**REGISTERED COMPANY NUMBER: 05626997 (England and Wales) REGISTERED CHARITY NUMBER: 1113259**
**Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 December 2020 for Saffron Walden Community Cinema Limited Trading as Saffron Screen and Royston Picture Palace**
## **Saffron Walden Community Cinema Limited**
**Contents of the Financial Statements for the Year Ended 31 December 2020**
||Page|
|---|---|
|Report of the Trustees|1 to 6|
|Independent Examiner's Report|7|
|Statement of Financial Activities|8|
|Balance Sheet|9 to 10|
|Notes to the Financial Statements|11 to 17|
|Detailed Statement of Financial Activities|18 to 19|
## **Saffron Walden Community Cinema Limited**
## **Report of the Trustees**
## **for the Year Ended 31 December 2020**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of 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 2015).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
Saffron Screen and Royston Picture Palace are independent community cinemas screening a wide range of films and events, seeking through cinema to entertain, educate and create a shared experience to improve the quality of life for everyone in Saffron Walden, Royston and the surrounding areas.
The Charity's objects are:
- to advance the education of the public in the knowledge, understanding and appreciation of the arts, particularly the art of films and allied visual techniques;
- to advance the education of pupils at Saffron Walden County High School ("SWCHS") by providing and assisting in the provision of facilities for education at the school; and
- to promote for the benefit of the inhabitants of Saffron Walden, Royston and the surrounding areas the provision of recreational and other leisure time facilities in the interest of social welfare and with the object of improving their conditions of life.
## **Significant activities**
The primary activity is the provision of cinema screenings at the cinema auditorium in Saffron Walden (located in the Saffron Walden County High School) and at the auditorium in Royston (located in Royston Town Hall). Saffron Screen offers between six and eight screenings each week from Friday night to Monday night as well as extra screenings during the school holidays and Arts on Screen screenings, which are often midweek. Royston Picture Palace offers fewer screenings at present, predominantly at weekends.
Both cinemas show a range of films including mainstream blockbusters, the Oscar contenders, children's, art-house and foreign language films, documentaries and archive material. Saffron Screen also aims to enhance the cinema experience by offering guest speakers, hosted discussions and other events (e.g. talks and workshops). In addition, our Arts on Screen strand provides live and encore screenings of plays, operas, ballets, art exhibitions and concerts broadcast from their venues to the cinema by satellite. It is our intention to also run similar events at RPP. The cinema also runs "Pop-up" screenings in community venues in Saffron Walden and its surrounding villages. In 2020 we continued our series of film courses despite the operational difficulties of the COVID-19 pandemic, in order to educate the local residents and students at SWCHS. Courses are run by some of the countries leading academics in film studies. The Trustees are grateful to SWCHS and Saffron Hall for their support and co-operation over shared use of the school premises, and to the Saffron Walden Tourist Information Centre for their hard work and support selling tickets for Saffron Screen. Further, we are also grateful for the support of the Royston Town Council and, in particular, the staff at the Royston Town Hall for providing the box office functions during the week.
2020 began very encouragingly at both venues. In particular, event cinema performed well with titles such as 42nd Street, The Sleeping Beauty, La Bohème, and Cyrano de Bergerac all attracting near sell out audiences. Films that did well included Knives Out, The Two Popes, 1917, Little Women and Parasite.
In March 2020 the COVID-19 pandemic caused the closure of both cinemas until September. Social distancing then reduced the number of available seats limiting capacity at Saffron Screen to around 55 and at RPP to 35. The cinemas were closed again at the start of November with only Saffron Screen re-opening for a short time in December. During the periods of closure the staff were put on furlough and as a result, no redundancies were necessary. During closure we created Saffron Screen on the Sofa which provided a number of benefits to our customers including, curated watch lists, online streamed content, discussions via Facebook, watch-alongs and online Q&As. In fact this initiative drew praise from the BFI “… how great it is to see you have been able to keep audiences engaged via a less safe programme, your Saffron Screen on the Sofa and the free online courses”.
Funding from March has been provided by the Arts Council (administered by the BFI for independent cinemas) and Uttlesford District Council. This has enabled us to end the year without any significant losses. We are very grateful for these grants and also for smaller donations from some of our customers.
Page 1
## **Saffron Walden Community Cinema Limited**
## **Report of the Trustees**
## **for the Year Ended 31 December 2020**
## **OBJECTIVES AND ACTIVITIES**
## **Public benefit**
Charity Trustees have a duty to report in the Trustees’ Annual Report on the Charity’s public benefit. They should demonstrate that they are clear about the benefits that are generated by the activities of the Charity. The Charity Commission guidance on public benefit in Section 4 of the Charities Act 2011 has been noted in preparing this Annual Report.
Saffron Screen and Royston Picture Palace welcomes audiences from all backgrounds. We are committed to serving the whole community by providing a wide range of films and other events at reasonable prices, including a range of concession tickets. In particular, we have negotiated with the distributors of Event Cinema to allow us to offer tickets for those who are 18 & under at reduced rates to allow young people local access to national and international opera, theatre, ballet and exhibitions. We have also introduced in early 2018 significantly discounted tickets on all films for audience members between the ages of 16 to 30 to encourage increased participation of that age group. In addition, we offer concessionary prices for those over 65 years old, students, unemployed, registered disabled people, Uttlesford Concession Card holders and military personnel. For customers with disabilities we provide audio description for partially sighted/blind customers, and individual hearing loops for those with hearing difficulties. Saffron Screen and Royston Picture Palace continues its commitment to social responsibility through special screenings for those living with autism and dementia, the latter being financially supported by Saffron Walden Dementia Action Alliance. We continue to consider and respond to all feedback from our audience, whether positive or negative, and to look for ways to improve our offering.
## **ACHIEVEMENT AND PERFORMANCE**
## **Charitable activities**
The objectives of the charity at the start of 2020 were:
- to continue to provide an exciting and varied programme of films, special events and educational activities;
- to seek to reach out to new and under-served audiences and to develop our existing audience;
- to generate core income of £225,000 and generate break even free cash flow per annum to maintain self-sufficiency;
- to continue good corporate governance by ensuring that all policies, procedures and documentation are up to date;
- and to consider options for moving or expanding the current operations to serve the growing demand from the local community;
In 2020, the amount of film and events screened was severely reduced due to the COVID-19 pandemic. We were, however, able to meet the above objectives within the limitations imposed.
## **Key Performance Indicators:**
The Trustees set four Key Performance Indicators for the cinema, annual key core income, customer satisfaction, average audience numbers and number of speakers, outreach and education events. Due to the COVID-19 pandemic any figures in these categories are meaningless.
We will, however, continue to monitor and review these KPIs in 2021 once we can re-open to ensure that we provide a broad range of events and to maintain or improve these figures.
## **Audience development**
We have had a very limited opportunity to develop our audience in 2020. However, digitally based offering, Saffron Screen on the Sofa did engage a number of customers who may not have been part of our original core audience.
Page 2
## **Saffron Walden Community Cinema Limited**
## **Report of the Trustees**
## **for the Year Ended 31 December 2020**
## **FINANCIAL REVIEW**
## **Financial position**
The Statement of Financial Activity for the year ended 31 December 2020 shows total incoming resources of £223,153 (2019: £406,067) and total resources expended of £219,523 (2019: £420,930) resulting in a net surplus of £3,630 (2019: net deficit £14,863).
During the financial year to 31 December 2020, operations were significantly impacted due to COVID-19. For much of the financial year the organisation has been unable to operate, with the financial position being impacted as a result. Incoming resources from cinematic operations dropped by 48%. We are thankful to the Arts Council (administered by the BFI for independent cinemas) and Uttlesford District Council for grant support in the year to allow us to operate, when possible, within social distancing and restricted operating guidelines. The grant support has allowed us to cover our losses during the COVID-19 pandemic and this will continue into 2021.
Total resources expended have also been impacted by COVID-19. Where possible, the organisation has made use of central government support schemes, such as the Job Retention Scheme, to minimise costs while not operating. There are costs the organisation incurs that are not able to be stopped when the cinematic operations are forced to close, and for 2020 we have been reliant on support grants to cover these costs. Due to the successful applications with the Arts Council and Uttlesford Council, we have been able to demonstrate a viable business model once we are fully operational again, and as a result minimise our losses during the COVID-19 pandemic. The majority of costs within the organisation qualified for the support grants.
For 2020 the organisation has been able to generate a surplus of £3,630 (2019: net deficit £14,863). This has largely been achieved through very strong attendance numbers in January and February 2020, before the cinematic operations were forced to close. From 1 April 2020 we have been able to minimise losses through support grants, in turn keeping our reserves intact for future years.
Total funds as at 31 December 2020 were £183,741 (2019: £180,111) with total unrestricted funds of £139,137 (2019: £136,171). Details of the restricted funds can be found in the notes to the financial statements.
As at the date of signing this report, the organisation has successfully applied for and been awarded further grants to support the opening of cinematic operations during social distancing regulations to 30 June 2021. The organisation is also able to use central government scheme such as the Job Retention Scheme until the end of such financial aid. After these financial support grants have elapsed, the charity will be financially independent once again. The Trustees recognise the impact that COVID-19 has had on the industry, and are meeting frequently to see the organisation through the next stage of it operations. In 2021 the charity will continue to monitor its costs and income to ensure a viable and secure future for the cinema.
## **Reserves policy**
The Trustees are responsible for maintaining a level of reserves that is appropriate for the charity. The reserves policy is to hold approximately two months of fixed costs (primarily to cover the costs in winding up the operations of the charity), and 50% replacement cost of equipment. In total it is approximately £100,000. The reserve policy was reviewed and updated in 2019.
## **Going concern**
During the year, the charity had positive net assets and has significant cash reserves. The Trustees have no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of the charity to continue as a going concern. Accordingly, the financial statements have been prepared on a going concern basis.
Page 3
## **Saffron Walden Community Cinema Limited**
## **Report of the Trustees**
## **for the Year Ended 31 December 2020**
## **FINANCIAL REVIEW**
## **Principal risks and uncertainties**
Since the balance sheet date, the operations of Saffron Screen and Royston Picture Palace ceased temporarily due to the COVID19 pandemic and the “third lockdown”. As at the date of signing the Report of the Trustees the sites are open but under social distancing restrictions. The reduced capacity of the sites will have a significant impact on the 2021 financial results and presents an uncertainty over the future demand of the services provided. The Trustees are meeting regularly to monitor the ongoing situation and to put in place plans to protect the organisation, its customers and staff. To mitigate some risks the organisation has made use of various government schemes to support ongoing costs. All available funding opportunities will be assessed by the Trustees to ensure the viability of the organisation in the long term.
The Trustees have identified a number of other key risks which could affect our future performance, the most significant of which are:
- Lower attendance figures due to economic uncertainty, lower disposable incomes or alternative entertainment options;
- Competition from other cinemas which offer films on release date, improved seating and advanced facilities;
- Lack of control over the cinema auditorium building which is owned by SWCHS;
- Succession planning and governance challenges as we transition from a community start up to a more complex mature organisation.
Steps being taken to address these strategic risks are:
- to continually evaluate the films and events the cinema shows as well as continued dialogue with the service users to ensure the right service is being provided to the community
- a rolling programme agreed with SWCHS of seat refurbishment which is ongoing; and we now offer wine and beer on Friday and Saturday evenings and at selected "Event Cinema" screenings to enhance the cinema experience as a night out;
- to continue to have a good relationship with SWCHS and are liaising with them and with Saffron Hall;
- to continue to assess opportunities to develop the cinema further.
## **FUTURE PLANS**
In the short term, the cinema will continue to operate at its current location and offer the same service to the community. However, the current facilities the cinema operates from are a limiting factor in expanding and improving our offering, which is vital for the future of the charity. Our attempts to find suitable alternative premises in or around Saffron Walden which would both meet the needs of our core audience and be commercially viable remains a challenging objective. We continue to look at various options and are working closely with both the Uttlesford District Council and the Saffron Walden Town Council.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The organisation is a charitable company limited by guarantee, incorporated on 17 November 2005, registered as a charity on 14 March 2006, which commenced trading on 20 May 2006. The company was established under a Memorandum of Association dated 31 October 2005 which established the objects and powers of the charitable company and is governed under its Articles of Association, also dated 31 October 2005. In the event of the company being wound up members are required to contribute an amount not exceeding £10.
## **Recruitment and appointment of new trustees**
The initial Trustees of the Charity were recruited from the committee formed to start a cinema in Saffron Walden; subsequently vacancies have been advertised as required. The Board continue to monitor the requirement of new Trustees and appoint where a skills gap is recognised. One of SWCHS' Senior Staff participates as an observer in Board discussions to assist deliberations on maximising educational opportunities from the cinema's programming schedule.
Under the requirements of the Memorandum and Articles of Association, one-third of the directors retire at each annual general meeting and may stand for re-election. Two directors retired during 2020 and were re-elected. One director resigned in April. A new trustee was recruited and appointed.
Page 4
## **Saffron Walden Community Cinema Limited**
## **Report of the Trustees**
**for the Year Ended 31 December 2020**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Organisational structure**
The Trustees are responsible for the management of the charity, including proper use of its funds. The Trustees delegate the powers for the day-to-day running of the cinema to the management committee. The Trustees meet quarterly to review the actions of the management committee and make strategic decisions.
## **Induction and training of new trustees**
Our Trustees bring a wide range of skills to the charity including cinema programming, marketing, finance, human resources, legal, and business management. As the organisation develops and as the external environment changes, we keep under review the skills we need. To ensure this is up to date we carried out a skills audit at the start of 2019. When we recruit, we utilise the results of the skills audit to identify the qualities sought in potential candidates. Opportunities are advertised and the Human Resources sub-committee manages the recruitment process, resulting in recommendations to the full Board. Potential new Trustees are invited to meet with existing Trustees and key management personnel to gain an understanding of their respective roles and the part they play in the decision-making processes, and are provided with appropriate background documentation (e.g. the business plan, recent financial performance, and Memorandum and Articles of Association) together with access to Charity Commission guidance notes. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.
## **Key management remuneration**
The directors of Saffron Walden Community Cinema Limited are the charity's Trustees, and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. All directors give their time freely except where their specialist skills are required. Details of directors' expenses plus related party transactions are disclosed in note 8 to the financial statements.
The pay of all staff is reviewed annually and normally increased in line with inflation. In view of the nature of the charity, the directors benchmark against pay levels in other provincial cinemas of a similar size.
## **Related parties**
None of our trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee or senior manager of the charity with a production company, distributor, performer or exhibitor must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. In the current year, no such related party transactions were reported.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
05626997 (England and Wales)
## **Registered Charity number**
1113259
## **Registered office**
Market House 10 Market Walk Saffron Walden Essex CB10 1JZ
Page 5
Saffronwaldon Comn¥Jn"
nema Umlted
REFERENCE ANO ADMIN15tRATIVE DETAILS
Tnstees
8 P Willmott
Ms C R Sawford
D A Early FCCA
M5 AJ Lightstone
S Inkley
Mrs K A Reed
Chair
Deputy (hair
Finance Director
- resigned 9.4.20
-opInted 20.3.20
Company Secretarles
Ms C R Sawford
1ndeftdet ex3mSner
Mr Simon David Needham FCCA
Association of Chartered Cutffjed A(tountants
Bankers
Barclays Bank UK pk
10 Market Walk
Saffron Walden
Essex
CBIO IJZ
This rewrt has prepared in accordance with the spe£o1 pmwsK)ns of Part 15 of the Companies Act 21Y)6 relating to small
compaf)ies.
Approve(I by order of the board of trustees on...
. aThl signed on its beha by..
8 P Willmott -Trustee
Page6
ndent Exami5
Independent examinee5 report to tht ofsaffton Wabdtn CommvThty Clrema Llmited I'the Company?
I report to the charitytrustees on my exatHination of theaccounts of the Company for the year ended 31 December 2020.
Responslblltlies artd basis of report
A5 the charity's trustees of the Company land afso its directors for the purposes of company lawl you are nsible for the
preparatK)n of theaccounts in accordan withthe requirements oftheCompaniesAct 2(116 Ilhe 2¢XJ6 Act'l.
Havin8 satisfted myself thai ihe tOU5 of the Company are requTrred to be audited wxler Part 16 of the 2006 Att and are
eligible for independent examinatFon, I report in respect of my examinatxin of your chartty's accountsas carried out under settion
145 of the Charities Att 2011 Iyhe 2011 Act'l. In carrying out my examination I have followed the Direttn$ given by the Char(ty
Commission undersection 145151 Ibl of the 2011 A£t.
Independent exarnlnerfs thtemert
Since your chartty's gross income excwled £250.C¥XJ your examiner must be a member of o listed tody. I can confirm that l am
qualtfied to undertake theexaminatKtrn be£ausel ama rlStered membwo*AswiatKJnofChartered Certified Accountaatswhich
rs one of the lied bodies
I havecompleted my e¥amination. I confirn7thatno matter5 havecometo myattention in cOnntIon with theexamination gin
mecause to belie¥e:
a¢countTrn8 records were not kept in reSpt of the Company 35 requi by 5tttK)n 386 of the 2( Act.. or
the accounts do r1 accord with those records: or
the accounts do not compty th the accountirÉ ra)ulrementsof Settn 3% of the 2(6 Att otherthan any requirement
that the accountsgive a true and fair ¥iew which s not è matterconsidered as part of an independent examination,. or
the accounts have not been prepared in accc*dance wtth the metho(ts and principles of the Ststement of Recommended
Practice for accounting and reportin8 by charities lapplÈcabSe to charities preparin8theiraccounts tn accordattce with the
Financial Reporting Standard applicable in the UK and Rewblic of Irelaftd IFRS 10211.
I have no concernsand havecome across no other mattws intonnectionwrththeexaminatiDnto whh attertion should bedrawn
in this report In dertO enable a proper understandin8 ofthe accountsto be re&thed
Mr Simon Dawd Needham FCCA
knociation of Chartered Certified Accountants
LS.O8.
Page 7
## **Saffron Walden Community Cinema Limited**
## **Statement of Financial Activities for the Year Ended 31 December 2020**
|||||31.12.20|31.12.19|
|---|---|---|---|---|---|
|||Unrestricted|Restricted|Total funds|Total funds|
|||funds|funds|||
||Not|£|£|£|£|
||es|||||
|**INCOME AND ENDOWMENTS FROM**||||||
|Donations and legacies||15,767|-|15,767|9,901|
|**Charitable activities**||||||
|Cinematic operations||225,148|45,867|271,015|393,602|
|Investment income|2|1,575|-|1,575|2,564|
|**Total**||242,490|45,867|288,357|406,067|
|**EXPENDITURE ON**||||||
|Raising funds||21,205|-|21,205|28,522|
|**Charitable activities**||||||
|Cinematic operations||144,570|46,935|191,505|295,868|
|Other||70,749|1,268|72,017|96,540|
|**Total**||236,524|48,203|284,727|420,930|
|**NET INCOME/(EXPENDITURE)**||5,966|(2,336)|3,630|(14,863)|
|**Transfers between funds**|11|(3,000)|3,000|-|-|
|||||||
|**Net movement in funds**||2,966|664|3,630|(14,863)|
|**RECONCILIATION OF FUNDS**||||||
|**Total funds brought forward**||136,171|43,940|180,111|194,974|
|**TOTAL FUNDS CARRIED FORWARD**||139,137|44,604|183,741|180,111|
The notes form part of these financial statements
Page 8
## **Saffron Walden Community Cinema Limited**
## **Balance Sheet At 31 December 2020**
|||||31.12.20|31.12.19|
|---|---|---|---|---|---|
|||Unrestricted|Restricted|Total funds|Total funds|
|||funds|funds|||
||Not|£|£|£|£|
||es|||||
|**FIXED ASSETS**||||||
|Tangible assets|6|13,668|-|13,668|18,160|
|**CURRENT ASSETS**||||||
|Stocks|7|1,250|-|1,250|1,250|
|Debtors|8|3,063|-|3,063|30,626|
|Investments|9|74,956|-|74,956|118,434|
|Cash at bank||70,991|44,604|115,595|83,763|
|||150,260|44,604|194,864|234,073|
|**CREDITORS**||||||
|Amounts falling due within one year|10|(24,791)|-|(24,791)|(72,122)|
|**NET CURRENT ASSETS**||125,469|44,604|170,073|161,951|
|**TOTAL ASSETS LESS CURRENT LIABILITIES**||||||
|||139,137|44,604|183,741|180,111|
|**NET ASSETS**||139,137|44,604|183,741|180,111|
|**FUNDS**|11|||||
|Unrestricted funds||||139,137|136,171|
|Restricted funds||||44,604|43,940|
|**TOTAL FUNDS**||||183,741|180,111|
The notes form part of these financial statements
continued...
Page 9
£1m8 rnited
The charitable company entit to exernptn from audit under SeCtn 477 of the Companies Art 20[ for the year ended
31 December2020.
The rnernbers have not rUired the companyto obtain an alIt ofits finanL7al staternents forthe year ended 31 December 2020
in accordance with Section 476 of the Companies Act 26.
The trnstees acknowledge their reswnsibilttiesfor
lal
ensuring that the charitsble company keeps accountinE record5that comply7•ith seCtns 386 and 387 of the Companies
Att 2(K16 at
preparing financial statements which gNe a and fabr of the state of affairs of the charitabje company as at the
end of each finanoal yeaf and of fts surplus or deficit for each finanaal year in accordance with the requirements of
5eciions 394 and 395 and which otherwise compty wtth the requirttnents of the Companie5 Act 211)6 lating to financial
statements. so far as applicableto the charitable companv.
These financial statements have been prepared in acc(dance with the pro¥isw)ns applicable to charitsble companies subject to
the Small companies re8trne.
14 2011
The fianCial statements were approved by the Board of Tnistees on ............................................. and were signed on its beha
D A Earfy Fc-rrUStee
Page 10
## **Saffron Walden Community Cinema Limited**
**Notes to the Financial Statements for the Year Ended 31 December 2020**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
## **Going Concern**
The trustees have assessed whether the use of going concern is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. After making enquiries, the trustees have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.
## **Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.
Income from government and other grants, whether capital grants or revenue grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.
Income received in advance of a cinematic performance is deferred until the criteria for income recognition are met.
Income from cinematic operations is the amount derived from the provision of goods and services, net of VAT.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
|Projection equipment|- 20% on cost and 10% on cost|
|---|---|
|Seating and screen|- over the life of the license|
|Fixture, fittings & computers|- 25% on cost and 33% on cost|
|Motor vehicles|- 25% on cost|
The notes form part of these financial statements
Page 11
## **Saffron Walden Community Cinema Limited**
## **Notes to the Financial Statements - continued for the Year Ended 31 December 2020**
## **1. ACCOUNTING POLICIES – continued**
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **2. INVESTMENT INCOME**
||31.12.20|31.12.19|
|---|---|---|
||£|£|
|Deposit account interest|1,575|2,564|
## **3. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
||31.12.20|31.12.19|
|---|---|---|
||£|£|
|Depreciation - owned assets|7,058|7,870|
## **4. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.
## **Trustees' expenses**
Travel costs and expense reimbursements amounting to £nil (2019: £555) were paid to nil (2019: 1) Trustees.
No Trustee, except Mr. B. P. Willmott, or other person related to the charity had any personal interest in any contract or transaction entered into by the charity, during the year. Distinctive Consulting Limited, a company which Mr. B. P. Willmott has significant control of, was paid £nil (2019: £899) during the year for specialist technical services.
## **5. STAFF COSTS**
The average monthly number of employees during the year was as follows:
||31.12.20|31.12.19|
|---|---|---|
|Administration and front of house|22|20|
No employees received emoluments in excess of £60,000.
Page 12
## **Saffron Walden Community Cinema Limited**
## **Notes to the Financial Statements - continued**
## **for the Year Ended 31 December 2020**
|**6.**
**TANGIBLE FIXED ASSETS**
Projection
equipment
Seating and
screen
Fixture, fittings
& computers
Motor vehicles
£
£
£
£
**COST**
At 1 January 2020
169,371
43,851
18,507
7,880
Additions
-
1,068
1,498
-
At 31 December 2020
169,371
44,919
20,005
7,880
**DEPRECIATION**
At 1 January 2020
164,749
38,579
15,823
2,298
Charge for year
1,515
1,620
1,953
1,970
At 31 December 2020
166,264
40,199
17,776
4,268
**NET BOOK VALUE**
At 31 December 2020
3,107
4,720
2,229
3,612
At 31 December 2019
4,622
5,272
2,684
5,582
**7.**
**STOCKS**
31.12.20
£
Stocks
1,250
**8.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
31.12.20
£
Trade debtors
13
Other debtors
592
Prepayments
2,458
3,063
**9.**
**CURRENT ASSET INVESTMENTS**
31.12.20
£
At 1 year's notice
-
95 days' notice
54,355
35 days' notice
20,601
74,956|Totals
£
239,609
2,566
242,175
221,449
7,058
228,507
13,668
18,160
31.12.19
£
1,250
31.12.19
£
17,642
5,234
7,750
30,626
31.12.19
£
65,000
53,434
-
118,434|
|---|---|
Page 13
## **Saffron Walden Community Cinema Limited**
## **Notes to the Financial Statements - continued**
## **for the Year Ended 31 December 2020**
## **10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
||31.12.20|31.12.19|
|---|---|---|
||£|£|
|Deferred ticket income|2,039|21,273|
|Trade creditors|3,220|20,650|
|Social security and other taxes|1,597|3,128|
|VAT|(1,735)|10,551|
|Other creditors|50|595|
|Other deferred income|14,808|7,410|
|Accrued expenses|4,812|8,515|
||24,791|72,122|
## **11. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
Designated fund
**Restricted funds**
Digital equipment
Auditorium fund
BFI Safety Grant
BFI Sustainability Grant
**TOTAL FUNDS**|At 1.1.20
Net movement
in funds
Transfers
between funds
At 31.12.20
£
£
£
£
110,935
5,966
(3,000)
113,901
25,236
-
-
25,236
136,171
5,966
(3,000)
139,137
7,905
(1,268)
-
6,637
36,035
(1,068)
3,000
37,967
-
-
-
-
-
-
-
-
43,940
(2,336)
3,000
44,604
180,111
3,630
-
183,741|
|---|---|
Page 14
## **Saffron Walden Community Cinema Limited**
## **Notes to the Financial Statements - continued**
## **for the Year Ended 31 December 2020**
## **11. MOVEMENT IN FUNDS - continued**
Net movement in funds, included in the above are as follows:
|
**Unrestricted funds**
General fund
**Restricted funds**
Digital equipment
Auditorium fund
BFI Safety Grant
BFI Sustainability Grant
**TOTAL FUNDS**|Incoming
resources
Resources
expended
Movement in
funds
£
£
£
242,490
(236,524)
5,966
-
(1,268)
(1,268)
-
8,824
37,043
(1,068)
(8,824)
(37,043)
(1,068)
-
-
45,867
(48,203)
(2,336)
288,357
(284,727)
3,630|
|---|---|
## **Comparatives for movement in funds**
|**Unrestricted Funds**
General fund
Designated fund
**Restricted Funds**
Digital equipment
Auditorium fund
Dementia Action Alliance
**TOTAL FUNDS**|At 1.1.19
Net movement
in funds
Transfers
between funds
At 31.12.19
£
£
£
£
125,669
(11,734)
(3,000)
110,935
25,236
-
-
25,236
150,905
(11,734)
(3,000)
136,171
10,122
(2,217)
-
7,905
33,347
(312)
3,000
36,035
600
(600)
-
-
44,069
(3,129)
3,000
43,940
194,974
(14,863)
-
180,111|
|---|---|
|||
|||
Page 15
## **Saffron Walden Community Cinema Limited**
## **Notes to the Financial Statements - continued**
## **for the Year Ended 31 December 2020**
## **11. MOVEMENT IN FUNDS – continued**
Comparative net movement in funds, included in the above are as follows:
|
**Unrestricted funds**
General fund
**Restricted funds**
Digital equipment
Dementia Action Alliance
Young Programmers
Auditorium fund
**TOTAL FUNDS**|Incoming
resources
Resources
expended
Movement in
funds
£
£
£
401,234
(412,968)
(11,734)
-
(2,216)
(2,216)
-
(313)
(313)
333
(933)
(600)
4,500
(4,500)
-
4,833
(7,962)
(3,129)
406,067
(420,930)
(14,863)|
|---|---|
The Digital equipment fund represent funds specifically raised to acquire digital equipment. Expenditure represents the depreciation of the equipment.
The Auditorium fund represents the maintenance of the fabric of the auditorium and lobby, as agreed with Saffron Walden County High School, This fund represents Saffron Screen’s annual contribution net of expenditure.
The Dementia Action Alliance fund represents funding for the provision of dementia friendly film screenings for people living with dementia in Saffron Walden.
The Young Programmers fund represents a grant from the Independent Cinema Office to provide a facilitated group of 1630 year olds who meet on a regular basis to increase their knowledge of independent film and to programme, plan, market and present regular screenings, sharing their voice with a wider audience, in an independent cinema setting.
The BFI Safety Grant represents funding for the provision of safety equipment and consumables to allow our operating premises to be COVID-19 secure, in line with government guidance.
The BFI Sustainability Grant represents funding for allowable costs to be covered by the Cultural Recovery Fund, a central government funding program operated by the British Film Institute. The fund is to cover losses incurred while the organisation operates at reduced capacity due to social distancing and restricted attendance.
Designated fund represents set aside for any exceptional costs of creating a sustainable future.
## **Transfers between funds**
As per a licence agreement between Saffron Walden Community Cinema Limited and Saffron Walden County High School, dated 17 January 2013, there is a requirement for each organisation to contribute £3,000 per annum into a fund for the maintenance of the fabric of the auditorium and lobby. The transfer of £3,000 between unrestricted and restricted funds for the year ended 31 December 2020 is the agreed allocation of funds to meet future costs in relation to this agreement. Details of the restricted fund can be found in the note for restricted funds.
Page 16
## **Saffron Walden Community Cinema Limited**
**Notes to the Financial Statements - continued for the Year Ended 31 December 2020**
## **12. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 December 2020.
Page 17
## **Saffron Walden Community Cinema Limited**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Friends of Saffron Screen
Other donations
**Investment income**
Deposit account interest
**Charitable activities**
Income from admission charges
Refreshments
Sponsorship and advertising
Fundraising events
Grants
Other income
**Total incoming resources**
**EXPENDITURE**
**Raising donations and legacies**
Marketing wage costs
**Charitable activities**
Cinematic operation wage costs
Refreshment purchases
Distributor fees
IT software charges
Additional booking fees
Event and course costs
Equipment repairs
**Support costs**
**Management**
Management wage costs
Insurance
Telephone
Postage and stationery
Advertising and marketing
Carried forward|**Detailed Statement of Financial Activities**
**for the Year Ended 31 December 2020**|31.12.20
£
7,947
7,820
15,767
1,575
124,810
13,959
7,875
546
123,037
788
271,015
288,357
21,205
117,531
8,100
48,835
4,732
6,240
699
5,368
191,505
23,408
1,705
1,147
544
10,533
37,337|31.12.19
£
8,754
1,147
9,901
2,564
307,395
50,408
17,348
6,101
7,033
5,317
393,602
406,067
28,522
117,872
25,100
127,371
7,575
8,456
5,944
3,717
296,035
25,557
2,735
735
2,260
19,701
50,988|
|---|---|---|---|
|||||
This page does not form part of the statutory financial statements
Page 18
## **Saffron Walden Community Cinema Limited**
## **Detailed Statement of Financial Activities for the Year Ended 31 December 2020**
|**Management**
Brought forward
Sundries
IT costs
Travel and entertainment
Office expenses
Subscriptions and licence fees
Van running costs
**Finance**
Bank charges
**Other**
Depreciation
**Governance costs**
Professional fees
Accountancy fees
**Total resources expended**
**Net expenditure**|31.12.20
£
37,337
699
1,476
662
4,314
2,027
1,175
47,690
8,028
7,058
7,741
1,500
9,241
284,727
3,630|31.12.19
£
50,988
1,650
1,637
1,747
6,847
2,526
1,246
66,641
14,290
7,871
6,071
1,500
7,571
420,930
(14,863)|
|---|---|---|
This page does not form part of the statutory financial statements
Page 19