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2020-07-31-accounts

Company registration number: 04058070 Charity registration number: 1085862

The Nottingham Arts Theatre Limited

(A company limited by guarantee)

Annual Report and Financial Statements for the Year Ended 31 July 2020

Community Accounting Plus Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL

The Nottingham Arts Theatre Limited

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5 to 6
Balance Sheet 7
Notes to the Financial Statements 8 to 18

The Nottingham Arts Theatre Limited

Reference and Administrative Details

Trustees Raymond Wright Campbell Kay Michael Pearson Secretary Raymond Wright Principal Office 12 George Street Nottingham NG1 3BE Company Registration Number 04058070 Charity Registration Number 1085862 Independent Examiner John O'Brien, employee of Community Accounting Plus Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL

Page 1

The Nottingham Arts Theatre Limited

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 July 2020.

Structure, governance and management

Nature of governing document

The charity is a company limited by guarantee and registered charity. It is operated under the rules of its memorandum and articles of association dated 23 August 2000 and most recently amended 28 September 2003. It has no share capital and the liability of each member in the event of winding-up is limited to £10.

Recruitment and appointment of trustees

The Board actively seeks to recruit trustees who have proven expertise in areas not already covered by present directors.

Objectives and activities

Objects and aims

To promote, maintain, improve and advance education by the encouragement of the arts, including the arts of drama, mime, dance, singing and music and to formulate, prepare and establish schemes to enable as wide a range of people in the Nottingham conurbation to access the arts through performance, stagecraft, workshops or as audience members.

Objectives, strategies and activities

Promoting, maintaining and improving education through the arts, drama, dance and singing.

Public benefit

Nottingham Arts Theatre is an educational charity established to develop the George Street building into a community theatre serving the people of Nottingham and providing education through the arts. To this end, we offer opportunities in lifelong learning through educational classes and support for amateur theatre groups.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Achievements and performance

The theatre ran successfully up until the end of February 2020 with the annual pantomime, visiting theatre companies and local dance schools and universities. Unfortunately the theatre had to close due to Covid restrictions and government guidelines. We received further funding from Awards for All towards our Youth Theatre project which continues to run successfully.

Financial review

The directors are happy with the current finances, we have been successful with an Arts Council grant to enable us to stay financially viable during the Covid period.

Policy on reserves

Due to constant reinvestment in the improvement of the theatre's facilities any reserves are reinvested.

Page 2

The Nottingham Arts Theatre Limited

Trustees' Report

Statement of Trustees' Responsibilities

The trustees (who are also the directors of The Nottingham Arts Theatre Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

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 its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and 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.

Small companies provision statement

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

The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Campbell Kay Trustee

Page 3

The Nottingham Arts Theatre Limited

Independent Examiner's Report to the trustees of The Nottingham Arts Theatre Limited

Independent examiner’s report to the trustees of The Nottingham Arts Theatre Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 July 2020.

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 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 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 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.

......................................

John O'Brien MSc, FCCA, FCIE, employee of Community Accounting Plus Fellow of the Association of Charity Independent Examiners

Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL

Date:.............................

Page 4

The Nottingham Arts Theatre Limited

Statement of Financial Activities for the Year Ended 31 July 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
2
Charitable activities
3
Other trading activities
5
Investment income
6
Total Income
Expenditure on:
Raising funds
7
Charitable activities
8
Total Expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
19
Unrestricted
funds
£
22,708
107,559
15,264
24
145,555
(6,996)
(109,345)
(116,341)
29,214
(2,035)
27,179
254,970
282,149
Restricted
funds
£
-
12,820
-
-
12,820
-
(16,476)
(16,476)
(3,656)
2,035
(1,621)
12,372
10,751
Total
2020
£
22,708
120,379
15,264
24
158,375
(6,996)
(125,821)
(132,817)
25,558
-
25,558
267,342
292,900
Total
2019
£
8,114
153,645
18,510
10
180,279
(8,446)
(151,878)
(160,324)
19,955
-
19,955
247,387
267,342

All of the charity's activities derive from continuing operations during the above two periods.

Page 5

The Nottingham Arts Theatre Limited

Statement of Financial Activities for the Year Ended 31 July 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

These are the figures for the previous accounting period and are included for comparative purposes

Note
Income and Endowments from:
Donations and legacies
2
Charitable activities
3
Other trading activities
5
Investment income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
19
Unrestricted
funds
£
8,114
136,182
18,510
10
162,816
(8,446)
(146,787)
(155,233)
7,583
7,583
247,387
254,970
Restricted
funds
£
-
17,463
-
-
17,463
-
(5,091)
(5,091)
12,372
12,372
-
12,372
Total
2019
£
8,114
153,645
18,510
10
180,279
(8,446)
(151,878)
(160,324)
19,955
19,955
247,387
267,342

Page 6

The Nottingham Arts Theatre Limited

(Registration number: 04058070) Balance Sheet as at 31 July 2020

Note
Fixed assets
Tangible assets
14
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
17
Creditors: Amounts falling due within one year
18
Net current assets
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
19
2020
£
262,865
1,511
7,212
76,252
84,975
(54,940)
30,035
292,900
10,751
282,149
292,900
2019
£
264,577
990
5,058
34,786
40,834
(38,069)
2,765
267,342
12,372
254,970
267,342

For the financial year ending 31 July 2020 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

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

The financial statements on pages 5 to 18 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:

......................................... Raymond Wright Company Secretary and Trustee

Page 7

The Nottingham Arts Theatre Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

1 Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

The Nottingham Arts Theatre Limited 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 notes.

Going concern

The financial statements have been prepared on a going concern basis.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

Exemption from preparing a cash flow statement

The charity opted to adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Page 8

The Nottingham Arts Theatre Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

Deferred income

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £500.00 or more are initially recorded at cost.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate IT equipment 33.3% straight line basis General equipment 20.0% straight line basis Furniture and fittings 20.0% straight line basis

Page 9

The Nottingham Arts Theatre Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).

Trade debtors

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

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

Cash and cash equivalents

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

Trade creditors

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

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

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Restricted income funds are those grants for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. Pension costs charges in the Statement of Financial Activities represent the contributions payable by the charity during the year.

Page 10

The Nottingham Arts Theatre Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

2 Income from donations and legacies

Donations and legacies;
Donations from companies, trusts and similar proceeds
Donations from individuals
Grants, including capital grants;
Government grants
Unrestricted
funds
General
£
6,820
-
15,888
22,708
Total
2020
£
6,820
-
15,888
22,708
Total
2019
£
5,900
2,214
-
8,114

3 Income from charitable activities

External hire of theatre & fees
NAT shows
Pantomime membership
Sundry income
Grants & donations
Unrestricted
funds
General
£
45,021
60,465
2,073
-
-
107,559
Restricted
funds
£
-
-
-
-
12,820
12,820
Total
2020
£
45,021
60,465
2,073
-
12,820
120,379
Total
2019
£
65,810
68,826
1,488
58
17,463
153,645

4 Grants & donations

Awards for All
Thomas Farr Charity
Nottingham City Council
HMRC (CJRS)
Sir John Eastwood Foundation
Sundry grants & donations
Unrestricted
funds
£
-
-
10,000
5,888
1,000
5,820
22,708
Restricted
funds
£
9,820
3,000
-
-
-
-
12,820
Total
£
9,820
3,000
10,000
5,888
1,000
5,820
35,528

Page 11

The Nottingham Arts Theatre Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

5 Income from other trading activities

Trading income;
Sales of goods and services
Local fundraising and street collection income
6
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits
Unrestricted
funds
General
£
15,193
71
15,264
Unrestricted
funds
General
£
24
Total
2020
£
15,193
71
15,264
Total
2020
£
24
Total
2019
£
17,315
1,195
18,510
Total
2019
£
10

7 Expenditure on raising funds

a) Costs of trading activities

Costs of goods sold Unrestricted
funds
General
£
6,996
6,996
Total
2020
£
6,996
6,996
Total
2019
£
8,446
8,446

Page 12

The Nottingham Arts Theatre Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

8 Expenditure on charitable activities

Bank charges
Bad debts written off
Box office expenses
Cleaning
Communications
Depreciation
Commission
Equipment, repairs & maintenance
Hospitality & travel
Insurance
Internal charges
Marketing & PR
Merchandise purchases
Printing & stationery
Professional fees & licences
Room hire
Salaries, NI & pensions
Show costs
Sundry expenditure
Training
Utilities
Volunteer expenses
Unrestricted
funds
General
£
65
-
5,741
497
2,177
1,712
113
14,542
131
5,066
(6,190)
358
1,291
1,799
9,985
1,785
37,415
21,723
31
-
10,903
201
109,345
Restricted
funds
£
-
-
-
-
18
-
-
104
-
-
6,190
69
403
48
-
-
7,383
2,246
15
-
-
-
16,476
Total
2020
£
65
-
5,741
497
2,195
1,712
113
14,646
131
5,066
-
427
1,694
1,847
9,985
1,785
44,798
23,969
46
-
10,903
201
125,821
Total
2019
£
60
43
6,234
984
2,260
1,470
38
18,805
35
4,945
-
1,213
2,549
1,489
12,003
540
41,110
44,441
377
891
12,133
258
151,878

Page 13

The Nottingham Arts Theatre Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

9 Net incoming/outgoing resources

Net incoming resources for the year include:

Depreciation of fixed assets

2020 2019
£ £
1,712 1,470

10 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

11 Fees payable to independent examiner

During the period, the fees payable (excluding VAT) to the charity’s independent examiner Community Accounting Plus are analysed as follows:

Independent examination
Other financial services
2020
£
930
2,932
3,862
2019
£
900
3,358
4,258

12 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Pension costs
2020
£
44,586
212
44,798
2019
£
40,948
162
41,110

The monthly average number of persons (including senior management team) employed by the charity during the year was as follows:

Number of employees

2020 2019
No No
14 16

1 (2019 - 1) of the above employees participated in the Defined Contribution Pension Schemes.

Contributions to the employee pension schemes for the year totalled £212 (2019 - £162).

No employee received emoluments of more than £60,000 during the year.

Page 14

The Nottingham Arts Theatre Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

13 Taxation

The charity is a registered charity and is therefore exempt from taxation.

14 Tangible fixed assets

14 Tangible fixed assets
Cost
At 1 August 2019
At 31 July 2020
Depreciation
At 1 August 2019
Charge for the year
At 31 July 2020
Net book value
At 31 July 2020
At 31 July 2019
Land and
buildings
£
258,695
258,695
-
-
-
258,695
258,695
Furniture and
fittings
£
6,950
6,950
1,390
1,390
2,780
4,170
5,560
IT equipment
£
1,830
1,830
1,830
-
1,830
-
-
General
equipment
£
9,624
9,624
9,302
322
9,624
-
322
Total
£
277,099
277,099
12,522
1,712
14,234
262,865
264,577

The property was purchased in 2000 for £150,000 from the Co-operative Society. Under the terms of the agreement the property has to be run as a community theatre for 21 years before Nottingham Arts Theatre owns it. If the condition is not met then the property has to be sold back to the Co-operative Society for the purchase price.

15 Stock

15 Stock
Stocks
16 Debtors
Trade debtors
Prepayments
VAT recoverable
Other debtors
2020
£
1,511
2020
£
558
1,050
611
4,993
7,212
2019
£
990
2019
£
1,095
1,535
814
1,614
5,058

Page 15

The Nottingham Arts Theatre Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

17 Cash and cash equivalents

Cash on hand
Cash at bank
2020
£
912
75,340
76,252
2019
£
532
34,254
34,786

18 Creditors: amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Deferred income
2020
£
5,408
166
49,366
-
54,940
2019
£
14,014
291
23,026
738
38,069

19 Funds

19 Funds
Unrestricted funds
General
General fund
Designated
Roof repair fund
Fixed asset fund
Total Unrestricted funds
Restricted funds
Summer Schools 2020
Summer Schools 2019
Youth Project
Total restricted funds
Total funds
Balance at 1
August 2019
£
254,970
-
-
-
254,970
-
5,021
7,351
12,372
267,342
Incoming
resources
£
145,555
-
-
-
145,555
3,000
-
9,820
12,820
158,375
Resources
expended
£
(116,341)
-
-
-
(116,341)
-
(7,056)
(9,420)
(16,476)
(132,817)
Transfers
£
(276,290)
10,000
264,255
274,255
(2,035)
-
2,035
-
2,035
-
Balance at
31 July
2020
£
7,894
10,000
264,255
274,255
282,149
3,000
-
7,751
10,751
292,900

Page 16

The Nottingham Arts Theatre Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

Unrestricted funds
General
General fund
Restricted funds
Summer Schools 2019
Youth Project
Total restricted funds
Total funds
Balance at 1
August 2018
£
247,387
-
-
-
247,387
Incoming
resources
£
162,816
7,500
9,963
17,463
180,279
Resources
expended
£
(155,233)
(2,479)
(2,612)
(5,091)
(160,324)
Balance at 31
July 2019
£
254,970
5,021
7,351
12,372
267,342

The specific purposes for which the funds are to be applied are as follows:

Summer Schools 2019 and 2020 - funding received from various funders to enable three weeks of Summer School for children;

Youth Project - funding received from Awards for All to continue to run the youth theatre group.

The transfer from the General fund to the Summer Schools 2019 fund is for activities undertaken as part of this project.

The transfer from the General fund to the Roof repair fund and Fixed asset fund are to designate funds for essential roof repairs and building improvements.

20 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets
Unrestricted
funds
General
£
262,865
74,224
(54,940)
282,149
Unrestricted
funds
General
£
264,577
28,462
(38,069)
254,970
Restricted
funds
£
-
10,751
-
10,751
Restricted
funds
£
-
12,372
-
12,372
2020
Total funds
£
262,865
84,975
(54,940)
292,900
2019
Total funds
£
264,577
40,834
(38,069)
267,342

Page 17

The Nottingham Arts Theatre Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

21 Charity status

The charity is a charity limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.

22 Related party transactions

There were no related party transactions in the year.

Page 18