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2022-09-30-accounts

Charity registration number 101599 (England and Wales) Company registration number 04573958

BALLET BLACK LIMITED

ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

BALLET BLACK LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees A J Efunshile CBE - Chair
A Banjoko OBE
H A Hall
C Hampson
P K Hamzahee FRSA
A Hochhauser QC
C Pancho MBE - Founder/CEO
A S Prag
T Vianana (Appointed 17 November 2021)
Secretary J Webster
Charity number 1101599
Company number 04573958
Principal address Feathers Association
12 Rossmore Road
London
NW1 6NX
Registered office Austin House
43 Poole Road
Bournemouth
Dorset
England
BH4 9DN
Auditors Saffery Champness LLP
St Catherine’s Court
Berkeley Place
Clifton
Bristol
BS8 1BQ

BALLET BLACK LIMITED

CONTENTS

Page
Trustees' report 1 - 6
Independent auditor’s report 7 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 24

BALLET BLACK LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their annual report and financial statements for the period ended 30 September 2022 (an extended 13 month period). It was agreed in April 2022 to move the end of Ballet Black’s financial year to 30 September 2022, to make the financial quarters align with Arts Council England’s reporting requirements meaning the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.

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 governing document, 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 1 January 2019). The disclosures included on the preceding page titled “Legal and administrative information” form part of this report.

Objectives and activities

Ballet Black exists to promote, improve and advance the education of the public in the art of classical ballet by the promotion of a ballet company and ballet school, particularly but not exclusively by encouraging those from the ethnic minorities to participate in and appreciate the art of ballet.

The Company highlights the talents of Black and Asian dancers in the field of classical ballet through performance, teaching and educational programmes.

The trustees have paid due regard to guidance on public benefit issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The Ballet Company

The Company celebrated its 20th Anniversary in Oct 2021 and marked the occasion with two new works Say It Loud by Cassa Pancho and Black Sun by Gregory Maqoma, premiering at The Barbican in March 2022.

Ballet Black returned to touring in autumn 2021 and spring 2022, visiting The Lowry, Watford Palace Theatre, York Theatre Royal, The Linbury Theatre, Derby Theatre, Festival Theatre Edinburgh, Theatre Royal Stratford East, Oxford Playhouse, Newbury Corn Exchange, Cambridge Arts Theatre and Birmingham Rep.

The Company won the Critics’ Circle National Dance Award for Best Mid-Scale Company in 2022 and Mthuthuzeli November and Cira Robinson were shortlisted for Best Choreography for The Waiting Game and Best Female Dancer respectively. Then Or Now was shortlisted for the South Bank Sky Arts Awards for Best Dance Production.

Ballet Black has also been nominated for three Black Theatre Awards: Best Soloist in a Dance Production for Cira Robinson, Isabela Coracy and Mthuthuzeli November, Best Dance Production for Ballet Black 20, and Best Use of Innovation and Technology for EIGHTFOLD.

In September 2022 two new dancers joined the Company for the 2022/23 season.

Digital Activity

Funding from Bloomberg Philanthropies has enabled the Company to accelerate our work on the 'BBonFilm' digital programme. As part of our digital outreach activities, we held six film screenings during the period, including an event hosted by the Her Excellency Harriet Cross, British High Commissioner to Trinidad & Tobago.

Our digital revenues grew in the period due to the successful licensing of Then Or Now and The Waiting Game to the BBC. Both films are due to be screened on BBC Four in October 2022 and will be available on iPlayer until October 2025. EIGHTFOLD was also made available on television and online streaming by licensing the film to Channel 4 from October 2021 to 2022.

BALLET BLACK LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

The Company won several awards for its films during the period and was part of the Official selections for a number of international film festivals.

Awards won by EIGHTFOLD in 2022

EIGHTFOLD Official Selections for

EIGHTFOLD is also currently under consideration for a further 15 film festivals around the world.

Awards won by Like Water in 2021/22

Like Water Official Selections for

Like Water is also currently under consideration for a further 6 film festivals around the world.

BALLET BLACK LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2022

Education & Outreach

In September 2021 the Ballet Black Junior School (BBJS) expanded successfully to a second location in West London and we now offer 22 weekly subsidised ballet classes in Shepard’s Bush and Marylebone to 136 children and young people aged 3-18. This plays a significant part in cementing our commitment to reaching a critical mass of young people for whom the artform of ballet has historically been closed.

Thirteen scholarships were awarded during the period covering fees and in some cases uniform too to ensure the cost of fees (although already subsidised) are not a barrier to participation.

The Ballet Black Junior Associate programme provided additional training and mentorship to sixteen young female dancers aged 14-18 who wish to pursue careers in ballet.

Six former students are now in their first or second year of training at the Central School of Ballet, London Studio Centre, Rambert School of Ballet and Contemporary Dance and the Brit School.

We continued our audience engagement work with strategic partners such as Theatre Royal Stratford East and The Barbican.

Our audience development research project, funded by The Linbury Trust, continued and we have received over 1,000 responses to our audience survey so far. Initial results led to a ticket price restructure with several venues, increasing live performance revenue.

In September 2022 we developed a new relationship with Birmingham Rep, where eighteen Performing Arts students aged 16-18 attended a dress rehearsal and Ballet Black’s Producer talked to them about the Company and working in the sector.

Financial review

Ballet Black has ended the period in a strong financial position. With the return to touring, live performance income has very nearly returned to pre-pandemic levels.

The Charity was successful in its application for an extension year of National Portfolio Organisation (NPO) funding from Arts Council England (ACE) which runs from April 2022 to March 2023. In May 2022 Ballet Black applied for the 2023:2026 ACE NPO programme and was awarded £424,048 p/a in October 2022 with funding to begin in April 2023.

Alongside ACE funding the charity raised over £300K in grants from Trusts & Foundations and over £100K from individual and corporate donations.

The Trustees maintain a reserves policy that will ensure the stability of the company and protect against the ongoing uncertainties arising from the difficult economic and political climates and enable it to continue working towards the achievement of its strategic objectives.

The unrestricted reserves at the period end were £848,441 (2021: £676,967), deducting designated reserves (detailed below) and those held as tangible fixed assets, leaves free reserves of £71,216 (2021: -£692). These are considered an appropriate level of reserves, given the designated funds below. The reserves policy identifies three categories of reserves:

Operational cash flow reserve

The 12-month cash flow projections clearly identify the peaks and troughs in cash flow throughout the year and this reserve ensures the troughs in funding the beginning of each season can be met from reserves held. This provides the Company with the confidence to sign contracts for administrative staff and dancers for the upcoming season. It takes into consideration the cash flow needs during the first half of the financial year, which is the time before which the primary performance related income is received. It also covers unknown additional expenditure such as major dancer injury or shortfalls in income. The total operating cash flow reserve has been set as £210,000.

BALLET BLACK LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

Emergency reserve

This reserve covers emergencies and unforeseen circumstances and is only drawn down with agreement from Trustees. The agreed policy sets aside the equivalent of three months running costs. We are very happy to report that we have maintained this goal in line with increased staffing costs budgeted in 2022/23 and the increased reserve level is £287,500.

Development Fund reserve

This reserve enables the company to achieve the strategic aims agreed by Trustees in relation to its artistic offer, the ballet school, staff retention, talent acquisition and infrastructure. The total Development Fund reserve is £225k. Trustees have agreed to allocate this fund towards building new theatre partnerships and choreographic talent identification, and to contribute towards the recruitment of additional dancers and staffing. The Development Fund reserve is projected to be fully spent over the next three years.

Plans for future periods

The Company finished touring its 20th Anniversary Double Bill in autumn 2022 with performances at Watford Palace Theatre, York Theatre Royal, The Linbury Theatre, the Gala Durham and The Lowry, Salford.

In March 2023 Ballet Black: Pioneers premiered at Barbican Theatre and was followed by performances at Oxford Playhouse, Birmingham Repertory Theatre, Theatre Royal Stratford East, York Theatre Royal and Edinburgh Festival Theatre. The double bill included a new work choreographed by Company Dancer, Mthuthuzeli November, called Nina: By Whatever Means which was inspired by musician, performer and activist, Nina Simone. The bill also included a revival of Then Or Now originally choreographed by Will Tuckett for Ballet Black in 2020.

In November 2022 a short film of Mthuthezeli November’s piece WASHA was filmed and it is expected to be released in autumn 2023.

Plans for the Company’s first ever North American tour is confirmed for October 2023 with performances in Toronto and Ottawa.

The Company plans to increase its artistic and operational capacities through the recruitment of up to two new dancers and three administrative roles during the next year. This includes an education role funded by Bank of America, to increase the Company’s outreach programme and expand the BBJS to include an East London location.

Structure, governance and management

The charity is a company limited by guarantee. Founded in 2001 and incorporated in 2002, the Ballet Black was registered as a Charity in 2004. C Pancho holds one share in Trust, with no beneficial interest. The charity’s governing documents are the amended memorandum and articles of association as adopted on 24 April 2023.

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

A J Efunshile CBE - Chair A Banjoko OBE H A Hall C Hampson P K Hamzahee FRSA A Hochhauser QC L Kogbara - Treasurer (Resigned 14 December 2021) C Pancho MBE - Founder/CEO A S Prag T Vianana (Appointed 17 November 2021)

BALLET BLACK LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

The Trustees oversee the delivery of the work against agreed programmes, plans and budgets. The day to day management of the Charity is provided by Artistic Director and Founder Cassa Pancho.

Once the need for new Trustees has been identified, the Trustees agree what new skills and experience are needed on the Board. A job description and person specification is prepared and circulated through networks and online platforms. Following a shortlist and interview process, new Trustees are appointed as a Trustee of Ballet Black by the existing Board through a members vote. Appointees are provided with an induction pack and initial training when they join the Board.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Related parties and risk management

All Trustees are required to declare any outside interests and particularly note if any might result in a conflict of interest. Any conflicts are declared at the start of each meeting and Trustees will not take part in any debate or discussion concerning the matter.

The Finance & Risk Committee maintains a risk register which is reviewed by the Board of Trustees on an annual basis. The principal risks identified on the register are; increase to running costs due to inflation which will be mitigated against with the reallocation of a Covid-19 operational reserve; insufficient project funding which is mitigated against with strategic planning focusing on diversification of funds and partnership building.

Staff pay and bonuses, aside from Artistic Director, are approved by the Board of Trustees at the Finance & Risk Committee. Pay scales are reviewed by the committee against industry benchmarking on a regular basis. In the case of the Artistic Director, renumeration is agreed by the Board without the AD’s presence and is in line with any personal or company objectives set at the AD’s annual appraisal with The Chair of Trustees.

A fundraising target is set at the start of each financial year following a budgeting process which identifies known and estimated income. A database of funding sources relevant to Company activities is maintained throughout the year and the staff research for new trusts and foundations and private donors. Throughout the year bids are prepared and submitted for both multi-year and one-off grants that will support the organisation’s planned activity goals. Funding applications are written by the General Manager and the CEO/Artistic Director and they are supported by board members with specialist knowledge of fundraising. An Ethical Fundraising Policy is maintained and used by the Board to determine if grants or donors are suitable for the organisation.

Company staff in charge of fundraising are not members of any funding regulatory groups. There have been no complaints received by the charity about fundraising activities. The fundraising target for the period was a total of £269,185 to include both institutional grants and donations. The actual for the period was £397,317.

Statement of Trustees’ Responsibilities

The trustees (who are also directors of Ballet Black Limited 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 year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

BALLET BLACK LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF BALLET BLACK LIMITED For the period ended 30 September 2022

Opinion

We have audited the financial statements of Ballet Black Limited for the period ended 30 September 2022 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact.

We have nothing to report in this regard.

BALLET BLACK LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF BALLET BLACK LIMITED For the period ended 30 September 2022

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 5, the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

BALLET BLACK LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF BALLET BLACK LIMITED

For the period ended 30 September 2022

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with trustees and updating our understanding of the sector in which the charitable company operates.

Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

BALLET BLACK LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF BALLET BLACK LIMITED For the period ended 30 September 2022

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Strong (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP

Chartered Accountants St Catherine’s Court Statutory Auditors Berkeley Place Clifton BS8 1BQ

Date: 25 July 2023

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

BALLET BLACK LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income and endowments from:
Donations and legacies
3
551,787
117,643
Charitable activities
4
345,884
-
Other income
5
10,988
-
Total income
908,659
117,643
Expenditure on:
Raising funds
6
72,307
-
Charitable activities
7
664,878
150,743
Total expenditure
737,185
150,743
Net income/(expenditure) for the
period/year
Net movement in funds
171,474
(33,100)
Fund balances at 1 September 2021
676,967
84,100
Fund balances at 30 September
2022
848,441
51,000		 Total Unrestricted

funds
2022
2021
£
£
669,430
663,662
345,884
51,924
10,988
-
1,026,302
715,586
72,307
46,559
815,621
516,449
887,928
563,008
138,374
152,578
761,067
524,389
899,441
676,967		 Restricted
funds
2021
£
114,500
-
-
114,500
-
30,400
30,400
84,100
-
84,100		 Total
2021
£
778,162
51,924
-
830,086
46,559
546,849
593,408
236,678
524,389
761,067

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

All income and expenditure derive from continuing activities.

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

Notes
Fixedassets
Tangibleassets 11 22,659
Currentassets
Stocks
Debtors		 BR 7,486
34,395		 8,596
15,081
Cashatbankandinhand 860,408 716,981
902,289 740,658
Creditors:amountsfallingduewithinone
year 14 (57,573) (2,250)
Netcurrentassets 844,716 738,408
Totalassetslesscurrentliabilities 899,441 761,067
Incomefunds
Restrictedfunds 16 51,000 84,100
Unrestrictedfunds
Designatedfunds 17 722,500 655,000
Generalunrestrictedfunds 125,941 21,967
848,441 676,967
899,441 761,067

BALLET BLACK LIMITED

STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

Notes
2022
£
£
Cash flows from operating activities
Cash generated from operations
19
189,162
Investing activities
Purchase of tangible fixed assets
(45,735)
Net cash used in investing activities
(45,735)
Net cash used in financing activities
-
Net increase in cash and cash equivalents
143,427
Cash and cash equivalents at beginning of period
716,981
Cash and cash equivalents at end of period
860,408
Analysis of changes in net funds
At 1 September 2021
£
Cash flow
£
Net cash
Cash at bank and in hand
716,981
143,427
Total
716,981
143,427		 2021
£
£
231,772
(11,959)
(11,959)
-
219,813
497,168
716,981
At 1 September 2022
£
860,408
860,408		 £
231,772
(11,959)
-
219,813
497,168

BALLET BLACK LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

1 Accounting policies

Charity information

Ballet Black Limited is a private company limited by guarantee incorporated in England and Wales (charity registration number 101599, company registration number 04573958). The registered office is Austin House, 43 Poole Road, Bournemouth, Dorset, BH4 9DN, England.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 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. The principal accounting policies adopted are set out below.

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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

Designated funds are set aside by the Trustees out of unrestricted general funds for specific future purposes or projects.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

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 or deeds of covenant is recognised at the time of the donation.

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.

BALLET BLACK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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:

Plant and equipment 25% reducing balance Computers 25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

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).

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 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.

BALLET BLACK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2022

1 Accounting policies

(Continued)

1.10 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.

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.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Taxation

Ballet Black Limited is registered as a Charity with the Charity Commission of England and Wales under number 101599. Because of its charitable status, Ballet Black Limited is exempt from United Kingdom taxation on its surplus income and capital gains.

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.

BALLET BLACK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2022

Unrestricted
Restricted
Total
Unrestricted
Restricted
funds
funds
funds
funds
2022
2022
2022
2021
2021
£
£
£
£
£
Donations and gifts
108,845
-
108,845
60,314
3,500
Grants
442,942
117,643
560,585
603,348
111,000
551,787
117,643
669,430
663,662
114,500		 Total
2021
£
63,814
714,348
778,162

4 Charitable activities

Charitable Charitable
Income Income
2022 2021
£ £
Sales within charitable activities 332,450 48,891
Ancillary trading income 13,434 3,033
345,884 51,924

5 Other income

Unrestricted Total
funds
2022 2021
£ £
Theatre Tax Credit 10,988 -
Raising funds
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Support costs 72,307 46,559
72,307 46,559
Support costs includes £71,352 (2021: £40,496) for professional services as Artistic Director, as disclosed in note 9.

6 Raising funds

BALLET BLACK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

7 Charitable activities

Depreciation and impairment
Ballet Company and Ballet School
Analysis by fund
Unrestricted funds
Restricted funds		 2022
2021
£
£
13,669
5,965
801,952
540,884
815,621
546,849
815,621
546,849
664,878
516,449
150,743
30,400
815,621
546,849

8 Net income/(expenditure)

Net income/(expenditure) is stated after charging:

Net income/(expenditure) is stated after charging:
2022 2021
£ £
Auditors’ remuneration 9,500 -
Auditors’ remuneration for non-audit services - -
Depreciation – owned assets 13,689 5,965

9 Trustees

Trustee C Pancho received remuneration of £71,352 (2021: £40,496) for professional services as Artistic Director, Choreographer and CEO. Ballet Black’s Articles of Association state that a Director is entitled to be reimbursed from the Charity when acting on behalf of the Charity.

No other trustees (or any persons connected with them) received any remuneration or benefits from the charity during the current period or previous year.

There were no trustee expenses reimbursed. Five trustees are members of the Ballet Black Friends Circle and give monthly donations of up to £150 per month.

BALLET BLACK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2022

10 Employees

The average monthly number of employees during the period was:

The average monthly number of employees during the period was:
There were no employees whose annual remuneration was more than £60,000.
Wages and salaries
Social security costs
Employers allowance
Pension costs – defined contribution
Total staff costs		 2022
Number
1
2022
£
24,441
2,114
(2,114)
399
24,840		 2021
Number
-
2021
£
-
-
-
-

There were no employees whose annual remuneration was more than £60,000.

BALLET BLACK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

11
Tangible fixed assets
Plant and
equipment
Computers
£
£
Cost
At 1 September 2021
42,751
7,797
Additions
40,496
5,239
At 30 September 2022
83,247
13,036
Depreciation and impairment
At 1 September 2021
24,999
2,890
Depreciation charged in the period
11,082
2,587
At 30 September 2022
36,081
5,477
Carrying amount
At 30 September 2022
47,166
7,559
At 31 August 2021
17,752
4,907
12
Stocks
2022
£
Finished goods and goods for resale
7,486
13
Debtors
2022
Amounts falling due within one year:
£
Trade debtors
-
Other debtors
27,406
Prepayments and accrued income
5,729
33,135
2022
Amounts falling due after more than one year:
£
Prepayments and accrued income
1,260
Total debtors
34,395		 Total
£
50,548
45,735
96,283
27,889
13,669
41,558
54,725
22,659
2021
£
8,596
2021
£
(495)
11,976
3,600
15,081
2021
£
-
15,081

BALLET BLACK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2022

14
Creditors: amounts falling due within one year
Notes
Deferred income
14
Trade creditors
Accruals
15
Deferred income
Arising from Grants and prepaid ballet school fees
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the period:
Deferred income at 1 September 2021
Resources deferred in the period
Deferred income at 30 September 2022		 2022
£
35,969
16,231
5,373
57,573
2022
£
35,969
2022
£
35,969
-
35,969
35,969		 2021
£
-
-
2,250
2,250
2021
£
-
2021
£
-
-
-
-

BALLET BLACK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2022

16 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
Movement in funds
Incoming
resources
£
Resources
expended
£
Balance at 1
September
2021
£
Incoming
resources
£
Resources
expended
£
30
Sackler (Producer)
40,000
(18,150)
21,850
40,000
(41,850)
Bloomberg (Digital
Producer)
50,000
-
50,000
-
(50,000)
Foyle Foundation (Media
Producer)
21,000
(8,750)
12,250
-
(12,250)
Bank of America
-
-
-
72,643
(42,643)
Idlewild Trust
-
-
-
5,000
(4,000)
111,000
(26,900)
84,100
117,643
(150,743)		 Balance at
September
2022
£
20,000
-
-
30,000
1,000
51,000

The Sackler Trust

A grant of £40,000 to fund the appointment of a Producer.

Bloomberg

A grant awarded to support development of Ballet Black’s digital infrastructure. The grant has been used to fund a Digital/Media Producer wages and website hosting/development of the BBonFilm Platform.

Foyle Foundation

A grant awarded to fund a Media Producer to increase and engage diverse arts audiences in the UK.

Bank of America

A grant awarded in November 2021 to fund a full time Education Manager to oversee Ballet Black’s education programme.

Idlewild Trust

A grant awarded in June 2022 to fund Ballet Black Apprentice and Trainee Dancer Programme for 12 months. This fund helps to support a career path to young dancers of Black and Asian heritage through paid appointment.

-22-

BALLET BLACK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2022

17
Unrestricted funds
Balance at 1 August
2020
£
Net incoming
resources
£
General funds
6,889
152,578
Designated funds:
Emergency fund
82,500
-
Development Fund
225,000
-
Operational Cashflow
210,000
-
517,500
-
Total unrestricted
524,389
152,578		 Transfers
£
Balance at 1
September
2021
£
Net incoming
resources
£
(137,500)
21,967
171,474
137,500
220,000
-
-
225,000
-
-
210,000
-
137,500
655,000
-
-
676,967
171,474		 Transfers
£
Balance at 30
September
2022
£
(67,500)
125,941
67,500
287,500
-
225,000
-
210,000
67,500
722,500
-
848,441

Designated funds

Operational cash flow reserve

The 12-month cash flow projections clearly identify the peaks and troughs in cash flow throughout the year and this reserve ensures the troughs in funding the beginning of each season can be met from reserves held. This provides the Company with the confidence to sign contracts for administrative staff and dancers for the upcoming season. It takes into consideration the cash flow needs during the first half of the financial year, which is the time before which the primary performance related income is received. It also covers unknown additional expenditure such as major dancer injury or shortfalls in income. The total operating cash flow reserve has been set as £210,000.

Emergency reserve

This reserve covers emergencies and unforeseen circumstances and is only drawn down with agreement from Trustees. The agreed policy sets aside the equivalent of three months running costs. We are very happy to report that we have maintained this goal in line with increased staffing costs budgeted in 2022/23 and the increased reserve level is £287,500.

Development Fund reserve

This reserve enables the company to achieve the strategic aims agreed by Trustees in relation to its artistic offer, the ballet school, staff retention, talent acquisition and infrastructure. The total Development Fund reserve is £225k. Trustees have agreed to allocate this fund towards building new theatre partnerships and choreographic talent identification, and to contribute towards the recruitment of additional dancers and staffing. The Development Fund reserve is projected to be fully spent over the next three years.

BALLET BLACK LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2022

18 Related party transactions

During the period the charity entered into the following transactions with related parties:

Physiobase.com Ltd and The Physio Shop.com Ltd received payments of £48,784 (2021: £22,175) for services and goods rendered to the Charity. Physiobase.com is owned by R Bolton spouse of Trustee C Pancho. C Pancho was also a director of Physiobase.com until 14 April 2023.

C Pancho received payments totaling £71,352 (2021: £40,496) for services rendered to the Charity, as detailed in note 9.

Members

None of the trustees has any beneficial interest in the company. C Pancho holds one share in Trust. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

19
Cash generated from operations
Surplus for the period
Adjustments for:
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in stocks
(Increase) in debtors
Increase in creditors
Increase in deferred income
Cash generated from operations		 2022
£
138,374
13,669
1,110
(19,314)
19,354
35,969
189,162		 2021
£
236,678
5,965
(3,154)
(8,340)
623
-
231,772

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