**Theatre for a Change Limited**
## **THEATRE FOR A CHANGE LIMITED**
(A charitable company limited by guarantee)
Report and Financial Statements
Year ended 31 March 2021
Charity No. 1104458 Company No. 04913606
**Theatre for a Change Limited**
|**Contents**|**Page**|
|---|---|
|Report of the directors|1 – 9|
|Independent auditor’s report|10 – 13|
|Statement of financial activities|14|
|Balance sheet|15|
|Statement of cash flows|16|
|Notes forming part of the financial statements|17 – 25|
**Theatre for a Change Limited**
## **Report of the directors for the year ended 31 March 2021**
The directors are pleased to present their report, together with the financial statements of the charity for the year ended 31 March 2021.
## **Reference and administrative details**
Theatre for a Change Limited is a company limited by guarantee without share capital and governed by its Memorandum and Articles of Association. Charity no: 1104458. Company no: 4913606.
## **Directors**
The directors serving during the year and since the year end were as follows:
D Bailey (Deputy Chair - resigned 29th September 2020) G Bates (appointed 29th September 2020) K Chaston (Chair) T Fassam (resigned 11 July 2020) J Feather A-M Harris E Levendoglu L Millward M Montgomery T Williams (appointed 29th September 2020)
## **Secretary**
M Reynolds (resigned 30 April 2021) L Bridger (appointed 1 May 2021)
## **Registered Office**
Africa House, 70 Kingsway, London, WC2B 6AH
## **Independent Auditor**
Greenback Alan LLP 89 Spa Road, London SE16 3SG
## **Bankers**
National Westminster Bank plc
## **Solicitors**
Mishcon de Reya, Africa House, 70 Kingsway, London WC2B 6AH
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**Theatre for a Change Limited**
## **Structure, Governance and Management**
## **Governing documents**
Theatre for a Change Limited is a company limited by guarantee (No. 4913606) incorporated 26 September 2003. Its governing documents are the Memorandum and Articles of Association.
## **Directors**
The directors listed on page 1 served throughout the period except as noted. Directors may be elected by the Board to serve until the next annual general meeting or by the members in general meeting.
## **Appointment and training of directors**
When recruiting new directors, the Board looks for individuals with skills and experience that are of value to the company and which may not already be held by existing directors. Potential directors are interviewed by the Chair and the Executive Director and are provided with an organisational information pack.
Prior to appointment all Board members have a three month probationary period, during which they are expected to attend a board meeting. They will be provided with further information about Theatre for a Change and their responsibility and liability as director. Where appropriate, the company supports specific training of directors.
## **Organisation**
The focus of this report is Theatre for a Change Limited (TfaC UK), a United Kingdom charity. Our international partner, Theatre for a Change Malawi, is a legally independent separate company with its own constitution, management committee and audited accounts.
UK staff:
Patrick Young, Executive Director (until 30 April 2021) Fiona Morrell, Executive Director (from 1 May 2021) Heather Knight, Head of Grants Ryan Borcherding, New Partnerships Programme Manager Lynda Bridger and Julia Ross – Financial Management Consultants
## UK Board of directors:
Dominic Bailey, Director of Baxter and Bailey (Deputy Chair) Gerald Bates, Director, BDO LLP Kay Chaston, Consultant (Chair) Jo Feather, Independent international development consultant Anne-Marie Harris, CFO/COO, The Global Steering Group for Impact Investment Emil Levendoglu, Deputy Director, Financial Services Group, HM Treasury Michelle Montgomery, Business Affairs Manager, Adidas Louise Millward, Trusts and Grants Manager, Womankind Teohna Williams, Deputy Head of Office, UN Peacekeeping DRC
Registered Office:c/o Mishcon de Reya, Africa House, 70 Kingsway, London WC2B 6AH.
The Board meets once per quarter, and is facilitated by the Executive Director. Support for legal matters is given on a pro bono basis by Mishcon de Reya and the independent auditor, also on a pro bono basis, is Greenback Alan LLP.
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**Theatre for a Change Limited**
## **Objectives and Activities**
The Memorandum of Association includes the Objects of TfaC UK:
_“1. The advancement of the education and health of marginalised communities in the UK and abroad by the use of performing arts including but not limited to the arts of drama, mime, dance, singing and music; and_
_2. such other charitable purposes as the directors at their absolute discretion shall decide.”_
The directors have had regard to the Charity Commission’s guidance on public benefit.
## **OUR GOAL**
Our goal is the empowerment of the most vulnerable and marginalised women and girls.
## **OUR MISSION**
Our mission is to effect change in the lives of vulnerable and marginalised women and girls through changing the behaviours, social norms and policies that affect their lives.
## **ORGANISATIONAL OBJECTIVES**
1. Supporting the work of our sister organisation, Theatre for a Change Malawi – with people, expertise and funding. This strategic plan has been developed closely with the team in Malawi and complements their strategic plan for the next five years.
2. Developing new partnerships with like-minded organisations. We will offer our training and methodology to a range of organisations who share our focus on the empowerment of marginalised women and girls.
## **Strategies adopted to further our objectives**
The strategies adopted to further our objectives break down into two main areas: Malawi and international. For both of these areas, strategies are sought that will lead to the most impact, value for money and sustainability. As a result, the company works with the governments of our countries of operation to ensure that wherever possible the appropriate ministry (e.g. Education, Gender, Health) is involved in planning, implementing and evaluating the projects so that they can be embedded and sustained by that ministry in the future.
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**Theatre for a Change Limited**
## **Achievements and performance – April 2020 – March 2021**
The Coronavirus pandemic had a huge impact on our operations during this year. In many areas of operation, face to face work was suspended at times and we had to adapt our work to remote approaches, including the use of: on line platforms for training; the Interactive Radio Drama and mobile phone technology to keep in touch with the most vulnerable of our participants.
However, despite these challenges, the teams and our participants demonstrated incredible creativity and resolve in adapting to the new approaches, and we maintained a higher level of connection with our participants and impact on their lives than we had imagined possible.
Our organisational response to the pandemic was comprehensive, pro-active and well coordinated through the mobilization of our Operations Continuity Plan. This involved a tiered response to the pandemic, and with each wave, enabled us to respond in a calibrated and clear manner. The engagement of the Boards with the staff in both UK and Malawi was significantly raised, and provided a significant level of support in responding to these unprecedented conditions.
## Theatre for a Change Malawi (TfaC Malawi)
## **Education Programmes**
April 2020 saw the second year of implementation of the Girls’ Education Challenge (GEC) project, Leave No Girl Behind. The programme focusses on out of school girls in three districts in Malawi over four years, and officially began in August 2018. The programme is delivered in a consortium headed by Link Education International. The programme was affected by intermittent school closure as a result of COVID 19 during the year but was able to adapt and innovate to increase protection for girls against the increased risk of sexual and gender-based violence. Despite the disruptions, the mid line assessment indicated the programme had improved learners’ knowledge, attitudes and skills in sexual and reproductive health and child protection.
We continued our partnership with the Medicor Foundation on the delivery of innovative approaches to improving SRH in teacher training colleges and primary schools with the support of the Interactive Radio Drama Programme in order to maximise impact with the resources available. Trained teachers graduate to deliver Girls’ Clubs within our Leave No Girl Behind project.
During this period we continued our collaboration with the German Government on preventing and responding to sexual and gender based violence in flood affected areas, in the south of Malawi.
## **The Community Programme**
TfaC UK has generated new funding from the Mercury Phoenix Foundation and the Charles Hayward Foundation for the mobile health clinic in Malawi which provides patient-friendly and essential health services to sex workers and their clients, young pre-service teachers and for the out of school girls in the Leave No Girl Behind project.
TfaC Malawi was funded directly during the year by the following organisations:
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**Theatre for a Change Limited**
- GIZ
- Irish Rule of Law
- TfaC UK: with grants from DFID, Medicor, The Mercury Phoenix Trust, The Charles Hayward Foundation and individual donors.
## Theatre for a Change in Ghana
Theatre for a Change UK continues to support The Women of Dignity Alliance (WODA) with funding from UK donors, and with management and strategic support. It is proving to be an effective partnership, with significant impact on the sexual and reproductive health of women in sex work.
During this financial year, WODA began the Amplify Change project with the support of TfaC UK. This project aims to improve police response to sexual and gender-based violence experienced by women in sex work. .
TfaC UK’s partnership with the Women of Dignity Alliance was funded by:
The Medicor Foundation and The Evan Cornish Foundation.
## Theatre for a Change UK
This was a transformative year for the New Partnerships Programme in particular. In April 2020, we began a 3 year project funded by our Anonymous Foundation just as the Coronavirus struck. However, the key part of the project is to transfer our methodology onto an on line learning platform to enable us to expand our reach and impact on a sustainable basis – and was perfectly focussed to respond to the pandemic. As a result of the Coronavirus, the face to face delivery of projects was not possible, and we focussed on transferring our training to on line platforms. These platforms were piloted with our group of trainers and then successfully used to deliver remote training in Interactive Radio Drama to UNICEF partners in Mexico.
We further developed our partnership with the International Planned Parenthood Federation (IPPF), with expressions of interest in our remote training in Interactive Radio Drama submitted by Member Associations. The Head of Methodology and Training is conducting further meetings with organisations with the aim of developing partnerships with three associations.
We were successful in bidding for a grant from the Google New Initiative COVID-19 Vaccine Counter-Misinformation Open Fund to deliver a project in partnership with Africa Check in Nigeria and Senegal. The focus of this project is on challenging myths around the Coronavirus vaccine and enabling marginalised groups to develop the knowledge and attitudes to get vaccinated.
We are delighted to announce that we have appointed a new Executive Director, as our current Executive Director retires. Fiona Morrell took over in May 2021, and we look forward to a successful future under her leadership.
Finally, Theatre for a Change was successfully named as one of just 3 shortlisted charities at the UK’s Charity Awards in their International Aid and Development category and congratulate the winner in our category, Excellent Development.
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**Theatre for a Change Limited**
## The Year Ahead
After a year of significant challenges presented by the Coronavirus pandemic, the directors hope to see the consolidation of the organisation as a whole over the coming year, and ensuring that we have the technical, financial and human resources that we need to complete our current five year strategic plan, and our business plan for the year ahead.
This business plan for 2021-22 has the following objectives for the coming year:
Objective 1: To build the capacity of TfaC UK to support and deliver programmes in Malawi, Ghana, the UK and internationally.
Objective 2: To strengthen the capacity of TfaC Malawi in its journey towards greater sustainability, both financially and technically, and build the TfaC Partnership into one of mutually supportive and collaborative entities.
Objective 3: To grow innovation, impact and income through long term partnerships with organisations who want to use our methodology for the empowerment of vulnerable and marginalised women and girls.
## **Fundraising activities of TfaC UK**
## Funding sources
Anonymous foundations and individuals
The Charles Hayward Foundation
The Foreign Commonwealth and Development Office
Eleanor Rathbone
The Evan Cornish Foundation
The Medicor Foundation
The Mercury Phoenix Trust
The Oak Foundation
## Charitable activities
The directors’ sincere thanks also go to those individuals who have supported TfaC UK by making donations as well as to the many people who have volunteered their time and expertise to help the organisation during the year.
## **CONCLUSION**
This has been a year of significant organisational development for Theatre for a Change. In a world that has significantly changed with Coronavirus, the organisation has adapted to this changed environment, and shown its creativity and resilience. Working approaches have
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**Theatre for a Change Limited**
been adapted in all areas of operation and we have seen a significant impact on the sexual and reproductive health behaviours and rights of marginalised groups and individuals.
We will continue to manage the Coronavirus situation very carefully, and prioritise the health and safety of our staff and participants. Our donors have been very understanding, and we have not lost any income to date. We will be keeping all our donors and partners updated as the situation unfolds. We have effectively managed the funds for the work in Malawi and Ghana ensuring that we are getting the best possible value for money.
As a result, the new financial year begins with confidence that Theatre for a Change is well placed to meet the urgent need for sustainable and effective interventions in Malawi, Ghana and in our new areas of operation. We will start the new financial year with nearly six months of reserves.
## **Financial review**
During the year under review, the total income was £873,761 (2020: £708,838) and the expenditure was £747,643 (2020: £843,159).
The Memorandum of Association prohibits the payment of any dividends.
## **Investment powers and policy**
The Memorandum of Association allows the company to invest in those securities and property as the directors think fit.
## **Reserves policy and going concern**
It is intended to maintain an acceptable level of reserves (three months of running costs equivalent to £55,082) so as to absorb any setbacks, take advantage of any opportunities, avoid any serious disruption and to secure long term viability. Our Reserves Policy is available upon request.
The total amount of unrestricted funds held in reserve at year end is £105,931 (2020: £93,123). This is a strong position for the organisation, and one that will help to underpin its sustainability.
The restrictions on these funds are that they are to be used only when there is insufficient funding of core costs. The directors must be informed as soon as the reserves are being used. The funds are not held in any commitments or fixed assets but are held as cash and are available for use as and when the need arises.
For the year ended 31 March 2021, the company’s total funds stood at £270,376 (2020: £144,258) of which £164,445 (2020: £51,135) are restricted funds.
The directors have reviewed the circumstances of Theatre for a Change Limited and consider that adequate resources continue to be available to fund the activities of the charitable company for the foreseeable future. The directors are aware that recent changes to the Department for International Development, now the Foreign, Commonwealth and Development Office, have led to cuts in some project funding. The charity has not yet been made aware of any reduction in the Leave No Girl Behind programme. The management team have developed mitigating strategies to reduce any impact of these cuts.
The directors have reviewed the plans and are of the view that the charitable company is a going concern.
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**Theatre for a Change Limited**
## **Risk management**
Risk management is a key aspect of the charity’s good governance and management. A risk management register has been developed by the Board of Directors and the Executive Director. The charity reviews it on a quarterly basis. The Board of directors will review the risks in the following five principle areas of risk as identified by the Charity Commission:
- Governance risks
- Operational risks
- Financial risks
- Environmental or external factors
- Compliance risk (law and regulation)
These areas are reviewed in our risk register and this and our risk management policy are available upon request. The factors that affect the financial position in future are primarily the funding environment for international development, our alignment with it and our ability to position ourselves within it. The first two will be key elements of our strategy which we are reviewing in the year ahead.
The key risks identified relate to the impact of the recent UK Government’s changes to international aid funding and the impact of COVID-19 on funding streams. The management team are working with our programme partner, Link International, to understand and minimise the risk to funding. A strategic review process will be undertaken in 2021-22 and income diversity will be a key focus.
## **Directors’ responsibilities in relation to the financial statements**
The directors are responsible for preparing a directors’ annual report and financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have prepared the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including the Charities SORP Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the charitable company’s affairs and of the incoming resources and application of resources, including the income and expenditure for that period. In preparing the financial statements, the directors 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 financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors are responsible for
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**Theatre for a Change Limited**
the maintenance and integrity of the corporate and financial information included on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Statement as to disclosure to our auditors**
In so far as the directors are aware at the time of approving our directors’ annual report:
- there is no relevant audit information, of which the charitable company’s auditor is unaware, and
● the directors , have taken all the steps that he/she ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.
By order of the directors:
K Chaston (Chair) Date: 22 June 2021
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**Theatre for a Change Limited**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THEATRE FOR A CHANGE LIMITED**
## **Opinion**
We have audited the financial statements of Theatre for a Change Limited (the 'Company') for the year ended 31 March 2021, which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including the Charities SORP 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:
- give a true and fair view of the state of the charitable Company's affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' 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.
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**Theatre for a Change Limited**
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material
misstatement in the financial statements or a material misstatement of the other information. 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.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors' report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemptions in preparing the directors’ report.
## **Responsibilities of directors**
As explained more fully in the Directors' responsibilities statement on page 1, the directors 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 directors 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 directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related
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**Theatre for a Change Limited**
to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
## **Auditors' responsibilities for the audit of the financial statements**
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 Auditors' 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.
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the company and the sector in which it operates, we identified the principle risks of non-compliance with laws and regulations related to charitable companies and the application of charitable funds. We also considered those laws and regulations which have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities SORP (FRS 102).
Through enquiry of management we gained an understanding of their relevant laws and regulations; the entity’s policies and procedures regarding compliance; and how they identify, evaluate and account for litigation claims. We understand that the company complies with the framework through having in place robust procedures and policies and by outsourcing and taking external professional legal, tax and accounting advice on relevant specialist functions and areas.
The senior statutory auditor led a discussion with all members of the engagement team regarding the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:
- Manipulation or error in the calculation of deferred and accrued income leading to the overstatement or understatement of net income;
- Manipulation or error in the classification of income leading to the under or overstatement of unrestricted or restricted funds.
- Manipulation or error in the use of funds leading to expenditure which is not in accordance with the charitable company’s objectives.
The procedures we carried out to gain sufficient appropriate audit evidence in the above areas included:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
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**Theatre for a Change Limited**
control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
- Identifying and testing journal entries.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
## **Use of our report**
This report is made solely to the Company's members 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 Company's members those matters we are required to state to them in an Auditors' 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 Company and the Company's members for our audit work, for this report, or for the opinions we have formed.
Ian Rowe (Senior statutory auditor) for and on behalf of **Greenback Alan LLP** Chartered Accountant Statutory Auditor 89 Spa Road London SE16 3SG
Date:
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**Theatre for a Change Limited**
## **Statement of Financial Activities (including income and expenditure account) for the year ended 31 March 2021**
|**Notes**
**Unrestricted**
**Funds**
**Restricted**
**Funds**
**£**
**£**
**Income:**
Grants and donations
2
20,165
847,628
Earned from charitable
activities
3
5,968
-
_______
________
**Total income**
26,133
847,628
**Expenditure:**
Expenditure on charitable
activities
4
1,728
734,318
Costs of raising funds:
4
Fundraising costs of grants
and donations
11,597
-
_______
_______
**Total expenditure**
13,325
734,318
**Net income/(expenditure)**
**and net movement in funds**
**for the year**
12,808
113,310
**Reconciliation of funds**
Total funds brought forward
93,123
51,135
**Total funds carried forward**
105,931
164,445|**Total**
**Funds**
**Total**
**Funds**
**2021**
**2020**
**£**
**£**
867,793
667,603
5,968
41,235
________
________
873,761
708,838
736,046
808,407
11,597
34,752
_______
_______
747,643
843,159
126,118
(134,321)
144,258
278,579
270,376
144,258|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities. 2020 comparative analysis of funds – see note 15.
The notes on pages 17 to 25 form part of these financial statements.
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**Theatre for a Change Limited**
## **Balance Sheet as at 31 March 2021**
|**Notes**
**Current assets**
Debtors
Cash at bank and in hand
8
9
**Current liabilities**
Creditors falling due within one year
10
**Net current assets**
**Non current liabilities**
Creditors due after more than one year
11
**Total assets less current liabilities**
**The funds of the charity:**
**Unrestricted income funds**
12/13
**Restricted income funds**
12/13
**Total charity funds**|**2021**
£
247,854
453,587
701,441
(183,438)
518,003
(247,627)
270,376
105,931
164,445
270,376|**2020**
£
217,177
185,755
402,932
(11,047)
391,885
(247,627)
144,258
93,123
51,135
144,258|
|---|---|---|
||||
The directors have prepared the charitable company’s financial statements in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and authorised for issue by the directors on 22 June 2021 and signed on their behalf by:
Signed K Chaston
Name: KAY CHASTON, Chair of directors Registered number: 04913606
The notes on pages 17 to 25 form part of these financial statements.
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**Theatre for a Change Limited**
## **Statement of cash flows for the year ended 31 March 2021**
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|**Net cash flows from operating activities:**|||
|Net (expenditure)/ income for the reporting period as per the|126,118|(134,321)|
|statement of financial activities|||
|Increase in debtors|(30,677)|(50,137)|
|(Decrease)/increase in creditors|172,391|(1,062)|
||_______|_______|
|Net cash provided by (used in) operating activities and|267,832|(185,520)|
|change in reporting period|||
|Cash and cash equivalents at the beginning of the reporting|185,755|371,275|
|period|_______|_______|
|**Cash and cash equivalents at the end of the reporting**
**period**|453,587|185,755|
The notes on pages 17 to 25 form part of these financial statements.
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**Theatre for a Change Limited**
## **Notes forming part of the financial statements for the year ended 31 March 2021**
## **1. Accounting policies**
The principal accounting policies adopted, judgements and key sources of estimation and uncertainty in the preparation of the financial statements are as follows:
## a) Basis of preparation
The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and the Companies Act 2006.
Theatre For A Change Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## b) Income recognition policies
Income including consultancy fees is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
## c) Donated services and facilities
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
17
**Theatre for a Change Limited**
**Notes forming part of the financial statements (continued) for the year ended 31 March 2021**
## **d) Resources expended**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of generating funds comprise the costs associated with attracting voluntary income and those incurred in trading activities that raise funds.
- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
- Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
## e) Allocation of support costs
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include finance, office costs and governance costs which support the Charity’s activities.
## f) Taxation
The company is a registered charity, and therefore is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
- g) Fund accounting
Funds held by the charity are either:
- _Unrestricted general funds –_ these are funds which can be used in accordance with the charitable objects at the discretion of the directors.
- _Designated funds –_ these are funds set aside by the directors out of unrestricted general funds for specific future purposes or projects.
- _Restricted funds –_ these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
18
**Theatre for a Change Limited**
Notes forming part of the financial statements (continued) **for the year ended 31 March 2021**
## h) Creditors and provisions
Creditors and provisions are recognised where the charitable company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party once the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## i) Financial instruments
The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## j) Going concern
Following an assessment by the directors, they are of the view that the charitable company is able to continue as a going concern and the accounts have been prepared on this basis.
## **2. Grants and donations**
||**Unrestricted**|**Restricted**|**Total funds**|**Unrestricted**|**Restricted**|**Total funds**|
|---|---|---|---|---|---|---|
||**funds**|**funds**|**2021**|**funds**|**funds**|**2020**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Anonymous donors||170,961|170,961|-|-|-|
|Dept for International|||||||
|Development||474,142|474,142|-|492,027|492,027|
|The Evan Cornish Foundation||7,000|7,000|-|-|-|
|Medicor Foundation||158,675|158,675|-|125,000|125,000|
|Mercury Phoenix|-|15,000|15,000|-|-|-|
|Charles Hayward Foundation|--|-|-|-|15,000|15,000|
|The Rhododendron Trust|-|-|-|-|500|500|
|The Oak Foundation|-|19,250|19,250|19,500|-|19,500|
|Government grant|10,000|-|10,000|-|-|-|
|Donated services|6,500||6,500|6,500|-|6,500|
|Donations|3,665|2,600|6,265|6,421|2,655|9,076|
||20,165|847,628|867,793|32,421|635,182|667,603|
19
**Theatre for a Change Limited**
## **Notes forming part of the financial statements (continued) for the year ended 31 March 2021**
|**3.**|**Earned from charitable activities**|**2021**|**2020**|
|---|---|---|---|
|||**£**|**£**|
||Consultancy fees|5,968|41,235|
|**4.**|**Analysis of expenditure**|||
|Grants payable to Malawi
Grants payable to Ghana
Staff costs (see note 7)
Direct costs
Finance
Exchange loss
Office rent
General office costs
Support costs
Governance costs
**Total expenditure 2021**
**Total expenditure 2020**|**Raising**
**funds**
**Charitable**
**activities**
**Governance**
**Support**
**Total**
**2021**
Total
2020
**£**
**£**
**£**
**£**
-
503,385
-
-
**503,385**
540,378
-
30,473
-
-
**30,473**
30,161
9,512
130,330
3,957
-
**143,799**
142,236
284
26,358
-
-
**26,642**
65,670
-
-
6,500
18,435
**24,935**
25,020
-
2,380
-
-
**2,380**
7,982
-
-
-
9,708
**9,708**
24,270
-
-
-
6,321
**6,321**
7,442
**9,796**
**692,926**
**10,457**
**34,464**
**747,643**
843,159
1,090
33,374
-
(34,464)
-
-
711
9,746
(10,457)
-
-
-
**11,597**
**736,046**
**-**
**-**
**747,643**
-
**34,752**
**808,407**
**-**
**-**
**-**
843,159|
|---|---|
Support and Governance costs are allocated on the basis of staff costs.
Expenditure on charitable activities was £736,046 (2020: £808,407) of which £734,318 (2020: £797,719) was restricted and £1,227 (2020: £10,688) was unrestricted.
## **5. Grants payable in furtherance of the charity’s objects**
|Theatre for a Change Malawi
The Women of Dignity Alliance|**2021**
**£**
503,385
30,473
__________________
533,858|**2020**
**£**
540,378
30,161
__________________
570,359|
|---|---|---|
Theatre for a Change Malawi audited financial statements are available from the British Council, PO Box 30222, Capital City, Lilongwe 3, Malawi.
20
**Theatre for a Change Limited**
## **Notes forming part of the financial statements (continued) for the year ended 31 March 2021**
## **6. Employees**
There were three full time UK-based employees during the year (2020: 3).
## **7. Analysis of staff costs and directors’ remuneration and expenses**
|Salaries
Social security costs
Pension costs|**2021**
**£**
129,145
9,685
4,969
143,799|**2020**
**£**
123,450
10,974
7,812
142,236|
|---|---|---|
No employees had remuneration in excess of £60,000 in either 2021 or 2020.
Directors were not paid or received any other benefits from employment with the company in the year, neither were they reimbursed expenses during the year for travel expenses (2020: nil). No director received payment for professional or other services supplied to the company (2020: nil).
## **8. Debtors**
|Prepayments and accrued income
Other debtors
**9.**
**Cash and cash equivalents**
Cash at bank and in hand
**10.**
**Creditors: amounts falling due within one year**
Accruals
Deferred income
PAYE and NIC liabilities|**2021**
**£**
244,799
3,055
247,854
**2021**
**£**
453,587
**2021**
**£**
8,161
172,747
2,530
183,438|**2020**
**£**
183,502
33,675
217,177
**2020**
**£**
185,755
**2020**
**£**
6,801
-
4,246
11,047|
|---|---|---|
||||
21
**Theatre for a Change Limited**
## **Notes forming part of the financial statements (continued) for the year ended 31 March 2021**
## **11. Creditors: amounts falling due after one year**
|DFID Mobilisation grant|**2021**
**£**
247,627|**2020**
**£**
247,627|
|---|---|---|
The above amount of £247,627 represents monies loaned in respect of the DFID grant via Link Community Development International (LINK). The term of the grant covers five years from August 2018 to 2023 and the loan is due to be repaid in instalments during the last year.
## **12a. Analysis of charitable funds**
||**Balance at**|**Incoming**|**Resources**|**Balance at**|
|---|---|---|---|---|
||**31 Mar 2020**|**resources**|**expended**|**31 Mar 2021**|
||**£**|**£**|**£**|**£**|
|Analysis of unrestricted fund|||||
|movements|||||
|General fund|93,123|26,133|(13,325)|105,931|
|Analysis of restricted fund|||||
|movements|||||
|Malawi fund|22,913|654,944|(621,968)|55,889|
|Ghana fund|28,222|21,723|(47,685)|2,260|
|New Partnerships Programme|-|170,961|(64,665)|106,296|
|Total restricted funds|51,135|847,628|734,318|164,445|
The Malawi and Ghana funds were established after gifts were received to further the development of projects in Africa.
The New Partnerships Programme funds work to the transfer our methodology onto an on line learning platform.
22
**Theatre for a Change Limited**
## **Notes forming part of the financial statements (continued) for the year ended 31 March 2021**
## **12b. Analysis of charitable funds – comparative**
||**Balance at**|**Incoming**|**Resources**|**Transfer**|**Balance at**|
|---|---|---|---|---|---|
||**31 Mar 2019**|**resources**|**expended**||**31 Mar 2020**|
||**£**|**£**|**£**|**£**|**£**|
|Analysis of||||||
|unrestricted fund||||||
|movements||||||
|General fund|64,907|73,656|(45,440)||93,123|
|Analysis of||||||
|restricted fund||||||
|movements||||||
|Malawi fund|158,086|610,182|(745,355)||22,913|
|Ghana fund|55,586|25,000|(52,364)||28,222|
|Total restricted||||||
|funds||||||
||213,672|635,182|(797,719)||51,135|
The Malawi and Ghana funds were established after gifts were received to further the development of projects in Africa.
## **13a. Analysis of net assets between funds**
|**General**
**Restricted**
**fund 2021**
**funds 2021**
**£**
**£**
Cash at bank
Net current assets
Long term liabilities
113,567
(7,636)
-
340,020
72,052
(247,627)
**105,931**
**164,445**|**Total**
**2021**
**£**
453,587
64,416
(247,627)
**270,376**|
|---|---|
|||
23
**Theatre for a Change Limited**
## **Notes forming part of the financial statements (continued) for the year ended 31 March 2021**
## **13b. Analysis of net assets between funds - comparative**
|**General**
**Restricted**
**fund 2020**
**funds 2020**
**£**
**£**
Cash at bank
Net current assets
Long term liabilities
94,658
(1,535)
-
91,097
207,665
(247,627)
**93,123**
**51,135**|**Total**
**2020**
**£**
185,755
206,130
(247,627)
144,258|
|---|---|
|||
## **14. Legal status of the company**
The charity is a company limited by guarantee and has no share capital, incorporated in the United Kingdom and registered in England & Wales. Every member of Theatre for a Change undertakes to contribute to the assets of Theatre for a Change in the event of a winding-up while he/she is a member, or within one year after he/she ceases to be a member, for payment of the liabilities of Theatre for a Change contracted before he/she ceases to be a member, such amounts as may be required not exceeding £1.
24
**Theatre for a Change Limited**
**Notes forming part of the financial statements (continued) for the year ended 31 March 2021**
## **15. Statement of Financial Activities - comparative for the year ended 31 March 2020:**
||**Notes**|**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|---|
|||**Funds**|**Funds**|**Funds**|
|||||**2020**|
|||**£**|**£**|**£**|
|**Income:**|||||
|Grants and donations|2|32,421|635,182|667,603|
|Earned from charitable activities|3|41,235|-|41,235|
|||_______|________|________|
|**Total income**||73,656|635,182|708,838|
|**Expenditure:**|||||
|Expenditure on charitable activities||10,688|797,719|808,407|
|Costs of raising funds:|||||
|Fundraising costs of grants and||34,752|-|34,752|
|donations|||||
|||______|_______|_______|
|**Total expenditure**|4|45,440|797,719|843,159|
|**Net income/(expenditure) and net**|||||
|**movement in funds**|||||
|**for the year**||28,216|(162,537)|(134,321)|
|**Reconciliation of funds**|||||
|Total funds brought forward||64,907|213,672|278,579|
|**Total funds carried forward**||93,123|51,135|144,258|
25