**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|
1
**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:
- To increase admissions for independent cinemas
- To enable a diverse range of films to be seen by diverse audiences
- To make the exhibition industry more inclusive
- To provide formal training routes into exhibition careers
- To support new venues so that people can access independent films wherever they live
- To inform positive policy changes and increased funding for independent film exhibition.
## **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:
- Having inclusivity at the heart of our mission statement
- Ensuring that wherever you live in the UK, you have the same access to the art of film as if you lived in the capital
- Expanding the geographical reach of world cinema (including artists’ work, animation and archive film)
- Building capacity in organisations both professional and non-professional to ensure that they achieve the highest standards in audience development through training programmes and online resources available at no charge to all users
- Offering bursaries for those with caring responsibilities or access needs on all of our training courses
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## **Independent Cinema Office**
- Partnering with grassroots and community organisations especially those in rural communities
- National advocacy for our sector
- Offering free advice and information to a huge range of organisations from schools to care homes as well as traditional cinemas
- Only working with partners and clients who share our goal to develop audiences for a wide range of cinema thereby ensuring that the public has access to the widest range of films possible, both archive and contemporary.
## **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 invited all staff and Board members to contribute to an anonymous document sharing thoughts, feelings, reactions and ideas in response to the Black Lives Matter movement
- We asked for volunteers to form an internal Anti-Racism Working Group, which held 12 detailed, twohour discussion sessions in August and September 2020
- The group reviewed all the ideas in the anonymous document and began to develop an action plan specific to the work of the ICO
- This draft action plan was discussed and agreed at a staff meeting attended by all employees. We then consulted with three experienced arts professionals who acted in the role of critical friends, scrutinising our commitments and decision-making processes and providing valuable insight into key areas we needed to consider moving forward. The ICO’s Anti-Racism Working Group will continue to meet regularly and discussions will take place fortnightly at the ICO’s staff meeting, to ensure the ideas, challenges and commitments in the plan remain a constant focus in our work.
We have taken a number of immediate actions including;
- Publishing an organisational audit of our staff and Trustees and updating twice a year
- Undertaking Unconscious bias training for all staff and Trustees
- Recruiting an independent HR consultant to sit outside of senior management and act as a support to all staff
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## **Independent Cinema Office**
- Establishing a Co-Creation committee for our FEDS scheme to ensure that we have the input of FEDS alumni on future training for participants who are all from communities traditionally excluded by the film industry
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:
- 664 unique delegates in attendance
- 326 unique organisations represented
- 34 films screened from 18 countries
- Over 50% of films screened made by filmmakers of colour or disabled filmmakers
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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## **Independent Cinema Office**
In 2021-21:
- The ICO trained over 120 film exhibition professionals from nearly 100 organisations and 19 countries live online
- 774 students enrolled on our online learning platform, which has been used by over 1.4k students to date
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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**Independent Cinema Office**
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:
- We answered 1,500 enquiries and advertised 180 jobs
- ICO blog pages received +31k page views and +20k unique views
- New ICO online guides were downloaded 1,552 times
## **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.
- **BFI FAN COVID-19 Resilience Fund** – In April 2020, we launched our first emergency fund in conjunction with the other Film Hubs, providing grants to film exhibitors in critical financial need. We received 18 applications and approved 16 for support, allocating £143,000 overall.
- **Film Exhibition Fund** – In August 2020, we launched our second emergency fund to support members to resume cultural film programming and reengage with a diverse range of audiences. We received 20 applications; all were awarded support, totalling £86,000.
- We also encouraged members to apply to the **BFI Culture Recovery Fund** , offering an application review service for draft proposals and providing guidance to ensure a strong case for support was put forward. In Round 1, 52 venues from the South East were supported, resulting in over £3.5m in regional funding.
## In addition, we:
- Offered bespoke support to members facing existential financial challenges
- Converted our Young Film Programmers’ (YFP) Network to an online series (‘Intermissions’) comprising an online viewing group programmed by Network members and online Industry Sessions giving them the opportunity to talk directly to people working in film exhibition and related professions
- Held our Programming Group meetings online, advising key regional theatrical sites on industry developments, programming, online screenings and reopening
- Delivered our first virtual members’ Forum in Feb 2021, using members’ feedback on current needs to design an online programme of sessions exploring topics such as: programming in a pandemic, national FAN opportunities, online screening platforms for beginners, mental health awareness and best practice for reopening.
- Funded 38 filmmakers across the region via our BFI NETWORK South East activities
- Welcomed over 800 attendees to our BFI NETWORK South East online events programme
- We continue to build our membership and seek out new partnerships in the region to develop our network of independent exhibitors.
## **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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## **Independent Cinema Office**
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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## **Independent Cinema Office**
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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**Independent Cinema Office**
|**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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## **Independent Cinema Office**
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:
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in the Charities SORP 2019
- 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 a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the 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.
- In so far as the trustees are aware at the time of approving our trustees’ report:
- There is no relevant audit information, being information needed by the auditor in connection with preparing their report, of which the charitable company’s auditor is unaware; and
- The trustees, having made enquiries of fellow directors and the charitable company’s
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## **Independent Cinema Office**
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 Cinema Office**
## **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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 March 2021, and of the 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 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 Cinema Office**
## **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:
- the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Trustees’ Annual Report has been prepared in accordance with legal requirements.
## **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:
- adequate and sufficient accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- • the Trustees' 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 Trustees’ Annual Report and from the requirement to prepare a strategic report.
## **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.
14
**Independent Cinema Office**
## **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:
- obtaining an understanding of the legal and regulatory framework applicable to the charitable company and how the charitable company is complying with that framework, including agreement of financial statement disclosures to underlying documentation and other evidence;
- obtaining an understanding of the charitable company’s control environment and how the charitable company has applied relevant control procedures, through discussions with Trustees and other management and by performing walkthrough testing over key areas;
- obtaining an understanding of the charitable company’s risk assessment process, including the risk of fraud;
- reviewing meeting minutes of those charged with governance throughout the year; and
- performing audit testing to address the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
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.
15
## **Independent Cinema Office**
## **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
16
## Independent Cinema Office
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.
17
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
- 1 Accounting policies
- 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) (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.
- b) Public benefit entity
The charity meets the definition of a public benefit entity under FRS 102.
- c) Going concern
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.
- d) Income
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
- 3 Income from charitable activities (continued)
|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
- 7 Analysis of expenditure
|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
8. 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
- 12 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
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
- 14 Grants (continued)
|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