REGISTERED COMPANY NUMBER: 03468735 (England and Wales) REGISTERED CHARITY NUMBER: 1066819
Trustees' Report and
Unaudited Financial Statements for the Year Ended 31st March 2022
for
King's Lynn Festival Limited
Stephenson Smart (East Anglia) Limited Chartered accountants 22-26 King Street King's Lynn Norfolk PE30 1HJ
King's Lynn Festival Limited
Contents of the Financial Statements for the Year Ended 31st March 2022
| Page | |
|---|---|
| Trustees' Report | 1 to 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 to 8 |
| Cash Flow Statement | 9 |
| Notes to the Cash Flow Statement | 10 |
| Notes to the Financial Statements | 11 to 18 |
King's Lynn Festival Limited (Registered number: 03468735)
Trustees' Report for the Year Ended 31st March 2022
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st March 2022. The trustees have adopted the provisions of 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).
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King's Lynn Festival Limited (Registered number: 03468735)
Trustees' Report
for the Year Ended 31st March 2022
Objectives and activities
The principal objects of the company are:-
To promote, maintain, improve and advance public education, appreciation and understanding in its broadest sense through the arts, particularly by the formulation, preparation, establishment and production of educational plays, festivals and productions, in particular the King's Lynn Festival of Music and the Arts.
We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.
Achievements and performance
Audiences for music were permitted from April 2021, as the nation emerged from Covid-19, and distancing regulations ended as the 2021 Festival began. The Board felt that the financial risk had to be taken, and the July fortnight was filled with smaller events in airy and historic churches; the delayed 70th Anniversary exhibition also featured the life and variety of past King's Lynn Festivals.
The musicians and audiences were enthusiastic, but attendance and income was about 10% below our financial targets. An already-planned Autumn programme with 13 events included several of the larger ones normally in July, in the expectation of rising public enthusiasm (and supported by government grants). However a cautious local audience was not boosted by those from further afield, and attendances were at least 25% below what we hoped. Whilst government gave financial support and suggested a return to normality, the Arts sector nationwide has experienced a long-running decline in income. This was bound to influence the Festival's approach to the programme in 2022.
Financial review
The results for the year, and the Charity's financial position at the end of the year are shown in the attached financial statements.
Reserves
The charity defines its reserves as the value of those assets over and above those which are required for it to meet its current commitments and planned expenditure. Trustees aim to have sufficient reserves to enable the charity to meet its financial objectives for one year.
Risk review
The trustees met regularly during the year, partly via Zoom. Major risks are always discussed at these meetings and the
systems that are in place to mitigate those risks examined. The trustees consider the lack of a secure income base, to be the most significant risk and continue to take all possible steps to ensure that this is mitigated.
Investment policy
The Trustees Investment policy is to maximise returns on the cash balances held, having due regard to risk.
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King's Lynn Festival Limited (Registered number: 03468735)
Trustees' Report for the Year Ended 31st March 2022
Plans for future periods
In 2022 the Festival has experimented with an April weekend of Early Music. The July Festival was programmed for a normal full range of events and venues, with coffee concerts and lectures in the autumn and spring. The trustees are considering how best to broaden the Festival's appeal, with a wider range of performance, partnerships to reach school audiences, and development events in the larger nearby villages. However, there is also a need to develop a more stable funding platform and more business sponsorship. The Borough Council has adopted a major project to reinvest in the St George's Guildhall complex, which will affect the availability of the hall and spaces in 2024-25, and is likely to relocate the Festival office.
Structure, governance and management Governing document
The organisation is a charitable company limited by guarantee, incorporated on 14 November 1997.
The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association
Recruitment and appointment of new trustees
The nomination and appointment of trustees is made by existing Trustees and Company Members. Appropriate induction and training is given to trustees when appointed.
Reference and administrative details
Registered Company number 03468735 (England and Wales)
Registered Charity number
1066819
Registered office
11 New Conduit Street King's Lynn Norfolk PE30 1DG
Trustees
Mrs S Cliffe (appointed 21.7.2021) Mr D P Collingham Mrs A J Croose (Chair) Mr A G Parker Mr A J Williams Mr T A Thomas (appointed 6.10.2022) Mr R G W Anderson (appointed 6.10.2022)
Company Secretary
Mr A J Williams
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King's Lynn Festival Limited (Registered number: 03468735)
Trustees' Report
for the Year Ended 31st March 2022
Reference and administrative details Independent Examiner Claire Melton FCCA TEP Stephenson Smart (East Anglia) Limited Chartered accountants 22-26 King Street King's Lynn Norfolk PE30 1HJ
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 3rd November 2022 and signed on its behalf by:
Mrs A J Croose - Trustee
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Independent Examiner's Report to the Trustees of King's Lynn Festival Limited
Independent examiner's report to the trustees of King's Lynn Festival Limited ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st March 2022.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
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
-
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 no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Claire Melton FCCA TEP Stephenson Smart (East Anglia) Limited Chartered accountants 22-26 King Street King's Lynn Norfolk PE30 1HJ
3rd November 2022
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King's Lynn Festival Limited
Statement of Financial Activities for the Year Ended 31st March 2022
| Year ended 31.3.22 Unrestricted Restricted Total fund fund funds Notes £ £ £ Income and endowments from Donations and legacies 2 174,363 - 174,363 Charitable activities Festival activities 61,580 - 61,580 Investment income 3 21 2 23 Total 235,964 2 235,966 Expenditure on Raising funds 5 14,857 - 14,857 Charitable activities 6 Festival activities 191,814 - 191,814 Total 206,671 - 206,671 NET INCOME/(EXPENDITURE) 29,293 2 29,295 Reconciliation of funds Total funds brought forward 16,579 21,534 38,113 Total funds carried forward 45,872 21,536 67,408 |
Period 1.9.20 to 31.3.21 Total funds £ 23,617 146 10 23,773 - 40,549 40,549 (16,776) 54,889 38,113 |
|---|---|
The notes form part of these financial statements
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King's Lynn Festival Limited (Registered number: 03468735)
Balance Sheet
31st March 2022
| Unrestricted Restricted fund fund Notes £ £ Fixed assets Tangible assets 12 1,969 - Current assets Debtors 13 1,310 - Cash at bank and in hand 161,749 21,536 163,059 21,536 Creditors Amounts falling due within one year 14 (50,806) - Net current assets 112,253 21,536 Total assets less current liabilities 114,222 21,536 Provisions for liabilities 15 (68,350) - NET ASSETS 45,872 21,536 Funds 16 Unrestricted funds Restricted funds Total funds |
2022 Total funds £ 1,969 1,310 183,285 184,595 (50,806) 133,789 135,758 (68,350) 67,408 45,872 21,536 67,408 |
2021 Total funds £ 836 1,371 165,088 166,459 (60,832) 105,627 106,463 (68,350) 38,113 16,579 21,534 38,113 |
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st March 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31st March 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
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King's Lynn Festival Limited (Registered number: 03468735)
Balance Sheet - continued
31st March 2022
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 3rd November 2022 and were signed on its behalf by:
Mrs A J Croose - Trustee
Mr A J Williams - Trustee
The notes form part of these financial statements
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King's Lynn Festival Limited
Cash Flow Statement
for the Year Ended 31st March 2022
| Year ended 31.3.22 Notes £ Cash flows from operating activities Cash generated from operations 1 19,980 Interest paid (17) Net cash provided by/(used in) operating activities 19,963 Cash flows from investing activities Purchase of tangible fixed assets (1,789) Interest received 23 Net cash (used in)/provided by investing activities (1,766) Change in cash and cash equivalents in the reporting period 18,197 Cash and cash equivalents at the beginning of the reporting period 165,088 Cash and cash equivalents at the end of the reporting period 183,285 |
Period 1.9.20 to 31.3.21 £ (15,425) - (15,425) - 10 10 (15,415) 180,503 165,088 |
|---|---|
The notes form part of these financial statements
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King's Lynn Festival Limited
Notes to the Cash Flow Statement for the Year Ended 31st March 2022
1. Reconciliation of net income/(expenditure) to net cash flow from operating activities
| Year ended 31.3.22 £ Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) 29,295 Adjustments for: Depreciation charges 656 Interest received (23) Interest paid 17 Decrease in debtors 61 (Decrease)/increase in creditors (10,026) Net cash provided by/(used in) operations 19,980 |
Period 1.9.20 to 31.3.21 £ (16,776) 144 (10) - 238 979 (15,425) |
|---|---|
- Analysis of changes in net funds
| At 1.4.21 | Cash flow | At 31.3.22 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank and in hand | 165,088 | 18,197 | 183,285 |
| 165,088 | 18,197 | 183,285 | |
| Total | 165,088 | 18,197 | 183,285 |
The notes form part of these financial statements
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King's Lynn Festival Limited
Notes to the Financial Statements for the Year Ended 31st March 2022
1. Accounting policies
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
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King's Lynn Festival Limited
Notes to the Financial Statements - continued for the Year Ended 31st March 2022
2. Donations and legacies
| Donations and legacies | |
|---|---|
| Year ended 31.3.22 Unrestricted Restricted Total funds funds funds £ £ £ Sponsorship 20,700 - 20,700 Donations 41,958 - 41,958 Gift aid 5,537 - 5,537 Grants 106,168 - 106,168 174,363 - 174,363 |
Period 1.9.20 to 31.3.21 Total funds £ - 550 - 23,067 |
| 23,617 |
Grants received during the year are as follows:
| Year ended | Period 1.9.20 | |||
|---|---|---|---|---|
| 31.3.22 | to 31.3.21 | |||
| £ | £ | |||
| Norfolk County Council | 4,765 | 2,780 | ||
| KL & WNBC | 27,801 | 15,103 | ||
| Arts Council of England - East | 67,348 | - | ||
| Creative Arts East | 6,254 | - | ||
| Pandemic grants | - | 5,184 | ||
| -------------- | ------------ | |||
| 106,168 | 23,067 | |||
| ======= | ====== | |||
| Investment income | ||||
| Period | ||||
| 1.9.20 | ||||
| Year ended | to | |||
| 31.3.22 | 31.3.21 | |||
| Unrestricted | Restricted | Total | Total | |
| funds | funds | funds | funds | |
| £ | £ | £ | £ | |
| Deposit account interest | 21 | 2 | 23 | 10 |
3. Investment income
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King's Lynn Festival Limited
Notes to the Financial Statements - continued for the Year Ended 31st March 2022
| 4. | Income from charitable activities | Income from charitable activities | |||
|---|---|---|---|---|---|
| Period | |||||
| 1.9.20 | |||||
| Year ended | to | ||||
| 31.3.22 | 31.3.21 | ||||
| Activity | £ | £ | |||
| Box office and other | |||||
| performance related income | Festival activities | 36,101 | 146 | ||
| Box office and other | |||||
| performance related income | |||||
| - Winter series | Festival activities | 25,479 | - | ||
| 61,580 | 146 | ||||
| 5. | Raising funds | ||||
| Raising donations and legacies | |||||
| Period | |||||
| 1.9.20 | |||||
| Year ended | to | ||||
| 31.3.22 | 31.3.21 | ||||
| Unrestricted | Restricted | Total | Total | ||
| funds | funds | funds | funds | ||
| £ | £ | £ | £ | ||
| Arts Council Grant expenditure | 14,857 |
- | 14,857 | - | |
| 6. | Charitable activities costs | ||||
| Support | |||||
| Direct | costs (see | ||||
| Costs | note 7) | Totals | |||
| £ | £ | £ | |||
| Festival activities | 188,943 | 2,871 | 191,814 |
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King's Lynn Festival Limited
Notes to the Financial Statements - continued for the Year Ended 31st March 2022
7. Support costs
| Support costs | |
|---|---|
| Governance | |
| costs | |
| £ | |
| Festival activities | 2,871 |
8. Net income/(expenditure)
Net income/(expenditure) is stated after charging/(crediting):
| Period | ||
|---|---|---|
| 1.9.20 | ||
| Year ended | to | |
| 31.3.22 | 31.3.21 | |
| £ | £ | |
| Depreciation - owned assets | 656 | 144 |
9. Trustees' remuneration and benefits
There were no trustees' remuneration or other benefits for the year ended 31st March 2022 nor for the period ended 31st March 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31st March 2022 nor for the period ended 31st March 2021.
10. Staff costs
| Staff costs | |
|---|---|
| Year ended 31.3.22 £ Wages and salaries 43,539 Other pension costs 8,854 52,393 |
Period 1.9.20 to 31.3.21 £ 19,080 5,206 |
| 24,286 |
The average monthly number of employees during the year was as follows:
| Period | ||
|---|---|---|
| 1.9.20 | ||
| Year ended | to | |
| 31.3.22 | 31.3.21 | |
| Administration | 4 | 2 |
No employees received emoluments in excess of £60,000.
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King's Lynn Festival Limited
Notes to the Financial Statements - continued for the Year Ended 31st March 2022
| 11. | Comparatives for the statement of financial activities | |||
|---|---|---|---|---|
| Unrestricted | Restricted | Total | ||
| fund | fund | funds | ||
| £ | £ | £ | ||
| Income and endowments from | ||||
| Donations and legacies | 23,617 | - | 23,617 | |
| Charitable activities | ||||
| Festival activities | 146 | - | 146 | |
| Investment income | 9 | 1 | 10 | |
| Total | 23,772 | 1 | 23,773 | |
| Expenditure on | ||||
| Charitable activities | ||||
| Festival activities | 40,549 | - | 40,549 | |
| NET INCOME/(EXPENDITURE) | (16,777) | 1 | (16,776) | |
| Reconciliation of funds | ||||
| Total funds brought forward | 33,356 | 21,533 | 54,889 | |
| Total funds carried forward | 16,579 | 21,534 | 38,113 | |
| 12. | Tangible fixed assets | |||
| Fixtures | ||||
| and | ||||
| fittings | ||||
| £ | ||||
| Cost | ||||
| At 1st April 2021 | 3,576 | |||
| Additions | 1,789 | |||
| At 31st March 2022 | 5,365 | |||
| Depreciation | ||||
| At 1st April 2021 | 2,740 | |||
| Charge for year | 656 | |||
| At 31st March 2022 | 3,396 | |||
| Net book value | ||||
| At 31st March 2022 | 1,969 | |||
| At 31st March 2021 | 836 |
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King's Lynn Festival Limited
Notes to the Financial Statements - continued for the Year Ended 31st March 2022
13. Debtors: amounts falling due within one year
| 13. Debtors: amounts falling due within one year |
|||
|---|---|---|---|
| Trade debtors Other debtors 14. Creditors: amounts falling due within one year Trade creditors Social security and other taxes Pension Deferred income Accrued expenses |
2022 £ 1,281 29 1,310 2022 £ 11,979 792 7,956 25,079 5,000 50,806 |
2021 £ 1,347 24 1,371 2021 £ 6,238 678 8,075 39,455 6,386 |
2021 £ 1,347 24 |
| 1,371 | |||
| 60,832 |
15. Provisions for liabilities
The company is currently a member of NEST occupational pension scheme.Individual entitlement if any to employer contributions to an approved personal pension plan is specified in the relevant contract of employment.
Total contributions paid in the year amounted to £1,342 (2021: £824).
Provision for future liabilities: Within 12 months £8,075 (2021 £8,305) After 12 Months £68,350 (2021 £68,350)
Contingencies- Pension
The Kings Lynn Festival Limited is a member of the Pension Scheme for Administration and Technical Staff in the Arts. The scheme was closed to future accrual in December 2012.
Results of an actuarial valuation as at 31st March 2019 showed that the Scheme remains in significant deficit. The proportion of the deficit attributable to The Kings Lynn Festival Limited following the previous actuarial valuation as at 31st March 2016 was estimated at £76,000. This liability has been fully provided for in the balance sheet.
Under the recovery programme agreed with the Trustees of the Scheme,the Trustees of Kings Lynn Festival Limited will continue to make payments towards the deficit of £626 per month until July 2024
Due to the number of employers contributing to the Scheme, it is not possible at 31 March 2022 (or March 2021) to identify the share of underlying assets and liabilities of the Scheme that are separately attributable to the Charity. Under the provisions of Financial Reporting Standard 17, the accounts have therefore been prepared on the basis that the Scheme qualifies as a Multi-Employer Scheme and pension costs are disclosed in line with the requirements for a defined contribution Scheme.
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King's Lynn Festival Limited
Notes to the Financial Statements - continued for the Year Ended 31st March 2022
16. Movement in funds
| Movement in funds | |||
|---|---|---|---|
| Net | |||
| movement | |||
| At 1.4.21 | in funds | At 31.3.22 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 16,579 | 29,293 | 45,872 |
| Restricted funds | |||
| Ruth Fermoy memorial fund | 21,534 | 2 | 21,536 |
| TOTAL FUNDS | 38,113 | 29,295 | 67,408 |
| Net movement in funds, included in the above are as follows: | |||
| Incoming | Resources | Movement | |
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 235,964 | (206,671) | 29,293 |
| Restricted funds | |||
| Ruth Fermoy memorial fund | 2 | - | 2 |
| TOTAL FUNDS | 235,966 | (206,671) | 29,295 |
| Comparatives for movement in funds | |||
| Net | |||
| movement | |||
| At 1.9.20 | in funds | At 31.3.21 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 33,356 | (16,777) | 16,579 |
| Restricted funds | |||
| Ruth Fermoy memorial fund | 21,533 | 1 | 21,534 |
| TOTAL FUNDS | 54,889 | (16,776) | 38,113 |
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King's Lynn Festival Limited
Notes to the Financial Statements - continued for the Year Ended 31st March 2022
16. Movement in funds - continued
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 23,772 | (40,549) | (16,777) |
| Restricted funds | |||
| Ruth Fermoy memorial fund | 1 | - | 1 |
| TOTAL FUNDS | 23,773 | (40,549) | (16,776) |
17. Related party disclosures
There were no related party transactions for the year ended 31st March 2022.
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