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**Company number: 5369193 Charity number: 1109053**
## **Independent Cinema Office**
**(Limited by Guarantee)**
**Report and Financial Statements**
**For the year ended 31 March 2022**
DocuSign Envelope ID: C9BA0274-D057-4808-9643-85BCA5969891
## **Independent Cinema Office**
## **Contents**
||**Page**|
|---|---|
|Reference and administrative details|2|
|Trustees’ report||
|Objectives and activities|3-4|
|Achievements and performance|4-8|
|Financial review|9-10|
|Plans for the future|10-11|
|Structure, governance and management|11-12|
|Independent Auditor’s report|14-17|
|Statement of Financial Activities (including Income and Expenditure Account)|18|
|Balance Sheet|19|
|Statement of cash flows|20|
|Notes to the Financial Statements|21-32|
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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:
Ayo Akingbade (appointed 24 February 2022) Sudha Bhuchar Thea Burrows Julian Connerty (re-appointed 23 November 2021, resigned 26 May 2022) Harry Kalfayan (appointed 24 February 2022) Susan Lovell (resigned 18 August 2022) Eleanor Lowe (appointed 1 March 2022) Will Massa (appointed 1 March 2022) Emily McDonald (appointed 27 February 2022) Ameet Parekh (appointed 28 February 2022) George Sawtell (re-appointed 23 November 2021, resigned 26 May 2022) 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 Cubo Birmingham Office 401 4[th] Floor Two Chamberlain Square Birmingham B3 3AX
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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 2022 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 worldwide Black Lives Matter protests sparked crucial internal conversations about our work, our influence and how we use our power.
Subsequently, we worked with staff and external critical friends to develop an Equality, Diversity and Inclusion action plan (EDI plan), published on our website in March 2021: – Equality, Diversity & Inclusion Action Plan Independent Cinema Office
In 2021-22, we worked to fulfil action points from the plan, publishing six-monthly updates on our website. Our achievements to date include:
- The recruitment and appointment of six new trustees, creating a more representative board
- An overhaul of ICO recruitment processes to increase fairness and transparency and attract a wider range of candidates
- The ongoing review of our Film Exhibition, Distribution & Sales Traineeship Scheme (FEDS) with our Co-Creation Committee, made of up alumni of the scheme, to ensure it is as equitable and inclusive as possible
- Changes to our Screening Days events, including the creation of an external Advisory Group, paid open calls for external curators for specialised events, and the commitment to screen 30% minimum films made by filmmakers of colour or disabled filmmakers
- Initial work on an ICO Programming Charter, which aims to increase the number of films shown by filmmakers of colour in ICO client venues and grow audience engagement for these titles
- Changes to our website’s jobs policy to ensure the jobs we post on behalf of other organisations are fair and transparent.
Equality, diversity and inclusion is on the agenda for ICO staff meetings, and we have regular all-staff discussions on specific issues as they arise. In 2022-23 we will continue our work on existing action points and complete a review of the original plan to identify new objectives to progress our EDI work further.
## **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 2021-22, the ICO programming network grew to 30 clients – 29 cinemas and one major regional film festival – becoming one of the UK’s biggest independent cinema networks. Our
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## **Independent Cinema Office**
programming team worked closely with venues to help them plan for reopening from May 2021, re-establish their audiences and renew their confidence in diversifying their programmes to include a wider range of culturally important films.
In one of the most challenging years for UK film exhibition to date, our network screened 674 films and achieved 680k+ total admissions and £4.4m gross box office, with ICO cinemas making vital contributions to the performance of key independent releases and overall, to an increasingly promising landscape for the sector. In the final quarter of the year, our cinemas had made a notable recovery, operating at about 80% of pre-pandemic admissions levels.
Our new venues this year were Warwick Arts Centre, Cinemarsh in New Romsey and Reading Biscuit Factory.
## **Screening Days**
Screening Days is the ICO’s flagship event series and the UK’s biggest cinema conference programme. The events give exhibitors across the UK the chance to see the best world cinema and British independent titles months in advance of release, so they can make informed decisions on how these films can meet their audiences.
Following a year of solely virtual events and in response to the changing landscape of the pandemic, we began offering hybrid Screening Days in 2021-22, giving delegates the chance to watch films and attend sessions in-venue or access them at home, with over 90% of the programme available online. Our hybrid offer has been extremely successful, with four out of this year’s five Screening Days our most well-attended events ever.
As well as easing physical access by offering online-only attendance, a more affordable pricing model and bursaries to potential delegates, we made online films available with subtitles for Deaf/hard of hearing audiences and provided live captions on all capacitybuilding sessions.
To bring in external voices, we created a Screening Days Advisory Group, appointing three critical friends for a year’s period to steer the programmes and strategy of our specialised events (Young Audiences, Inclusion & Diversity, Archive Screening Days). We also introduced paid open calls for curated sessions for these events, giving a national stage to groups and work that might otherwise have stayed on the margins.
Total figures for the Screening Days programme this year:
- A record 1,182 delegates (718 unique) attended online, in-person or a combination of both
- 375 unique organisations represented
- 68 films screened from 51 countries
- 30-60% of films shown at events made by filmmakers of colour or disabled filmmakers (bringing in films from outside UK distribution where needed).
## **Training**
The ICO’s training portfolio offers film exhibition professionals the opportunity to benefit from high-level knowledge to ensure our sector is successful, inclusive and progressive. In 2021-22, as the industry reopened after the pandemic, ICO training helped chart a path towards a highly skilled, financially sustainable and inclusive future for cinema.
We continued to provide professional development and training opportunities online while holding some in-person activities again for the first time since 2020, with our longer-term training opportunities like FEDS and Women’s Leadership delivered in hybrid formats.
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## **Independent Cinema Office**
We reviewed our inclusivity aims for training and professional development courses in detail and for the first time offered instalment payment plans for course fees for people who required this flexibility.
Supported by the BFI Audience Fund, our **FEDS (Film Exhibition, Distribution & Sales) Traineeships** scheme recruits new entrants to paid roles in film exhibition to help make the industry workforce more reflective of UK society. Our 2020 traineeships, postponed due to COVID-19, ran from June 2021-March 2022 at the Barbican, HOME, the ICO, Phoenix Cinema and Arts Centre and Tyneside Cinema. Trainees were paid the Living Wage and received industry training sessions and professional career coaching as well as on-the-job training. In early 2022 we began recruiting new trainees to undertake placements at Belfast Film Festival, BFI, Broadway Nottingham, Depot Lewes, Hippodrome Silent Film Festival and Flatpack Festival.
The 2021-22 edition of our well-established **Women’s Leadership** course ran from November 2021-April 2022. Funded by the BFI Film Audience Network, it supported 10 ambitious women from across the UK’s film exhibition sector with one-to-one coaching, skills development workshops and high-level networking opportunities.
We created two new **Online Learning Courses** – ‘How to Start Screening Films’ and ‘Front of House Workers Guide’ – to fill two different but equally distinct gaps in our current online training offer. Overall, our Online Learning Platform attracted 180 new students this year, with the total number of course enrolments rising to 1,560.
Following our collaboration with arts consultancy Indigo Ltd on the Cultural Restart Audience & Visitor Tracker, we partnered with them to share its findings and Indigo’s newly developed **Reopening: Five Reassurances** model – supporting cinemas in rebuilding audience confidence post-pandemic using the latest audience research data – via a free online seminar in July 2021.
Supported by ScreenSkills, we delivered a new training course, **Data-Driven Film Exhibition** , that built on the success of our popular Data-Driven Marketing course with a wider look at how exhibitors can use data to build sustainable strategies for their activity in areas including programming, marketing, access and inclusion.
From October to November 2021, the second round of our popular **Core Skills for Cinemas** webinar series provided practical accessible learning on the topics: ‘Starting and developing a membership scheme’, ‘Why email marketing is important’ and ‘Programming artists’ moving image work.’
Finally, we partnered with the National Centre for Voluntary Organisations (NCVO) to create a five-part, free-to-attend workshop series, **Governance Next** , exploring key governance topics and giving grassroots organisations guidance on how to best set up as legal entities and structure their boards. In addition, we offered nine organisations from across the UK bespoke NCVO coaching sessions to review their specific governance challenges.
## **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, ahead of reopening in May 2021, exhibitors of all kinds sought advice on COVID-19 protocols and how best to communicate a twin message of welcome and safety to in-venue audiences to ensure people felt both able and inspired to return. Conversely, many other enquiries related to starting (or continuing) a hybrid screening offer for audiences who preferred to continue watching from home amidst ongoing pandemic circumstances.
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## **Independent Cinema Office**
Following on from 2020-21, we continued to focus our blog strategy on change and renewal, questioning industry practices and looking at new ways of supporting film exhibition workers, highlighting antiracism work in the arts, and encouraging greater accessibility, diversity and inclusivity across the sector.
We wrote and published in-depth downloadable guides on programming, cinema audio and fundraising, now available on our website alongside our array of existing guides.
Another important area of work this year was reconceiving our jobs posting policy. The ICO’s jobs board is the biggest source for recruitment in our part of the sector. We have hosted thousands of job ads over the past 15 years, have over 5,000 subscribers to our daily jobs newsletter and receive 100,000 hits per year on our jobs pages.
Inspired by the leadership of Fair Museum Jobs in this area, we redesigned the criteria to post a job on our website. Our new policy is designed to ensure that the jobs we post are fairer and, more widely, to show how more thoughtful recruitment practices can be a form of audience communication for arts organisations, enabling them to forge new connections. As well as our internal policy, we shared broader practical guidance on our website.
## In 2021-2022:
- We answered 1,090 enquiries and advertised 721 jobs
- ICO ‘Advice & Support’ webpages received +194k page views
- ICO online guides were downloaded 2,222 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 2021-22, we supported our members both financially and strategically, helping them navigate the process of reopening and the continuing volatility of the film exhibition landscape.
- **Film Exhibition Fund** – We developed one key strategic fund, the Film Exhibition Fund, to help exhibitors to remain sustainable in this period and resume their cultural film programming and audience development activities. We funded 25 projects at 23 organisations, totalling £135,830, before recalls, in support to develop programmes of independent British and international film and engage a broad and diverse audience.
- We also offered a review service for Hub member applications to the **BFI Culture Recovery Fund,** which over three rounds saw 28 venues from the South East submit successful applications, resulting in over £4m in funding for the region.
## In addition, we:
- Continued to grow our Young Film Programmers’ (YFP) Network – now comprising 37 groups at venues across the region – offering members access to online monthly BFI Film Academy Labs, training and networking workshops, industry-led courses for aspiring young filmmakers, and many other regional/national exhibition opportunities plus the chance to apply for financial support
- Held an online training session, ‘Challenging Barriers and Championing Access for Disabled Cinema Audiences’ to encourage regional exhibitors to reopen their venues with accessibility in mind
- Provided four venues with a bespoke consultancy following this event to encourage real change for venues and audiences throughout our region
- Held a series of further online training and discussion events based on feedback from member surveys, including ‘Audience Development Through Social Media’, ‘Innovative Programming’ and the opportunity to share best practices and successful strategies
- Released archive short _Wartime in the South East_ for venues to screen during this year’s
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## **Independent Cinema Office**
Poppy Appeal, supporting venues with proven audience engagement strategies to achieve 2,077 admissions across a range of organisations including cinemas, day centres, museums, community groups and village halls
- Opened our Programming Group up to more cinemas, giving key regional theatrical sites updates on sector developments, funding opportunities and new films for programming at meetings held both online and in-person
- Via BFI NETWORK South East, delivered funding to over 59 regional filmmakers and expert advice and support to many more, plus an extensive range of training and networking events and our highly successful new podcast, Short Hand
- Grew our Film Hub South East membership by 36% since April 2021 (231 members total).
## **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, with a focus on films that make a cultural contribution to cinema and expand the possibilities for UK audiences.
In 2021-22, our distribution activities were limited by COVID-19 until cinemas began reopening in May 2021, but in June 2021 we reissued Ousmane Sembène’s _**Mandabi**_ nationwide in partnership with STUDIOCANAL UK.
Often described as the ‘father of African cinema’, Sembène was not merely one of the first black filmmakers to make films on the continent but also radically recentred who cinema was about and for. But despite this renown, his films have been hard to play in the UK and only previously available in poor digital copies. Subsequently, we were delighted to work with STUDIOCANAL UK to release a 4K restoration of _Mandabi_ into UK screens for the first time; one of the under ten African titles released in the UK in the past five years.
To support cinemas emerging from the pandemic, we made _Mandabi_ available for online and in-cinema screenings and offered exhibitors a free recorded online discussion led by Africa in Motion Festival Director Liz Chege (interviewing world expert on African cinema Dr Aboubakar Sanogo and microfinance entrepreneur Ivan Mbowa) to use as a post-screening Q&A. Alongisde this, we launched a major publicity campaign with features in _Sight & Sound_ , BBC’s ‘Inside Cinema’, _Little White Lies_ and many more publications.
## **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 offering research and special reporting on the widest possible range of cinema related matters. Each year, the ICO fields over 300 enquiries, and we have developed a repertoire of consultancy formats to respond to them in the most effective way – from advice sessions to the development of business or audience development plans, to full options appraisals or feasibility studies. We are proud to have boosted venues, festivals and community screens to new levels of achievement and to have played a part in establishing new venues for audiences nationwide.
In 2021-22, we delivered a feasibility study for a major new independent cinema for London; provided business development guidance for a touring film festival; advised a regional independent cinema on their young audience offer; and helped another regional independent cinema reach out to local Indian audiences.
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## **Independent Cinema Office**
## **Financial review**
In the year ended 31 March 2022 ICO’s income derived from grant income and fees for programming, courses, screening days, consultancy and film hire. In addition, we continued to make 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 increased by £140,000 in the year ended 31 March 2022. Many of the online activities in the previous year became hybrid versions with, for example, screening days held in venues and online.
A valuation of the property in Bickels Yard indicated that there had been an impairment during the year. The value of the property was reduced by £127,614 and the refurbishment costs were consequently also impaired by £52,137. Expenditure was therefore £179,751 more than budgeted which resulted in a deficit for the year. The loan to value covenant for the Charity Bank loan was therefore breached and a repayment of £51,711 was made in July 2022 to rectify this.
Overall net expenditure for the year was £72,463 of which there was a surplus on restricted funds of £53,084 and a deficit on unrestricted funds of £125,547.
## **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.
## **Grant making policy**
The ICO mainly grants awards through the Film Exhibition Fund. These funds are restricted and come from the BFI. Film Hub South East operates the Film Exhibition Fund and supports Film Audience Network (FAN) members, which includes organisations of various shapes and sizes, from community cinemas to festivals to multi-arts centres, to maximise the number of audiences engaging with independent British and International film across the region.
The fund invites applications for awards from members that respond to the Film Hub South East’s strategic objectives of cultural engagement, developing young audiences, providing inclusivity and showcasing screen heritage. Applicants are asked to submit an application form, a budget and an equality monitoring form. The guidelines and regulations for awards are set by the BFI and we cannot independently make awards outside this rubric.
## **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 £250,000 (2021: £240,000). At 31 March 2022 free reserves were £97,356. The ICO have a budgeted for a small surplus in 2022/23.
Total funds held at the 31 March 2022 were £757,905 of which £312,474 is restricted funds and £445,431 unrestricted funds. Included in unrestricted funds are designated amounts of £348,075. The fixed assets fund represents the net book value of fixed assets after accounting for the loan outstanding. A fund has been established to set aside funds for the additional loan repayment in July 2022 of £51,711. 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. The Miles Ketley filmmakers’ bursary fund has been established to commemorate our trustee who died in 2019. Funds have been set aside to provide bursaries to filmmakers to allow them to attend industry events to aid their development. It will be launched at Autumn Screening Days in 2022.
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## **Independent Cinema Office**
The ICO is currently in the last year of funding with the BFI and we are awaiting the publication of the BFI’s 10-year National Lottery funding strategy and details of the subsequent application process due in Autumn of 2022. We have prepared budgets for 23/24 on the basis of various scenarios, including being unsuccessful with our applications, which the trustees have considered and believe that the charity will be able to continue to operate for the foreseeable future. Please see accounting policy 1 c) for further details. In September 2022 we were informed by the BFI that we are the preferred bidder to run Film Hub South East.
## **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. We have a new job description and terms of reference for Trustees which coincided with the change in our recruitment policies and all of our new Trustees (and some of the current ones) have undertaken the NCVO Trustee introduction/refresher course.
## **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**|
|**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|
|**Property loan – facility**
**may be withdrawn**|High|Quarterly
management
accounts,
cash flow, regular review of bank
covenants.|Strong|Low|
## **Plans for the future**
We have seen some recovery in our sector and all of the sites we work with remain in operation and are currently going concerns. The recovery is patchy though and it still remains to be seen whether independent cinemas and film festivals can navigate their way through post-COVID times and address new audience modes of behaviour and consumption.
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## **Independent Cinema Office**
The uncertainty around the BFI’s new plan and funding schemes will affect the sector in the same way it will affect the ICO with many cinemas budgeting for 23-24 whilst not being sure of the future.
We continue to advocate strongly for the sector and are planning a Skills workforce survey to be published in the summer of 2022, the first of its kind in more than a decade. We hope that the data from this will continue to make the case for investment in the Exhibition sector and underline the fact that this is an economy of vertigal integration where the explosion in Film production in the UK still needs to find a receptive and engaged audience.
We intend to build on the lessons learned from COVID and are planning to deliver all our editions of Screening Days in a hybrid version to ensure the greatest access for all exhibition professionals. We will launch our continuing professional development fund for FEDS alumni to enable them to support their careers and build capacity and enable them to apply successfully for more senior roles.
We delivered the last version of DYFF supported by Creative Europe in Edinburgh in August. The Cinema of Ideas will continue for another year with a greater emphasis on delivering a programme for exhibition professionals with its conversations with international curators.
We will launch _Right of Way_ in the autumn which is our archive/artists new commissions programme due to tour in the South-East of England and across the UK in the autumn. We have commissioned three British artists to make new work interrogating equitable access in the UK countryside to accompany our new archive National Trails programme. We are working with a number of significant partners on this and worked with an advisory group of activists, artists and curators on the open call and subsequent selection of the final artists.
We plan to produce new online guides which will add to our increasing portfolio of online learning opportunities and advice and information resources for the sector.
## **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. 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. 2022-23 will see the development of a new sub-committee which will address EDI as part of our ongoing EDI commitments and to support the ICO’s Head of Development and Partnerships in her work. Trustees are also expected to attend Board Away days where more strategic discussions concerning the organisation can take place and will be fully involved in the development of the ICO’s new business plan due to be produced towards the end of 2022.
Policies and procedures adopted for the induction and training of trustees are ongoing and incorporated indirectly into the regular board meetings. All new Trustees are invited to attend the NCVO’s introductory course for Trustees.
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:
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## **Independent Cinema Office**
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 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.
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## **Independent Cinema Office**
## **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 22 November 2022 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 2022 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 2022, 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.
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## **Independent Cinema Office**
**Independent Auditor’s Report to the Members of Independent Cinema Office (continued)** In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **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 12, 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 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.
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## **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 Cubo Birmingham Office 401 4[th] Floor Two Chamberlain Square Birmingham B3 3AX
Date:
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## Independent Cinema Office
Statement of financial activities (incorporating an income and expenditure account)
For the year ended 31 March 2022
|||||2022|||2021|
|---|---|---|---|---|---|---|---|
|||Unrestricted|Restricted|Total|Unrestricted|Restricted|Total|
||Note|£|£|£|£|£|£|
|Income and endowments from:||||||||
|Donations|2|14,554|-|14,554|139,433|10,000|149,433|
|Charitable activities|||||||-|
|Programming|3|173,970|342,127|516,097|32,391|335,268|367,659|
|Advice, information, support & training|3|25,074|359,557|384,631|5,195|347,754|352,949|
|Film Hub South East|3|-|535,000|535,000|-|542,687|542,687|
|Distribution|3|10,295|114,246|124,541|93|1,832|1,925|
|Advocacy|3|-|30,310|30,310|-|43,369|43,369|
|Consultancy|3|20,605|37,165|57,770|3,055|69,028|72,083|
|Other trading activities|4|6,536|-|6,536|-|-|-|
|Investments - bank interest|5|97|-|97|239|-|239|
|Other income|6|363|-|363|-|-|-|
|Total income||251,494|1,418,405|1,669,899|180,406|1,349,938|1,530,344|
|Expenditure on:||||||||
|Charitable activities||||||||
|Programming|7|75,772|383,782|459,554|17,990|271,466|289,456|
|Advice, information, support & training|7|109,822|415,898|525,720|50,117|311,459|361,576|
|Film Hub South East|7|74,178|473,446|547,624|53,944|584,314|638,258|
|Advocacy|7|8,792|28,800|37,592|10,383|41,754|52,137|
|Distribution|7|34,398|81,916|116,314|3,361|26,064|29,425|
|Consultancy|7|12,007|37,015|49,022|6,703|64,081|70,784|
|Other trading activities|7|6,536|-|6,536|-|-|-|
|Total expenditure||321,505|1,420,857|1,742,362|142,498|1,299,138|1,441,636|
|Net (expenditure) / income for the year|9|(70,011)|(2,452)|(72,463)|37,908|50,800|88,708|
|Transfers between funds|21|(55,536)|55,536|-|953|(953)|-|
|Net movement in funds||(125,547)|53,084|(72,463)|38,861|49,847|88,708|
|Reconciliation of funds:||||||||
|Total funds brought forward||570,978|259,390|830,368|532,117|209,543|741,660|
|Total funds carried forward|21|445,431|312,474|757,905|570,978|259,390|830,368|
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 21 to 32 form an integral part of these financial statements.
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## Independent Cinema Office
## Balance sheet
|Balance sheet|Balance sheet||||
|---|---|---|---|---|
|As at 31 March 2022|||Company no. 5369193||
|Note
£
Fixed assets:
15
Current assets:
16
95,447
813,289
908,736
Liabilities:
17
(425,832)
19
20a
21a
348,075
97,356
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||2022
£
1,122,799
482,904|£
85,483
677,015|2021
£
1,344,932
431,432|
||908,736
(425,832)||762,498
(331,066)||
||348,075
97,356||444,053
126,925||
|||1,605,703
(847,798)||1,776,364
(945,996)|
|||757,905||830,368|
|||312,474
-||262,390
(3,000)|
|||312,474
445,431||259,390
570,978|
||||||
|||757,905||830,368|
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 22 November 2022 and signed on their behalf by
Dorothy Wilson MBE FRSA Chair
The notes on pages 21 to 32 form an integral part of these financial statements.
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## Independent Cinema Office
Statement of cash flows
|Statement of cash flows|||||
|---|---|---|---|---|
|For the year ended 31 March 2022|||||
|Cash flows from financing activities:
Repayments of borrowing
Cash inflow from new borrowing
Net cash used in financing activities
Reconciliation of net income to net cash flow from operating activities
Net income for the reporting period
Depreciation charges
Impairment of property
Loss on disposal of fixed assets
Interest from investments
Interest on bank loans
Foreign exchange losses
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash provided by operating activities
Analysis of changes in net debt
At 1 April
2021
£
Cash at bank and in hand
677,015
Loans falling due within one year
(49,883)
Loans falling due after more than one year
(945,996)
Total
(318,864)
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
Cash flows from operating activities
Net cash provided by operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets|£
£
219,589
97
-
97
(82,386)
-
(82,386)
137,300
677,015
(1,026)
813,289
2022
£
(72,463)
42,382
179,751
-
(97)
32,942
1,026
(9,964)
46,012
219,589
Cash flows
Foreign
exchange
movements
£
£
137,300
(1,026)
49,444
-
-
-
186,744
(1,026)
2022||£
£
189,717
239
(19,594)
(19,355)
(169,555)
90,000
(79,555)
90,807
591,603
(5,395)
677,015
2021
£
88,708
44,807
-
450
(239)
35,822
5,395
178,101
(163,327)
189,717
Other
changes
£
£
-
813,289
(98,198)
(98,637)
98,198
(847,798)
-
(133,146)
At 31 March
2022
2021||
||(82,386)
-||(169,555)
90,000||
||Cash flows
£
137,300
49,444
-||Other
changes
£
-
(98,198)
98,198||
|||137,300
677,015
(1,026)||90,807
591,603
(5,395)|
|||813,289||677,015|
|||2022
£
(72,463)
42,382
179,751
-
(97)
32,942
1,026
(9,964)
46,012||2021
£
88,708
44,807
-
450
(239)
35,822
5,395
178,101
(163,327)|
|||219,589||189,717|
|||Foreign
exchange
movements
£
(1,026)
-
-||£
813,289
(98,637)
(847,798)
At 31 March
2022|
||186,744|(1,026)|-|(133,146)|
20
DocuSign Envelope ID: C9BA0274-D057-4808-9643-85BCA5969891
## Independent Cinema Office
## Notes to the financial statements
## For the year ended 31 March 2022
- 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 2022) - (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 Independent Cinema Office is in its last year of funding with the BFI and will apply for further funding in the autumn following the publication of their 10-year National Lottery funding strategy and details of the subsequent application process. Various budgets have been prepared depending upon the outcome of these funding applications, and they do indicate that the charity will be able to continue to operate for a period of at least 12 months from the date of signing these accounts. 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. 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.
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## Independent Cinema Office
## Notes to the financial statements
## For the year ended 31 March 2022
## 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|29.8%|
|---|---|---|
||Training|30.1%|
||Film Hub South East|29.7%|
||Advocacy|2.9%|
||Distribution|6.5%|
||Consultancy|1.0%|
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.
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## Independent Cinema Office
## Notes to the financial statements
## For the year ended 31 March 2022
## 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.
## r) Estimates and judgements
Estimates and judgements have been used in the preparation of these financial statements, mainly in connection with the valuation of fixed assets and the allocation of support costs to charitable activities. The allocation of support costs is set out in accounting policy i). The long leasehold property at Bickels Yard and its related refurbishment costs have been impaired and the carry forward amount is based on a fair value valuation
- 2 Donations
|2
Donations|||||
|---|---|---|---|---|
|3
Training
Film Hub South East
BFI
MUBI
Other income
Sub-total
Other donations
Total
Screening days income
Big Issue Invest
ScreenSkills
Sub-total
BFI
Third party contributions
British Council
Course fees
Other income
Furlough
BFI
Venue income
Contribution in kind
Creative Europe Media
Programming
Income from charitable activities
Sponsorship income|Unrestricted
£
14,554
-
-|£
-
-
-
Restricted|2022
Total
£
14,554
-
-|2021
Total
£
139,329
10,000
104|
||14,554|-|14,554|149,433|
||Unrestricted
£
-
147,709
2,500
23,761|£
342,127
-
-
-
Restricted|2022
Total
£
342,127
147,709
2,500
23,761|2021
Total
£
335,268
18,891
500
13,000|
||173,970
-
-
-
-
-
25,074
-
-|342,127
7,647
4,933
230,827
5,000
40,000
13,730
16,340
41,080|516,097
7,647
4,933
230,827
5,000
40,000
38,804
16,340
41,080|367,659
51,610
35,558
175,285
5,062
40,000
28,554
-
16,880|
||25,074
-
-
-|359,557
535,000
-
-|384,631
535,000
-
-|352,949
536,362
6,250
75|
||-|535,000|535,000|542,687|
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## Independent Cinema Office
## Notes to the financial statements
## For the year ended 31 March 2022
- 3 Income from charitable activities (continued)
|Income from charitable activities (continued)|||||
|---|---|---|---|---|
|Distribution
BFI
Arts Council England
Advocacy
BFI
Consultancy
BFI
Total income from charitable activities
Sub-total
Other income
Sub-total
Other income
Sub-total
Fees
Film hire and print transport|Unrestricted
£
-
-
10,295
-
~~f~~|2022
Total
£
£
83,909
83,909
27,987
27,987
-
10,295
2,350
2,350
114,246
124,541
30,310
30,310
30,310
30,310
-
-
-
20,605
37,165
37,165
37,165
57,770
1,418,405
1,648,349
Restricted||2021
Total
£
9
-
1,916
-|
||10,295
-|114,246
30,310|124,541
30,310|1,925
43,369|
||-
-
20,605
-|30,310
-
-
37,165|30,310
-
20,605
37,165|43,369
69,028
3,055
-|
||20,605|37,165|57,770|72,083|
||229,944|1,418,405|1,648,349|1,380,672|
The proportion of income from charitable activities derived from outside the UK amounted to 0.3% (2021-3%).
- 4 Other trading activities
|4
Other trading activities|||||
|---|---|---|---|---|
|5
6
Other
Other income
Income from investments
Bank interest
Desk space|Unrestricted
£
6,536|2022
Total
£
£
-
6,536
2022
Total
£
£
-
97
2022
Total
£
£
-
363
Restricted
Restricted
Restricted||2021
Total
£
-|
||Unrestricted
£
97|£
-
Restricted|2022
Total
£
97|2021
Total
£
239|
||Unrestricted
£
363|£
-
Restricted|2022
Total
£
363|2021
Total
£
-|
24
DocuSign Envelope ID: C9BA0274-D057-4808-9643-85BCA5969891
## Independent Cinema Office
Notes to the financial statements
For the year ended 31 March 2022
- 7 Analysis of expenditure
|Analysis of expenditure||||||||||
|---|---|---|---|---|---|---|---|---|---|
|Staff costs (Note 12)
Fees - Course leader/Speaker/Film maker/Project manager
Focus group/evaluation
Film hire
Filming & editing
Catering/hospitality/entertaining
Marketing and publicity
Couriers/transport
Production programming costs
Certification/accreditation
Venue hire
Bursaries
Hotel, travel & subsistence
Grants (Note 14)
IT/Web costs
Office costs
Premises costs
Depreciation
Audit
Annual report
Legal & professional
Bad debts
Bank charges & interest
Irrecoverable VAT
Trustees' training
Exchange loss
Total expenditure 2021|Programming
£
251,599
25,166
150
2,003
-
21,230
426
366
12,528
2,420
29,854
1,152
9,424
-
4,935
10,616
1,776
66,280
2,760
448
1,366
-
10,516
3,425
808
306|Training
£
253,596
103,479
4,000
-
3,554
1,702
2,077
120
12,403
3,754
5,232
3,300
13,861
11,122
6,375
9,984
1,790
66,807
2,782
451
3,477
800
10,479
3,452
814
309|Film Hub
South East
£
250,002
34,741
8,257
3,212
-
678
573
109
3,339
478
4,374
3,189
2,216
135,177
8,315
6,266
1,764
65,860
2,743
445
1,357
20
9,999
3,403
803
304|Advocacy
£
24,195
3,600
-
-
-
37
386
5
-
9
-
-
73
-
310
597
171
6,374
265
43
131
-
960
329
78
29|Distribution
£
55,210
14,189
-
10,585
-
84
2,779
2,291
4,293
20
6
-
360
-
1,617
4,973
389
14,543
606
98
300
21
2,952
753
177
68|Consultancy
£
8,612
150
-
-
-
13
13
2
-
3
-
-
26
36,898
110
212
61
2,269
94
15
47
-
342
117
28
10|Other
trading
activities
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,536
-
-
-
-
-
-
-
-
-|2022 Total
£
843,214
181,325
12,407
15,800
3,554
23,744
6,254
2,893
32,563
6,684
39,466
7,641
25,960
183,197
21,662
32,648
12,487
222,133
9,250
1,500
6,678
841
35,248
11,479
2,708
1,026|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|
||459,554|525,720|547,624|37,592|116,314|49,022|6,536|1,742,362|1,441,636|
||289,456|361,576|638,258|52,137|29,425|70,784|-|1,441,636||
Of the total expenditure, £321,505 was unrestricted (2021: £142,498) and £1,420,857 was restricted (2021: £1,299,138).
25
DocuSign Envelope ID: C9BA0274-D057-4808-9643-85BCA5969891
## Independent Cinema Office
## Notes to the financial statements
## For the year ended 31 March 2022
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
9
Staff costs
Statutory audit
Other audit
Foreign exchange loss
Certification/accreditation
Net income / (expenditure) for the year
Auditors' remuneration (excluding VAT):
This is stated after charging / (crediting):
Depreciation of tangible fixed assets
IT/Web costs
Office costs
Catering/ hospitality/entertaining
Couriers / transport
Legal and professional
Governance costs consist of:
Bank charges and interest
Impairment of property and refurbishment costs
Impairment of property
Marketing and publicity
Depreciation
Premises costs
Irrecoverable VAT
Governance
Audit fees
Exchange loss
Annual report
Trustees' training
Loss on disposal of fixed asset
Bank interest payable|2022
£
138,721
168
1,275
312
1,260
2,528
10,798
20,801
5,951
42,382
179,751
4,578
33,444
11,479
1,026
13,458|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|
||467,932|333,687|
||2022
£
9,250
1,500
2,708|2021
£
7,450
-
-|
||13,458|7,450|
||2022
£
42,382
179,751
-
32,942
9,250
-
1,026|2021
£
44,807
-
450
35,274
7,450
3,000
5,395|
- 10 Related party transactions
Mel Clarke, the sister of Becky Clarke, Head of Operations, was paid £3,150 (2021: £4,100) during the year for design work on various projects. At 31 March 2022 £1,650 (2021: £800) was outstanding and due to be paid. Simon Ward, trustee, was paid £475 for speaker and interview fees (2021:nil). At 31 March 2022 £150 was outstanding and due to be paid. In addition Vision Box was paid £72 for reimbursement of ticket sales during National Lottery Cinema Weekend (2021: Nil) and £54 for a training & professional development bursary to attend This Way Up conference in December 2021. During year ended 31 March 2021 £15,806 was also awarded to Vision Box through the Resilience Award Fund and Film Exhibition Fund. Simon Ward, Trustee, is co-director/owner with his wife Corinna Ward. Suman Bhuchar, the sister of Sudha Bhuchar, trustee, was awarded a bursary of £117 to pay for train tickets to attend ID Screening Days.
## 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.
26
DocuSign Envelope ID: C9BA0274-D057-4808-9643-85BCA5969891
## Independent Cinema Office
## Notes to the financial statements
## For the year ended 31 March 2022
- 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
Occupational Health Insurance
Other staff costs
Employer’s contribution to defined contribution pension schemes
Salaries and wages
Social security costs
Freelance staff
Staff recruitment|2022
£
700,887
65,401
35,461
18,270
1,841
13,971
5,495
1,707
180|2021
£
635,940
59,861
31,254
360
-
3,549
7,025
-
-|
||843,213|737,989|
One employee received employee benefits (excluding employer pension costs) during the year in the band £60,000 - £70,000 (2021:Nil).
The total employee benefits including employer national insurance and pension contributions of the key management personnel were £253,060 (2021: £241,964).
The charity trustees were not paid and did not receive any other benefits from employment with the charity in the year (2021: £nil).
No expenses were paid to trustees during the year (2021: £nil).
- 13 Staff numbers
The average number of employees (head count based on number of staff employed) during the year was as follows:
|14
Paid from restricted funds:
Balik Arts
Bedford Players Trust
Bute Street
Electric Palace, Harwich
Fabrica
Ipswich
Riverside
Sunrise Studios
Training
Distribution
Grants
Payments to Institutions
Payments to Institutions analysed as follows:
Training
Support
Programming
Film Hub South East
Consultancy
Advocacy|2022
No.
4.7
7.7
5.8
0.4
0.9
0.2
3.3|2021
No.
4.1
4.8
6.3
0.5
0.4
0.3
3.8|
|---|---|---|
||23.0|20.2|
||2022
£
183,197|2021
£
318,101|
|||2022
£
1,645
1,917
960
1,630
1,400
1,350
614
1,606|
|||11,122|
27
DocuSign Envelope ID: C9BA0274-D057-4808-9643-85BCA5969891
## Independent Cinema Office
## Notes to the financial statements
## For the year ended 31 March 2022
|For the year ended 31 March 2022||
|---|---|
|14
Grants (continued)
Anglo Asiatic Arts and Heritage Alliance (AAAHA)
Babylon Arts
Balik Arts
Bute Street Festival
Cambridge Film Festival
Chichester Cinema at New Park
Chichester Film Festival
CINECITY
Cine-Sister: Gateway Film Festival
Creative Arts East
Depot Cinema
Film Hub Wales - D&I
Gulbenkian
Ipswich Film Theatre
Margate Film Festival
Norden Farm Centre Trust Ltd
Norwich Film Festival
The Place, Bedford
The Riverside
Ropetackle Arts Centre
South Hill Park Arts Centre
The Theatre Chipping Norton
videoclub: Film Explorers Festival
Violet Pictures
Watersprite Film Festival
Women Over Fifty Film Festival
Worthing Theatres & Museum
Open Access Fund
Project 49
Total Film Hub South East
Consultancy - National Lottery Cinema Weekend
Grants awarded to 69 different institutions totalling
Diversity
Bute Street Film Festival
The Riverside
Film Exhibition Fund
Young Film Programmers
Film Hub South East|2022
£
700|
||2022
£
1,750|
||2022
£
2,000
7,000
2,500
9,250
22,000
2,340
12,500
10,000
1,250
14,920
1,600
2,500
2,250
(1,750)
3,000
5,620
4,085
5,000
750
1,865
3,000
2,400
2,500
6,000
8,000
3,500
(1,053)|
||133,027|
||2022
£
(300)|
||135,177|
||2022
£
36,898|
28
DocuSign Envelope ID: C9BA0274-D057-4808-9643-85BCA5969891
## Independent Cinema Office
## Notes to the financial statements
## For the year ended 31 March 2022
|For the year ended 31 March 2022||||||
|---|---|---|---|---|---|
|15
Long
leasehold
property
Leasehold
refurb -
ishment
£
1,308,014
65,082
-
-
1,308,014
65,082
39,240
6,437
26,160
6,508
-
-
127,614
52,137
193,014
65,082
1,115,000
-
1,268,774
58,645
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
Deferred income comprises of grant and income for events taking place in
consultancy fees received in advance of the work being carried out.
Taxation and social security
Other creditors
Deferred income
Secured bank loans
At the end of the year
Disposals in year
Accrued income
Trade creditors
Creditors: amounts falling due within one year
Prepayments
Trade debtors
Debtors
Tangible fixed assets
Grants payable
Impairment
Charge for the year
Depreciation
Other debtors
All of the above assets are used for charitable purposes.
At the start of the year
At the start of the year
Net book value
At the end of the year
At the end of the year
Disposals in year
Cost or valuation
At the start of the year|Long
leasehold
property
1,308,014
-|Leasehold
refurb -
ishment
£
65,082
-|Database
and website
£
35,973
-|Fixtures,
fittings &
equipment
£
30,780
(900)|Total
£
1,439,849
(900)|
||1,308,014|65,082|35,973|29,880|1,438,949|
||39,240
26,160
-
127,614|6,437
6,508
-
52,137|30,199
5,774
-
-|19,041
3,940
(900)
-|94,917
42,382
(900)
179,751|
||193,014|65,082|35,973|22,081|316,150|
||1,115,000|-|-|7,799|1,122,799|
||1,268,774|58,645|5,774|11,739|1,344,932|
||||2022/23 and|2022
£
52,987
281
15,101
27,078|2021
£
24,532
10,400
10,318
40,233|
|||||95,447|85,483|
|||||2022
£
60,440
98,637
61,732
45,519
-
30,921
5,241
123,342|2021
£
43,892
49,883
49,875
88,740
8,663
12,546
3,310
74,157|
|||||425,832|331,066|
|||||2022
£
74,157
(22,242)
71,427|2021
£
317,575
(312,575)
69,157|
|||||123,342|74,157|
|||||2022
£
177,935
669,863|2021
£
218,615
727,381|
|||||847,798|945,996|
29
DocuSign Envelope ID: C9BA0274-D057-4808-9643-85BCA5969891
## Independent Cinema Office
## Notes to the financial statements
## For the year ended 31 March 2022
19. Creditors: Amounts falling due after more than one year (continued)
- 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 4.4% and the loans with Big Issue Invest are charged at 7% 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 £1,115,000. The loans are secured with fixed and floating charges over the assets of the charity. At 31 March 2022 following the impairment of the property Charity Bank's loan to value covenant was in breach however this was remedied during July 2022 when a repayment of £51,711 was made. The carrying amount of loan in breach was £836,067 at 31 March 2022.
- 20a Analysis of net assets between funds (Current year)
|Creditors due after more than one year
Film Hub South East
Arts Council England -
Second Sight
Arts Council England -
National Trails
National Lottery Cinema Weekend
Total restricted funds
Total designated funds
General funds
Analysis of net assets between funds (Prior
BFI - Britain on Film
Tangible fixed assets
Net current assets
Creditors due after more than one year
Restricted funds:
British Film Institute
Net assets at the end of the year
Tangible fixed assets
Net current assets
Devloping Your Own Film Festival 2022
ScreenSkills
Loan repayment
Unrestricted funds:
Tours -
BFI - The Camera is Ours
Miles Ketley filmmakers' bursary fund
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|At the start of
the year
£
46,948
127,413
59,380
1,000
7,285
-
-
19,058
-
1,263
(3,000)
-
43
year)|General
unrestricted
£
-
97,356
-|£
1,122,799
73,074
(847,798)
Designated|Restricted
£
-
312,474
-|Total funds
£
1,122,799
482,904
(847,798)|
|---|---|---|---|---|---|
|||97,356|348,075|312,474|757,905|
|||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|
|||Incoming
resources &
gains
£
458,696
276,678
535,000
-
(53)
4,985
9,222
68,725
-
-
3,000
24,987
37,165|Outgoing
resources &
losses
£
(498,701)
(314,280)
(470,037)
(992)
(7,285)
(4,985)
(9,222)
(76,668)
-
(324)
-
(1,465)
(36,898)|Transfers
£
42,031
3,502
-
(8)
53
1,121
-
142
8,695
-
-
-
-|At the end of
the year
£
48,974
93,313
124,343
-
-
1,121
-
11,257
8,695
939
-
23,522
310|
||259,390|1,418,405|(1,420,857)|55,536|312,474|
||349,053
-
95,000
-|-
-
-
-|(222,133)
-
-
-|49,444
51,711
10,000
15,000|176,364
51,711
105,000
15,000|
||444,053|-|(222,133)|126,155|348,075|
||126,925|251,494|(99,372)|(181,691)|97,356|
||570,978|251,494|(321,505)|(55,536)|445,431|
||830,368|1,669,899|(1,742,362)|-|757,905|
- 20b Analysis of net assets between funds (Prior year)
- 21a Movements in funds (Current year)
The narrative to explain the purpose of each fund is given at the foot of the next note.
30
DocuSign Envelope ID: C9BA0274-D057-4808-9643-85BCA5969891
## Independent Cinema Office
## Notes to the financial statements
## For the year ended 31 March 2022
21b Movements in funds (Prior year)
|e year ended 31 March 2022
Movements in funds (Prior year)||||||
|---|---|---|---|---|---|
|Big Issue Access
Other BFI funded tours
National Lottery Cinema Day
Total restricted funds
Total designated funds
General funds
Arts Council England
Unrestricted funds:
Restricted funds:
Film Hub South East
Designated funds:
Fixed assets
Sustainability fund
MUBI bursary fund
Total funds
Other training
British Film Institute
Total unrestricted funds
Britain on Film
Developing Your Own Film Festival 2020
BFI - Advice, information, support and
training|At the start of
the year
£
-
96,176
86,717
1,000
-
4,315
-
19,012
3,910
(1,630)
43|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|
## 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.
## 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 2021/22 we distributed funds through 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 which will take place in August 2022 in Edinburgh. An on line version was held in March 2021.
## ScreenSkills
Funding received to run an on line course - Data Driven Film Exhibition. In the prior year online versions of FEDS Elevate and DDM courses were provided.
## Other training
Funding received from FAN. During 2021/22 we ran a the Women's Leadership course and also continued the FAN Festivals training which commenced in 2020/21.
## **Big Issue Access**
A donation was received from Big Issue Access Ltd to part repay a loan with Big Issue Invest.
31
DocuSign Envelope ID: C9BA0274-D057-4808-9643-85BCA5969891
## Independent Cinema Office
Notes to the financial statements
## For the year ended 31 March 2022
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
Second Sight which celebrated the UK's Black Workshop Movement continued into 2020/21.
## Arts Council England
Funding received to commission three new films from British Artists for our National Trails tour.
## National Lottery Cinema Weekend / Day
Funding received from Camelot to repay venues the ticket value of tickets given away on National Lottery Cinema Weekend in June 2021.
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.
## Loan repayment
Due to a decrease in the value of the property and its subsequent impairment in these financial statements, £51,711 was repaid to Charity Bank in July 2022 to ensure that the Charity remained within the loan covenants. An amount has been set aside to account for this.
## Sustainability fund
An amount set aside to pay redundancy costs in the event of the closure of the charity.
## Miles Ketley filmmakers' bursary fund
An amount set aside to pay bursaries to filmmakers to enable them to attend industry events to aid their development.
## 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 2022 there were 13 (2021: 7) guarantees in place.
32