Registered number: 04310613 Charity number: 1090394
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 6 |
| Independent examiner's report | 7 - 8 |
| Consolidated statement of financial activities | 9 |
| Consolidated balance sheet | 10 |
| Charity balance sheet | 11 - 12 |
| Consolidated statement of cash flows | 13 |
| Notes to the financial statements | 14 - 34 |
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022
| Trustees | M Ashcroft (appointed 10 August 2021) |
|---|---|
| R Batson | |
| J Beak (appointed 5 August 2021) | |
| M Burrows, Chair | |
| P Davies (resigned 21 October 2022) | |
| R Ellis (resigned 23 July 2022) | |
| C Mckay-Haynes (resigned 3 November 2022) | |
| A Munden (appointed 12 May 2022) | |
| A Rees-Myers (resigned 3 November 2022) | |
| S Smith | |
| D Ward | |
| Company registered number 04310613 Charity registered number 1090394 Registered office 2 Station Road Sheringham Norfolk NR26 8RE Company secretary Claire Carter Independent examiners Larking Gowen LLP Chartered Accountants King Street House 15 Upper King Street Norwich NR3 1RB |
Page 1
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022
The Trustees present their annual report together with the financial statements of the group and the company for the 1 April 2021 to 31 March 2022.
Since the company and the group qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
Objectives and activities
Achievements and performance
a. Review of activities
The Theatre and Hub café were closed until 17th May 2021, due to Covid-19 lock-down restrictions which had re-commenced on 4th January 2021. Operating staff were fully furloughed or flexibly furloughed during this time. Senior Managers for the most part continued working or were flexibly furloughed.
On re-opening on Monday 17th May 2021, limits on audience numbers and seating in the café continued for the first part of the year.
In the first quarter of the financial year there were three theatre productions: Joyce Grenfell which was a fundraising event, Ghosted, an Arts Council commissioned piece by James McDermott, with young actors, which took place along the seafront and ‘Two’ by Jim Cartwright starring Joyce Branagh and Howard Saddler.
An outdoor music concert was organised again this year in Mannington Gardens this time with the London Chamber Orchestra. The funded event was attended by 100 people and was organised in conjunction with NNDC.
By the summer restrictions had been lifted. However, the theatre continued to maintain some social distancing in the auditorium with 100 seats per performance instead of the full 160. The summer productions were Our Town by Thornton Wilder and The Morning After – a farce written by local actor Ryan Starling.
Other outside theatre companies returned from July 2021.
In the Autumn The 1940s singalong returned and there was also a fundraising amateur production of Radio Fun performed by the Little Theatre Players.
Following last year’s lockdown pantomime format, the Little Theatre again worked alongside Norfolk Music Hub and St George’s Theatre, producing a one-hour long pantomime Jack and the Beanstalk (written by Nick Earnshaw) and which was performed with just four actors. Again, the show was very well received and was live streamed to schools across the county. This year there were 20 public shows, unfortunately one of the actors tested positive for Covid-19 (the omicron virus) just after Christmas and 2 performances had to be cancelled.
Popular local amateur dramatic groups returned to hire the theatre at the beginning of 2022 with Stage Direct performing Miss Marble Takes a Break and CSODs performing Lady in a Van.
The youth workshops programme recommenced from September 2021. Drama workshops via Zoom had taken place throughout the pandemic
Local Authorities continued their grant support for the financial year – North Norfolk District Council (£38k), Norfolk County Council (£4.8k) and Sheringham Town Council (£1k- for youth projects). Other grants and funding have also been obtained including the round two DCMS Cultural Recovery Fund (£37k) as well as other emergency support funds totalling £22k.
Page 2
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Achievements and performance (continued)
Donations of £12.7k were received during the year, including £1k in memory of Lord Walpole and £1.2k raised by Duncan Baker.
The Little Theatre received £56k from Hiscox in relation to a Business Interruption Claim for the lockdown closure periods.
At the start of the new financial year a fundraising committee has put together a programme of activities to ensure that funds continue to be raised by the Little Theatre. A donation has been received of £50,000 from the Joyce Utting Will Trust.
A refreshed sponsorship programme is in place for 2022-23 and continues to be an important source of income for the Little Theatre. We have maintained 6 sponsors and have 1 new sponsor.
Theatre Productions for 2022 commenced with When We Are Married, and a youth production in the form of musical showcase A Celebration of Musical Theatre. The summer has seen the return of the Summer Repertory and plays included Stags and Hens, Table Manners, Wait Until Dark and a production of Summer Holiday in conjunction with MT Productions. The pantomime will be Snow White and will be written and Directed by Nick Earnshaw.
We will continue with a ticketing service to the Sheringham and Cromer Choral Society for their performances at St Peter’s Church, Sheringham and Cromer Parish Church.
Work has commenced with the NNDC on a project for remedial works and refurbishment of the Hub.
Despite the impact of the Covid-19 pandemic we intend to continue our programmes, work with young people and contribute to the community. It is vital that we continue to seek funding and increase our sponsorship.
b. Performance
Income from operational activities increased by 55% (2021: fell by 75.1%), and total costs increased by 41.5% (2021: decreased by 55.6%). Direct cost of productions were 171% higher (2021: 81.9% lower) than the previous year, with support costs being 13.5% higher (38.8% lower) than the previous year.
The Theatre is reporting an increase in funds of £12,045 for the year ending 31 March 2022 (2021 - an increase in funds of £43,000), The Charity’s interim budget for the new financial year 2022-23 shows an expected small surplus going forward following the lifting of the Covid lockdown regulations, and the opening up of the Theatre.
Page 3
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Financial review
a. Going concern
The Trustees have considered the Charity’s position at the time of signing the financial statements. The considerable support received and some difficult choices as to operations means that there are sufficient available funds for the theatre to continue and to set in place plans for 2022/23 that ensure the Theatre can continue to be an essential part of the offering to North Norfolk residents and visitors.
Based on this, the Trustees have concluded that they have a reasonable expectation that the Charity will have adequate resources to continue in operational existence for the foreseeable future, and at least twelve months from the date of signing these financial statements, they therefore continue to adopt the going concern basis of accounting in preparing these financial statements.
b. Reserves policy
The Society reviews its reserves policy annually. This review encompasses the nature of the income and expenditure streams, the need to match variable income with fixed commitments and the nature of the reserves. The review concluded that, based on its general reserves policy, a general reserve fund of in excess of £85,000 should be sought as this reflects the ongoing costs of the charity, on the assumption that the reserves should cover costs if the theatre were forced to suspend its operations for a period of four months. At 31 March 2022, the unrestricted reserves totalled £264,358. This represents the surplus on activities undertaken by the Society and is used to finance future activities. Reserves include £128,871* designated for the redevelopment of the theatre building. Restricted reserves were £Nil at the balance sheet date.
(*£47.4k is allocated for the depreciation of assets purchased 2018/19 and 2019/20)
Structure, governance and management
a. Constitution
The company and the group is registered as a charitable company limited by guarantee and was set up by a Trust deed .
The company and the group is constituted under a Trust deed and is a registered charity number 1090394.
b. Methods of appointment or election of Trustees
The management of the Group and the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.
Page 4
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Structure, governance and management (continued)
c. Pay policy for senior staff
Sheringham Little Theatre Society employed 18 staff during the financial year, working on the Front of House, in Technical Services, and in the Hub cafe, as well as support staff covering the finance and administration functions in the upstairs office.
Sheringham Little Theatre is committed to equality of opportunity for all, whether that be our employees, applicants for employment, volunteers, supporters or users of our services. We work to ensure that no person is discriminated against, for example by having fair systems in place for recruitment and selection and pay and recognition, and believe that everyone has the right to be treated fairly. We understand our responsibilities under the Equality Act 2010, with a no tolerance approach to discrimination on the grounds of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.
The Charity is committed to the training and development of all staff and with staff delivering such a variety of work for the Charity, Sheringham Little Theatre Society has a bespoke job evaluation scheme in order to assess each role.
Pay is reviewed annually and as for the key management personnel is benchmarked against pay levels in other provincial theatres of a similar size as well as being mindful of pay levels in the local area.
Page 5
SHERINGHAM LITTLE THEATRE SOCIETY (A company limitod by guarnnl•e) TRUSTEES. REPORT (CONTINIJEDI FOR THE YEAR ENDED 31 MARCH 2022 ststement ot Trustees. responslbllltleg The Tru$lees (who a also the directors of the charity for the pu$8$ of company law) ar8 responsble lor preparing th8 Trustees, report and the financial statements in &cordance with applicable law and United Krydom Accounting Standards (United Kingdom Generalty Accepted Accounting Practice). Company law requires th¥ Trustees to prepare final1*1 statements for each financlal year. Under company law. th8 Trustees musl not approve the financial statement5 unless they are $otisfEd that they give a true and fair ew of the slate of affair8 of the Group and the charity and of thelr incoming resources and application of resources. includirg their income and èxpenditure, for that period. In preparing the financial statements, the Tru$tse$ are rfr4uirgd to.. select 8ultable accountlng policies and then appty them consistently, obseNe the methods and prinople8 of the ChaTitres SORP IFRS 102)., make judgments ?d accounting estimates that are reasonabl& and prudent., slate vthether applicable UK Accounting Stsndards IFRS 102) have been follwmd, subj8ct to any materknql departures disclosed explalngd in the financkal stalam8nls', prepare the financial statements on the going concern baskg unless itls inappropri&ts to presume that the Group will continue in business. The Trustees are responsib for keeping adequate accounting records that are sufficient to show and èxpfain the Group and the ¢haritls transXtions and disdose with rèasonable a¢curxy at Y time the financial position of th8 Group and tha charity and enable them to ensure that the financial statements Comply with the Companies Act 20C6. They are afso responsible for safeguarding the assets of the Group and the charty and hence for taking rea$able steps for the prevention and detection of fraud and other irregukriti'es. Approved ty order of the mombgrs ofth8 board of Trust88s and nedont r behaW by". J Beak {Trustee) (Trusleel 23111/2022 Page 6
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2022
Independent examiner's report to the Trustees of Sheringham Little Theatre Society ('the Group')
I report to the charity Trustees on my examination of the consolidated accounts of the Group comprising the Sheringham Little Theatre Society ('the parent charity') and its subsidiary undertakings for the year ended 31 March 2022.
Responsibilities and basis of report
As the Trustees of the parent charity (and its directors for the purposes of company law) you are responsible for the preparation of the consolidated accounts of the Group in accordance with the requirements of the Companies Act 2006 ('the 2006 Act') and you have chosen to prepare consolidated accounts for the Group. You are satisfied that the accounts of both parent charity and the Group are not required by either company or charity law to be audited and have chosen instead to have an independent examination.
Having satisfied myself that the consolidated accounts 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 Group's accounts carried out under section 152 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 152(5)(b) of the 2011 Act.
An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no option as to whether the consolidated accounts present a 'true and fair' view and my report is limited to those specific matters set out in the independent examiner's statement.
Independent examiner's statement
Since the Trustees have opted to prepare consolidated accounts for the Group 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 the Institute of Chartered Accountants in England and Wales, 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:
-
accounting records were not kept in respect of the parent charity and its subsidiaries as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
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 accounts to be reached.
Page 7
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the parent charity and the charity's Trustees as a body, for my work or for this report.
Signed: Dated: 25 November 2022 Julie Grimmer FCA DChA
Larking Gowen LLP Chartered Accountants King Street House 15 Upper King Street Norwich NR3 1RB
Page 8
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022
| Note Income from: Donations and legacies: 3 Total Grants and Donations . Other donations and legacies Charitable activities 4 Other trading activities 5 Investments 6 Total income Expenditure on: Raising funds Charitable activities Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ 75,523 7,295 144,145 175,443 17 402,423 90,788 253,533 344,321 58,102 206,256 58,102 264,358 |
Restricted funds 2022 £ 43,780 - - - - 43,780 - 89,837 89,837 (46,057) 46,057 (46,057) - |
Total funds 2022 £ 119,303 7,295 144,145 175,443 17 446,203 90,788 343,370 434,158 12,045 252,313 12,045 264,358 |
Total funds 2021 £ 221,855 5,265 92,907 29,566 152 349,745 |
|---|---|---|---|---|
| 56,868 249,877 306,745 |
||||
| 43,000 | ||||
| 209,313 43,000 252,313 |
The Consolidated statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 14 to 34 form part of these financial statements.
Page 9
SHERINGHAM LITTLE THEATRE SOCIETY IA company limitfjd by guarantsel REGISTERED NUMBER: 04310613 CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022 2022 2021 Note Fuod •Mots Tangible assets 12 75,559 92,5Q5 75,559 92,5 Current assets wks Deb Cash al bar and in hand 14 15 1,$24 26,678 227A68 42.433 181.538 223,971 Crgditors.. amounts falfiry due wihin one year 16 166.869) (64, 163) ¢urr•nt assets 188,799 159.808 Total assets 252.313 Charlty funds Restricted funds Unrestricted fund8 17 17 46,057 206.256 Totsl funds 284,358 252,313 The charity was entiued to exernpt from audit under section 47T ofth8 Companies Act 2006. The member8 have not requlred the compary to (tain an audf( for the year in queStiC in accordance with sertion 476 of Companies Act 2006. Th8 Tru$l88s acknosdge th8Fr responsibile3 for compl1) with the requir o¢counting rettrfds and preparat1n of financial sLments. ents of the Act with respect to Th8 finarKial staternts have been prePor in accordance with the prothsi the small ccnpan regimg. applicable lo entrtle8 subj1 to The financial stateme re approv•Y and authtxised for issue b tses and signed on their behdf bw. M Burrows (Trusteel Date: 23111/2022 trruste Tho notes on pages 14 to 34 form part of these financial statements. Page10
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee) REGISTERED NUMBER: 04310613
CHARITY BALANCE SHEET AS AT 31 MARCH 2022
| Note Fixed assets Tangible assets 12 Investments 13 Current assets Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Total net assets Charity funds Restricted funds 17 Unrestricted funds 17 Total funds |
19,516 217,827 237,343 (125,682) |
2022 £ 75,559 100 75,659 111,661 187,320 187,320 - 187,320 187,320 |
20,728 181,013 201,741 (116,258) |
2021 £ 92,505 100 |
|---|---|---|---|---|
| 92,605 85,483 |
||||
| 178,088 | ||||
| 178,088 | ||||
| 46,057 132,031 |
||||
| 178,088 |
Page 11
SHERINGHAM LrrrLE THEATRE SOCIETY (A Company lirnit8d by guarnntsel REGISTERED NUMBER: IM310613 CHARITY BALANCE SHEET ICONTINUEDI AS AT 31 MARCH 2022 Tho charty was entitled to exemption from audit under 6tIOn 477 oftho Companies Act 2006. The members have not required the company to obtsin an audrt for the in question in accordonc9 With sett 476 of Companies Act 2006. The Trust ackn¢)wledga their rospon5ibilitie8 for complyng with the requirements of the Act with respect to accounting records and preparation of financi81 statements. The financi81 ststement8 have been prepared in accordancg wth the provislon th? small ¢crfnpanias raglme. ,appllcable lo entities sublKt Io Tho financial ststomgnts Wera 4proved and 8uthc*ised for issue y the Trust s and signed on thelr behall by.. Burrows (rruslee) Dste.. 23111/2022 The notes on pag8$ 14 to 34 form part of these finala1 Statsments. J Beak (Trusteel Page 12
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 14 to 34 form part of these financial statements |
2022 £ 56,989 17 (11,076) (11,059) 45,930 181,538 227,468 |
2021 £ 41,286 152 (7,455) (7,303) 33,983 147,555 181,538 |
|---|---|---|
Page 13
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Sheringham Little Theatre Society meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Statement of financial activities (SOFA) and Balance sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.
1.2 Company status
The company is a company limited by guarantee registered in England and Wales. The registered address is 2 Station Road, Sheringham, Norfolk, NR26 8RE. The members of the company are the Trustees named on page . In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
1.3 Going concern
The Trustees have considered the Charity’s position at the time of signing the financial statements, and in particular the Trustees have considered the current financial strength of the Charity, together with the range of measures the Trustees can take to mitigate ongoing costs should they need to.
Based on this, the Trustees have concluded that they have a reasonable expectation that the Charity will have adequate resources to continue in operational existence for the foreseeable future, and at least twelve months from the date of signing these financial statements, they therefore continue to adopt the going concern basis of accounting in preparing these financial statements.
1.4 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Page 14
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. Accounting policies (continued)
1.5 Expenditure
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 allocated on the portion of the asset’s use.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the company and compliance with constituional and statutory requirements.
Costs of generating funds are costs incurred in attracting voluntary income and those incurred in trading activities that raise funds.
1.6 Basis of consolidation
The financial statements consolidate the accounts of Sheringham Little Theatre Society and all of its subsidiary undertakings ('subsidiaries').
The company has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own Income and expenditure account.
The income and expenditure account for the year dealt with in the accounts of the company was a surplus of £9,232 (2021: £129,734)
1.7 Turnover
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.
1.8 Tangible fixed assets and depreciation
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Page 15
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. Accounting policies (continued)
1.8 Tangible fixed assets and depreciation (continued)
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following bases:
- Long-term leasehold property 10% Straight line basis - Fixtures and fittings 20% Straight line basis
1.9 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
1.10 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.
1.11 Volunteers
The value of services provided by volunteers and suppliers is not incorporated into the financial statements.
1.12 Operating Leases
Rentals under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.
1.13 Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
1.14 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.15 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 16
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. Accounting policies (continued)
1.16 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.
1.17 Financial instruments
The Group only has financial assets and financial 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.18 Taxation
The Group is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
1.19 Pensions
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
Page 17
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. Accounting policies (continued)
1.20 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
2. Critical accounting estimates and areas of judgment
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Allocation of expenditure between direct and support costs, and within that to governance and generating funds, is on the basis of staff time calculations compiled by head of operations.
Critical areas of judgment:
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilization and the physical condition of the assets. See note 12 for the carrying amount of property, plant and equipment and note 1.8 for the useful economic lives for each class of assets.
Page 18
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
3. Income from donations and legacies
| Unrestricted funds 2022 £ Donations 19,450 Grants 56,073 Membership 7,295 82,818 Total 2021 97,833 |
Restricted funds 2022 £ - 43,780 - 43,780 129,287 |
Total funds 2022 £ 19,450 99,853 7,295 126,598 227,120 |
Total funds 2021 £ 15,934 205,921 5,265 227,120 |
|---|---|---|---|
4. Income from charitable activities
| Unrestricted funds 2022 £ Operation of Theatre 140,754 Coronavirus Job Retention Scheme 3,391 144,145 Total 2021 87,407 |
Restricted funds 2022 £ - - - 5,500 |
Total funds 2022 £ 140,754 3,391 144,145 92,907 |
Total funds 2021 £ 26,872 66,035 92,907 |
|---|---|---|---|
Page 19
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
5. Income from non charitable trading activities Income from non charitable trading activities
| Unrestricted funds 2022 £ Tax recoverable 7,151 Other income 56,748 Subsidiary Income 111,544 Total 2022 175,443 Total 2021 29,566 6. Investment income Unrestricted funds 2022 £ Investment income 17 Total 2021 152 |
Total funds 2022 £ 7,151 56,748 111,544 175,443 29,566 Total funds 2022 £ 17 152 |
Total funds 2021 £ - - 29,566 29,566 |
|---|---|---|
| Total funds 2021 £ 152 |
||
Page 20
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
7. Analysis of expenditure by activities
| Operation of Theatre Total 2021 Analysis of support costs Staff costs Depreciation Rates, light and heat Theatre and Maintenance Hire of Equipment Cleaning Insurance Advertising and Marketing General Office Equipment Motor and travelling Computer maintenance Subscriptions and licenses Bank and credit card charges Sundry Contract Staff Legal and professional Governance costs Total 2022 Total 2021 |
Activities undertaken directly 2022 £ 102,733 37,909 |
Support costs 2022 £ 240,637 211,968 Operation of Theatre 2022 £ 125,308 28,024 18,957 9,040 497 3,102 4,706 8,135 6,950 3,490 11,957 415 2,674 1,606 7,848 1,000 6,928 240,637 211,968 |
Total funds 2022 £ 343,370 249,877 Total funds 2022 £ 125,308 28,024 18,957 9,040 497 3,102 4,706 8,135 6,950 3,490 11,957 415 2,674 1,606 7,848 1,000 6,928 240,637 211,968 |
Total funds 2021 £ 249,877 |
|---|---|---|---|---|
| Total funds 2021 £ 116,567 26,469 11,718 9,527 672 2,803 4,247 3,917 6,363 1,602 10,851 370 1,346 658 9,448 - 5,410 211,968 |
||||
Page 21
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
8. Independent examiner's remuneration
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Fees payable to the charity's independent examiner for the independent | ||
| examination of the charity's annual accounts | 3,300 | 3,300 |
9. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
Group 2022 £ 167,649 6,406 2,510 176,565 |
Group 2021 £ 155,612 4,254 1,919 161,785 |
Company 2022 £ 123,734 5,399 2,101 131,234 |
Company 2021 £ 118,137 3,966 1,716 |
|---|---|---|---|---|
| 123,819 |
During the year, payments in lieu of notice of £Nil (2021: £3,884) were made to staff.
The average number of persons employed by the charity during the year was as follows:
| Group | Group |
|---|---|
| 2022 | 2021 |
| No. | No. |
| 16 | 14 |
No employee received remuneration amounting to more than £60,000 in either year.
The Board considers the key management personnel of the Sheringham Little Theatre Society in charge of directing and controlling the Theatre to comprise the Trustees, the Theatre Director and the Finance Manager. In the previous period the Technical Manager, the Kitchen Manager and the Marketing Manager were also included in Key management personnel. The total employee benefits of the key management personnel were £69,541 (2021: £84,900).
Pay is reviewed annually and in view of the nature of the charity is benchmarked against pay levels in other provincial theatres of a similar size. All trustees give their time freely and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in note 24.
Page 22
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
. Support Costs and Trading Activity
| Salaries and Wages Social security Pension . Performance Costs Salaries and Wages Social Security |
2022 £ 161,974 6,156 2,510 170,640 2022 £ 5,675 250 5,925 |
2021 £ 152,812 4,069 1,919 158,800 |
|---|---|---|
| 2021 £ 2,800 185 2,985 |
10. Turnover
The whole of the turnover is attributable to the operation of the theatre.
All turnover arose within the United Kingdom.
11. Net income/(expenditure)
This is stated after charging:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets: | ||
| - owned by the charitable group | 28,022 | 26,468 |
| Operating lease rental | 1,113 | 1,113 |
During the year, no Trustees received any remuneration (2021 - £Nil) During the year, no Trustees received any benefits in kind (2021 - £Nil) During the year, no Trustees received any reimbursement of expenses (2021 - £Nil)
Page 23
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
12. Tangible fixed assets
Group
| Cost or valuation At 1 April 2021 Additions At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Long-term leasehold property £ 144,385 - 144,385 79,189 14,438 93,627 50,758 65,196 |
Fixtures and fittings £ 313,547 11,076 324,623 286,238 13,584 299,822 24,801 27,309 |
Total £ 457,932 11,076 469,008 |
|---|---|---|---|
| 365,427 28,022 393,449 |
|||
| 75,559 | |||
| 92,505 |
Page 24
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
12. Tangible fixed assets (continued)
Company
| Cost or valuation At 1 April 2021 Additions At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Long-term leasehold property £ 144,385 - 144,385 79,189 14,438 93,627 50,758 65,196 |
Fixtures and fittings £ 313,547 11,076 324,623 286,238 13,584 299,822 24,801 27,309 |
Total £ 457,932 11,076 469,008 |
|---|---|---|---|
| 365,427 28,022 393,449 |
|||
| 75,559 | |||
| 92,505 |
Page 25
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
13. Fixed asset investments
| charity Cost or valuation At 1 April 2021 At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Investments in subsidiary companies £ 100 |
|---|---|
| 100 | |
| 100 | |
| 100 |
14. Stocks
| Group | Group | |
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Bar stock | 1,524 | - |
An impairment charge of £Nil (2021: £446) was recognised as an expense in the year.
15. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income Tax recoverable |
Group 2022 £ 4,596 2,218 12,720 7,142 26,676 |
Group 2021 £ - - 20,930 21,503 42,433 |
Company 2022 £ 4,578 2,218 12,720 - 19,516 |
Company 2021 £ - - 20,728 - 20,728 |
|---|---|---|---|---|
Page 26
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
16. Creditors: Amounts falling due within one year
| Trade creditors Amounts owed to group undertakings Other taxation and social security Other creditors Accruals and deferred income Deferred income at 1 April 2021 Resources deferred during the year Amounts released from previous periods |
Group 2022 £ 22,060 - 2,441 1,379 40,989 66,869 Group 2022 £ 21,068 22,909 (21,068) 22,909 |
Group 2021 £ 15,934 - 4,788 622 42,819 64,163 Group 2021 £ 29,716 21,068 (29,716) 21,068 |
Company 2022 £ 19,657 65,592 2,441 1,139 36,853 125,682 Company 2022 £ 21,068 22,909 (21,068) 22,909 |
Company 2021 £ 14,404 54,696 4,788 587 41,783 116,258 Company 2021 £ 28,986 21,068 (28,986) 21,068 |
|---|---|---|---|---|
Deferred income consists of amounts received before the year end relating to performances after the year end.
Page 27
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
17. Statement of funds
Statement of funds - current year
| Unrestricted funds Designated funds Designated Funds - all funds General funds General Funds - all funds Total Unrestricted funds Restricted funds North Norfolk District Council Norfolk County Council Emergency business grant Lockdown and local restriction grants Theatres Trust Other grants Total of funds |
Balance at 1 April 2021 £ 116,787 89,469 206,256 - - 25,000 16,057 5,000 - 46,057 252,313 |
Income £ - 402,423 402,423 38,000 4,780 - - - 1,000 43,780 446,203 |
Expenditure £ (9,419) (334,902) (344,321) (38,000) (4,780) (25,000) (16,057) (5,000) (1,000) (89,837) (434,158) |
Transfers in/out £ 21,503 (21,503) - - - - - - - - - |
Balance at 31 March 2022 £ 128,871 |
|---|---|---|---|---|---|
| 135,487 | |||||
| 264,358 | |||||
| - - - - - - - |
|||||
| 264,358 |
Page 28
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
17. Statement of funds (continued)
The designated fund relates to money put aside for the redevelopment of the theatre building in Sheringham.
The restricted fund relates to grants give to the charity to aid with developing youth participation and education in theatre.
North Norfolk District Council - To assist in the provision/operation of a theatre in Sheringham.
Norfolk County Council - To assist in the provision/operation of a theatre in Sheringham.
Arts Council Emergency Response Fund - To provide some financial assistance during the Covid-19 emergency.
Lockdown and local restriction Grants - Financial support for businesses during the Covid-19 emergency.
Theatres Trust - To fund facia boards and new signage.
Other Grants - includes grants received from Sheringham Town Council to assist in the provision/operation of a theatre in Sheringham.
Page 29
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
17. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds Designated funds Designated Funds - all funds General funds General Funds - all funds Total Unrestricted funds Restricted funds North Norfolk District Council Norfolk County Council Arts council emergency response Emergency business grant Rewriting Rural Racism grant Lockdown and local restriction grants Theatres Trust Other grants Total of funds |
Balance at 1 April 2020 £ 126,205 83,108 209,313 - - - - - - - - - 209,313 |
Income £ - 214,958 214,958 38,000 4,780 20,000 25,000 17,950 16,057 5,000 8,000 134,787 349,745 |
Expenditure £ (9,418) (208,597) (218,015) (38,000) (4,780) (20,000) - (17,950) - - (8,000) (88,730) (306,745) |
Balance at 31 March 2021 £ 116,787 |
|---|---|---|---|---|
| 89,469 | ||||
| 206,256 | ||||
| - - - 25,000 - 16,057 5,000 - 46,057 |
||||
| 252,313 |
Page 30
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
18. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2022 £ Tangible fixed assets 75,559 Current assets 255,668 Creditors due within one year (66,869) Total 264,358 |
Total funds 2022 £ 75,559 255,668 (66,869) 264,358 |
|---|---|
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2021 £ 92,505 177,914 (64,163) 206,256 |
Restricted funds 2021 £ - 46,057 - 46,057 |
Total funds 2021 £ 92,505 223,971 (64,163) 252,313 |
|---|---|---|---|
Page 31
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
19. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Interest received Decrease/(increase) in stocks Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash provided by operating activities 20. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents 21. Analysis of changes in net debt At 1 April 2021 £ Cash at bank and in hand 181,538 181,538 |
Group 2022 £ 12,045 28,022 (17) (1,524) 15,757 2,706 56,989 Group 2022 £ 227,468 227,468 Cash flows £ 45,930 45,930 |
Group 2021 £ 43,000 26,469 (152) 446 (5,655) (22,822) 41,286 Group 2021 £ 181,538 181,538 At 31 March 2022 £ 227,468 227,468 |
|---|---|---|
Page 32
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
22. Pension commitments
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £2,510 (2021 - £1,918). Contributions totaling £627 (2021 - £400) were payable to the fund at the balance sheet date and are included in creditors.
23. Operating lease commitments
At 31 March 2022 the Group and the charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
| Amounts payable other Not later than 1 year Later than 1 year and not later than 5 years Amounts payable Land & Buildings Not later than 1 year Later than 1 year and not later than 5 years After more than 5 years |
Group 2022 £ 1,112 1,483 2,595 Group 2022 £ 1 3 - 4 |
Group 2021 £ 1,112 2,595 3,707 Group 2021 £ 1 4 - 5 |
Company 2022 £ 1,112 1,483 2,595 Company 2022 £ 1 3 - 4 |
Company 2021 £ 1,112 2,595 |
|---|---|---|---|---|
| 3,707 | ||||
| Company 2021 £ 1 4 - 5 |
Page 33
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
24. Related party transactions
The society has a close relationship with the North Norfolk District Council. An annual grant (note 3) is received from this body. The freehold property from which the Society operates is owned by North Norfolk District Council (note 23).
Peter Davies, Trustee of Sheringham Little Theatre Society Limited, is a Director of Breakwater IT Limited. Sheringham Little Theatre Society Limited purchased IT equipment from Breakwater IT Limited costing £10,434 during the year (2021: £7,246). A creditor balance of £Nil (2021: £660) was outstanding at the year end.
Richard Batson, Trustee of Sheringham Little Theatre Society Limited performed work in the form of freelance publicity services at a rate of £20 per hour totalling £2,870 during the year (2021: £2,265). A creditor balance of £Nil was outstanding at the year end (2021: £Nil).
25. Principal subsidiaries
Sheringham Hub Limited
| Subsidiary name | Sheringham Hub Limited |
|---|---|
| Company registration number | 08133831 |
| Basis of control | Shareholding |
| Equity shareholding % | 100% |
| Total assets as at 31 March 2022 | £83,917 |
| Total liabilities as at 31 March 2022 | £6,779 |
| Total equity as at 31 March 2022 | £77,138 |
| Turnover for the year ended 31 March 2022 | £190,644 |
| Expenditure for the year ended 31 March 2022 | £166,795 |
| Other operating income for the year ended 31 March 2022 £132 | |
| Profit for the year ended 31 March 2022 | £2,813 |
Page 34