THE PALACE THEATRE WATFORD LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Company Registration No. 3218719 (England and Wales) 4AtsIXU198' 1511212022 COMPANIES HOUSE
THE PALACE THEATRE WATFORD LIMITED CONTENTS Page Dlrectorn and Advisers Report of the Di¢t0 3-10 Report of the Independent Auditors 11-13 Statement of Financlal Actlvities 14 Balance Sheet 15 Statement of Cash Flows 16 Notes to the Financial Statements 17-27
THE PALACE THEATRE WATFORD UMITED DIRECTORS AND ADVISERS Directors Chair Deborah Lincoln (resigned 26 January 2022> Chair John Hunt (from 26 January 2022) Kenny Dada Agnieszka Dychton . {appointed 26 January 2022) Anne Fenton Howard Groves (appointed 10 May 2022) Mark Lawren Carol Lingwood Bibi Mauthoor (appointed 14 March 20221 Binila Mehta-Parmar Georgina Rae Brett Spencer Patrlck Stoddart Jayne Trotrnan Timothy Imlliams" Govemancè Committee Govemance Commrttee Govemance Committee Governance Committee Govemance Committee Directors nominated by Watford Borough Counul. SeGreLIry Jamie Arden Registered Office 20 Clarendon Road Watford Herts WD17 1JZ Bankers National Weslminster Bank plc 72-74 High Street Watford Herts WD17 2BQ AudStoKs PKF Ltluejohn LLP 15 Westferry Circus Canary Wharf London E14 4HD Charity Registration number 1056950 Company Registration number 3218719
THE PALACE THEATRE WATFORD LIMITED REPORT OF THE DIRECTORS The Directors of the Charrtable Company present herewilh their Annual Report. together with the audited Financial Statements for the year ended 31 March 2022. This report is intended to fulfil the requirements both of Section 234 of the Companies Act 2(K)6 and of the Charities Act 2011.The Director5 have adopled the provisions of the Statement of Recommended Practice "Accounts'ng and Reporb"ng by Charities" in preparing the annual reFMJrt and financial statements of the charity. Reference and Administrative Details The Palace Theatre Wafford Limrted is a charitable company limtled by guarantee and govemed by a Memorandum and Articles of Association dated 17 May 1996. Public Benefit The Trustees confirm that they have had regard to the guidance on public benefit issued by the Charity Commission when considering the objectives and activities of the Charitable Company. Board of Directors The Directors and Trustees from 1 April 2021 to the date of the signing of the Financial Slatemenls were as shown on page 2. The Directors shall have power at any time lo appoint any person to be a Director. but so that the total number of Directors shall not at any time exceed the number fixed in accordance with the Articles. Any Director so appointed shall hold office only until the following Annual General Meeting, and shall then be e1ible for re-election. but shall not be tsken into account in determining Ihe Directors who are to retire by rotation al such meeting. Tvm Directors a nominated by Watford Borough Council. (There are specific Tequirements associated with the rotstion of Directors, the terms of which are stated in the Mernorandum and Articles of Asso(aation). Trustees receive ongoing training. incI1n9 attendance at an annual away day. The Directors and Trustees delegate the day to day running of the organisation to.. Brigid Lannour- AstIC Director and Chief Executive Jamie Arden - Executive Director and Company Secretary Andrew Phillips- Director of Finan PovrS of the Company The Directors take this opportunity to confirm that under Clause 3 of the Charitable Company's Memorandurn of Associatson. it is empowered to carry out the actNrties reviewed in the Annual Report including, but not limited to. the beneficial investrnent of the Charitable Company's funds. Strategic Objectives From April 2018 Wattord Palace Theatre e4VPT) entered into our new 4 year Business Plan 2018-2022. WATFORD PALACE THEATRE MISSION AND VISION sTATEmEr 2018-2022 WPT Mlsslon Great slones that entertain. provoke and inspire. on our stage and in our streets. WPT Vision Everyone's welcome at the Palace. We aim to inspire arKI entertain through high-quality, invenlive and ambitious drama, new plays. musicals, dar)ce and family shows,. free outdoor festivals.. diverse stand-up.. and a much-loved traditional panlomime.
THE PALACE THEATRE WATFORD LIMITED REPORT OF THE DIRECTORS See yourself on our stage. We want our shows to look like our audience.. reflecting our diverse communty, and fully representing women. We encourage and celebrate creativity in our town, giving a plafform to our communities and ouryoung people. See St here first. We are proud that our locally produced shows and home grown talent have toured nationally and intemab'onally. teen seen on BBC iPlayer, won awards and transferred to the West End. WATFORD PALACE THEATRE - INSPIRATION ON YOUR DOORSTEP Strategic Objectives For the four years 201&2022. the charities strategic obj'ectives are as foll¢)WS: STRATEGIC OBJECTIVE ONE - STRIVE FOR EXCELLENCE To increase the quality, diversty and impact of the work prodUd at IP4PT. STRATEGIC OBJECTIVE TWO - THINK LOCAL AND BE DIVERSE Develop work for a local audience and fvrther diversfy the audience and participant demographic. STRATEGIC OBJECTIVE THREE - BE FINANCIALLY RESOURCEFUL, RESILIENT, SUSTAINABLE AND ENTREPRENEURIAL Significantly increase and diversify contributed and eamed ir)come to provide organisational resilience. STRATEGIC OBJECTIVE FOUR. PARTICIPATE- BE COLLABORATIVE & CREATIVE IN PROMOTION & AUDIENCE DEVELOPMENT Develop a stronger ielationship vilh the community to promote and provide opportunittes to participate with the woth made at the venue. OUR ACHIEVEMENTS AGAINST OUR OBJECTIVES The Covid 19 pandemic and its ongoing impact on the theatre sector continued to be a large feature of our year, and our recovery from the impact of dosure due lo the pandemic for large parts of 2020121. It was not until July 2021 that we began the process ofrecovery again and being able to programme shows and reopen our doors to the public once more. As theatres across all four nations of the UK were pemrtted to reopen and theatres faced ongoing challenges in relation to returning audien$. viability of touring. show cancellations due to illness, especially over the winter of 21122. Reopening We started the reopening plans from July 2021. with Iwo outdoor festivals.. Imagine Watford and Stage in the Park- due to the ability lo deliver these projects ambitiously and at scale, bul with the added mitigation of reducing the covid risks for staff, artists. and audien$. by tsking this work outdoois. Imagine Watford - Reimaglning our annual outd¢)or festNal for 2021 This year to ensure the festival Ynt ahead arKI provide much needed joy to our town and community after an incredibly difficult year. we had to "Reimagine" our annual Imagine Waiford outdoor festival. Our priority was keeping our community safe whilst provKling all the joy. levity. and magic that Imagine Watford has become synonymous wrth. To ensure that we are providing free access to greal arts auoss the town in a covid safe manner the festNal took pla across various greenfield sites across Wattord - as opposed to one large convening of people in the town centre. The activity will took place in two strands. Pop up mini festivals- on Ihree green sites across Ihe town Playful instsllats'ons- in the town centre
THE PALACE THEATRE WATFORD LIMITED REPORT OF THE DIRECTORS These smaller community focused interactions of around one thousand households per location showed us a new possibilty and future for the fests'val. But we missed the connects.on that the festival has enjoyed with the town cenlre. ils businesses. residents. and visilors, making Wafford town centre a destination and creating significant economic impact for the last ten years_ A5 part of our new vision for the festival - that we submitted to Arts Council as part of our LET'S CREATE delivery plan from April 202>March 2026. there is apFelite for Imagine becoming a hybn'd of its previous model and the reimagined version we created for 2021. Stage in the Park As a key part of Watford's cultural event calendar. Stage in the Path was a brand new festival delivered as a partnership behveen Harfequin Theatricals. Watford Palace Theatre and Wafford Borough Council in Cassiobury Park dunng the summer 2021. The festival was exceptionally ambitious. providing a full programme of entertainment for all generations for Ihe peoFAe of Watford and beyond. Stand Up Comedy shows, Children's shows. Musicals, headline Musi¢ Acts. magicians brought a variety of entertainfflent that had something for everyone. The festival ran from 23 July lo 8 August and was delivered under Covid-19 Stage Three restrictions. so audiences were bubbled in our event site. These restri¢tions ¢hanged during the run of the festival, to allow more liberty and liow on the site. The site consisted of fully operational backstage and front of house areas. in essence creating a fully functioning venue from scratch in this new park location. There was a large main stage (with all the sound and lighting capabilib'es) and a fully stocked bar I hospitalty marqlo on the srte ~ with food and drinks available throughout the festival. The challenge was delivering the fests'val in such a short period of planning and specifically in tems of the infrastructure operab.ons required. at a penod where these festivals were opening across the UK as part of the covid recovery_ This rnade obtaining infrastructure such as festival toilets, fencing, and staging exoptionally difficult due to a competitive market and at a cost premium. Therefore. the budget of the festival had to increase dramatically. The festival was also impacted from some exceptionally severe weather conditions dunng the whole run wtth torrential rain. IwJhlning, and extreme winds (unusual for July l August) makin9 the site difficutt from an audience appeal perspective being exposed and open to the elements. However, to achieve the festival in such a short period was a successfijl leaming process for Watford Palace Theatre and our partners. that helped to shape our future strategic thinking and complexilies on the delivery of these types of outdoor festivals within a park environment during the summer months. Autumn season 2021- Reopening Season back Inside the Palace Theatre From September 2021 we then began the process of bringing our work back inside and reopening our Theatre and welcoming audien5 back. This process started with Love N Stuff. a touring show from Oldham Coliseum, followed by our varied programme of Children's shows. stand-up comedy (lan Stiding l Russell Kane l Louise Omelianl and dance with Ballet Black retuming. We also gave Spa to the Freelancers we had nurtured and supported during the pandemic wilh our Freelancer season and support of the Walf0 Fring8. A particular highlight of the season was Dracula a highly slriknng visual show from company Imitating the Dog - that was staged live, and we also made available as a video on demand servTr for audiences not able to come to the live performances_ The reopening season concluded with our ability to stage our annual pantomime once again in the Theatre. with Dick Whittinglon and His Cat. A Panto that was originally eamiarked for 2020 pantomime prior to the impact and Theatre's closure from Covid-19 pandemic. We were delighted to have delivered a 11 run of panto shows. without a need to cancel any due to Covid (unlike most of our peers in the induslryl. This is testament to the hard work of our team and our robust covid secure measure5 we put in place in the venue.
THE PALACE THEATRE WATFORD LIMrrED REPORT OF THE DIRECTORS Spring Season 2022- our road to recovery Our Spring 2022 season then started with Lile Sukhsl Stand-up comedy by Sukh Ojla. also a new strand of programming was Introdu and develoFed with music becoming a prevalent strand of our work in future. This began with Iribute acl The Bob Dyan Story being the first this season and other music gigs, Jazz festivals, bands and l or music projects gracing our stage. other Take Part Youth and Community programmes included the hoskn'ng of the HertfOrdshI Young Persons Film Festival, developing exiting local film projects and young talented filmmakers, with our partners Warner Bros Studios Leavesden, Cathartic and Hertfordshire University- Our new Storytelling and Storyplay stsnds were also developed, helping to develop confidence and literacy skills within young age groups - some young people with English as a second language. We also launched our Peoples Palace Cornpany. our older generation en$eme, alongside establishing further our Palace Young Company as an extension of our Palace Youth Theatre. Projects that We piloled and developed using funds from the Garfield Weston Culture Fund we received in 2020. SHOWS AND PROJECTS DELIVERED AGAINGST STRATEGIC OBJECTNES APRIL 2021- MARCH 2022 STRATEGIC OBJECTIVE 1: STRIVE FOR EXCELLENCE To Increase the quality, diversity and impact of the work produced at WPT HIGH QUALITY PERFORMANCES AND ENTERTAINMENT ON OUR STAGES: Dick Whittington and His Cat- Pantomime 2021 Love 'N Stuff The Very Hungry Caterpillar Dracula: The Untold Story Underwater Fireman Sam Saves The Circus- Live! Russell Kane and Friends Luisa Omelian.. God Is A Woman Ballet Black- Double Bill lain StITling.' Failing Upwards Sukh Ojla- Life Sukhs The Bob Dylan Story Ed Gamble. Electric Bumper Blyton- The Improvised Adventure ELO Again
THE PALACE THEATRE WATFORD LIMITED REPORT OF THE DIRECTORS STRATEGIC OBJECTIVE 2: THINK LOCAL AND BE DIVERSE Develop work for a local audience and further diversify the audience andparn¢ipant demographlc. LOCAL SHOWS FOR DIVERSE AND INTREGENERATIONAL COMMUNITIES: Celebrate Vaisakhi 2021 Eternal Taal Good Wll Bunting Palace Scratch Night- September 2021 Black History Month 2021 1 Am Nol Your Negro Diwali 2021.. Pagrav Dance- Kattam Kati Palace Young Company Summer Project- Bufferi Hertfordshire Film Festival 2022 Community Storyplay and Storymakers R&DIPilots WBC Cultural Businesses Grant- First Phase delivered to invest in local creatives. artisls and SMES - Scheme faalitated by Wattord Palace Theatre on behalf of Watford Borough Council. STRATEGIC OBJECTIVE 3: BE FINANCIALLY RESOURCEFUL, RESILIENT. SUSTAINABLE AND ENTREPRENEURIAL Significanty increase and diversify contributed and eamed income to pmvide oryanisational resilience. HIRING THE THEATRE TO GENERATE MORE EARNED INCOME: Wafford Business Improvement Districl Classic Film Matinee - On The Town RESILIENCE PROJECTS DEVELOPED: New Comms System installed to improve Front of House l Back of House communications Bar Reconfiguration in 2021 to make the Front of House spaces more covid resilient Our New Scenic Workshop and Storage Unit in Bletchley - opened in June 2021 Commissioned new Masterplan vision for the fulure of Warford Palace Theatre building - with our architeduial partners Foster & Wilson WORKSHOP BUILDS FOR THIRD PARTIES: Creation Musical Senrf1s- DJ Posib'on Build Wind in the Wllows- Immersion Theatre Build Aldenham School Set Build STRATEGIC OBJECTIVE 4: PARTICIPATE - BE COLLABORATIVE & CREATIVE IN PROMOTION & AUDIENCE DEVELOPMENT Develop a stronger relationship with the Community to pmmote and pmvide opportunities to participate with the work made at the venue. DYNAMIC AUDIENCE ENGAGEMENT BEYOND THE l•lAIN STAGE: Imagine Watford 2021 Stage in the Park Watford The Secret Garden New Audien Oevelopment Research commissioned. and a new Audience Strategy develoFed The activities dwribed above demonstrate that public benefit is being provided by the Chanty.
THE PALACE THEATRE WATFORD LIMITED REPORT OF THE DIRECTORS Flnancial Review The Stslement of Financial Aclivrfies shows a deficit of £462,741 (2021 surplus of £544.151) for the financial year. This compnses a defiat before transfers on unrestn'cted fvnds of £201,423 {2021- surplus of £207,957) and a deficit on restricted funds of £261,318 (2021 surplus of £336,194). The Directors note that this surplus is declared after recognising depreciation chaTges of £272.525 {being £47,905 applied to unrestricted funds, and £224.620 applied to restricted funds). As at the year ended 31 March 2021. new and excepb'onal income sources had been recognised, resulting from SUC$$1 applications for Covid-19 related and other support. being Restricted Grants from Arts Council England's Cultural Recovery Fund of£248.481.' and The Gaffjeld Weston Foundation of£315.000. Much of the related expenditure has now actually taken pla in the period from 1 April 2021 due to the extended periods of lockdown causing further delay to the Theatre's re&opening. Income also includes HMRC'S Coronavirus Job Retention Scheme monies of £61,307 which has been recognised in the sarne period as the wage expendiiure foi furloughed staff that it supported. Financial Position in the Context of Ongoing Comrnitments and Obligations The Balan Sheet shows net assets of £5,646,930 at 31 March 2022 (2021- £6.099.671). As at the same date, Revenue subsldy amounting to £231,957 and £805,118 for the following 12-month period has been Confirmed by Wattord Borough Council and Arts Council England respect'vely. An agreed budgel for the year to 31 March 2023 has been approved by the Board of Directors. Subsidiary Undertaklngs The Charitable Company's wholly owned subsidiaries. The Pala Theatre Wafford Bar Limited and The Palace Theatre Watford Productions Limited. remained domant throughout the year. Investment Policy The Charitable Company holds surplus cash on a deposit a¢Untto receive a rate ofinterestcommensurate with an appropriate level of security. whilst not restricting access for operational purposes or payment of box office lo touring companies and hires. Where sufficienl SLtrplus cash remains available after due consideration for longer tem) liabilities, the Charitable Company utilises other relatNely low risk financial products (such as Fixed Rate Bonds) to maximise income. Parent Charitsble Company's Reserves Policy The Trustees have reviewed the Charitable Companls needs for reserves in line with the guidance issued by the Chanty Commission and have agreed the following reserves policy.. the target level of unrestricted reserves is based on 1 OOA of typical box Offi income and six weeks running costs. At the last calculalion, the target is to hold free reserves of £250,000. The unrestricted general reserve (see page 13) stood at £250.296 on 31 March 2022 {2021- £250,797). This policy is reviewed annually by the Trustees. Risk Assessment The Trustees have examined and prioritised the most critical risks to the Charitable Company and. as a result, are confident that they have in pla sufficient accountability and focussed action to protecl the objectives oflhe Charitable Company. A risk register has been produced and is reviewed by the Leadership Team and updated by the Executive Director every two months for consideration by the Board. The major risk identified concems the funding of the Charitable Company. Arts Council England and Watford Borough Council have the right under Service Level Agreements to wrthdraw fvnding andlor request repayment of nds should those funds be applied to purposes other than the stated chartiable objectives. The Charitable Company has put in Pla a range of mitigatory measures. The Board operates a separate govemance committee, with ils own Chair, to maintsin a transparent and obieth.ve overview.
THE PALACE THEATRE WATFORD LIMITED REPORT OF THE DIRECTORS The Covid pandemic and ils move towards a more endemic. every presented seasonal disease still represented the biggest risk to the Charitable Company's survival in recent years. Recovery from the lockd¢)wn closures and the end of the specific ffinancial support measures {CJRS and Cultural Recovery Fund monies), as well as audience confidence coming back into Theatres and buying tickets given the difficu5ts.es faced with the UK economy. made this period eXp'0na1IY challenging. However. our robust financial measures implemented during lockdown period. couple with our prudent financial management, reserves policy. and conlinued lean operations. meant the Charitable Company was in a solid base for surviving these challenging economic factors. Plans for future periods As we emerge from the Coronavirus pandemic and slvwly retum to our abilty to reopen and serve the people of Wafford and beyond, our fvture anS include". Securiro our future funding vias Arts Council new NPO framework and Watford Borough Council continues support Creating a new Artistic Vision. Mission. and Core Purpose for the Pala Theatre to ensure that the building and cultural infrastructure is fit for purpose in the medium to longer temi Delivering our Arb'stic programme IndoorslOutdoorslOnlinelOn the road. Statement of Trustees, Responsibilities The Twstees {who are also Directors of The pala Thealre Wafford ft)r the purposes of company law} ale responsible for preparing the Tnjstees. Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclice). Company and Charity law requires the Trustees to prepare Financial Statements for each financial year. Under that law Ihe Trustees have elected to prepare the Financial Statements in accordance with the Charities. Stalement of Recommended Practice, Accounting and Reporting by Charities issued in March 2015 and United Kingdom Financial Reporting and Accounting Standards. Under Company and Charity law the Trustees must not approve the Financial Statements unles5 they are satisfied that they give a true and fair view of the state of affairs of the Charttable Company and of the incoming resources and application of resources, including the income and expenditure of the Charitable Company (and the Group) for that period. In preparing these Finanal Statements. the Truslees are required lo.. select suitable accounting policies arKI then apply them consistently" obserrfe the methods and principles of the Charibes. SORP" make judgements and estimates that are reasonable and prudent" state vthether applicable accounting standards have bn followed. subject to any material departures disclosed and explained in the Financial Statements.. and prepare Ihe Financial Statements on the going concern basis unless rt is inappropriate to presume that the Company will continue in business. The Trustees are responsible for keeping proper accounting records that disdose wilh reasonable accuracy at any ts'me the financial posits.on of the Charitable Company and enable them to ensure that the Financial Statements comply with the Companies Act 2C6. They are also sponsible for safeguarding the assets of the Charitable Company {and the Group) and hence for taking reasonable steps for Ihe prevention and detection of fraud and other irregularities. In accordance wilh company law. as the Company's Directors, we confirn that. so far as we are aware. there is w relevant audit infomiation of which the CoMpanS auditors are unaware" and as the Directors of the Company, we have taken all steps that we ought to have taken in order to make ourselves aware ofany felevant audrt information and to estsblish that the Company's auditors are aware of that information.
THE PALACE.THEATRE.WATFORD LIMITED REPORT OF THE DIRECTORS Aud5¢ors. P.KF L¢ttlei¢knLLPwe appted¥S3ud[Ist0ts Charit•"bJe comp8ny.and have Indted"theIrwl1llftts$1 t() cLY¢tinue in.office. This report.was appTO¥ order ofthe P0rd lif E)irectors and.s¥j on Its bèhalf by: oh 30.Novenkn.2022 10
THE PALACE THEATRE WATFORD LIMrrED INDEPENDENT AUDITORS. REPORT Independent Auditors. Report to the Members of The Palace Theat Watford Limited Opinion We have audited the financial statements of The Palace Theatre Walford Limited (the 'charitable company'l for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet. the Cash Flow Statement and noles to the financial statemenls. including a summary of significant accounting poliaes. The financial reporb'ng framewo that has Iken applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Slandard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources. including it5 income and expendilure. for the year then ended: have teen propedy prepared in accordance wth United lQ'ngdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for opinion We conducted our audrt in accordan wth Intemational Standards on Auditing (UK) (ISAS (UK)) and applicatre law. Our responsibilities under those stsndards a further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordan Vth the ethical requirements thal are relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Standard, and we have fiJSfilled 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 opinn. Conclusions relating to going concern In auditing the financial ststements. we have concluded that the Tnjstees. use of the going concem basis of accounting in the prep8rab.on of the ffinancial statements is appropriate. Based on the work we have perfomed. we have nol identified any material unrtaIntieS relating to events or conditions that, individually or collectivety, may cast signifficant doubt on the charitable company's abilty to continue as a going concem for a period of at least e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the TrUsts with respect to going concem are desciibed in the relevant sections of this report. Other information The other infomiation comprises the informab.on included in the Annual Report of the Trustees, other than the financial statements and our auditorfs report thereon. The Trustees are responsible for the other infomation contsined within the Annual Report of the Trustees. Our opinion on the financial statemenls does not cover the other information and. except to the extent otherwise expliciUy stated in our report. we do not express any form of assurance condusion thereon. Our responsibility is to read the olher information and. in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwse appears to be materially misstated. If we idents'fy such material inconsistencies or apparent material misstatements. we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we condude that there is a material misstatement of this other infomiation, we a required to report that fact. We have nothing to report in Ihis regard. 11
THE PALACE THEATRE WATFORD LIMrrED INDEPENDEiif AUDrroRS' REPORT Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of Ihe audit.. the information given in the Annual Report of the Trustees (which includes the Directors. report) prepared for the purposes of company law, for the financial year for which the financial stalements are prepared is consistent with the finanual ststements," and the Annual Report of the Trusts (wthich includes the Directors. rekX)rt) has been prepared in accordan with applicable legal requirements. Matters on which we are requlred to report by exceptlon In the light of the knowledge and understanding of the charitable company and rts environment obtsined in the course of the audrt, we have not identsfied matenal misstatements in the Annual Report of the Trustees. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if. in our opinion- adequate accounting records have not been kept, or retums adequate for our aLKlit 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 disdosures of Trustees. remuneration specrfd by law a not made.. or we have nol received JI the infomalion and explanats.ons we require for our audit. Responsibilities of Trustees As explained more fulty in the TFustees' responsibilities statement. the Trustee5 (who are also the directors of the charitable company for the purposes of company law) 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 detemiine is necessary to enable the preparats'on of financial ststements that are free from material misstatement. whether due to fraud or eOr. In preparing the financial ststements. the Twstees are responsible for assessing the charitable company's ability to continue as a going concem. disclosing, as applicable. matters related to going concern and using Ihe going cOnM basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operalions. or have no realistic altemative but to do so. Auditovs 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 lo fraud or error. and to issue an audilor's report that includes our oynion. Reasonable assurance is a high level of assuran but is not a guarantee that an audit conducted in accordance with ISAS (UK) wll ahvays delect a material misslatement when it exisls. Misstatements can arise from fraud or error and are considered material rf, individually or in the aggregate, they could reasonabty be expected to influence the economic decisions of users laken on the basis ofthese financial statements. Irregularits'es. including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilikn'es, outlined above, to detect material misslatements in respect of irregularits'es, including fraud. The extent to which our procedures are capable of detectsng irregularilies. including frautl is detailed bel¢)w'. We obtsined an understanding of the charitable company and the sector in which it operates to identify laws and regulabons that could reasonabty be expected to have a direct effect on the finanoal statemenls. We obtained our understanding in this regard through discussions with management. sector searCh and applicats'on of cumulalive audit knowledge and experience. 12
THE PALACE THEATRE WATFORD LIMITED INDEPENDENT AUDITORS, REPORT We delemiined the principal laws and regulations relevant to the charitable company in this regard to be those arising from the Companies Act 2006. Charities Acl 2011, Charitses (Accounts and Reports) Regulats'ons 2008, Financial Reporting Standard 102 and Ihe Charities SORP. We designed our audit procedures to ensure the audrt team considered whether there were any indications of non-complian by the charity wilh those laws and regulations. These procedures included. but were not limrted to enquiries of Trustees. review of minutes and review of legal and regulatory corresponden. We also identffied the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk offraud arising from management override of controls, thal there was a polential for management bias in the recognition of revenue. We addressed this through reviewing revenue in the year foi eviden of enlitlemenl and at the year end to ensure accounted for in the correct period. As in all of our audits. V addressed the risk of fraud ansing from management overrtde of controls by performing audit procedures which included but were not limiled to.. the testing of journals., reviewing accounting estimates for eviden of bias- and evaluabng the business rationale of any significant transactions that are unusual or outside the nomial course of business. Because of the inherent limitations of an audit. there is a risk that we will notdetect all irregularities, including those leading to a material misstatement in the financial statements or non-complian with regulab'on. This risk increases the more that compliance with a law or regulalion is removed from the events and transactions reflected in the financial slaternents, as we will be less likety to become aware of instances of non- compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment, forgery. collusion. omissTron or misrepresentation. A fijrther descriplion of our responsibilities for the audit of the finanaal statements is located on the Financial Reporting Counul's Vb$ite at. vA4w.fr¢.org.uklauditorsresponsibilth'es. This description forms part of our auditorfs report. Use of our report This report is made solety to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's memters those matters we are required to stste to them in an auditorfs report and for no other purpose. To the fvllesl extent Femitted by law. we do nol acpt or assume responsibility to anyone, other Ihan the charrtable company and the charitable company's members as a body. for our audit work, for this report, or for the opinions we have fomed. Alastair Duke (Senior Statutory Auditor) 15 Westferry Circus For and on behalf of PKF Littlejohn LLP Canary Wharf Ststutory Auditor London E14 4HD Date-. 13
THE PALACE THEATRE WATFORD LIMrrED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2022 2022 2022 Unrestricted Restricted funds funds 2022 Total funds 2021 Total funds Incoming Resources Grants receivable and fees Donalions and 9$ Bank interesl Ancillary trading activiti'es Coronavirus Job Retention Scheme 1.143.075 23,094 121 52,451 61.307 1.143,075 30.835 121 52.451 61,307 1.607,000 24,547 1,069 367 388.852 7.741 1.280.048 7.741 1.287.789 2,021,835 Charilable Activities Produdion Participation Other 550.454 27.751 69.609 550.454 27.751 69.609 15.324 11.857 9,639 647.814 647,814 36,820 Total Income 1.927,862 7.741 1,935.603 2,058,655 Expenditure on: Raising funds Charitable Activities Production Participakn"on 395 284 679 1.793 1,826.773 302.117 231,147 2.057,920 37,628 339.745 1.300.398 212,313 Totsl Expenditure 2.129,285 269.059 2.398.344 1,514,504 Net IncomellExpenditure) (201,423) (261.318) {462.741) 544,151 Transfers between funds 13 159.077 1159.077) Total funds brought forward 799.2L)J 5.300,471 6,099,671 5,555,520 Total funds carried foThYard 756.854 4.880.076 5,636.930 6,099,671 All income and expenditure derives from continuing activities. The ststement of financial activities indudes all gains and losses recognised during the year. The Accounting Policies and Notes on pages 17 to 27 forn part of these Financial Statements. 14
THE PALACE THEATRE WATFORD UMtrED (Company Reg5stration numbef 3218719) BALANCE SHEET YEAR ENDED 31 MARCH 2022 2022 2021 Fixed A$5ets Tangible assets Investment5 4.543.682 200 4.709.639 4.543.882 4.7CKJ,839 stock Doblo Cash at bank aThJ tn hand 7.11f 241.800 1.176.196 2.564 217.714 1.313.010 10 1,425,107 1.533.288 Creditors: falm thJev+ithin onè yèar {W2.059) 1143,4561 Net Currtnt Ass•ts 1.093.048 1.389.832 N•t Ass•ts 5.646,930 6,099,671 InconR Funds Restricled Funds 13 4.880,076 5.3Q).471 Unr•str7eled Funts General Oewgnated 250.289 5C6,565 250,792 548.408 12 Total Unr•stricted Funds 756,854 799.200 Total Ch¥iify Funds" 5.646,930 6,099.671 Board on 30 November 2022 and syd its bohaf by: John Hunt Char The AI>x4thry Policies J Noies on pages 17 to 27 fomi pwl ofthe59 Fin(la7 Statements.. 15
THE PALACE THEATRE WATFORD LIMITED STATEMENT OF CASHFLOWS YEAR ENDED 31 MARCH 2022 2022 2021 Cash flow provlded from operating activities (30,367) 837.187 Cash flow from investing activities Payments to acquire tangible fixed assets Interest reCeivae (105,568) 121 (6,5031 1.069 Net cash flow (used in) Investing al¥ll1e5 (105.44n {5,434) Change in cash and cash equivalents in the year (135,814) 831,753 Cash and Cash equivalents at stsrt of year 1,313.010 481,257 Cash and cash equlvalents at end of year 1,177,196 1.313.010 Reconciliation of not income to net cash flow from operating activities Net incomel(expenditure) for year Interest receivable Depreciation of tangible fixed assets {Increase)IOecrease in slock {Increase)IDecrease in debtors Increasel(Decrease) in credito (462,741) (121> 272.525 (4.547) 124,086) 188,603 544.151 {1,069) 315,815 3,643 72.244 <97.597) Net cash flow provided from operating activitles {30.367) 837,187 The Accounting Policies and Notes on pages 17 to 27 fomi part of these Financial Statements. 16
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMEl+lTS YEAR ENDED 31 MARCH 2022 General infonnation and basis of preparation The Palace Theatre Watford Limited is a company limited by guarantee in the United Kingdom. In the event of the charity bein9 wound up. the liability in respect of the guarantee is limited to £1 per member of the charty. The address of the registered office is given in the charity information on page 2 of these financial ststements. The nature of the chanty's operations and principal actlvities are set out in the Report of the Trustees. The charity constitutes a public benefft entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reportlng by Charities.. Statement of Recommended Practi applicable to charits'es preparing th&r accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102), the Financial Repong Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Acl 2006 and UK Generally Accepted practi as it applies from 1 January 2019. The financial statements are prepared on a going concem basis under the historical cost convention, modified to include certain items at fair value. The financial statemenls are prepared in sterjing which is the functional cUrncY of the charity. The significant accounting policies apPld in the preparation of these financial statements are set out bdow. These policies have been consistenuy appl to all years presenled unless otherwise stated. Going Concern It is the opinion of the DireCtornrustees that the use of the going concem basis of accounting is appropriate because.. there are no material uncertainties relating to events or conditlons that may cast signthcant doubl about the ability of the Charitable Company to continue as a going Conrn., • there is reasonable expectation that the Charitable Company has adequate resour5 to continue in operational existence for the foreseeable fvture. Accounting Pollcles 2.1 Funds Unrestricted Designated Funds Refurbishment Depreciats"on Fund costs rdated to small scale repairs and renovations, and the associated depreciation. Future Production and Artistic projects - to hold grant and other monies for use on fvture productions and artistic projects. Building and visitor experien - to hold grant and other monres to cover building contingency expenses and for physical improvements to enhanr£ the visitor expenence. Fapde Renovation Fund - costs related to the renovation of the building fapde and the associated depreciats'on. Lighting Desk Depwialion Fund - the deplation cost of the lighting desk acquired in November 2012. Resilience Projects FurKI- to hold grant and other m¢)nies to tund one-off mldllong tenn impact projects related to the Charitable Company s strategic resilience. Bar Refit DeplatIOn Fund - costs related to the renovation of the Bar I Cafe areas, and the associated depreciation VAT Project Fund fees and other exFenses in relation to a review of the Theatre's historic VAT treatment. and subsequent daim for a refijnd from HMRC 17
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022 Accounting Policies (continued) Restricted Funds Theatre refurt)ishment fund- funds received1CeIV8ts1e specifically for ihe cost of the refurbishment of the Theatre. Catalyst Arts Fund - funds re1Ved1receivab1e spectficalty in relation to the Arts Council England's Catslyst Arts Capacity building and match funding scheme, to support organisations in building their fundraising capacty and capability over a three-year period_ ACE Capital Fund - funding towards capital works to enhance rehearsal facilrties, to impTove energy efficiency and to replace essents'al specialist equipment. New Writing Fund - funding towards investrnent in vKitsng new work. Merchant of Venice - donations re1Ved to supwrt our future production of Shakespeare's The Merchant of Venice (a Creative response to anti-semitism in Britain. set in the London of the 1930s). Arts Council Cultural Recovery Fund - the govemment's Culture Recovery Fund, supporb.ng cultural organisations through the impact ofthe Covi&19 pandemic. Garfield Weston Foundats'on - grant re1ved forn the Weston Cutture Fund to sut4K)rt our Take Part youth and community programmes. Amounts are drawn down against the fund and transferred to Ihe general fund when expenditure is incurred. Fund Transfers Transfers are made between fvnds as and when the Trustees dM them necessary, within the limits of any reslriclions Ihat are in place. 2.2 Incoming Resources Voluntary income including donalions, gifts and grants that provide core funding or are of a general nature are recognised where there is entitlement. probabilrty of receipt and the amount can be measured wrth sufficient reliability. Such income is only deferred where the donor has specffied that the grant or donation must be used in a fvture accounting period. Investment income is recognised on a receivable basis. Income from charilable activities indudes.. income derived from the*rical productions which is accounted for in the period in which the productions tske place" grant income to support education and youth activilies which is recognised where there is entillement. rtaInty of rlpt and the amount can be reliably measured. 2.3 Resources Expended Expenditure is recognised when a liability is incurred. Charitable aciivikn.es include expenditure assoaated with the staging of theatrical productions and participation activibes. These include both the direct costs and support Costs relating to these aclivities. ExFenditure on materials for set. props and costumes are accounted for in the Consolidated Statement of FirTrancial Activities (SOFA) of the period of Ihe production. None of this expenditure is capitalised. as sets are either dis[Sed of, or sold on within the same financial year, or very shortSy after the financial year end. Support costs represent central function costs, governance costs and ovetheads and have been allocated betAeen the activities of productions and participation usjng an apFrti0nMent percentage calculated by comparing the direct costs attributable to each of those categories in the year. 18
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022 Accounting Policies (continued) 2.4 Tangible Fixed Assets Fixed assets (other than those relating to productions - see above) are stated at historical cost. Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down lo its estimated residual value eventy over its expected usefvl Itfe. as follows.. Plant, equipment and machinery Information technology Leasehold improvements Long leasehold property 10Vo - 250/0 straight line 10% - 33°/ty straight line 2.5Vo - 20¥0 51raight line 2.5% stravJht line 2.5 stock Stock is valued at the lower of cost arKI net realisable value, after making due allowan for obsolete or slow moving items. 2.6 Leased assets and obligations All operats'ng lease rentals are charged to the SOFA on a straight line basis over the lease temi. 2.7 New Writing Arrangements These are advance costs inujrred for possible fijbjre Shov where the Charitable Company cornmissions a writer to work on a production which may or may not eventually be produced. The costs are written off to the SOFA in the year in which they are incurred. 2.8 Pensions The Charitable Company operates a defined contrrbution pension scheme and the pension charge represents the amounts payable by the Charitable Company lo the fund in respect of the year. 2.9 Taxation The Charitable Company is exempl from Corporats'on Tax as all of its income is charitable and is applied for charrtable purposes. The Charttable Company is regislered for Value Added Tax (VAT). irrecoverable VAT (where applicable) is included in the cost of Ihose items to which il relates. 19
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022 Net IncomellExpenditure) 2022 2021 This is ststed after Gharging.. Auditors, Muneration Depreciation Operab"ng leases- land and buildings 8,820 272,525 27.000 8,888 315,815 Incoming Resources 2022 2021 Grants Receivable and fees Unrestricted income from-. Arts Council England - grant servi provision fees- Wafford Borough Council Support grant- Watford Borough Council 805.118 231.957 106.000 805,118 238.401 Restrscted income from.. Arts Council England - Cultural Recovery Fund grant Garfield Weston Foundats'on - grant 248,481 315,000 1,143,075 1,607,000 Incoming ReSoUeS from Charitable Activities Production.. Box office income - produced Box office income- co produced Box office income - presented Other produclion income Film sales Hire fees income Front of house sales 268.706 725 151,119 119.406 3.413 240 6,845 921 6.056 24 598 7,725 550,454 15,324 Parts'cipation-. Educational aclivits'es External funding 26.861 890 8.457 3,400 27.751 11.857 Other-. Tax relief Sundry income 45,332 24,277 6,418 3,221 69.609 9,639 Total income from charrtable activities 647,814 36,820 Income from grants receivable and fees was £1.143,075 (2021 £1,607,000) of which £Nil {2021 563.4811 was attributable to reslricted funds and £1.143 075 {2021 £1.043,519} was attributable to unrestricted funds. Income from charitsble activikn'es wa5 £647.814 (2021- £36,820) ofwhich £Nil (2021- £Nil) was attributable to restricted funds and £647.814 (2021- £36.820} was attributable to unrestricted fvnds. 20
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENOED 31 MARCH 2022 Employee Information - Staff Costs 2022 2021 Establishment salaries Establishment social security costs Establishment pension costs Non-establishment salaries Non-establishment s¢xial security costs Nonostablishment pension costs 764,367 74,783 16.749 261,893 4.633 3,817 671.778 59.621 1 S.269 169.897 1.158 1.573 1,126,242 919.2 One employee received emoluments beiween £70.000 and £80.000 (2021- one). The total amount of employee benefits rered by key management personnel, Considered to be the Executive Team. during the year was £176,990 (2021- £177.6). Average Monthly Number of Employees durlng the Year Part-time Casuavseasonal 2022 2021 Establishment Non Establishment 25 25 25 37 Transactions with Dlrectors The Directors of the Charitable Company received no MuneratiOn or reimbursement of expenses in the year (2021- £nil). Total Resources Expended 6.1 Analysis of Charitable Expenditure Dlre ¢osts Support costs Total 2022 Total 2021 Production Participation 811.735 136,879 1,246,185 2.057.920 1.300,398 202,866 339,745 212,313 948,614 1.449,051 2,397,665 1,512,711 Charitable expenditure was £2,397.665 (2021 £1.512.711) of which £268,775 12021 £229,069) was attributable to restricied funds and £2,128.890 (2021 £1.283.642) was attributable to unrestricted funds. 21
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022 Total Resources Expended (continued) 6.2 Analysls of Support Costs Charitable Govemance Activities costs Totsl 2022 Total 2021 Wages Establishment Administration Marketing and box office Depreciation Bank charges and inteiest Legal and accountancy fees Board Audit 794,775 193,307 100.633. 75.660 270.551 794.775 193.307 1LNJ,633 75.660 270,551 2,651 2.462 192 8,820 866.127 92,033 93.047 35,200 299.173 2.372 446 2,651 2,462 192 8,820 8,888 1.434.926 14,125 1,449,051 1.397,286 Support costs are allocated as shown in the table above and then further apportioned beeen the two charitable activities urKlertaken. Support costs are allocated on a basis consistent with the use of resources. Tangible Assets Leasehold improvement projects Plant Long and leasehold Equipment machtnery property Total Cost At 1 April 2021 Additions 407,808 52,454 728,057 54.114 349,984 7,819.178 9.305,027 105,568 At 31 March 2022 460,262 782,171 349.984 7.819.178 9,411.595 Depreclatlon At 1 April 2021 Charge for the year 379,988 28,604 651,824 43,486 339,703 3,223.873 4.595.388 4.956 195,479 272,525 At 31 March 2022 408.592 695.310 344,659 3,419,352 4.867,913 Net Book Value At 31 March 2022 51,670 86,861 5.325 4.399,826 4.543,682 At 31 March 2021 27.820 76.233 10,281 4.595,305 4,709.639 22
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022 8. Investment- subsidiary trading companies 2022 2021 Shares in group undertakings: Cost at 1 April and at 31 March 200 200 The Charitable Company owns 1c0 of the ordinary share capital of The Palace Theatre Watford Productions Limited. which is incorporated in England and Wales. The subsidiary company was dormant during the year. The Charrtable Company owns 100% of the ordinary share capital of The Palace Theatre Wafford Bar Limited, which is incorporated in England and Wales. The Charitable Company has 100 % control over this subsidiary company. This subsidiary company has been domiant from 1 April 2015, but previously operated to provide working capital finan for the charitable parent Charitable Company by covenanting distributable profits to The Palace Theatre Watford Limited. The subsidiary company operated catering facilities at the theatre. 9. Stocks Stock 7.111 2,564 10. Debtors Trade deblo Prepayments and accrued income 8.274 233,526 6.453 211,261 241,800 217,714 11. Creditorn: Amounts falling due within one year Trade creditors Amounts due to subsidiary companies Social securty and other taxes Other ¢dItorS Accruals and deferred income 58.992 200 16,666 19,053 237,148 26.236 200 14,536 22,357 80,127 332,059 143,456 Included in accruals and deferTed income is deferred income of £115.445 (2021 £19,970) which comprises a(fvance tscket sales. £19.970 was released to the SOFA in the year to 31 March 2022 and £115.445 will be released to the SOFA in the year to 31 March 2023. Included in other creditors are defined contribution pension liabilities of £4.183 (2021 £3.078) all of which has been funded by unrestricted funds. 23
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022 12. Unrestricted Designated Funds The income funds of the Charitable Company include the following designated funds which have been sel aside out of unrestriGled funds by the Trustees for specTrfic wr[$.. Balance at 1 Aprll Incoming Outgoing 2021 resources expenditure Balance at 31 March 2022 Transfers General Funds 250.792 1,921,529 (2,123.6091 201.577 250,289 Deslgnated Funds Refurbishment Fund Future Production & Artistic Projects 223,316 Building and Visitor Experience 161,443 Lighting Desk Depreciation 3,803 Resilience Project Fund 133,255 VAT Project Fund 18.725 (1.123) 6,743 (20.000) 209,649 161,443 6.333 (3.803) (22.500) 110,755 17,975 (750) 548.408 6.333 {5.676) (42,500) 506.565 Unrestricted Fund5 799.200 1,927.862 (2.129,285) 159,077 756.854 Balance at 1 Aprll IncomSng Outgoing 2020 resources expenditure Balance at 31 March 2021 Transfers General Funds 250.231 1,493.106 (1.259.387> {233,1591 250,792 Designated Funds Refurbishment Fund 8,989 Future Production & Artistic Projects 136,316 Building and Visitor Experience 74.443 Facade Renovation 14.357 Lighting Desk Depreaab'on 7.604 Resilience Project Fund 40.255 Bar Refit Depreciation Fund 5.831 VAT Project Fund 19,375 {1.123) 7,866 223,316 161,443 87,000 87,Crf)O (14,357} (3,801 } 3,803 133,255 93.000 (5.831) (650) 18,725 307,170 {25.7621 267.C 548.408 Unrestricted Funds 557.402 1.493.106 (1.285.149) 33,841 799,200 A description of the deggnated funds can be found at note 2.1. 24
THE PALACE THEATRE WATFORD LIMITEO NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022 13. Restricted Fund The income funds of the Charitable Company include the foll¢)wing restricted furtds where the donor has specified the purpose for which the fund is to be used: Balance at 1 April Incoming Outgoing 2021 resources expenditure Balance at 31 March 2022 Transfers Theatre Refurbishment Fund 4.595.305 CatslystArts Fund 15.045 Arts Council England cats1 Fund 59.074 New Writing Fund 478 Merchanl of Venice 113.523 Arts Council Cultural Recovery Fund 202.046 Garfeld Weston Foundation 315.000 (195,479) (284) {18,496) 4.399,826 12,972 40.578 478 119,553 (50.000) 97,246 1105.577) 209,423 1.711 {3.500) 6.030 {54,800) 5.300.471 7.741 (269.059) (159.077) 4,880,076 Balance at 1 April Incomlng Outgoing 2020 resources expenditure Balance at 31 March 2021 Transfers Theatre Refurbishment Fund Catalyst Arts Fund Arts Counal England cala1 FurKI New Writing Fund Merchant ofvenice Arts Counal Cultural Recovery Fund Gatheld Weston Foundalion 4.790.784 15.763 77,570 478 113.523 (195.479) (2,786) (18,496) 4,595,305 15,045 59.074 478 113,523 {33,841) 202.046 315.000 2,068 248,481 315,000 (12,594) 4.998.118 565.549 (229.355) (33,841) 5,300.471 A description of the restricted funds can be ft)und at note 2.1. 25
THE PALACE THEATRE WATFORD LIMrrED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022 14. Allocation of Net Assets between Fund5 General Designated Restricted fund fund fund Total 2022 Tangible fed assets Inveslmenls Current assets Currenl liabililies 96,535 200 485,613 (332,059) 6.743 4.440.404 4,543.682 200 439.672 1,425.107 (332.059) 499.822 Net assels 250,289 506.565 4.880.076 5,646.930 General Designated Restricted fund fund fund Total 2021 Tangible fixed assets Investments Current assets Current liabilities 43.591 200 350.457 (143,456) 11.669 4.654.379 4,709,639 200 646.092 1,533,288 (143,456> 536.739 Net assets 250.792 548,408 5,300,471 6.099,671 15. Revenue Commitments The Charitable Company's annual obligation under an operating lease is as follows, analysed according to the dale of the first review of the lease. 2022 2021 Land and Land and Buildings Bulldings Operating lease which expires.. Betsyeen 2 and 5 years 114.500 16. Capital Commitinents There were contracted capital commitrnents at 31 March 2022 (2021- none). 26
THE PALACE THEATRE WATFORD LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022 17. Related Party Relationships and Transactlons During the year, the following TnBtees have b&n connected with organisations that have made payments to the Charitable Cofflpany.. Counrillor Agnieszka Dychton and Councillor Timothy Wlliams - Watford Borough Council - Service provision fees of £231.957 (2021.. £238,401) and further funding of £106.000 {2021- £ nil). DeLrah LInIn- Wamer Bros Intemational- sponsorship £17.500 (2021: £Nil) 27