REGISTERED COMPANY NUMBER: 04168289 (England and Wales) REGISTERED CHARITY NUMBER: 1088229
Report of the Trustees and
Financial Statements
for the Year Ended 31 January 2021
for
BOWNESS THEATRE FESTIVAL LIMITED
Haines Watts Manchester Limited, Statutory Auditor Northern Assurance Buildings 9-21 Princess Street Manchester M2 4DN
BOWNESS THEATRE FESTIVAL LIMITED
Contents of the Financial Statements for the year ended 31 January 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 4 |
| Report of the Independent Auditors | 5 | to | 7 |
| Statement of Financial Activities | 8 | ||
| Balance Sheet | 9 | ||
| Cash Flow Statement | 10 | ||
| Notes to the Cash Flow Statement | 11 | ||
| Notes to the Financial Statements | 12 | to | 19 |
| Detailed Statement of Financial Activities | 20 |
BOWNESS THEATRE FESTIVAL LIMITED
Report of the Trustees for the year ended 31 January 2021
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 31 January 2021. 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).
The financial statements have been prepared in accordance with the accounting policies set out in the notes and comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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).
Objectives and activities
Objectives and aims
The objects for which the charity is established are the promotion and advancement of aesthetic education and the cultivation and improvement of public tasks in drama, opera, music, painting and the other arts. The strategies employed to achieve the charity's objectives are to:
a) Offer opportunities for a broad range of people to get involved in arts activity exploring their own creative powers.
b) Provide facilities for amateur and professional artists to showcase their abilities.
c) Represent the diversity of cultures in our society by programming presentations by, and with, artists of different cultural backgrounds; and
d) present a broad range of arts activities.
Public benefit
The trustees confirm that that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives and in planning future activities.
Achievement and performance
Charitable activities
The Charity had a full season planned running from 11th February 2020. These included 2 sold out comedy performances from Bill Bailey, one classical music weekend with two performances from Martin Roscoe and friends and 4 drama performances which all went ahead. The last of these performances being Sunday 15th March, just before National Lockdown due to Covid 19 was announced.
The rest of the years events were either postponed to be rescheduled or cancelled and all theatre staff were furloughed. No further performances were held that year.
When running, the season provides direct employment during its run and many other indirect forms of income to B&B owners, hoteliers, printers, marketing firms, newspapers and food and drink suppliers.
Financial review
Financial position
Admission fees of £18,588 were down 85% on those of the previous year. This was not unexpected in view of the coronavirus epidemic which resulted in the closure of the theatre for most of the year. The main consequence of this was that it was not possible to run the festival in 2020.
However, the direct costs of producing shows has decreased from £114,418 to £1,852 and the bought in costs of providing shows has fallen from £68,964 to £12,523. Income generated from the bistro fell from £12,946 to £1,320 in line with the reduction in admission fees.
Despite the effects of the coronavirus restrictions the company had net income for the year largely as a result of the receipt of a £28,800 grant from the Arts Council. Lakes Story Limited again donated to the company although much less than last year (£29,593 v £192,864). No legacies were received (2020 - £nil) and no grants were received other than from the Arts Council as noted. A grant of £2,000 was received in the previous year from South Lakeland District Council.
Investment policy and objectives
Under the Memorandum of Association, the charity has the power to invest in any way the trustees wish.
Page 1
BOWNESS THEATRE FESTIVAL LIMITED
Report of the Trustees for the year ended 31 January 2021
Financial review
Reserves policy
The trustees aim to ensure that the unrestricted funds, which are the free reserves of the charity, are kept to a minimum but are sufficient to fund those projects where income received does not cover the costs incurred. The trustees hope to attract sufficient funding in order that the charity will at least achieve a break-even position.
There was a balance on unrestricted funds at 31 January 2021 of £7,247 which includes £19,998 invested in fixed assets.The free reserve figure at year end is (£12,751). The trustees continue to try to source additional funding and to increase admission numbers in order to improve the funds position. Nevertheless, the charity is dependent, in the absence of other funding, on the continued financial support of two of its trustees, C R Scott and R P Glossop. These trustees have confirmed their commitment to provide the necessary support.
Going concern
The coronavirus pandemic arose early in the year and so there has been very little activity since the previous year end. An Arts Council grant was obtained which, combined with the low level of expenditure, will enable the company to continue in operation until normality returns.
The company had net income of £21,556 for the year ended 31 January 2021 and had net assets of £7,247 at that date. The company is dependent, in the absence of other funding, on the continued financial support of its trustees, C R Scott and R P Glossop. These trustees have confirmed their commitment to provide the necessary support.
On this basis the trustees consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that might be necessary if C R Scott and R P Glossop were not to provide further support.
Future plans
The Charity has recently had its first performance since Lockdown which was well attended. Future plans include a World Premiere of Sir Alan Ayckbourn's play 'All Lies', a Science Festival Weekend, Folk Music and several more drama productions.
Structure, governance and management
Governing document
The organisation is a charitable company limited by guarantee, incorporated on 26 February 2001 and registered as a charity on 28 August 2001. 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. In the event of the company being wound up members are required to contribute an amount not exceeding £10.
Recruitment and appointment of new trustees
New trustees must either be recommended for appointment by the existing trustees or proposed by a member. All new trustees must offer themselves for retirement at the Annual General Meeting following their appointment.
Organisational structure
The trustees meet regularly and co-ordinate the charity's activities through managers co-opted from Lakes Story Limited, a company in which C R Scott and R Glossop are directors. A festival administrator is appointed by the trustees to manage the day to day operations of the charity. Artistic performance related activity is controlled by R Glossop and C R Scott.
With the exception of the payments to the trustees recorded in note 8 to the financial statements the trustees give of their time freely and no trustee remuneration was paid in the year. Details of related party transactions are disclosed in notes 8 and 15 to the financial statements. Trustees are required to disclose all relevant interests to the other trustees and in accordance with the Charity's policy withdraw from decisions where a conflict of interest arises.
Induction and training of new trustees
An induction pack is available to any new trustee which includes a copy of the Memorandum and Articles of Association, a summary of the Charity's objectives, a copy of the Charity Commission's guide on the duties of a trustee and the most recent financial statements.
Related parties
The charity has a very close relationship with Lakes Story Limited, a company owned by two of the trustees, C R Scott and R Glossop. Lakes Story Limited provides certain facilities and services free of charge as recorded in note 3 to the financial statements.
Page 2
BOWNESS THEATRE FESTIVAL LIMITED
Report of the Trustees for the year ended 31 January 2021
Structure, governance and management
Risk management
The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity. Procedures are in place to ensure compliance with health and safety of staff and visitors to the theatre. The trustees consider that as far as is currently practical, suitable systems, internal controls and insurances are in place to mitigate risks.
Reference and administrative details
Registered Company number
04168289 (England and Wales)
Registered Charity number
1088229
Registered office
Northern Assurance Buildings Albert Square 9-21 Princess Street Manchester M2 4DN
Trustees
C R Scott S Glossop R P Glossop P Allen A Goolden P James H Pezet A Ptaszynski (resigned 29/7/2020) G Rhys Jones
Company Secretary
C R Scott
Auditors
Haines Watts Manchester Limited, Statutory Auditor Northern Assurance Buildings 9-21 Princess Street Manchester M2 4DN
Solicitors
Kippax Beaumont Lewis 28 Mawdsley Street Bolton BL1 1LF
Bankers
Barclays Bank plc Business Centre PO Box 27 Oxenholme Road Kendal LA9 7GF
Statement of trustees' responsibilities
The trustees (who are also the directors of Bowness Theatre Festival Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Page 3
BOWNESS THEATRE FESTIVAL LIMITED
Report of the Trustees for the year ended 31 January 2021
Statement of trustees' responsibilities - continued
Company law requires the trustees to prepare financial statements for each financial year which 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 those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.
In so far as the trustees are aware:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Auditors
The auditors, Haines Watts Manchester Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.
26/10/2021
Approved by order of the board of trustees on ............................................. and signed on its behalf by:
.................................................................... C R Scott - Trustee
Page 4
Report of the Independent Auditors to the Members of Bowness Theatre Festival Limited
Opinion
We have audited the financial statements of Bowness Theatre Festival Limited (the 'charitable company') for the year ended 31 January 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 January 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The Trustees' view on the impact of COVID-19 is disclosed in the accounting policies.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Page 5
Report of the Independent Auditors to the Members of Bowness Theatre Festival Limited
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Our responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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We perform walkthrough testing to confirm that the company's own controls were operating correctly.
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We test a sample of sales and purchases to confirm they are accounted for correctly and are appropriately disclosed, with increased risk due to cash sales.
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We test a sample of creditors to confirm they are correctly stated.
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We test a sample of journals to confirm they are genuine transactions.
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We have confirmed that the company complies with laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
Page 6
Report of the Independent Auditors to the Members of Bowness Theatre Festival Limited
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Angela Chorlton FCA (Senior Statutory Auditor) for and on behalf of Haines Watts Manchester Limited, Statutory Auditor Northern Assurance Buildings 9-21 Princess Street Manchester M2 4DN 29/10/2021 Date: .............................................
Page 7
BOWNESS THEATRE FESTIVAL LIMITED
Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 January 2021
| 2021 Unrestricted Restricted Total fund funds funds Notes £ £ £ Income and endowments from Donations and legacies 3 58,394 - 58,394 Charitable activities 5 Operation of theatre 21,835 - 21,835 Investment income 4 3 - 3 Total 80,232 - 80,232 Expenditure on Charitable activities 6 Goverance Cost 5,520 - 5,520 Operation of theatre 53,156 - 53,156 Total 58,676 - 58,676 NET INCOME/(EXPENDITURE) 21,556 - 21,556 Reconciliation of funds Total funds brought forward (14,309) - (14,309) Total funds carried forward 7,247 - 7,247 |
2020 Total funds £ 194,864 138,997 16 |
|---|---|
| 333,877 7,190 336,252 |
|
| 343,442 | |
| (9,565) (4,744) |
|
| (14,309) |
The notes form part of these financial statements
Page 8
BOWNESS THEATRE FESTIVAL LIMITED
Balance Sheet
31 January 2021
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | ||
| fund | funds | funds | funds | ||
| Notes | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 11 | 19,998 | - | 19,998 | 26,253 |
| Current assets | |||||
| Debtors | 12 | 10,868 | - | 10,868 | 10,701 |
| Cash at bank and in hand | 37,675 | - | 37,675 | 31,996 | |
| 48,543 | - | 48,543 | 42,697 | ||
| Creditors | |||||
| Amounts falling due within one year | 13 | (61,294) | - | (61,294) | (83,259) |
| Net current assets/(liabilities) | (12,751) | - | (12,751) | (40,562) | |
| Total assets less current liabilities | 7,247 | - | 7,247 | (14,309) | |
| NET ASSETS/(LIABILITIES) | 7,247 | - | 7,247 | (14,309) | |
| Funds | 14 | ||||
| Unrestricted funds | 7,247 | (14,309) | |||
| Total funds | 7,247 | (14,309) |
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 ............................................. and were signed on its behalf by: 26/10/2021
.............................................
C R Scott - Trustee
The notes form part of these financial statements
Page 9
BOWNESS THEATRE FESTIVAL LIMITED
Cash Flow Statement for the year ended 31 January 2021
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by/(used in) operating activities Cash flows from investing activities Purchase of tangible fixed assets Interest received Net cash (used in)/provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2021 £ 7,821 7,821 (2,145) 3 (2,142) 5,679 31,996 37,675 |
2020 £ (12,302) (12,302) - 16 16 (12,286) 44,282 31,996 |
|---|---|---|
The notes form part of these financial statements
Page 10
BOWNESS THEATRE FESTIVAL LIMITED
Notes to the Cash Flow Statement for the year ended 31 January 2021
| 1. Reconciliation of net income/(expenditure) to net cash flow from operating activities 2021 £ Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) 21,556 Adjustments for: Depreciation charges 8,400 Interest received (3) Increase in debtors (167) Decrease in creditors (21,965) Net cash provided by/(used in) operations 7,821 2. Analysis of changes in net funds At 1/2/20 Cash flow At £ £ Net cash Cash at bank and in hand 31,996 5,679 31,996 5,679 Total 31,996 5,679 |
2020 £ (9,565) 8,438 (16) (571) (10,588) (12,302) 31/1/21 £ 37,675 37,675 37,675 |
|---|---|
The notes form part of these financial statements
Page 11
BOWNESS THEATRE FESTIVAL LIMITED
Notes to the Financial Statements for the year ended 31 January 2021
1. Statutory information
Bowness Theatre Festival Limited is a private company, limited by guarantee, registered in England and Wales and has no share capital. The liability of each member in the event of winding-up is limited to £10. The company's registered number and registered office address can be found on the reference and administrative information on page 1 of these financial statements. The principal nature of the charity's operations is the promotion and advancement of aesthetic education and the cultivation and improvement of public tasks in drama, opera, music, painting and the other arts.
2. 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.
The charity constitutes a public benefit entity as defined by FRS 102.
The coronavirus pandemic arose early in the year and so there has been very little activity since the previous year end. An Arts Council grant was obtained which, combined with the low level of expenditure, will enable the company to continue in operation until normality returns.
The company had net income of £21,556 for the year ended 31 January 2021 and had net assets of £7,247 at that date. Nevertheless, the company is dependent, in the absence of other funding, on the continued financial support of its trustees, C R Scott and R P Glossop. These trustees have confirmed their commitment to provide the necessary support.
On this basis the trustees consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that might be necessary if C R Scott and R P Glossop were not to provide further support.
Income
a) Charitable trading activities
Income from theatre admission fees, sales and programmes, membership, sponsorship and advertising is included in incoming resources in the period in which the relevant show takes place.
b) Grants, donations, legacies and gifts in kind
Income from grants and donations is included in incoming resources where these are receivable unless donors impose specific conditions.
Income from legacies is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.
Donated facilities, services and administration assistance are included at the value to the charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.
c) Interest receivable
Interest is included when receivable and can be measured reliably by the charity.
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.
Page 12
BOWNESS THEATRE FESTIVAL LIMITED
Notes to the Financial Statements - continued for the year ended 31 January 2021
2. Accounting policies - continued
Expenditure
Charitable activities include expenditure associated with staging theatre and other artistic events and include both the direct costs and support costs relating to these activities.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings
- 15% straight line
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price and costs directly attributable to bringing the asset to its working condition for its intended use.
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.
Debtors
Other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts offered.
Creditors
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Financial instruments
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.
a) Financial assets
Basic financial assets, including other debtors and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
There are no assets which are initially measured at fair value.
b) Financial liabilities
Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate.
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 payment is due within one year or less. If not, they are presented as non-current liabilities.
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BOWNESS THEATRE FESTIVAL LIMITED
Notes to the Financial Statements - continued for the year ended 31 January 2021
3. Donations and legacies
| Donations Grants Donations received, included in the above are as follows:- |
2021 £ 29,594 28,800 58,394 |
2020 £ 192,864 2,000 194,864 |
||
|---|---|---|---|---|
| 2021 | 2020 | |||
| £ | £ | |||
| Donations from individuals | - | - | ||
| Donations from companies | - | 143,831 | ||
| Donated facilities | 11,945 | 11,945 | ||
| Donated services and administration income | 17,648 | 37,088 | ||
| 29,593 | 192,864 | |||
Included in the above is donated facilities, services and administration assistance comprising free accommodation, administrative expenditure and use of staff provided amounting to £29,593 (2020 - £49,033) by Lakes Story Limited, a company of which C R Scott and R P Glossop are directors and shareholder. A corresponding amount is included within the costs of administering and managing the charity (see note 6).
All the income from donations totalling £29,593 (2020 - £192,864) is attributable to unrestricted funds.
Grants received, included in the above, are as follows:
| South Lakeland District Council Arts Council |
2021 £ - 28,800 28,800 |
2020 £ 2,000 - |
|---|---|---|
| 2,000 |
The income from grants totals £28,800 (2020 - £2,000) of which £nil (2020 - £nil) was for restricted funds and £28,800 (2020 - £2,000) was for unrestricted funds.
4. Investment income
Deposit account interest
| 2021 | 2020 |
|---|---|
| £ | £ |
| 3 | 16 |
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BOWNESS THEATRE FESTIVAL LIMITED
Notes to the Financial Statements - continued for the year ended 31 January 2021
5. Income from charitable activities
| Income from charitable activities | ||
|---|---|---|
| Activity Admissions Income Operation of theatre Bistro Income Operation of theatre Membership Income Operation of theatre Other Income Operation of theatre |
2021 £ 18,588 1,320 1,927 - 21,835 |
2020 £ 122,218 12,946 3,178 655 |
| 138,997 |
All incoming resources from the operation of the theatre of £21,835 (2020 - £138,997) are attributable to unrestricted funds.
6. Charitable activities costs
| Goverance Cost Operation of theatre |
Direct Costs £ 5,520 53,156 |
|---|---|
| 58,676 |
Charitable activity costs are as follows:
| 2020 | 2020 | |
|---|---|---|
| £ | £ | |
| Box office manager and front of house | 14,226 | 50,604 |
| Rent | 3,125 | 6,250 |
| Postage and stationery | 100 | 293 |
| Electricity | 292 | - |
| Sundries | 669 | 1,257 |
| Bistro costs | 112 | 6,221 |
| Show costs | 12,523 | 68,964 |
| Production costs | 1,852 | 114,418 |
| Repairs and renewals | (710) | 10,924 |
| Marketing costs | 1,929 | 23,678 |
| Audit fees | 1,000 | 1,600 |
| Travel expenses | (376) | 697 |
| Bank charges | 877 | 1,064 |
| Costs of donated facilities and services | 14,657 | 49,033 |
| Depreciation of fixtures and fittings | 8,400 | 8,439 |
| 58,676 | 343,442 | |
The charitable activity costs totals £58,676 (2020 - £343,442) of which £nil (2020 - £nil) was restricted and £58,676 (2020 - £343,442) was unrestricted.
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BOWNESS THEATRE FESTIVAL LIMITED
Notes to the Financial Statements - continued for the year ended 31 January 2021
7. Net income/(expenditure)
Net income/(expenditure) is stated after charging/(crediting):
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Depreciation - owned assets | 8,400 | 8,438 |
Changes in resources applied for fixed assets for Bowness Theatre Festival Limited's use:
| Unrestricted | funds | |
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Net incoming/(outgoing) resources for the year | 10,339 | (9,565) |
| Resources used for net acquisitions | (2,145) | - |
| Net movement in funds (financed from reserves) | 8,194 | (9,565) |
8. Trustees' remuneration and benefits
There were no trustees' remuneration or other benefits for the year ended 31 January 2021 nor for the year ended 31 January 2020.
S Glossop, trustee, received £nil (2020 - £2,325) for production costs. P Allen, trustee, is also a director of Scarborough Theatre Trust Limited. Show fees of £nil (2020 - £41,188) were paid to Stephen Joseph Theatre Limited, a 100% subsidiary of Scarborough Theatre Trust Limited. A Ptaszynski, trustee to 29 July 2020, is also a director of The Really Useful Group Limited. Show fees of £nil (2020 - £3,086) were paid to The Really Useful Group Limited. These payments were made in accordance with paragraph 28A of the company's Articles of Association.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 January 2021 nor for the year ended 31 January 2020.
9.
Staff costs
| Staff costs | ||
|---|---|---|
| Wages and salaries | 2021 £ 14,226 14,226 |
2020 £ 50,604 |
| 50,604 |
Salaries recharged by Lakes Story Limited for the box office manager and front of house were as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Salaries and wages | 14,226 | 49,135 |
| Social security costs | - | 1,469 |
| 14,226 | 50,604 | |
The average monthly number of employees during the year was as follows:
| 2021 | 2020 | |
|---|---|---|
| Box office and front of house | 1 | 2 |
Page 16
BOWNESS THEATRE FESTIVAL LIMITED
Notes to the Financial Statements - continued for the year ended 31 January 2021
9. Staff costs - continued
No employees received emoluments in excess of £60,000.
10. Comparatives for the statement of financial activities
| Unrestricted | Restricted | Total | ||
|---|---|---|---|---|
| fund | funds | funds | ||
| £ | £ | £ | ||
| Income and endowments from | ||||
| Donations and legacies | 194,864 | - | 194,864 | |
| Charitable activities | ||||
| Operation of theatre | 138,997 | - | 138,997 | |
| Investment income | 16 | - | 16 | |
| Total | 333,877 | - | 333,877 | |
| Expenditure on | ||||
| Charitable activities | ||||
| Goverance Cost | 7,190 | - | 7,190 | |
| Operation of theatre | 336,252 | - | 336,252 | |
| Total | 343,442 | - | 343,442 | |
| NET INCOME/(EXPENDITURE) | (9,565) | - | (9,565) | |
| Reconciliation of funds | ||||
| Total funds brought forward | (4,744) | - | (4,744) | |
| Total funds carried forward | (14,309) | - | (14,309) | |
| 11. | Tangible fixed assets | |||
| Fixtures | ||||
| and | ||||
| fittings | ||||
| £ | ||||
| Cost | ||||
| At 1 February 2020 | 76,217 | |||
| Additions | 2,145 | |||
| At 31 January 2021 | 78,362 | |||
| Depreciation | ||||
| At 1 February 2020 | 49,964 | |||
| Charge for year | 8,400 | |||
| At 31 January 2021 | 58,364 | |||
| Net book value | ||||
| At 31 January 2021 | 19,998 | |||
| At 31 January 2020 | 26,253 |
Page 17
BOWNESS THEATRE FESTIVAL LIMITED
Notes to the Financial Statements - continued for the year ended 31 January 2021
12. Debtors: amounts falling due within one year
| 12. | Debtors: amounts falling due within one year | |||
|---|---|---|---|---|
| 2021 | 2020 | |||
| £ | £ | |||
| Trade debtors | 339 | - | ||
| VAT | 10,529 | 10,701 | ||
| 10,868 | 10,701 | |||
| 13. | Creditors: amounts falling due within one year | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Trade creditors | - | 6,104 | ||
| Other creditors | 60,294 | 64,316 | ||
| Accruals and deferred income | 1,000 | 12,839 | ||
| 61,294 | 83,259 | |||
| 14. | Movement in funds | |||
| Net | ||||
| movement | ||||
| At 1/2/20 | in funds | At 31/1/21 | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | (14,309) | 21,556 | 7,247 | |
| TOTAL FUNDS | (14,309) | 21,556 | 7,247 | |
| Net movement in funds, included in the above are as follows: | ||||
| Incoming | Resources | Movement | ||
| resources | expended | in funds | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | 80,232 | (58,676) | 21,556 | |
| TOTAL FUNDS | 80,232 | (58,676) | 21,556 | |
| Comparatives for movement in funds | ||||
| Net | ||||
| movement | ||||
| At 1/2/19 | in funds | At 31/1/20 | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | (4,744) | (9,565) | (14,309) | |
| TOTAL FUNDS | (4,744) | (9,565) | (14,309) |
Page 18
BOWNESS THEATRE FESTIVAL LIMITED
Notes to the Financial Statements - continued for the year ended 31 January 2021
14. 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 | 333,877 | (343,442) | (9,565) |
| TOTAL FUNDS | 333,877 | (343,442) | (9,565) |
15. Related party disclosures
C R Scott and R P Glossop are directors and shareholders in Lakes Story Limited.
Lakes Story Limited incurred costs of £4,117 (2020 - £nil) on behalf of the charity which were recharged to them at cost.
During the year Lakes Story Limited made donations of £29,593 (2020 - £143,831). This is represented by cash donations of £nil (2020 - £65,000) and costs paid on behalf of the charity of £29,593 (2020 - £78,831).
The balance due to Lakes Story Limited at 31 January 2021 amounted to £59,895 (2020 - £64,316).
C R Scott has given a personal guarantee of £20,000 (2020 - £20,000) over the charity's bank overdraft.
Details of payments made to trustees are disclosed in note 8.
Page 19
BOWNESS THEATRE FESTIVAL LIMITED
Detailed Statement of Financial Activities for the year ended 31 January 2021
| Income and endowments Donations and legacies Donations Grants Investment income Deposit account interest Charitable activities Admissions Income Bistro Income Membership Income Other Income Total incoming resources Expenditure Charitable activities Box office manager and front of house Postage and stationery Sundries Bistro Cost Show Cost Production Cost Repairs & Renewals Marketing Costs Audit fees Travel Expenses Bank Charges Costs of donated facilities and services Fixtures and fittings Total resources expended Net income/(expenditure) |
2021 £ 29,594 28,800 58,394 3 18,588 1,320 1,927 - 21,835 80,232 14,226 100 669 112 12,523 1,852 (710) 1,929 1,000 (376) 877 18,074 8,400 58,676 58,676 21,556 |
2020 £ 192,864 2,000 194,864 16 122,218 12,946 3,178 655 138,997 333,877 50,604 293 1,257 6,221 68,964 114,418 10,924 23,678 1,600 697 1,064 55,283 8,439 343,442 343,442 (9,565) |
|---|---|---|
This page does not form part of the statutory financial statements
Page 20