Company registered number: 4210225 Charity registered number: 1088552 CHICHESTER FESTIVAL THEATRE (A company limited by guarantee) TRUSTEES. REPORT ANDCONSOLIDATED FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2021 CHICHESTER FESTIVAL THEATRE CONTENTS Pa Company Infomiation Our Chairman's Report Our ExeC￿1ve Team's Report Our Year in Numbers Trustees, Report {including Strategic Report) 7-30 IndependentAuditoVs Report 31-33 Income and Expenditure Account Con501idated Statsment of Financial Activfiies 35 Con501idated Balance Sheet 36 Company Balante Sheet 37 Cash Flow Statement 38 Notes to the Financial Statements 39-47 Company re9iStered number: 4210225 Charity registered number..1088552 COMPANY INFORMATION Directors and Trustees IAII Dirertors of the Company are also member5 of the Company) Sir William (Bill) Castell- Chair Michael Mccart Odile Griffth Iretired li Dec 2020) Harry Matovu ac Nicholas Backhouse {retired 25 Sept 20201 Holly Mirams Alan Brodie Nicholas Pasricha (appointed ll Dec 2020) Cllrjudy Fowler Philip Shepherd Jill Green {retired 25 Sept 2020) Stephanie Street Sylve5tre Victoria Illingworth Christina Webster Georgina Liley Susie Wells RearAdmiral John LippiettCB CBE Executive Team Kathy Bourne Daniel Evan5 ExecLrtive Dirertor Artistic Director Senior ManagementTeam Janet Bakose Lydia Cassidy Sam Garner-Gibbons Simon Parsonage Georgina Rae Dale Rooks Theatre Manager D1￿Ctor of Marketing & Communication5 Technical Director Finance DI￿ttor and Company Secretsry Head of Planning & Projects Direttor of LEAP Auditor Haysmacintyre LLP io Queen Street Place London EC4R ￿G Registered Office Oaklands Park Chichester West Sussex Poi9 6AP Finance and Audit Committee Philip Shepherd- Chair Michael Mccart Nicholas Pasricha Christina Webster Trustee Trustee Trustee Trustee CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 OUR CHAIRMAN'S REPORT I could not have foreseen that the final fvll year of my Chairmanship of Chichester Festival Theatre ICFT) would be the most challenging in its history to date. I succeeded my predecessor in the role, Lord Young, in 2012 and tsken together, our Chairmanship covers the past 25 years of CFt's continuous development. In 2022, a5 we approach our 60th anniversary since Leslie Evershed-martin foundedthe theatre, we continueto raise ourambrtionsfor c￿.$ role in ourcommunty as we inspire and entertain with the richness of live performance. That sense of a Iwing, inherited theatre tsadition combined wrth our constant desire to improve, expand and eV0￿e surely lie5 atthe rootof the extraordillary loyaltyshown to by ourcommunity- Their 5UPPOrt has enabled CFf to withstand the Unp￿(edented assault on our financial resource5 from Covid-19. and underpins our abilityto continue to produce work atthe standard our audience5 expett. In spite of our attempts to reopen ourtheatres on three otcasions, our efforts were always curtsiled by the govemmenys response to a fvrther Covid-19 wave. Our total sales, which remain the backbone of our Theatre, were less than £0.5m, a very small number in comparison to normal sales which exceed £9m per annum. A combination of furlough, Arts Council and Chichester District Council sUPPOrt, plus the stsggering generosty of our local communty during this period, has allowed us to navigate the financial storm of the lasttwelve months in robust shape, ready to invest in Festival 2021 maintaining our artistic excellence, and criticallyi ensuring that our largely freelance community of artors and musicians regain their1svelih(x)d5 and the chance to usetheir extraordinary artiStlC skills. This report sets out the many ways in which all at have responded to the pandemic with determination, creativty and resourcefiJlness. At all time5, we tried tofind ways of using ourski115 to engage ourfriends, supportersandthose in need. even as ourdoors were closed. The embrace of the di9ltal world allowed ourworkto go global in a totslly vnprecedentedfashion-crave alone was seen in 52 countries- whilst at the same time, we worked to support our immediate community, youth theatre and young people with an online digital programme and a particularfocus on young carers. A51 write, the Theatre is once again preparing to reopen its door5 for FestNal 2021. However, fiJrther challenges lie ahead. We knowthatwe will need to upgrade the MIne￿a Theatre- now over 30 years old- and embrace new forward-thinking ways to vse our spaces. As our successful investment with 2019's Spiegeltent showed, we must also ensure thatwe create a long-temi commitmenttofacilities that will permitexperimentation forouryoungertheatre maker5 and audiences. The magit of our Theatre derives not only from the stage but from our Senior Management Team and staff, who have expertly navigatsd the complexities of the past year in response to the ever- changing lockdown scenarios and govemment guidelines. Our dedicated Boardroom now includes ovryoungTrustees Wtth inputfrom ouryouth Advi50ry Board, and I thank Nick Backhouse, Jill Green and Odile Griffith who retired as Trustee5 this year. Finally, an enomious thank you to all who have supported us this year in creating the opportunty for so many people to participate in the fun, learning and uplifting experiencesthat Chichester Festival Theatre delivered. Bill Castell Chair of the Board of Trustee5 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 OUR EXECUTIVE TEAM'S REPORT 2020121and the impact of Covid-19wiII not be quicklyforgotten in Chichester Festival Theatre's long history. The onset of the pandemic and the first national lockdown at the end of March 2020 forced the cancellation of our entire Festival season of twelve productions after only a Single day of rehearsals. This included the loss of the returning Chichester SpiegeEtent and its fringe-style programme following oursucce55fv1 pilot in 2019. Ourdetemiination and drivetodeliversomeworkon-stage andoLrtdoorsduringthis challengingyear saw our organisation and stsff pull together and adapt our business model to ensure that we came through the devastating consequences of the pandemic. Despite the significanl ne9ative financial impact on the theatre due to our stages being closed to the public for the majority of the year, we continued to connect with our audiences, support our5taff. produce worl employ freelancers and honour outstanding contracts. The impart of Covid-19 on CFT and the wider industry cannot be overstated but we are so proud to have suNived the year and to rnaintain ourreputation as aflagship regional theatre, which actively supports and advocate5 for tts communities, patrons and the industry. Asan Executive team, we a￿ detemiined to en5urethatourtheatre and oursectornot only suNNes Covid-19 but emerge5 from rtever stronger. Whilst we postponed two 2020 productions to 2021, including the summer musical, South Pacific which had already sold well and Andrea Lews The Long son￿ two others, The Unfriend and The Taxidemii5t's Daughter, are nowscheduledfor2022. Through prudent housekeeping and an efficient financial operating model, we We￿ able to continue offering creative experiences both in person and digf(ally, thanks to the generou5 SUPPOrt and financial commitsnent of ACE, Chichester District Council, and our loyal supporters and donors. We We￿ also able to utilise the UK govemmenvs Job Retention Scheme avoiding permanent stsff redundancies. Our organisational stability allowed u5to extend the reach of our communty engagement. Much of ourworktransitioned online and through this activtty we reached over 200,000 people. Our Learning Education and Participation ILEAP) team delivered rts core programme including Youth Theatre sessions with classes and other artivityes online and when possible, in-petson. While facing enomious challenges, the￿ have been signtficant leamings and opportunities, particulady in relation toourdigttal outpuL efficientworking prarticesand pathershipopportunities, which will inform our fiJture planning. The wodd and the landscape around u5 ha5 changed and will continue to evolve but we have demonstrdted this year that CFT is resilient and adaptable, agile and dynamic. Covid-19 is by no means over, but underpinned byourfinancial re5eNes, which are largely committed to essential planned investment and the capital costs of our historic buildings, we are confidentthat as we look to our future, our mission to enrich and respond to our communities Is more vital than ever. We were thrilled to end the year with an award of £953,000 from the governmenvs Culture Recovery Fund to help us transttion backtofull opening. Overtheforthcoming year, we are confident thatwe can lead the theatre in adjusting totheworld p05t-Covid-19 and we embracethe opportunity to bring communities backtogetherto enjoy live theatre through our Festival 2021 programme. We are excited to be looking ahead to c￿,$ sixtieth anniversary and Chichestefs Season of Culture in 2022, whilewill celebrate and showcase the outstanding range of arts and culture on offer across our distrirt. Kathy Bourne Executive Director Daniel Evans Artistic Director CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 OUR YEAR IN NUMBERS 2020-2021 HIGHLIGHTS Raised 536 £90,000 lor 300 free laptOP8 forYoJThJ Cavprn li Prologue 16-￿• yearolds 5% .,7 LIVE 163,000 430 houseFrfAds from 52 countries (>abrslrearn attracts 1,753 t•ukwllTrw• people filled 701 cars for watshed 90 stroamod perf￿08 81% sfirst tl-Ntrln nema 62% 12 n8w IMk•rs Foslival Dduclions Ca￿￿1[0d 160 d fdrAI a)?) u•di •xolMry• 1•8iinod t• b• 100% 51% £1.1m 95% r•GyGlabl• knknofkn Youn Peop forn￿1 firnt aborid cos1• on Fo￿1¥￿ 2020 16 IMPACT OF COVID-19 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 OUR TRUSTEES, REPORT This is the Report of the Board of Chichester Festtval Theatre and Group (the "Theatre", the "Companf or"CFT°I for the year ended 3￿t March 2021. It includes the Strategic Report that a Charitable Company svch as Chichester Festival Theatre 15 required to prepare underthe Companies Att 2006 Istrategic Report and Dirertor5' Report). The directors of the Company are its Trustees under charity law and throughout thi5 report are collectively also referred to as ￿he Trustees". The Company's objectives are set out in its goveming instrument, its Memorandum and Article5 of Association. TheTrustees maintsin a focus on c￿,$ charitable objectswith due regard to the Charity Commission's issued guidance on public benefiL and the Trustees make and endorse the statements on Public Benefft set out on page 9. WHO WE ARE AND WHATWE DO Chichester Festival Theatre 15 one of the UK'5 flagship theatres, renowned ft)rthe exceptionally high standard of our produrtions a5 well as our work with the communty and young people. CFT comprises two venues- the 4300 seat Festival Theatre with its thwst stsge and a 310-seat studio theatre, the Minerva, which is noted for premiere5 of new work alongside intimate revivals. Our Theatre is the leading regional theatre in the SoLrth East of England, founded and funded by community in 1962. Fimily rooted to this day in our communty, we have enjoyed strong support from our Friends, scheme arbd other benefartors, our patrons at the Box Office as well as long-standing partnerships with bvsinesses in our local community. The impartof Covid-19 has had an immediate impacton our local economyand community, with implicationsforlocal suppliers, our potential corporate sponsor5 and our indNidual supporter5 and patron5. CF[ operates as an incorporated charitythrough a registered company, Chichester Festival Theatre, andthrough ouractivities, we 5eekto maximise attendanceand participation in ourrange of activities and performances, to ensure that beneficiaries are drawn from across the spectrum of socio- economic groups and age bands. In order to remain financialty viable, achieve our public benefit objectives and play a leading role in our communty and local economy, CFT work5 to a four-year business plan (2018-20221 with Clear strate9ic objertives in support of our Mission and Vision. This aligns with vital ACE pvblic funding which supports us in delivering an ambitious programme of work on-stsge, together with ongoing supportfrom Chichester Distritt Council ("CDC"l on which ACE funding is contingent. Overthepastdecade, ourTheatre ha5 built up itsfinancial resiliencewith reseNesthataresubstantial enough to mttigate severe financial risk but that are also almost wholly committed to investment in our future inclvding capttal expenditure on our aging Minerva theatre, as our ReseNes Policy notes. OUR MISSIONANDVISION At Chichester Festival Theatre, we believe that the experience of live art ha5 the power to change lives. Our mission 15 to enrich our communities- locally, regionally, nationally and intemationally- through compelling, entertaining and enlightening theatre. CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 Our guiding vision is.. To cumtea repertoire oft7rtistscallyexcellen¢ creativelyombitiousand dynamic theotreprodurtions ford1ve￿e audiences. To deliver 0 50oolly-inclu5ive leaming, education and participation prografnme which will engage with Lind enFpowercommunitie5from a widegeogrophic anddemogmphic spreod. To investin thefvture of theatre-maknng in the UKthmugh pnictica4 5UPPQrtive onddevelopmental initiativesfvremerging, mid-careerimdseasoned artists. To investin ourinfrusttvrture and wortfrrce50 that Chiche5terFestivalTheotrebecomes a modelof bestpmctice and5Ustt7ind￿.1lty. Our mission and vision drive our annual and on90ing Bvsiness Planning cycle. OUR ARTISTIC POLICY Our Artistic Policy is fundamentally based on bringing artists and those who support artistic work together in an environment where creativtty can flourish. We pride ourselves on being able to offer artists an open space to experiment and explore with appropriate resources, where healthy challenges are welcomed, and where the creative work comesfirst. It is our belief that theatre needs to speak to contemF)orary audiences in a way that is entertaining and enlightening. We recognise that excellent theatre reflect5 the society which experiences tt. To ensure that CFT remains at the forefront of UK theatre in the 2tst century, the theatre experiences and partiupatory opportunities we create must resonate with artists and audiences alike. CFT will support all young people to develop creative, artistic. personal and social skills alongside a life-long enjoyment and appreciation of the arts. Our ambition is to promote inclu5ivty, accessibility and diversty, ensuring rich opportunitiesforall children and young people, regardless of age, culture and social background to feel inspired, challenged and excited bythe art5. OUR CORE ARTrSTIC PROGRAMME In normal times, CFf delivers two separate season5 on stage annually.. a summer Festival of home- produced workand a Winter Season of received worl alongside a Chichester Festival Youth Theatre Christmas produrtion. The Summer Festival would normallycomprise 10-12 productions including plays, musicals and youth theatre production5 by wodd class artists and creative teams. During the Winter Season we would present a broad range of visiting work including balleL opera, concerts. comedy and contemporary music tofurther divetsifythe work we offer our audiences. We also aim to build successfvl working relationships with UK co-producing partners to ensure our work reaches as wide an audience as P055ible by transFerrin9 production5 to London, across the UK and internationally. Covid-19 and the three lockdowns from March 2020, in November 2020 and nationally from 26 December 2020 completety disrupted our regular annual produrtion cycle and required our Senior Management Team to be inventive, nimble and lean in producing and sharing some live theatre and art and in embracing new digital outputs to engage with existing and new audiences both in person and online. CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 OUR PUBLIC BENEFIT: WHYWE MAThER As a charity, CFT generates and provides a significant public benefit in line with its charitable objectives. Despite Covid-19 and the changing govemment restrictiolls, in 2020-21, we are proud that..- We have continued to create and perfomi live theatre wherever possible in our auditoria and outdoors, offering our audiences a space to be entertained, challenged, educated, moved and enlightened, and 50 promoting the value of ari (reatNity and culture to our communities. Off-stage, whilst theatre spaces were closed, we adapted and accelerated our community work online to del¢ver our year-round, socially-inclusive Leaming, Education and Participation {"LEAP"I programme for all ages. LEAP'S aim is to break down any physical, mental, emotional and cultural barriers that prevent theatre being accessible for all. Its programme makes a signrficant contribution to wellbeing and in 2020-21. its impart on addressing mental health, wellbeing and isolated communf(ies was more importantthan ever before. Under LEAP, Chichester Festival Youth Theatre ("CFYTI is the largest weekly youth theatre in the country and offers a vibrantand enrichingyear-round programme toyoung people across our region. Fees are low but where price is an obstacle, bursaries are offered. During 2020-21 CFYT transferred its operation online, offering fortnightly sessions to all participants for most of the year, as well as suc¢essfiJlly rehearsing and opening Pinocchio, its Christmas produrtion on the Festival Theatre stage in between national lockdowns. We recognise our place in the community of Chichester and West Svssex and our contribution to our local economyand wider society. CFT is very much a theatre for our community and we have benefited enomiously from tts financial svpport in 2020-21 through donations and 5UPPOrt for our off-stage communty work. Broadening access on and off our 5tsges was demonstrated by our investment in the August open-air Concerts in the Park and the outdoor drive-in cinema series, and our ongoing collaboration with Chichester Distrirt Council and other cuitural and community groups in planning and supporting Chichesterfs 2022 Yearof Culture. In OL6rtheatres, ticket prices are setto match prevailing market ratesforsimilarwork byothervenues, but we are always mindful of widening our targetaudience. In 2020-21 £10 tickets were available for the majority of live perfomances and the enty price per household for our new streamed production5 was £10. In addition, access 15 extended through the availability of generou5 discounts ft)rschool groups, over 6os, families, children, students. our extended Prologue scheme for 16-30 year-old5 and Jobseeker Allowance and Income Support Claimants. These schemes enabled a total of 2,533 tickets15961 to be sold to these Under-￿PreSentrd groups {although in a fvjll year of full productions, e.9. 2019120, discounted tickets represented 1996 of sales). Lastly, this report details how we have rnade huge strides in 2020-21 to develop our digttal offering both on and off the stage and to Use these developing capabilits'es to reach both new and existing audience5, broaden access and widen public benefft at a rate of change that could not have been envisaged priorto the Covid-19 pandemic. CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 OUR STRATEGIC REPORT WHATWE PLANNEDTO DELIVER: PRE COVID-I Thi5 year wasthe fourth year programmed by our resperted Senior ManagementTeam led by Daniel Evans{Artistic Director) and Kathy Boume (Executive Direttorl. Bymarch 2020, advanced plan5were in place and costs committed foran ambi(ious programme of work guided by our strategic objectives in our Busines5 Plan, to be.. Creativelyambitious, dynamic anddiverse and relevant At the heort of the community At theforefront of UKtheatre Resilient,finonciollyand environmentaltysustoinoble Constantly monitoring andevo1uatingpr0g￿55 Onstage, Festival 2020 would have offered five world premieres, a 50.50 playvlright gender balance, 7 (femalel.'5 (malel dirertors. Offstage, our LEAP progrèmme had been set to continue its annual programme of events, which reaches over 60,000 people, and our Youth Theatre satellite programme was operating at capacity in over 8 centres acro55 Sussex, with plans for its large-scale produrtion of Pinocchio in December 2020. Following a successful pilot in 2019 which reached new and dtverse audiences, Festival 2020 would also have seen the return of the Chichester SpiegeltenL including its fringe-style programme and a produrtion of Crave by Sarah Kane, in an autumn highlight. In particular, as we looked to our slxtieth anniversary in 2022, the Tnjstees a150 had other plans to review the aging structure and facilrties of the Minerva theatre, built in 1989. With some investment reseNes accurnulated, the timing had felt right to explore a potential capital project to renew and modemise the fabric of the Minerva bvilding services and spaces. The onsetof the pandemic and the first national lockdown forced c￿t0 close its doorsto the public on 16 March 2020. just four week5 after launching the Festival 2020 season. For the first time in the Theatre's rich historys cancellation of the entire Festival 2020 season of twelve productions followed after only a single day of rehearsals. WHATWE DELIVERED NOTWITHSTANDING COVID-I WHA T WEDELIVERED.. OVER VIEW The ongoing impact of Covid-19 on Chichester FestNal Theatre during 2020-21 cannot be understated at any level. The consequences were significant both operationally and financially las our Financial Review on page 17 details} at every level of our organisation. Extemally, the changing nature of the pandemic and government guidance together with the imposition of three national lockdowns and social distancing made the year extremely challenging. Whilst our Busine55 Plan continued to guide vs, the realty was that our Executive team and Board had to continuously re-plan and re-budget for the year. adapting and adjusting both the creative programme and busines5 planning, u5ingdrfferentscenari0sto profile,testand managethe changing constraints and impact of the pandemic. There were so many uncertainties with practical implication5 for the theatre's entire operation from staffing to programmingt coupled with great CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 uncertainty as to whether the public would have the confidence to return to the theatre when permitted. Whilst Box Office income, togetherwith all secondary income, plummeted on the theatres, closure, we were left in the difficult position of having to manage the significant cost impact of cancelled produrtions, given that many production costs and fees had already been committed months ahead of the season starting. Although we saved ordeferred costs wherever possible, 2020-21 has cost CFT over £i.Im in aborted costs for planned produrtion5 which were either cancelled or disrupted part waythrough a run. Fortunatelyi the Executive team were able to provide stable leadership with the support of the Trustees to manage prudently through the year and deliver on both the Theatre's artistic and charitable objertives, whilst ensuring enough financial viabiltyto allow CFTto weather 2020-21 in a 51JStainable position, relaunching live work on our stsges when possible and preparing forour retum and reopening in 2021-22. WHA T WE DELIVERED.. CREA TIVEL Y AMBITIOUS ON-STAGE Notwrthstanding Covid-19, has taken every opportunty in 2020-21to programme, produce and host live work with a focus on excellence and ambFtion - whilst being innovative and developing our digital capability to deliver activities on and off stage for audiences both in-person and increasingly online. Athsticolly Artisticallyi despite our dosure and the necessary fudoughing of some Staff to avoid redundancies, we were detenninedto connert with audiences, supportourstaff and community, produce work and employ freelancers Whe￿Ver possible. We also looked to our future by continuing to commission new work. Swift action was taken in relation to planned Festival 20 productions to minimise costs lin terms of casl creatives, set and production costs) which could not be recovered. We elected to honour all contracts forstaff employed on thefirsttwo produrtions, acknowledging thatfreelance artists would find themselves outof work with immediate effert and wtth no prospect of fiJture work for some time to come. Two fvrther shows were postponed until 2021.. the summer musical, South Pacific, which had already sold well, and Andrea Levys The Long Song, but other shows were cancelled or postponed indefinitely. CFYT'S Christmas produrtion of Pinocchio wa5 kept pending, in the hope that a relaxation of the rules and a retum to school in September would allow rehearsals to take place wtth the cast of young people, which proved to be the case. Awelcome but brief relaxation of the wles in late svmmerallowed to organise a live outdoor August bank holiday Movies and Music Weekend. This was a fi'rst for and was exceedingly well received. The event included Family Fun in the Park. headlined by actor Hugh Bonneville, followed by an evening Concert. CFT also worked in partnership with Chichester Cinema at New Parkto present a Drive-ln Cinema in Northgate car park. The socially distanced Festival theatre auditorium reopened briefy in October 2020. A Celebrating Sondheim evening hosted by Daniel Evans, wa5 a Sell-out success. Originally programmed for the 150-seat SpiegeltenL Sarah Kane's Crave broke new ground.. stsged in the FestTrial Theatre to socially distanced audiences and simultsneously livestreamed to audiences across 50 countries. We pathered with the Royal Court Theatre, National Theatre of Wales and Theatre Royal PlymoLrth, who offered their patrons tickets to the live stream and CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 benefitted from ticket sales.. and following Lockdown#2, the artors continued the run behind closed doors forthe livestream audience. Amongst other streaming successes programmed during lockdown were three archive productions- Flowers for Mrs Harri5, The Midnight Gang and Beauty and the Beast- streamed to general 3udience5 for the first time, reaching global audience5 of 441000. Other highlights included Sir Michael Morpurgo reading extracts of The Butterfly Lion to families online and Kate Mosse condutted live webinars with Steven Moffat, Mark Gat15s, and on the legacy of Andrea Levy. Lockdown#2 in November 2020 forced us to cancel much of the remaining AutLtmn programme including a cabaret season planned on the popularity of the previous yearf5 Spiegeltent. Chichester moving into Tier 2 allowed to reopen live wrth A Merry Little Christmas, as well as a stsged touring family production of Dear Santa in the Minerva Theatre. The Youth Theatre's cornrnissioned production of Pinocchio successfully opened in December until lockdown #3 imposed from 26 December 2020 Stopped live performances mid-run. This produrtion triumphantly overcame the challenges of rehearsing and perfoming in a socially distanced, Covid-secure environment to excellent reviews and audience acclaim, as well as providing CFT with valuable experience of the challenges. protocols and monitoring required to work in a Covid-secure environment. Following lockdown #a the produrtion was presented online to audiences both in the UK and intemationally. The continued lockdown in the final quarter of 2020-21 forced CFT to cancel its planned Spring programme of tsvo fulloscale produrtions. Several online events were however streamed.. including 'Facing the Music, Events hosted online with guests Sheila Hancocl Michael Ball, Patricia Routledge, Imelda Stsunton, Giles Terera and Philip Quast. Againstthe odds, this pastyearhas allowed CFfto prove itself to be creative and resilient in its arti5tit production and this has also given our Executiveteam the opportunityto experimentand create new contentto Stay connerted with ouraudiences and the theatre communty. Digitol andLiveStreaming Astrategicarea that undoubtedly benefited mostfrom Covid-J9wasthe acceleration of c￿,$ digital knowledge, capability and leaming. Our streaming, online artivity and digttal output in 2020-21 exceeded what could ever have been imagined. Harnessing our digital and technological capability swiftly was keyto programming and deltvering content to audiences online. This led us to-_ Enhancethe technical capabilities of staff and securetheequipmentand meanstofacilitate high- quality broadcasting of our shows and other digital leaming initiatives. This ensured online audiences and participants could receive creatNe experiences during the theatres, closure. Access archive recordings for Flowers ft)r Mrs Harris, The Midnight Gang and Beauty and the BeasL which invofved negotiating rights with castslcreatNes but was aft instsnt hit wsth audiences from all over the world. Stream live produrtions of njnsof Crave and Pinocchio whichwere notaborted when restrictions on live performances were imposed or when a further national lockdown #3 occurred in December. Crave and Celebrating Sondheim live streams were viewed by &948 households in so countries. In total, CFT produced 96 digitsl perfornianceslstreams, seen byi6,087 people in-person at C with 153,721 people viewin9 online across 52 countries. 12 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 All this practical experience gained from live streaming has also vastly accelerated CFf'5 plans to use the wider potential of digital broadcasting and streaming for audiences in the future. Off-stage, Digital was no longeran add-on- instead, it became our core way of doing business. From live streaming to zoom classes, we successfully embraced technology to ensure we fulfilled our mission to create compelling, entertaining and enlightening theatre and events, presenting the best of CFTto a global audience. Another digrtal step-change forthe organisation was how quickly our staff adapted to working from home and collaborating on Zoom and MicrosoftTeams. Communication acrossteams within CF[ and with partners outside CFT inevttsbly proved initially challengingi but as a result all our staff have become digital￿ upskilled and were able to transition quickly to new ways of digital working and collaboration. WHA T WE DELIVERED..A T THEHEARTOFOUR COMMUNITYand OFF-STAGE 2020 wa5 an extraordinary year for our LEAP team. In response to the Covid-19 pandemi4 CFT was swift to redevelop its nomial face-to-face communty programme and initiate new ways to keep connected with audiences, SUPPOrter5, young people and especially vulnerable members of our community. In March 2020, all planned LEAP a(tivity as well as Youth Theatre sessions stopped but were quickly reconfigured online. However, other outreach work delivered to care homes, schools and young carers had to pause, affecting hundreds of participants including the cancellation of two principal outreach events, FestivALL (later delivered online) and Fun Palaces, which normally engage an averagei,250 participants. Other actNitses plannedforeldets, people with dementia and theircarers, children and families were halted, including ovr'Family Foyle. days held in the foyer, school tours, educational workshops, and our 'Get into rf classes for adults. Prologue Tuesdays for younger audiences were also cancelled, along with all events dedicated for specific audience groups with special needs and disabilities, Such as our Relaxed Performances. However, CFfworked to a guiding principle quKklye5tsblished thatwe would raise hjnds and u5ethe Theatre's site whereverpossibletoallow peopletocontinue experiencing creativityand perfomiance. Our staff facilitated activitie5 live and on-sfce whenever and whereverthey could. In August 2020, CFT opened its theatre doors for the first in-person creative Sessions since March, when veryfew holiday activitieswere taking place locally. Overthe course of twoweeks, 200 children aged 8-12 enjoyed a range of arts activtties including creative writing, storytelling, mask-making and dance. Free spaces were offered to those from low-income families. In another window between lockdowns, CFf also hand-delivered creatNe resource packsto 200 young people whowere identified as not having access to any digltal technology within their homes. Online Enga9ementDi9ltolly CFt'5 LEAP team were veryquickto redesign and transfer planned activitiesonline as well as looking afresh at what could be delivered digitally. By April 2020, the core programme had been adapted online, with new artivities introduced with the help of staff and volunteers. In totsl d(Jring the year, ourdigttal LEAP acttvitiesengaged overi57,000 people in i,ioo activities, in addition to 2,360 participations in-person. OurYouthTheatre recommenced digitallythrough zoom and proved popularwith young people, many of whom fe￿ isolated at home with online school and few other activities. 430 C CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 members continued to take part in these weekty sessions. In addrtion, 56 cwr members participated in the Christmas produ(tion of Pinocchio which rehearsed in-person and opened its run live, before tranSfe￿ing to a di9ital stream online, when the run was curtailed on Christrnas Eve by the lockdown #2. Youth Theatre members also created extremely popular sung and spoken videos for local care home residents (its Stand-by-you film footage reached 40,698 views on Twitter, Instagram and Facebook). Our ongoing fundraising initiative, Ageless, was taken online, continuing to generate valuable funding (£44,650) to support the Theatre's core OLrtreach work. Thi5 reached 791497 people acrossthree platforms with 3031 indrviduals engaging directly. To sUPPOrt the Young Carers Connect project which had provided 300 free laptops to young carers, a dedicated online creative programme of weekly creative activrtie5 for young carers included drawing & design, storytelling and an introduction to shortfslm-making. Five CF￿ members read and ￿(orded monologues devised by young people excluded from school, focusing on their individual experiences of lockdown. This projett "Making Theatre for Extraordinary Times" proved to be a very successfvl collaboration betsveen CFT, Act-On-It Arts Company and Famham Maltings. Other new digital and online initiatives used the theat￿ space5 and resources to work with local people across our communtyto include'.- A new digital initiativewithone of CFf'5 partnercharities, Dementia Support, h05ting a Christmas Carol Concert with a twist. The event featured pre-recorded carols sung by CFT'S Get Singing group, sing-along moments and readings from a Dementia Support 5UPPOrter and aLrthor, Kate Mosse, and CFT staff. A'chatter Projert, in partnership with Age UK West Sussex worked virtually WTth three separate groups of older people, including those in care homes andthose who are more isolated and not in care homes {from Bognor Regis, Selseyi Chichesterand the Wttteringsl. A range of digital attivitiesde5igned to keeppeople creatively engaged and less isolated at home. These included Digital Arts Awards, a Five-Day Playwrtting projecL a new 'Elders Company,, remote workshops and tutorials, including an introduction to basicsign language, dance, puppet- making and stage combat {which reached 70,872 individua15 via Twttter, Instagram and Facebook). Produrtion photosfrom CFT'S 60-yeararchive were published on social media reaching 1,359,748 individuals with 73,575 people engaging with these p05ts. In conclusion, our digital Out￿ath work demonstrably proved to be a vital lifeline of support for hundreds of isolated individuals and has accelerdted our comrnitmentto find new ways of 5UPPOrting our communty via telephone, social media, online, not just through signed-up artivities, courses or events. WHA TWE DELIVERED..A T THEFOREFRONTOFUK THEA TRE During the year, we played our part in contributing to the challenges faced by UK national theatres and arts organisations. Three noteworthy inrtiatNes emphasised ourfocus on young people- Our appointment of two Young Trustees in 2019-20fiJrtherstrengthened c￿,5 current Board to better bring in the perspective of young people.Thisyear, c￿Wentfvrtherand recruited a Youth Advisory Board comprising up to 16 young people aged 16-25 from over 70 applicants. Their objertive is to support the Trustees in helping remain relevant to currenu f￿Ure audiences CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 and our 5UPPOrters. Their enthusiasm, inputand perspertive on ourwork has proved valuable and insighrful. We extended the age range of our Prologue scheme to include 26 to 30 year-olds (to cover age5 16-30) with tickets from £5. Despite Covid-19, this extension resulted in a pleasing increase in Prologue membership to 14,126 members, a 45% increase. As an example, for Cravei 4096 of the Prologue bookers were 2￿30-year-oldS of which 411$6 were new to CFT. CFT also appointed 13 new Prologue Ambassadors drawn from local schools, colleges and universities to promote its Prologue scheme among their peer groups. CFT also helped spearhead the creation of the Cultural Education Partnership, a new umbrella bodyfor Westsussex. Thi5 isa pioneering regional collaboration, tasked with ensuring thatWe5t Su55ex children have 9reater access to arts and cultural resources to help them achieve better educational outcomes at school, and to create a universal cultural offering outside school. OurExecutive Team played a keyrolewithinthe seLtoras ttweatheredthe Covid-19 Storrn, especially given the impart on so-many self-employed creatives and artists and the closure of all venues nationalty- We lobbied central govemmentto extend the Job Retention Scheme and develop other financial breaks forthe Arts sector, leading tothe creatiorb of the Cultural Recovery Fund. While Some venues have offered live streams for a number of yeaTS on television, DVD, cinema and digital theatre channels, CFf was one of the first theatre5 to present a ticketed, paid for live Stream available at home, which gave us the flexibility to manage our own ticket sales and retain data. This approach attrarted signtficant interest from other theatres keen to replicate the proce55 so CFT shared leamings through talk5 and di5cussionsacross the sertor. We also developed and shared our protocols for reopening theatres and protecting staff, creatives and retvming audiences on site. All of our Senior Management Team have continued in trustee or advisory roles at other organisation5 in England and Wale5, as well as participating in specialist regional groups across the sertor relating to theirareas of expertise. WHA T WE DELIVERED.. RESILIENT. FINANCIALL YAND ENVIRONMENTALL YSUSTAINABLE Financial Reylience Whilst our Box Ofpice income fell awaydueto Covid-19, With thesupportof ourBoard, CFT continued to take appropriate risks to continue C￿atIng and providing exceptional live theatre, whilst being resilientand financially prudent. Ovr Financial Reviewon page 17detai1sthe stepswetookto achieve the fine balance of generating income streams whi15t limiting costs and drawing prudently on our reserves. An addttional one-year business plan for 2022-23 was rewTttten to account for the impart of Covid- 19 and our plans for exiting this challenging period and unprecedented impact on the Arts. ACE also extended its funding for a further year, duly matched by CDC, to the 2022-23 year-end. 2020-21 was an incredible year in temis of gtving and fundraising at CFT and the response to the Covid-19 crisis from our donors and supporters was extraordinary. Our core development income is principally raised from individual giving and membership schemes (linked to shows and events) enhanced by produrtion sponsorship from corporates and other benefactors, so our income was already at risk asthe financial year began and productions were cancelled. Whilst some corpor3te sponsors were unable to continue their 5UPPOrt for us in the short term, the strength of our corporate relationships and being innovative on renegotiating our arrangements CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 fortunately proterted much of our sponsorship incorne for the fvture. We will cary forward this leaming and new ideas into what we can offer in future partnerships once we reopen and can stage produrtions again. An extremely generous response toourappeal forfinancial donationsfor specificoff_stage initiatives increased sundry donations by 60% to almost £780.000 in comparison to nomal giving. These donations, complemented by several unexperted large legacies, made it possible to continue with so much of CFT'S offstage work and community support. Donors. Friends and the general public generously supported us through our Keep Connected, Ageless and Donate a Seat campaigns when buying tickets for a show. In particular, our pioneering Young Carers Connect project raised £90,000 for its purpose of providing young carers with dedicated laptops for accessing creative contentfrom home. New methods of donor engagernent during the year were found, which meant that live events became virtual. conversations moved online and we ensvred we kept donors informed through a combination of personal directcontact, newsletters and video updates. EnvimnmentallySustthnable This 15 a key area for CFT going forward and progress in 2020-21 continued notwithstsnding Covid- 19 and our closure. Most notably'.- Our stsff Green Commtttee continued to meetregularlytodevelop proposalsto be implemented as the theatre reopened, and consider changes to the way we work on and off the stage. With manystsff having had the experience orworking remotelyand digttallyduringthe year, we made significant progress towards our goal of becoming a paperle55 organisation, with ongoing work to eliminate paper-intenswe organisational protesses and to tackle our archive of stored documentation. Investment was made in digttal conferencing equipment to facilrtate digital meetings on an on- going basis and reduce travel. The Christmas yO￿h Theatre produttion of Pinocchio had svstainability as a central objective- all 5eL prop5 and costumesweredesigned using recycled and sustainable materia15 and a5 a pilot, t￿eSwere planted in Oaklands Parkadjacenttothetheatre, and in partnershipwith CDC, in place of opening night gifts. stsff have been engaged in industry wide discussions about reducing the wider environmental impart of theatre processes. A successful grant application to The Theatres Trustywolfson Foundation will see the Minerva Theatre house light be replaced with sustsinable altematives in 202¥ reducing energy consumption by 9596. WHA T WEDELIVERED.- OUR COVID-19ADAPTA TIONS AND READINESS ro OPEN Sub5tsntial work and investment during the year had to take place to ensure that our premises and operations were made Covid-19 safe, with all health and safety protocols updated for staff, visitors and audiences. Significant adaptation5 were made to protect our audiences, train Front of House (FOHI staff, install temperature checks and ensure wcial distsncing when moving around on slte- all in support of the 'new-style' socially-distanced theatre layoLrt for the live performances that were able to go ahead. 16 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 Major adaptations were made on-site to seating audiences inside at a Social distance. With extemal suppo¢ the capacrty of the FestNal Theatre was assessed and essentially halved but the small capacity and Minerva seating made produrtions largely unviable in this space, with seating capacity reduced from 3lOto just 150. We also developed protocols and new measures to be able to deliver Covid-safe OLrtdoor live performance5 in the Summer, which were a new undertaking for C￿. All these extra measures and associated additional stafFing were costly blrt undoubtedly enabled us to continue to stage live perfomances whenever possible during 2020-21 and readied us for opening in the yearahead. WHA T WEDELIVERED.. OPERA TIONAL AND CAPITAL DEVELOPMENTS ONSITE We took advantage of the theatre's closure to complete some planned elements of essential maintenance and investmenL as part of renewing and updating our site and our auditoria. However, on c05t grounds and given the need to protert our reserves again5tthe major risk of a Box Office failure or Covid-19 losses, we put on hold our plans for a capital project to renew the Minerva theatre site and facilities. Addre5sin9 these issues of its infrastructure and services remains a key requirementfor vs to consider in the year ahead. On-site work completed either just before the year-end or in the first weeks of 2021-22 in readine5S for reopening was prioritised to enhance the visitor experience and increase the suitsbilty of our space5 forcommunity use, including-_ Relocating the main café in the FestNal Theatre nextto the park wtth more outdoor space, and the potential for live entertainment or music. Facilr(ies and seating fvmiture have been upgraded with a focus on sustainabilty and renewal ratherthan OLrtright replacement. The back-stage G￿en Room facilitre5 inthe Festival Theatre were renewed and we upgraded our meeting room conferencing faciltties to reduce our carbon footprint and save on f￿Ure travel to London in particular. Air-condr(ioning installation in the Steven Pimlott Building progressed to address the high temperatures and uncomfortable working condttions of these rehearsal rooms. We completed an intemal review of our set and prop5 Storage requirements relocating to a new leased store on a single site. OUR FINANCIAL REVIEW In this yearof severe financial challenge, CFT worked to a financial aim of= balancing drastically reduced Box Office income levels with contsining ongoing wnning costs lof which the large5texpense is 5tsff wa9es),. minimising the costs on aborted Festival 20 productions that had to be cancelled. With the support of donations, available grants and prudentcosts management, our net Income and Expenditure deficit before depreciation forthe yearwas restricted to £185,282 with an overall deficf( of £42871341 after depreciation (2019-20.. £79,tss deficf(). CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 Covid Impact on Income The theatres, closure for much of the year resulted in a Boxoffice income of only £437,231 (compared to £9,191,177 in 2020), of which £1671684 was income from streamed sales (mostly live streamed) and £2691547 from in-person attendances. Alongside contributing to our income this year, another advantage of testing these new innovative method5 of digital delivery and streaming has been to prove their potential for widening our artistic output and engagement. For cancelled productions, patrons had the option of either donating their ticket income, taking a credit, transferring to a future date (for rescheduled productions} or receiving a refund. Overall CFT had to refund tickets worth £i.096m {41% of ticket sales). In all, 58,060 ticket holders who had booked for the Festival Season were duly processed to return tickets. Anticipating this lost Box Office income, CFT launched twofundraising appeals (Keep CFT Connected and Donate A Seat) to try and replace this and where possible Convert advance ticket sales to donations or credits ratherthan refunds. In 2020-21, an extremely healthy 31% of ticket conversions went to donations and credits, and a further 31% of audiences held on to their tickets for a rescheduled production, demonstrating the loyalty and generosity of our audiences. CFT lost £751000 in LEAP subscriptions for the year and also105t membership income from Friends, reducing income by £331000130911 down on 2019120, given the10ss of advance booking and other benefits). Cancelled productions also led to a10s5 of corporate sponsorship income worth £73,000 and as our largest corporate partnership5 involved businesses from the travel and hospitality sertors, thi5 income may be Slow to recover. Theatre Tax Relief IrrRI is a tax credit that, through our trading subsidiary, CFT Productions Limited I"CFTP"I, we are able to recover on the core costs of our productions. CFtP will be claiming TTR on aborted productions in 2020-21 as well on those thatwere able to go ahead. The totsl receivable for 2020-21 was £228,412 {2019-20.. £913,670). Inc(The 202￿2{r21 Arts thr￿11 Enuqand Granl £1.77￿ 31% S￿r￿shIp & Fundrai9ng É1.76m 31% ¢thid-19IDpeal ￿.24M 4% Go¥errm￿l Fuih)ugh Scheme £l.oem 19% TOTAL £5.63m PA)x OIficB £0.44m 8% Chichfy8tsrDislrict thuncil Grant £0.19m 3% Olher Inrnme £0.11m E Catetlng & FOH£O.04m 1% FyJes wirKCrne￿dWW￿ture￿￿JUlll 18 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 Covid-19 Impact on Costs Despite taking all possible measure5, CFTstill had to absorb £i,076,5p of costs connected to abortive prodvction costs, as a result of cancelling Festival 2020 as well as the Autumn cabarets and our planned Spring 2021 programme. Mitigating steps we took included shortening the contracts of seasonal staff where they had started, not employing other planned seasonal staff, renegotiating the costs of rehearsal rooms paid in advanceto provide creditforfuture use and reaching settlements on as manyof the contracts relating to cancelled shows as possible. We normally hire 60 seasonal stsff during the Festival season,. half of whom had commenced employment and were released early and the remainder were not employed. We took other stepsto protect our finaniial position through active management of staffing. All CFT permanent staff were furloughed to some extent under the national Job Retention Scheme with many taking a temporary pay reduction in addition. We were able to rotate staff onto furlough but we chose to incur staff costs to keep our programming, community and digital activities going wherever possible. All Front of House casual staff were fijrloughed and CFT'S catering outlets were immediately closed by our catering contractor, Caper & Berry. Finally, we stopped all non-urgent capital expenditure, minimized all overhead expenditure and claimed all available rates, rebates and other support. In summary, the fact that CFf's financial deficit for 2020-21 was not greater was primarily achieved by a combination of.. Increased donations and other fundraising activities of £1,925,055 {of which £1,624,015 was unrestricted) ACE and CDC annual funding totalling £119591484 £1,084tr281 support from the Job Retention scheme Salary cost savings from a three month pay cut for stsff. (This wa5 implemented only above an agreed salary threshold in order to protect lower-income earners.) Reduced overhead costs due to low activity and negotiated cost savings. Expendltsre 202fv2021 Prod￿tiOrts E2.16m 31% Theatre OperdtiI￿$£1.48M 21% Dep￿Clatth £1.1m 1 Aborted Fethval 2021 Qk8ts £1.08m 16% TOTAL £6.91 m SpoMship & FuThlrdiyng £0.37m 5% 12019-20 £15.79ml Funded Projects £0.34m 5% Catering & FOH £0.26m 4% Govemance £0.12m 2% FI￿r￿ per wKorne &-dexpendth accu 19 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 Bank and Cash The level of cash held at the bank at the year-end 15 always boosted by timing given the inclusion of the pre-paid Box Office and other income forthe following season. For Festival 2021, this amounted to £115741285 Out of total cash held of £7,766,47012019-20.' £8132911251. The level of cash held reflerts the working capital requirements of the theatre together with funds raised for restricted purposes and monies designated by the Trustees for essential projects and emergencies. ReseNe5 Policy CFf's policy is to maintain significant accounting and financial reserves to safeguard our financial P051tion and provide a buffer against both identified and unexperted eventualities as well as enabling u5 to address essential capital expenditure and future opportunities that may arise. Capital and Revenue Rese￿e5 Ouroverall reserve5 equate to net assets of £23,832,381. In broad terms, our reservesare committed and are planned to be expended on the following timescale.. Restricted funds for Property and Capital projects-expended over the life of the asset Restricted or Designated Project5- delivered over an agreed timetable (typically 3 years) Designated Buildings & Dilapidations costs retained against ongoing Festival Theatre building repairs. The remainder 15 required for the Minerva Theatre renewal, anticipated to be expended within the next 5 years Designated reseNes against uninsurable risk5, flotably Box Office risk- retained indefinitely. As detailed below, a very significant proportion of our headline capital reserves1£16,492,1271 are locked into the fabric of our buildings which are depreciated over the life of our buildings or the remaining length of lease and of the equipment which are depreciated over their useful life. The remaining revenue reserves are committed for specific designated purposes1£5J273,0541 together with an unrestricted undesignated fund l£1,446.275) representing three months, operating and overhead expenditu￿. Capitsi and Revenue ReseThes 20￿￿2021 Restric￿ Propetty Reserves £12.07m 51% Restn"cÈd Projects EO.62m 3% De￿gnated &Jildings & DI1&￿￿a￿"0r6 É4.42m 1 TOTAL £23.83m DesvJnated Otti¢e £3.¥kn 14% D&8Unated PraiEcts & Future In￿￿ment £1.97m Free R&Berves £1.45m 6% 20 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 The future of is dependent on our ability to survNe unpreditted extemal events and allocating reserves to new areas of investment to fvture-proof the organisation, wtth priorities already designated in terms of=. Keeping wr heritage buildings and site frtfor pu￿)Se Essential renewal of our Minervatheatre building in orderto realise ourambitions on and off the Stage Investment in new audiences through widening our reach and developing younger audiences Environmental su5tainabilty and investmentto become cèthn-neutral Our financial plans and reserves Fiolicy take account of the requirement to maintain and increase reseryes a5 the needs and challenge5 of our charrty evolve. The Trustees are aware that signfficant work and expendr(ure will be required on the Minerva Theatre in the next few year5, which our reseNes could not Meet. It is our intention to build up the Buildings and Dilapidations reseNe (currently £4.4191917} to meet Costs of signthcant repairs and other dilapidation works {such as ongoing concrete repair works) and to underpin a more extensive capfcal projerton the MineNa stte (initiallycoveringthe costof carrying outresearch and afea5ibility study). The Revenue reseNesrelateto comrnwtted reseNescomprising monies given forrestricted purposes {£620,925) and funds designated by the Trustees for specific projects and ongoing working capital {£5,273,0541 as detailed in note 16. These designated funds allow u5 to invest in forward-thinking projectsthatallowusto plan forCFf's knure and meetthe needsof ourcommunity, providing space for new artists and audiences investment in area5 including digttal technology, inclusivity and diversity. Essentiallytr they also allow us to cover areas of risk or priority forthe charity and currently include a Box Office and Covid-19 reserve provision of £3.3m. necessarily earmarked to offset significant underperformance of the Box Office orthe unexperted cancellation of a prodvrtion. Unrestricted'Free'Reserves Unrestricted reseNes are the onlyfunds remainingthat are freely available in financialtermsto meet our ongoing charitable objects. Our £1,446,275 of free reserves is equivalent to just over three months, operating costs covering overhead5 and production staffing wages. This is in line with the policy target set by the Trustees that we should hold free reserves of between three and six months of such costs. The fvll analysis of Reserves is set Olrt in Note 16. Principal Financiql Ris CFf's operations expose ustoa variety of financial risks and challenges. We have in place an ongoing internal risk management programme that is a150 reviewed annually by the Board to identify areas of risk and implement controls and procedures to limit our exposure in organi5ational, financial or reputational terms. Covid-19 Risk In 2020-21, an add￿lonal Covid-19 section to the risk register was developed and reviewed by the Board. The immediate risk to CFT relate5 primarily to the ongoing impact of Covid-19 and the significant consequences that could arise ffi theatre venues were forced to close again, that social distancing njles make staging productions unviable orthat audiences do not retum. 21 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 As a re5vIt of this, other income 5tream5 with a direrteconomic link to CFT'S on stsge worklsuch as corporate income, donations, membership income, FOH and catering) would also be significantly reduced. In terms of mitigation, our Executive and Senior Management Team have sought to:_ Strongly manage costs and take advantage of available government support such as the Job Retention scheme and Cultural Recovery Fund central funding. Maximise fundraising efforts in parallel to reducing ongoing artivfcies, whilrt effertively and efFiciently managing ovr running and operating costs and still delivering our charitable objectives. Internally develop detsiled plans under various scenarios to accommodate lower audience numbers and Box Office sales when forecasting and planning internal budgets. Refocus programming plans on MO￿ flexible and some lower cost produrtion5, as well as exploring the possibilities of working with co-producersto share costs and diversify risk. Delay any commitment to large capitsl investments or projects bearing high costs until we have greater confidellcethatSLrfficientaudience numberswill attend CF[ and that Boxoffice sale5 are more certain to be generated. Boxoffice Risk Our ongoing principal financial risk revolves around failure atthe Box Office and its potential adverse effert on both profrtabilty and cash flow. This 15 particulady relevant in a theatre busines5 where a completely new prograrnme of work is embarked upon each year, with costs committed to Festival productions ahead of subsequent and unguaranteed Box Office income. However, we note that in 2021-22, Box Office risk could re5ultfor several wjssible reasons'._ A failure in our programming or a production that leads to a massive shortfall on Box Office income compared to expertation,. The post-covid risk that ovr audiences do not retum totheatre-going as we anticipate,. Another uninsurable pandemic orevent happening The impact of signih'cantly ￿dUCed Box Office sales would have numerous adverse effects from the dirert1055 of income and proportionate redurtions in secondary income (such as catering and Front of House sales) to less obvious consequence5 including an impact on future sales and reputational damage. The Trustees and Executive Team are aware of the risk profile of the busine55 and, together with Senior Managemen( continue to plan an artistic programme to mitigate and monitor Box Office performance closely. In relation to the Covid-19 impart on retuming audiences, we have worked to set realistic Box Office targetsfor 2021-22 that we believe should be achievable, although we will continue to monitorthese carefully. As well as offering some socially-distanced performance5, we are also using direct marketing, videos and online communications to reassvre our patrons and explain how we have adapted our slte to Covid-19 With the additional safety measures we have taken to welcome them back to regulartheatre-going. Loss ofFunthng Risk CFT is dependent on annual fvnding from both ACE and CDC which totals almost £2 million per annum to 5UPPOrt its progrdmming and innovation. 22 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 The loss of this funding would limit our abilty to present a varied programme and extend our audiencereach. Furthermore, ourcommuntyworkand impartwouldundoubtedly be impactedand have a material adverse effect on our abiltty to delNer our charitable objectives. CFf monitors this financial contribution closely and will be SLsbmitting a robust NPO application for fiJture funding for the four-year period 2023-2027 at the end of 2021. Treasurymanagernentstmtegy The Treasury Management Strategy for CFT covering both investments and borrowing is approved each financial year by our Finance and Audit Commtttee. The Trustees stipulate that funds are invested prudently and, as a priority, have regard to the securty and liquidity of the CFT'S investments ratherthan seeking the highest rate of retum. Going C¢)ncem The Trustees believethatthe organi5ation 15 well placed to manage rts business risks successfullyand have a reasonable expectation tha( alongside their strategyfor handling the impart of the Covid-19 pandemic, the Group has adequate resources and cash to continue in operational existence for the foreseeable fiJture. However, we note the potential significant capitsl requirements for the coming years, in particular the cost5 of a MIne￿a theatre renewal, and the fact that our reseryes, whilst strong, are largely restricted and desi9nated and, because tied up on property and other assets, not fully covered by liquid funds. The Going Concem accounting policy is outlined in detail in schedule i(xvil of the notes to the accovnts. OUR STRATEGIC PRIORrriES FOR 2021-22: WHATWE PLAN TO DO? As CFT ended tts 2020-21 year, our future plans remain focussed on playing our part in uniting communities Post Covid-19 and getting live theatre back on our stsges. In the near temi, we are determined to use our facilities and resources to help society ￿CoVer from the pandemic and to encourage people to participate in high-qualty creative experiences and access the arts in whatever way is most appropriate for them, within the changing constraints of what public health measures permit. We will use the strategic objertives of our updated 2018-2022 Business Plan to guide our 2021-22 deliverables. WHA T WEPLAN TODELIVER.. CREA TIVEL YAMBITIOUS, DYNAMIC. INCLUSIVEANDRELEVANT In 2021-22, ourfocuswill beon re-engaging wtth ourexisting audiences asthey retum to ourtheatres, whilst continuing to develop new and more diverse audiences. Maintaining high-qualty in our Festival 2022 productions will be the benchmark. We will seek opportunities to collaborate with freelance artists and practitioners in new partnerships. We plan to have rn0￿ co-productions and work with a more diverse range of theatres and producers in the coming year. Cornmitting to a clear digf(al strategy will be key withtsvo areas of focus= the creation of digital content and enhancing the audience experience. supported by a new digttal team to build wider acce5S to our work. CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 WHAT WEPLAN TO DELIVER.. A T fHEHEARTOFOUR COMMUNITY We believe that engagement in arts and Cu￿re will be e55ential to revitalising communities emerging fromthe global pandernic. An objertive is to play a role in restoring Chichester and West Sussex's Sense of community and in supporting the mental health and wellbeing of our communities and stsff. CFT will allocate resources to deliver a Season of Culture in Chichester, aligned with CFT'S 60th Anniversary in 2022, celebrating and womoting commvnity cultural engagement. OurLEAP priorty i5tofocus on re-engaging with Yolrth Theatre members and others who did not stay connected during 202Q-24 as well as reaching new individuals. Led by our Young Trvstees, we will develop specific projects with our new Youth Advisory Board, ambassadors and networks, and will complete an in-depth consultation to understand how CFT is perceived and whatourcommunty would like ourtheatresto provide and represent. We have committed to open our foyer and spaces more widely outside of performances or programmed activitiessothatCFT becomesa more useful placeforthe local communtytogather and meet. Relocating our main café as well as a reviewof our Catering and FOH outlets will help us meetthe expectations of new and returning patrons p05tthe pandemic. WHA T WEPLAN TO DELIVER.. A TTHEFOREFRONTOF UK THEA TRE.. Given the impact of Covid-191 it is essential that CFT invests in and supports the theatre industry in 2020-21. There 15 a real risk of pemianently10sing skilled, selF-employed individuals and early career artistsfrom the sertorandso'.- Along with supporting freelancers, we will fom) new partnerships and co-producing relationships where possible in 2021-22 to create work thatcan tour nationally and intemationally. Our Board and Executive will advocate ft)r the sertor to keep its challenges and priorities in the public eye, by participating in national debate5 and press coverage to promote the importance of the arts and culture in society in the wake of Covid-19. WHA T WE PLAN TO DELIVER.. RESILIENT. FINANCIALL YAND ENVIRONMENTALL Y SUSTAINABLE The impart of the pandemic makes it vttal that CFT sustains and strengthens its financial resilience and continues to diversify its income streams on and off stsge, as well as continuing to invest in its future. Our objectives include=_ Wewill be developing our nextthree-yearbusiness plan and submitting ournext national portfolio funding application to the Arts Council in 2022 to secure funding from 2023-2026. We will prudently use and invest our designated reseTves to ensure our heritage site and facilities as well as ourtheatre offering and ambr(ions do not date. Essential development and improvements to the aging MineNa theatre and wider CFT site must be planned in 2021-22. We aim to grow our designated Buildings and Dilapidations re5e¥ve and to conduct a detailed feasibilty study to supportthese initiatives. Reviewing and diversifying our workforce to ensure our resources and cost base are ￿levant flexible and dynamic. 24 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 Reducing our impart on the environment with specifit initiatives led by our Green committee to set vp a road map to carbon net zero."Re-cycle" opportunrties will be championed for all 2021-22 productions including the development of a cloud-bèsed asset management System for props, fvrniture and technicallengineering stock. We will be partnering with a third party to pilot a donation scheme for audiences and staff to allow carbon offsetting of their travel. Our Green Committee has been tssked to champion and deliver measurable sustainabilty improvements to improve our efPicien(y and reduce our energy use. This will include continuing ourjourneyto developing apaperfe55workingenvironment asfara5 legallypossible andto reduce our storage requirements. A procurement policy to Position environmental sustainabilty centrally wfchin our procurement decisions will be delivered. OUR STRucfuRE, GOVERNANCEAND MANAGEMENT Chichester Festival Theatre is a company limf(ed by guarantee and is a registered charity. The business of the Theatre commenced in 1961 and the current Company commenced its operation5 in 2001. OUR BOARD OF DIRE￿OR5 AND THE ROLE OF OUR EXECUTIVE TEAM The Direttors of the Company are also the Trustees of for the purpose of charity law vp to a maximum of twenty. OurTrustees are a150 the only membeT5 of the Company and are non-executive and unpaid. New Trustees receive afull inductionto the organisation, including background and external reading on the duties of trustees as well as time with the Chair and other relevant trustees. In addition, time is spent on site at CFf with our ExecLrtNe Team and Senior Management Team and touring the premises. Trustee training is delivered as required and briefing5 are held on new govemance matters or regulation5. In 2020-21 the size of the Board varied between fourteen to sixteen Twstee5, including two Young Trusteesappointed for uptotwo years. One trustee is appointed byCDC as a condition of its ongoing fijnding support. This year, one new trustee was appointed to the Board and there were three retirements. During the year the￿ were six full Board meetings, and four additional Board briefing calls as a response to the Covid-J9 pandemic, with the majority of these held on Zoom due to Covid-19 restrirtions. Attendance was high at an average of 99% with no trustee missing an unacceptable numberof meetings. The Board is involved in major strategic decisions and has ultimate re5ponsibilty for the control, condurtand financial stability of the Cornpany and monttoring the Execrtive Team, neitherof whom are Directors under the Companies Art. The Board's responsibilities extend to monitoring CFf'5 charitable objects and the delivery of public benefrt noted on page 9 and is benchmarked againstthe provisions of the Charity Comrnis5ion Governance Code (updated in 20201. with plans to review this in 2021-22. Whilst retaining overall responsibilty, the Board delegates to the Executive Dirertor and Artistic Dirertor the detailed management and artistic control of the Theatre. It is their responsibilty, CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 principally by selerting and implementing the artistic programme, to further the artistic reputation of our Theatre and to ensure that its management is efficien¢ effertive and run in accordance with good busine55 prartice. The Board approves the artistic programme annually through its approval of the budget. The ExecutNe Team attends Board meetings and reports regulady. Our Trustees appoint the ExecLrtive Team and, in line wtth their relevant contracts, determines amounts due underth05e contracts annually, withthe Remuneration Committee leading on this. The TnJ5tees monttor the performance of the ExecutNe and also review the quality, effectiveness and timeliness of information provided to the Board. The affairs of the Theatre are svbject to continuou5 ￿leW by ACE and CDC. Trustee5 have access to independent professional advice, rf necessary, ot the Companvs expen￿. Appointmentand Tem75 of Office of Boardmembers The process of recommending the appointrnent of Trustees is delegated substantially to the Nominations Committee, however the Board reviews and assesses the necessary attribute5, qualities, experience and locallnational reP￿sentsbOn of the Board's needs atany time. The initial period of appointrnent as a Tnjstee is athree-yearterni with Trustees offering themSe￿e5 for re-election for a second three-year temi. Exceptionally, a period of service for a Trustee is three three-year term5 Wlth a maximum of io years. With the abolition of Annual General Meetings as a legal requirement, Trustees will nornially be treated as retiring on or atthe next Board meeting after the relevant anniversary of their first Board meeting attendance. This timing facilitates the continuous renewal and turnover of Trustees. Our 8oordCommittees There are Terms of Reference for various Board Committees in operation from time to time. There were three Committees operating during the year= the Finance and Audtt Committee, Nominations Committee and Remuneration Commthe. The Board and the Finance and Audtt Committee member5 at the date of this Report are Itsted on page 3. Finance andAudit Committee Our Finance and Audyt Committee normalfy meets five times during the year and at other times a5 requi￿d, reporting regularly to the Board. The Committee has four di5tinrt areas of respon5ibility- Financial Management, Audtt. Internal Control and Risk Management. There were five Finance and Audit Commitee meetings held during the 2020-21year. Nominations Committee Our Nominations Committse is empowered by the Board to review the structure, Size, diverse composition and balan￿ of the Board and, in light of that review. to make recommendations to the Board with regard to appointments and renewals of Trustees, terms of service. It also ensures that appropriate induction and training is given to Board members. Remuneration Committee Our Remuneration Committee is empowered bythe Board to deterniine and agree the fraMeWo￿Or 26 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 broad policyforthe remuneration of the Companys Artistic and Executive Directorsand othersenior managers. The commtttee may obtain reliable, Up-t￿date infomation about remuneration in other tompanies. To help itfulfil its obligation5 the committee has full authority to appoint remuneration consultants and to commi55ion or purchase any reports, sutweys or infom)ation that it deems necessaryi Within any budgetary restraints imposed bythe Board. DevelopmentAdvis0ry Committee Our Development Advisory Committee acts as an advisory group to the ExecutNe Team and Development department and carries OLrt an important role. working with our supporters to develop and maximise fvndraising Opportunities forthe theatre and our wider community work. EQUALITY AND DIVERSrr CFT believes that to be relevant to all area5 of the community, r( should represent and draw tslent from all parts of society. It aspiresto reflertthis in its Board, workforce and its repertoire. We treat all member5 of staff equally when considering career development and promotion opportunities regardless of whethertheemployee has a disability. If an employee become5 incapable of carying out his or her normal duties because of a disability, we will give consideration to making reasonable adjustments to their job and working condttions, redeployment and retraining. CFT endeavoursto operate acros5 all its artivities without discrimination, dirertly or indirettly, in relation to age, se4 sexual orientation, disabiltty, race, ethnic or national origin, religious or philosophical belief. In 2020-21 a designated trustee from the Board was appointed as the Diversity and Inclusion Champion to support work on this agenda. EMPLOYEE INVOLVEME seeks to engage all employees, and otheT5 who work there, in tts activities and achievements. There are regular management, company and departmental staff meetings and emailed information notes. Senior manager5 meet the Execvtive Teèm ￿lce weekly and communicate relevant information to their staff. FUNDRAISING CFT is committed to ensuring that its fundraising activtties are Ca￿led out with the upmost integrity and tskes account of the Charty Commission Code of Fundraising Prartice. CFT is registered with the Fundraising Regulator and works to its stsndards of charitsble fundraising to ensure honesty and transparerbcy With our donors, and that fundraising activities are legal, respectFul, open, honest and accountable to the public. We manage our own intemal complaints process to agreed procedures, and report to the Fundraising Regulator annual￿. In temis of steps tsken to protect vulnerable people and other members of the public (from fundraisin9 behaviourwhich would be an unreasonable intrusion on a person's privacy, unreasonably persistentorplace undue pressure on a personto 9tve money orotherpropertyl, we have appropriate internal training, proceduresand review processes in place to meetthese requirements. During 2020- 21, there were no fundraising complaints recorded. CHICHESTER FESTIVAL THEATRE - 31 MARCH 2021 All volunLiry fijndraising at CFT is Ca￿led by an intemally managed Development team, 5UPPOrted bythe DevelopmentAdvisory Committee. Further infomiation on the 2020-21fundraising financial contribution 15 provided on page 15. manages its PrNacy Policy and dats management in in line with GDPR compliance as of 25 May 2018. MONITORING AND ErfALUATION Our business plan and key objertives are activety monitored by the ExecLrtive and Senior ManagementTeam and an update is provided to the Board in the form of a Management Report to all Board meetings in addition to regular reporting to ACE and CDC. In 2020-21 the Executive Team and Board also reviewed CFT'S Board govemance guidance and intemal risk register, developing a new section to addres5 the Covid-19 ongoing and possible future risks that may continue post the immediate pandemic. continues to collect information about its current and potential audience, unifying insights and report5 across the CRM system, through tts ACE-ftJnded Audience Finder, and on our webslte and social ¢hanne15, to enable monitoring of audiences and to make posltive changes. In addition, we took part in nationwide surveys to gather dats on audience views on retuming to live cultural events. A robust complaints and compliments process is in place to monitor audience responses. All complainants receNe a response within three working days, duly logged on our Customer Relationship Management System. Regular Family and Access forums are held, collating feedback to infom) worl and our LEAP programme is monitored through the ACE Quality Principles Framework. The Senior Management Team benchmark against other theatres and participate actively in reviews within the sector, sharing Statistics and best prartice. HEALTH AND SAFErY CFf ha5 a policy to provide safe and healthy working condition51 equipment and systems of workfor all employee5. We aim to do this through our policy, training and supervision. Our Health & Safety policy and record is reviewed annually intemally and by the Board, and a shortversion of the Health & Safety Policy is provided to Vis￿n9 companies and Company Managers. The Health & Safety Committee meets every fortnight. We maintain and keep our Emergency Plan and securty measures under regular review in the light of national securtty and local police guidance, reporting to the Board on key changes. Training is carried out for all new Front-of-House and Box Office staff and the Theatre Managerwork5 With the South East CounterTerrorism Unit which offers training and advice. SAFEGUARDING CHILDREN CFT has a Child, Young Person (CYP) & Vulnerable Young Adult Protection Policy complying with regulations around the supervision of children and child=adult ratios. There is a designated Child Protertion OfFicer and Depw at CFf and a system for DBS update checks and Safeguarding awareness for all adults (including chaperones) working with CYP and vulnerable adults. 28 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 In addition, in 2020-24 a designatedtrvsteeonthe boardwasappointed astheSafeguarding Trustee and CFT'S policy was reviewed bythe Board. TRUSTEES'TRANSAcfioNS The Board of Trusteesoperatestoa written Codeof Conductand separatefom)al Conflirtof Interests Policy to ensure that the highest standards of transparency are maintained. From time to time, Trustees, or persons connected with them, may enter into transartionswith CFT in the normal course of busines5 of both parties. Such transartions are conducted on an ami's lenWh basis, on normal commercial terms and are managed in accordancewith the specific provisions of our policies and our Memorandum and Articles of As50Ciation. A15 Trustees and the senior management team are required to make declarations of interestto the Company to assist in identfying conflirts of interest or loyalty, declaring such conflirts at the start of any Board meetings. In addrcion, an annual update of Twstee and Related Party interests is maintained and reviewed by the Chaim)an of the Board. The notes to the Financial Statements give detsils of donations by Trustees and of the liabilty insurance taken out on behalf of the Trustees. Trustees are encouraged to attend perfomiances in order to fvlfil their dity to assess CFT'S perfomiance and. to this end, can receive free of charge a maximum of two tickets for productions originated by CFT. VOLUNTEERS AND FRIENDS CFT is very gratefvl for tts communty of volunteers who cary olrt spectfic voluntary activities, including help with fundraising. archiving and administration duties. Their contribution helps build our sense of community and assists our operational efficiency. Our volunteer team are Since￿lY thanked forthe work they do. also encourages the public to subscribe to become members of the Friends of the Theatre, in return forwhich incentives are gwen to bookseèts, and to participate in specific events organised for them. AUDrroR Haysmacintyre LLP were appointsd to continue as the Companls auditor. 29 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 TRUSTEES, RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS Statement of responsibilities of the Trustees of Chichester Festival Theatre in respect of the Trustee< annual report and the financial statements The Trustees are responsible for p￿paring the Trustees, Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial ststements for each financial year. Under that law they have are required to prepare the group and parent company financial statements in accordance with UK Accounting Standards and applicable law IUK Generally Accepted Accounting Practice), includin9 FRS 102 The Financial Reportlll9 Standard applicable in the UK and Republic of Ireland. Undercompany law theTrustees must notapprove the financial statements unlessthey are satisfied that they give a true and fair view of the state of affairs of the group and charitable company and of the group's excess of expenditure over income for that period. In preparing each of the group and charitable company financial statements, the Tnjstees are required to.. selert suitable accounting policies and therb applythem consistentlyi make judgements and estimates that are reasonable and pnjdent,. stste whether applicable UK Accounting Standards have been followed, subjectto any material departures disclosed and explained in the financial ststements,. and asses5the group's and thecharitsblec0mpan￿Sab1ItytoCOntlnUe asa going concem, disclosing, as applicable, matters related to going concem,- and L15e the going concern basis of accounting unless they either intend to liquidate the group orthe charitsble company orto cease operations, or have no realistic alternative butto do so. TheTrustees are re5ponsiblefor keeping adequate accounting record5thatare sufficienttoshow and explain the charitsble companystransartions and disclose with reasonable accuracy at any time the Pinancial position of the charitable company and enable them to ensure that its financial ststements comply with the Companies Art 2006. They are responsible for such intemal control as they determine is necessary to enable the preparation of financial ststements that are free from material misstatement, whether due to fraud orerror, and have general responsibility fortaking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detert fraud and other irregularities. By Order of the Board Bill Castell Chair of the Board of Trustee5 16 July 2021 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 INDEPENDENT AUDITOR'S REPORTTOTHE MEMBERS OF CHICHESTER FESTIVAL THEATRE Independent auditorfs reportto the members of the Chicherter Festival Theatre Opinion We have audited thefinancial statements of Chichester FestNal Theatre for the year ended 31 March 2021 which comprise the Con501idated Income and Expenditure Account, the Con501idated Statement of Financial Activities, The Consolidated and Company Balance Sheets, the Consolidated Cash Flow Statement, and notes to the financial ststements, 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 Stsndards, including Financial Reporting Stsndard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Prartice). In our opinion, the financial ststements= give a tnje and fair view of the state of the group and parent charitsble companvs affairs as at 31 March 2021 and of the group's net movement in funds, including the income and expendrture, forthe yearthen ended- have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting Prartice," and have been prepared in accordance with the reqvirements of the Companie5 Act 2006. Ba515 for opinion We condutted ouraudit in accordance with International Standardson Auditing IUKI (Is￿{uK)I and applicable law. Our responsibil￿e$ under those standards are further described in the Auditorfs responsibilities forthe audit of the financial ststements section of our report. We are independentof the charitable company in accordance with the ethical requirements that are relevantto our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fiJFPilled our other ethical responsibilrfcies 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. Conclusion5 relating to going concern In auditing the financial ststements, we have concluded that the trustees. use of the going concem basis of accounting in the preparation of thefinancial statements is appropriate. Based on the work we have perfomied, we have not identiPied any material uncertainties relating to events or condrtion5 that, individually or collertivelyi may cast 519nificant doubt on the charitable companvs abilty to continue as a going concem ft)r a period of at least ￿e1ve months from when the financial statements are aLrthorisedfor issue. Our responsibilities and the responsibilitie5 of the trustees with respect to going concern are described in the relevant sertions of this report. Other inforniation The trustee5 are responsible for the other information. The other information comprises the information included in the Trustees, Report. Our opinion on the financial statements does not cover the other infomiation and, except to the extent otheNise explicrtly ststed in our repor( we do not express any fomi of assurance conclusion thereon. 31 CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 In connection with our audit of the financial statements, our re5ponsibilty is to read the other infomiation and, in doing so, consider whether the other infomation is materially inconsistent with the financial statementsorour knowledge obtained in the auditorotherwise appear5to be materially misstated. If we identify s¢Jch material inconslstencies or appa￿nt material misstatements, we are reqUI￿d to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this Other infomation, we are required to report thatfart. We have nothing to report in this regard. Opinion5 Qn othermatters pre5cribedbythe CompaniesArt2006 In our opinion, based on the work undertaken in the course of the audit.. the infomiation given in the Twstees. Report (which include5 the strategic report and the dirertors, report prepared for the purposes of company lawl for the financial year for which the financial statements are prepared is consistent with the financial statements. and the strategic report and the dirertors, report included within the Trustees, Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitsble company and its environment obtained in the course of the audiL we have not identified material misstatements in the Trustees, Report (which incorporates the strategic reportand the directors, report). We have nothing to report in respertof the following matters in relation to which the CompaniesArt 2006 require5 US to reportto you rf, in our opinion.. adequate accounting records have not been kept by the parent charitable company, or retum5 adequate for our audit have not been received from branches not visited by us],. or the charitable company financial statements are not in agreement wtth the accounting records and returns,. or ertain disclosures of trustees, remuneration specified by law are not made,. or we have not received all the infom)ation and explanations we require forouraudit Responsibilities of trusteesforthe financial ststements As explained more fully in the trustees. responsibilities statemenL the trustees {who are also the directors of the charitsble company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satispied thatthey give a true and fairview, and for such internal control asthe trustees detemiine is necessaryto enable the preparation of financial statements that are free fmm material mis5tatemenL whether due to fraud or error. In preparing the financial ststements, the trustees are responsible for a55e55ing the charitable companls abilty to continue as a going concern, disclosing, as applicable. matter5 related to going concem and using the going concern basisof accounting vnlessthetrustee5 either intend to liquidate the charitable company orto cease operations, or have no realistic alternative but to do so. Auditorfs responsibiltties forthe audit of thefinancial statements Our objectives are to obtain reasonable assurance aboutwhetherthefinancial ststements as a whole are free from material misstatemenL whether due to fraud or error, and to issue an audrtorfs report that includes our opinion. Reasonable assurance is a high level of assurance, butls not a guarantee that an audit condurted in accordance with ISAS (UK) will always detert a material misstatement when it exists. Misstatements can arisefrom fraud orerror and are conSide￿d material if, individually or in the aggregate, they could reasonably be experted to influence the economic decisions of users tsken on the basis of these financial ststements. CHICHESTER FESTIVAL THEATRE- 31 MARCH 2021 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 extenttowhich our procedures are capable of detecting irregulartties, including fraud is detailed below- Based on our understsnding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Companie5 Act 2006 and the Charities Art 2011 and we considered the extent to which non- compliance might have a material effect on the financial statements. We also considered other factors such as income ta& payroll tax and sales tax. We evaluated managemenys incerrtives and opportunities for fvaudulent manipulation of the financial ststements (including the risk of override of controls), and concluded that the risk was low. Audit procedures perfomied by the engagementteam included: Discussions with management including consideration of known or suspected instsnces of non-complian￿ with laws and regulation and fraud,. Evaluating management's controls designed to prevent and detett irregularities- Identifying and testing jovma15, in particular joumal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions,. and Challenging assumptions and judgements made by management in their critical accounting estimates AfiJrther description of our responsibiltties forthe audit of the financial Statements 15 located on the Financial Reportin9 Council's website at: www.frc. audtto nsibilities. This description fom)s part of our audttorfs report. Useof ourreport This report is made solely to the charitable companvs members, as a bodyi in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audrc work has been undertaken so that we might state to the charitable companvs members those matters we are required to State to them in an Auditovs reportand forno other PUTpose. Tothe fulle5textent permitted by law, we do notaccept or assume respon5ibilty to anyone otherthan the charitable company and the charitable company's members as a bodyi forour auditworl forthis repo¢ orforthe opinions we have formed. Steven Harper Isenlor Statutory Audftor} For and on behalf of Haysmacintyre LLP. Statutory Auditors Date: 22 July 2021 10 Queen Street Place London EC4R IAG 33 CHICHEsfÈR FEMVAL ThEATRE INCOME AND EXPENDMIRE ACCOUI (Not fornilrpJ part of the audtted F(naml stslem￿ts) FOR THE YEAR ENDED 31 MARCH 2021 2021 2020 Tumover IrKome ftom &)x th7ke Incon* fnm Leamiw, Edu(JUon and PartWeth)n (LEAP) Spon9)rshlp and FuThJra&ThJ ath Front￿f-1K)￿￿e Inwrre Catering In(x)rr Other IncoTr 437,231 55037 1,998,455 11,IS5 31,354 9,191,177 307,485 1,804,596 503,8 1,692,788 214 308 13 714 213 Ci%t of Pr(Kludor Aborted costs prfNlded kn 2020 SOFA Add￿nal abort&J co Less savlngs attilbutabk trj TWTe Tax le￿r cate￿n9 Theatre operathM and LEAP (x5*5 dewthtyon PrO￿l fundlng for restrkted & a(tN Front-of-IK)use Fundrn&NJ 393,123 700,000 376.571 {228,410) 42,914 ¥484,526 337,147 219,536 373 870 5 699 276 11,139,864 {913,6701 1ffj16,635 1,650,534 353,611 327,549 14 554 429 G*Jveman Ow*lng Dellclt forthe year (3,274W4) 1958,8221 lrte¥est on nom)al trèJiNJ 45,396 71,128 PubHc sector gtBTrts ￿CeN 3.043,765 1,927,964 (Deficlt) I surplus belore deprtci (185,282) 1,040,270 Depr￿t￿)n (1.101059) {1,119,385) Defklt after Intrres¥ publlcsertor grants and depreciatlon. 1.287.341 Reconciliation to Statement of HThandal Actlvltles (SOFA) Income and &perKif(ure defkjt at#) {1,287,341) {79,115) Return from Investh*nt In w(￿u￿0[￿% Prfor year over deprecfjatbn VAT p￿slon reductDn from RENEW (zpwal Aborted costs ￿ FestNal 2020 11,318 99,301 336.916 700,000 61,436 (700,tK)01 Net [eXP￿dIE￿We) I Income 139 The purm of tn(x)rre ar￿ ExFeTrJthre K((MJnt I1￿ & to stKsw the adual rtsuig re￿11￿ to each year exd￿in9 Jtem5 that, for aCcoun￿ng reguLitknn reagxs. Iwve to te sh)wn kn the Corts)IhJatèJ Slatem￿t of {￿FA} Ixrt are unrelyted to the year In questhn. Items rela￿ng to d￿re￿nt yeaws ty crtrt5Kk the 9))pe of rwJmMI otffithxs a￿ e￿d￿jed from the L&E and art shown In the recoKllat1￿ to the SOFA. the lEto￿l￿7￿￿ r(ans are £7￿.1￿￿) cl aborted costs relatlTrJ io the oJnEnt year t￿ause, folk)wlng Accounyng 5tsTrJards, these had to be Inckkled in 2019120 9)FA even ljwh these (o&s ￿late to the ojnent year. A&) Indlxled Is the wtlte back of £336.916 rf the proV￿￿)n for repHyrrent of VAT ar￿[￿ fn)rn the RENEW project. The VAT recovered at the trme of the RENEW pffj￿ &, &$ an HMRC aliustsd annualty over a perlod of 9 years {lTr sltes of IO% each year) to the act￿al VAT ￿very ratts cakulated In eath year. Due to the p3ndemt and the very k)w exempt orfte I￿rne, the rate of VAT recovery cwrrent year vrd5 eJlrerrEty hwJh ￿ r851JltrvJ In ￿r￿J. CHICHESTER FESTIVAL THEAThE CONSOLIDATED sfATEMENT OF FINANCtAL AcnvrriES (SOFA) FOR THE YEAR ENDED 31 MARCH 2021 2021 2020 Toial INCOME FROM: Lknations aThJ LegacEs Income from a)arftabk ott￿ Trajlro *vttias IntorrÈ from Invthents Grants 1.624015 566W3 6182B 301W &925,055 $66A33 61828 45?96 I>U765 1,31w,on 9,876,190 2,2n,109 71,128 1,927,964 393,385 1,701,457 9,876,190 2,273,109 71,128 1,927,964 3,043,765 301 77 15 456 463 393 385 15 849 848 EXPENDrnIRE ON. RaisirvJ funds tharita￿e Anallary and subsId￿ry 373￿71 3n071 4.081,516 ¥065W7 5,147.363 379,￿6 13,038,232 1,980,184 379.906 1,169,205 14,207,437 1,980,184 TOTAL 717 L065 15 398 322 1 169 205 16 567 527 INCOME I (EXPENDrruRE) 625JIOI (76W7) {139M16) 58,141 (775,820) 1717,679) TRANSFERS BEfwEEN RINDS Other gains l (log￿) NET MOVEME1￿ IN RINDS 625,001 (764807) {139W6) 58,141 (775,820) {717,679) TOTAL FUNDS BROUGHT FORWARD 10,514,245 13A57.942 23,97I187 10,456,104 14,233,762 24,689,866 TOTAL AJNDS CAR￿ED FORWARD 16 11 139 246 1 135 23 10 514 245 13 457 942 23 972 187 Contlnulno opttatkjns During the year all were (x)ntinuiNJ. CHICHESTER FEsllvAL ThEATrE CONSOLIDATED BALANCE SHEEr AS AT 31 MARCH 2021 2021 2020 TangitrAe assets 730,552 19,628,IK stoths Debtors Cash at bankand in haThJ li 12 13 718 801,568 7 766.470 ,756 1,125,453 8 329 125 9,455,578 Credrtors.. amounts f311ing due With￿ orr ye3r 14 Net CY￿ert agsets 927 5 011395 23,931381 24,072,187 Provlslons for Ilabllltles 15 (100.000) iioo,lx￿) 2303¥81 23 972,187 RESERVES 16 16 Ih46,275 9.691971 11.139.246 1243,559 9 270 686 10,514,245 Total unrestr￿￿1 16 IW3,lJ5 13,457,942 Total group funds 23,972 187 These finanaal statemeThts were a[￿￿1 arKJ auttxxwl trythe PA)ard on 16 Juty 2021 a￿ on ts tehalf ty: SSr Wlllkm C&dl Company numtEr: 4210225 anty nUrn￿r.. I[￿8552 CHICHESTER FESIIVAL THEATrE COMPANY BALANCE SHEEr AS Af31 MARCH 2021 2021 2020 Tangitde assets 730.552 19,628, io 730￿54 19,628,tKJ6 Current 459¢ts li 12 718 871106 Detknr5 Cash at bank aThJ In haTrJ 1,144.917 567 9,446,277 Credttors.. ar￿Unts ￿lir@ due within 14 3 365 513 Iy96 27 Total zssets less ￿rnnt Ila1￿111[eS 23.93¥81 24,072,187 Provlslons for Ilabllltleg 15 {100,000) (loo,￿J) N•t ass•ts 23￿3¥81 23,972 187 RESERVES Unrestritted Designatsj Total Unrthicbj 16 16 IA46,275 971 11,139,246 1,243,559 9 270 686 10,514,245 16 14693.135 13,457,942 Total tharlty funds 23A33381 23 972,187 The parenttharlty had a forts y63r rf £139￿￿ (2019120 (Wwit £717,679). These flnanclal siatem* were ap[￿(￿￿ auttK¥s&l for ￿e ty Its Board 0fTn5t￿ on 16 ju￿ 2021 and a￿ SVJr￿ on ty: Sir William C&ell Company numter: 4210225 Charfty numter.. 1088552 37 CHICHEsfER FEStIVAL ThEATRE CONSOUDATED CASH FLOW STATEMErir ASAT 31 MARCH 2021 Recondllatlon tjl F￿t Incomlny resour￿ to net 11,251,351) 11,172,359) 10326,195 1164638 617.365 4n.210 41 ICHEsfER FESmlAL ThEAIRk NOTEST07HE FIIWIUAL sfATEMEifFS FOR ThE YEAR ENDED 31 MAROI 2021 FinarKe r(tsi Dweknptmt arA5 Commerd* and tradTrJ &*AJe5c+Até FrDnt.(¢.tr￿u* tr¥diNJ 29,917 1)).142 ,917 130,142 76L876 215,29D 1,251,351 1013,227 21S, 2 423 710 2021 2020 Turr Ctst(*S other Imi OlherCo*s 3W2 (3¥354) Im2,788 11.463,5161 I,￿9 IZSM) 32 17,771) lJ,517 li54,￿> aid d*jI￿ C￿￿nI CLvr*rt lthll 7U39 (74291} ),3031 N2t O&*llide511 a*s Irt*sUrbJ In 2121 L324.425 {45518353 6,931,on (7,W,7421 Cc&ofsa Tlth TaK Cwrenta55Ets Cwpentlkiblths 22B.525 2¥524 913,785 1913,7B41 2DU W¢esand 4ar*s ial CL*5 774,455 247,170 ui 3.5￿,797 302,429 42 C•IICHEsfER FEsfivAL THEATRE NOTESTOTHE FllNANc￿ sfATEMEllfS FOR THE YEARENDED3X IDZI 2020 NL￿1 86 52 87 Se￿￿31 strff an aThn￿￿ed ba*VAsa5f￿tr. 21 2020 EfA),(KX)to £700 £7a,(th1ts É8ODX) EIlYJ,l￿ iD £llO.f ÉLIo.c￿ to £120,( TL*al Irt0d2fi￿d tyN*•*e5*ve É149,7131201*. £155J56 Pensun paytrwts ai 31 M¥th 2021 to £111 P)J.' E17P*). tktswa5£lY4120XTr. E2,5441. (%￿￿)￿[rrnTllkn￿￿I￿4EII6J d￿roJtr*￿{zD￿. ÉWW). At 31 Narth JJ20 Nddwr6 L9aA732 I￿311 135loqO 27fi86,151 120,X At31 Marth 2011 At 31 Marth B)20 rJkirEe for the year dtsp05ats s￿1￿5 fL)7*YJ 1,741D55 187.715 05&147 L017.758 137 139.118 At31 March IQ21 17&6 27 3￿711 14oibookvaluo At31 W20 I41￿1 359 19 At31 Marth 2021 241 93L60D 730 552 In 2(W. NJts C￿￿1 an arn￿rt £510,69J by (d è Iltsl Ihe &iIlirvJ, £12,￿,[￿j ty TrRan5 has￿ ￿£1,228,￿ th¥ge fhv th2 F&Nall*Je*la WrwJ rhvth2 au tts prcyertyat¥J CHIUIEsfER FESIIVALIHEATrE 140TE5TOThE FINANUILsfATEMEKfS FOR THEYEAR ENtJÉD 31 bllRCH 2021 2021 (Mlmry L*£L ￿. AtWrnlrvJ rfy Atendof ye are 5EtoutnTK*e 5. 11 stockn. Gfwpandcompnny 2021 2020 718 12 Deknr4 2021 57.745 155,f 57.74S 153,951 934,788 41,092 026.940 116 954,762 394Y i￿.?83 871106 I.1￿.453 1,144,917 13 8oL* 16 20 3U.295 6L947 815 13L710 361￿77 1212 1.167, 3X3A95 61947 18¥815 Ui.296 255,5Y9 131212 L167,363 L47,159 3 299 753 9L7 3.36%513 299.763 (LM2891 8d.686 6,160 duringthe year Eef￿reA INnmeataroJ durlw DefLYred I￿￿￿(athed ¢(vRrd at 31 MJth 3)21 Atbegithw t&wJ WI)TESTOThE FINNJICIALSfATrIEirrs FOR THEYEARENDED31 MAROI ￿21 16 •t31 M•rth 2021 Tvwwfqr 31 •l*ff*2021 192 379,312 I9￿57 3S5A14 11,716,786 d75,n8 arKI RknaY5* ￿1th¥j 14888} 173ffj06ZI (289,977) ZL920 PrWI F￿11r￿j prwVKe 474,rn 19ts,9V 103 li￿5,135 9857 4819,917 211203 3,%0.ty)O IL318 SpIege￿ertfu￿j oelNer*1￿ F￿ 419A34 (242YJI 394164 (wg)) 4¥217 9,691971 I45￿9 5J3l519 14691586) {4￿117) L446.2YS 9n187 (5.78Xfj 2VJ3l3BI on be u58J ob￿ts af Its Crn dsyth d the er*Td. Tr TrL&eeg •ti i% ￿ rnjlntan ￿ffident fund5 the C￿pary arml ¥%411 reswwes fLth Tnkn cr￿r the 10 be Wu*e trTr Comparfs 16 and 25. It k5 ertlsw Ihattt*wO tewl•i 2 Ld dep￿0*h￿l. fuiuo.yuth &COmn￿r￿¥aTh￿ ty. CHI￿ESfER FESILVNITHEATRE NOTE5TOTHE FINAN(JAL sfATOIEIIYS FOR THEYEAR ENDED 31 MAROI 202L iknup Company YÈarto 31 2020 1119 Tr¥* 31 Matth 2020 19. 19,357 379,312 12,446, 474,778 {23￿} 13,176.911 451974 Fro￿*F￿￿1 1351fiYI 14,23Y,762 393, (L169.2 13.457,942 Bulldirys a￿1 dlbphJaVM 3.W,&g) 145,419 (3. 3.983, 2Lk885 I￿(y)D I,5￿,￿) 61.4 i&19 fuThl sple￿￿ltert fu IJN),CO) 426,924 177 no ral 1433.Dl 14P3S￿l2 (15384*54 Inll(Kx)I 1243,559 15 23 972 187 SWI,845 14, 1184161 63L,781 19,628,006 9.446.277 15,W2,0%1 7.9W15 (3.365,513) 6JJ,915 8A67.340 (3,365,Sk3) CArreni l¢bil tenn 10.514245 13.457.942 23 971187 exceedlw EIO. At31 Marth 2021, thewthrd I7(￿￿. 191 20 AnaWofdbAwesln (a At31 Marth 20 Cth h) htThJ 8,37J.125 (5616551 7,76V70 dela& Ell￿ fee fora rewthtYJ. CHI¢HESrni FLSILVAL ThEATrE NI)TESTO YHE FINANCIAL WATEMEF115 FOR ThÉ YEARENDED 31 IIARCH IOZI Enter￿￿ ￿￿ted ICFM th￿<￿[E Éth (Im,CO￿ In coverth2 costofdlrethng t145￿￿￿e extrpy￿￿ drcum#a aF¥Jtkot ftts¥&llbe Y￿ er￿1FtE (202Tr. £121517). 3020 Parait tharfty ￿lFth1 14157L ParentchBr1ty n* Iroth 47