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2024-03-31-accounts

Charity Registration No. 1094768

Company Registration No. 04433978 (England and Wales)

Watershed Workshops Ltd

Annual Report And Financial Statements

For The Year Ended 31 March 2024

WATERSHED WORKSHOPS LTD

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Ms S Gibbs Ms J R Docherty (Resigned 25 April 2023) Ms J Margetts (Resigned 17 January 2024) Mrs S Tongue (Resigned 24 April 2024) Ms R Winwood (Appointed 16 May 2023) Ms S Scott (Appointed 16 May 2023) Mr J Button (Appointed 17 July 2023) K Pollock (Appointed 27 July 2023) Secretary Mrs S Burton-Smith Charity number 1094768 Company number 04433978 Registered office The Watershed 22 Bridge Street Slaithwaite HD7 5JN Independent examiner TaxAssist Accountants 9 Knowl Road Mirfield WF14 8DQ Bankers The Co-operative Bank plc Central Commercial Branch PO Box 250 Skelmersdale WN8 6WT

WATERSHED WORKSHOPS LTD

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 16

WATERSHED WORKSHOPS LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2024

The Trustees who are also Directors for the purposes of company law, are pleased to present their annual report together with the independently examined financial statements of the charity for the year ended 31 March 2023, which are also prepared to meet the requirements for a directors' report and Financial Statements for Companies Act purposes.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's memorandum and articles of association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective from 1 January 2019).

Objectives and Activities

This year, the Trustees made several advancements to improve The Watershed’s offerings and infrastructure, with key developments including:

At the end of the year, our Acting Chair and long-serving trustee, Jean Margetts, resigned after years of dedicated support. Jean’s contributions have been instrumental in championing the work and vision of The Watershed.

We continued our partnership with Sky Burton-Smith as a freelance organisational administrator, alongside the invaluable support of resident companies Satellite Arts and Impossible Arts, who have maintained and enhanced The Watershed’s infrastructure. Noah Burton joined the management team this year to lead a major music project aimed at:

Key Highlights of 2023-2024

WATERSHED WORKSHOPS LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (Cont’d) FOR THE YEAR ENDED 31 MARCH 2024

Additional Hires and Community Engagement

Throughout the year, The Watershed hosted a variety of activities and events, including:

Financial Review

There was an overall deficit for the year of £13,646 (2023 - £11,090) which included a deficit on unrestricted funds of £1,986 (2023: £570 surplus). At the balance sheet date total funds stood at £335,511 (2023: £348,857) of which £263,932 (2023: £275,592) were restricted funds. Free reserves (not designated or held as part of fixed assets) were £50,321 (2023: £48,728)

The Future for Watershed Workshops

The Trustees are committed to ensuring The Watershed’s long-term success by staying informed about updated policies and procedures from the Charity Commission. Key focus areas include:

The Trustees remain optimistic and determined to build on this year’s achievements.

Structure, governance and management

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Ms S Gibbs Ms J R Doherty (Resigned 25 April 2023) Ms J Margetts (Resigned 17 January 2024) Mrs S Tongue (Resigned 24 April 2024) Ms R Winwood (Appointed 16 May 2023) Ms S Scott (Appointed 16 May 2023) Mr J Button (Appointed 17 July 2023) K Pollock (Appointed 27 July 2023)

WATERSHED WORKSHOPS LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (Cont’d) FOR THE YEAR ENDED 31 MARCH 2024

Small Company Rules

This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

The Trustees' report was approved by the Board of Trustees.

Trustee 18/12/2024 Dated: ………………………

WATERSHED WORKSHOPS LTD

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF WATERSHED WORKSHOPS LTD

I report to the Trustees on my examination of the financial statements of Watershed Workshops Ltd for the year ended 31 March 2024.

This report is made solely to the Charity's Trustees, as a body, in accordance with Section 145 of the Charities Act 2011. My independent examination 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 Charity and the Charity's Trustees as a body, for my independent examination work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the Trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity 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 charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

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 that in any material respect:

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 financial statements to be reached.

TaxAssist Accountants

9 Knowl Road Mirfield WF14 8DQ

Dated: …………………… 18/12/2024

WATERSHED WORKSHOPS LTD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted
funds
Restricted
funds
Income from:
2024
Notes
£
2024
£
Donations and legacies
363,940
-
Charitable activities
4
16,853
-
Investment income
32
-
Total income
80,825
-
Expenditure on:
Charitable activities
5
82,811
11,660
Net income/(expenditure) and movement in funds
(1,986)
(11,660)
Fund balances at 1 April 2023
73,265
275,592
Fund balances at 31 March 2024
15
71,279
263,932		 Total
Total
2024
£
2023
£
63,940
23,592
16,853
12,325
32
58
80,825
35,975
94,471
47,065
(13,646)
(11,090)
348,857
359,947
335,211
348,857

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

A full comparative Statement of Financial Activities is shown in note 16 of these Financial Statements.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

The notes on pages 6 - 15 form part of these financial statements.

WATERSHED WORKSHOPS LTD

BALANCE SHEET

AS AT 31 MARCH 2024

Notes
Fixed assets
Tangible assets
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within
one year
11
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
13
Unrestricted funds		 2024
£
£
284,890
1,895
51,296
53,191
(2,870)
50,321
335,211
263,932
71,279
335,211		 2023
£
£
300,129
483
62,978
63,461
(14,733)
48,728
348,857
275,592
73,265
348,857		 2023
£
£
300,129
483
62,978
63,461
(14,733)
48,728
348,857
275,592
73,265
348,857
348,857
275,592
73,265
348,857

The charitable company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024.

The Trustees acknowledge their responsibilities for ensuring that the charitable company keeps accounting records which comply with section 386 of the Act and for preparing financial statements which 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 its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

The members have not required the charitable company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The notes on pages 6 to 15 form part of the accounts.

18/12/2024 The financial statements were approved by the Trustees on ………………………..

Director

Company Registration No. 04433978

WATERSHED WORKSHOPS LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Charity information

Watershed Workshops Ltd is a private company limited by guarantee incorporated in England and Wales and a charity registered with the Charity Commission of England and Wales on 26 November 2002. The registered office is The Watershed, 22 Bridge Street, Slaithwaite, HD7 5JN.

Each member of the company has undertaken to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective from 1 January 2019).

The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income represents all resources which become available to the charity but excludes gains on investments. Grants and donations are recognisable when the charity becomes entitled to receive the funds, when it is probable that the funds will be received and that they can be measured with sufficient accuracy.

WATERSHED WORKSHOPS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

Donated professional services and 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 use of the item is probable and the economic benefit can be measured reliably.

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 recognised as expenditure in the period of receipt.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Investment income is recognised in the SoFA on an accruals basis and comprises of interest receivable during the accounting period.

1.5 Expenditure

Expenditure is recognised in the period in which it is incurred and includes attributable VAT which cannot be recovered.

Charitable expenditure comprises those costs incurred by the charity in the deliverance of its activities and services for its beneficiaries. It includes both costs that can be directly allocated to such activities and those costs of an indirect nature necessary to support them.

Support costs include those costs incurred in supporting the work of the charity.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land Not depreciated Freehold property 2.5% straight line Improvements to freehold property 2.5% straight line Equipment 25% straight line

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

WATERSHED WORKSHOPS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

WATERSHED WORKSHOPS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Taxation

Watershed Workshops Ltd is a registered charity and as such is a charity within the meaning of schedule 6 of the Finance Act 2010. Accordingly, the Charity is potentially entitled to tax exemption under part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 in respect of income and gains arising.

1.11 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight-line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

After review the Trustees consider that there are no critical estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the financial statements.

WATERSHED WORKSHOPS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Donations and gifts 11,164 558
Revenue grants 52,776 23,034
63,940 23,592

All donations in the prior year were unrestricted.

4 Charitable activities

Hire of Workshops
Rental income		 2024
£
10,878
5,975
16,853		 2023
£
9,775
2,550
12,325

Income from Charitable activities in both years is unrestricted.

WATERSHED WORKSHOPS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

5 Expenditure on charitable activities

Depreciation
Light, heat and water
Insurance
Telephone
Repairs and renewals
Project costs
Share of support costs (see note 6)
Share of governance costs (see note 6)
Analysis by fund
Unrestricted funds
Restricted funds
Support costs
Support
costs
Governance
costs
£
£
Operational management
4,188
-
Financial management and bookkeeping
7,300
-
Independent examination and accountancy
-
1,674
11,488
1,674		 2024
£
2023
£
15,239
11,693
6,923
5,953
2,075
1,451
2,649
4,610
15,431
4,821
38,992
9,969
81,309
38,497
11,488
6,168
1,674
2,400
94,471
47,065
82,811
35,405
11,660
11,660
94,471
47,065
2024
2023
£
£
4,188
2,149
7,300
4,019
1,674
2,400
8,568
8,568

6 Support costs

Governance costs include payments to the Independent Examiners of £1,674 (2023: £2,400) for independent examination and accountancy fees.

7 Trustees

None of the Trustees (or any persons connected with them) received any remuneration, benefits or out of pocket expenses from the charity during the current or preceding year.

WATERSHED WORKSHOPS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

8 Employees

There were no employees during the current or prior year.

9
Tangible fixed assets
Freehold land
£
Cost
At 1 April 2023
40,000
Additions
At 31 March 2024
40,000
Depreciation and impairment
At 1 April 2023
-
Depreciation charged in the year
-
At 31 March 2024
-
Carrying amount
At 31 March 2024
40,000
At 31 March 2023
40,000
10
Debtors
Debtors
Prepayments and accrued income
11
Creditors: amounts falling due within one year
Accruals and deferred income
Loan		 Freehold
property
Improvements
to freehold
property
Equipment
£
£
£
41,941
426,314
37,161
-
-
-
41,941
426,314
37,161
22,026
196,696
26,565
1,049
10,658
3,532
23,075
207,354
30,097
18,866
218,960
7,064
19,915
229,618
10,596
2024
1,094
801
1,895
2024
2,870
-
2,870		 Total
£
545,416
-
545,416
245,287
15,239
260,526
284,890
300,129
2023
-
483
483
2023
3,933
10,800
14,733

WATERSHED WORKSHOPS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

12 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2024
£
816
408
1,224		 2023
£
816
408
1,224

13 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds
Current year Balance at 1 Incoming Resources Balance at 31
April 2023 resources expended March 2024
£ £ £ £
Building/Building Improvements:
Kirklees Metropolitan Council 35,846 - (2,134)
33,712
Yorkshire Arts 70,412 - (2,248)
68,164
Yorkshire Forward 47,450 - (1,674)
45,776
SITA Environmental Trust 74,543 - (3,454)
71,089
Chase Charity 5,250 - (250)
5,000
Lloyds TSB 1,828 - (88)
1,740
Biffaward 28,891 - (1,241)
27,650
Other Building Improvements 1,225 - (60)
1,165
Arts Council 10,147 - (511)
9,636
275,592 - (11,660)
263,932

Purpose of restricted funds:

All of the building/building improvements and the funds from Yorkshire Forward, relate to grants and similar income received to undertake the purchase, refurbishment and development of Watershed Workshops at 22 Bridge Street, Slaithwaite, Huddersfield HD7 5JN.

The Kirklees Metropolitan Council grant from the Neighbourhood Learning Capital Fund was to fund the purchase of capital items to improve and enhance the learning environment for people with additional learning needs/disabilities.

The Biffaward relates to phase 2 of the refurbishment of Watershed Workshops at 22 Bridge Street, Slaithwaite, Huddersfield HD7 5JN.

WATERSHED WORKSHOPS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

13 Restricted funds

Restricted funds (Continued)
Movement in funds
Prior year Balance at 1 Incoming Resources Balance at 31
April 2022 resources expended March 2023
£ £ £ £
Building/Building Improvements:
Kirklees Metropolitan Council 37,980 - (2,134) 35,846
Yorkshire Arts 72,660 - (2,248) 70,412
Yorkshire Forward 49,124 - (1,674) 47,450
SITA Environmental Trust 77,997 - (3,454) 74,543
Chase Charity 5,500 - (250)
5,250
Lloyds TSB 1,916 - (88) 1,828
Biffaward 30,132 - (1,241) 28,891
Other 1,285 - (60) 1,225
Arts Council 10,658 - (511)
10,147
287,252 - (11,660)
275,592

14 Related party transactions

There were no disclosable related party transactions during the year (2023 - no discloseable transactions).

15 Analysis of net assets between funds

Unrestricted
funds
2024
£
Restricted
funds
2024
£
Fund balances are
represented by:
Tangible assets
20,958
263,932
Current assets/(liabilities)
50,321
-
71,279
263,932		 Total Unrestricted
funds
2024
2023
£
£
Restricted
funds
2023
£
Total
2023
£
284,890
24,537
275,592
300,129
50,321
48,728
-
48,728
335,211
73,265
275,592
348,857

WATERSHED WORKSHOPS LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

16 Comparative Statement of Financial Activities

Comparative Statement of Financial Activities
Unrestricted Restricted Total
funds funds 2023
£ £ £
Income from:
Donations and legacies 23,592 - 23,592
Charitable activities 12,325 - 12,325
Investment income 58 - 58
Total income 35,975 - 35,975
Expenditure on:
Charitable activities 35,405 11,660 47,065
Net expenditure and net movement in funds 570 (11,660) (11,090)
Fund balances at 1 April 2022 72,695 287,252 359,947
Fund balances at 31 March 2023 73,265 275,592 348,857