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 2023
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 - 5 |
| Independent examiner's report | 6 - 7 |
| Consolidated statement of financial activities | 8 |
| Consolidated balance sheet | 9 |
| Charity balance sheet | 10 - 11 |
| Consolidated statement of cash flows | 12 |
| Notes to the financial statements | 13 - 32 |
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 2023
| Trustees | M Ashcroft |
|---|---|
| R Batson | |
| J Beak, Chair | |
| A Munden (appointed 12 May 2022) | |
| K Nichols (appointed 18 May 2023) | |
| D Ward | |
| M Burrows, Chair (resigned 30 November 2022) | |
| P Davies (resigned 21 October 2022) | |
| R Ellis (resigned 23 July 2022) | |
| C Mckay-Haynes (resigned 3 November 2022) | |
| A Rees-Myers (resigned 3 November 2022) | |
| S Smith (resigned 31 January 2023) | |
| Company registered number 04310613 Charity registered number 1090394 Registered office 2 Station Road Sheringham Norfolk NR26 8RE Independent examiners Larking Gowen LLP Chartered Accountants 1st Floor Prospect House Rouen Road Norwich NR1 1RE |
Page 1
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023
The Trustees present their annual report together with the financial statements of the group and the company for the 1 April 2022 to 31 March 2023. 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
This year represents the first full year of trading since the COVID pandemic, and the theatre and Hub café were able to offer a full range of events. The limit on numbers and seating was also able to be increased to pre pandemic levels. However, attendance levels remained down on pre-pandemic levels.
In the first quarter of the financial year there were 164 theatre productions including: a youth Musical Theatre concert and a piece of history youth showcase, The Squirrels Big Night Out, touring shows from Eastern Angles, Norfolk and Norwich Festival and The Ink Festival.
In the summer, a summer season of events took place. The summer productions were: Stags and Hens by Willy Russell, Wait until Dark by Frederick Knott and Table Manners by Alan Ayckbourn. We worked with Theatre on the Coast, to produce the musical Summer Holiday.
In the Autumn there was a fundraising amateur production of Talking Heads and Radio Fun performed by the Little Theatre Players. This year’s Pantomime was Snow White which returned to pre-pandemic performances. The show was a success, however ticket sales were significantly down on pre pandemic levels.
We were closed during January 2023 while the Theatre and Hub underwent a major refurbishment.
Popular local amateur dramatic groups returned to hire the theatre at the beginning of 2023 with Stage Direct and Cromer and Sheringham Operatic and Dramatic Society performing and The Little Theatre Players performing Hobson’s Choice in March 2023. Youth and drama workshops took place during the year again in line with pre pandemic availability levels.
Local authority grant support for the financial year came from – North Norfolk District Council (£41k) and Norfolk County Council (£4.8k).
Other grants and funding have also been obtained including Norfolk County Council Apprenticeship Grants (£6.5k), Norfolk County Council Social infrastructure fund grants (£40k), North Norfolk District Council refurbishment and Energy Grants (£30k), as well as Grants from the lottery and others (£12.5k).
The theatre was extremely fortunate to receive a number of significant donations during the year totalling 112k including donations of £50k from the Joyce Utting Will Trust, £15k from a Legacy from Miss Allard legacy trust and a £25k from Hollands.
A sponsorship programme that was put in place last year, continues to be an important source of income for the Little Theatre and is something which we are looking to develop further.
We continued with a ticketing service to the Sheringham and Cromer Choral Society for their performances at St Peter’s Church, Sheringham and Cromer Parish Church and continued our programmes, working with young people. To continue to be able to contribute to the community in this way, it is vital that we continue to seek funding and increase our sponsorship.
Page 2
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Achievements and performance (continued)
b. Performance
Income from operational activities increased by 80% (2022: increased by 55%), and total costs increased by 36% (2022: increased by 41.5%). Direct cost of productions were 64% higher (2022: 171% higher) than the previous year, with support costs being 23% higher (13.5% higher) than the previous year, the increase in operational activities being principally due to operating in the first full year post pandemic and the costs increase being a combination of this and a general increase in costs.
The Theatre is reporting an increase in funds of £130,191 for the year ending 31 March 2023 (2022 - an increase in funds of £12,045) principally due to the large donations and the relatively short term benefit of theatre tax relief were otherwise we would have operated at around break even. The Charity’s interim budget for the new financial year 2023-24 shows a slight deficit for the year, with actions being taken to increase revenue to reduce this.
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 2023/24 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 Group 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 £100,000 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. Designated or restricted reserves are for commitments already made or subject to specific designation at the time of donation.
At 31 March 2023, the unrestricted reserves totalled £394,049 (2022: £264,358). This represents the surplus on activities undertaken by the Group and is used to finance future activities. Reserves include £92,234 (2022: £81,482) designated for the redevelopment of the theatre building and £130,658 (£47,388) of designated funds allocated for the depreciation of fixed assets. Restricted reserves were £500 (2022: £nil) at the balance sheet date.
Free reserves, being general funds excluding any such amounts represented by tangible fixed assets, totalled £155,883 (2022: £107,316).
Page 3
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
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 coopted under the terms of the Trust deed. Structure, governance and management.
c. Pay policy for senior staff
Sheringham Little Theatre Society employed an average of 19 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 4
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................ ................................................ J Beak K Nichols (Trustee) (Trustee) Date:
Page 5
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2023
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 2023.
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 6
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
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:
Julie Grimmer
FCA DChA
Larking Gowen LLP Chartered Accountants 1st Floor Prospect House Rouen Road Norwich NR1 1RE
Page 7
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 2023
| 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 income Transfers between funds 17 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2023 £ 111,543 7,553 260,076 207,340 375 586,887 126,876 409,805 536,681 50,206 79,485 129,691 264,358 129,691 394,049 |
Restricted funds 2023 £ 134,208 - - - - 134,208 - 54,223 54,223 79,985 (79,485) 500 - 500 500 |
Total funds 2023 £ 245,751 7,553 260,076 207,340 375 721,095 126,876 464,028 590,904 130,191 - 130,191 264,358 130,191 394,549 |
Total funds 2022 £ 119,303 7,295 144,145 175,443 17 |
|---|---|---|---|---|
| 446,203 | ||||
| 90,788 343,370 |
||||
| 434,158 | ||||
| 12,045 - |
||||
| 12,045 | ||||
| 252,313 12,045 |
||||
| 264,358 |
The Consolidated statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 13 to 32 form part of these financial statements.
Page 8
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee) REGISTERED NUMBER: 04310613
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2023
| Note Fixed assets Tangible assets 12 Current assets Stocks 14 Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total net assets Charity funds Restricted funds 17 Unrestricted funds 17 Total funds |
2,090 59,851 264,694 326,635 (78,017) |
2023 £ 145,931 145,931 248,618 394,549 500 394,049 394,549 |
1,524 26,676 227,468 255,668 (66,869) |
2022 £ 75,559 |
|---|---|---|---|---|
| 75,559 188,799 |
||||
| 264,358 | ||||
| - 264,358 |
||||
| 264,358 |
The charity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
J Beak
................................................ K Nichols
Date:
The notes on pages 13 to 32 form part of these financial statements.
Page 9
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 04310613
CHARITY BALANCE SHEET AS AT 31 MARCH 2023
| 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 |
24,828 250,047 274,875 (153,859) |
2023 £ 145,931 100 146,031 121,016 267,047 267,047 500 266,547 267,047 |
19,516 217,827 237,343 (125,682) |
2022 £ 75,559 100 |
|---|---|---|---|---|
| 75,659 111,661 |
||||
| 187,320 | ||||
| 187,320 | ||||
| - 187,320 |
||||
| 187,320 |
Page 10
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 04310613
CHARITY BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023
The charity's net movement in funds for the year was £ 79,727 (2022 - £9,232) .
The charity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................ ................................................
J Beak
K Nichols
Date:
The notes on pages 13 to 32 form part of these financial statements.
Page 11
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Dividends, interests and rents from investments Proceeds from the sale of tangible fixed assets 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 |
2023 £ 144,424 375 3,300 (110,873) (107,198) 37,226 227,468 264,694 |
2022 £ 56,989 17 - (11,076) (11,059) 45,930 181,538 227,468 |
|---|---|---|
The notes on pages 13 to 32 form part of these financial statements
Page 12
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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 2019), 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 1. 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 13
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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.
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.
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
Page 14
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1. Accounting policies (continued)
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 15
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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 16
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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 17
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
3. Income from donations and legacies
| Unrestricted funds 2023 £ Donations 111,543 Grants - Membership 7,553 119,096 Total 2022 82,818 |
Restricted funds 2023 £ - 134,208 - 134,208 43,780 |
Total funds 2023 £ 111,543 134,208 7,553 253,304 126,598 |
Total funds 2022 £ 19,450 99,853 7,295 |
|---|---|---|---|
| 126,598 | |||
4. Income from charitable activities
| Unrestricted funds 2023 £ Operation of Theatre 260,076 Coronavirus Job Retention Scheme - 260,076 Total 2022 144,145 |
Total funds 2023 £ 260,076 - 260,076 144,145 |
Total funds 2022 £ 140,754 3,391 |
|---|---|---|
| 144,145 | ||
Page 18
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
5. Income from non charitable trading activities Income from non charitable trading activities
| Subsidiary Income Tax recoverable Other income Total 2023 Total 2022 6. Investment income Investment income Total 2022 7. Analysis of expenditure by activities Operation of Theatre Total 2022 |
Unrestricted funds 2023 £ 172,941 34,399 - 207,340 175,443 Unrestricted funds 2023 £ 375 17 Activities undertaken directly 2023 Support costs 2023 £ £ 168,134 295,894 102,733 240,637 |
Total funds 2023 £ 172,941 34,399 - 207,340 175,443 Total funds 2023 £ 375 17 Total funds 2023 £ 464,028 343,370 |
Total funds 2022 £ 111,544 7,151 56,748 |
|---|---|---|---|
| 175,443 | |||
| Total funds 2022 £ 17 |
|||
| Total funds 2022 £ 343,370 |
|||
Page 19
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
7. Analysis of expenditure by activities (continued)
Analysis of support costs
| Operation of Theatre 2023 £ Staff costs 141,797 Depreciation 31,852 Rates, light and heat 23,745 Theatre and Maintenance 4,995 Hire of Equipment 1,047 Cleaning 3,116 Insurance 6,296 Advertising and Marketing 17,596 General Office Equipment 9,664 Motor and travelling 3,341 Computer maintenance 12,122 Subscriptions and licenses 1,266 Bank and credit card charges 5,368 Sundry 4,422 Non recoverable VAT 8,567 Contract Staff 14,722 Legal and professional 25 Governance costs 5,953 Total 2023 295,894 Total 2022 240,637 8. Independent examiner's remuneration Fees payable to the charity's independent examiner for the independent examination of the charity's annual accounts |
Total funds 2023 £ 141,797 31,852 23,745 4,995 1,047 3,116 6,296 17,596 9,664 3,341 12,122 1,266 5,368 4,422 8,567 14,722 25 5,953 295,894 240,637 2023 £ 3,800 |
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 | ||
| 2022 £ 3,500 |
Page 20
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
9. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
Group 2023 £ 197,285 5,282 3,125 205,692 |
Group 2022 £ 167,649 6,406 2,510 176,565 |
Company 2023 £ 141,145 5,282 2,455 148,882 |
Company 2022 £ 123,734 5,399 2,101 |
|---|---|---|---|---|
| 131,234 |
The average number of persons employed by the charity during the year was as follows:
| Group | Group |
|---|---|
| 2023 | 2022 |
| No. | No. |
| 19 | 16 |
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 £57,216 (2022: £69,541).
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.
Support Costs and Trading Activity
| Salaries and Wages Social security Pension |
2023 £ 190,200 4,970 3,125 198,295 |
2022 £ 161,974 6,156 2,510 |
|---|---|---|
| 170,640 |
Page 21
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
Performance Costs
| Salaries and Wages Social Security |
2023 £ 7,085 312 7,397 |
2022 £ 5,675 250 |
|---|---|---|
| 5,925 |
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:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets | 33,978 | 28,022 |
| Operating lease rental | 1,113 | 1,113 |
During the year, no Trustees received any remuneration (2022 - £Nil) During the year, no Trustees received any benefits in kind (2022 - £Nil) During the year, no Trustees received any reimbursement of expenses (2022 - £Nil)
Page 22
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
12. Tangible fixed assets
Group
| Cost or valuation At 1 April 2022 Additions Disposals At 31 March 2023 Depreciation At 1 April 2022 Charge for the year On disposals At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 |
Long-term leasehold property £ 144,385 101,832 (77,170) 169,047 93,627 21,984 (72,307) 43,304 125,743 50,758 |
Fixtures and fittings £ 324,623 9,041 (30,457) 303,207 299,822 11,994 (28,797) 283,019 20,188 24,801 |
Total £ 469,008 110,873 (107,627) 472,254 393,449 33,978 (101,104) 326,323 145,931 75,559 |
|---|---|---|---|
Page 23
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
12. Tangible fixed assets (continued)
Company
| Cost or valuation At 1 April 2022 Additions Disposals At 31 March 2023 Depreciation At 1 April 2022 Charge for the year On disposals At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 |
Long-term leasehold property £ 144,385 101,832 (77,170) 169,047 93,627 21,984 (72,307) 43,304 125,743 50,758 |
Fixtures and fittings £ 324,623 9,041 (30,457) 303,207 299,822 11,994 (28,797) 283,019 20,188 24,801 |
Total £ 469,008 110,873 (107,627) 472,254 393,449 33,978 (101,104) 326,323 145,931 75,559 |
|---|---|---|---|
Page 24
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
13. Fixed asset investments
| Company Cost or valuation At 1 April 2022 At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 |
Investments in subsidiary companies £ 100 |
|---|---|
| 100 | |
| 100 | |
| 100 |
14. Stocks
| Group | Group | |
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Bar stock | 2,090 | 1,524 |
An impairment charge of £Nil (2022: £Nil) 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 2023 £ 7,946 6,389 11,117 34,399 59,851 |
Group 2022 £ 4,596 2,218 12,720 7,142 26,676 |
Company 2023 £ 7,946 6,376 10,506 - 24,828 |
Company 2022 £ 4,578 2,218 12,720 - 19,516 |
|---|---|---|---|---|
Page 25
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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 2022 Resources deferred during the year Amounts released from previous periods |
Group 2023 £ 29,131 - 2,371 1,691 44,824 78,017 Group 2023 £ 22,909 28,700 (22,909) 28,700 |
Group 2022 £ 22,060 - 2,441 1,379 40,989 66,869 Group 2022 £ 21,068 22,909 (21,068) 22,909 |
Company 2023 £ 25,905 84,617 2,371 1,363 39,603 153,859 Company 2023 £ 22,909 28,700 (22,909) 28,700 |
Company 2022 £ 19,657 65,592 2,441 1,139 36,853 125,682 Company 2022 £ 21,068 22,909 (21,068) 22,909 |
|---|---|---|---|---|
Deferred income consists of amounts received before the year end relating to performances after the year end.
Page 26
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
17. Statement of funds
Statement of funds - current year
| Balance at 1 April 2022 £ Unrestricted funds Designated funds Future Refurbishments Fund 81,482 Fixed Asset Fund 47,389 128,871 General Funds 135,487 Total Unrestricted funds 264,358 Restricted funds North Norfolk District Council - Norfolk County Council - Momentum Grants - Jungle Book - Alan Boswell Group Charitable Trust - Theatre Refurbishment grants - - Total of funds 264,358 |
Income £ Expenditure £ - - - (19,862) - (19,862) 586,887 (516,819) 586,887 (536,681) 41,000 (41,000) 11,223 (11,223) 500 - 2,000 (2,000) 79,485 - 134,208 (54,223) 721,095 (590,904) |
Transfers in/out £ 10,752 103,132 113,884 (34,399) 79,485 - - - - (79,485) (79,485) - |
Balance at 31 March 2023 £ 92,234 130,659 |
|---|---|---|---|
| 222,893 | |||
| 171,156 | |||
| 394,049 | |||
| - - 500 - - |
|||
| 500 | |||
| 394,549 |
The Future Refurbishment Fund relates to money put aside for the redevelopment of the theatre building in Sheringham. The transfer from general reserves into the Future Refurbishment Fund relates to a further designation of funds for this purpose.
The designated Fixed Asset Fund represents funds spent on the refurbishment of the theatre. The funds carried forwards will cover future years' depreciation on the assets.
The transfer from the restricted Theatre Refurbishment Grants into the designated Fixed Asset Fund represents amounts spent during the year on fixed assets upon whose use there is no further restriction.
Page 27
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
17. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds Designated funds Future refurbishments fund Fixed Asset Fund General 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 £ 59,979 56,808 116,787 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) (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 (21,503) - - - - - - - - - |
Balance at 31 March 2022 £ 81,482 47,389 |
|---|---|---|---|---|---|
| 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 2023
18. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2023 £ Tangible fixed assets 145,931 Current assets 326,135 Creditors due within one year (78,017) Total 394,049 |
Restricted funds 2023 £ - 500 - 500 |
Total funds 2023 £ 145,931 326,635 (78,017) 394,549 |
|---|---|---|
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2022 £ 75,559 255,668 (66,869) 264,358 |
Total funds 2022 £ 75,559 255,668 (66,869) 264,358 |
|---|---|---|
Page 29
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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 Loss on the sale of fixed assets Increase in stocks (Increase)/decrease in debtors Increase in creditors Net cash provided by operating activities 20. Analysis of cash and cash equivalents Cash in hand 21. Analysis of changes in net debt At 1 April 2022 £ Cash at bank and in hand 227,468 227,468 |
Group 2023 £ 130,191 33,978 (375) 3,223 (566) (33,175) 11,148 144,424 Group 2023 £ 264,694 Cash flows £ 37,226 37,226 |
Group 2022 £ 12,045 28,022 (17) - (1,524) 15,757 2,706 56,989 Group 2022 £ 227,468 At 31 March 2023 £ 264,694 264,694 |
|---|---|---|
Page 30
SHERINGHAM LITTLE THEATRE SOCIETY (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
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 £3,170 (2022 - £2,510). Contributions totaling £761 (2022 - £627) were payable to the fund at the balance sheet date and are included in creditors.
23. Operating lease commitments
At 31 March 2023 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 2023 £ 1,112 371 1,483 Group 2023 £ 1 2 - 3 |
Group 2022 £ 1,112 1,483 2,595 Group 2022 £ 1 3 - 4 |
Company 2023 £ 1,112 371 1,483 Company 2023 £ 1 2 - 3 |
Company 2022 £ 1,112 1,483 |
|---|---|---|---|---|
| 2,595 | ||||
| Company 2022 £ 1 3 - |
||||
| 4 |
24. Related party transactions
Sheringham Hub Limited is a 100% subsidiary of the Charity. During the year, the Charity contracted its Sheringham Hub Limited to carry out theatre production works, totalling £97,280 (2022: £79,100). The Charity charged management fees to Sheringham Hub Limited totalling £30,000 (2022: £25,000). At year end, the Charity owed £84,617 (2022: £65,592) to Sheringham Hub Limited; this balance is included in creditors.
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 £2,890 during the year (2022: £2,870). A creditor balance of £Nil was outstanding at the year end (2022: £Nil).
Page 31
SHERINGHAM LITTLE THEATRE SOCIETY
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
25. Principal subsidiaries
The following was a subsidiary undertaking of the charity:
The financial results of the subsidiary for the year were:
26. 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 2023 £136,377 Total liabilities as at 31 March 2023 £8,775 Total equity as at 31 March 2023 £127,602 Turnover for the year ended 31 March 2023 £270,221 Expenditure for the year ended 31 March 2023 £254,156 Tax credit for the year ended 31 March 2023 £34,399 Profit for the year ended 31 March 2023 £50,464
Page 32