2023-03-31-accounts

Draft Financial Statements

ARTS IN RURAL GLOUCESTERSHIRE

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

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
	S. Wilson	(Appointed 23 June 2022)
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	6
Statement of financial activities	5
Balance sheet	7
Notes to the accounts	8 - 13

Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their annual report and financial statements for the year ended 31 March 2023.

The accounts have been prepared in accordance with the accounting policies set out in note 2 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 2022/23 events and workshops took place in more than 30 different community locations and included performances in all rural districts of Gloucestershire with an excellent geographic spread reaching nearly all areas of the County. Several communities/villages joined the scheme for the first time while others returned after an absence of more than 2 years. The villages welcomed 16 different acts from our 'menu' with performances covering many genres - more than 75% of the artists on our menu were selected; evidence that our choice of work is 'in tune' with the communities involved. We successfully organised more than 45 performances with several performances hosted without the need for our 'guarantee against loss', a sign of confidence and independence in some of our more experienced promoters. While the number of performances promoted was less than pre-COVID levels it exceeded our anticipated take-up and showed real resilience within our core base of volunteers.

In May 2022 we invited representatives from all villages/communities across the County to attend our annual Promoters Forum at Hartpury Village Hall. These annual events aim to bring together existing Promoters with interested parties from new communities across the county in a friendly, informal environment and are 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 were pleased with the attendance and there was a very positive and supportive attitude from all attendees. We launched our yearly menu at the Forum before distributing it both physically and electronically.

In 2022/23 communities across the County benefited from the work of AIR in G reaching more than 2500 people. Promoters and audiences continued to be surprised and delighted to find artists of the highest calibre performing on the stage of their local village hall. We hope to build on this season in 2023/24.

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Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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

In 2023 we were successful in a funding bid to Arts Council England which will enable us to continue our activity until at least 2026. We were successful in our request for additional funding to bring a Youth Theatre back to the Forest of Dean. We will be establishing a new post to manage this project and envisage commencing activity in Autumn 2023.

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 S. Wilson (Appointed 23 June 2022)

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.

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Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and

• prepare the accounts on the going concern basis unless it is inappropriate to presume that the Company will continue in operation.

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.

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Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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

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

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

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Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

		Unrestricted Unrestricted	Unrestricted Unrestricted
		funds	funds
		2023	2022
	Notes	£	£
Income and endowments from:
Charitable activities	3	64,858	57,314
Other income	4	410	340
Total income		65,268	57,654
Expenditure on:
Raising funds	5	2,577	2,495
Charitable activities	6	64,281	51,837
Total expenditure		66,858	54,332
Net (expenditure)/income for the year/
Net movement in funds		(1,590)	3,322
Fund balances at 1 April 2022		28,438	25,116
Fund balances at 31 March 2023		26,848	28,438

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.

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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 2023, which are set out on pages 5 to 13.

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:

• (i) examine the financial statements under section 145 of the 2011 Act;

• (ii) to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and

• (iii) to state whether particular matters have come to my attention.

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 to my attention:

• (a) which gives me reasonable cause to believe that in any material respect the requirements:

• (i) to keep accounting records in accordance with section 386 of the Companies Act 2006; and

• (ii) to prepare financial statements which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;

• have not been met or

• (b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

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

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

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Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

BALANCE SHEET

AS AT 31 MARCH 2023

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	2023 £ 1,273 28,519 29,792 (3,160)	£ 216 26,632 26,848 26,848 26,848	2022 £ 204 31,940 32,144 (3,994)	£ 288 28,150
				28,438
				28,438
				28,438

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 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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 number 4237344

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Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023

1 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.

2 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.

2.1 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 amounts 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.

2.2 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.

2.3 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.

2.4 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.

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Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2 Accounting policies

(Continued)

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.

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Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

2 Accounting policies

(Continued)

2.5 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.

Charitable 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 is given in the notes to the accounts.

2.6 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 the statement of financial activities.

2.7 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).

2.8 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.

2.9 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.

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Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

2 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 Company’s contractual obligations expire or are discharged or cancelled.

3 Income from Charitable activities

Arts Council England Grants Performance receipts £ £ Performance receipts - 21,838 Grants and LA Funding 43,020 - 43,020 21,838	Total 2023 £ 21,838 43,020 64,858	Total 2022 £ 14,294 43,020
		57,314

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Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

4 Other income

	Unrestricted	Unrestricted
	funds	funds
	2023	2022
	£	£
Other income	410	340

5 Expenditure on Raising funds

Fundraising and publicity costs Advertising, brochures and distribution	2023 £ 2,577 2,577	2022 £ 2,495
		2,495

6 Expenditure on Charitable activities

Direct charitable expenditure Management and admin costs £ £ Activities undertaken directly 28,478 - Staffing (Freelance / Sub contracted) - 27,000 Administration costs - 8,731 Depreciation - 72 28,478 35,803 28,478 35,803	Total 2023 £ 28,478 27,000 8,731 72 64,281 64,281	Total 2022 £ 19,284 24,300 8,157 96
		51,837
		51,837

Administration costs includes an amount of £1,050 (2022 - £0) for an Independent Examination fee.

7 Trustees

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

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Draft Financial Statements ARTS IN RURAL GLOUCESTERSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

8	Tangible fixed assets
		Fixtures, fittings & equipment
			£
	Cost
	At 1 April 2022		8,330
	At 31 March 2023		8,330
	Depreciation and impairment
	At 1 April 2022		8,042
	Depreciation charged in the year		72
	At 31 March 2023		8,114
	Carrying amount
	At 31 March 2023		216
	At 31 March 2022		288
9	Debtors
		2023	2022
	Amounts falling due within one year:	£	£
	Prepayments and accrued income	1,273	204
10	Creditors: amounts falling due within one year
		2023	2022
		£	£
	Trade creditors	1,000	1,789
	Accruals and deferred income	2,160	2,205
		3,160	3,994

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