**Charity No. 1090452** ## **MELLOW DRAMATICS MUSIC THEATRE GROUP** ## **TRUSTEES REPORT AND THE UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023** **MELLOW DRAMATICS MUSIC THEATRE GROUP** ## **GENERAL INFORMATION FOR THE YEAR ENDED 31 JANUARY 2023** |President|Mrs S Pollard| |---|---| |Trustees|Mr T Bailey| ||Mr C Moss| ||Mrs L Robinson| ||Mr C Towland - Chairman| |Charity Office|9 Thorpe Close| ||Brizlincote Valley| ||Burton upon Trent| ||Staffordshire| ||DE15 9GS| |Bankers|HSBC plc| ||18 High Street| ||Burton on Trent| ||Staffordshire| ||DE14 1HU| |Independent Reviewer|Whale & Company| ||The Barn| ||Holly Berry House| ||Rough Park| ||Hamstall Ridware| ||Staffordshire| ||WS15 3SQ| 1 ## **MELLOW DRAMATICS MUSIC THEATRE GROUP TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JANUARY 2023** The Trustees present their report and the unaudited financial statements of the charity for the year ended 31 January 2023. The financial statements have been prepared in accordance with the accounting policies set out on page 8 and comply with the Group’s Trust Deed, The Charities Act 2011 and Accounting and Reporting by Charities: the 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 01 January 2019). ## **Constitution** The Mellow Dramatics Music Theatre Group is an association registered as a charity, (No 1090452), on 06 February 1997. It is governed by a constitution adopted at the same time but as modified in subsequent years, the latest change being in March 2019. ## **Other Names** The charity is also known as Mellow Dramatics Burton. ## **Objectives and Activities for the Public Benefit** The objects of the charity are to provide the advancement and improvement of general education in relation to all aspects of the art of musical drama and the development of public appreciation in such art. In undertaking these activities, the trustees have had regard to the guidance issued by the Charity Commission on public benefit. The Group further its charitable activities for the public benefit by, in a normal year, putting on three stage productions in a year and undertaking workshops, particularly aimed at the younger element of the public. ## **Statutory Matters** In 2017 a Charity Governance Code for smaller Charities was introduced, as well as an updated Code of Fundraising Practice. In 2018 new general data protection regulations were introduced. All documents have been considered by the Trustees with any changes to the existing manner of operation considered necessary being implemented on a continuously rolling basis. ## **Trustees** The following served as trustees during the year: Mr P Ingham (resigned 20.03.2022) Mrs L Robinson Mr C Towland Miss N Wagstaff (resigned 16.04.2023) Mr T Bailey (appointed 20.03.2022) Since the end of the financial year Mr C Moss has been appointed as a trustee with responsibility for finance. ## **Key Management Personnel** The Trustees consider the board of trustees as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All trustees give of their time freely and no trustee remuneration was paid in the year. ## **Our Volunteers** The Group could not function without the many volunteers who sit on the management committee or who, together with their families help out behind the scenes at rehearsals and the shows. Neither we nor they keep any record of the time spent making the Group work as it does. ## **Risk Management** The Trustees have assessed the major risks to which the charity is exposed, which they perceive to be: ➢ the failure to generate income from ticket sales, sufficient to cover costs and the overheads - ➢ the loss of a local venue in which to stage shows They are of the opinion they would be able to mitigate these risks if the need arose. 2 ## **MELLOW DRAMATICS MUSIC THEATRE GROUP TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JANUARY 2023** ## **Chairman’s Report** The Mellows financial year for 2022/2023 saw us finally returning to our full complement of three shows for the first time since the Covid outbreak. We started in May with The Full Monty, the first time the show had been performed in Burton on Trent. The cast and production team cleverly navigated the tricky themes of the show and gave us a superb performance that garnered outstanding reviews from a 100% sellout audience. Our September show was Kipps - The New Half a Sixpence Musical, which was another first for Burton, although Mellows had previously performed the original version of Half a Sixpence back in September 2004. Again, the show was really well received with many great reviews, but unfortunately, ticket sales were not as high as we would have liked, outlining just how important show selection is in the current economic climate. Still a show for the society to be proud of though. Then in January 2023 our show was the amazing Priscilla Queen of the Desert, yet another musical that we brought to Burton for the first time. Before starting this show, the committee quickly realised that to do the show justice we would need to use some of the surplus funds that we had built over the previous years. This allowed us to increase our show budget to the extent that we could hire all of the many colourful and extravagant costumes for the show. We were also able to purchase Priscilla (the bus), although 60% of the cost of this was immediately recovered by arranging a joint venture with another society. The show itself certainly turned out to be the extravaganza that we wanted it to be! Ticket sales were again a total 100% sellout, the cast received a standing ovation at the end of every performance and reviews from everyone were superb. Of course, on an ongoing basis we need to ensure that we balance our show budgets, but it's great to be able to occasionally dip into our reserves when we feel the time is right. Another event of note during the 2022/23 year was our 40th Anniversary Celebration Dinner held at Burton Rugby Club in October. The committee and trustees felt it was right to use some of our surplus funds to finance the evening, partly because members had continued to pay their membership fees even during the lengthy period when we were closed during Covid. It was a superb evening that was attended by members past and present and was enjoyed by everyone. Our 2022/2023 year has been one that has seen some significant cost increases, for our shows, our HQ and the general running of the society but the committee and trustees have already begun to negate the increases and will continue to do so in the coming years. ## **Financial Review** During the year the Charity made a deficit of £15,259 leaving us with closing reserves of £90,063. As discussed in the Chairman’s report above, the Trustees and committee members made a commitment this year to use some of the accumulated reserves (particularly the £23,454 surplus in the prior year) to fund additional costs such as the costumes for Priscilla the Queen of the Desert and the 40[th] anniversary celebrations. The Charity also purchased capital equipment in the year for use in rehearsals which is shown in tangible assets. Despite the deficit in the year the Charity has maintained a healthy cash position and continue to control costs to ensure the charity is a going concern. The balance sheet shows prepayments and accrued income at £19,960, which includes that part of the income due for Priscilla that is handled by the venue and was not banked until after the end of the financial year. The elements relating to expenses paid in advance for the next year was similar in both years. The group continue to hold their net worth in liquid accounts rather than charitable investments in order to provide greater flexibility when incurring costs for productions. Accruals and deferred income are up on the previous year simply due to the timing of payments for the January production compared with the previous financial year end. ## **Investment Policy** The charity has considered the funds available to it for investment and has identified a deposit fund specifically designed for charities as meeting its needs. 3 ## **MELLOW DRAMATICS MUSIC THEATRE GROUP TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JANUARY 2023** ## **Reserves Policy** The Trustees are of the opinion the level of funds in reserves is required in the event that the risks referred to in our risk management note come to fruition. ## **Trustees’ Responsibilities** The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year, which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements, the trustees are required to: - ➢ select suitable accounting policies and then apply them consistently - ➢ observe the methods and principles in the applicable Charities SORP - ➢ make judgements and estimates that are reasonable and prudent - ➢ state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements - ➢ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements. This report was approved by the trustees on 16 November 2023 and signed on their behalf by: Tom Bailey (Nov 17, 2023 16:41 GMT) ………………………………………… **Mr T Bailey – Secretary & Trustee** 4 ## **MELLOW DRAMATICS MUSIC THEATRE GROUP (1090452)** ## **REPORT TO THE TRUSTEES AND MEMBERS ON THE UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023** ## **Respective responsibilities of trustees and examiner** The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. It is our responsibility to: - ➢ examine the accounts under section 145 of the Charities Act - ➢ to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act - ➢ to state whether particular matters have come to our attention ## **Basis of Independent examiner’s statement** Our examination was carried out in accordance with General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below. ## **Independent examiner’s statement** In connection with our examination, no matter has come to our attention 1. Which gives us reasonable cause to believe that in, any material respect, the requirements - ➢ to keep accounting records in accordance with section 130 of the Charities Act - ➢ to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met. 2. To which, in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Whale & Company Whale & Company (Nov 18, 2023 22:50 GMT) ……………………………………………………… Whale & Company Chartered Accountants and Business Advisors The Barn Holly Berry House Rough Park Hamstall Ridware Staffordshire WS15 3SQ 17 November 2023 www.whaleandco.co.uk 5 ## **MELLOW DRAMATICS MUSIC THEATRE GROUP** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **FOR THE YEAR ENDED 31 JANUARY 2023** ||**Note**|**Unrestricted**|**Funds**|**Total**|**Funds**|| |---|---|---|---|---|---|---| |||**General**|**Property**|**31.01.23**|**31.01.22**|| |||**£**|**£**|**£**||**£**| |**Income**|**3**|||||| |Donations and Legacies||2,000|-|2,000||22,314| |Charitable Activities||43,662|-|43,662||15,424| |Other Activities||7,439|7,782|15,221||13,543| |Investments||631|-|631||7| |**Total Income**||53,732|7,782|61,514||51,288| |**Expenditure**|**4**|||||| |Cost of Raising Funds||278|-|278||90| |Charitable Activities||57,657|18,838|76,495||27,744| |**Total Expenditure**||57,935|18,838|76,773||27,834| |**Net Income/Expenditure**||**-4,203**|**-11,056**|**-15,259**||**23,454**| |Transfers||-11,056|11,056|0||0| |**Net Movement in Funds**||**-15,259**|**0**|**-15,259**||**23,454**| |_Reconciliation of Funds_||||||| |Total Funds Brought Forward||85,322|20,000|105,322||81,868| |**Total Funds Carried Forward**||**70,063**|**20,000**|**90,063**|**105,322**|| The statement of financial activities includes all gains and losses recognised in the financial year. All income and expenditure derive from continuing activities. 6 ## **MELLOW DRAMATICS MUSIC THEATRE GROUP** ## **BALANCE SHEET** ## **AT 31 JANUARY 2023** |**Note**
**Fixed Assets**
**6**
Tangible Assets
**Current Assets**
Prepayments and Accrued Income
Cash on Current Account
Cash on Deposit Account
**Total Current Assets**
**Creditors**
Accruals and Deferred Income
**Net Current Assets**
**Net Assets**
Financed by:
**Funds**
**7**
Unrestricted Income Funds General Reserve
Property Reserve
**Total Charity Funds**|**£**
**£**
**£**
**£**
2,465
0
19,960
18,824
17,493
24,308
56,330
65,889
93,783
109,021
6,185
3,699
87,598
105,322
90,063
105,322
70,063
85,322
20,000
20,000
90,063
105,322
**2022**
**2023**|**£**
**£**
**£**
**£**
2,465
0
19,960
18,824
17,493
24,308
56,330
65,889
93,783
109,021
6,185
3,699
87,598
105,322
90,063
105,322
70,063
85,322
20,000
20,000
90,063
105,322
**2022**
**2023**| |---|---|---| |||105,322| |||85,322
20,000| |||105,322| The notes on pages 8 to 11 form part of these accounts, which were approved by the trustees and authorised for issue on 16 November 2023. ## C. Towland C. Towland (Nov 18, 2023 11:12 GMT) ………………………………………………. ## **Mr C Towland – Chairman & Trustee** 7 **MELLOW DRAMATICS MUSIC THEATRE GROUP** ## **NOTES ON THE UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023** ## **1 ACCOUNTING POLICIES** ## **(a) Basis of Preparation of the Financial Statements and Assessment of Going Concern** The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The trust constitutes a public benefit entity as defined by FRS 102. The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. ## **(b) Funds** The charity maintains an unrestricted fund to be used in accordance with charitable objects at the discretion of the trustees. It also maintains a designated but unrestricted fund for the purpose of building and maintaining a HQ premises. ## **(c) Income Recognition** 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. Donations are recognised when the Trust has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity, and it is probable that those conditions will be fulfilled in the reporting period. Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash, or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. ## **(d) Donated Services and Facilities** Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the members is not recognised. Reference to the trustees' annual report should be made for more information about their contribution. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. ## **(e) Expenditure Recognition** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. ## **(f) Irrecoverable VAT** Irrecoverable VAT is charged against the expenditure heading for which it was incurred. ## **(g) Allocation of Support and Governance Costs** Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to the independent review and legal fees that may be incurred together with an apportionment of overhead and support costs. 8 ## **MELLOW DRAMATICS MUSIC THEATRE GROUP** ## **NOTES ON THE UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023** ## **(h) Tangible Fixed Assets and Depreciation** All assets costing more than £500 are capitalised and valued at historical cost, except where purchased with donations or grants. Depreciation is calculated so as to write off the cost of tangible fixed assets over the shorter of their estimated useful lives or the period of the lease: Property Improvements – over 5 years on a straight-line basis Equipment – over 3 years on a straight-line basis ## **(i) Debtors** Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **(j) Cash at Bank and in Hand** Cash at bank and cash 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. ## **(k) Creditors and Provisions** Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. ## **(l) Financial Instruments** The Society 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. ## **(m) Funds** The charity maintains an unrestricted fund consisting of a general fund, which is for use in accordance with the objectives of the company at the Trustees discretion and a property fund where funds have been set aside by the Trustees from general funds for a specific purpose. ## **2. COMMITMENTS** In January 2019 the group entered into a new 6-year lease on premises used by them with a total commitment remaining at 31 January 2023 of £26,630 (2022 - £40,130). 9 ## **MELLOW DRAMATICS MUSIC THEATRE GROUP** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JANUARY 2023** ## **3 INCOME** |**3 **|**INCOME**|||||| |---|---|---|---|---|---|---| |||**Unrestricted Funds**|||**Total Funds**|| |||**General**|**Property**||**31.01.23**|**31.01.22**| |||**£**|**£**||**£**|**£**| ||**Donations and Legacies**|||||| ||Grants and Donations|2,000||-|2,000|22,314| |||2,000||0|2,000|22,314| ||The Mellow Dramatics Music Theatre|Group benefits greatly from||the involvement and enthusiastic||| ||support of its many volunteers, details of which are given in our annual report. In accordance with UK|||||| ||GAAP the economic contribution of general volunteers is not recognised in these accounts.|||||| ||**Charitable Activities**|||||| ||Shows and Workshops|43,662||-|43,662|15,424| |||43,662||0|43,662|15,424| ||**Other Activities**|||||| ||Fund Raising|96||-|96|70| ||Hire of Facilities|-|7,782||7,782|7,263| ||Subscriptions|7,336||-|7,336|6,210| ||Sundry Income|7||-|7|0| |||7,439|7,782||15,221|13,543| ||**Investment Income**|||||| ||Interest bearing Bank Accounts|631||-|631|7| |||631||0|631|7| |**4 **|**EXPENDITURE**|||||| |||**Unrestricted Funds**|||**Total Funds**|| |||**General**|**Property**||**31.01.23**|**31.01.22**| |||**£**|**£**||**£**|**£**| ||**Cost of Raising Funds**|||||| ||Administration|-||-|0|0| ||Bank Charges|278||-|278|90| |||278||0|278|90| ||**Charitable Activities**|||||| ||Administration|1,117||-|1,117|1,458| ||Donations|-||-|0|20| ||Professional Charges|543||-|543|516| ||Promotional Expenses|384||-|384|217| ||Headquarters Running Expenses|-|18,838||18,838|16,898| ||Other Expenses|-||-|0|0| ||Shows and Workshops|55,613||-|55,613|8,635| |||57,657|18,838||76,495|27,744| 10 **MELLOW DRAMATICS MUSIC THEATRE GROUP** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JANUARY 2023** ## **5 STAFF COSTS AND NUMBERS** The company does not employ any staff, nor does it remunerate any trustees in their position as trustee. ## **6 TANGIBLE FIXED ASSETS** |**Cost**
Brought forward
Additions
Carried forward
**Depreciation**
Brought forward
Charge for the year
Carried forward
**Net Book Value**|**General**
**Property**
**£**
**£**
1,662
13,404
3,457
-
5,119
13,404
1,662
13,404
992
-
2,654
13,404
2,465
0
**Unrestricted Funds**|**31.01.23**
**31.01.22**
**£**
**£**
15,066
15,066
3,457
0
18,523
15,066
15,066
14,834
992
232
16,058
15,066
2,465
0
**Total Funds**| |---|---|---| Expenditure incurred in 2011 was written off over the life of the original lease but remains in use by the Group. Additions relate to equipment and are being written off over 3 years from the first full month of use. ## **7 ANALYSIS OF NET ASSETS BETWEEN FUNDS** ||**Unrestricted**|**Funds**|**Total**|**Funds**| |---|---|---|---|---| ||**General**|**Property**|**31.01.23**|**31.01.22**| ||**£**|**£**|**£**|**£**| |Tangible Fixed Assets|2,465|-|2,465|0| |Current Assets|73,359|20,424|93,783|109,021| |Current Liabilities|-5,761|-424|-6,185|-3,699| |**Net Assets**|70,063|20,000|90,063|105,322| 11