Note	2023	2022	2023	2022
		£	£	£	£
Cash used in operating activities	17	134,340	259,486	129,571	98,103
Cash flows from investing activities
Interest Income	2	9,582	2,772	9,582	2,772
Purchase of fixed assets	7	(50,487)	(104,307)	(50,487)	(104,307)
Cash used in investing activities		(40,905)	(101,535)	(40,905)	(101,535)
Increase(decrease) in cash and
cash equivalents in the year		93,435	157,951	88,666	(3,432)
es
Cash and cash equivalents at the
beginning of the year		1,085,557	927,606	435,741	439,174
Total cash and cash equivalents at
the 31st December 2023		1,178,992	1,085,557	524,407	435,741

The notes on pages 14 to 23 form part of these accounts.

13

FRIENDS OF THE TIVOLI

NOTES TO THE ACCOUNTS For the Year Ended 31st December 2023

1. Accounting Policies

(a) Basis of accounting

Friends of the Tivoli is a registered charity, registration number 1053930, Company number 3001139, registered in the United Kingdom. The address of the charity is given in the reference and administrative details on page 1 of these financial statements. The nature of the charity’s operations and principal activities are described in the Trustees annual report set out on pages 1 - 7.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Basis of consolidation

The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 December 2023.

No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a surplus for the financial year of £58,422 (2022 – deficit of £79,008).

A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the statement of financial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.

14

FRIENDS OF THE TIVOLI

NOTES TO THE ACCOUNTS For the Year Ended 31st December 2023

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

(c) Incoming resources

All incoming resources becoming available to the charity during the year are recognised in the Statement of Financial Activities. Grants and donations for specific purposes are accounted for as restricted income. Ticket sales, rental income from letting of the Tivoli theatre and bar and refreshment sales are recognised in the year the event took place. Income is stated gross of related expenditure but where appropriate net of VAT.

(d) Resources expended.

Expenditure is recognised when it is incurred and is reported gross of related income. It is recognised on an accruals basis and allocated to the appropriate headings in the financial statements.

(e) Government Grants

A grant that becomes receivable as compensation for expenses already incurred will be recognised in the profit and loss in the same period in which the related expense is incurred.

(f) Tangible fixed assets

Individual fixed assets costing £1,000 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

(g) Depreciation

Depreciation is provided on all tangible fixed assets in use, at rates and bases calculated to write off the cost or valuation less estimated residual value, of each asset over its expected useful life, on a straight-line basis, as follows: -

Freehold Improvements – 3.3% and 12.5%, Electrical and Stage Equipment – 12.5% Furniture and Other Equipment – 12.5%.

(h) Stock

Stock is recorded at the lower of cost and net realisable value after due regard for obsolete and slow-moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

(i) Trade Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Charity will not be able to collect all amounts due according to the original terms of the receivables.

15

FRIENDS OF THE TIVOLI

NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2023

(j) Cash and cash equivalents.

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

(k) Trade Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as noncurrent liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

(l) Operating Leases

Rental chargeable under operating leases are charged in the profit and loss account on a straightline basis over the lease term.

(m) Funds

Restricted Funds are recognised when a restriction is placed upon incoming resources. Note 14 analyses the restricted funds in more detail.

Designated funds are unrestricted funds where the resources are set aside for specific purposes at the discretion of the trustees.

Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the Charity.

(n) Going Concern

The financial statements have been prepared on a going concern basis. As explained in the trustee report the board have considered the impact on the charity’s operations and finances in the short to medium term from the uncertainty relating to the coronavirus pandemic and the cost-of-living crisis. In the opinion of the board, with proactively managing cash-flow the charity has sufficient working capital to continue to meet its financial obligations and pay its liabilities as they fall due for the foreseeable future and therefore the financial statements have been prepared on a going concern basis. The board have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure will be sufficient with the level of reserves held for the charity to be able to continue as a going concern.

16

FRIENDS OF THE TIVOLI

NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2023

2. Income and endowments

	2023	2023		2022
	£	£		£
	Unrestricted	Restricted		Total
Donations and legacies
Donations & Grants	9,475		-	11,438
Membership	1,568		-	1,196
Appeal	1,006			2,315
	12,049		-	14,949
Other trading activities
Fundraising	-		-	205
Investment Income
Building Society Interest	3,983		-	1,480
Bank Interest	864		-	23
COIF Charity Deposit Fund Interest	4,735		-	1,269
	9,582		-	2,772

Voluntary income of £14,949 in the prior year was attributable to unrestricted funds.

Other trading activities income of £205 in the prior year was attributable to unrestricted funds. Investment income of £2,772 in the prior year was attributable to unrestricted funds.

17

FRIENDS OF THE TIVOLI

NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2023

3. Commercial trading operations

The Charity has a wholly owned non-charitable trading subsidiary, Tivmanco Limited which is incorporated in the UK. Its issued share capital of £1 is owned by the Charity and held primarily for the purpose of furthering the Charity’s Objects. Tivmanco Limited is responsible for the operation of the Tivoli Theatre. Tivmanco Limited covenants its taxable profit to Friends of the Tivoli. A summary of its trading results is shown below. The subsidiary’s financial statements have been consolidated with those of the Friends of the Tivoli in the group accounts presented here.

	2023	2022
	£	£
	Unrestricted	Unrestricted
Profit and Loss Account
Turnover	1,433,516	1,236,980
Cost of sales	869,354	740,810
Gross profit	564,162	496,170
Administrative expenses	452,353	381,070
Trading profit	111,809	115,100
Other operating income	0	0
Profit before taxation	111,809	115,100
Taxation	0	0
Net profit	111,809	115,100
Amount b/f from subsidiary	151,347	36,247
Amount gift aided to Friends of the Tivoli	151,347	-
Retained in subsidiary	111,809	151,347

A summary of the financial activities undertaken by the charity is set out below:

	2023	2022
	£	£
Gross incoming resources	172,979	17,926
Expenditure on charitable activities	(108,785)	(93,524)
Fundraising costs	(250)	(250)
Governance and investment management costs	(5,522)	(3,180)
Net incoming resources	58,422	(79,008)
Total funds brought forward	1,192,062	1,271,070
Total funds carried forward	1,250,484	1,192,062
Represented by:
Restricted income funds	-	-
Unrestricted income funds	1,250,484	1,192,062
	1,250,484	1,192,062

18

FRIENDS OF THE TIVOLI

NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2023

4. Expenditure

	2023	2023		2022
	£	£		£
	Unrestricted	Restricted		Total
Cost of generating voluntary income
Membership expenses	250		-	250
Fundraising trading costs
Fundraising activities	-		-	-
Investment management costs
Bank Charges	-		-	-
Charitable activities
Theatre and Cinema costs
Establishment expenses	39,648		-	26,565
Depreciation	69,135		-	66,939
Governance costs
Audit Fee	5,522		-	3,180
Trustees Indemnity Insurance	-		-	-
	114,305		-	96,684

Trustees Indemnity Insurance is covered but following a change in Insurance Company there is now a combined policy, and the individual cost cannot be identified.

All expenditure in the previous year was attributable to unrestricted funds.

5. Staff costs

	2023	2022
	£	£
Group
Gross salaries including Show Fees	183,260	176,411
National insurance	8,799	8,380
Pension	4,917	4,935
The weekly average number of employees
during the year for the Group was as follows	9	9
No employee earned more than £60,000.

6. Net income

		2023	2022
		£	£
This is stated after charging:
Staff costs (see note 5)		196,976	189,726
Auditors’ remuneration:	Charitable company	5,522	3,180
	Trading subsidiary	8,026	3,590
Depreciation		69,135	66,939

19

FRIENDS OF THE TIVOLI

NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2023

Trustees’ remuneration and expenses

The Trustees (directors) received no remuneration or any other benefit from the charity (2022: nil) and no reimbursed expenses (2022: nil).

Funds belonging to the Charity have been used in the purchase of insurance to protect the Charity from loss arising from the neglect or defaults of its trustees, employees or agents and indemnify the trustees against the consequences of any neglect or default on their part.

7. Tangible fixed assets

	Freehold	Electrical	Furniture
	Improvements	and Stage	and other	Total
		Equipment	Equipment
Cost or valuation:
1st January 2023	926,643	477,990	75,805	1,480,438
Additions	298	50,189	-	50,487
Disposal of Asset
31st December 2023	926,941	528,179	75,805	1,530,925
Depreciation:
1st January 2023	289,198	398,076	66,964	754,238
Provision for year	32,677	34,218	2,240	69,135
Disposal of Asset
31st December 2023	321,875	432,294	69,204	823,373
Net book values:
31st December 2023	605,066	95,885	6,601	707,552
31st December 2022	637,445	79,914	8,841	726,200

8.

Freehold Property

In 2004 the freehold of the Tivoli Theatre (19/23 West Borough) was acquired from the Dorset County Council and 25/27 West Borough from the East Dorset District Council, previously both properties had been leased on peppercorn rents. If the buildings ceased to operate for theatre activities, then the properties would return to the local authority Dorset Council.

9.

Investments

Investments in subsidiaries: Shares at cost	2023 £ 1	2022 £ 1

The Company holds 100% of the ordinary share capital of Tivmanco Limited which is a company registered in England (company number 03237197), undertaking trading activities associated with operating the Tivoli Theatre.

20

FRIENDS OF THE TIVOLI

NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2023

10. Stocks

	Group	Group	Charity	Charity
	2023	2022	2023	2022
	£	£	£	£
Goods for resale	5,215	4,343	-	-
Debtors
	Group		Charity
	2023	2022	2023	2022
	£	£	£	£
Trade debtors	371	219	-	-
Amounts owed by group undertakings	-	-	24,124	43,484
Other Debtors				-
Prepayments and accrued income	8,936	13,952	928	3,291
Corporation Tax				-
	9,307	14,171	25,052	46,775
Creditors falling due within one year.
	Group		Charity
	2023	2022	2023	2022
	£	£	£	£
Trade creditors	40,998	39,435	30	10,459
Amounts owed to group undertakings	-	-
Other taxes and social security costs		-	-	-
Accruals and deferred income	497,774	447,427	6,498	6,196
	538,772	486,862	6,528	16,655

11. Debtors

12. Creditors falling due within one year.

13. Commitments

Operating Lease Commitments

As at 31[st] December 2023 the group had total commitments under non – cancellable operating leases as follows:

Operating Leases which expire:	2023	2022
	£	£
Within one year	5,849	4,590
Within two and five years	1,025	2,190
	6,874	6,780

Contingencies

The total amount of contingencies not included in the balance sheet is £12,400 (2022 - £14,050).

21

FRIENDS OF THE TIVOLI

NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2023

14. Restricted Funds

When works are completed, the related restricted funds are released in that year. The appropriate adjustment is made between restricted and unrestricted funds. There were no restricted funds in 2023.

15. Unrestricted Funds

Group 2023 2022 £ £ At 1st January 2023 1,343,409 1,307,316 Surplus for the year 18,885 36,093 Transfer between funds At 31st December 2023 1,362,294 1,343,409 Fixed Asset Reserve 707,552 726,200 Designated Reserve 173,070 145,000 General Reserve 481,672 472,209 1,362,294 1,343,409 Analysis of Group Net Assets between Funds General Fund Designated Funds £ £ Tangible Fixed Assets 707,552 Cash at Bank and in Hand 1,005,922 173,070 Other net current assets/liabilities (524,250) TOTAL 481,672 880,672

Charity 2023 2022 £ £ 1,192,062 1,271,070 58,422 (79,008) - - 1,250,484 1,192,062 707,552 726,200 173,070 145,000 369,862 320,862 1,250,484 1,192,062 2023 Total 2022 Total £ £ 707,552 726,200 1,178,992 1,085,557 (524,250) (468,348) 1,362,294 1,343,409

16. Analysis of Group Net Assets between Funds

22

FRIENDS OF THE TIVOLI

NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2023

17. Reconciliation of Net Movement in Funds to Net Cash Flow from Operating Activities

	Group		Charity
	2023	2022	2023	2022
	£	£	£	£
Net movement in funds	18,885	36,093	58,422	(79,008)
Add depreciation charge	69,135	66,939	69,135	66,939
Add Subsidiary surplus			-	-
Deduct Interest Income	(9,582)	(2,772)	(9,582)	(2,772)
Decrease/Increase in Stock	(872)	240
Decrease/Increase in Debtors	4,864	29,561	21,723	101,584
Decrease/Increase in Creditors	51,910	129,425	(10,127)	11,360
Total	134,340	259,486	129,571	98,103

18. Related Parties

The Charity’s wholly owned non-charitable trading subsidiary, Tivmanco Limited, also has its registered office at 19-23 West Borough, Wimborne, Dorset. A gift aid donation of £111.809 will be paid during 2024 (2022: £151,347 – paid during 2023) to the Friends of the Tivoli from Tivmanco Limited. At the balance sheet date £24,124 was owed by Tivmanco Limited (2022: £43,484 being the balance on the inter-company loan account through which relevant expenses and income are transferred to the charitable company).

19. Contingent Asset

During 2021 a contribution of £6,096 was made to the owner of Kings House. Should the property be sold within 5 years a clawback clause applies and funds will be returned to Friends of the Tivoli in these circumstances.

23

For the information of Trustees only

FRIENDS OF THE TIVOLI

CHARITY DETAILED INCOME AND EXPENDITURE ACCOUNT For the Year Ended 31st December 2023

	2023	2023	2022	2022
	£	£	£	£
Income
Donations and fundraising		12,049		15,153
Covenant Tivmanco		151,347		-
Interest		9,582		2,772
		172,978		17,925
Administrative Expenses
Fundraising Activities	-		-
Membership Activities	250		250
Rates and Water	2,071		1,857
Insurances	15,562		14,437
Audit fees	5,522		3,180
Repairs and maintenance	18,762		9,057
Irrecoverable VAT	3,016		1,175
Depreciation	69,135		66,939
Professional Fees	200		-
Miscellaneous Expenses	38	114,556	38	96,933
Net Income for the year		58,422		(79,008)

24

For the information of Trustees only

FRIENDS OF THE TIVOLI CONSOLIDATED DETAILED INCOME AND EXPENDITURE ACCOUNT For the Year Ended 31st December 2023

	2023	2023	2022	2022
	£	£	£	£
Stage Shows and Cinema
Turnover	1,156,907		1,012,973
Paid to performers/promoters and for films	819,730		702,359
		337,177		310,614
Refreshments
Turnover	61,878		53,341
Cost of sales	25,540		19,402
		36,338		33,939
Bar
Turnover	60,629		49,505
Cost of sales	24,084		19,049
		36,545		30,456
Net takings from theatre		410,060		375,009
Miscellaneous sales and advertising		151,161		120,291
Rent		2,940		830
Donations, gifts, and grants		12,049		15,153
Interest receivable		9,582		2,812
		585,792		514,095
Administrative Expenses
Salaries	201,976		194,727
Contractors	12,286		2,670
Light and heat	37,900		28,018
Rates and water	2,071		1,857
Repairs and maintenance	32,658		15,330
Insurance	15,562		14,437
Cleaning and toiletries	19,799		17,624
Motor and travel	1,793		804
Security	20,580		12,053
Telephone	2,795		2,469
Equipment hires and replacement	2,948		2,875
Printing, postage stationery and computer	18,659		19,456
Performing Rights Society (net)	1,118		1,272
Advertising	42,704		39,388
Audit fees	13,548		6,770
Professional Advice	200		523
Bank charges	1,168		1,181
Depreciation	69,135		66,939
Transaction & Online Charges	41,534		31,567
Membership expenses	250		250
Sundry expenses	6,839		3,171
Irrecoverable VAT	21,386		14,622
Corporation tax	-		-
		566,907		478,002
Surplus/ Loss for year		18,885		36,093

25