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2022-03-31-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 2022

QUEENS HALL ARTS

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Rachel Adam
Philip Garner
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 - 9
Independent examiner's report 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 26

QUEENS HALL ARTS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

The trustees present their annual report and financial statements for the year ended 31 March 2022.

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 2022

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 mission of QHA is to be the creative heart of the community, and despite 2021/22 continuing to be very challenging in the context of the Covid-19 pandemic, this mission remained heart and centre of board and staff decisions during the year, as we supported the return of audiences and staff to the building. QHA not only reopened the venue but also completed a major capital project to create a new Studio Theatre and reconfigure the backstage areas to ensure they are accessible for all.

Whilst attendance to live events and exhibitions at 18,360 was considerably lower than usual, QHA were able to adapt provision to offer digital engagement at a level not seen in previous years (18,366 digital engagements).

The majority of group activity remained online or outside until 2022 and where activity was possible numbers were restricted to allow social distancing. Some activity continued to remain online to protect vulnerable participants. Work with schools and other community organisations took ingenuity and adaptability to create projects which could change according to the Covid restrictions.

The pandemic led to the cancellation of more than 34% of performances in Quarter 3 alone, as tours were delayed and rescheduled. In Autumn/Winter 2021/22, audience numbers were restricted for over 50% of performances to allow customers to socially distance. Audience numbers remained below pre-Covid levels, and there was a particular impact on older audiences. Until Spring 2022, we required staff, freelancers and performers to test daily. Absences due to isolating impacted delivery and led to further delays and cancellations.

Covid and the roll out of central government’s Plan B particularly impacted on the Christmas Show despite advance sales getting off to a healthy start. Over 39% of tickets were purchased more than 4 weeks before the first show date and this compared very positively with 23% in 2019. Promotion of the Christmas Show was supported by an Early Bird Offer which sold over 400 tickets and earlier distribution of print and communication with schools. However, once numbers of Covid 19 cases began to rise locally and information was sent from councils to schools and guardians, booking momentum fell considerably alongside group cancellations and increased refund requests. Over 500 tickets were refunded across public and school performances (including 3 cancelled performances) with a value of over £5500. The number of tickets sold per day gradually decreased from around 100 a day to under 100 per week, at a time which would normally be the busiest period for sales.

Our capital project was also impacted by the pandemic with a considerable overrun of five months and a resulting increase in costs. QHA reopened for performances before the work was complete with staff moving out of the offices to provide replacement dressing rooms and rehearsal spaces.

Despite these considerable challenges the staff and board of QHA worked together to adapt the organisation to respond effectively and positively. The main focus of 2021/22 was directed towards:

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

Managing a phased re-opening after shutdown

To ensure that the staff and the building were ready for the public to return in August 2021 there was a considerable amount of planning and preparation required. This included:

Reconnecting with audiences

Planning the physical re-opening was just one piece in the jigsaw. The creation and delivery of a strategic welcome back campaign was vital to re-engaging with our audiences and giving them the confidence to return. This campaign began months before the first performances with a suite of posters on the outside of the building, accompanied by a campaign on our social media channels.

To help our audiences feel more confident in returning to live performance we put in place Covid security protocols and communicated these clearly. We also amended our refund policy so that people could request a refund at any point, which helped to de-risk ticket purchases.

Engaging with communities

Following on from the strategic planning undertaken in 2020/21, QHA focussed intensively on engagement with communities in and around Hexham. Through three key projects we co-created artistic content with a variety of partners:

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

Strengthening organisational resilience

It was vital during 2021/22 to strengthen QHA to ensure it could thrive despite the uncertainties of the outside world. This activity was formed into 3 main strands:

Investing in our creative community

Throughout 2021/22 QHA has continued to invest in the North East cultural sector through:

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

Financial resilience

Despite the financial challenges of 2021/22, with reduced income from theatre space rental, creative tenants, café bar and ticket sales, QHA has continued to be financially prudent and viable. We made full use of the furlough and flexi-furlough schemes for staff as well expanding our fundraising activity both with individuals and organisations.

Financial review

The income and expenditure account on page 11 shows a deficit of £62,320 on unrestricted funds of total income to total resources expended before transfers. Designated funds shows a deficit of £137,998 for the year before transfers.

Risk Assessment

The trustees will continue 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 2022

Reserves policy

QHA’s financial reserve is a risk management measure designed to provide for orderly management of the organisation’s affairs in the event of unplanned financial stress.

The Charity Commission advises charities to consider holding an unrestricted reserve equivalent to between three and six months’ running costs, depending on the nature and size of the organisation.

The size of QHA’s reserve should be sufficient to cover essential needs in an emergency situation – for example a period of extended illness, the withdrawal of a major funding source, a pandemic, or in the worst case, the winding down of operations if the organisation becomes financially unviable. It should however not be so large as to tie up funds which should be being used in proper ordinary pursuit of the company’s charitable objects. The size of the reserve should also be proportionate to the scale of QHA’s total turnover, to the assessed level of risk against which it is a safeguard, and to the achievability of setting aside the determined amount.

The QHA reserve allocation will be actively managed as part of our regular budgeting processes, keeping under review the calculations and assessment of risks on which it is based, and adjusting these as necessary.

Project budgets may have a specified contingency line, depending on specifically judged levels of uncertainty that may apply in an individual case. Such contingency provisions have a different purpose and are not part of the general financial reserve, although they may be reported as “restricted reserves” for the purposes of the accounts.

In addition to holding an unrestricted general reserve as provided by this Policy, QHA may also hold such “designated reserves” as may be considered prudent for particular purposes, including but not limited to building renovations, other major capital developments, and planned programmes of activity defined in the Business Plan that take place over multiple years.

Policy provisions

(i) QHA will seek to maintain an unrestricted financial reserve equivalent to the average core operating costs for three months of the organisation’s normal operation, funded by an allocation from available unrestricted funds.

(ii) This target should be achieved by the end of the budget year 2023-24 with the aim of maintaining it thereafter.

(iii) The calculation of average core operating costs for this purpose will take into account all predictable recurring costs such as staff salaries, benefits and expenses, building running costs and service charges. The calculation will be updated each year as part of the approval of the annual budget.

(iv) The progressive allocation of funds towards the reserve, and the status of the reserve, will be shown in regular financial reports provided to the Board.

(v) Use of the funds held in the reserve will, when possible, be approved in advance by the Finance and Risk Committee and reported to the Board. In cases of greater urgency when such advance approval is not possible, a decision to draw on the funds held in the reserve may be made by the Artistic Director/Chief Executive in consultation with the Chair of the Finance and Risk Committee and the Chair of the Board of Trustees.

(vi) Following any use of the funds in the reserve in line with paragraph (v) above, the Board may determine the steps to be taken to replenish the funds so used in order to return the reserve to its target level, and the timeframe within which this replenishment should be achieved.

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

Plans for the future

The major challenge for QHA over the next financial year will be the continued impact of Covid and the fiscal pressures on the cost of living. It will be vital that QHA continues to be fleet of foot in responding to the changing needs of our communities, and remains relevant by co-producing work through a variety of partnerships. QHA aspires to expand our reach across Northumberland and the wider North in terms of networking and also working in partnership with culture and heritage organisations. The main focus of the organisation will be:

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management

Queens Hall Arts is a company limited by guarantee governed by its Memorandum and Articles of Association dated 2009. 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:

Susan Martin (Resigned 5 September 2022) David Pritchard (Resigned 5 September 2022) Kathryn Nicholson Philip Garner Jonathan Tull Derek Kennedy (NCC) (Resigned 6 April 2021) Antony Newton Clare Forsythe (Resigned 6 April 2021) Rachel Adam (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.

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: -

There is no structural connection between the companies.

QUEENS HALL ARTS

TRUSTEES' REPORT (CONTINUED) (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

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' report was approved by the Board of Trustees.

Rachel Adam

Chair 22 December 2022

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 2022.

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 ICAS, 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: 22 December 2022

QUEENS HALL ARTS

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted
Designated
Restricted
funds
funds
funds
Notes
£
£
£
Income and endowments from:
Grants and donations
2
275,957
-
429,546
Operation of arts services
3
187,275
-
-
Investments
4
18
-
-
Other income
5
11,050
-
-
Total income and endowments
474,300
-
429,546
Expenditure on:
Raising funds
6
-
-
-
Charitable activities
7
536,620
137,998
133,537
Total resources expended
536,620
137,998
133,537
Net (outgoing)/incoming
resources before transfers
(62,320)
(137,998)
296,009
Gross transfers between funds
753,336
(76,276)
(677,060)
Net income/(expenditure) for the year/
Net movement in funds
691,016
(214,274)
(381,051)
Fund balances at start of financial
year
265,149
233,557
469,951
Fund balances at end of
financial year
956,165
19,283
88,900		 Total
2022
£
705,503
187,275
18
11,050
903,846
-
808,155
808,155
95,691
-
95,691
968,657
1,064,348		 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

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 2022

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 - Free reserves
Unrestricted funds - Non liquid reserves		 2022
£
£
829,067
-
112,515
251,738
364,253
(128,972)
235,281
1,064,348
88,900
19,283
127,098
829,067
1,064,348		 2021
£
£
556,641
900
42,248
443,564
486,712
(74,696)
412,016
968,657
469,951
233,557
220,506
44,643
968,657		 2021
£
£
556,641
900
42,248
443,564
486,712
(74,696)
412,016
968,657
469,951
233,557
220,506
44,643
968,657
968,657
469,951
233,557
220,506
44,643
968,657

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 2022.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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 22 December 2022

Rachel Adam

Trustee

Company Registration No. 03929839

QUEENS HALL ARTS

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

2022
Notes
£
£
Cash flows from operating activities
Cash generated from operations
19
149,672
Investing activities
Capital additions
(341,516)
Investment income received
18
Net cash (used in)/generated from
investing activities
(341,498)
Net cash used in financing activities
-
Net (decrease)/increase in cash and cash
equivalents
(191,826)
Cash and cash equivalents at beginning of year
443,564
Cash and cash equivalents at end of year
251,738		 2021
£
-
44		 £
296,181
44
-
296,225
147,339
443,564

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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

The 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 2022/23, 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 2022

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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.

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

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 retirement benefit schemes are charged as an expense as they fall due. The contributions relate to one employee. The scheme is not open for others to join.

The payments in respect of the workplace pension are charged as an expense in the period they relate to.

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

2 Grants and donations

Unrestricted
Restricted
funds
funds
£
£
Donations and gifts
- General donations
1,986
-
- Donations Studio Project
5,000
-
Grants receivable for core activities
- Northumberland County Council
111,778
-
- Arts Council England
135,077
-
Other project income
-
429,546
Job Retention Scheme Support
22,116
-
Covid Support from Government, Local Authorites
and other bodies
-
-
275,957
429,546
For the year ended 31 March 2021
603,639
60,406
Other Project Income
Re Studio Project
Garfield Weston Foundation
-
-
Foyle Foundation
-
25,000
Arts Council England - Small Capital Grant
-
299,876
Other Projects
The Kellet Fund/The Wellesley Trust Fund at the
Community Foundation
-
-
Future Arts Centres (Here and Now)
-
-
Arts Council England Recovery Grant Money
-
-
Grants < £10,000 (See Note 15)
-
15,670
Hexham Hign Street Heritage Action Zone (NCC)
-
10,000
Keychange Project (Youth Music)
-
49,000
Northumberland County Council - Illuminated Sheep
-
30,000
-
429,546
Covid Support from Government, Local Authorities and other bodies
NCC Covid-19 Business Grants
-
-
Arts Council England Emergency Responce Fund
-
-
Power to Change Covid Grant
-
-
Culture Recovery Fund Round 1
-
-
-
-		 Total
2022
£
1,986
5,000
111,778
135,077
429,546
22,116
-
705,503
-
25,000
299,876
-
-
-
15,670
10,000
49,000
30,000
429,546
-
-
-
-
-		 Total
2021
£
6,439
5,000
98,528
120,321
110,406
87,616
235,735
664,045
664,045
50,000
-
14,576
19,430
12,000
10,000
4,400
-
-
-
110,406
41,500
36,428
25,000
132,807
235,735

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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
2022 2022 2022 2022 2022 2021
£ £ £ £ £ £
Sales within charitable
activities 108,003 73,326 1,855 4,091 187,275 61,896
For the year ended 31 March 2021
Ticket sales
Theatre and
Front of house
Recharge		 Total
and
room hire and
sales and
income		 2021
commission library service
commission
charges
£ £ £ £ £
Sales within charitable activities 7,182 54,655 10 49 61,896
Analysis by fund
Unrestricted funds 7,182 54,655 10 49 61,896
4 Investments
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Interest receivable 18 44
5 Other income
2022 2021
£ £
Cafe franchise and service charges 2,550 732
Museum and Galleries Exhibition Tax Credits 8,500 7,500
11,050 8,232

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

6 Raising funds

Fundraising and publicity
Staff costs		 Total
Designated
Restricted
funds
funds
2022
2021
2021
£
£
£
-
12,000
16,850
-
12,000
16,850		 Total
2021
£
28,850
28,850

There were no staff costs in the current year relating to publicity as freelancers are now used.

7 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		 2022
£
269,085
69,090
392,969
731,144
77,011
808,155
536,620
137,998
133,537
808,155		 2021
£
213,214
21,258
145,546
380,018
2,500
382,518
329,786
721
52,011
382,518

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 2022

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		 2022
Number
12
2022
£
180,627
6,508
81,950
269,085		 2021
Number
13
2021
£
198,898
7,413
18,903
225,214

Full time equivalent of these employees equated to 9 (2021 - 9).

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

10 Tangible fixed assets

Tangible fixed assets
Leasehold
property
improvements
£
Cost
At 1 April 2021
700,266
Additions
250,317
At 31 March 2022
950,583
Depreciation and impairment
At 1 April 2021
161,858
Depreciation charged in the year
32,320
At 31 March 2022
194,178
Carrying amount
At 31 March 2022
756,405
At 31 March 2021
538,408		 Plant and
machinery
£
44,942
-
44,942
43,212
1,596
44,808
134
1,730		 Fixtures,
fittings &
equipment
£
68,118
91,199
159,317
51,615
35,174
86,789
72,528
16,503		 Total
£
813,326
341,516
1,154,842
256,685
69,090
325,775
829,067
556,641

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 2022

11 Stocks

Raw materials and consumables
12
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Provision for purchase credit note
13
Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals and deferred income		 2022
£
-
2022
£
39,036
67,397
6,082
112,515
2022
£
46,324
14,276
68,372
128,972		 2021
£
900
2021
£
12,431
29,817
-
42,248
2021
£
8,600
9,836
56,260
74,696

14 Retirement benefit schemes

The charity operates a defined benefit pension scheme for all qualifying employees (1 Employee). The scheme is not open for others to join. The assets of the scheme are held separately from those of the charity in an independently administered fund. Other employees are included in the workplace pension defined contribution scheme operated by NEST. The charity makes contributions to this pension scheme and acts as an agent in collecting and paying over both the employee and employer contributions.

The charge to profit and loss in respect of all pension schemes was £19,950 (2021 - £18,903).

There is also a charge for pension lump sum payments of £62,000. This relates to a liability paid after the year end together with a provision for future liabilities.

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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
2020
r
£
Capital Grant Funds
463,828
New Capital Grant Fund - Studio
Project
-
Capital Grant Funds
463,828
The Kellett Fund/The Wellesley
Trust Fund at the Community
Foundation serving Tyne & Wear
and Northumberland
10,328
ACE - Studio Grant
-
Reach - Audience Development
-
Start
-
Emma Newton
-
The 1989 Willian Charitable Trust
3,000
Community Foundation
-
Theatre Tickets for Kids
1,250
Illuminated Sheep
-
Youth Music
-
Animating Hexham
-
Here and Now
-
ACE Recovery Grant Money
-
478,406		 Movement in funds
Incoming
esources
Resources
expended
Transfers
Investments
gains/losses
Balance at
1 April
2021
r
£
£
£
£
£
-
(6,027)
-
-
457,801
-
-
-
-
-
-
(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		 Movement in funds
Incoming
esources
Resources
expended
Transfers
Investments
gains/losses
Balance at
31 March
2022
£
£
£
£
£
-
(6,027)
(451,774)
-
-
324,876
(99,590)
(225,286)
-
-
324,876
(105,617)
(677,060)
-
-
-
(10,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(900)
-
-
-
3,000
(3,000)
-
-
-
-
-
-
-
-
12,670
(2,770)
-
-
9,900
-
(1,250)
-
-
-
30,000
-
-
30,000
49,000
-
-
-
49,000
10,000
(10,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
429,546
(133,537)
(677,060)
-
88,900		 Movement in funds
Incoming
esources
Resources
expended
Transfers
Investments
gains/losses
Balance at
31 March
2022
£
£
£
£
£
-
(6,027)
(451,774)
-
-
324,876
(99,590)
(225,286)
-
-
324,876
(105,617)
(677,060)
-
-
-
(10,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(900)
-
-
-
3,000
(3,000)
-
-
-
-
-
-
-
-
12,670
(2,770)
-
-
9,900
-
(1,250)
-
-
-
30,000
-
-
30,000
49,000
-
-
-
49,000
10,000
(10,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
429,546
(133,537)
(677,060)
-
88,900
-
-
-
-
-
-
-
9,900
-
30,000
49,000
-
-
-
88,900

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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 and have now been transferred to unrestricted funds.

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.

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.

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

Arts Council England 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 - Arts Council England and Future Arts Centres funding to marking The National Lottery’s 25th birthday.

Arts Council England 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.

Community Foundation - funding to support artistic activity for older people.

Illuminated Sheep - is local authority match funding to support a county-wide visual art trail.

Youth Music - is funding to support the creation of a youth led music festival.

Animating Hexham - is funding from Historic England and Arts Council England to support a pilot animation festival.

The Small Capital Grant Fund - is funding from Arts Council England, Garfield Weston Foundation and the Foyle Foundation which created a new Studio Theatre and reconfigured backstage areas to ensure that they are accessible for all.

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

16
Analysis of net assets between funds
Unrestricted
funds
Designated
funds
Restricted
funds
2022
2022
2022
£
£
£
Fund balances at 31 March 2022 are represented
by:
Tangible assets
829,067
-
-
Current assets/(liabilities)
127,098
19,283
88,900
956,165
19,283
88,900		 Total
Unrestricted
funds
Designated
funds
2022
2021
2021
£
£
£
829,067
44,643
54,197
235,281
220,506
179,360
1,064,348
265,149
233,557		 Restricted
funds
2021
£
457,801
12,150
469,951		 Total
2021
£
556,641
412,016
968,657

The restricted fund balance represents cash set aside for various projects.

QUEENS HALL ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

17 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:

Balance at
1 April
2020
Resources
expended
£
£
Capital Refurbishment -
Toilets
29,823
(394)
Phase 2 Development Project
25,095
(327)
Building Development Fund
6,005
-
Mark Jon Bolderson
Percussion Fund
1,205
-
Art with Heart
3,132
-
Dementia Friendly Activity
11,440
-
Children's Theatre Outreach
3,500
-
Arts Council Catalyst Match
55,000
(12,000)
Covid Reserve
-
-
135,200
(12,721)		 Transfers
Balance at
1 April
2021
Resources
expended
£
£
£
-
29,429
(394)
-
24,768
(327)
36,078
42,083
-
-
1,205
(1,205)
-
3,132
(3,132)
-
11,440
(11,440)
-
3,500
(3,500)
-
43,000
(43,000)
75,000
75,000
(75,000)
111,078
233,557
(137,998)		 Transfers
Balance at
31 March
2022
£
£
(29,035)
-
(24,441)
-
(22,800)
19,283
-
-
-
-
-
-
-
-
-
-
-
-
(76,276)
19,283		 Transfers
Balance at
31 March
2022
£
£
(29,035)
-
(24,441)
-
(22,800)
19,283
-
-
-
-
-
-
-
-
-
-
-
-
(76,276)
19,283
19,283

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. These funds have now been transferred to unrestricted funds.

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. Part of this reserve has been utilised to cover the increased costs during the development of the Studio.

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

Covid Reserve - these funds were expended on mitigating 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 2022

18 Related party transactions

There were no disclosable related party transactions during the year (2021 - 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
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Cash generated from operations		 2022
£
95,691
(18)
721
68,369
900
(70,267)
54,276
149,672		 2021
£
322,849
(44)
721
20,537
2,600
3,847
(54,329)
296,181