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2021-03-31-accounts

Charity Registration No. 1088975

Company Registration No. 03929839 (England and Wales)

QUEENS HALL ARTS

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

QUEENS HALL ARTS

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Rachel Adam
Clare Forsythe
Philip Garner
Derek Kennedy
Angeline Lucas
Gary Lyons
Susan Martin
Anthony Newton
Kathryn Nicholson
David Pritchard
Jonathan Tull
Lynn Turner
Secretary Katy Taylor
Charity number 1088975
Company number 03929839
Principal address Beaumont Street
Hexham
Northumberland
NE46 3LS
Registered office Beaumont Street
Hexham
Northumberland
NE46 3LS
Independent examiner J Hart
Stokoe Rodger LLP
St Matthews House
Haugh Lane
Hexham
Northumberland
NE46 3PU
Bankers Barclays Bank Plc
Priestpopple
Hexham
Northumberland
NE46 1PE
Solicitors Nicholson Portnell
Priestpopple House
Hexham
Northumberland
NE46 1PL

QUEENS HALL ARTS

CONTENTS

Page
Trustees' report 1 - 11
Independent examiner's report 12
Statement of financial activities 13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16 - 27

QUEENS HALL ARTS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their report and financial statements for the year ended 31 March 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016) .

Objectives and activities

The company's objectives are:-

To advance public education and appreciation of the arts in all their forms, particularly but not exclusively, for the benefit of the people in the Counties of Northumberland, Cumbria, Tyne & Wear and Durham through the provision, maintenance and management of Queen's Hall Arts Centre, Hexham and by any other charitable means that the trustees may from time to time think fit.

In 2016 a new mission statement was agreed by the Trustees. This informed delivery subsequently provided the structure for successful medium-term funding bids to Arts Council England and Northumberland County Council.

OUR MISSION is to be the creative heart of the community delivering great arts experiences and supporting professional and aspiring artists.

THE CREATIVE HEART OF THE COMMUNITY

GREAT ARTS EXPERIENCES

SUPPORTING PROFESSIONAL AND ASPIRING ARTISTS

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

Public benefit

Queen's Hall Arts is committed to the educational and social advancements that benefit from its activities and to making those activities as accessible as possible. We provide year round participatory activities both in community and educational settings. The artistic programme at the arts centre includes a range of events which reflect a wide variety of local interests, creating opportunities for audiences and performers. Our ticket pricing policy includes discounts to students, and those on low incomes. Exhibitions in the gallery are free. We provide and subsidise outreached events to small communities across a large part of Northumberland.

Achievements and performance

The annual report for 2020/21 is significantly different from previous reports as it covers the period of the Covid-19 global pandemic. Queens Hall Arts (QHA) closed their doors in mid-March 2020 and remained closed until it was legal, practical and financially viable to reopen in August 2021. The restrictions on venues opening and the availability of exhibitions and performances meant that QHA was closed to the public for the whole of the period covered by this annual report.

QHA is heavily reliant on earned income, from ticket sales, room hire and secondary spend and thus the organisation faced significant losses in 2020/21. To support QHA to weather the storm of Covid-19 a working group was created, meeting weekly online, comprised of trustees and staff.

To enable the working group to focus, QHA’s mission was condensed to:

OUR MISSION is to be the creative heart of the community delivering great arts experiences, building creative partnerships, and supporting professional and aspiring artists. We will provide a welcoming and stimulating environment for all to experience a broad range of arts activities, which are entertaining and engaging (both on and off-line).

We will engage fully with our diverse community and create resources that are accessible to a large rural catchment area.

We will present and commission work of the highest possible standard informed by our community.

The focus of the organisation during this financial year covered the following areas:

1. Financial viability

2. Staying connected with our community and audiences

3. Supporting the creative sector in region

4. Presenting and commissioning quality artistic work

5. Planning the reopening of the arts centre

The performance of QHA in 2020/21 will be assessed in line with these priorities.

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

Financial viability

Covid-19 had an immediate & devastating impact on QHA with the cancellation of all programming and events, resulting in significant immediate losses, including:

It was obvious that that the working group needed to mitigate these financial losses and build reserves to support the reopening of QHA and ensure a viable future for the organisation.

To these ends, QHA were able to use the government’s Job Retention Scheme to support staff whose roles were operational, including box office, technical and outreach. The Artistic Director/CEO and the General Manager were the only staff who were not placed on the furlough scheme, and continued to work from home. As the furlough scheme was developed QHA used flexi-furlough to bring back some staff for particular projects or tasks.

QHA also reviewed all non-essential expenditure and made savings on utilities costs by switching lighting and heating suppliers, as well as cancelling non-essential services such as waste collection. QHA were also able to raise over £4,400 from donations, mainly through converted ticket sales.

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The next strategic stage was for QHA to apply for grant support and this included successful bids to:

During 2019, QHA secured £206,000, from ACE, towards a £275,000 capital project to address issues with the building which negatively impact on accessibility, programming and financial sustainability. The capital project, Opening Doors, focused on the studio theatre, backstage and circulation spaces. There was limited access to our studio space, inadequate circulation for wheelchairs and poor signage and other requirements for people with other disabilities, and no disabled access at all to our stage door and main stage area. Opening Doors addressed all of these issues through a programme of capital works to enable QHA to welcome everyone into the building and to offer a diverse range of programming. Work was due to commence in the Summer of 2020 but was inevitably impacted by Covid19 in terms of both securing match funding and implementing the capital works.

After an initial period of stabilisation, QHA recommenced work on this project (new completion date October 2021), with successful applications to ACE (Capital Kickstart Fund) £30,651 and Foyle Foundation £25,000 for match funding.

Through the focused activity on financial sustainability, QHA have been able to remain financially viable and build reserves to support the organisation into the future

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

Staying connected with our community and audiences

Despite enforced closure of the venue throughout 2020/21 QHA has continued to offer programmes of activity for communities, many reaching beyond those able to engage with culture digitally. By delivering via phone and post as well as online, QHA have ensured that some of the most vulnerable communities are supported to maintain social connections and active involvement in creative activity.

QHA continued to support 3 youth theatre groups, Tam Lin Youth Folk Band and 3 youth music projects in partnership with Hexham based Core Music.

The Projectors is the regular youth theatre for young people aged between 16 and 25 years with Autism Spectrum Disorder (ASD) and/or communication difficulties, funded by The Wellesley Trust Fund. The group took well to Zoom, working on whole-group activities as well as in smaller groups. The group focused on writing a new piece, which was rehearsed, filmed and uploaded onto the QHA website and will be performed live when the venue reopens

Members of QHA’s Youth Theatre groups engaged with ‘Lockdown’, an online project exploring young peoples’ experiences of being locked down in a rural county. The group have written/devised their own piece of work which was filmed. In addition, youth theatre started the Cultural Conversation project. In partnership with Hexham Book Festival, QHA youth theatre connected with Latvian youth theatre students as the 1st phase of a 3-year project.

QHA’s Creative Age project was delivered through a combination of online workshops and posted-out activity packs. The primary aim of the project remained to reach out to and engage with older people (age 50+) at risk of loneliness and isolation. The project has become even more valuable to regular participants during the pandemic as many are vulnerable due to age and/or underlying health conditions and are unable/unwilling to leave their homes. Creative Age provides a lifeline in terms of links to others and regular weekly activities, as well as providing a sense of purpose in relation to making and sharing (virtually) items made with others.

Following the success of their previous writing courses for young people, Queen’s Hall Arts and Hexham Book Festival teamed up to offer five free on-line masterclasses. The line-up included song-writing, poetry and prose. The young people went on to be mentored and supported in recording their own work.

The community engagement element of Animating Hexham, a pilot project delivered in partnership with Northumberland County Council and Historic England, commenced at the end of this financial year with the selection the 6 animation commissions and recruitment of community animators.

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

Supporting the creative sector in the region

QHA was well positioned to maintain, establish and develop cross-sector partnerships, contributing to the rebuilding of our economy and communities through activity supporting employment, education, mental health and town centre vibrancy.

QHA has continued to employ over 15 freelance creative professionals to deliver sessions and services including songwriter, fundraiser, marketing support and workshop leaders. In addition, our digital platform commissioned 12 artists and Christmas with the Hobs provided that work for 11 creative professionals from the North East including an animator, actors, producer and musical director.

Throughout this year QHA has not only maintained existing networks, but strengthened them:

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

Presenting and commissioning quality artistic work

2018/19 saw QHA create the organisation’s first in-house Christmas Production. This is part of 5-year strategic plan which focuses on Christmas productions and creates opportunities to generate earned income and reach a broad audience, particularly people who are traditionally low engagers with theatre and the arts. The first production, A Viking Christmas, provided work for 12 performers/creative professionals from the North. In 2020/21, Northumberland Commissioning Hub, commissioned a writer to create the script for the 2021 Christmas production.

With no opportunity to present a Christmas production on the stage in 2020, QHA worked in partnership with Alnwick Playhouse and Berwick Maltings to created their first animation project – The Hobs at Christmas . For QHA alone this resulted in engagement with 20 schools, 1 care home, the Great North Children’s Hospital and over 1500 views from the general public. 65% of bookings were from NE postcodes, others were from as far afield as Belfast, Inverness, Wales and Brighton, Montreal, California, Prague and Barcelona.

QHA and ARC Stockton co-commissioned Kitchen Zoo to make 8 online episodes for families available over the Easter Holidays 2021. Bumbling About is a series of pocket-sized online stories and crafts about busy bees aimed at 3-7 year olds and their families

Unsung Heroes was QHA’s contribution to Here and Now, a national and local celebration of culture within communities. 40 brand new projects took place in and around 40 arts centres across the country, led by artists and co-created with local people.

The QHA project was supported by ACE and Future Arts Centres, marking The National Lottery’s 25th birthday. For it, songwriter Bridie Jackson worked with communities in and around Hexham to collect stories about the everyday people who have inspired them. These stories were transformed into song and recorded by local musicians. This project will culminate in ‘mini gigs’ wherever they are simply by pointing their camera phone at a postcard which will make the musicians pop up to perform the songs on a ‘postcard stage’. As well as a smartphone app, there will also be an interactive exhibition at the Queen’s Hall in early 2022.

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

Planning reopening of the arts centre

Throughout 2020/21 QHA have refined plans to reopen the venue for performances, exhibitions and groups. This planning has been adapted in response to government guidance and the customer feedback, both from QHA and national research. The QHA plans to reopen in 3 phases:

PHASE 1(May/July 2021) Staff and building prepared for reopening.

Using flexi-furlough to bring staff back to undertake specific tasks

Update staff training

Strategic planning days for staff team

Prepare building for COVID secure re-opening

Blended working for office-based staff

Welcoming back plan for audiences

PHASE 2 (August 2021)

Volunteer induction and training

Plan to reopen bar and front of house sales

Small-scale exhibition in Gallery 1

Showcase events working in partnership with English Folk Expo.

Data collection to support audience development plan

PHASE 3 (Sept 2021)

All staff return to contract hours

Seasonal programme of events, exhibitions and workshops fully launched.

Season launch

Detailed timeline for Audience Development plan

Financial review

The income and expenditure account on page 12 shows a surplus of £232,947 on unrestricted funds of total income to total resources expended. Designated funds shows a surplus of £98,357 for the year. The Restricted and Designated funds will cushion the financial impact of the long lasting effects of the global pandemic. This will also ensure that QHA does not become vulnerable to short and medium term spending cuts.

Risk Assessment

The Trustees to conduct an annual risk management review and put in place any required plans or procedures. As licensed premises the Queen's Hall is subject to regular inspection from statutory and other regulatory bodies to ensure compliance and good practice in a number of areas including health and safety, environmental heath, and management of performing rights. Financial reports are produced by management on a quarterly basis and presented to board meetings. These reports are also subject to scrutiny by the Finance and Risk Committee.

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

Reserves policy

During this exceptional year the board has built reserves beyond the usual as laid out in historic reserves policy. These additional reserves will protect the organisation during the uncertainty of reopening and welcoming audiences back. The board recognise that will be continuing impacts from the pandemic beyond 2021 including booking and spending patterns, additional staff training and covid security expenses, as well as restrictions or reductions in public funding. In order to ensure that QHA remains financially viable in the medium term, the board viewed it as prudent to build additional reserves.

Plans for the future

The major challenge for QHA will be the period between re-opening and rebuilding earned income to previous levels, which we expect to take up to two years. QHA can make a huge contribution to the recovery of our community. The breadth of our programmes, including live performance, creative learning activities, festivals, exhibitions and community-led events, enables the organisation to engage people from across the demographic spectrum. QHA has a wide reach across the North East both in terms of networking and also working in partnership with culture and heritage. QHA can also act as an incubator for creative talent, supporting many freelance artists and practitioners to develop and share their practice.

Our future plans include:

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management

Queens Hall Arts is a company limited by guarantee governed by its Memorandum and Articles of Association dated 2 009 . It is registered as a charity with the Charity Commission. There are currently 8 members, each of whom agree to contribute £1.00 in the event of the charity winding up. The members are also the directors of the limited company.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Simon Frith (Resigned 25 January 2021) Andrew Harvey (Resigned 24 January 2021) Susan Martin David Pritchard Kathryn Nicholson Philip Garner Jonathan Tull Derek Kennedy (NCC) Antony Newton (Appointed 25 January 2021) Clare Forsythe (Appointed 25 January 2021) Rachel Adams (Appointed 13 July 2021) Angeline Lucas (Appointed 13 July 2021) Lynn Turner (Appointed 13 October 2021) Gary Lyons (Appointed 13 October 2021)

The appointment of trustees is set out in the Articles of Association:Nominated Member:1 by Northumberland County Council - (NCC) Elected Members:Between 4 and 11 Members by resolution in a general meeting and/or co-opted at a meeting of the Board.

The recruitment of new members is periodically undertaken by the Board, which follows an open and fair recruitment process taking due account of the skills needed by the company and the desire for its membership to reflect the diversity of the local population.

Nominees appointed by the local authority are subject to the appointment processes of this body and the guidelines on appointment to public office as they apply to local government nominees.

The Board of directors, which can have between 5 -12 members, administers the charity. The Board meets approximately every 2 months and there are committees covering Finance & Risk, Operations and External Relations which meet regularly. Additionally there are working groups which act in an advisory capacity. A chief executive, the Artistic Director, is appointed by the trustees to manage the day to day operations of the charity. To facilitate effective operations, the Artistic Director has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and artistic programme.

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The charity has a close relationship with Northumberland County Council and Arts Council England. These two bodies provide essential core funding to the company. Ongoing funding is subject to annual reviews and agreements on performance targets.

The Queen's Hall, where the bulk of the company's activities take place, is leased from Northumberland County Council, at a peppercorn rent.

The company operates sub-leases at the Queen's Hall: -

To Customer Services, Northumberland CC.

To cafe operators, which under the terms of its lease is required to provide agreed levels of service to arts centre users (in addition to its independent commercial operations).

To small start-up companies in the Creative Spaces area.

There is no structural connection between the companies.

Asset cover for funds

Note 17 sets out an analysis of the assets attributable to the various funds and a description of those funds. These assets are sufficient to meet the charity's obligations on a fund by fund basis.

The trustees' r eport was approved by the Board of Trustees.

Jonathan Tull

Chair 10 December 2021

QUEENS HALL ARTS

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF QUEENS HALL ARTS

I report to the trustees on my examination of the financial statements of Queens Hall Arts (the charity) for the year ended 31 March 2021.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

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

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

J Hart Stokoe Rodger LLP

St Matthews House Haugh Lane Hexham Northumberland NE46 3PU

Dated: 10 December 2021

QUEENS HALL ARTS

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Designated
Restricted
funds
funds
funds
Notes
£
£
£
Income and endowments from:
Grants and donations
2
603,639
-
60,406
Operation of arts services
3
61,896
-
-
Investments
4
44
-
-
Other income
5
8,232
-
-
Total income and endowments
673,811
-
60,406
Expenditure on:
Raising funds
6
-
12,000
16,850
Charitable activities
7
329,786
721
52,011
Total resources expended
329,786
12,721
68,861
Net incoming/(outgoing)
resources before transfers
344,025
(12,721)
(8,455)
Gross transfers between funds
(111,078)
111,078
-
Net income/(expenditure) for the year/
Net movement in funds
232,947
98,357
(8,455)
Fund balances at start of
financial year
32,202
135,200
478,406
Fund balances at end of
financial year
265,149
233,557
469,951		 Total
2021
£
664,045
61,896
44
8,232
734,217
28,850
382,518
411,368
322,849
-
322,849
645,808
968,657		 Total
2020
£
351,590
380,726
116
25,846
758,278
19,097
698,531
717,628
40,650
-
40,650
605,158
645,808

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

QUEENS HALL ARTS

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
10
Current assets
Stocks
11
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within
one year
13
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
15
Designated funds
Unrestricted funds		 2021
£
900
42,248
443,564
486,712
(74,696)		 2020
£
£
556,641
3,500
46,095
147,339
196,934
(129,025)
412,016
968,657
469,951
233,557
265,149
968,657		 £
577,899
67,909
645,808
478,406
135,200
32,202
645,808

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 10 December 2021

Jonathan Tull Trustee

Company Registration No. 03929839

QUEENS HALL ARTS

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from operations
19
Investing activities
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
44		 £
296,181
44
-
296,225
147,339
443,564		 2020
£
116		 £
54,814
116
-
54,930
92,409
147,339

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Company information

Queens Hall Arts is a private company limited by guarantee incorporated in England and Wales. It is registered as a charity with the Charity Commission. The registered office is Beaumont Street, Hexham, Northumberland, NE46 3LS.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

T he trustees, having regard to the nature, size and complexity of the charity, have assessed the financial risks affecting the charity and its operations for the 12 months from approval of the accounts, taking into account the core funding from Northumberland County Council being renewed annually and the core funding from Arts Council England being agreed until 20 20 / 21 , and thus consider it appropriate to prepare accounts on a going concern basis.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt.

Grants are recognised in full in the financial period to which it relates, in accordance with the offer letter from the appropriate funding body.

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.5 Resources expended

All expenditure is accounted for on an accruals basis and has been classified under the headings that aggregate all costs to that category. Charitable activity costs includes expenditure relating to the operation of the theatre and art centre and includes both the direct costs and support costs relating to these activities. Support costs include central function expenditure. Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold property improvements Over the length of the lease or 10% per annum straight line Plant and machinery 25% per annum straight line Fixtures, fittings & equipment 25% per annum straight line

1.7 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

2 Grants and donations

Unrestricted Designated
Restricted
funds
funds
funds
£
£
£
Donations and gifts
11,439
-
-
Grants receivable for core activities
- Northumberland County Council
98,528
-
-
- Arts Council England
120,321
-
-
Other project income
50,000
-
60,406
Other
-
-
-
Job Retention Scheme Support
87,616
-
-
Covid Support from Government,
Local Authorites and other bodies
235,735
-
-
603,639
-
60,406
For the year ended 31 March 2020
230,032
84,220
37,338
Other Project Income
Garfield Weston Foundation
50,000
-
-
The Kellet Fund/The Wellesley Trust
Fund at the Comminuity Foundation
-
-
19,430
ACE Studio Grant
-
-
14,576
Here and Now
-
-
12,000
ACE Recovery Grant Money
-
-
10,000
Grants < £10,000 (See Note 15)
-
-
4,400
Arts Council Catalyst Match
-
-
-
Designated < £10,000 (See Note 16)
-
-
-
50,000
-
60,406
Covid Support from Government, Local Authorities and other bodies
NCC Covid-19 Business Grants
41,500
-
-
Art Council England Emergency
Responce Fund
36,428
-
-
Power to Change Covid Grant
25,000
-
-
Culture Recovery Fund Round 1
132,807
-
-
235,735
-
-		 Total
2021
£
11,439
98,528
120,321
110,406
-
87,616
235,735
664,045
50,000
19,430
14,576
12,000
10,000
4,400
-
-
110,406
41,500
36,428
25,000
132,807
235,735		 Total
2020
£
34,793
92,915
118,147
100,876
3,660
1,199
-
351,590
351,590
-
20,500
-
-
-
16,838
63,302
236
100,876
-
-
-
-
-

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

3 Operation of arts services

Ticket sales Ticket sales
Theatre and
Front of house
Recharge		 Total Total
and
room hire and
sales and
income
commission
library service
commission
charges
2021
2021
2021
2021		 2021 2020
£
£
£
£		 £ £
Sales within charitable
activities 7,182
54,655
10
49		 61,896
380,726
For the year ended 31 March 2020
Ticket sales
Theatre and
Front of house		 Recharge Total
and
room hire and
sales and		 income 2020
commission
library service
commission
charges
£
£
£		 £ £
Sales within charitable activities 227,820
90,715
54,267		 7,924
380,726
Analysis by fund
Unrestricted funds 227,820
90,715
54,267		 7,924
380,726
4 Investments
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 44 116
5 Other income
2021 2020
£ £
Cafe franchise and service charges 732 25,846
Museum and Galleries Exhibition Tax Credits 7,500 -
8,232 25,846

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

6 Raising funds

Designated
Restricted
funds
funds
2021
2021
£
£
Fundraising and publicity
Staff costs
12,000
16,850
Support costs
-
-
Fundraising and publicity
12,000
16,850
12,000
16,850
Charitable activities
Staff costs
Depreciation and impairment
Operation of arts services - activities undertaken directly and support costs
Governance costs
Analysis by fund
Unrestricted funds
Designated funds
Restricted funds		 Total
Restricted
funds
2021
2020
£
£
28,850
18,476
-
621
28,850
19,097
28,850
19,097
2021
2020
£
£
213,214
238,656
21,258
21,258
145,546
436,117
380,018
696,031
2,500
2,500
382,518
698,531
329,786
645,632
721
19,737
52,011
33,162
382,518
698,531

7 Charitable activities

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

9 Employees

Number of employees

The average monthly number of employees during the year was:

Art Centre Activities
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
13
2021
£
198,898
7,413
18,903
225,214		 2020
Number
14
2020
£
225,763
11,139
20,230
257,132

Full time equivalent of these employees equated to 9 (20 20 - 9).

There were no employees whose annual remuneration was £60,000 or more.

10 Tangible fixed assets

Leasehold
property
improvements
Plant and
machinery
Fixtures,
fittings &
equipment
£
£
£
Cost
At 1 April 2020
700,266
44,942
68,118
At 31 March 2021
700,266
44,942
68,118
Depreciation and impairment
At 1 April 2020
154,570
41,616
39,241
Depreciation charged in the year
7,288
1,596
12,374
At 31 March 2021
161,858
43,212
51,615
Carrying amount
At 31 March 2021
538,408
1,730
16,503
At 31 March 2020
545,696
3,326
28,877		 Total
£
813,326
813,326
235,427
21,258
256,685
556,641
577,899

All tangible fixed assets are used in furtherance of the Charity's Objects.

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

11 Stocks

Raw materials and consumables
12
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
13
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
900
2021
£
12,431
29,817
42,248
2021
£
-
8,600
9,836
56,260
74,696		 2020
£
3,500
2020
£
11,586
34,509
46,095
2020
£
7,920
21,704
27,266
72,135
129,025

14 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit and loss in respect of defined contribution schemes was £18,903 (2020 - £20,230).

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

15 Restricted funds

The income funds of the charity include restricted funds comprising the following balances of donations and grants held on trust for specific purposes:

Balance at
1 April 2019

£
Capital Grant Funds
469,855
The Kellett Fund/The Wellesley
Trust Fund at the Community
Foundation serving Tyne & Wear
and Northumberland
2,500
Catalyst Evolve, Arts Coucil
England
19,097
ACE - Studio Grant
-
Reach - Audience Development
-
Start
-
Journey to Jordon
1,875
The 1989 Willian Charitable Trust
-
Shears Foundation
-
Theatre Tickets for Kids
-
Future Arts Centres' Travel Grant
-
Sunderland Culture
-
HCP Vikings
-
Here and Now
-
ACE Recovery Grant Money
-
493,327		 Movement in funds
Incoming
resources
Resources
expended
Transfers Investments
gains/losses
Balance at
1 April 2020

£
£
£
£
£
-
(6,027)
-
-
463,828
20,500
(12,672)
-
-
10,328
-
(19,097)
-
-
-
-
-
-
-
-
-
-
-
-
-
1,198
(1,198)
-
-
-
-
(1,875)
-
-
-
3,000
-
-
-
3,000
1,990
(1,990)
-
-
-
1,750
(500)
-
-
1,250
500
(500)
-
-
-
5,000
(5,000)
-
-
-
3,400
(3,400)
-
-
-
-
-
-
-
-
-
-
-
-
-
37,338
(52,259)
-
-
478,406		 Movement in funds
Incoming
resources
Resources
expended
Transfers Investments
gains/losses
Balance at
31 March
2021
£
£
£
£
£
-
(6,027)
-
-
457,801
19,430
(19,758)
-
-
10,000
-
-
-
-
-
14,576
(14,576)
-
-
-
3,000
(3,000)
-
-
-
900
-
-
-
900
500
(500)
-
-
-
-
(3,000)
-
-
-
-
-
-
-
-
-
-
-
-
1,250
-
-
-
-
-
-
-
-
-
-
-
-
-
12,000
(12,000)
-
-
-
10,000
(10,000)
-
-
-
60,406
(68,861)
-
-
469,951

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

15 Restricted funds (Continued)

The capital grants from Northumberland County Council and Tynedale District Council, including the new Creative Spaces funds, together with phase one and two income, are for long term development, improvement and refurbishment of the Queens Hall. The resources expended represents the depreciation charge for the year on the these restricted fund fixed assets. All capital funds are represented by capital assets.

The Kellett Fund/The Wellesley Trust Fund at the Community Foundation serving Tyne & Wear and Northumberland - This represents grants received for the purposes of developing and delivering creative participatory projects in the community.

Catalyst Evolve, Arts Council England - This represents grant funding to expand fundraising capacity over a three year period.

Start - This represents income for the purposes of providing workshops and theatre tickets.

The 1989 Willian Charitable Trust - This represents grants received for the purposes of contributing to core costs to enhance and extend outreach and community work.

Shears Foundation - This represents grants received for the purposes of delivering creative environmental work in schools.

Theatre Tickets for Kids - This represents funding for the purposes of subsidising theatre tickets for schools in the local area.

Futures Arts Centres' Travel Grant - This represents funding for the purposes of of making connections to support international working.

Sunderland Culture - This represents grants received for the purposes of the production of "A Viking Christmas".

HCP Viking - This represents funding received for the purposes of the production of "A Viking Christmas".

ACE - Studio Grant - This was awarded for QHA Opening Doors Project which reconfigures the backstage, studio and dressing rooms to ensure they are accessible for performers, audiences and staff

Reach - Audience Development - This was funding to support marketing and outreach activity that reaches out to non-arts attenders.

Here and Now - ACE and Future Arts Centres funding to marking The National Lottery’s 25th birthday.

ACE Recovery Grant Money - funds to build reserves to replace those used early in the pandemic as well as build reserves to help support QHA through an uncertain future.

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

16 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement in funds
Balance at
1 April 2019
Incoming
resources
Resources
expended
Balance at
1 April 2020
Resources
expended
£
£
£
£
£
Capital Refurbishment -
Toilets
30,217
-
(394)
29,823
(394)
Phase 2 Development
Project
25,422
-
(327)
25,095
(327)
Building Development Fund
6,005
-
-
6,005
-
Mark Jon Bolderson
Percussion Fund
1,205
-
-
1,205
-
Art with Heart
7,868
236
(4,972)
3,132
-
Dementia Friendly Activity
-
15,682
(4,242)
11,440
-
Children's Theatre Outreach
-
5,000
(1,500)
3,500
-
Arts Council Catalyst Match
-
63,302
(8,302)
55,000
(12,000)
Covid Reserve
-
-
-
-
-
70,717
84,220
(19,737) 135,200
(12,721)		 Transfers
Balance at
31 March
2021
£
£
-
29,429
-
24,768
36,078
42,083
-
1,205
-
3,132
-
11,440
-
3,500
-
43,000
75,000
75,000
111,078
233,557

The Capital Refurbishment and the Phase 2 Development Funds represents funds previously set aside and expended for capital development, improvement and refurbishment of the Queens Hall. The resources expended represents the depreciation for the year on these designated fund fixed assets.

The Building Fund represents a provision set aside to finance larger periodical building maintenance and developments that are not carried out on an annual basis.

The Art With Heart Fund represents income to support projects associated with the subject of bereavement.

Dementia Friendly Activity represents funds set aside for the purposes of helping those with Dementia and their families access the venue and arts activities.

Childrens' Theatre Outreach represents funds set aside for the purpose of support Children and families access theatre.

Arts Council Catalyst Match represents funds set aside for the purpose of supporting fundraising and communications activity.

M J Bolderson Percussion Fund – funding to support young people access percussion performances and activity

Art with Heart – funding reserved for activity around the subject of bereavement

Covid Reserve - these funds are designated to mitigate the costs associated with reopening the venue including Covid security measures, restricted audiences, staff and volunteer training.

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

17 Analysis of net assets between funds

Unrestricted
funds
Designated
funds
Restricted
funds
2021
2021
2021
£
£
£
Fund balances at 31 March 2021 are represented
by:
Tangible assets
44,643
54,197
457,801
Current assets/(liabilities)
220,506
179,360
12,150
265,149
233,557
469,951		 TotalUnrestricted
funds
Designated
funds
Restricted
funds
2021
2020
2020
2020
£
£
£
£
556,641
59,153
54,918
463,828
412,016
(26,951)
80,282
14,578
968,657
32,202
135,200
478,406		 Total
2020
£
577,899
67,909
645,808

The restricted fund balance is made up of the cash expended on the capital development of the Queens Hall and cash set aside for other projects.

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

18 Related party transactions

There were no disclosable related party transactions during the year (2020 - none) .

19
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Amortisation and impairment of intangible assets
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in stocks
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Cash generated from operations		 2021
£
322,849
(44)
721
20,537
2,600
3,847
(54,329)
296,181		 2020
£
40,650
(116)
721
20,537
-
(31,627)
24,649
54,814