h•rlty Registration No. 1094768 Company Registration No. 04433978 (England and Walssl Watershed Workshops Ltd Annual Report And Financial Statements For The Year Ended 31 March 2021 *MJVQYZA* IW1212021 COMPANIES HOUSE A24 #239 WATERSHED WORKSHOPS LTD LEGAL AND ADMINISTRATIVE INFORMATION TYu$tee$ J R Dohety RAbram S &"bbs J Margetis Secretary S T¢ywue Charity number 1094768 Company nuTribgr 04433978 Re9i$t¢rnd offKe' The Wale￿hed 22-8rid9e si￿1 Slailhwzr(e H07 SJN Independenttxaminer Jessica La￿1) Triune Couri York Y032 9GZ Bankers The C04)perab've Bank Pk Central Commwual Branch PO Box 250 ske1rnersd￿e WW8 6wr WATERSHED WORKSHOPS LTD CONTENTS Page Tw5te8s' rewt . Independent exarninerfs report Slatement of financial *ivitie$ Balance sheet Notes to the financial stat8m8nts 6-15 WATERSHED WORKSHOPS LTD TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORTI FOR THE YEAR ENDED 31 MARCH 2021 The Trusiee$ whts are also Directors for the pUrP￿S of company l*v. a￿ ￿eaSe￿ to present their annual report together wilh the independenlly exarnined finanoal slatements or the chartty for the year ended 31 Marth 2021, which are a150 prepared lo rr￿1 the r•)uirements for a dire¢1￿. rewt and Finanoal statements for Ccxnpanies Act pU￿se$. The Mancial statements have been wepared in aco)rdance Vlith Ihe accountry sel out li ncle 1 10 the financial siatemenis and coryWy with the chartys memorandum aThY artides of assctiats"on. the Companies Ad 2006 and "Attountiry and Reporbng by Chanties". Statement of Recommended Practi applicable to chariiies weparing thtyr acwunts in accordan￿ the Finanial Reporbng Stsndard applicable in the UK artd Rewbk of Ireland IFRS 1021- (effective from 1 January 20191. Objectives and adivities The facilities at The Watershed are we* used and the of TnJstees. is mirKJful ts fegard the Charity Cornmission's guidan￿ on pubtr benefit when planning the programme of a¢iivib"es at the trusteo meetin9S. The hi￿ facil￿"e$ at The Watershed are firrrfy estsbh5hed with wular ix)okings helpiry to provide financial stability for the organisab"on. The Trustees have paKJ due regarfl lo ￿¥dance iSSL*d by Ihe Ch•ity c(mmissi￿1 in t*udin9 what.xtmt￿s the Charity should undertake. Structu￿. goveman¢e #nd mana9ement The legal and adrninistrative information page frKms of this reF#JL All the Directors of the cornwy are also TN$tees of the charity. and ihere are no. other Trusiees. The Trustees who served during the year are set below. In accordan￿ with the arbdes of a5sociab"on. one third ol the Trustees wll retire by rOlat￿ at the annual general meeiing. and bew dKJiLle, ofl them5efves for re-electvjn. The btsard is well established wtlh effiuent and fruitful wothng ￿lab"On$t￿P* The chanty Is organised so that the Trustees endeavour to meet quarterty 10 maftage its aff8irs_ All members of the 8oard (rf Twstees gve Ihw bme YO￿nI¥lly received no benefits frorn the charily dur¥w this financial year. The T￿SteeS continue to conduct a regular review of the rnajtsr risk5 to whi¢h the chatrty is exposed and 5y5tetns a￿ e5tabli5hed to mitKJate these iisks. Regular of heatth and safety procedures a￿ ¢8rried out with a $tsndin9 Itern on the board rneelifi9 agenda to discuss this area. All Èquipment has a maintenance ¢onlra¢t altached to it w￿th annual Inspe￿I0ns. Ail ewriol. equipment Is PAT tesl aThnually. CUrr￿t D8S checks are maintained with regards to wothing wlh ththlten and Vulnerab￿ adulis. A¢hi¢v*ments and perf¢)rman¢e During this year ihe trustees and core CL*npanies ba5eO al The Watershed have been ¢Jealing Mlh the Covi&19 pandemic and ils effects on the wnning of the organisation. The bu1￿￿￿ was closed to the pul)lic with immediale effect followng government guidelinÈs and dunThJ this finanrjal year hès not been physir211y re-openeij. This siiualion has required us to adapt Ihe ways w8 work fft response to a rapidly shifvng situation and the chaTrJiTrJ needs of Ihose we wsh to enga￿. The trustees and core cornpanies via Zoom on a regular b￿5 to inF4ement health and safety protocc4s and lo rnake ￿an5 lor the fulure. We successfully appr￿d lor Cowd-19 govemment granES enailed Ihe otganisation to weather lh8 . uncertainlie5 and economic challenges duriThJ this lime. Where appropriate th8 CLYe wrnpanr85 shffted Ihwr adiwty online using dHJital plalforrn5 to present their work. This en8￿ed thern to keep in conwt and cAMne¢￿ with their core participants and audiences and offef a vwie(I prograrn￿￿ of actiTrriliEs at a very diffiujlt time. WATERSHED WORKSHOPS LTD TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 The trustees met on a very regutar basis wa Zoom and took the opportunty to rewsit and ￿fresh the values. vi&on and ffliswon of the organisaiion. This has ￿SUmed in wothiry with an outs1(Je wnsullanl to develop plans to re4esi9n the layout of the buiklir#J in order lo make better use of the space and to meet Covid.19 safety guidelines.. to redefi'ne the roles within Ihe organisation and to seek to appoint a worker. and to present an expanded prograrnme of actbvities and events. The developmenl of thes8 plans we wll s88k lo be res0vr￿d Ihrough fvnding applutions to Arts Cour￿11, EngL3nd and the Key Fund. Shabatvj Inclu5Ne Learning. one ol the three f￿dIng CO￿ based at The Watershed 9ave notte lo leave in June 2021 - Ihey will be mo¥in9 to thtyi Lwm refurtJishe4 venue ￿ed￿ted to working wth f8mil*s who have a ¢hikl with è disability. The truslees wish them every su¢¢ess for the ful￿e. The rernaining core companies - Impossible Arts and Satellite Asts - remain r£*mmitted to workirva at The Watershed and are oking loNsard io the exoting.￿￿5 and d¢velopments ¥hedukd for 2021-22. Financial rovlew The SUr￿￿S for the year ￿oUnted to £3.261 12020- defMJt £4.2751 induding a surplus on unrestricted furyls of £14,921 12020 - deficit £1.8851. At Ihe balance sheel dale total IvrKts stood at £357.87912020- £354.6181 of which £298,912 12020 - £310,572) were re51r¢cted funds. Free reserves (not deS￿nated or held as part of rixed assets) were £53.040 12020- £38,086). The Twu5tee5 appreaate that it would be ￿e&rab￿ 10 in¢rEase the level of free reserves and are lookw into ways of achie￿￿ this. However. the Trustees a￿ confkyent that the security of the Charity (an be main￿ned through the gerwatKm of additional funds Irom their existing business relatronships. The Future for Watershed Wolkshops The Trustees are aware of keeping up to date vAth polioe5 wcedure5 from the Charity Commi%sion to ensure Ihe continL￿d good practice ol the work of the charty. The Trustees are keen to coni.nue strateg1c planning aroun¢J key themes ol succession b.uilding. sustsinability and 9ood pra¢ti¢e Yalh reg*d lo the enwronment and heallh and safety tequirements. The Trustees are confident and coniinue to work effectively to ensure the lon9 term succes5 of the organisaiion. Strueture, governance and management The Trusiees, who art also the directors lorlhe purpose of company law, who seNad d￿9 the year and up to the date of 51gnalure of the financial st8￿men1S we￿_ J R Doherty R Abram S Gibbs J Margett5 Small Company R￿85 This report has been prepared in accC￿darfÈ %wth Ihe speoal provisions lor 5rn311"t(mpani8s under Part 15 of the Companie5 Act 2006. Th8 Trustees. was apwoved by the Board ofTrustees. J R Doherty Trustee Daled.. 1511212021 WATERSHED WORKSHOPS LTD INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF WATERSHED WORKSHOPS LTD I report to the Trustees on my exarrmnabon of the fThrnxal slatements of Walecshed Workshops Ltd for the year ended 31 March 2021. Thi$ report is made solety to the Charitys Trustee5, as a body. in ac￿rdanCe wilh Section 145 of th8 Charities Acl 2011. My independent examination work has been undertaken so that I might stale to the Charity's Trustees those matters l am required to slate lo them In an Independent Exarnlnerfs Report and lot no other pur￿se. To the fullest extent ￿ltied by law. I do not accept or assume responsibility to anyone other than the Charity and the Chanty's Trustee5 as a body. for my independent examination work. for this report. or for the opin￿n5 1 have lormed. Re$ponstbilities and basis ol report A5 the Trustee5 of the charty land also its direclor5 for the purposes of cornpany lawl you ar8 responsible foi the preparation ol the financial staternent5 in accordance wilh the requirernenls of the Companies Act. 2006 (the 2006Act}. Hawing satisfied myself that the finanoal statements of the chanty are not wuired to be audited under Part" 16 01 the 2006Act and a￿ elwil)le frx independent examtnabon. I report in ￿SpeCt of my examination of the charity's finanoal slalements carried out vnder seebon 145" of the charit￿s Act 2011 Ilhe 2011 A¢tl. In carrying ou¢ my examination I have followed all the ap￿1¢abl& directM)ns 9iven by Ihe Charity Cornmiss#)n under sethim 145151(bl of the 2011 Ac Independent examinerfs statemenl I have compkled my examination. I confirm that no matters have cA)me to my attentirm in connection the examinalion giving me cause to believe that ¢n any malerial respect.. accounlng fecoids were not kepl in respect of the ¢haiity as requi￿￿ by seclKJn 386 of ihe 2006 Act., or the financial statements do not accord wilh Ihose records: or the financial 51atemenls do not wrth the accounting reqUire￿￿nIS of section 396 of the 2006 Act other than any requirefflent that Ihe a¢￿unt$ gwe a Iwe and fair vw whth is ntst a matter considered as part of an independent examinaiiorb". or the financial statements have not been prepa￿d in accordance with Ihe method5 and prinuples of the Statement of Recomrnended Practice for accounting and reporting by chaiities applicable to charities preparing their accounts in accor)d 10 1.451 45.347 1.200 33.872 46.798 35,072 Creditors: amounts falling due withSn on¢ y￿r 11 11.838} 15.066) Net current assets 30,006 Totsl os$ets less current liabli ities 357,879 354.618 kncome fvnd5 ReStr￿ted funds Un￿SinC(ed funds 13 298.912 58.967. 310.572 44,046 . 357.879 354.618 The charitsble company is enlilled to Ihe exemption from Ihe audrt reqLIre￿￿Trl contained in section 477 of the Compani8sAct 21)06, lor th8 y8ar énd8d 31 March 2021. The Trustees aCknth￿edge their responsibih"ts"es for ensuring Ihat Ihe tharitaNe wmpany keeps accounliThJ records whKh comply wth Section 386 of the Act and for preparing finanual statements whsch give a true and fair view of the state of affairs of the charitable company as at the end of the financial year and of ils incomir resources and applKation of resource5. induding its irKorne and expenditure. for the financial year in accordarKe with the requirernenls of 5eclions 394 and 395 and which otherwise cornply with the requirernents of Ihe CompaniesA¢t 2006 relabng to finan¢o1 $￿teMents, so far a$ #p￿1¢able to the Chanlable company. The members have not required the Charrtab￿ company to oblain an a(￿Jrt of its finanual state[r￿t$ for the year in question in accordance with section 476. These finawal stalemenls have been prepwed in a¢r0rdan￿ wih the proviyons applipbie to companies subje¢t'to the small compan￿$ regime. The Mtes on pages 6 to 15 forrn part ofthe aC￿jnts. 1511212021 The financial stslemenls were approved by the TnJsteÈs on .. - .... -........ .--. J.R Doherty Oirector Company Registraiion No. 04433978 WATERSHED WORKSHOPS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Accounting pollcles Thè principal ¥counting poSu&s adopted. judgements and key source5 of eshmal￿n un¢krt8inty in the eparation of the financial statements are as fo11tr*4S'. Charity informaknon Waier5hed Wcwkshops Lttl is a private company l¥Med by guaran￿ irwporated in Eng18nd and Wales and a chanty registe￿￿ wilh the Charty Ctynmissity) of England and wa￿ L¥b 26 M)vember 21X)2. The registered office 1$ The Watershed. 22 8ridge StreeL Slaithwaiie. HD7 SJN. Exh ￿rnber of the cornpany has U￿lertaken to tonlritxrte such amLXMrt 3s may be rwuir8d not exceeding £1 to the assets ol the chantabt• company in the evenl of its bes.ng wound up while he or she 1$ member. orwithin one year after he or she cease5 10 be a member. 1.1 Accounting convention The financial statements have been prepared in accordance the charitys Memorandum and Artides of A55watson the Cotnpanies Acl 2006 and 'Accounting aThJ Repotting by Ch>rilies_' Slalement of R8cornrnended Prathce aWicabl8 to thariDes preparing their account5 in accOr£lar￿ with the Financial RetKwb"ng *an4Jard aptdjcalyle in the UK and Rewbhc of Irelwd {FRS 1021" leffecti¥e fmm 1 January 20191_ charity 1$ a Putlic 8enefil Entity as defined by FRS 102. The finanoal statements are prepared in ste￿￿9. whth is the fU￿t￿nal GU￿enCY ofthe charity. Monetary amount5 In these f nancAal ststements are roun¢kd to the newesl £1. The i¥wncial statement5 have been prepa￿d und8r Ihe historical cosl r￿D¥ention. 1.2 Going concem The Trustees have at the line of appro￿ng the finanlial staternents a reasonable expedalpon that the thanty has adequate resources io conlinue in operati¢knal existen￿ for the ￿￿e$eeable futu￿. Wh51$t the lobal economy has been signifi¢anUy impacted by Ihe COWtk19 *rus. the ¢harity still has ￿Se￿e$ sufficient to nleet its ImTh￿l3tQ requirements. Thus the Trustees ¢ontinue to &lopl the 90¥￿ ¢oncern basis of acwunting in preparing the financial slalements. 1.3 ¢harltable funds Urtrestricte(I funds are availatAe for use at the disu9t￿ of Ihe Truslees in furtheran(£ of their charitab 0￿.ectiveS. Restricted fuThYs are subject to specific cr￿jit￿)n$ by donors as to how they may be used. The purposes and uses of the rèstncted lund$ are set out in the notes to finart481 slatements. 1.4 Income Income represent5 al resources which beco￿ available lo ihe tharity but exdudes gains ON investTT*nls. Grants and donations a￿ recognisable when Ihe Cbarity becomes entthd to receive the fvnds, when rt is probable that Ihe fund$ will be re￿1Ve0 and Ihat Ihey Can be measured with suffitsenr *¢uracy. WATERSHED WORKSHOPS LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 MARCH 2021 A¢¢ounting policies (Continued) Cash donations are recognised on receipl. OLher donat￿nS are recogni58d once th8 chaiily has been . nobfied of the donab"on. unless pwforrnance C￿￿ltiOnS require deferral 01 th8 amounL Income ta recoverable In ￿latIon to donaticx)s ieceiv*J uyvjw &ft Awj is recognised at the time of the dotiatic￿. Donated prtsfessi¢yo1 se¢vKes and faul1t￿$ are ￿(￿nised as inc(xne whern the Charify has contrd over the item, any condrtions associated with the ¢Jonate(l item have met, Ihe ￿elpt of e￿ThoM￿ benefit from use ol tre item Is probatAe and the tenefft can t* measured ￿liat￿Y. On rewpt. donated professional ser¥￿e$ and dwted farAlities a￿ rec(4ntsed on the ba%s of the valve of the gift to the charity which is the amounl Ihe charity would have been willirvj lo pay to obtain services or facAlilies of eqUNa￿￿t economic benefit on the open market.. a CAyresponding amount is ¥eccgn15ed as expenditure In ¢he ol receipl. Legacies are rec￿nIseal statements. when there is a legally ellforceable nght to set off Ihe ￿COgnISed amovnls and there is an intention to setbe on a net bags or to rt￿1$e Ihe asset and se￿e the b"ability smutsneousJy_ Basic financial assets Basi¢ financial assets. whth debtors arKF cash and bank b￿n￿s. are inth811y measured at transadion pri￿ indu¢Jing IransactK)n wsts and are subsequendy camed at am¢ytised rA)sl using the effective interest n*thod the aNangemenl constitutes a finanang transaction, where the transaction is measured at the present yakje of the luture receipts dtscounled at a rnathet rate of inlere5L F￿anCIal as5els dassified as receivable ￿thIn one year are not amortised. Impairment of financlal assets Financi31 assets, other than those hehl at fair value through irmme and expendilure, are a55e55ed lor in¢Jicalors of irnpairment at each rePo￿.ng date. Financial assets a￿ impa¥ed where there is objective evidence ihat, as a resutt of one or mote events Ihal ocoJrie£S afteT the iniiial ieco9nibOn of the financial asset. the estirnaied futuo cash have been affected. If an asset is impai￿. the impaimient h)ss is the difference belween the carrying amount and the ￿sent yalue of the eslimaled cash flows discouoted at Ihe asset's original effethve inieresl rate. The impaim)ent loss is re¢cgnis•Y in net incomellexpenditurel for Ihe yew. If there is a decrease in the impairrr*nt k)s5 arisiro fvom an event tKcurring.after the impaimient was recognised, the irnpairrnent is reversed. The reversal is 5LKh that the current cwryiry afflount doe5 not exceed what the carrying amount WOU￿ have been, ha(1 Ihe impairmert not p￿vIoUslY been ￿COgnIsed. The impairFnenl teversal is ie¢ogniseLI tn nei in¢ompJlexpenditurel foi the year. . Dereco9nition oifinancial assvts Financial 355et5 are defe¢ognised onty when Contractu￿ nght$ to the cath lTr)ws fvom th2 asset expire or are senled, or when the charity transfers the finan(xeJ asset and subslantially all the risks and rewards ol ownership to another entity. or if somè significant risks and rewards of ownership are retèined tAJt contr of the asset has trartsferred to ￿￿ther pwty lh* is able to seN the asset in its entirety to an unrelaled third party. WATERSHED WORKSHOPS LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Accounting policie5 Iconlinuqdl Basic financial li•biliti¢S Basic financiat liab"lities. indudry ¢xgJitors and bank kjans are inilialy recogr45ed ai transaction price nless the arrangÈmÈnl consbtutes a financing transaction. where Ihe debt instrument Is measured al the present value of the fu￿re payrnents dIsc￿nIed at a mark81 rate of interest. Fina￿#1 liabilities cL75sified as payable wrthin one year are not amortised. Debt in5trurnents are subsequendy carried al arnorfi5ed c05t. Ihe elle¢bve interest rate rneltK￿. Trade ¢￿dito￿ are ot41gabon5 to pay for gl￿j$ or seThfiW that have been a(x)uired in the iydinary course of opefab.ons frorn suwiers. Amounts payable are ¢lasstherl as ￿rren1 liabA￿eS rf paymeni is due ￿1h￿l one year or ￿ss. If nol, they are presenteé as non