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2021-03-31-accounts

Draft Financial Statements

ARTS IN RURAL GLOUCESTERSHIRE

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Company Registration No. 4237344 (England and Wales)

Charity Registration No. 1104224

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees C. Hargrave (Chair) D. J. Russell J. P. S. Rowlands K. S. Jarvis P. A. Milton Secretary E. J. O'Driscoll Charity number 1104224 Company number 4237344 Registered office Elm Park House Elm Park Court Pinner Middlesex HA5 3NN Independent examiner Natasha Kerr FCCA Sears Morgan Accountancy Limited Elm Park House Elm Park Court Pinner Middlesex HA5 3NN

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

CONTENTS

Page
Trustees' report 1 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the accounts 8 - 12

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their report and financial statements for the year ended 31 March 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the 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)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The objects are to "promote, improve and advance education of the public in the area of Gloucestershire, with particular reference to the rural areas, by the encouragement of the arts, including the arts of theatre, mime, dance, music and other art forms, and to formulate, prepare and establish schemes therefore". The policy adopted in furtherance of these objects is by the underwriting of potential losses which may be incurred by smaller venues in staging certain performances and there has been no change in these during the year. The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Company should undertake.

Achievements and performance

In 2019/20 events and workshops took place in more than 40 different community locations. This included performances across all 6 Districts of Gloucestershire with an excellent geographic spread reaching nearly all areas of the County. 25 companies were given the opportunity to perform through the scheme (excluding COVID cancellations) as well as members of our youth theatre (up until Aug 2019) at a range of different venues/spaces. We promoted 3 contemporary dance pieces (2 in partnership with Strike a Light in Gloucester) and 4 Gloucestershire based companies. Acts in 2019/20 included puppetry, comedy, drama, dance and many different forms of music.

In line with our Race Equality and Diversity Action Plan a minimum of 10 percent of all artists included in our annual menu were from diverse backgrounds. The quality of work offered through the scheme remained exceptionally high as testified by Promoter reports and regular visits by scheme organisers and board members. AIR in G truly celebrates and champions artistic excellence, enabling it to thrive across Gloucestershire by constantly seeking to challenge audiences with diverse and ambitious work that reflects the rich diversity of England’s communities.

While we would always like to see more communities taking part in the scheme (especially North Cotswolds) we have limited resources and have to accept that our reach must always be underpinned by a realistic budget.

Rural touring by its very nature reaches a cross section of society that many traditional arts organisations struggle to attract through the act of taking a performance into the heart of a community rather than expecting an audience to travel to a venue. Additionally AIR in G always offers a highly eclectic programme of work and performances.

Sadly due to a lack of funding our Youth Theatre was forced to close in August 2019 after nearly 12 very successful years. We still managed to run 50 workshops and hosted 2 performances through our Young Promoter's Scheme between April and the closure in August.

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

2 new villages took part in the scheme in 2019/20 and we managed to sustain an average attendance of nearly 60 people for each event (including volunteers), and in what are increasingly difficult financial times for many people we believe this reflects the convenience of our performances taking place in the heart of a community without the need to drive to the nearest town/city and the associated costs. We continue to offer positive pricing subsidies (to encourage villages to try something different) and more than 20 communities benefitted from the subsidy.

In May 2019 we invited representatives from all villages/communities across the County to attend our Promoters Forum which was held at Maisemore Village Hall. This annual event brings together existing Promoters with interested parties from new communities across the county in a friendly informal environment and is one of our principal tools for increasing the number and range of people taking part in the scheme – both new and those returning after an absence. We launched our annual menu at the Forum before distributing it both physically and electronically.

In 2019/20 communities across all 6 Districts of the County benefited from the work of AIR in G reaching

more than 4500 people before COVID forced us to cancel 12 performances.

The board met at quarterly intervals throughout the year with an AGM in August 2019. Over the course of the year one member retired from the board (Alan Lord) and a new member joined (Paul Milton). Core administration staff remained the same.

Sustainability

AIR in G is committed to monitoring its resources – not only for environmental issues but also as good working practice. We are keen to continue these practices and strive to implement new ways to improve our carbon footprint. It is our aim to encourage good environmental practice throughout our company and to ask of it in others – from transport to print.

Financial review and reserves policy

It is the aim of the Company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure and where it falls short, concerted effort will always be made to achieve this position . The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Company’s current activities while consideration is given to ways in which additional funds may be raised.

The Trustees have assessed the major risks to which the Company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for the future

We currently have funding from Arts Council England to support rural touring events across Gloucestershire until 2023 (COVID extension). We will continue to provide the scheme in line with COVID restrictions and explore additional community activity as and when opportunities arise.

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

COVID-19

Air In G is committed to the NRTF Policy on COVID19:

Rural Touring pledge to artists: To maintain good-will amongst rural and community touring arts organisations and to offer support to artists to get through these difficult and challenging circumstances. Rural Touring organisations have come together to agree, that regardless of contracted obligations and where possible, they will pay a percentage of booking fees to artists as a result of cancellations due to COVID-19. The percentages and payments will differ depending on the agreements and the position of the fee-paying organisation. There is a willingness from schemes to give as much as they can and to not be better off because of a cancellation.

Rural Touring pledge to our communities: The majority of rural arts organisations are fleet of foot and understand they are in the perfect position to keep connections going and support rural and local communities. They are mindful of those in their communities who are older and less-digitally literate and will consider how to keep them in the loop. Where possible, they will support those living in social isolation and loneliness, especially where rural touring events are a support for them. This will be done via regular communications with promoters and audiences alongside the sharing of resources and opportunities.

Structure, governance and management

The Company is a company limited by guarantee and is governed by its Memorandum and Articles of Association. The Company was granted Charitable Status on 19 June 2004 under charity number 1104224.

The Trustees, who are also the directors for the purpose of company law, and who served during the year were:

C. Hargrave (Chair) D. J. Russell J. P. S. Rowlands K. S. Jarvis P. A. Milton

The day to day management of the charity is undertaken by Mr E O'Driscoll, the secretary of the company.

Trustees are appointed in accordance with the Company's articles of association.

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.

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The Trustees, who are also the directors of Arts In Rural Gloucestershire for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Funds held as custodian trustee

No assets are held by the Company on behalf of other organisations.

The trustees' r eport was approved by the Board of Trustees.

..............................

C. Hargrave (Chair) Trustee Dated: .........................

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF ARTS IN RURAL GLOUCESTERSHIRE

I report on the financial statements of the Company for the year ended 31 March 2021, which are set out on pages 6 to 12.

Respective responsibilities of Trustees and examiner

The Trustees, who are also the directors of Arts In Rural Gloucestershire for the purposes of company law, are responsible for the preparation of the accounts. The Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011, the 2011 Act, and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.

Independent examiner's statement

In connection with my examination, no matter came t o my attention:

Natasha Kerr FCCA Sears Morgan Accountancy Limited Elm Park House Elm Park Court Pinner Middlesex HA5 3NN

Dated: .........................

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Unrestricted
funds funds
2021 2020
Notes
£		 £
Income and endowments from:
Charitable activities 3 43,640 62,646
Other income 4 540 1,783
Total income 44,180 64,429
Expenditure on:
Raising funds 5 - 2,579
Charitable activities 6 34,771 62,182
Total resources expended 34,771 64,761
Net income/(expenditure) for the year/
Net movement in funds 9,409 (332)
Fund balances at 1 April 2020 15,707 16,039
Fund balances at 31 March 2021 25,116 15,707

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

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.

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
8
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due within
one year
10
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2021
£
1,453
25,274
26,727
(1,994)		 £
383
24,733
25,116
25,116
25,116		 2020
£
3,390
15,148
18,538
(3,343)		 £
512
15,195
15,707
15,707
15,707

The 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 2021.

The directors acknowledge their responsibilities for ensuring that the charity 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 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 company.

The members have not required the 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 financial statements were approved by the Trustees on .........................

..............................

C. Hargrave (Chair) Trustee

Company Registration No. 4237344

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Arts In Rural Gloucestershire is a private company limited by guarantee incorporated in England and Wales. The registered office is Elm Park House, Elm Park Court, Pinner, Middlesex, HA5 3NN.

1.1 Accounting convention

The accounts have been prepared in accordance with the 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)” (as amended for accounting periods commencing from 1 January 2016). The Company is a Public Benefit Entity as defined by FRS 102.

The Company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the Company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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 Company 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 funds which are used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes.

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

1.4 Incoming resources

Income is recognised when the Company 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.

Charitable income represents funding received from grant making organisations and revenue recovered from events underwritten by the company.

Funding income received by the way of grants is recognised in the period to which it relates and is included in income as noted above.

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.5 Resources expended

All expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all costs relating to each particular category. Where costs cannot be directly attributed to particular headings they are allocated to activities on a basis consistent with the use of the resources.

C haritable expenditure represents costs incurred in connection with activities undertaken directly, the administration of the charity and compliance with its constitutional and statutory requirements.

A full analysis of expenditure on charitable activities i s given in the notes to the accounts.

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:

Fixtures, fittings & equipment

25% Reducing balance basis

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 net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the Company 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 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 Company 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 Company's balance sheet when the Company 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.

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

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 p aymen ts 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 Company’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the Company’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.

3 Income from Charitable activities

Arts Council
England
Grants
Performance
receipts
£
£
Performance receipts
-
620
Grants and LA Funding
43,020
-
43,020
620		 Total
2021
£
620
43,020
43,640		 Total
2020
£
19,463
43,183
62,646

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

4 Other income

5 UnrestrictedUnrestricted
funds
funds
2021
2020
£
£
Other income
540
1,783
Expenditure on Raising funds
2021
2020
£
£
Fundraising and publicity costs
Advertising, brochures and distribution
-
2,579
-
2,579

6 Expenditure on Charitable activities

Direct
charitable
expenditure
Management
and admin
costs
£
£
Activities undertaken directly
1,076
-
Staffing (Freelance / Sub contracted)
-
21,600
Administration costs
-
11,967
Depreciation
-
128
1,076
33,695
1,076
33,695		 Total
2021
£
1,076
21,600
11,967
128
34,771
34,771		 Total
2020
£
30,854
22,200
8,958
170
62,182
62,182

Administration costs includes an amount of £ 1,050 (2 020 - £ 1,050 ) for an Independent Examination fee.

7 Trustees

None of the Trustees (or any persons connected with them) received any remuneration during the year.

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

8 Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 April 2020 8,330
At 31 March 2021 8,330
Depreciation and impairment
At 1 April 2020 7,819
Depreciation charged in the year 128
At 31 March 2021 7,947
Carrying amount
At 31 March 2021 383
At 31 March 2020 512
9 Debtors
2021 2020
Amounts falling due within one year: £ £
Trade debtors 1,375 1,375
Prepayments and accrued income 78 2,015
1,453 3,390
10 Creditors: amounts falling due within one year
2021 2020
£ £
Other creditors 1,994 3,343