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2020-12-31-accounts

(ATHEATRE CompanyARTS LimitedACTIONby Guarantee) TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Company Registration Number: 3737107 Charity Registration Number: 1076389

THEATRE ARTS ACTION TRUST (A Company Limited by Guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CONTENTS

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3-7 Report of the Directors
8 Report of the Independent Examiner
9 Statement of Financial Activities
10 Balance Sheet
11-17 Notesto the Accounts
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THEATRE ARTS ACTION TRUST {A Company Limited by Guarantee)

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The directors present their report and financial statements for the year ended 31 December 2020.

STRUCTURE GOVERNANCE AND MANAGEMENT

As a company Limited by Guarantee, incorporated on 19 March 1999 and registered with the Charity Commission on 6 July 1999, the governing document is the Memorandum and Articles of Association, under which the directors act as Charity Trustees.

The current organisational structure consists of five directors, two of whem have honorary roles as the Chairman and Treasurer.

The Management Committee meets on a regular basis and recaives updates from the various sub-committees; Finance & Business Development, Artistic Programming and Education, Technical, Publicity, Premises; Health & Safety and Administration. Financial reports are presented at each main Management Committee meeting and discussed in detail by the Finance & Business Development sub-committee.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity name

The name of the charity is Theatre Arts Action Trust and it also carries cut its activities as the Headgate Theatre.

Company Number: 3737107 Charity Number: 1076399 Directors: The Directors, who are also the Trustees of the Charity, who served during the year and up to the date of this report are as follows: Mr MC Kimmance (Chairman: Re-appointed 3% August 2020. Resigned Chairman 22 April 2021) Ms Jane Blackburn (Appointed: 5 May 2020. Elected Chairman 22 April 2021) Mr M Kerr (Treasurer) Mr D P King Mr C A Sharp Mr JM Enfield (Retired: AGM 19® July 2020) Ms J Knight Ms Maria Calvy (Appointed: 5° May 2020} Secretary: M Young Registored Office and Business Address: Headgate Theatre 14 Chapel Street North Colchester C02 7AT Independent Examiner: Simon Welling Certified Accountant Haines Watts Town Wall House, Balkeme Hill Colchester, Essex C03 3AD Bankers: HSBC 26, High Street, Colchester, Essex, C01 1DQ Solicitors: Thompson Smith & Puxon Stable 6, Stable Road, Colchester, Essex, C02 7GL

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T A TRUST (A Company Limited by Guarantee) DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)

:

Early in 2020 the UK was aware ofan epidemic of a coronavirus elsewhere in the world which was starting to give cause for concern In the UK. The situation became so serious that on the 11% March the World Health Organization definedit 28 a ‘pandemic’. This was followed soon afterwards by strong advice from the UK Government that people should not attend gatherings and that premises where people may gather, including theatres, should be closed. This advice became law the following week. The Headgate Theatre closed to all activities and uses during the week beginning 16° March and continued to be affected by government restrictions and obligations for the rest of 2020 and into 2021.

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it should be noted, therefore, that this report is being prepared at a time when those severe restrictions on theatres are still in effect and
are expectedto remain in place untilat least the middie of 2021.
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AIMS AND CBJECTIVES

The aims and objectives of the Company are, in summaty:

  1. to provide and maintain public education in drama and the performing arts; 2. to provide a building for the inhabitants of the Colchester area and its neighbourhood for this purpose, predominantly for amateur organisations;

  2. _ to provide the opportunities for teachers of drama and performing arts to practise their activities; 4. to advance education by encouraging the public, schools, the disabled and the disadvantaged to take an active interest in drama and arts generally;

  3. — to provide facilities for the advancement of health, citizenship and community development and for leisure-time activities according to The Charities Act 2011

  4. to carry out other charitable activities for the promotion of theatre and the arts in the Colchester area.

The Headgate Theatre opened in March 2002. [tis managed by a Board of Trustees which meets regularly to oversee the administration of the Trust, to ensure that its objectives are met and to ensure that funds received are applied to its charitable purposes. The Board also satisfies itself that systems are in place to secure compliance with all statutory requirements and to obtain value for money. Day to day operation is delegated to a Management Committee and effective links are maintained between the Board and the Committee through the fact that the Treasurer is a Trustee, the Bookings Manager is also a Trustee and the Chair of the Management Committee reports to each meeting of the Board.

The major policy is to hire the theatre and rehearsal facilities to performing arts groups in the area and thereby to provide facilities for public benefit. The addition of the spaces In 2019, referred to in the report for that year, provided two broad cpportunities. it enabled the expansion of facilities available to theatre-related activities, including performances and rehearsals, and it allowed a certaln amount of hiring to non-theatre organisations and groups in order to provide finance to support the delivery of the Headgate's objectives.

Development of the Management Committee has continued under its Chair, aimed at equalising the workload of its members and firming up policies and practices to ensure that the theatre continues to comply with the legal obtigations imposed upon it.

The directors confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's objectives and activities.

ACTIVITIES

2020 was expected to continue the success of 2019 with an increasing number of performances in the main house and increasing use of the newly opened spaces in No 12 Chapel Street North. Plans were in place, budgetary planning was secure and there were proposals to improve many of the facilities in the building. Then, approximately 12 weeks into the year, with a show in the auditorium about to have its dress rehearsal, and a rehearsal in the Rehearsal Room for a show opening the following week, the Chair of the Management Committee was obliged to advise that the show, and all future shows, events and hirings, would have to be cancelled and the building closed until further notice.

Nobody knew how long this situation woutd last.

At that moment, the priorities of the Board and the Management Committee became:

® — Notifying patrons, hirers and other users of the situation, including making refunds of pre-paid moneys as required e Reducing expenditure to only that which was unavoidable « Making the premises Covid-secure to protect staff, volunteers and others who may need to enter the building e Monitoring the budget e Maximising sources of income e Seeking new sources of income . ¢ Maintaining the profile of the Headgate In the area, by whatever means were available ¢ Preparing and maintaining plans — in many cases tentative only — in many cases tentative only in many cases tentative only many cases tentative only cases tentative only tentative only only — for partial or full or full full re-opening when when this became became possible « Maintaining contact with volunteers with volunteers volunteers and keeping keeping them up to date with developments up to date with developments to date with developments date with developments with developments developments

The necessary planning and much of its execution was, and still is, carried out by a smal! number of leading volunteers, assisted by many other volunteers and, until the autumn, the three employees. It is therefore appropriate to record here the grateful thanks from the Trustees to all those involved but In particular to: Dawn King, Chair of tha Management Committee; David King, Bookings Manager, Mike Kerr, Treasurer, Matthew Young, Company Secretary.

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THEATRE ARTS ACTION TRUST. (A Company Limited by Guarantee)

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)

ACTIVITIES (CONTINUED)

Within a very short time, all hirers had been advised of the shut-down and been assured that the theatre would re-open as soon as possible. Customers who had pald for tickets were contacted and offered refunds. in many cases, they declined a refund and requested that the money due be treated as a donation, adding their good wishes to the Headgate and their hopes that the organisation would be able to re-open soon. Although performances were halted, there was still some activity involving people entering the building so urgent measures - including screens, gel dispensers, antiseptic wipes, traffic control and advisory notices of various types - ware put in placeto try to ensure the safety of all who were involved. In this regard, careful attention was always given to advice being issued by H M Government on a frequent basts.

With the benefit of the Coronavirus Job Retention Scheme, the staif were put on furtough at the end ofApril. Areduced staff presence was maintained until the end of September. Unfortunately, as time wenton it became clear that therewas insufficient income and insufficientwork to justify continuing with their employment and it was with great regret that the Board came to the conclusion that they would have to be made redundant. The Trustees would like to take this opportunity to thank them for all the service and support that they have given, which in many cases was ‘over and above’ that which was formally required.

The programme of performances was revised ‘in pencil’ in order that when restrictions were lifted they would be able to re-start quickly. As the year progressed, the tentative programme comprised shows with very limited numbers of performers and few performances, and planning was based on small audiences so that Covid-secure measures could be maintained and social distancing observed.

The Covid-security measures enabled certain activities in the premises to be maintained, because the theatre was able to provide reassurance to hirers that every precaution was being taken. This facilitated the maximisation of commercial hires in order to maintain an income stream. Some activities continued or were re-launched during the year, including the wellbeing classes, some dance classes and yoga sessions which helped the users and their tutors to counteract some of the effects of the 'lockdowns'. Act V In particularwas a great success in this regard, with some of their sessions being conducted online, and was highly appreciated by patrons and facilitators alike.

It was even possible to host another session of the Romanian elections in a Covid-secure manner.

GOVERNANCE AND MANAGEMENT

Throughout the year, the Board continued to hald regular meetings, many of which were online, in order to address the issues presented by the pandemic and to ensure that the responsibilities imposed on Trustees were still being discharged. The Management Committee and its subcommittees also met regularly and the Board was kept updated by regular reports from its Chair. This enabled the Trustees to satisfy themselves that measures were in place to deal with the situation and maintain as much normal business as possible.

After much discussion about the desirability of holding the Annua! General Meeting at the theatre at the usual time and the practicalities of trying to do so, it was eventually decided that in the interests of keeping members Informed and engaged the AGM would be a ‘virtual’ event. Members were sent— by email or postall the documentsthat woutd have been presented at a physical mesting and were invited to ask questionsand to agreeto proposalsset out in the agenda. The AGM saw the retirementof John Enfield as a Trustee and the Board was pleased to recommend to the membership that Jane Blackbum and Maria Calvy be appointed. Twenty members expressed their acceptance and agreement, which was enough to meet the quorum requirement of ten.

During the year, it became increasingly obvious that the burden of operating the complex business that the Headgate had become was failing : disproportionately and too heavily on a small number of volunteers, and the age profile of the volunteer base indicated that active succession planning was required. Several reports were received from the Management Committee via its Chair and after much consideration and debate a new staffing structure was agreed with clear accountability to the Trustees. This will see the operational leadership of the organisation headed by a paid employee who will ba assisted and supported by the volunteer team. The first phase of the implementation of this decision is planned for early 2021.

Alongside the decisions about the management of the Headgate, the Board also agreed a business plan for the next three years, acknowledging that this contained some assumptions which the course of the pandemic may prove unfounded. The associated strategy included Kay Performance Indicators to facilitate the monitoring of progress.

The Conditions of Hire were reviewed and updated, particularly with reference to the Covid pandemic, and all existing and new hirers were required to produce their own risk assessments and statements cf operation to match the risk assessments undertaken by the Headgate. Compliance with risk assessments was actively monitored by a smail team of trained volunteers, who also undertook any additional cleaning/sanitisation required.

As part of its regular monitoring, the Board received reports at each mesting about any Safeguarding issues and Health and Safety matters.

The Trustees were sad to hear of the death of Miss Janet Fulford who had been the theatre's patron since it opened. No names came to mind of people who might be asked fulfil the role, so it was agreed that no immediate action would be taken. However, if anybody becomes aware of a suitable candidate at some time in the future, their name should be put forward.

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THEATRE ARTS ACTION TRUST. (A Company Limited by Guarantee) DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)

FINANCIAL REVIEW

With minimal income, some unavoidable expenditure and no certainty about how long restrictions would last, the Trustees ensured that they were kept up to date with the budget and the Treasurer has been particularly assiduous at presenting timely and comprehensive reports on the finances of the company. This has enabled the Trustees to make informed decisions about which expenditure could go ahead and which would have to be abandoned.

In 2020, we were pleased to receive £13,501 as Small Business Grants via Colchester Council.

Initially, all expenditure was stopped other than that which was unavoidable, and staffing costs. As has been mentioned earlier, we were pleased that the Coronavirus Job Retention (Furlough) Scheme enabled us to retain our employees in the hope that normal activity would resume after a short time. Unfortunately, this hope was not fulfilled.

There were two particular items of planned expenditure in the business plan which required considerable discussion. One was the replacement of the lighting desk. The majority of the funding for this was to come as a donation from Colchester Theatre Group, with the balance being met by the Headgate. Much of the requisite rewiring had already been carried out and the Board was advised that currently voluntary expertise was available which might not be available by the time things returned to normal, so the decision was made to reinstate this item into the programme.

The other item was the replacement of the lift. Whilst it[was][clearly][ sensible][ for][ this][ to][ be][ done][ when][ the][building][ was][ closed][ so][ that][ normal][ operations] would not be disrupted, the Board was also aware that the current lease of the building had only five years to run. The lift replacementwas therefore removed from the 2020 pian, pending further discussions.

tn the interests of reducing expenditure, constructive discussions took place with the landlord of 12 Chapel Street North and the Headgate is grateful for the support received.

Ina search for other sources of income, the government's Culture Recovery Fund was identified. This was Investigated but found net to apply in our case as it was targeted at arts organisations which would go out of business and cease to exist after 31 March 2021. As a result of careful and prudent management of the finances, the Headgate was not In such a precarious position, so the decision was made not to apply. Knowing that the Headgate has wide and enthusiastic support in the area, a Crowd Funding exercise entitled “Help Us Keep the Lights On" was launched towards the end of the year, aimed at raising money for upgrading the lighting in the auditorium. This was extremely successful, raising £15K which is enabling new, safer and energy-efficient lighting to be purchased. ; The Headgate applied to the Theatres Trust for a grant to support planned re-opening of the theatre in accordance with our risk assessments, and the maximum sum of £5,000 was awarded in 2021. This will enable us to provide screening for various areas, plus mechanical cleaning equipment, and to improve the ventilation in one of our rehearsal rooms.

MAINTAINING THE HEADGATE PROFILE

Very early on, it was realised that it was going to be essential to ensure that the Headgate's profile in the area and with its supporters and volunteers needed to be maintained, and members of the Management Committee have put an enormous amount of work into this aspect of the Headgate activity. This has come in the form of: © — Updating the web site and ensuring that it is used to keep people informed about activities, plans etc. It was also used effectively in connection . with the Crowd Funding exercise mentioned earlier

e — Using various social media outlets to keep the profile fresh and active

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THEATRE ARTS ACTION (A Company Limited by Guarantee) DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)

PLANNING FOR THE FUTURE

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itis hoped that the Headgate will ba able to re-open and start to return to normal activity during 2021, so various plans are in place for this to happen,
depending on the order and degree to which restriction are Iifted. These include the provision of additional ventilation in the Rehearsal Room. [tis
expected that the requisite work will be carried out in the early part of 2021.
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A programme of events is in place which, itis hoped, will see audiences and hirers gradually retum to the Headgate during the second haif of 2021, based on realistic assumptions of progress in controlfing the pandemic.

A Script-writing club launches in the Spring of 2021 and places are already sold out.

THANKS

The Board would like to take this opportunity to record its grateful thanks to the committed and dedicated group of volunteers who have given freely of their time and energies to enable The Headgate to be used as and when Cavid restrictions allowed, to maintain the building and to carry out all the many activities outlined in this report. in this regard we would like to thank in particular Dawn King, Chair of the Management Committee.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The trustees (who are also directors of Theatre Arts Action Trust for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements In accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

® — select suitable accounting policies and then apply them consistently;

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Board on Ct... C..0.. ed...

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and signed on its behalf
by \J lackbumares, (Chairman)Rae horn
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THEATRE ARTS ACTION TRUST (A Company Limited by Guarantee) INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

| report to the charity trustees on my examination of the accounts of the charitable company for the year ended 31 December 2020, which are set out on pages 9 to 17,

Responsibilities and basis of report

As the charity's trustees of the Company (who are also the directors of the company for the purpose 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 for this year under Part 16 of the 2006 Act and are eligible for independent examination, | 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, | have followed the directions given by the Charity Commission (under section 145(5)(b)) of the 2011 Act

Independent examiner's statement

| have completed my examination. | confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect

  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 end fair view’ which is not a matter considered as part of an independent examination; or

  2. — 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).

| have no concems 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.

§ WELLING CERTIFIED ACCOUNTANT HAINES WATTS Town Wail House Balkeme Hill Colchester Essex CO3 3AD

21 June 2021

THEATRE ARTS ACTION TRUST (A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

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|||||||||| |---|---|---|---|---|---|---|---|---| |Notes|UnrestrictedFunds|RestrictedFunds|FundsTotal|FundsTotal| |(Noto|5)|(Note 6)| |2020|2019|2020|2019|2020|2019| |£|£|£|£|£|£| |INCOME AND ENDOWMENTS|FROM:| |Donations and legacies|7|19,517|9,668|18,500|15,000|38,017|24,668| |Charitable activities|8|49,331|104,262|.|-|49,331|104,262| |Other trading|activities|9|10,057|40,957|.|:|10,057|40,957| |Investment income ~ interest receivable|1,084|895|:|-|1,061|895| |Other|a| |Totat|79,986|155,782|18,500|17,954|98,466|173,736| |EXPENDITURE ON:| |Raising funds|10|8,428|23,275|.|:|8,428|23,275| |Charitable activities|11|99,669|138,500|23,771|29,455|123,440|168,955| |Total|108,097|162,776|23,771|29,455|131,868|192,230| |NET (EXPENDITURE)|/ INCOME BEING| |NET MOVEMENT IN FUNDS|(26,131)|(6,993)|(5,271)|(11,501)|(33,402)|(18,494)| |RECONCILIATION|OF|FUNDS| |Total Funds brought forward|302,543|= __309,536|=|__—48,018|_59,519 =|__350,561 = |[369,055]|| |Total|Funds carried forward|274,412|302,543|42,747|48,018|317,159|350,561|

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All of the above results are derived from continuing activities. All gains and losses in the year are included above.

The surplus / (deficit) for the year for Companies Act purposes was £(33,402) (2019: £(18,494).

The notes on pages 11 - 17 form part of these financlal statements.

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THEATRE ARTS ACTION TRUST (A Company Limited by Guarantee)

BALANCE SHEET AS AT 31 DECEMBER 2020

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |Notes|Unrestricted|Restricted|Total|Total| |2020|Funds|Funds|Funds|Funds| |£|2019£|2020£|aig£|2020£|2019£| |FIXED ASSETS| |Tangible assets|13|145,354|173,154|30,428|45,315|184,782|218,469| |CURRENT ASSETS| |Stocks|14|348|699|-|-|348|699| |Debtors|15|1,350|§,969|:|-|1,350|§,969| |Cash at bank and|in hand|16|__|135,098|134,919|3,319|2,703|138,417|137,622| |136,794|141,587|3,319|2,703|140,113|144,290| |CREDITORS: amounts|falling|due| |within one year|17|7136|12,198|-|:|7,736|12,198| |NET CURRENT ASSETS|129,058|129,389|3,319|2,703|132,377|132,092| |TOTAL NET ASSETS|274,412|302,543|42,747|48,018|317,159|350,561| |THE FUNDS OF THE CHARITY| |Unrestricted income funds|5|274,412|302,543|.|-|274,412|302,543| |Restricted income funds|6|:|-|42,747|48,018|42,747|48,018| |TOTAL FUNDS|274,412|302,543|42,747|48,018|317,159|350,561|

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For the year ended 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors’ responsibilities:

¢ The members have not required the company to obtain an audit of its accounts for the year In question in accordance with section 476; e The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the FRS102 SORP.

The notes on pages 11 to 17 form part of these financial statements.

Company registration number: 3737107

The financial statements were approved by the Board on > a Mond

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and signed on its behalfb)\ ....... AePlme be erarn .
(Chairman)
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ART 1ON (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

  1. ACCOUNTING POLICIES: The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout this year.

  2. (a) Basis of Accounting The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing thelr accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practica.

The financial statements are prepared in sterling, which is the financial currency of the entity.

(c) Fund Accounting Unrestricted funds are available for use at the discretion of the directors In furtherance of the general abjectives of the charity. Detalls of the particular funds are shown In Note 5. Restricted funds are subjected to restrictions on their expenditure imposed by the donor or contained in the terms of a grant. Detalts of the particular funds are shown in Note 6.

Voluntary income is received by way of grants and donations and is included in full when receivable. Gift Aid recoveries and donations from individuals are recognised in the same period as the donation.

Unrestricted grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Restricted grants are recognised on receipt.

Ticket sales ara not included where the Charity is acting as agent for the user group.

Donated goods are Included at the value to the charity where this can clearly and easily be quantified. The value of services provided by volunteers has not been included in these financial statements.

Investment income is included when receivable and comprises bank interest.

Costs of raising funds comprise the costs associated with attracting voluntary income and fundraising activities.

Expenditure on Charitable activities comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. Governance costs are included as support costs and allocated to the activities to which thay relate.

Redundancy payments are written off to the General Fund as incurred.

(f) Tangible fixed assets and depreciation . Fixed assets are stated at cost, less accumulated depreciation. The costs of additions less than £1,000 are not capitalised. Depreciation is provided at rates calculated to write off the cost of each asset over its expected life,as follows: Leasehold proparty renovations Straight Line over the life of the lease Computer equipment 20% on cost Equipment and fixtures 10% on cost

(h) Debtors

Debtors are recognised at the settlement amount due. Prepayments are valued at the net amount prepaid net of any trade discounts due.

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ARTS Ai U (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

:

  1. ACCOUNTING POLICIES (Continued)

  2. (i) Cash at Bank and In hand Cash at bank and cash in hand includes cash, bank and short-term investments.

() Creditors and Provisions Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in a transferof funds to a third party and the amoundue t o settle the obligation can be measured or[estimated][refiably.][Creditors][ and][ provisions] are normally recognised at their settlement amount after allowing for any trade discounts due.

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3. TURNOVER
The total turnover of the company for the year has been derivedfrom its principal activity wholly undertaken in the UK.
4 OPERATING SURPLUS 2020 2019
£ £
Operating surplus is stated after charging:
Depreciation and othar amounts written off tangible assets 37,842 38,198
Directors’ (Trustee's) remuneration and expenses - -
Independent examiners fees ; 500 500
5. UNRESTRICTED FUNDS Designated Fund
Notes David Forder Designated Total
General Fund Fund
(a) (b)
2020 2019 2020 2019 2020 2019
£ £ £ £ £ £
INCOME AND ENDOWMENTS FROM:
Grants, Donations and
Legacies 7 19,517 9,668 - - 19,517 9,668
Charitable activities 8 49,331 104,262 . - 49,331 104,262
Other trading activities 9 10,057 40,957 - - 10,057 40,957
Investments — interest 0b 88H O_O
Total 79,066 155,782 . - 79,986 155,782i
EXPENDITURE ON:
Raising funds 10 8,428 23,275 : - 8,428 23,275
Charitable activities 1 76,349 116,180 23,320 23,320 $9,669 139,500
Total 84,777 139,465 23,320 23,320 108,097 162,776
NET (EXPENDITURE)/INCOME BEING
NET MOVEMENT IN FUNDS (4,811) 16,327 (23,320) (23,320) (28,131) (6,993)
RECONCILIATION OF FUNDS
Total Funds brought forward 164,219 447,892 138,324 161,644 302,543 309,536
Total Funds carried forward 159,408 164,219 115,004 138,324 274,412 302,543
(b)(a) TheThe General David ForderFund Fundis availableis unrestrictedfor the general but has purposes been designatedof the Charity. by the Trustees for use fora particular purpose, being now
determined as funds available to expense improvements to the bar and common areas in the theatre building (2017) andto
undertake leasehold improvements and refurbishment following acquisition of a lease to the adjacent Warehouse bullding (2018).
During 2018a grant was received from the Hervey Benham Charitable Trustto be apptied towards the cost of improvemento t hes
Warehouse; this grant is shown as an addition to the Trust's designated funds. The amortisation of the improvements to the
Warehouse building is written off against this fund.
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THEATRE ARTS ACTION TRUST
(A Company Limited by Guarantee}
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
6 RESTRICTED FUNDS
Renovation Grants Headgate Youth Sound
Theatre & Lighting
See Rent Grant Theatre AGTV Equipment Covid Adaptations Total
notes below (a) (b) (c) (d) (e) fu]
Notes 2020£ 2019£ 2020£ 2019£ 2020£ 2019£ 2020£ 2019£ 2020£ 2019£ 2020£ 2019£ 2020£ 2019£
INCOME AND
ENDOWMENTS FROM:
Grants, Donations &
legacies 7 : - 15,000 15,000 . - . - 2,000 - 1,500 - 18,500 15,000
_ TotalACT V Activity a. : 15,000 15,000 . - . a2,954 i2,000 : 1,500 - 18,500 __ 17,954
EXPENDITURE ON:
Charitable Activities 11 7,553 7,553 15,000 15,000 : : 884 6,802 334 : . : 23,771 29,455
Total 7,553 7,553 18,000 18,000 . - 634 6,902 334 - . - 23,771 29,455
NET INCOME/
(EXPENDITURE)
BEING NET
MOVEMENT IN
FUNDS (7,553) (7,553) . - : - (884) (3,948) 1,666 - 1,500 - (5,271) (11,501)
RECONCILIATION OF
FUNDS
Total funds brought
forward 45,315 52,868 : - 1,819 1,819 . 884 4,832 : : . : 48,018 §9,519
Total funds carried
forward 37,762 45,315 . - 1,819 4 Fi 9 . 834 1,566 : 1,500 : 42,747 48,018A
(a) Grants received in 2001 and 2002 for the renovation of the theatre are being written off over 25 years in tine with the amortisation of expenditure on the long leasehold.
(b) The grant in respect of rent was received from Colchester Borough Council and is equa! to the rent due on the Headgate Theatre lease (see Note 18).
(c) The Headgate Youth Theatre Fund is used to promote amateur theatre for youngsters.
(d) ACT Vis en adopted activity from the Mercury Theatre, fully integrated into the programme of the Headgate Theatre.
(e) Conation received in 2020 to purchase sound and lighting equipment which is depreciated over 6 years on a straight line basis.
(f) Grant received in 2020 to enable the theatre to make adaptations to become Covid safe.
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THEATRE ARTS ACTION TRUST (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7. GRANTS, DONATIONSANDLEGACIES
Unrestricted Funds £ 2020 £ £ 2019 £
General Fund
Memberssubscriptions 5 20
Donations
GrantsReceivable		 6,011
13,501		 9,648
te
19,517 9,668
Restricted Funds
Rent Grant Fund
ColchesterBoroughCouncilgrantrerent 15,000 15,000
Soundand LightingFund
Donation
CovidAdaptationsFund
Essex CountyCouncil Adaptation Grant		 2,000
1,500		 -
-
__18,500_
38,017		 __
15,000
24,668
8. CHARITABLE ACTIVITIES
Unrestricted Funds
General Fund
Theatre !eitings
TicketSourcebooking fees
Barsalesandicecream
Otherincome
GovernmentGrants—JobRetentionScheme		 30,724
1,695
6,565
1,450
8,897		 67,896
6,741
25,871
3,754
-
49,331 104,242
9. OTHERTRADINGACTIVITIES
Unrestricted Funds
.
General Fund
Production Income-HTP 3,316 26,614
Production Income -Workshops
Activity Income-ACTV		 1,530
§,211		 8,274
6,069
10,057 40,957
10. RAISING FUNDS
Unrestricted Funds
General Fund
Advertising and publicity
Productioncosts(HTP,Workshops& ACTV)		 1,538
6,890		 6,540
16,735
8,428 23,275

The Headgate Theatre is also used as the venue for the company’s own fundraising events.

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:

THEATRE ARTS ACTION TRUST (A Company Limited by Guarantee)

NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED) NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED) NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED) NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED) NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED) NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED) NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
RTHE D 1 DE B
11. CHARITABLEACTIVITIES
Unrestricted Funds		 £ 2020 £ £ 2019 £
General Fund
Barpurchases (netofstockmovement)
Rent&ServiceCharge
Rates
Utilities
Insurance
Staffcosts
Cleaning materialsandcontract
Licences
Training
Bankand creditcardcharges
Ticketsourceprocessingfee
Repairsand Renewals
Maintenance
Health&Safety
Postage,stationery,telephoneand travel
Subscriptionsanddonations
Software
Sundries
Amortisation oflong leasehotdpropertyimprovements
Depreciation ofequipmentand fixtures
Supportcosts-IndependentExaminersfees		 - 3,116
14,230
1,421
4,852
§,332
19,734
5,680
1,323
70
710
1,408
6,438
2,142
94
1,389
183
669
423
3,507
3,128
500		 10,686
20,320
1,566
7,242
§,499
22,710
8,890
1,831
1,202
1,848
5,782
8,507
6,422
1,384
1,986
234
§43
1,703
3,507
3,818
500		 ,
76,349 116,180
David Forder Fund
Amortisation oflongleasehold propertyimprovements improvements 23,320 23,320
99,669 139,500
Restricted Funds
TheatreRenovation Grant
Amortisationoflong leasehold 7,553 7,553
RentGrant
Rentpayable 15,000 15,000
ACTV
ACTV expenditure
Soundand Lighting Fund
Depreciation ofequipmentandfixtures		 884
334		 . 6,902
:
23,771 29,455
123,440 168,955
12. STAFFCOSTS
Salariesandwages 18,385 22,467
Social securitycosts
Employers contribution todefinedcontribution pensionscheme
Redundancypayment		 -
214
1,135		 -
243
:
19,734 22,710

No remuneration or expenses are paid to Trustees and the duties of key management personnel are carried out by them.

Remuneration of key management personnel is therefore nil for both the year ended 31 December 2020 and 31 December 2019.

There are no employees who received total employee benefits (excluding employer pension costs) of more than £60,000 during the year ended 31 December 2020 or 31 December 2019.

Redundancy payments during the year ended 31 December 2020 amounted to £1,135 and have been expended from the General Fund.

The average number of staff employed during the year ended 31 December 2020 was 3 (2019 - 3).

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THEATRE ARTS ACTION TRUST (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

13. TANGIBLE FIXED ASSETS

13.1 Assetsheldforusebythecharitycomprise :- Leasehold
Property
Renovations
£		 Equipment
and
Fixtures
£		 Total
2020
£		 Total
2019
£
Cost
Atbeginning ofyear
Additions		 395,691
:		 94,605
4,155		 490,296
4,155		 349,309
140,987
Atendofyear 395,691 98,760 494,451 490,296
Depreciation
Atbeginning ofyear
Chargefortheyear		 189,415
34,380		 82,412
3,462		 271,827
37,842		 233,629
38,198
Atendofyear 223,795 85,874 309,669 271,827
NetBookValues
Atendofyear 171,888 12,886 184,782 218,469
Atbaginning ofyear 206,276 12,193 218,469 115,680
13.2 Assets areheld in both Unrestricted and Restrictedfunds at
31 December as follows :-
Unrestricted
Restricted		 134,134
37,762
171,888		 11,220
1,666
12,886		 145,354
38,428
484,782		 173,154
45,315
218,469
Unrestricted
Funds
£		 Restricted
Funds
£		 Total
2020
£		 Total
2019
£
14. STOCKS
Barstock 346 - 348 699
15. DEBTORS
Tradedebtors
Prepayments		 1,081
269
1,350		 -
:
.		 1,081
269
1,350		 3,199
2,770
5,969
16. CASH ATBANKAND INHAND
Bankbalances
Cash floats		 134,628
470		 3,319
:		 137,947
470		 137,182
440
135,098 3,319 138,417 137,622
17. CREDITORS:amountsfallingduewithinoneyear
Othercreditors
Accruals
Incomereceived Inadvance		 2,147
380
4,589
7,736		 :
.
:
.		 2,747
390
4,598
7,738		 4,693
1,769
5,736
12,198

16

T ON TRU (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

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|||||||| |---|---|---|---|---|---|---| |18.|FINANCIAL COMMITMENTS|2020|2019| |At31|December 2020 the company had annual|commitments under|£|£| |non-cancellable|operating|leases as follows:-| |Due within one year| |Land and|Buildings - Headgate Theatre|15,000|15,000| |Land and|Buildings — The Warehouse|18,000|18,000| |33,000|33,000| |Due between two and five years| |Land and|Buildings - Headgate Theatre|§7,500|60,000| |Land and|Buildings ~ The Warehouse|72,000|72,000| |129,500|132,000| |Due in|more than 5 years| |Land and|Buildings - Headgate Theatre|-|12,500| |Land and|Buildings - The Warehouse|15,000|33,000| |15,000|45,500| |Total commitments|177,500|210,500| |The Headgate Theatre|lease expires|in 2025 and funds to meet this commitment are provided|by Colchester Borough|Council through a grant.| |(sea note 6c). The Warehouse|lease expires on 21|October 2026| |19.|CAPITAL COMMITMENTS|2020|2019| |£|£| |Authorised &|Contracted|for| |Project to replace Auditorium|lighting & sound|:|Phase|1|3,850|:| |Authorised|but not contracted|for| |Project to replace Auditorium|lighting & sound|: Phase 2|9,950|-|

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  1. TAXATION As a charity, the company is exempt from tax on income and gains falling within Sec 505 of the Taxes Act 1998 or Sec 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

  2. RELATED PARTIES

There were no related party transactions with the Charity Trustees during the years ended 31 December 2020 or 31 December 2019.

17