RICH MIX CULTURAL FOUNDATION IA Company Llmited by Guaranteg) CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Registered Charity No. 1089163 Company No. 4293133 RICH MIX CULTURAL FOUNDATION IA Company Lirnited by Guarantee) CONTENTS Report of the Trustees P8ge 2 Independent Auditoff s Report Page 17 Statement of Financial Activities Page 20 Balance Sheet Page 21 Slalement of Cash Flows Page 22 Notes lo the Financial Statements Page 23 **RICH MIX CULTURAL FOUNDATION** **(A Company Limited by Guarantee)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021** The Trustees present their report and accounts for the year ended 31 March 2021. The report has been prepared in accordance with the Charities Act 2011 and is also the report of the directors for the purposes of the Companies Act 2006. The financial statements have been prepared in accordance with the accounting policies set out in pages 23 to 26 and comply with the charitable company’s Memorandum and Articles of Association, applicable laws 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 United Kingdom and Republic of Ireland (FRS102). ## **Reference and administrative details** Rich Mix Cultural Foundation, commonly known as Rich Mix, is a company limited by guarantee and a registered charity. Company number 4293133 Charity number 1089163 Registered address 35-47 Bethnal Green Road, Shoreditch, London, E1 6LA. This is also the principal operating address. ## Directors and Trustees The directors of the charitable company (the charity) are its Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees. The Trustees serving during the year and since the year end are as follows: Cllr Amina Ali (London Borough of Tower Hamlets nominee) Shamim Azad Cllr Kevin Brady (London Borough of Tower Hamlets nominee) Chila Burman Sangna Chauhan (appointed Vice Chair 1 March 2021) Evelyn Curtin Deniz Harut Resigned 26 October 2020 Dylan Haskins Vineet Jasooja Denise Jones Niranjan Kamatkar Resigned 6 July 2020 Michael Keith (Chair) Judith Kilvington Appointed 27 September 2021 Jackie O’Sullivan Gavin Rose Resigned 17 December 2020 Ansuya Vezendy Sara Wallace 2 RICH MIX CULTURAL FOUNDATION (A Company Limited by Guaranteg) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 Reference and administrative details Icontinuedl Chief Executive and Company Secretary Auditor Judith Kilvington Buzzacott LLP 130 Wood Street London EC2V 6DL Bankers National Weslminsler Bank PLC 216 Bishopsgate London EC2M 4JH Governin document The charity is a company limited by guarantee and is govemed by ils Memorandum and Articles of Association, dated 25 Seplernber 2001, and amended by special resolution on 20 May 2002 and 25 October 2010. There are currently 14 members, each of whom agrees to contribute £1 in the event of the charity being wound up. Tradin subsidia The charity has a wholly owned trading subsidiary. Rich Mix Culluffil Enterprises Limited. The financial statements consolidate the results of the charity and ils subsidiary. The directors of the subsidiary are a sub-group of Trustees of the charity. ointsnent of Trustees The recruilmenl and appointment of new Trustees is handled by a working group, comprising the Chair, the Chief Executive and at least one other Trustee, which reports to the full Board. The working group considers and makes recommendations to the Board in accordance with guidelines agreed by the Board aimed at ensuring that an appropriate mix of skills, experience, backgiound and cliversily relevant lo the full scope of the charity's activities is in place on the Board and ils committees. In accordance with the Arbcles of Association, one quarter of the Trustees who have been longest in office retire al each Annual General Meeting. Trustee induction and trainin New Trustees are provided with an information pack lo briel them on their legal obligakn'ons under charity and company law, the content of the Memorandum and Articles of Association, the business plan and the recent financi81 performance of the charity. Trustees are also encouraged to visit the Rich Mix building to meet employees and to attend performances and in-house events. All Trustees are given a specific focus of responsibility (e.g. finano, marketing, fundraising, Capital projeclsl. Or anisalion The Boarcl of Trustees meets at least four limes a year lo consider and review all strategic and key p18nning decisions. At least two Trustees, or 300/0 of the Board, whichever is the greater, must be present for the meeting to be quorale. There are th￿e sub committees.. The Finance and Business Sub Committee IFABSI of the Board meets al least six limes a year. It has responsibility for the oversight of financial management and for monitoring overall performance in key business and trading areas. Any issues or concems around the charity's financial strategy are considered by the Sub Committee and formal recommendations are then made to the full Board who consider and ratify decisions at the Board meelings.The members of the Sub Committee are the directors of Rich Mix Cultural Enterprises. The Fundraising Sub Committee provides support and guidan￿ for capital and revenue fundraising activities. It meets at least quarterly. RICH MIX CULTURAL FOUNDATION IA Company Llmlted by Guarantee} REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 structure, go¥ernan¢e and management {continuedl The Capital Sub Committee oversees the development of the capital project including the delivery of the phased plans and milestones and monitoring the budget. An Artistic Sub Committee was formed in September 2021 to support Rich Mix's artistic vision. The Trustees, who act as directors for the purposes of the Companies Act, are not remunerated for their services. The chanty provides Direelors and Officers Liability Insurance. The Board delegates operational decisions lo the Executive Team, led by the Chief Executive, who are responsible for implementing the Board's decisions. and for the day-to-day management of the charity and the trading subsidiary. Ke mana ement ersonnel The key management personnel are.. the Board of Trustees and the Executive Team comprising the Chief Executive. Deputy CEO/Head of Marketing and Communications. and the Heads of Finance, Cinema and Operations, and Events and Production. When setting remuneration for ils staff the Trustees take into account market rates and other ￿levant data relating to arts charities of a similar scale and operation. Public benefit The primary objects of the Charity, as set out in the Articles of Association, are lo.. advance education of the public in art and culture of all types.. lo work towards the elimination of racial discrimination promote equality of opportunity and good relations between people of different racial groups, particularly by promoting events and activities lo fostèr inlercullural diversity of migrant communities and their contribution lo economic and cultural life particularly by establishing Rich Mix Centre as a home for exhibitions and by collecting, preserving and exhibiting items of educational value. The Board has given due consideration to the Charity Commission's published guidance on the Public Benefit requirement under section 17 of the Charities Act 2011 when reviewing the charity's aims and objectives and in planning future activities. The Board considers that all of the Charity's objeckn'ves deliver benefit to the public, as explained below. Impact of Covld-19 Covid-19 has had a significant impact on the activities of Rich Mix, usually a busy arts centre open 364 days a year. Our main operations and activities were affected as follows.. Our three ciriema screens closed for all bLJt bmo months., films were offered online Our Live programme was unable lo open for in person events Our Learning and Participation activities were delivered largely online from September Our Private hires programme closed until September The building was closed lo our tenants during April and May following the first lockdown. Throughout the period Rich Mix has furloLJghed employees and safeguarded as many jobs as possible. Our objectives as set out below remain unchanged. RICH MIX CULTURAL FOUNDATION IA Company Limited by Guaranteo) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 Objectives and activities Rich Mix is a vibmnl arts venue and creative hub in Shoredilch, East London. We deliver Culture for a Changing City, connecting some of the most adventurous and diverse audiences to a vital and exciting programme of eonlemporary culture. Our vision is to be East London's home for culture and creativity. We welcome the Communities of the world in East London to create, enjoy and share culture. Our work is underpinned by a set of values shared across the org8nisation'. Open. We are open, generous, accessible and welcoming. Inclusive. We champion equality and diversity and strive to represent, reflect and respect different voices and perspectives. Collaborative. We work in partnership with artists, companies and communities both locally and inlernalionally. Ambitious. We support ambitious artists and ideas in the belief that art and culture have the power lo bring people together. Creative. We nurture all forms of crealivily and we are also a creative force. We do this by using all the resources of the building. the skills of our staff, and those of our artistic partners to create an integrated organisalion which.. offers an ambitious, intemalional arts progfftmme including music, film, dance, spoken word, theatre and visual arts, and is representative of our local Tower Hamlets communities has a leaming and participation programme which reaches out lo children, schools, young people and families, from Tower Hamlets and beyond, lo give them opportunities to participate in a wide range of creative activities provides a commercial cinema programme, catering and spaces for hires and events and concessions and bars provides afforclable workspace lo a variety of commercial and nol-for-profil cultural and creative organisations builds partnerships with diverse artists and organisalions in order to achieve our arb'stic aims and support local talent development, particularly in BAME communities. Live Pro ramme Our live programme spans live music, spoken word, performance, theatre, dan￿, film, talks and visual art, whilst hosting many multi-disciplinary events and festivals. We work with a multitude of partners including charities, local collectives and independent artists in order lo present as diverse a programme as possible. Learnin and Partici ation Our Learning and Participation programme aims to transform lives in Tower Hamlets and East London through cre8tivity, working with.. Families and the Community.. offering a range of learning and cultural activities Children and Schools.. participation in aclivilie5 to promote confidence and learning Young People.. training and work experience in the cultural sector Emerging Artists.. supporting cre81ive praclilioners from diverse backgrounds. Cinema Through our cinema we connect with many local audiences, including a large proportion of low-arts engagers and low-income groups. We progmmme festivals as well as blockbusters and Independent films from around the world. We work with regular partners such as We Are Parable on one-off screenings with live elements. RICH MIX CULTURAL FOUNDATION IA Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 Objectives and actlvities (continued} Private hires Our Private hires activity supports our broader artistic and leaming and participation programmes, as well as the overall running of the building. Ulilising our core asset, the five-slorey Shoredilch landmark, we cater for events in our many flexible and fully equipped spaces, including conferences, product launches, weddings and exhibitions. Resident or anisalions We offer affordable workspace, with our building providing a home for a variety of socially progressTrie charities and innovative creative businesses. Currently 25 organisations employing approximately 200 people have their headquarters in the Rich Mix building. Workspace for charities is rented at between 30 /0 10 40.10 below market rates as part of Rich Mix's support for the wider cultural community. ro ecl lans - Reima in Rich Mix Our longer term aims include plans for a substantial refurbishment of our bLJilding, opening up Rich Mix lo new audiences, improving accessibility and reducing our environmental Impact. Our capital project, Reimagining Rich Mix, will address the needs of the local community while expanding Rich Mix's offer as a pioneering arts centre at the heart of multicultural London. The capital project will.. create a social, porous ground floor, linking Belhnal Green Rd lo Redchurch St- a public space and cultural crossroads in which lo meet, eat, drink and encounter art deliver a new dedicated Learning and Participation space lo support skills development enhance existing performance spaces and cinema lo improve capacity, accessibility, experience and realise artistic vision improve facilities and services for all users. The project will benefit audiences from Tower Hamlets and London-wide, our Ioc81 Community, the diverse partners and artists we work with and the creative business residents and their employees. The full capitsl project is currently on hold due to many funders repurposing capital monies to emergency support for Covid-19. We have begun a ph8sed approach in order to maximise grants already received whilst we plan a fundraising campaign for the longer term vision. Fundraisin Raising voluntary funds from Irusls, foundations and individuals is a vital source of income that helps us to fulfil our charitable objectives. We ulilise internal staff for fundraising alongside external professional fundraisers and continue lo develop in-house skills to build on our membership programme and individual'giving campaigns. We do not employ commercial participators to carry out fundraising activity or engage in face-tD-fa or telephone fundraising. In developing our approach to fundraising we have taken account of the Code of Fundraising Practice issued by the Fundraising Regulatoi. Rich Mix has received no complaints about ils fundraising activities either during the financial year or subsequently. diversi and audiences We opefftte at the inlersEclion of many communities, cultures, businesses and artistr'c traditions and place great emphasis on ensuring that diversity is al the heart of what we do. Rooted in East London bul open to the world, we have a demonstrable track record of reaching marginalised communities and of our commitment to anli-racisl policies and practice, diversity and inclusion. Rich Mix is one of the nine founding members of the Future Arts Centres (FACI a ne￿Ork of over 100 venues championing the unique importance of arts cenlres al a local, regional and national level. RICH MIX CULTURAL FOUNDATION IA Company Limlted by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 Objectives and activities Icontinued) Safe uardin We continue to review our work around safeguarding in relats'on lo our audiences, participants in the Leaming and Participation programme. and our staff. in line with regulatory frameworks and guidance. Sustainable develo ment Achieving increased environmental sustainability is a priority for Rich Mix. The Environmental Sustsinability Committee was formed in 2018 and consists of a cross section of staff members. The main aims of the committee are lo raise awarèness, save energy and reduce waste. Data rotection We have continued to comply with GDPR, with reviews and action taken to maintain Complian￿ on an on-going basis. Specifically, we continue our data sharing with partner organisations to supply audience data in 8 secure, Compliant way, and support their audien￿ development efforts. Achievements and performance Despite being closed for the majority of 2020-21 we continued to engage audiences and participants online and in brief periods of reopening (September, October and December 20201. Part of our strategy focused on developing creative content lo engage audiences during the various lockdowns, highlighting our vision and values. Our online presence included blogs such as Top 10 Creative ideas for Families1217 views), London on Film1460 views),. Top Feel Good Films1789 views)., #LoveYourLocal Twitter thread." Rich Mix Picks series (developing brand voicel and our response lo Black Lives Matter. The development of our website enabled us to showcase more online work. During the year.. 1,400+ people accessed our new online film programme 4,000+ tickets were purchased to our screenings online and in person across a diverse programme of commercial and independent films Our Learning and Participation programme engaged 457 school pupils in a formal learning setting and 643 children, families and community groups In informal learning activities in some of the most deprived and diverse areas, expanding audiences and participation in the arts. 9,400+ people accessed our online blog and video content over the year Live Pro ramme Our continuing live offering, although much reduced, is a leslament lo our strong partnerships, secured commission funding and willingness lo experiment with online distribution. Public art We partnered with London Mural Festival and Painl the Change lo utilise our external walls for semi- permanent public athorks.. Belleville, by East London based artist Camille Walala and 200 Nalion81ilies, One NHS comprising drawings and designs of flowers crowdsourced by Tower Hamlets residents. Commissions Prior lo the first lockdown we were successful in securing commissions as part of the Future Arts Centres, programmes. We commissioned Bittersuite to produ￿ H&ld. Originally designed for a live experience, it was reconfigured for an at-home audio and sensory experience for families in October. As part of National Lottery 25th Anniversary celebrations, we Commissioned local light artist Marb'n Richman to create a light-based visu818rt installation that reflects the history and dynamism of East RICH MIX CULTURAL FOUNDATION IA Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 Achigvgments and performance Icontinuedl London A reminiscence project, Illurninale, engaged a community of over 60s through four online sessions In January and February 2021. Live in-person events We supported our resident theatre company, Tamasha Theatre as they re-launched the immersive smart phone adventure We Are Shadows over a series of weekends in September, where aUdIen￿S explored the history of Brick Lane through Bengali women's stories. Music In partnership with the Czech Centre. Hungarian Cultural Centre and Polish Cultural Institute we presented Ele¢lronica'. Vision of Sound11, an AV and contemporary electronic music line up, lo online audiences via Facebook and YouTube live. "This has been moving and quite profound for me in terms ofidenlity and b&longing. Th& RM tegm is truly giftgd and hugely important lor community in fragmented times ... keep goingl" Participant, Illuminate. Learnin and Partici ation Our Learning and Participation programme restarted in September 2020 and focused on our three flagship projects, Pic 'n' Mix, New Creatives and In Focus, and our Family Sundays programme. We expanded our role as a learning and cultural centre for the community, offering a wide range of education and wellbeing events responding lo local needs. Families and the Community.. offering a range of learning and cultural activities We continued our Family Sundays programme, co-creating content with artistic partners and based on our consultations with local families. We focused particularly on events supporting families and community members dealing with loss and isolation, health and well-being, engaging different types of audiences including under 5s. Muslim and non-muslim women, black artists and young men. Childr6n and Schools." partlClP8tion creative activities to promote confidence and leaming Our Film Education programme (Pic 'n' Mix) was our main activity in schools and this year was themed 'My Story, OLJr Story,. The workshops focused on developing visual litefftcy, story-telling, and film and media skills. Children created the films using their individual and collective experience of the lockdown, performing, acting and speaking on screen. We also delivered Continuing Professional Development for 18 teachers both online and in-school. Overall, in this programmewe worked with 223 children across six schools in Tower Hamlets both in online workshops, and later in the classroom. "They have not17ad any opportunty like this during orslnce lockdowns, but th8 online lessons with Mr Gee and Amani were a breath of fresh air for the students. Ths film linked lo our literacy unit bnlliantly, which really supported the Ghildr8n s leaming post lockdown as they were able lo fully immerse themselves a unifr and becom8 more confident with vocabulary and how to express their leaming" Teacher, Pic 'n' Mix Young People.. training and work experience in the creative and cultural industrigs We began recruitment for New Creatives, our nine-monlh personal and professional development programme for marginalised young people in Tower Hamlets, with a series of podcasts and lasler sessions in late 2020. The progomme comprises coaching, creative skills support and development. and paid work experien￿. RICH MIX CULTURAL FOUNDATION IA Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 Achievements and performance Icontinuedl Emerging Artists.. supporting creative practitioners from diverse backgrounds. We have sel up a group of Associate Artists who are supporting the delivery of our Learning and Participation Programme. We are also providing mentoring support for emerging artists as workshop leaders so that we can engage with a larger pool of practitioners from ethnically diverse communities. Cinema We reopened our cinema programme lo the public in September 2020 with a ￿dUCed number of screens and screenings to ensure compliance with social distancing. This enabled us lo keep a regular offer of blockbusters and independent films for our loyal audiences and members and to protect our market share, whilst minimising financial risk. We were successful in receiving funds from Film London for our first ever virtual screening and Q&A of Vthile Riot In August in partnership with Love Music, Hale Racism. In the third quarter of the financial year, our screens did not reopen apart from one weekend of Christmas films, due to the national reslriclions. However, during this period, we worked with our partners lo deliver 30 films online continuing our engagement with current and new audiences, which included a partnership with We Are Parable lo support Black emerging filmmakers. Resident or anisalions In line with government guidance we closed Rich Mix lo our resident organisations from 24 March until early June 2020. We then opened the building for all ￿sIdentS with increased health and safety measures in place lo ensure a Covid-secure environment. Wth support from the Mayor of London's Creative Land Trust grant, we were able to offer reductions in the service charge for the three-monlh period we were closed. We have worked closely with our residents to ensure Rich Mix remains a home to the cultural organisalions who share our building We supported our resident organisations by increasing awareness of the creative community in the building which started with a successful Spotlight series of our resident companies across Rich Mix social media. Private hire5 The Private hires team adapted to restrictions on event activity by creating offers for industries still able lo operate under government restrictions, primarily TV and Film production. This was a key new business area for Rich Mix with several production companies being introduced to our range of facilities. Building client Confiden￿ has been key for ￿COVery and the Private hires team have worked close with operations and marketing lo create a clear Covid-secure policy and risk assessment for hires. Repeal bookers responded positively and client feedback has been ovetwhelmingly supportive. ualil Diversi and Inclusion Rich Mix's explicit focus on diversity makes it 8 pioneer in the UK cultural landscape. With the resurgence of Black Lives Matter and the disproportionate effect of Covid-19 on BAME communities, our delivery of Culture for a Changing City is vital. We are a diverse team and board.. > 540/a of the board are from Black, Asian or minority ethnic backgrounds., 690/0 idenb'fy as female", 80/0 are bi-sexual or gay men., 80/0 a￿ aged 34 or younger and 15Q/o are aged 65+ >460/0 of staff members are from Black, Asian or minority ethnic backgrounds., 580/0 identify as female or non-binary., 3Q/o have a different gender identity to the sex they were assumed lo be at birth,. 20°h are bi-sexual or gay men,. 540/a are aged 34 or younger., 120/0 of staff identify as a deaf or disabled person or as having a long-term health condition We actively support our local community with 230/ts of audiences coming from the low income and low arts engagement segment 'Kaleidoscope Creab'ves, compared with the 11 QA London average We are one of only 50/0 of Arts Council England's National Portfolio Organisations with an 'Oulslanding' rating for the Creative Case for Diversity. RICH MIX CULTURAL FOUNDATION {A Cornpany Limitgd by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 Achievernents and performance Icontlnued} This year we have taken the following further steps in pioneering diversity.. Created a Black Lives Matter focus group to work alongside our Equality Diversity and Inclusion Committee Continued to improve recruilmenl processes by monitoring and evaluating spread and widening advertising Completed all-slaff Disability Equality Training Supported our diverse team in entry level positions through development opportunities like CV surgeries, internal-only recruitment and creative programmes. Suslainabili The action plan for 2020-21 focused on raising awareness lo our audiences and staff of the need for onlinued environmental action. The Rich Mix Goes Green campaign was conceived and developed over the year, in lime to launch officially In March 2021. Green topics were raised in our Learning and Participation activity, with The Big Draw focusing on ways that families can Reduce, Reuse, Recycle. Rich Mix is committed lo programming a minimum of three events a year with an environmental focus. We also joined the Julie's Bicycle Creative Green cohort. The cohort provides peer support, professional advi￿, and training through a network of other cultural organisalions who are championing the environment. Ca 1121 ro ecl lans - Reima Rich Mix Although our full capital project is on hold, from late 2020 we worked closely with the Greater London Authority to develop a phased approach to our plans whieh focused on a process of'scralch testing, lo explore.. in-depth consultation with various user groups for an inclusive design approach lower cost interventions with potentially large impacts a greater understanding of what is needed from a major capital investment. With an award of £550,000 from the Good Growth Fund, originally granted in March 2020, we re- engaged our Design Team and agreed 2 series of proposals (Phase 1a) which will deliver a new cinebar, an artists, green room and a learning and participation space, bar and enhanced healing and cooling systems. Plans for future periods We continue lo adapt our business operations and OLJr strategic aims to focus on the most profitable areas lo ensure our financial sustainability for the future. Our plan for 2021-22 is lo re-open Rich Mix in line with the Government's roadmap and re*stablish our venue at the heart of the community of East London by 2022. Our business model will respond to audience confidence in attending indoor events and deliver 8 hybrid model of live and oriline work lo rebuild relationships with artists, partners and audiences. We will prioritise our programme lo ensure we achieve best value for money for our community and respond lo feedback through evaluation and consultation. We plan lo continue with social distancing and reduced capacty in place until September 2021 81 the earliest. We hope that from early 2022 our programme and aUdIen￿S will return lo pre-covid levels. ve programme We re-opened our Live Programme in July 2021 with our delayed Spitaifields Music commission, the Shubbak Festival of contemporary Arab arts and cullLJre, and Elevate East's Stuck in The Lift, an artistic development programme offering a lesl playground for five local artists. We are planning a full pr(￿rarnme of live events in September, primarily working with artists and companies that have a io RICH MIX CULTURAL FOUNDATION IA Company Limitod by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 Plans for future periods {continuedl long-term relationship with Rich Mix and bringing back key artforms such as music and spoken word, as well as marking events such as Bangladesh's 501h Year of Independence. From October to January 2022, due to our capital project programme, some of our live performan spaces will not be available and we will therefore be focusing on digital or livestreamed events, as well as an in-person audience lre3triclions permitting) in other locations across the building. Le8ming and Participation Our Learning and Participation programme will continue lo focus on a core offer of funded projects including Pic 'n' Mix, New Creatives anrl our Families and Communities activities. We will explore the potential to overlap be￿een Lèarning and Participation with Live, with the creatson of a series of young people takeover events, and with Cinema in the ¢￿atIOn of a Film Club. Cinema For 2021-22 we will be offering a reduced programme of four screenings a day (nine pre-pandemicl which we believe is the optimum number in order lo provide sufficient audience choice, miligale against lack of product availability, r&establish relationships with partners and dislribulors, and keep operations cosleffeclive and, as far as possible, Covid-safe. We are largeling audiences more likely to return118-34 year olds, experience-seeker51 with a mix of blockbuster and independent titles, fesb.vals and one-off screenings. We will showcase both the UK Asian Film Festival and the London Indian Film Festival, as well as other diverse-led festivals, estab5ishing ourselves as a place lo watch independent films from around the world. We will continue lo offer an online selection of films, and work to build a family audience In the latter part of the year once the capital programme is complete, alongside the launch of our cinebar. Resident organisations We are working closely with our residents to ensure that Rich Mix remains a home lo the 25 cultural organisations who share our building. Maintaining our base of resident organisalions is a key priority for our future as remote working becomes more common, and we will continue lo maximise our income from workspaces by offering bespoke and flexible agreements with existing and prospective Tesidents. Private hires Securing bookings from new industries such as TV and Film Production, has broadened our business networks and increased our revenue polenlial. Investment in digital equipment and team training has made the Private hires offer resilient, providing options for live streaming and hybrid aclivily. Private hires, client confidence has returned with a marked increase in enquiries, and with the easing of government restrictions we can return lo ful5 activity from October 2021 (subject to reduced spa capital inlervenlionsl. Capital proj8Ctpl&ns.' Reimagining Rich Mix In 2021-22 we will begin a programme of investment in our mechanical, electrical and plumbing works, and address issues of water ingress and Health and Safely systems with support from Round 1 of Arts Council England's Cultural Recovery Funding. We will also deliver Phase la of our capital project. We will re-start our planning and fundraising for the next phase and laryer capital progfftmme vision al the end of 2021. Equality, Diversity and Inclusion We will be rolling out organisation-wide anti-racism training, in tandem with a review of our Eqtjality, Diversity and Inclusion policy and action plan. li RICH MIX CULTURAL FOUNDATION IA Company Llmlted by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 Plans for future periods Icontinugd} Sirate for the future Our vision for equality and diversity remains at the heart of our organisation with three key elements.. presenting an exciting programme that celebrates and reflects the diversity of the communities of East London and inspires the next generation of musicians, performers and audiences having a strong leadership role in the sector, supporting local diverse music and arts promoters and organisalions lo grow and thrive, and being a leader nationally in supporting the equality and diversity ambitions of arts cenlres developing and introducing an inlegraled approach lo community development, combining learning and engagement, audience development and artists, support representing the breadth, depth and quality of Rich Mix through community partnerships. Our strategic plans to ensure a sustainable future lor Rich Mix include the following.. refocusing our cinema programme with an increased emphasis on independent films investing in digital technology and training lo offer hybrid live streamingllive performance expanding our leaming and participation programme lo widen our reach lo marginalised communities in East London, funded mainly through grant income maximising tenancy and private hire income rebuilding and sustaining an ethical ecosystem within our workforce and organisalion prioritising financial suslainabilily, equality and diversity and environmental sustainability We are continuing to.. support artists who call Rich Mix their home provide a platform for artists, particularly from ethnically diverse communities, to secure project funding enhance outreach programmes maintain a competitive Private hires position. Financial Plan Our financial projections up lo March 2023 indicate that Rich Mix will have sufficient financial sources lo continue lo meet ils liabilities as they fall due. Confirmation of our funding application lo ACE CRF2 for an amount of £228,935 was received in June 2021. This will cover some of the loss in trading income during the year ending 31 March 2022. We will continue lo focus on reducing core costs and lake advantage of any other relevant reliefs available.The forecast deficit for the year will be covered by general funds. Our forecast for the year ending 31 March 2023 is based on the assumptions that trading operations and charitable activities will resume in full in April 2022 and we will look to re-eslablish our diverse income streams during the year. However, it will take some time for Rich Mix to recover from the impact of Covid-19 and, despite significant cost redtjctions in 2022-23, we are still projecting a deficit for the year. The Trustees are confident that Rich Mix will remain financially resilient and there will be sufficient general funds lo cover the forecast deficit and any further reductions in activity levels. Financial review Income Rich Mix has taken advantage as frdr as possible of the various government relief schemes and other sources of emergency ftjnding available lo mitigate the effects of Covid-19. Total income for the year amounted to £3,012,44812020.' £2,774,060) of which £1,839,141,12020'. £385,922) related to grants and donations. 12 RICH MIX CULTURAL FOUNDATION IA Company Limited by Guaranteo) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 Flnanclal revlew lcontinuedl The principal funder during the year was Arts Council England which provided CO￿ funding of £307.29012020." £301,738) under ils four-year NPO agreement from 2018-22. Further emergency funding tolalling £1,286,901 was received from the Arts Council England during the year with £315,068 from the Emergency Response Fund and £971,833 from the Culture Recovery Fund. These funds support core costs, further investment in the Rich Mix building, and technical equipment to support the expansion of our digital and online programming. The funds include an amount of £419,928 to reflate reserves. We were also successful in securing emergency funding from Creative Land Trusl1£9,7961 and BFI FAN London1£14,0001. Project grants amounting to £192,22512020'. £52,222} were received lo support our Learning and Participation programme and commissioning grants for our Live Programme. The Board wishes to express ils thanks to all our funders, donors and sponsors for their generous support. Income from commercial trading operations was £105,97712020'. £1,510,567). Covid-19 had a significant impact on the cinema programme, commercial event hires and bar operations with severe limitations on trading in line with government restrictions. Rich Mix Cultural Enterprises Limited, the wholly owned trading subsidiary of the charity, made a loss for the year of £43,593 before management charges12020'. profil of £572,169). Due to the lack of trading activity the management charge for the year was reduced to £62,95912020' £175,7391 The10ss for the year after management charges in the trading subsidiary amounted to £106,530. compared with a profil of £396,718 in 2020, which was gift-aided lo the charity. Income from charitable activities, including ticket sales and fees of £3,02812020.' £133,861) and rental income and service charges of £615,07012020.. £736,5591, was £622.22012020." £875,516). Again, due to Covid-19 we have not been able lo run a Live Programme during the year and a number of our tenants terminated their leases or downsized their workspaces resulting in reduced rental and service charge income. Other Income of £444,809 relates lo amounts received by the charity and ils trading subsidiary <£134,282 and £310,527 respeclivelyl under the government's Coronavirus Job Retention Scheme. enses Total expenses for the year ended 31 March 2021 were £2,379,22812020'. £3,226,958). Expenses include staff costs of £1, 139,90712020.. £1,210,499). The reduction in salaries reflects a 200/0 pay cut taken by the management team during the first three months of the pandemic and the furloughing of staff under the Coronavirus Job Retention Scheme ICJRSI. Following a review during the year of assets recorded on the Fixed Asset Register, a number of assets no longer in use were written off and amounts of £2,176 and £61,773 were charged to general funds and designated funds respectively. Reserves policy Movements in funds Al 31 March 2021 total reserves amount lo £14,121,67512020.. £13,488,455) comprising restricted funds of £434,78412020'. £35,845), designated ftjnds of £12,984,58312020.. £13,422, 127} and unrestricted general funds of £702,30812020.. £30.483}. 13 RICH MIX CULTURAL FOUNDATION IA Company Limited by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 Reserves policy {continuedl During the year expenditure amounting to £408,63412020'. £348,240) and £28,91012020.' £59,977) was charged against the Building Fund and the Fixed Asset Fund respectively, comprising the depreciation charge and write-off of assets no longer in use. There were no charges against the Section 106 Fund12020.. £152,055 was charged against the Section 106 Fund to develop the Capital Project plans lo RIBA Stage 1121. Desi naled funds Designated funds include.. Building Fund The Building Fund represents the nel book value of freehold and leasehold propety. Annual depreciation is charged against it. Fixed Asset Fund The Fixed Asset fund represents the nel book value of equipment. fixtures and fittings funded by third parties. Annual depreciation on these assets is charged against this fund. Section 106 Fund Expenditure under the Section 106 Fund is determined by an agreement between the London Borough of Tower Hamlets and Rich Mix which sets out the ptjrposes for which this fund may be used. The balance ￿maining on the fund al 31 March 2021 was £90,158 which we anticipate using by December 2022 to support the capital project plans. General funds It is the policy of the charity that the aim should be for unrestricted funds which have not been designated for a specific use to be maintainèd al a level equivalent to six months, operating costs. The average monthly operating cost during the year, excluding the direct eosls of trading operations, was £126,734. On this basis six months, operating costs would amount to £760,403 The Arts Council England Culture Recovery Fund includes an amount of £419,928 to reflate reserves which has increased the balance on general funds lo £702,308 at 31 March 2021 12020.. £30,483>. We are continuing to develop our strategy lo oach the organisation's desired reserves policy and we will keep this policy under review in line with the operational guidance No.43 ICh8rity Income Reserves) issued by the Charity Commission. Free reserves are calculated as general unreslricled funds not represented by fixed assets and show a balance of £678,711 12020.. negative balance of £5,835). Risk management The Board regularly reviews the major risks lo which the charity is exposed and has established systems to mitigate those risks, as far as is reasonably possible. Our risk register identifies those risk5 and assigns specific actions and responsibilities for miligaling them. The risk management process is ongoing and is regularly updated by the Executive Team and reviewed by the Finance and Business Sub Committee. Princi al risks and uncertainties The Board is particularfy concerned with risks that have the potential to cause the charity lo cease operations and has developed policies to mitigate those risks. The key risks are". 14 RICH MIX CULTURAL FOUNDATION IA Company Limlted by Guarantee) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 Risk management Icontinued) Loss of income Emergency funding from Arts Council England and other fijnders together wlh govemmenl support thiough the CJRS scheme ensured that we remained financially resilient during the year ended 31 March 2021. Our forecast for the current year shows a gradual return lo our trading and charitable activities from late spring 2021, but the continuing impact of the pandemic on trading activities is challenging. Bulldlng Infrastructure and health and safety Issues The Building Risk Register identifies the key risks to Rich Mix and is regularly updated and monitored on a six-monthly basis. The investment in the MEP progr8mme is milig81ing some of these risks and we will be setting out a five year management and mainten8nce plan to address remaining risks related lo the building infrastructure. Statement of Trustees. responslblSltles The Trustees Iwho are also directors of Rich Mix for the purposes of company lawl are responsible for preparing the Trustees, report and financial statements in accordance with applicable law and United Kingdom Accounting Standards {Uniled Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees lo prepare financial statements for each financial year which give a true and fair view of the stale of affairs of the charitable company and the group and of the income and expenditure of the charitable company and the group for that period. In preparing these financial slalements, the Twslees are required to. select suitable accounting policies and then apply them consislenlly., observe the methods and principles in Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021., make judgements and eslimales that are reasonable and prudent stale whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., and prepare the financial statements on the going concern basis unless it is inappropriate lo presume that the charitable company will continue in operation. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy al any time the financial position of the charitable company and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Each of the Trustees confirms that.. so far as the Trustee is aware, the￿ is no relevant audit information of which the charitable company's auditor is unaware., and the Trustee has taken all the steps that helshe ought lo have taken as a Trustee in order to make himselflherself aware of any relevant audit information and lo establish that the charitable company's auditor is aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. 15 RICH MIX CULTURAL FOUNDATION IA Company Limited by Guarantee) Statement of Trustees, responslbllltles Icontlnued} The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom goveming the preparation and dissemination of financial statements may differ from legislation in otherjurisdictions. Approved by the Board on 27 September 2021 and signed on its behalf by Michael Keith Chair 16 RICH MIX CULTURAL FOUNDATION {A Company Llmlted by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RICH MIX CULTURAL FOUNDATION Oplnion We have audited the financial statements of Rich Mix Cultural Foundation Ilhe 'charitable parent company'l and its subsidiary Ilhe 'group'l for the year ended 31 March 2021 which the comprise the group statement of financial activities, the group and charitable parent company balance sheets and the group ststement of cash flows, the principal accounting policies and the notes to the financial stalemenls. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Stsndard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practi￿1. In our opinion, the financial slatemenls.. give a true and fair view of the stale of the group's and of the charitable parent company's affairs as al 31 March 2021 and of the group's income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been piepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the audiloffs responsibilities for the audit of the financial statements section of our ￿pOrt. We are independent of the group in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appmpriale to provide a basis for our opinion. Coneluslons relatlng to going concern In auditing the financial stalemenls, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial slalemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubl on the group and charitable parent company's ability lo continue as a going concern for a period of at least twelve months from when the financial stslemenls are aulhorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. other inforniation The Trustees are responsible for the other infomiation. The other information comprises the information included in the annual report and financial statements, other th8n the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon In connection with our audit of the financial stalemenls, our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the audit or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are reqLJired lo determine whether there is a material misstatement in the financial slalements or a material misslalemenl of the other information. If, based on the work we have performed, we conclude that there is a material misslatemenl of this other information, we are required to report that fact. We have nothing to report in this regard. 17 RICH MIX CULTURAL FOUNDATION IA Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RICH MIX CULTURAL FOUNDATION Opinions on oth9r matters prescribed by the Companies Act 2008 In our opinion, based on the work undertaken in the Course of the audit.. the information given in the Trustees, report, which is also the directors, report for the purposes of company law, for the financial year for which the financial statements are prepared is consislenl with the financial statements., and the Trustees, report, which is also the directors, report for the purposes of company law , has 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 group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstalemenls in the Trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report lo you if, in our opinion.. adequate accounting records have not been kept by the charitable parent company, or returns adequate for our audit have not been received from branches not visited by us,. or the charitsble parènt company financial statements are not in agreement with the accounting records and returns, or ertain disclosures of Trustees, remuneration specified by law are not made," or we have not received all the information and explanations we require for our audit., or the Trustees were not enlilled lo prepare the financial slalemenls in accordance with the small companies regime and lake advantage of the small companies, exemptions In preparing the Trustees, report and from the requirement to prepare a strategic report. Responsibilities of Trustees As explained more fully In the Trustees, responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necess8ry lo enable the preparation of financia stslements that are free from malenal misstalemenl, whether due lo fraud or error. In preparing the financial sl8temenls, the Trustees are responsible for assessing the group's and the charitable parent company s ability lo continue 8S 8 going concern, disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the Trustees either intend lo liquidate the group or the ch8rit8ble parent company or to cease opeotions, or have no realistic alternative bul to do so. Auditor's responslbllltles for the audlt of the flnanclal statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from m8leri81 misslalemenl, whether due lo fraud or error, and lo issue an audilorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will a￿ayS delecl a material misslalemenl when il exists. Misslalements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slalemenls. 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 misslatemenls in respect of irregularities, including fraud. The exlenl to which our procedurès are capable of delecling irregularities, including fraud is detailed below". To address the risk of fraud through management bias 2nd override of controls, we". Performed analytical procedures lo identify any UnUSLJal or unexpected relationships," Tested and reviewed joumal entries to identify unusual transactions., Tested aulhorisalion of expenditure., 18 RICH MIX CULTURAL FOUNDATION IA Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RICH MIX CULTURAL FOUNDATION Audltofs responslbllltles for the audlt of the financial statements {continuedl Assessed whether judgements and assLJmptions made in determining the accounting estimates were indic81ive of potential bias., and Investigated rationale behind significant or unusual transactions. In response lo the risk of irregularities and non-compliance with laws and r￿ulations, we designed procedures which included bul were not limited lo.. Ensuring that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations., Identifying the laws and regulations applicable lo the charitsble company through discussions with management, and from our commercial knowledge and experience of the sector., Ensuring that the identified laws and regulations were communicated within the audit team regularly and the team remained alert lo instances of non-compliance throughout the audit., Focussing on specific laws and regulations which we considered may have 8 direct material effect on the accounts or the activities of the charity. These included bul were not limited to relevant financial reporting standards, the Charities Act 2011 and the Companies Act 2006., Agreeing financial statements disclosures lo underlying supporting documenlalion., Reading the minutes of Iruslee rneelings,. and Enquiring of as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non- compliance with laws and regulations lo enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to delecl than those that arise from error as they may involve deliberate concèalment or collusion. A further description of our responsibilitie5 for the audit of the financial statements is located on the Financial Repoth'ng Council's website at www.frc.org.uklauditorsresponsibililies. Thi5 description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate to the charitable company's members those mallers we are reqUI￿d lo slate to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work. for this report, or for the opinions we have formed. Catherine Biscoe (Senior Statutory Auditor) For and on behalf of Buzzacoll LLP, Statutory ALJdilor 130 Wood Street London EC2V 6DL Date.. 18 September 2020 19 RICH MIX CULTURAL FOUNDATION IA Company Llmlted by Guarantee) Consolidated Statement of Financial Actlvltles (including the income and expenditure account) For the year ended 31 March 2021 Gttneral 0￿gnated funds fvnds 2021 2021 Re5￿Cted funds 2021 Totsi fund8 2021 Tctsl fund5 2020 Ncles Incomo trom.. Grants and don2bons commercial trading opefatons Invesfftents 237.250 1,839,141 10S,977 301 622,220 444,809 J,012,U 385.9 1.510.587 2.055 875.$16 105.977 301 822.220 444,809 2.775,198 Other Inceme Totsl 237,250 2,774,060 Expendknre 78,186 523.056 f,777,986 2,379,220 Z9,245 CoMMer￿al trading 0￿ra￿on$ Charlia￿e 8¢bvtses Total 523.05fj 1.173.027 1,774.2S9 437,544 437,544 187,415 67,415 2,OB3.57fj 3.228,958 Not Incornollexpendlturel 1,000,929 1437,5441 69,835 633.22 Tr8n$[e￿ beiween lund5 19 1329.1041 329.104 Net rnov•m•nt In fund$ 671,825 1437,5441 398,939 633,220 1452.8981 R4conclllAUon of fund8'. Tolal funds brought forw3rd Totsi funds carried forward 30.483 702.30B 13.422,127 12,984,5B3 35.845 4Y.784 13,488,455 14,121,675 13,488.455 The Statement of Financial Activities includes all gains and losses recognised in the above financial years. All movement derives from continuing activities during the above financial years. 20 RICH MIX CULTURAL FOUNDATION {A Company Llmlted by Guarantee) Consolldated and Company Balance Sheets As at 31 March 2021 Group 2021 Group 2020 Charity 2021 Charity 2020 Notes Fixed assets Tangible assets Investrnellts 14 f2,967,543 13,387,946 12,967,543 13,387.946 12,967,543 13,387,946 12,967,S44 13,387,947 Current assets Stocks Debtors Investments- cash held on deposit Cash at bank and in hand 15 16 2,974 305,795 1,000 1,624.257 1,934.026 6,904 324.986 191,619 119.401 642,910 262,775 1,000 1,588.619 1,852.394 245,821 191,619 80,065 517,505 Creditors". amounts falling duè within one yèar Net current assets 1779,8941 1542,4011 1.154,132 100,509 1592,8811 1418,1451 1.259,513 99,360 Nèt assets 14.121,675 13,488,455 14.227,057 13,487,307 Funds Restricted funds Uniestncted fund5'. Designated funds General funds 19 434,784 35,845 434,784 35,845 20 12,984,583 13,422,127 12,984,583 13,422,127 21 702,308 30.483 807,690 29,335 14,121,675 13,488,455 14,227,OS7 13,487,307 Approved by the Board on 27 September 2021 and signed on its behalf by Michael Keith Chair 21 RICH MIX CULTURAL FOUNDATION IA Company Limited by Guarantee) Consolidatgd Statement of Cash Flows For the year ended 31 March 2021 2021 2020 Cash generated from operating activities Nel cash provided byllused inl opèrating activities 1,105,809 180,7951 Cash flows from investing activiti8S Interest received Purch8se of tangible fixed assets Net cash used in investing activities 301 141,8731 141,5721 2.055 129,5681 127,5131 Cash flows from financing activities CBILS loan Net cash from flnanclng activitie8 250,000 250,000 Change in cash and (xsh equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of thè yèar 1,314.237 311,020 1.625.257 1108.3081 419,328 311,020 2021 2020 Net incomellexpenditurel las per the StataTn8nt of the Financial Activltiesl Adjustments for.. Depreaation. atnortisation and write off of fixed assets Investment income Decrease in stocks Decreasel[Incieasel in deblors Decrease in trade and other creditors Net cash provided byllused in) opèrating activities 633.220 1452,8981 462,276 13011 3,930 19,191 112,5071 1,105,809 433,097 12,0551 6.343 112,767) 152,5151 180,7951 At 1 Aprll 2020 Cash flows Non-cash At 31 March changes 2021 Analysis of changes in net debt Cash and cash equivalents Cash held on deposit Cash al bank and in hand 191.619 119,401 311,020 1190.6191 1,504,856 1.314,237 1.000 1,624,2S7 1,625.257 Borrowings BILS loan (repaid in June 20211 1250,0001 1250,0001 Total 311,020 1,314,237 1250,0001 1,375,257 22 RICH MIX CULTURAL FOUNDATION IA Company Limited by Guarantee} Notes to the Flnanclal Statements Forthe year ended 31 March 2021 1. ACCOUNTING POLICIES Basis of preparation These financial statements have been prepared for the year ended 31 March 2021 under the historical cost convention with items recognised al cost or transaction value unless othe￿iSe slated in the relevant accounting policies below. The financial slalements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities in preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 (Charities SORP FRS 1021, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements are presented in sleding and rounded lo the nearest pound. Consolidation These financial statements consolidate the results of the charity and ils wholly owned subsidiary, Rich Mix Cultural Enterprises Limited, on a line by line basis. A separate Slalemenl of Financial Activities is not presented for the charity in accordance with the exemptions afforded by Section 408 of Part 15 of the Companies Act 2006. Details of Rich Mix Cultural Enterprises Limited are given in Note 3 to the financial slatemenls. Critical accounting estimates and areas of judgement Preparation of the financial statements requires the Tnjslees and management to make significant judgements and estimates. The items in the financial statements where these judgements and eslimales have been made include. estimating the allocation of support costs betseen activities., and estimating the useful economic life of tangible fixed assets. Going concern Covid-19 continues to have an Impact on the activities of the charitable company and the group. Confirmation of our funding application lo ACE CRF2 for an amount of £228,935 was received in June 2021. This will Cover some of the loss in trading income during the year ending 31 March 2022. We will continue lo focus on reducing core costs and lake advantage of any other relevant reliets available The forecast deficit for the year will be covered by general funds. Our forecast for the year ending 31 March 2023 is based on the assumptions that trading operations and charitable activities will resume in full in April 2022 and we will look to re-establish our diverse income streams during the year. However, il will lake some time for Rich Mix lo recover from the impact of Covid-lg and, despite significant cost reductions in 2022-23, we are still projecting a deficit for the year. The Trustees are confident that Rich Mix will remain financially resilient and there will be sufficient general funds lo cover the forecast deficit and any further reductions in activity levels. After carefully considering the matters referred to above, the Trustees have concluded that there are no material uncertainties related lo events or conditions that may cast significant doubt on the ability of the charitable company lo continue as a going concern. The Trustees are of the opinion that there is a reasonable expectslion that the charitable company and the group has adequate resources to meet its liabilities as they fall due and to continue in operational existence up lo 31 March 2023. The charitable company and the group therefore continue lo adopt the going concem basis in preparing the financial statements. 23 RICH MIX CULTURAL FOUNDATION IA Company Llmlted by Guarantee) Notes to the Financial Statements Forthe year ended 31 March 2021 1. ACCOUNTING POLICIES Icontinuedl Income Donations and grants which are not conditional on delivering certain levels of activity are recognised when they are receivable unless the donor has specified that the donation or grant relates lo a future period or that certain pre-conditions must be fulfilled before use. In these cases amounts received are recognised in the relevant period or when the pre-conditions have been mel and until then are treated as deferred income. Donations and gr2nts for particular purposes are identified as restricted funds. Income from box office and venue fees is included in income in the period in which the relevant event takes place. Income relating lo rentals in a subsequent period is treated as deferred income. Income from government grants is recognised in the period lo which il relates. Other income is recognised in the period in which the charity has enlillement lo the income, the amount can be measured reliably and il is probable that the income will be received. Expenditure Expenditure is accounted for on an accruals basis. Expenditure on raising funds comprises those costs incurred in attracting donations, grants and trading income. together with a proportion of the underlying support costs of the charity. Expenditure on charitable activities comprises the costs that can be allocated direcuy to those activities together with a proportion of the underlying support costs of the charity. Core staff, premises and adminislralion costs are allocated to the costs of fundraising and charitable activities based on an estimate of time spent by staff supporting these aclivilies. Governance costs, which comprise costs directly allributable lo the management of the charity's assets, organisational procedures and the necessary legal procedures for Complian￿ with statutory requiomenls, are included within management and administration expenses. Tangible fixed assets Tangible fixed assets are slated at cost less accumulated depreciation. Assets c051ing less than £500 are not capilalised. Depreciation is provided on a slraight-line basis lo write off the assets over their estimated usefvl lives, as follows.. Long leasehold and freehold property Equipment, fixtures and fittings 50 years 5 years The Rich Mix building provides arts facilities and a cultural offering in line with its charitable objectives. Parts of the building space are lèt to external tenants who are either arts charities or commercial organisations operating in the arts and creab've industries sector. These tenants contribute lo the artistic life of the building and provide a contribution lo running costs. The building is therefore treated as held primarily for the purpose of providing social benefit and, in accordance with FRS 102 Section 16.3A, is accounted for as a depreciating functional asset. During the year a review of all assets recorded on the fixed asset register was carried out. Assets no longer held were written off. 24 RICH MIX CULTURAL FOUNDATION {A Company Llmlted by Guarantee) Notes to the Financial Statements For the year ended 31 March 2021 1. ACCOUNTING POLICIES Icontlnued} Stock Stocks of bar and cinema consumables are included at the lower of cost and nel realisable value. Debtors Debtors are recognised al their settlement amount, less any provision for non-recoveobility. Prepayments are valued at the amount prepaid. They have been discounted to the p￿sent value of the future cash receipt where such discounting is material. Cash at bank and in hand Cash at bank and in hand represents such amounts and instruments that are available on demand or have a maturity of less than three months from the dale of acquisition. Creditors and provisions Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, il is probable that a transfer of economic benefit will be required in settlement and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised al the amount the charity anlicipales il will pay lo sellle the debt. They have been discounted lo the present value of the future cash payment where such discounting is material. Fund accounting General funds represent those monies which are freely available for application towards achieving any charitable PUlFX)se that falls within the charity's objects. Designated funds comprise monies sel aside out of unreslricled general funds for specific future purposes or projects. Restricted funds comprise". monies raised ft)r, or where their use is restricted lo, a specific purpose or contributions subject to donor-imposed conditions,. and the net book value of tangible assets where those assets are funded through restricted grants or cjonalions which require the charity lo hold those assets on an ongoing basis for a specific purpose. Operatlng lease commitments Rentals payable under operating leases are charged against expenditure as incurred over the lease term. Pension commitments The charity contributes lo two dèfi'ned contribution pension schemes on behaSf of ils employees. The assets of the schemes are held separately from those of the charity in independently administered funds. The pensions cost charge represents contributions p2id and payable by the charity during the year. Financial instruments The charity holds only basic financial instruments as defined in FRS 102. The financial assets and liabilities of the charity and their measurement basis are as follows.. Financial assets Other debtors are basic financial instruments and are debt instruments measured al amortised cost. Prepayments are not financial instruments. 25 RICH MIX CULTUFiAL FOUNDATION IA Company Limlted by Guarantee) Notes to the Financial Statements For the year ended 31 March 2021 1. ACCOUNTING POLICIES Icontlnuedl Cash al bank Cash at bank is classified as a basic financial instrument and is measured at face value. Financial liabilities Accruals and other creditors are financial instruments and are measured at cost. 2. INCOME FROM GRANTS AND DONATIONS Unre5trkted Re5trfcted 2021 Totsl Unreslncled ResknGted 2020 Totsl Arts Council England ACE EmeigÈncy Res￿nge1c￿llu￿ Ret￿ry Fund Olhergrants re¢eived Don31¥)ns 307,290 1,286,901 307,Z90 1,286,901 237.25D 7,700 301.738 301.73 237,250 72,222 72.2 11.962 385.922 7,700 1,601,891 11.962 313,700 Voluntary Incorne 237,250 72,222 Details of other grants received are shown in Note 19. 3. COMMERCIAL TRADSNG OPERATIONS AND INVESTMENT IN SUSIDIARY The wholly owned trading subsidiary, Rich Mix Cultural Enterprises Limited, company number 05719450, which is incorporated in the UK, pays all its taxable profits lo the charity by Gift Aid. Rich Mix Cultural Enterprises Limited operates Rich Mix's cinema programme, commercial event hires and bars. The charity owns the entire issued share capital of one share of £1. 26 RICH MIX CULTURAL FOUNDATION {A Company Limited by Guarantee) Notes to the Finaneial Statements For the year ended 31 March 2021 3. COMMERCIAL TRADING OPERATIONS AND INVESTMENT IN SUSIDIARY {continuedl Summary profit and loss aeeount 2021 2020 Turnover Cost of sales Ènd adtninislr3tive expenses Other operating income Management charges Net Ilossllprofit Amount gifted to charity Corporation tax Interest ieceivable and similar income Retslned in tha subsidiary 105.977 1.5fj0.567 1460,0971 1938,3981 310,527 162,9591 1175,7391 1106,5521 396,430 1396,7181 22 1106,S301 288 Other operating income relates to amounts rece￿ed under the govemments Coronaviru5 Job Retention Scheme. Summary balance sheet 2021 2020 Current assets Current liabilities Capital and reserves 241,614 179,398 1346,9951 1178,2491 1105,3811 1,149 4. INVESTMENT INCOME 2021 2020 Unrestricted Bank interest receivable 301 2.055 5. INCOME FROM CHARITABLE ACTIVITIES 2021 2020 Unrestri¢tsd Ticket sales and fee5 Réntal income and Servi￿ charges Other income rotal income from charitable actSvltlos 3,028 615,070 4,122 622,220 133,8e1 736,559 5,096 875,516 27 RICH MIX CULTURAL FOUNDATION IA Company Limited by Guarantee) Notes to the Financial Statements For the year ended 31 March 2021 6. OTHER INCOME Other income relates to amounts received by the charity and its trading subsidiary1£134,282 and £310,527 fftspeclively) under the government's Coronavirus Job Retention Scheme. 7. EXPENDITURE ON RAISING FUNDS Genèral Dèsignated Restrietèd funds funds funds 2021 Total 01￿ct costs (Note 91 Support costs INote 10) Total expenditure 8,186 70,000 78,186 8.186 70,000 78.186 Gènèr81 Dèsign8tÈd fund5 funds Rèstrictèd funds 202(1 Total Direct Costs INote 91 Support costs (Note 101 Total expenditure 7,861 13,220 21,081 7,861 21,384 29,245 8,164 8.164 8. EXPENDITURE ON CHARITABLE ACTIVITIES General Designated Restricted funds fund5 funds 2021 Total Dir8Ct cos15 IN018 91 Support costs (Note 101 Total expenditure 697,853 475,174 1,173,027 162,279 S,136 167,415 860,132 917,854 1,777,986 437,S44 437,544 General Designated Yunds funds Restricted fvnds 2020 Total Direct costs (Nota 91 Support costs (Note 101 Total expenditure 838,467 652,370 1,490,837 152,055 400,053 552.108 40,631 1,031,153 1,052,423 2,083,576 40.631 28 RICH MIX CULTURAL FOUNDATION IA Company Limitod by Guaranteo) Notes to the Financial Statements For the year ended 31 March 2021 ANALYSIS OF DIRECT COSTS Raising Charitable funds activities 2021 Total Allocation for thtr year ended 31 March 2021 Live programrne Leaming and participation Staff costs Property costs Marketing Capital projed Total 2021 60,563 37.800 652,054 53,553 20,933 35,229 880,132 60,563 37.800 660,240 53.553 20,933 35,229 868,318 8.186 8,186 Raising Charitablè funds actlvltles 2020 Total Allocatlon for the year ended 31 March 2020 Live programme Learning and participation Staff costs Property costs Marketing Capital piojed feasibility Total 2020 127.466 38,206 630,989 48,181 34,256 152,055 1,031.153 127,466 38,2C 638,850 48,181 34,256 152,055 1.039,014 7,861 7.861 10. ANALYSIS OF SUPPORT COSTS Raising Charitable funds activities 2021 Total Allocatiorb for the year ended 31 March 2021 Staff costs Management and administiation Office costs Property costs Depreciation and write off of fixed assets Total 2021 54,653 1.090 1,448 4,842 7,967 70,000 123,281 53.395 66,441 220.427 454,310 917.854 177,934 54,485 67,889 225,269 462,277 987.854 Raising Charitable funds tivities 2020 Totsl Allocation for the year ended 31 March 2020 Staff costs Management and administration Office cost5 Property costs Depreciation 4,280 1,016 1,163 S,264 8,661 21,384 209,701 54,393 56.979 306,914 424,436 1,052,423 213,981 55,409 58.142 313,178 433,097 1,073.807 Total 2020 29 RICH MIX CULTURAL FOUNDATION IA Company Limited by Guarantee) Notes to the Financlal Statements For the year ended 31 March 2021 11. NET EXPENDITURE BEFORE TRANSFERS This is stated after charging.. 2021 2020 Depreciation Auditorfs remuneration 398,327 12.845 426.118 11,500 12. STAFF COSTS AND TRUSTEE REMUNERATION Group 2021 Group 2020 Charity 2021 Charity 2020 Wages and salaries Redundancy costs Social security costs Pension contribution5 1,037,4S4 11,359 73,835 17,259 1.139,907 1,107,934 636,308 8.877 57,560 12,493 715.238 e67,812 84,516 18,049 1,210,499 63,620 12,936 744,368 The average number of full-time equivalent employees on the payroll during the year was as follows.. 2021 2020 Charity Rich Mix Cultural Enterprisés Limited 23 23 25 48 47 No employee earned MO￿ than £60,000 (excluding employer pension conlributionsl in the year ended 31 March 202112020.. none). The charity contributes to two defined contribution pension schemes. Al 31 March 2021 there were 48 employees12020.' 49} with retirement benefrts accruing under these schemes. The key management personnel of the charity and ils trading subsidiary are the Chief Executive Officer, Deputy CEOIHead of Marketing and Communications, Head of Finance, Head of Cinema and Operations and Head of Events and Production. The lolal employee benefits, including pension costs, of the key management personnel were £246,81512020.' £220,391). The Trustees were not paid and were not reimbursed expenses during the year or the prior year by the charity or ils trading subsidiary. None of the Trustees received payment ft)r professional or other services supplied lo the charity during the year12020.. £nill. 13. TAXATION Rich Mix Cultural Foundation is a registered charity and has no liability for Corporab'on Tax. Its wholly owned trading subsidiary, Rich Mix Cultural Enterprises Limited, passes profits on which lax would be payable to the charity under Gift Aid. 30 RICH MIX CULTUFiAL FOUNDATION IA Company Limlted by Guarantee} Notes to the Financial Statements Forthe year ended 31 March 2021 14. TANGIBLE ASSETS- GROUP AND CHARITY Freehold EquipmenL and long fixtures and leasehold fittings property Total Cost At 1 April 2020 Addition5 Write offs At 31 March 2021 17,411,970 840.540 18,252,510 41,873 41,873 168,9341 1103,6011 1172,5351 17,343,036 778,812 18.121.848 Depreciation At 1 April 2020 Charge for the year Wiile offs At 31 March 2021 4,137,820 726,744 4,864,564 346,861 51.466 398,327 17,1611 1101,4251 1108,S861 4,477.520 676,785 5,154.305 Net book valuè At 31 March 2021 At 31 March 2(r20 12.865.516 13,274,150 102,027 12.967,543 113.796 13,387,946 15. STOCK Grnup 2021 Group 2020 Charity 2021 Charity 2020 Cinema and bar stock 2.974 6.904 16. DEBTORS Group 2021 Group 2020 Charfty 2021 Gharity 2020 Tradè debtors Prepayments 2nd accrued income Other debtors 97,811 197,977 10,007 305,795 213,125 111,201 660 324,986 79,366 174,014 9,395 262,775 155,971 89,850 245,821 31 RICH MIX CULTURAL FOUNDATION {A Company Limitgd by Guarantee) Notes to the Financlal Statements For the year ended 31 March 2021 17. CREDITORS Group 2021 Group 2020 Charlty 2021 Charity 2020 Tiade creditor5 CBILS loan Taxes and social security costs Accruals and defe￿ed income Amount owed to subsidiary Other creditors 90,443 250.000 112,860 201.616 135,164 85,062 97,513 63.335 203,426 103,646 158,002 159,982 86,189 592,881 13,519 155,947 53,993 97,173 418,145 124,975 779,894 140,476 542,401 During the year a loan of £250,000 was drawn down frorn National Weslminsler Bank PLC under the government's Coron8virus Business Interruption Loan Scheme. The loan was repaid in June 2021. 18. OPERATING LEASES- GROUP AND CHARITY Al 31 March 2021 the charity had the following future minimum commitments under non