**Registered number: 03313901 Charity number: 1062353** 

# **BUNGAY ARTS AND THEATRE SOCIETY** 

**(A company limited by guarantee)** 

**UNAUDITED** 

**TRUSTEES' REPORT AND FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 28 FEBRUARY 2023** 



## **BUNGAY ARTS AND THEATRE SOCIETY (A company limited by guarantee)** 

## **CONTENTS** 

||Page|
|---|---|
|**Reference and administrative details of the Company, its Trustees and advisers**|1|
|**Trustees' report**|2 - 6|
|**Independent examiner's report**|7 - 8|
|**Statement of financial activities**|9|
|**Balance sheet**|10 - 11|
|**Notes to the financial statements**|12 - 26|





**BUNGAY ARTS AND THEATRE SOCIETY (A company limited by guarantee)** 

## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

|**Trustees**|P Baker|
|---|---|
||D Bence (appointed 14 February 2023, resigned 10 October 2023)|
||S L Cox|
||D A France|
||J W S Hay (resigned 13 September 2022)|
||P R Holmes|
||N Lubbock (appointed 13 November 2022)|
||J M Putman|
||L R Shackleton (appointed 13 November 2022, resigned 14 January 2023)|
||E Thompson (appointed 13 November 2022, resigned 25 February 2023)|
||N J Usherwood|
||R C Yaxley (appointed 14 February 2023)|
|**Company registered**<br>**number**<br>03313901<br>**Charity registered**<br>**number**<br>1062353<br>**Registered office**<br>10 Broad Street, Bungay<br>Suffolk<br>NR35 1EE<br>**Company secretary**<br>M Laird<br>**Accountants**<br>Larking Gowen LLP<br>Chartered Accountants<br>1st Floor, Prospect House<br>Rouen Road<br>Norwich<br>NR1 1RE||



Page 1 



**BUNGAY ARTS AND THEATRE SOCIETY** 

**(A company limited by guarantee)** 

## **TRUSTEES' REPORT FOR THE YEAR ENDED 28 FEBRUARY 2023** 

The Trustees present their annual report together with the financial statements of the Company for the year 1 March 2022 to 28 February 2023. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). 

Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted. 

## **Objectives and activities** 

## **a. Vision and objectives** 

The original vision of the founding trustees, i.e. to revive the building as a viable arts and theatre centre, has been achieved but the building has now become much more than just a theatre and has developed into an integral part of the community’s fabric. Accordingly, the vision is now to become one of the best arts and theatre centres in its class in the country, with the key objective of providing or assisting in the provision of facilities for the recreational, educational, cultural, artistic or other leisure pursuits in the interest of the social welfare of the inhabitants of Bungay and surrounding communities. To facilitate this, the trustees have identified the following strategic objectives: 

- 1 Maintain and further improve the historic building as a viable arts and theatre centre; 

- 2 Ensure the long-term financial viability of BATS by maximising the usage potential of the building and implementing new initiatives; 

- 3 Provide a wide-ranging artistic programme and opportunities for artistic expression to all members of the community; 

- 4 Actively engage with the local community (individuals, groups and the commercial sector) in developing mutually beneficial relationships; 

- 5 Become a focus in Bungay and its surrounds for first class entertainment, catering and events. 

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. 

## **Achievements and performance** 

## **a. Main achievements of the Company** 

Following the Covid years of 2020-21, 2021-22 saw things gradually get back to normal but 2022-23 witnessed the invasion of Ukraine and the consequent inflationary pressures on business and household incomes. This, naturally, affected income from ticket sales, which had been moving towards pre-pandemic levels, and events. We have been supported by some donors, with one particularly generous donation of £10,000 towards replacement of the auditorium sound system. We were also supported by grants for general purposes from East Suffolk Council and Essex Community Fund and an on-going small grant from Power to Change towards investigating making more efficient use of energy consumption, and how to make changes in a Grade II listed building. 

Page 2 



**BUNGAY ARTS AND THEATRE SOCIETY** 

**(A company limited by guarantee)** 

**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **Achievements and performance (continued)** 

## **b. Management and staffing** 

Following thirteen years of development from theatre assistant to Operations Manager, Cory Minns resigned from the theatre in March having been head-hunted to work at Southwold Pier. It is difficult to overstate the contribution Cory made to the running of the theatre, frequently holding things together during periods of management change and providing a reassuringly stable presence. Whilst all the trustees were disappointed to lose their most experienced manager, they recognised the need for Cory to take on bigger challenges and apply his considerable experience in a different business arena. We wish him every success in the future, wherever that may take him. Unfortunately, the appointment of Ben Blyth as Manager was not so successful and Ben left us to return to Canada, being replaced by Niamh Smyth, who had been recruited to help with front of house operations. Sadly, following a lengthy period of ill health, Niamh resigned in order to go travelling. We are very pleased to say that Niamh has been succeeded by Cathy Gill, a former trustee of the theatre and an experienced stage performer. She has been greatly assisted on a part-time basis by Darren France, who has led the development of the programme, and by Alex Butler who has settled in extremely well as Theatre Assistant. 

## **c. Operations** 

The Covid precautions that were in place to ensure maximum safety for staff and patrons have gradually been relaxed as Covid has become less of health issue. Screens have been removed and operationally things are pretty much back to normal. We are enormously grateful to Trustee Peter Holmes who turns his hand to pretty much any maintenance requirement, as well as providing IT back-up to office staff when needed. 

## **d. Finance** 

Although income from ticket and bar sales has been encouraging, the inflationary cost increases that followed the invasion of Ukraine in early 2022 have adversely affected our bottom line and cash reserves. Contracts have been renegotiated where possible to reduce fixed costs as much as possible but energy costs remain high despite government assistance. The various staff changes that have taken place over the last eighteen months have meant that, although a normal theatre programme has been maintained, we have not been able to rebuild our events side of the business as we would have liked to do. We are currently investigating a range of grant aiders who could finance recruitment of staff to enable the development of a sustainable events business. At the time of writing, we are actively seeking new regular donors via our STARS programme and players for our monthly lottery draw but long-term viability may depend on being successful in one of the three grant bids that have been submitted, which amount in total to £228,140. 

## **e. Volunteers** 

Volunteers are very much at the forefront of our business and their importance to the theatre cannot be overstated. Their numbers fell by nearly half during the Covid period, from c.100 to 50, and it is important that we make efforts to bring their numbers back so that we can continue to supply the services we do. Following suggestions from the remaining volunteers themselves led by Jeni Watson, there are now regular volunteer meetings, to which trustees are invited in order to optimise communications between the board and the volunteers. We are very grateful to Jeni Watson who has co-ordinated the neetings, to Trustee Paul Baker and to Roger Yaxley, who is both a volunteer and a Trustee, and Douglas Bence for all their work in helping to make this process a success. 

Page 3 



## **BUNGAY ARTS AND THEATRE SOCIETY** 

**(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **Financial review** 

## **a. Going concern** 

After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies. 

## **b. Reserves policy** 

It is the charity’s policy to maintain, as far as is possible, sufficient reserves to meet day to day requirements for a period of six months, which is estimated to be £50,000 on a reduced capacity basis. Free reserves are currently below target at £16,343 (2022: £46,773). 

## **c. Investments powers and policy** 

Under the Memorandum of Association, the Trustees have the power to make any investments which have board approval. 

## **d. Principal funding** 

Under normal circumstances the theatre relies on self-generated funds to finance its day-to-day operations. Following the lock-down, during which the principal funding sources were grants which Sandra Cox had diligently pursued, the trustees are looking to rebuild operational income flows. They are conscious that these will need to be supplemented by grant income until the theatre can operate on a normal basis and it able to return to its selffunding principle. 

## **Structure, governance and management** 

## **a. Constitution** 

The charity is controlled by its governing document, a deed of trust, and is a company limited by guarantee, as defined by the Companies Act 2006. At its Annual General Meeting in February 2016 the company adopted new Articles of Association which have been registered with and accepted by the Charity Commission. 

## **b. Methods of appointment or election of Trustees** 

Trustees were originally selected on the basis of their involvement in the formation of the charity. Subsequently Trustees were invited where it was considered that their experience or standing in the community would benefit the charity and its aims. With the adoption of the revised Articles of Association, any member is entitled to be a Trustee, subject to nomination by two members and approval at a General Meeting of the Company. The board may co-opt members as necessary. 

Page 4 



## **BUNGAY ARTS AND THEATRE SOCIETY** 

**(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **Structure, governance and management (continued)** 

## **c. Organisational structure and decision-making policies** 

The Board of Trustees is ultimately accountable for the company’s activities and meets at least once a month in person or virtually to review and discuss strategic and operational issues and finances. The Board delegates authority to the management team who have responsibility to manage the day-to-day issues and the team of volunteers upon which the theatre depends. 

The Operations Manager is responsible for the day-to-day running of the building, staffing and activities and the Programme Manager is responsible for the development and implementation of the theatre’s programme. 

## **d. Policies adopted for the induction and training of Trustees** 

Trustees are expected to know or be briefed on their legal obligations under charity and company law and committee decision-making processes. 

## **e. Risk management** 

The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud or error. 

The Trustees have discussed the requirements of a risk strategy and believe they have adequate methods of monitoring and controlling the financial, statutory, legal and operational risks applicable to the charity. 

## **f. Governance** 

Whilst the management team has responsibility for the day-to-day running of the building and all the activities therein, the Trustee Directors are accountable for the successful operation and financial viability of the business. During the year, John Hay resigned as a trustee following his appointment as partner in a local law firm. We’re very grateful to John for the legal and general advice that he readily shared with the board during his term as a trustee. Five new trustees, Douglas Bence, Nigel Lubbock, Lisa Shackleton, Emma Thompson and Roger Yaxley were appointed trustees, although both Emma and Lisa resigned after a short period due to other personal demands on their time. We are grateful to all of them for their various contributions. 

One major change to the Board has been the recent resignation of John Putman as Acting Chair. John has undertaken this role over the last seven years but is finding it increasingly difficult to give it sufficient time as well as run his successful architectural practice. We’re very grateful that John, who was one of the original ‘famous five’ whose initiative brought the theatre back to life in the early noughties, will continue as a trustee and the board will benefit from the enormous experience he has gained over the last twenty years. We are also grateful to Roger Yaxley who has taken over as Chair on a pro tem basis. 

The board continues to be acutely aware of its responsibilities in respect of compliance, not only with the relevant requirements of the Companies Act and the Charities Commission, but also child protection, health and safety, equal opportunities and data protection. 

Page 5 



8UNGAY ARTS AND THEATRE SOCIE
{A ¢ompany litt#ted by yuaran￿?
TrUSTEES' REPORT {CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
Statement of Trustees. responsibilities
The Trustees (wh) are also the direct(Ks of the Company for the purwses of company l&v} are responsible for
preparing the Trustees. report and the finartial statements in accord￿￿ with applicable law and Unrted
Kingdom ACCO￿1¢ng Staryjards (unrt￿J KlrwJj￿ CA￿allY Accepted A(￿unting Practicel.
Company law requires the Trustees to wepare finarmial statements for each financial year. Under company law,
the Trustees musl not apr￿0ve the financi81 statements unless they are satisfied that they give a true and fair
view of s18te of affairs of the Company and of ils ir￿ming resources and apPI￿110n of res(yJrces, including
its incc￿ne and exF*ndrture, for that period. In preparing these finarrial statements, the Trustees are reqUI￿d to..
select suitable accounting policies and then apply them c4)nsist￿tly.
observe the fflethods and priwples of the Chanties SORP {FRS 1021.,
make judgments and acco￿lIng estimates that we reasonable and PnMI￿1l.
slate whether applieable UK Aetounliro Slandards IFRS 1(Y21 have been follow￿, su4.￿1 to any material
departures disclosed and explained in IPE financial slalemenls.,
prepare the finanaal statements on the wing (￿cern basis unless it i8 inapFYopriale to presume that the
Company will continue in tMJslr￿5$.
The Trustees are reswnsible for keeping adequate &counting r￿OrdS that *e sufficient to show and explain
the Companls IransaclM)ns and disdose with reasonable accuracy at any lime the financial pos11ion of the
Company and enable them lo ensure that the finan￿al slalemenls compty with the Companies Act 20C6. They
are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the
prevention and detectic￿ of fraud arKY other irrewlarilies.
Approved
the members
Trustees
on
IL th 2£)'L
and signed on their ￿half by.
axle
(Chair of
tuslees)
Page 6

**BUNGAY ARTS AND THEATRE SOCIETY (A company limited by guarantee)** 

**INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **Independent examiner's report to the Trustees of Bungay Arts and Theatre Society ('the Company')** 

I report to the charity Trustees on my examination of the accounts of the Company for the year ended 28 February 2023. 

## **Responsibilities and basis of report** 

As the Trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). 

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. 

## **Independent examiner's statement** 

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 

1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 

2. the accounts do not accord with those records; or 

3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or 

4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. 

I have identified one matter in connection with my examination to which attention is drawn in order to enable a proper understanding of the accounts. As described in note 2.2. there is material uncertainty over the future income of the charity as a result of significant pressure from future cost increases as a result of current economic environment. 

The charity trustees have considered the going concern status of the charity, measures taken to stabilise the position and the cash resources available and committed at the date of approval of the financial statements and have concluded that these should be prepared on a going concern basis. The financial statements do not include any of the adjustments that would result if the company was unable to continue as a going concern. 

There are no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding to be reached. 

Page 7 



**BUNGAY ARTS AND THEATRE SOCIETY (A company limited by guarantee)** 

## **INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2023** 

This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report. 


Signed: 

Julie Grimmer 

Dated: `27 November 2023` 

FCA DChA 

Larking Gowen LLP Chartered Accountants 1st Floor Prospect House Rouen Road Norwich NR1 1RE 

Page 8 



**BUNGAY ARTS AND THEATRE SOCIETY (A company limited by guarantee)** 

## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 28 FEBRUARY 2023** 

|**Note**<br>**Income from:**<br>Donations and legacies<br>3<br>Charitable activities<br>4<br>Other trading activities<br>5<br>Investments<br>6<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>7<br>Charitable activities<br>**Total expenditure**<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>Net movement in funds<br>**Total funds carried forward**|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>**5,613**<br>**-**<br>**-**<br>**-**<br>**5,613**<br>**-**<br>**1,733**<br>**1,733**<br>**3,880**<br>**2,209**<br>**3,880**<br>**6,089**|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>**28,595**<br>**134,824**<br>**49,518**<br>**57**<br>**212,994**<br>**67,589**<br>**191,010**<br>**258,599**<br>**(45,605)**<br>**550,813**<br>**(45,605)**<br>**505,208**|**Total**<br>**funds**<br>**2023**<br>**£**<br>**34,208**<br>**134,824**<br>**49,518**<br>**57**<br>**218,607**<br>**67,589**<br>**192,743**<br>**260,332**<br>**(41,725)**<br>**553,022**<br>**(41,725)**<br>**511,297**|_Total_<br>_funds_<br>_2022_<br>_£_<br>_30,837_<br>_73,101_<br>_20,759_<br>_5_<br>_124,702_<br>_58,101_<br>_133,784_<br>_191,885_<br>_(67,183)_<br>_620,205_<br>_(67,183)_<br>_553,022_|
|---|---|---|---|---|



The Statement of financial activities includes all gains and losses recognised in the year. 

The notes on pages 12 to 26 form part of these financial statements. 

Page 9 



**(A company limited by guarantee) REGISTERED NUMBER: 03313901** 

## **BUNGAY ARTS AND THEATRE SOCIETY** 

## **BALANCE SHEET AS AT 28 FEBRUARY 2023** 

|**Note**<br>**Fixed assets**<br>Tangible assets<br>12<br>**Current assets**<br>Stocks<br>13<br>Debtors<br>14<br>Cash at bank and in hand<br>Creditors: amounts falling due within one<br>year<br>15<br>**Net current assets**<br>**Total assets less current liabilities**<br>**Net assets excluding pension asset**<br>**Total net assets**<br>**Charity funds**<br>Restricted funds<br>16<br>Unrestricted funds<br>16<br>**Total funds**|**3,619**<br>**8,792**<br>**40,520**<br>**52,931**<br>**(30,499)**|**2023**<br>**£**<br>**488,865**<br>**488,865**<br>**22,432**<br>**511,297**<br>**511,297**<br>**511,297**<br>**6,089**<br>**505,208**<br>**511,297**|_3,769_<br>_1,091_<br>_76,402_<br>_81,262_<br>_(32,280)_|_2022_<br>_£_<br>_504,040_|
|---|---|---|---|---|
|||||_504,040_<br>_48,982_|
|||||_553,022_|
|||||_553,022_|
||||||
|||||_553,022_|
|||||_2,209_<br>_550,813_|
||||||
|||||_553,022_|



Page 10 



BUNGAY ARTS AND THEATRE SOCIETY
IA company limiled by guarantee)
REGISTERED NUMBER: 03313￿)1
BALANCE SHEET (CONTINUED)
AS AT 28 FEBRUARY 2023
The Company was entided to exemption from a￿￿11 un(Jer sedion 477 of the Companies Act 2(￿.
The members have not required the company to obta#i an audrt for the in question in accordance with
seclw 476 of Companies A¢X 2CMA.
The Trustees ackrThledge their resp)nsibilities for complyirg with the requirements of the Aet with respect to
accounting records and Prep￿allOn of financial statements.
The financial slalemenls have b*n wepared in 8cwdance with provisions applicable lo entities subject lo
the small companies regime.
The
inancial statements were approved aulh)rised for issue by the Trustees on
and sKJned on their tEhatf by.
xley
(Chair of T
staes)
The notes on pages 12 to 26 form part crf Ihese financ￿ statements.
Pa9e11

**BUNGAY ARTS AND THEATRE SOCIETY (A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **1. General information** 

The company is a company limited by guarantee (company no. 03313901, registered Engaland & Wales). The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company. 

The registered office is 10 Broad Street, Bungay, Suffolk, NR35 1EE. 

## **2. Accounting policies** 

## **2.1 Basis of preparation of financial statements** 

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

Bungay Arts and Theatre Society meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 

## **2.2 Going concern** 

Although income from ticket and bar sales has been encouraging, the inflationary cost increases that followed the invasion of Ukraine in early 2022 have adversely affected our bottom line and cash reserves. Contracts have been renegotiated where possible to reduce fixed costs as much as possible but energy costs remain high despite government assistance. The various staff changes that have taken place over the last eighteen months have meant that, although a normal theatre programme has been maintained, we have not been able to rebuild our events side of the business as we would have liked to do. 

In the year to 28 February 2023 we recorded a deficit of £41,725 with free reserves reduced to £16,343 at 28 February 2023 from £46,773 at the prevous year end. We are currently investigating a range of grant aiders who could finance recruitment of staff to enable the development of a sustainable events business. At the time of writing, we are actively seeking new regular donors via our STARS programme and players for our monthly lottery draw but long-term viability may depend on being successful in one of the three grant bids that have been submitted, which amount in total to £228,140. 

On the basis of this cash flow information and the actual trading results in the current year, the trustees consider it appropriate to prepare the financial statements on a going concern basis. 

Page 12 



**BUNGAY ARTS AND THEATRE SOCIETY** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **2. Accounting policies (continued)** 

## **2.3 Income** 

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. 

Income is recognised on ticket sales once the performance has taken place, until the performance any income is deferred. 

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. 

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. 

## **2.4 Expenditure** 

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. 

Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. 

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs. 

All expenditure is inclusive of irrecoverable VAT. 

## **2.5 Interest receivable** 

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 

Page 13 



**BUNGAY ARTS AND THEATRE SOCIETY (A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **2. Accounting policies (continued)** 

## **2.6 Tangible fixed assets and depreciation** 

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. 

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. 

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. 

Depreciation is provided on the following basis: 

|Freehold property|-|2% straight line|
|---|---|---|
|Property restoration and|-|2% straight line|
|rennovation|||
|Plant and machinery|-|3% straight line|
|Fixtures and fittings|-|15% reducing balance|



## **2.7 Stocks** 

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. 

## **2.8 Debtors** 

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 

## **2.9 Cash at bank and in hand** 

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 

Page 14 



**BUNGAY ARTS AND THEATRE SOCIETY (A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **2. Accounting policies (continued)** 

## **2.10 Liabilities and provisions** 

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. 

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost. 

## **2.11 Financial instruments** 

The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 

## **2.12 Pensions** 

The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year. 

## **2.13 Fund accounting** 

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 

Investment income, gains and losses are allocated to the appropriate fund. 

Page 15 



**(A company limited by guarantee)** 

## **BUNGAY ARTS AND THEATRE SOCIETY** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **3. Income from donations and legacies** 

|Donations<br>Grants<br>Government grants<br>_Total 2022_|**Restricted**<br>**funds**<br>**2023**<br>**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>**£**<br>-<br>23,595<br>5,613<br>5,000<br>-<br>-<br>5,613<br>28,595<br>_-_<br>_30,837_|**Total**<br>**funds**<br>**2023**<br>**£**<br>**23,595**<br>**10,613**<br>**-**<br>**34,208**<br>_30,837_|_Total_<br>_funds_<br>_2022_<br>_£_<br>_6,216_<br>_22,371_<br>_2,250_|
|---|---|---|---|
||||_30,837_|
|||||



## **4. Income from charitable activities** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Admissions and theatre hire<br>128,467<br>Hire of premises - Bar<br>6,357<br>134,824<br>_Total 2022_<br>_73,101_|**Total**<br>**funds**<br>**2023**<br>**£**<br>**128,467**<br>**6,357**<br>**134,824**<br>_73,101_|_Total_<br>_funds_<br>_2022_<br>_£_<br>_69,976_<br>_3,125_|
|---|---|---|
|||_73,101_|
||||



Page 16 



**BUNGAY ARTS AND THEATRE SOCIETY** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **5. Income from other trading activities** 

## **Income from fundraising events** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Other incoming resources<br>1,853<br>_Total 2022_<br>_3,957_<br>**Income from non charitable trading activities**<br>**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Cafe, bar and restaurant<br>44,328<br>Lottery<br>3,337<br>47,665<br>_Total 2022_<br>_16,802_<br>**Investment income**<br>**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Deposit account interest<br>57<br>_Total 2022_<br>_5_|**Total**<br>**funds**<br>**2023**<br>**£**<br>**1,853**<br>_3,957_<br>**Total**<br>**funds**<br>**2023**<br>**£**<br>**44,328**<br>**3,337**<br>**47,665**<br>_16,802_<br>**Total**<br>**funds**<br>**2023**<br>**£**<br>**57**<br>_5_|_Total_<br>_funds_<br>_2022_<br>_£_<br>_3,957_|
|---|---|---|
|||_Total_<br>_funds_<br>_2022_<br>_£_<br>_13,459_<br>_3,343_|
|||_16,802_|
|||_Total_<br>_funds_<br>_2022_<br>_£_<br>_5_|
||||



## **6. Investment income** 

Page 17 



**BUNGAY ARTS AND THEATRE SOCIETY** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **7. Expenditure on raising funds** 

## **Fundraising trading expenses** 

|Licences and royalties<br>Purchases<br>Lottery prizes<br>Hire of equipment<br>Repairs and security<br>Sundry<br>Power to Change costs<br>Waste disposal<br>Cardnet charges<br>Staff costs<br>Pension costs<br>_Total 2022_|**Restricted**<br>**funds**<br>**2023**<br>**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>**£**<br>-<br>1,575<br>-<br>22,434<br>-<br>3,000<br>-<br>5,306<br>-<br>5,544<br>-<br>955<br>-<br>-<br>-<br>2,853<br>-<br>2,480<br>-<br>21,487<br>-<br>1,955<br>-<br>67,589<br>_3,225_<br>_54,876_|**Total**<br>**funds**<br>**2023**<br>**£**<br>**1,575**<br>**22,434**<br>**3,000**<br>**5,306**<br>**5,544**<br>**955**<br>**-**<br>**2,853**<br>**2,480**<br>**21,487**<br>**1,955**<br>**67,589**<br>_58,101_|_Total_<br>_funds_<br>_2022_<br>_£_<br>_-_<br>_12,361_<br>_3,000_<br>_2,798_<br>_4,147_<br>_690_<br>_3,225_<br>_3,043_<br>_1,242_<br>_24,999_<br>_2,596_|
|---|---|---|---|
||||_58,101_|
|||||



Page 18 



**(A company limited by guarantee)** 

## **BUNGAY ARTS AND THEATRE SOCIETY** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **8. Analysis of expenditure by activities** 

|Charitable activities<br>Governance<br>_Total 2022_<br>**Analysis of direct costs**<br>Depreciation<br>Theatre and other events<br>Sundries<br>Advertising<br>Light and heat<br>Telephone<br>Insurance<br>Rates and water<br>Computer software<br>Donations<br>_Total 2022_|**Activities**<br>**undertaken**<br>**directly**<br>**2023**<br>**£**<br>143,761<br>-<br>143,761<br>_84,364_|**Support**<br>**costs**<br>**2023**<br>**£**<br>42,076<br>6,906<br>48,982<br>_49,420_<br>**Activities**<br>**2023**<br>**£**<br>22,929<br>95,436<br>628<br>3,053<br>10,319<br>1,394<br>3,795<br>830<br>3,075<br>2,302<br>143,761<br>_84,364_|**Total**<br>**funds**<br>**2023**<br>**£**<br>**185,837**<br>**6,906**<br>**192,743**<br>_133,784_<br>**Total**<br>**funds**<br>**2023**<br>**£**<br>**22,929**<br>**95,436**<br>**628**<br>**3,053**<br>**10,319**<br>**1,394**<br>**3,795**<br>**830**<br>**3,075**<br>**2,302**<br>**143,761**<br>_84,364_|_Total_<br>_funds_<br>_2022_<br>_£_<br>_130,066_<br>_3,718_|
|---|---|---|---|---|
|||||_133,784_|
|||||_Total_<br>_funds_<br>_2022_<br>_£_<br>_24,671_<br>_37,705_<br>_1,228_<br>_2,812_<br>_6,556_<br>_1,558_<br>_3,514_<br>_1,292_<br>_4,828_<br>_200_|
|||||_84,364_|
||||||



Page 19 



**BUNGAY ARTS AND THEATRE SOCIETY** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **8. Analysis of expenditure by activities (continued)** 

## **Analysis of support costs** 

|**Activities**<br>**2023**<br>**Governance**<br>**2023**<br>**£**<br>**£**<br>Staff costs<br>41,931<br>-<br>Recruitment and DBS<br>-<br>-<br>Other staff expenses<br>25<br>-<br>COVID related expenditure<br>120<br>-<br>Legal fees<br>-<br>600<br>Accountancy<br>-<br>5,445<br>Consultancy<br>-<br>400<br>Bank charges<br>-<br>461<br>42,076<br>6,906<br>_Total 2022_<br>_45,702_<br>_3,718_<br>**9.**<br>**Independent examiner's remuneration**<br>Fees payable to the Company's independent examiner for the independent<br>examination of the Company's annual accounts<br>**10.**<br>**Staff costs**<br>Wages and salaries<br>Contribution to defined contribution pension schemes|**Total**<br>**funds**<br>**2023**<br>**£**<br>**41,931**<br>**-**<br>**25**<br>**120**<br>**600**<br>**5,445**<br>**400**<br>**461**<br>**48,982**<br>_49,420_<br>**2023**<br>**£**<br>**2,865**<br>**2023**<br>**£**<br>**63,418**<br>**1,955**<br>**65,373**|_Total_<br>_funds_<br>_2022_<br>_£_<br>_33,776_<br>_3,500_<br>_160_<br>_8,266_<br>_-_<br>_3,263_<br>_160_<br>_295_|
|---|---|---|
|||_49,420_|
|||_2022_<br>_£_<br>_2,650_|
|||_2022_<br>_£_<br>_58,775_<br>_2,596_|
||||
|||_61,371_|



Page 20 



**BUNGAY ARTS AND THEATRE SOCIETY (A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **10. Staff costs (continued)** 

The average number of persons employed by the Company during the year was as follows: 

||**2023**|_2022_|
|---|---|---|
||**No.**|_No._|
|Staff|**3**|_4_|



No employee received remuneration amounting to more than £60,000 in either year. 

The key management personnel of the charity are the Trustees, treasurer and the management team. The pay and benefits of the management team during the year were £33,427 (2022: £36,172). 

## **11. Trustees' remuneration and expenses** 

During the year, no Trustees received any remuneration or other benefits _(2022 - £NIL)_ in connection with their role as a Trustee. During the year, one trustee received £3,195 (2022: £NIL) as payment for provision of work done for the charity. 

During the year ended 28 February 2023, no Trustee expenses have been incurred _(2022 - £NIL)_ . 

## **12. Tangible fixed assets** 

|**Cost or valuation**<br>At 1 March 2022<br>Additions<br>Disposals<br>At 28 February 2023<br>**Depreciation**<br>At 1 March 2022<br>Charge for the year<br>At 28 February 2023|**Freehold**<br>**property**<br>**£**<br>**185,250**<br>**-**<br>**-**<br>**185,250**<br>**57,286**<br>**3,242**<br>**60,528**|**Property**<br>**renovations**<br>**£**<br>**649,876**<br>**-**<br>**-**<br>**649,876**<br>**338,869**<br>**12,997**<br>**351,866**|**Plant and**<br>**machinery**<br>**£**<br>**30,277**<br>**-**<br>**-**<br>**30,277**<br>**2,018**<br>**1,008**<br>**3,026**|**Fixtures and**<br>**fittings**<br>**£**<br>**132,175**<br>**8,020**<br>**(267)**<br>**139,928**<br>**95,365**<br>**5,681**<br>**101,046**|**Total**<br>**£**<br>**997,578**<br>**8,020**<br>**(267)**|
|---|---|---|---|---|---|
||||||**1,005,331**|
||||||**493,538**<br>**22,928**|
||||||**516,466**|



Page 21 



## **BUNGAY ARTS AND THEATRE SOCIETY** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **12. Tangible fixed assets (continued)** 

|**Freehold**<br>**property**<br>**£**<br>**Net book value**<br>At 28 February 2023<br>**124,722**<br>_At 28 February 2022_<br>_127,964_<br>**13.**<br>**Stocks**<br>Goods for resale<br>**14.**<br>**Debtors**<br>**Due within one year**<br>Trade debtors<br>Other debtors<br>**15.**<br>**Creditors: Amounts falling due within one**<br>Trade creditors<br>Other taxation and social security<br>Other creditors<br>Accruals and deferred income|**Property**<br>**renovations**<br>**£**<br>**298,010**<br>_311,007_<br>**year**|**Plant and**<br>**machinery**<br>**£**<br>**27,251**<br>_28,259_|**Fixtures and**<br>**fittings**<br>**£**<br>**38,882**<br>_36,810_<br>**2023**<br>**£**<br>**3,619**<br>**2023**<br>**£**<br>**8,792**<br>**-**<br>**8,792**<br>**2023**<br>**£**<br>**4,024**<br>**2,829**<br>**1,015**<br>**22,631**<br>**30,499**|**Total**<br>**£**<br>**488,865**|
|---|---|---|---|---|
|||||_504,040_|
|||||_2022_<br>_£_<br>_3,769_|
|||||_2022_<br>_£_<br>_464_<br>_627_|
||||||
|||||_1,091_|
|||||_2022_<br>_£_<br>_6,342_<br>_2,492_<br>_2,144_<br>_21,302_|
||||||
|||||_32,280_|



Page 22 



**BUNGAY ARTS AND THEATRE SOCIETY** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **16. Statement of funds** 

## **Statement of funds - current year** 

|**Unrestricted funds**<br>General Funds<br>**Restricted funds**<br>Power to Change - COVID<br>support<br>Power to Change - Feasibility<br>Power to Change - Capacity<br>development and<br>environmental sustainability<br>Kids Fest<br>ACE Platinum Jubillee<br>celebrations<br>**Total of funds**|**Balance at 1**<br>**March 2022**<br>**£**<br>**550,813**<br>**2,188**<br>**21**<br>**-**<br>**-**<br>**-**<br>**2,209**<br>**553,022**|**Income**<br>**£**<br>**212,994**<br>**-**<br>**-**<br>**4,000**<br>**938**<br>**675**<br>**5,613**<br>**218,607**|**Expenditure**<br>**£**<br>**(258,599)**<br>**(120)**<br>**-**<br>**-**<br>**(938)**<br>**(675)**<br>**(1,733)**<br>**(260,332)**|**Transfers**<br>**in/out**<br>**£**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**|**Balance at**<br>**28 February**<br>**2023**<br>**£**<br>**505,208**|
|---|---|---|---|---|---|
||||||**2,068**<br>**21**<br>**4,000**<br>**-**<br>**-**|
||||||**6,089**|
||||||**511,297**|



The Power to Change - COVID support and Feasibility funds have small balances remaining and it is unlikely any further expenditure will arise from these projects. Therefore the Charity is enquiring with the funder if these funds could be utilised elsewhere within the charity. 

Page 23 



**BUNGAY ARTS AND THEATRE SOCIETY** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **16. Statement of funds (continued)** 

|**Statement of funds - prior year**<br>_Balance at_<br>_1 March_<br>_2021_<br>_£_<br>**Unrestricted funds**<br>General Funds<br>_593,360_<br>**Restricted funds**<br>Power to Change - COVID<br>support<br>_23,599_<br>Power to Change - Feasibility<br>_3,246_<br>Power to Change - Capacity<br>development and<br>environmental sustainability<br>_-_<br>Kids Fest<br>_-_<br>ACE Platinum Jubillee<br>celebrations<br>_-_<br>_26,845_<br>**Total of funds**<br>_620,205_<br>**Summary of funds**<br>**Summary of funds - current year**<br> <br>General funds<br>Restricted funds|_Income_<br>_£_<br>_124,702_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_<br>_124,702_<br>**Balance at 1**<br>**March 2022**<br>**£**<br>**550,813**<br>**2,209**<br>**553,022**|_Expenditure_<br>_£_<br>_(180,394)_<br>_(8,266)_<br>_(3,225)_<br>_-_<br>_-_<br>_-_<br>_(11,491)_<br>_(191,885)_<br>**Income**<br>**£**<br>**212,994**<br>**5,613**<br>**218,607**|_Transfers_<br>_in/out_<br>_£_<br>_13,145_<br>_(13,145)_<br>_-_<br>_-_<br>_-_<br>_-_<br>_(13,145)_<br>_-_<br>**Expenditure**<br>**£**<br>**(258,599)**<br>**(1,733)**<br>**(260,332)**|_Balance at_<br>_28 February_<br>_2022_<br>_£_<br>_550,813_|
|---|---|---|---|---|
|||||_2,188_<br>_21_<br>_-_<br>_-_<br>_-_|
|||||_2,209_|
|||||_553,022_|
|||||**Balance at**<br>**28 February**<br>**2023**<br>**£**<br>**505,208**<br>**6,089**|
|||||**511,297**|



|**17.**|**Summary of funds**|
|---|---|
||**Summary of funds - current year**|



Page 24 



**(A company limited by guarantee)** 

## **BUNGAY ARTS AND THEATRE SOCIETY** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **17. Summary of funds (continued)** 

## **Summary of funds - prior year** 

|General funds<br>Restricted funds|_Balance at_<br>_1 March_<br>_2021_<br>_£_<br>_593,360_<br>_26,845_<br>_620,205_|_Income_<br>_£_<br>_124,702_<br>_-_<br>_124,702_|_Expenditure_<br>_£_<br>_(180,394)_<br>_(11,491)_<br>_(191,885)_|_Transfers_<br>_in/out_<br>_£_<br>_13,145_<br>_(13,145)_<br>_-_|_Balance at_<br>_28 February_<br>_2022_<br>_£_<br>_550,813_<br>_2,209_|
|---|---|---|---|---|---|
||||||_553,022_|



## **18. Analysis of net assets between funds** 

## **Analysis of net assets between funds - current year** 

|Tangible fixed assets<br>Current assets<br>Creditors due within one year<br>**Total**|**Restricted**<br>**funds**<br>**2023**<br>**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>**£**<br>-<br>488,865<br>6,089<br>46,842<br>-<br>(30,499)<br>6,089<br>505,208|**Total**<br>**funds**<br>**2023**<br>**£**<br>**488,865**<br>**52,931**<br>**(30,499)**|
|---|---|---|
|||**511,297**|



## **Analysis of net assets between funds - prior year** 

|Tangible fixed assets<br>Current assets<br>Creditors due within one year<br>**Total**|_Restricted_<br>_funds_<br>_2022_<br>_£_<br>_-_<br>_2,209_<br>_-_<br>_2,209_|_Unrestricted_<br>_funds_<br>_2022_<br>_£_<br>_504,040_<br>_79,053_<br>_(32,280)_<br>_550,813_|_Total_<br>_funds_<br>_2022_<br>_£_<br>_504,040_<br>_81,262_<br>_(32,280)_|
|---|---|---|---|
||||_553,022_|



Page 25 



## **BUNGAY ARTS AND THEATRE SOCIETY** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023** 

## **19. Pension commitments** 

The total pension contributions for the year were £1,955 (2022: £2,596). There were no amounts unpaid at the year end. 

## **20. Related party transactions** 

The Company has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the Company at 28 February 2023. 

Page 26