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2021-03-31-accounts

Company number: 5369193 Charity number: 1109053

Independent Cinema Office

(Limited by Guarantee)

Report and Financial Statements

For the year ended 31 March 2021

Independent Cinema Office

Contents

Page
Reference and administrative details 2
Trustees’ report
Objectives and activities 3-5
Achievements and performance 5-8
Financial review 8-10
Plans for the future 10
Structure, governance and management 10-12
Independent Auditor’s report 13-16
Statement of Financial Activities (including Income and Expenditure Account) 17
Balance Sheet 18
Statement of cash flows 19
Notes to the Financial Statements 20-31

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Independent Cinema Office

Reference and administrative details

Charity registration number: 1109053 Company registration number: 5369193

Registered office and operational address:

Independent Cinema Office Unit 9 Bickels Yard, 151-153 Bermondsey Street London SE1 3HA

Trustees

The Directors of the charitable company (“the charity”) are its trustees for the purpose of charity law and throughout this report are collectively referred to as trustees.

Trustees who served during the year and up to the date of this report were as follows:

Sudha Bhuchar Thea Burrows (appointed 11 June 2020) Julian Connerty Miles Ketley (Deceased 18 October 2020) Susan Lovell George Sawtell Simon Ward Dorothy Wilson MBE FRSA (Chair)

Key management personnel:

Director/CEO – Catharine Des Forges Head of Cinemas – David Sin Head of Operations – Becky Clarke Head of Partnerships & Development – Hatice Özdemirciler Head of Finance – Angela Blanchard

Bankers:

Barclays Bank Plc, Leicester LE87 2BB

Solicitors:

Bates, Wells & Braithwaite, Cheapside House, 138 Cheapside, London EC2V 6BB

Auditors:

Cooper Parry Group Limited Statutory Auditors Park View One Central Boulevard Blythe Valley Business Park Solihull B90 8BG

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Independent Cinema Office

Trustees’ report

The trustees present their report and the audited financial statements for the year ended 31 March 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The reference and administrative information set out on page 2 form part of this report. The financial statements comply with Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association 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).

Objectives and activities

Purposes and aims

The objects of the charity are to promote all purposes recognised as charitable under the laws of England and Wales from time to time, in particular, without prejudice to the generality, the promotion, maintenance, improvement and advancement of education of the public by the encouragement of the knowledge and appreciation of the arts of film and video.

Aims

The ICO’s mission is to stimulate an open, thriving and challenging film culture. We have six overarching goals:

Activities

The principal activity of the charity during the year was to act as the national support organisation for independent cinemas. Our key activities are film programming advice, training, distribution and consultancy. We also manage Film Hub South East, part of British Film Institute’s (BFI) Film Audience Network (FAN), The trustees review the aims, objectives and activities of the charity each year.

Public Benefit

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance on public benefit: running a charity (PB2) and fee charging. The ICO relies on grants and the income from fees and charges to cover its operating costs. In setting the level of fees, charges and concessions, the trustees give careful consideration to the accessibility of its activities.

The charity has a series of aims which foreground public benefit as a key outcome of its activities. These include:

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Independent Cinema Office

Diversity

The ICO was established in 2003 to ensure that a wide range of stories reached a wider range of audiences and we have put diversity at the heart of what we do ever since. However, the murder of George Floyd in the USA in May 2020 and the subsequent worldwide Black Lives Matter protests sparked crucial internal conversations about our work, our influence and how we use our power.

As an organisation with a predominantly white staff and Board of Trustees, we recognise our own position of privilege, our shortcomings and that we don’t have all the answers. We have been asking ourselves urgent questions about our organisational culture, how to scrutinise our assumptions and how structural racism operates. Working with critical friends external to our organisation but experienced in organisational change and anti-racist work in the arts, we have developed an Equality, Diversity and Inclusion action plan (EDI plan), the first phase of which was published on our website in March 2021. Black Lives Matter – ICO Equality, Diversity and - Inclusion action plan Independent Cinema Office

We have committed to publishing updates on our progress twice a year and encourage feedback, ensuring the plan will continue to evolve. Currently our EDI plan specifically focuses on addressing racism; however, we take an intersectional view of matters relating to equality and inclusion and understand an individual’s multifaceted social and political identities (race, class, gender, disability, sexuality, religion and others) overlap to influence their experiences of racism.

We established a number of actions to arrive at this point;

We have taken a number of immediate actions including;

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Independent Cinema Office

The plan includes a wide ranging series of commitments and objectives that we will be working towards during 2021-22.

Achievements and performance

This report looks at the charity’s achievements and the outcomes of its work in the reporting period.

Programming

Programming is at the heart of the Independent Cinema Office. We support cinemas all over the UK, whether they’re in major cities or rural communities, to access a cultural film offering which will take their venue to the next level.

In 2020-21, we worked with 24 client venues across the UK, helping them navigate long periods of closure and the extreme circumstances the pandemic brought. We helped them establish virtual programme offerings and communicated distributors’ releases dates and changes, often redoing programmes at short notice. We also supported our client cinemas in material ways by waiving fees through periods of closure and halving fees when they had to operate with social distancing.

We programmed the first online edition of Borderlines Film Festival, which saw admissions of 15,814 with tickets purchased across 800 different postcodes.

Towards the end of the year, we acquired five new programming clients – cinemas in Chichester, Northampton, Reading, Totnes and Wirksworth – and are delighted to begin 202122 with a record client list of 29.

Screening Days

This year, we moved our Screening Days online in response to COVID-19. After surveying our email subscriber list, we re-designed the events and held two virtual Screening Days in December 2020 and March 2021, streaming films online and running capacity-building sessions alongside. They were our two highest attended events ever.

Total figures for the Screening Days programme this year:

As well as easing physical access to the events by holding them online and reducing fees to reflect our lowered event costs, we also increased accessibility by making all films available with subtitles for Deaf/hard of hearing audiences.

We aim to return to in-person events when possible, but due to the success of these online editions, also plan to incorporate some online elements into all future Screening Days.

Training

The ICO’s training portfolio offers film exhibition professionals the opportunity to benefit from high-level knowledge, ensuring our sector is successful, inclusive and progressive. Following the onset of COVID-19, we rapidly evolved our offer to support a sector facing unprecedented challenges, moving all training courses and professional development opportunities online.

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In 2021-21:

We delivered the 10[th] edition of our internationally acclaimed Developing Your Film Festival course live online to 20 film festival professionals from 13 countries over the course of five weeks with speakers from festivals including Toronto, New Horizons, Rotterdam and Vilnius International Film Festivals. 100% of participants said they would recommend the course.

With financial support from the BFI Film Audience Network, we designed and delivered the UK Film Festival Roundtable . Staff from 15 UK festivals took part in six interactive group sessions which included discussions on strategic planning, audience development, press and PR, sponsorship and partnerships and how to negotiate the challenges of COVID-19.

We partnered with arts sustainability charity Julie’s Bicycle to deliver Making Cinemas Environmentally Sustainable , a series of online training workshops to increase film exhibitor awareness of environmental impacts and paths to in-venue sustainability. Over 100 cinema and film festival workers took part.

We held a live online version of Data-Driven Marketing , attended by 18 participants hailing from all regions of the UK, as well as offering a pre-recorded version of the same course on our online learning platform. We made all courses on our online learning platform free to access at the start of the pandemic and ran promotions throughout the year to ease accessibility.

With support from ScreenSkills and BFI FAN, we presented FEDS Elevate: Leadership Programme for Cinema Professionals . FEDS Elevate was designed to support and develop alumni of our flagship FEDS programme (aimed at diversifying the film exhibition workforce), helping them to progress into decision-making roles and thereby embedding industry change.

Finally, we concluded the 3[rd] iteration of our Women’s Leadership programme, a demonstrably successful intervention aimed at women working in senior roles and designed to achieve more equal representation at the highest levels. Over six months, eight participants were supported through teaching, coaching and mentoring sessions to identify a career progression path and create a personal development programme.

Advice and Information

We seek to democratise access to information about the film industry and how to succeed in it, providing advice, support, blog posts and web guides for people who have never shown a film as well as long-established independent venues and workers throughout the sector.

This year, we answered a huge array of enquiries around COVID-19, directing exhibitors towards funding, information and resources as well as helping them show films in new ways, such as via drive-in screenings or online.

We developed our blog and online resources to ensure they not only offered comprehensive COVID-19 support, but also inspiration for those hoping to use the lockdown as a period of evaluation and future thinking. We increased the number and frequency of our blog posts to promote sector support and maintain communications with those isolated at home. We focused our blog strategy on organisational renewal and anti-racism and began a ‘Manifesto’ series calling for a reinvention of the way we think of cinema. We delivered a series on Black cinema and added a prominent call for new contributors to our blog page.

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As well as collating information into practical online resources advising cinemas on how to cope with COVID-19, we launched four new downloadable online guides on marketing, audience development, film projection and good governance.

In addition, we continued to publish jobs on our free to use jobs board, with all roles added each day sent out in a daily email digest to subscribers.

In 2020-2021:

Film Hub Lead Organisation – South East

The ICO has managed Film Hub South East – one of the BFI Film Audience Network’s eight regional film hubs – since 2018. Throughout 2020-21, we supported our members both financially and strategically, helping them navigate an extremely challenging period. Early on, we refocused our work on helping members access enough emergency funding to survive.

In addition, we:

Distribution

While the number of films in distribution reaches a new high on an annual basis, the opportunity to see a true diversity of work is limited in the UK. The ICO’s distribution projects are a response to this. We focus on sharing films that make a cultural contribution to cinemas and expand the

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possibilities for UK audiences. Our special interest is in uncompromising new work, reissues of key works of world cinema and artists’ film.

In 2020-21, our planned distribution activities were limited by COVID-19. We began the year having just launched Second Sight , a national film tour created in association with LUX. Exploring the legacy, methods, aesthetic strategies and histories of the UK’s Black Film Workshop Movement, Second Sight incorporated key archive films from the 1980s with new commissions from contemporary film artists, created in response to the Workshop context.

Cinema screenings of the films were unfortunately limited by lockdown. However, we were able to make the films available for online and occasional in-venue screenings at sites across the UK throughout 2020, often accompanied by filmmaker Q&As.

Consultancy

Through consultancy, independent cinema operators can attain best practice at all stages of the cinema operation process, from feasibility study through to business planning and into cinema management, programming, audience development, fundraising, technical presentation and sustainability.

ICO consultancy is a fee-based service which can provide research and special reporting on the widest possible range of cinema related matters. In a year, the ICO fields over 300 enquiries and we have developed a repertoire of consultancy formats to respond to the variety of these enquiries in the most effective way – from advice sessions to the development of business or audience development plans, to full options appraisals or feasibility studies.

Due to COVID-19, this year there was an absence of larger, more typical consultancy projects, indicating that there was little opportunity to initiate long-term projects in 2020-21 and that many of the projects the ICO had contributed to prior to this period had been put on hold.

However, we advised several cinemas and festivals via one-to-one surgeries and general advice sessions, most often to help think through short-term practical issues and industry changes necessitated by the pandemic. ICO consultancy also supported several film festivals to deliver their events online and explore the long-term potential for online programming even after they have returned as venue-based events.

Financial review

In the year ended 31 March 2021 ICO’s income derived from grant income and fees for programming, courses, screening days, consultancy and film hire. In addition, we made use of the government’s COVID support through the claiming of furlough. The charity’s main expense is staff costs. Other costs relate to expenses in running courses and grant giving.

Income decreased by just under £240,000 in the year ended 31 March 2021. Many of the activities planned for the year were changed resulting in a reduction in expenditure.

Overall net income for the year was £88,708 of which £49,847 related to restricted funds and £38,861 related to unrestricted funds.

Principal funding sources

Our principal sources of funding are from the British Film Institute. One of the BFI’s main objectives is to promote access to and appreciation of the widest possible range of British and world cinema so it is a natural partner of the ICO.

Reserves policy and going concern

The reserves policy is reviewed by the trustees on a regular basis. Currently the reserves policy seeks to have, at the minimum, three months running costs available to enable the charity to seek alternative or additional funding, if necessary. This equates to £240,000 (2020: £230,000). At

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31 March 2021 free reserves were £126,925. This amount is represented mainly by cash at bank. The ICO has budgeted for a small surplus in 2021/22.

Total funds held at the 31 March 2021 were £830,368 of which £259,390 is restricted funds and £570,978 unrestricted funds. Included in unrestricted funds are designated amounts of £444,053. The fixed assets fund represents the net book value of fixed assets after accounting for the loan outstanding. The sustainability fund is an amount set aside by the charity to ensure a managed closure of the charity in the event that funding ceases.

At the date of signing these financial statement the trustees have considered the information available to them with regards to the effect of COVID 19 on the charity and do not believe it will affect the charity’s ability to continue to operate for the foreseeable future. As with many organisations there have been short term practical difficulties which we have addressed by putting in systems to enable staff to work from home. We have discussed the activities we will deliver and a provisional timetable with our funders and have utilised government assistance such as the furlough scheme. Due to the level of our reserves and the security of income streams, especially from the British Film Institute, who have been extremely supportive, we are well placed to continue operating. Please see accounting policy 1 c) for further details.

Investment policy

The trustees may invest the charity’s money not immediately required for its objects in any investments, securities or property. The current policy is to keep available funds in interestbearing deposit accounts.

Fundraising

The Charity does not engage in public fundraising and does not use professional fundraisers or commercial participators. The Charity nevertheless observes and complies with the relevant fundraising regulations and codes. During the year there was no non-compliance of these regulations and codes and the Charity received no complaints relating to its fundraising practice.

Code of Governance

The Independent Cinema Office aims to maintain good governance practices in line with the Charity Governance Code and undertook a governance workshop with the National Council for Voluntary Organisations in April 2021. A workplan was produced to improve performance in some areas. Many of these have been undertaken at time of writing.

Principal risks and uncertainties

The high-level risks and management strategy are as follows:

Risks Risk Management Risk Management
Nature of risk Gross risk Strategy Strength Net risk
COVID-19 – the charity
may close		 High Budget and cash flow have been
amended to reflect reduced earned
income. ICO continued to make use of
the Government Furlough Scheme.		 Strong High
Funding not renewed –
the charity may close		 High Staff on fixed-term contracts gives a
degree
of
flexibility.
Consider
opportunities in new funding bids.
Explore
new
relationships
and
opportunities.
Invest
in
marketing
consultancy
services.
Ensure
applications for funding are dealt with
in a timely manner.		 Strong High

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Risks Risk Management Risk Management
Nature of risk Gross risk Strategy Strength Net risk
Property loan – facility
may be withdrawn		 High Quarterly
management
accounts,
cash flow, regular review of bank
covenants.		 Strong Low

Plans for the future

2021-22 sees a lot of uncertainty for the Exhibition sector. The UK ended many of the COVID restrictions for social gatherings which affected cinemas. However, we still have a number of client cinemas which are not open and audiences who have become accustomed to watching films online, as well as organisations who have come to terms with delivering programmes which adhere to a hybrid model.

We ourselves have become adept at delivering our events and courses online and 2021-2 sees plans for Screening Days online. We have delivered Cultural Cinema Exhibition course (our flagship training course) online for the first time and continue to deliver our Core Skills seminars, Hub capacity building sessions and NETWORK events for filmmakers and new talent online.

We will plan for the return to physical spaces in the autumn but are mindful that the situation is volatile and may change. We are also piloting a new virtual space, the ICO Cinema of Ideas, which sees us programming an online platform with an ambitious cultural programme of screenings and events which we will make available to our client cinemas free of charge, with an advantageous income split for them. This will enable venues who have received public funding via the governments Cultural Recovery Fund to deliver a wider range of programming to their audiences without the provision of additional resources or financial risk at a time of great need and uncertainty.

We will also be publishing new guides on Governance and Programming for exhibition organisations. The pandemic demonstrated the disproportionate effects of crisis on different groups in the UK and highlighted the inequalities present in the public arts sector. There have been a number of very public scandals in the sector ranging from bullying to sexual harassment to the lack of protections and low pay of Front Of House staff. We will continue to work with partners for an independent ombudsman for the film industry to protect workers and deliver a number of workshops around our Governance guide to inform and support those organisations who would like to make their own structures more rigorous.

We will continue to work on our anti-racist commitments, deliver our final DYFF course with EU funding and seek to raise funds for a series of new artists commissions about the national trails in the South East of England, following on from our Second Sight project. Internally we have interrogated our own governance and after a workshop facilitated by the NCVO are planning a new recruitment drive for a more inclusive board of Trustees during the next year. In addition, our new HR consultant has helped us to overhaul our recruitment processes and procedures endeavouring to make them more inclusive which we hope will help us attract a workforce that is more reflective of the communities we serve.

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 18 February 2005 and registered as a charity on 14 April 2005. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 12 to the accounts. As set out in the Articles of Association the trustees are appointed by resolution of the trustees. Recruitment for new trustees is openly advertised with full job descriptions and interviews carried out prior to taking up office.

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New trustees are sent an extensive information pack which details the responsibility of trustees and their legal obligations. There are two subcommittees, Finance and Personnel & HR which make recommendations to the wider board. Trustees are also expected to attend Board Away days where more strategic discussions concerning the organisation can take place.

Policies and procedures adopted for the induction and training of trustees are ongoing and incorporated indirectly into the regular board meetings.

The ICO is managed by the board of Directors/Trustees. Day-to-day management is delegated to the Director and the senior management team as follows:

Director/CEO – Catharine Des Forges Head of Cinema – David Sin Head of Operations – Becky Clarke Head of Training and Professional Development – Hatice Özdemirciler Head of Finance – Angela Blanchard

We have developed a formal framework with criteria for setting pay/remuneration for key management personnel which has included the establishment of a Personnel & HR subcommittee which makes recommendations to the wider board of trustees.

Organisations we currently work with who co-operate with our charitable objectives include BFI, Cinema for All, a number of our key client cinemas, ScreenSkills, the National Film and Television Archive and Into Film.

Trustees’ responsibilities statement

The trustees (who are also directors of Independent Cinema Office for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, 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 charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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auditor, have taken all steps that they ought to have individually taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Small company exemptions

This report is prepared in accordance with the provisions of the Companies Act 2006 relating to small companies.

Auditors

Cooper Parry Group Limited was reappointed in the year and has expressed its willingness to continue in office.

This report was approved by the Board of Trustees on 28 September 2021 and signed on its behalf by

Dorothy Wilson MBE FRSA Chair

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Independent Auditor’s Report to the Members of Independent Cinema Office

Opinion

We have audited the financial statements of Independent Cinema Office (“the charitable 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 Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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Independent Auditor’s Report to the Members of Independent Cinema Office (continued)

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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page 11, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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Independent Auditor’s Report to the Members of Independent Cinema Office (continued)

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

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:

Our assessment focussed on key laws and regulations the charitable company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, Charities Act 2011, taxation legislation, data protection and employment legislation.

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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Independent Auditor’s Report to the Members of Independent Cinema Office (continued)

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 auditor’s report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 Part 16 of the Companies Act 2006 and to the charitable company’s trustees as a body in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members and trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Glen Bott FCA

Senior Statutory Auditor for and on behalf of:

Cooper Parry Group Limited

Chartered Accountants and Statutory Auditor One Central Boulevard Park View Blythe Valley Park Solihull West Midlands B90 8BG

Date: 01 October 2021

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Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

2021 2020
Unrestricted Restricted Total Unrestricted Restricted Total
Note £ £ £ £ £ £
Income and endowments from:
Donations 2 139,433 10,000 149,433 8,950 - 8,950
Charitable activities
Programming 3 32,391 335,268 367,659 205,319 364,527 569,846
Advice, information, support & training 3 5,195 347,754 352,949 250 425,418 425,668
Film Hub South East 3 - 542,687 542,687 4,569 500,000 504,569
Distribution 3 93 1,832 1,925 4,285 180,551 184,836
Advocacy 3 - 43,369 43,369 - - -
Consultancy 3 3,055 69,028 72,083 14,148 46,734 60,882
Other trading activities 4 - - - 13,308 - 13,308
Investments - bank interest 5 239 - 239 861 - 861
Other income 6 - - - 1,371 - 1,371
Total income 180,406 1,349,938 1,530,344 253,061 1,517,230 1,770,291
Expenditure on:
Charitable activities
Programming 7 17,990 271,466 289,456 94,201 363,692 457,893
Advice, information, support & training 7 50,117 311,459 361,576 12,006 397,743 409,749
Film Hub South East 7 53,944 584,314 638,258 24,735 490,815 515,550
Advocacy 7 10,383 41,754 52,137 - - -
Distribution 7 3,361 26,064 29,425 12,763 237,183 249,946
Consultancy 7 6,703 64,081 70,784 5,565 46,807 52,372
Other trading activities 7 - - - 13,308 - 13,308
Total expenditure 142,498 1,299,138 1,441,636 162,578 1,536,240 1,698,818
Net income / (expenditure) for the year 9 37,908 50,800 88,708 90,483 (19,010) 71,473
Transfers between funds 21 953 (953) - (21,759) 21,759 -
Net movement in funds 38,861 49,847 88,708 68,724 2,749 71,473
Reconciliation of funds:
Total funds brought forward 532,117 209,543 741,660 463,393 206,794 670,187
Total funds carried forward 21 570,978 259,390 830,368 532,117 209,543 741,660

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 21 to the financial statements.

The notes on pages 20 to 31 form an integral part of these financial statements.

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Independent Cinema Office

Company no. 5369193

Balance sheet

As at 31 March 2021

As at 31 March 2021 As at 31 March 2021
Note
£
Fixed assets:
15
Current assets:
16
85,483
677,015
762,498
Liabilities:
17
(331,066)
19
20a
21a
444,053
126,925
Total unrestricted funds
Cash at bank and in hand
Tangible assets
Total assets less current liabilities
The funds of the charity:
Net current assets
Restricted income funds in surplus
General funds
Total charity funds
Debtors
Unrestricted income funds:
Designated funds
Creditors: amounts falling due within one year
Creditors: Amounts falling due after more than one
year
Total net assets
Restricted income funds in deficit		 2021
£
1,344,932
431,432		 £
263,584
591,603		 2020
£
1,370,595
377,686
762,498
(331,066)		 855,187
(477,501)
444,053
126,925		 420,283
111,834
1,776,364
(945,996)		 1,748,281
(1,006,621)
830,368 741,660
262,390
(3,000)		 211,173
(1,630)
259,390
570,978		 209,543
532,117
830,368 741,660

The trustees have prepared these accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

Approved by the trustees on 28 September 2021 and signed on their behalf by

Dorothy Wilson MBE FRSA Chair

The notes on pages 20 to 31 form an integral part of these financial statements.

18

Independent Cinema Office

Statement of cash flows

For the year ended 31 March 2021
£
£
189,717
239
(19,594)
(19,355)
Cash flows from financing activities:
Repayments of borrowing
(169,555)
Cash inflow from new borrowing
90,000
Net cash provided by/(used in) financing activities
(79,555)
90,807
591,603
(5,395)
677,015
Reconciliation of net income / (expenditure) to net cash flow from operating activities
2021
£
Net income for the reporting period
88,708
Depreciation charges
44,807
Loss on disposal of fixed assets
450
Interest from investments
(239)
Interest on bank loans
35,822
Foreign exchange losses / (gains)
5,395
Decrease / (increase) in debtors
178,101
(Decrease) / increase in creditors
(163,327)
Net cash provided by / (used in) operating activities
189,717
Analysis of changes in net debt
At 1 April
2020
Cash flows
£
£
Cash at bank and in hand
591,603
90,807
Loans falling due within one year
(32,991)
33,733
Loans falling due after more than one year
(1,006,621)
10,000
Total
(448,009)
134,540
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Change in cash and cash equivalents due to exchange rate movements
Net cash provided by/(used in) investing activities

2021
Cash flows from operating activities
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets		 £
£
219,132
861
(1,366,067)
(1,365,206)
(28,868)
1,050,000
1,021,132
(124,942)
715,644
901
591,603
2020
£
71,473
24,444
168
(861)
18,480
(901)
(88,789)
195,118
219,132
Other
changes
£
£
(5,395)
677,015
(50,625)
(49,883)
50,625
(945,996)
(5,395)
(318,864)
At 31 March
2021
2020
(28,868)
1,050,000
Other
changes
£
(5,395)
(50,625)
50,625
(124,942)
715,644
901
591,603
2020
£
71,473
24,444
168
(861)
18,480
(901)
(88,789)
195,118
189,717 219,132
Cash flows
£
90,807
33,733
10,000		 £
677,015
(49,883)
(945,996)
At 31 March
2021
(448,009) 134,540 (5,395) (318,864)

19

Independent Cinema Office

Notes to the financial statements

For the year ended 31 March 2021

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) (effective 1 January 2019) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements are prepared in Sterling, which is the functional currency of the charity, and rounded to the nearest £1.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

The charity meets the definition of a public benefit entity under FRS 102.

At the time of signing the accounts the trustees have considered the effect of COVID 19 on the going concern position, and consider that this does indicate that the charity will continue to operate for a period of at least 12 months from the date of signing these accounts due to the level of funding already secured with its key partners. At the balance sheet date the charity held significant cash balances. The charity has significant reserves, enough of which are unrestricted and are sufficient to absorb short-term in year deficits, if required. Government support is utilised, where it is appropriate to do so, and since the year end the Furlough scheme has been used. The financial forecasts prepared show that the charity will be able to pay its liabilities as they fall due. On this basis the trustees have prepared these financial accounts on a going concern basis.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from 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.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

e) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation 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 services and facilities are recognised on the basis of the value to the charity which is the amount the charity would have been willing to pay to obtain services or facilities equivalent economic benefit on the open market; a corresponding amount is then receognised in expenditure in the period of receipt.

f) Investment income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

g) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor and within the objects of the charity. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

20

Independent Cinema Office

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies (continued)

h) Expenditure and irrecoverable VAT

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 the obligation can be measured reliably. Expenditure is classified under the following activity headings:

 Expenditure on charitable activities includes the costs of delivering services and other educational activities undertaken to further the purposes of the charity and their associated support costs

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on the direct staff costs of each activity, of the amount attributable to each activity.

Programming 28.5%
Training 23.9%
Film Hub South East 37.1%
Advocacy 5.5%
Distribution 2.3%
Consultancy 2.7%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

j) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

k) Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated at the date of the transaction. All gains and losses on exchange are put through the income and expenditure account.

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £250. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Long leasehold property 2% straight line basis
Leasehold refurbishment 10% straight line basis
Fixtures, fittings & equipment 25% straight line basis
Database and website 25% straight line basis

m) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

n) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

21

Independent Cinema Office

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies (continued)

o) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and 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.

p) Financial instruments

The charity 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.

q) Pensions

The charity contributes to the personal pension schemes of some of its employees and from 1 November 2016 to SMARTPension, the ICO auto-enrolment scheme. The schemes and their assets are held by independent managers. The pension charge represents contributions due from the charity.

2 Donations

2
Donations
3
Training
Film Hub South East
BFI
MUBI
Film Hire
Sponsorship income
Training fees
Other income
Screening days income
Creative Europe Media
Programming
Income from charitable activities
Sponsorship income
Sub-total
BFI
Europa Cinemas
Contribution in kind
Furlough
Big Issue Invest
Other donations
Total
ScreenSkills
Sub-total
Venue income
Other income
BFI
Third party contributions
British Council
Course fees		 Unrestricted
£
139,329
-
104		 £
-
10,000
-
Restricted		 2021
Total
£
139,329
10,000
104		 2020
Total
£
8,670
-
280
139,433 10,000 149,433 8,950
Unrestricted
£
-
18,891
-
500
13,000
-		 £
335,268
-
-
-
-
-
Restricted		 2021
Total
£
335,268
18,891
-
500
13,000
-		 2020
Total
£
354,170
167,613
9,357
7,977
30,287
442
32,391
-
-
-
-
-
5,195
-		 335,268
51,610
35,558
175,285
5,062
40,000
23,359
16,880		 367,659
51,610
35,558
175,285
5,062
40,000
28,554
16,880		 569,846
45,836
74,149
161,135
5,258
40,000
69,315
29,975
5,195
-
-
-
-
-
-		 347,754
536,362
6,250
-
-
-
75		 352,949
536,362
6,250
-
-
-
75		 425,668
500,000
-
2,133
1,000
1,328
108
- 542,687 542,687 504,569

22

Independent Cinema Office

Notes to the financial statements

For the year ended 31 March 2021

Income from charitable activities (continued)
Distribution
BFI
Arts Council England
Heritage Lottery Fund
Advocacy
BFI
Consultancy
BFI
Film hire and print transport
Sub-total
Contribution in kind
Total income from charitable activities
Sub-total
Fees
Other income
Other income
Sub-total		 Unrestricted
£
-
-
-
93
-
-		 2021
Total
£
£
9
9
-
-
-
-
1,823
1,916
-
-
-
-
1,832
1,925
43,369
43,369
43,369
43,369
69,028
69,028
-
3,055
-
-
69,028
72,083
1,339,938
1,380,672
Restricted		 2020
Total
£
106,573
27,000
(802)
40,637
10,000
1,428
93
-		 1,832
43,369		 1,925
43,369		 184,836
-
-
-
3,055
-		 43,369
69,028
-
-		 43,369
69,028
3,055
-		 -
-
14,148
46,734
3,055 69,028 72,083 60,882
40,734 1,339,938 1,380,672 1,745,801

The proportion of income from charitable activities derived from outside the UK amounted to 3% (2020-7%).

4 Other trading activities

4
Other trading activities
5
6
Foreign exchange surplus
Other
Other income
Bank interest
Income from investments
Rent		 Unrestricted
£
-		 2021
Total
£
£
-
-
2021
Total
£
£
-
239
2021
Total
£
£
-
-
-
-
-
-
Restricted
Restricted
Restricted		 2020
Total
£
13,308
Unrestricted
£
239		 £
-
Restricted		 2021
Total
£
239		 2020
Total
£
861
Unrestricted
£
-
-		 £
-
-
Restricted		 2021
Total
£
-
-		 2020
Total
£
901
470
- - - 1,371

23

Independent Cinema Office

Notes to the financial statements

For the year ended 31 March 2021

Programming
£
210,086
-
2,050
379
-
77
261
645
6,674
530
-
-
181
-
14,443
4,895
5,805
12,756
2,121
-
13,945
-
10,412
2,660
-
1,536		 Training
£
176,394
-
87,713
-
710
733
4,844
110
8,416
1,138
120
5,618
645
11,640
5,687
12,148
4,691
10,710
5,381
-
12,393
217
8,744
2,234
-
1,290		 Film Hub
South East
£
273,904
-
12,346
288
-
100
1,018
179
5,221
721
-
1,080
321
262,286
9,276
7,726
7,527
16,630
2,765
-
18,182
-
13,218
3,468
-
2,002		 Advocacy
£
41,032
-
-
-
-
15
39
23
-
-
-
-
29
-
599
892
1,091
2,491
414
-
2,724
-
1,968
520
-
300		 Distribution
£
16,811
-
1,380
77
550
6
916
1,324
3,380
15
150
-
12
-
477
430
447
1,021
170
-
1,116
-
807
213
-
123		 Consultancy
£
19,762
-
-
-
-
7
19
11
-
-
-
-
14
44,175
288
429
526
1,200
199
-
1,312
1,500
948
250
-
144		 Other
trading
activities
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2021 Total
£
737,989
-
103,489
744
1,260
938
7,097
2,292
23,691
2,404
270
6,698
1,202
318,101
30,770
26,520
20,087
44,808
11,050
-
49,672
1,717
36,097
9,345
-
5,395		 2020
Total
£
674,386
15,276
164,608
36,293
1,750
51,659
32,534
6,546
34,652
8,222
62,253
33,280
88,578
231,563
19,158
41,966
104,592
24,444
10,850
4,866
5,684
424
22,359
20,895
1,980
-
289,456 361,576 638,258 52,137 29,425 70,784 - 1,441,636 1,698,818
1,698,818

Of the total expenditure, £142,498 was unrestricted (2020: £162,578) and £1,299,138 was restricted (2020: £1,536,240).

24

Independent Cinema Office

Notes to the financial statements

For the year ended 31 March 2021

  1. Support costs

These costs are allocated on a direct salary costs basis and consist of:

These costs are allocated on a direct salary costs basis and consist of:
Hotel travel & subsistence
Hotel travel & subsistence
9
Staff costs
Statutory audit
Other audit
Foreign exchange (surplus) /loss
Net income / (expenditure) for the year
Operating lease rentals:
Auditors' remuneration (excluding VAT):
This is stated after charging / (crediting):
Depreciation of tangible fixed assets
Venue Hire
IT/Web costs
Office costs
Bank interest payable
Property
Catering/ hospitality/entertaining
Couriers / transport
Certification/accreditation
Legal and professional
Governance costs consist of:

Marketing and publicity
Depreciation
Bank charges and interest
Premises costs
Irrecoverable VAT
Governance
Audit fees
Exchange loss
Annual report
Trustees' expenses
Loss on disposal of fixed asset
Consultancy		 2021
£
133,942
-
417
270
-
705
-
530
10,773
16,036
19,627
44,807
48,987
35,404
9,344
5,395
7,450		 2020
£
25,907
1,750
79
5,396
839
4,498
216
11,640
9,377
11,222
91,284
24,443
5,684
21,266
20,896
-
14,097
333,687 248,594
2021
£
7,450
-
-		 2020
£
7,250
4,866
1,981
7,450 14,097
2021
£
44,807
450
35,274
-
7,450
3,000
5,395		 2020
£
24,444
168
21,056
66,365
7,250
3,000
(901)

10 Related party transactions

Mel Clarke, the sister of Becky Clarke, Head of Operations, was paid £4,100 (2020: £7,900) during the year for design work on various projects. At 31 March 2021 £800 (2020: £1,750) was outstanding and due to be paid. Vision Box was paid £15,806 through the Resilience Award Fund and Film Exhibition Fund. Simon Ward, Trustee, is co-director/owner with his wife Corinna Ward.

11 Corporation taxation

The charitable company is exempt from tax on income and gains falling within section 478 of the Corporation Tax Act 2010 or section 252 of the Taxation of Chargeable Gains Act 1982 to the extent that these are applied to its charitable objects.

25

Independent Cinema Office

Notes to the financial statements

For the year ended 31 March 2021

Staff costs were as follows:

Staff costs were as follows:
Staff training
Human resources fees
Other staff costs
Employer’s contribution to defined contribution pension schemes
Salaries and wages
Social security costs
Freelance staff
Staff recruitment		 2021
£
635,940
59,861
31,254
360
-
3,549
7,025
-		 2020
£
570,382
54,686
26,865
14,718
3,560
1,862
2,239
74
737,989 674,386

No employee received employee benefits (excluding employer pension costs) during the year above £60,000.

The total employee benefits including employer national insurance and pension contributions of the key management personnel were £241,964 (2020: £230,944).

The charity trustees were not paid and did not receive any other benefits from employment with the charity in the year (2020: £nil).

Trustees' expenses includes the payment or reimbursement of travel and subsistence costs totalling £nil (2020: £856) incurred by nil (2020: two) members relating to attendance at meetings of the trustees.

13 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Consultancy
Distribution
Advocacy
Training
Support
Programming
Film Hub South East		 2021
No.
4.1
4.8
6.3
0.5
0.4
0.3
3.8		 2020
No.
5.8
4.2
5.2
-
2.0
0.1
0.4
20.2 17.7

14 Grants

Grants
Paid from restricted funds:
Training
Derby QUAD Enterprises Ltd
Phoenix - Leicester Arts Centre Ltd
Sheffield Media & Exhibition Centre Ltd
Payments to Institutions
Payments to Institutions analysed as follows:		 2021
£
318,101		 2020
£
231,563
2021
£
4,500
4,500
2,640
11,640

26

Independent Cinema Office

Notes to the financial statements

For the year ended 31 March 2021

e year ended 31 March 2021
Grants (continued)
Open Access Fund
The Keep
Total Film Hub South East
Norwich Film Festival
The Picture House Uckfield
Riverside Restaurant & Theatre Ltd
Trinity Theatre & Arts Centre Ltd
Film Exhibition Fund
Bute Street Film Festival
Ipswich Film Theatre
Vision Box Cinema Ltd
Fisheye Film Festival
Fabrica
Corn Exchange Wallingford
Creative Arts East
Cambridge Film Trust
Trinity Theatre
Consultancy
British Independent Film Awards (BIFA)
Women Over Fifty Film Festival CIC
Electric Palace Cinema
Lewes Community Screen
Reel Connections CIC
Young Programmers' Groups
Ultimate Picture Palace
University of Brighton
University of Kent
UK Jewish Film Festival
Worthing Theatres & Museum
Vision Box Cinema Ltd
Film Hub South East
The Diss Corn Hall Trust
The Film Place
Kino-Teatr
Letchworth Garden City Heritage Foundation
Norden Farm Centre Trust Limited
Brighton Community Cinematheque CIC
The Picture House Uckfield
Saffron Screen
Towner Enterprises Ltd
Cambridge Film Trust
Deal Film Club
Norden Farm
Towner Enterprises Ltd
Ultimate Picture Palace
ADeC (Babylon Arts)
Resilience Award Funds		 2021
£
900
15,000
10,000
11,500
8,900
2,500
9,800
10,000
13,200
7,990
5,000
10,000
9,979
6,926
12,683
9,065
143,443
2021
£
1,862
5,000
15,000
5,175
3,490
1,400
2,015
1,750
8,000
3,160
3,016
4,900
3,500
422
5,867
5,700
2,050
2,000
5,267
6,741
86,315
2021
£
14,337
18,194
32,531
2021
£
(3)
262,286
2021
£
44,175

27

Independent Cinema Office

Notes to the financial statements

For the year ended 31 March 2021

For the year ended 31 March 2021
15
Long
leasehold
property
Leasehold
refurb -
ishment
£
1,308,014
53,736
-
11,796
-
(450)
1,308,014
65,082
13,080
-
26,160
6,437
39,240
6,437
1,268,774
58,645
1,294,934
53,736
16
17
18
Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year
19.
Creditors: Amounts falling due after more than one year
Secured bank loans - falling due in less than 5 years
Secured bank loans - falling due after 5 years
Accruals
Deferred income
Pension contributions
Accrued income
Trade creditors
Creditors: amounts falling due within one year
Prepayments
Trade debtors
Debtors
At the end of the year
At the end of the year
Tangible fixed assets
Grants payable
Secured bank loans
At the end of the year
Disposals in year
Deferred income comprises of grant and income for events taking place in
training and consultancy fees received in advance of the work being carried
Taxation and social security
Other creditors
Deferred income
Charge for the year
Depreciation
Other debtors
Net book value
At the start of the year
All of the above assets are used for charitable purposes.
At the start of the year
Additions in year
At the start of the year
Cost or valuation		 Long
leasehold
property
1,308,014
-
-		 Leasehold
refurb -
ishment
£
53,736
11,796
(450)		 Database
and website
£
35,973
-
-		 Fixtures,
fittings &
equipment
£
22,982
7,798
-		 Total
£
1,420,705
19,594
(450)
1,308,014 65,082 35,973 30,780 1,439,849
13,080
26,160		 -
6,437		 21,205
8,994		 15,825
3,216		 50,110
44,807
39,240 6,437 30,199 19,041 94,917
1,268,774 58,645 5,774 11,739 1,344,932
1,294,934 53,736 14,768 7,157 1,370,595
2021/22 and
out.		 2021
£
24,532
10,400
10,318
40,233		 2020
£
182,969
35,412
11,077
34,126
85,483 263,584
2021
£
43,892
49,883
49,875
88,740
8,663
12,546
3,310
74,157		 2020
£
10,619
32,991
55,798
39,353
-
17,284
3,881
317,575
331,066 477,501
2021
£
317,575
(312,575)
69,157		 2020
£
40,884
(40,884)
317,575
74,157 317,575
2021
£
218,615
727,381		 2020
£
207,996
798,625
945,996 1,006,621

There are three secured and one unsecured bank loans on the property at Unit 9 Bickels Yard, London, SE1 3HA. The loan from Charity Bank is charged at 2.75% over base rate and the loans with Big Issue Invest are charged at 7.5% and 6%. The Charity Bank loan is repayable over 25 years and the Big Issue Invest loans over 7 years, 63 months and 57 months. The property has a carrying value of £1,268,774. The loans are secured with fixed and floating charges over the assets of the charity.

28

Independent Cinema Office

Notes to the financial statements

For the year ended 31 March 2021

For the year ended 31 March 2021 For the year ended 31 March 2021
20a
20b
Creditors due after more than one year
21a
At the start of
the year
£
-
96,176
Film Hub South East
86,717
1,000
-
4,315
-
19,012
Other BFI funded tours
3,910
Arts Council England
(1,630)
National Lottery Cinema Day
43
Total restricted funds
209,543
330,983
89,300
Total designated funds
420,283
General funds
111,834
532,117
741,660
Analysis of net assets between funds (Prior year)
Analysis of net assets between funds (Current year)
Britain on Film
Unrestricted funds:
Restricted funds:
British Film Institute
Net assets at the end of the year
Big Issue Invest
Tangible fixed assets
Net current assets
Tangible fixed assets
Net current assets
Creditors due after more than one year
Sustainability fund
BFI - Advice, information, support and
training
Developing Your Own Film Festival 2020
Fixed assets
Total funds
Total unrestricted funds
Designated funds:
Other training
MUBI bursary fund
Movements in funds (Current year)
Net assets at the end of the year		 General
unrestricted
£
-
126,925
-		 £
1,344,932
45,117
(945,996)
Designated		 Restricted
£
-
259,390
-		 Total funds
£
1,344,932
431,432
(945,996)
126,925 444,053 259,390 830,368
General
unrestricted
£
-
111,834
-		 £
1,370,595
56,309
(1,006,621)
Designated		 Restricted
£
-
209,543
-		 Total funds
£
1,370,595
377,686
(1,006,621)
111,834 420,283 209,543 741,660
Incoming
resources &
gains
£
458,897
164,053
542,687
-
55,579
116,890
10,000
-
1,832
-
-		 Outgoing
resources &
losses
£
(401,671)
(151,702)
(570,024)
-
(48,294)
(102,260)
-
(17,749)
(6,068)
(1,370)
-		 Transfers
£
(10,278)
18,886
-
-
-
113
(10,000)
-
326
-
-		 At the end of
the year
£
46,948
127,413
59,380
1,000
7,285
19,058
-
1,263
-
(3,000)
43
209,543 1,349,938 (1,299,138) (953) 259,390
330,983
89,300		 -
-		 -
-		 18,070
5,700		 349,053
95,000
420,283 - - 23,770 444,053
111,834 180,406 (142,498) (22,817) 126,925
532,117 180,406 (142,498) 953 570,978
741,660 1,530,344 (1,441,636) - 830,368

The narrative to explain the purpose of each fund is given at the foot of the next note.

29

Independent Cinema Office

Notes to the financial statements

For the year ended 31 March 2021

21b Movements in funds (Prior year)

e year ended 31 March 2021
Movements in funds (Prior year)
Other BFI funded tours
National Lottery Cinema Day
Heritage Lottery Fund
Total restricted funds
Total designated funds
General funds
Unrestricted funds:
Developing Your Own Film Festival 2019
Restricted funds:
Film Hub South East
Total unrestricted funds
Britain on Film
Europa cinema
Designated funds:
Fixed assets
Sustainability fund
MUBI bursary fund
Arts Council England
Total funds
Other training
Property Fund
British Film Institute
Premises research
Developing Your Own Film Festival 2020
BFI - Advice, information, support and
training		 At the start of
the year
£
-
53,646
77,532
-
-
-
7,175
43,595
9,245
-
116
15,485
-		 Incoming
resources &
gains
£
354,170
163,635
500,000
1,000
101,091
16,017
144,676
6,520
147,832
27,000
46,734
(802)
9,357		 Outgoing
resources &
losses
£
(354,335)
(121,546)
(490,815)
-
(113,754)
(16,017)
(146,426)
(31,103)
(162,826)
(28,630)
(46,807)
(14,624)
(9,357)		 Transfers
£
165
441
-
-
12,663
-
(1,110)
-
9,659
-
(59)
-		 At the end of
the year
£
-
96,176
86,717
1,000
-
-
4,315
19,012
3,910
(1,630)
43
-
-
206,794 1,517,230 (1,536,240) 21,759 209,543
29,140
6,162
260,000
95,000		 -
-
-
-		 (24,612)
(750)
-
(5,700)		 326,455
(5,412)
(260,000)
-		 330,983
-
-
89,300
390,302 - (31,062) 61,043 420,283
73,091 253,061 (131,516) (82,802) 111,834
463,393 253,061 (162,578) (21,759) 532,117
670,187 1,770,291 (1,698,818) - 741,660

Purposes of restricted funds

British Film Institute

Funding received from the BFI to be a strategic partner for the BFI Film Audience Network (FAN) to enable film exhibitors to boost film audiences around the UK for independent and specialised films.

British Film Institute - Advice, information, support and training

Organisational funding received to provide telephone and online support including an update of our online resources, support to venues and additional funding for our FEDS training scheme (2021/22).

Film Hub South East

The ICO is responsible for administering funds from the National Lottery to support a stronger and more connected approach to growing audiences for British and International cinema throughout the region. During 2020/21 we distributed funds through the Resilience Fund and the Film Exhibition Fund.

MUBI bursary fund

Funding received from MUBI to be used for screening day bursaries.

Developing Your Own Film Festival

Funding received from the European MEDIA programme and the British Council to support the costs of running the Developing Your Film Festival course in Wroclaw, Poland in 2020 and on line in March 2021.

Other training

Funding received from FAN and ScreenSkills. During 2020/21 we completed the Women's Leadership course from 2019/20 and also commenced the FAN managers training and FAN festival training. ScreenSkills funding was used to provide online versions of FEDS Elevate and DDM courses. During the previous year we completed pysical FEDS Elevate and DDM courses with ScreenSkills funding and commenced the Women's Leadership course with FAN funding.

Big Issue Access

A donation was received from Big Issue Access Ltd to part repay a loan with Big Issue Invest.

30

Independent Cinema Office

Notes to the financial statements

For the year ended 31 March 2021

Purposes of restricted funds (continued)

Britain on Film

Organisational funding received from the BFI to enable the ICO to deliver eight archive film programmes.

Other BFI funded tours

The BFI supported two touring projects during 2019/20, Musicals as part of the BFI's bockbuster project for 2019 and Second Sight which celebrates the UK's Black Film Workshop Movement which continued into 2020/21.

Arts Council England

Funding received to commission four new films from British Artists for our Second Sight tour.

National Lottery Cinema Day

Funding received from Camelot to repay venues the ticket value of tickets given away on National Lottery Cinema Day in August 2019.

Heritage Lottery Fund

Funding received to show archive film footage of four New Towns in the Film Hub South East region. The films were screened in the town centres and community groups of Crawley, Harlow, Hemel Hempstead and Stevenage. Following the screenings oral histories were recorded from audience members.

Europa Cinema

A grant received from Europa Cinemas, a European wide network of cinemas funded by the Media programme of the EU. It supports showing of non-national films in several ICO associated cinemas. This given grant is re-distributed to a number of cinemas.

Purposes of designated funds

Fixed assets

Funds representing the net book value of fixed assets, after deducting loans outstanding, that are consequently not readily available in cash.

Premises research

An amount set aside to pay for a consultant to research new offices for the ICO.

Property Fund

Funds set aside to help pay for the purchase of new offices in 2019/20.

Sustainability fund

An amount set aside to pay redundancy costs in the event of the closure of the charity.

22 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. At 31 March 2021 there were 7 (2020: 7) guarantees in place.

31