Company registration number: 06128021 Charity registration number: 1119589
## Grimethorpe Colliery Band Ltd
(A company limited by share capital)
Annual Report and Financial Statements
for the Year Ended 31 December 2020
## **Grimethorpe Colliery Band Ltd**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Strategic Report|2|
|Trustees' Report|3 to 5|
|Statement of Trustees' Responsibilities|6|
|Independent Auditors' Report|7 to 9|
|Independent Examiner's Report|10|
|Consolidated Statement of Financial Activities|11|
|Consolidated Balance Sheet|12|
|Balance Sheet|13|
|Consolidated Statement of Cash Flows|14|
|Notes to the Financial Statements|15 to 25|
## **Grimethorpe Colliery Band Ltd**
## **Reference and Administrative Details**
**Trustees** Mr P A Haigh Mr A Coe Dr N Clarke (resigned 1 July 2020) Professor R Webster (resigned 1 July 2020) Colum O'Shea (appointed 1 July 2020) Claire Louise Taylor (appointed 1 July 2020) Mr James Dickinson (appointed 2 November 2020) **Secretary** Mr P A Haigh **Principal Office** Acorn Centre Grimethorpe Barnsley S72 7BB **Company Registration Number** 06128021 **Charity Registration Number** 1119589 **Bankers** HSBC Bank PLC Barnsley 5 Market Hill Barnsley South Yorkshire S70 2PY **Independent Examiner** Auditor/Examiner details
Page 1
## **Grimethorpe Colliery Band Ltd**
## **Strategic Report for the Year Ended 31 December 2020**
The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 December 2020, in compliance with s414C of the Companies Act 2006.
The strategic report was approved by the trustees of the charity on 26 August 2021 and signed on its behalf by:
......................................... Mr P A Haigh Company Secretary and Trustee
Page 2
## **Grimethorpe Colliery Band Ltd**
## **Trustees' Report**
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 December 2020.
## **Objectives and activities**
## _**Objects and aims**_
The objective of the charity is to further the study, practice and encouragement of Brass Band Music in all its forms in order to foster public knowledge and appreciation of such music by means of public performances or otherwise including training and education of brass players.
Policies and Structure of Charity
The band has no paid employees.
All the bandsmen are classed as self-employed. The bandsmen do not receive any payments for playing at Concerts, travel Expenses/Additional Duties are paid.
The Trustees give their time freely in order to promote the objects of the charity.
Mr Roger Webster Resigned 1st July 2020 Mr Nigel Clarke Resigned 1st July 2020
Mr Andrew Coe was appointed as a Trustee/Director on the 20th May 2018
Page 3
## **Grimethorpe Colliery Band Ltd**
## **Trustees' Report**
## _**Objectives, strategies and activities**_
During the year the band competed in the following competitions: -
Yorkshire Area Finals at Bradford 11th Position - Conductor David Thornton (Qualified for National Finals)
British Open Concert cancelled due to Covid Pandemic
National Brass Band Championships Concert cancelled due to Covid Pandemic
Brass in Concert – “Sage” Gateshead Concert cancelled due to Covid Pandemic
The band offices and rehearsal facilities continue to be made available at the Acorn Centre, Grimethorpe, on a rent-free basis from Barnsley M.B.C. (A monthly service charge is made to Barnsley MBC). The band is most grateful to Barnsley M.B.C. for this arrangement and appreciation is shown to Barnsley M.B.C. by the band giving a number of charity concerts for the council throughout the year.
The band was successful in obtaining a grant from BMBC to help offset any income loss incurred due to the Covid Pandemic. The band extends sincere thanks to BMBC, even though the band is unable to give concerts to obtain income, there are still overheads which need to be paid on a monthly basis.
The band continues to be an ambassador for the village of Grimethorpe, Barnsley and the UK overall.
Only 5 concerts were given due to the Covid Pandemic (31/01 The Hawth, Crawley - 07/02 Blackpool - 16/02 Harpenden - 06/03 Hull - 19/03 Morley)
The Yorkshire Area Brass Band Championships, was only contest held during 2020 due to Covid restrictions.
Mr David Thornton continues to be the bands Musical Director.
## _**Public benefit**_
Grimethorpe/Besson Youth Band Workshops
Due to the Covid Pandemic there were no workshops organised in 2020.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## _**Social investment policies**_
No investment risks are taken with the band finances. Any surplus funds are invested with HSBC in the Band’s Money Manager Account.
There are no surplus funds at the present time.
## **Structure, governance and management**
## _**Recruitment and appointment of trustees**_
Page 4
## **Grimethorpe Colliery Band Ltd**
## **Trustees' Report**
## **Financial instruments**
## _**Cash flow risk**_
The financial position of the band continues to be a cause for concern - even more so due to the Covid Pandemic.
The Trustees are continuing to take positive action to encourage companies/firms etc to sponsor the band, but in today's financial climate this is proving to be a very hard task.
## Crowdfunder Appeal:
During the latter part of 2020 the band organised a new fundraising appeal. A total of £8,666 was raised, the individuals donating are to be asked to complete a Gift Aid form so that additional income can be claimed (those who have donated must be tax payers so that Gift Aid can be claimed).
## Arts Council England - Funding Application:
A former Trustee/Director of the band Mr Craig Robert and the bands Musical Director have completed the appropriate forms for forwarding a funding application in early Janauary 2020.
## **Disclosure of information to auditor**
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
The annual report was approved by the trustees of the charity on 26 August 2021 and signed on its behalf by:
......................................... Mr P A Haigh Company Secretary and Trustee
Page 5
## **Grimethorpe Colliery Band Ltd**
## **Statement of Trustees' Responsibilities**
The trustees (who are also the directors of Grimethorpe Colliery Band Ltd for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the 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.
Approved by the trustees of the charity on 26 August 2021 and signed on its behalf by:
......................................... Mr P A Haigh Company Secretary and Trustee
Page 6
## **Grimethorpe Colliery Band Ltd**
## **Independent Auditor's Report to the Members of Grimethorpe Colliery Band Ltd**
## **Opinion**
We have audited the financial statements of Grimethorpe Colliery Band Ltd (the 'charitable parent company') and its subsidiaries (the 'group') for the year ended 31 December 2020, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, , Balance Sheet, Consolidated Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the charitable parent company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the group's 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 parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
- In our opinion the financial statements:
- give a true and fair view of the state of the group's and parent charity's affairs as at 31 December 2020 and of the group's results 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 group 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**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustees use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report, 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.
Page 7
## **Grimethorpe Colliery Band Ltd**
## **Independent Auditor's Report to the Members of Grimethorpe Colliery Band Ltd**
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion on other matters prescribed by the Companies Act 2006**
- In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and Trustees' Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Trustees' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company 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.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities (set out on page 6), the trustees 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.
## **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.
Page 8
## **Grimethorpe Colliery Band Ltd**
## **Independent Auditor's Report to the Members of Grimethorpe Colliery Band Ltd**
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
......................................
(Senior Statutory Auditor) For and on behalf of , Statutory Auditor
26 August 2021
Page 9
## **Grimethorpe Colliery Band Ltd**
## **Independent Examiner's Report to the trustees of Grimethorpe Colliery Band Ltd**
I report to the group trustees on my examination of the consolidated accounts of Grimethorpe Colliery Band Ltd and its subsidiary undertakings for the year ended 31 December 2020 which are set out on pages 11 to 25.
## **Respective responsibilities of trustees and examiner**
As the trustees of the group you are responsible for the preparation of the consolidated accounts of Grimethorpe Colliery Band Ltd in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of Grimethorpe Colliery Band Ltd are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the consolidated accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their
opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether
the consolidated accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of Grimethorpe Colliery Band Ltd as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
......................................
26 August 2021
Page 10
## **Grimethorpe Colliery Band Ltd**
## **Consolidated Statement of Financial Activities for the Year Ended 31 December 2020 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Income and Endowments from:**
**Expenditure on:**
Net income/(expenditure)
**Reconciliation of funds**
Total funds carried forward
11
**Note**
**Income and Endowments from:**
**Expenditure on:**
Net income/(expenditure)
**Reconciliation of funds**
Total funds carried forward
11|**Total**
**2020**
**£**
-|
|---|---|
||-|
||**Total**
**2019**
**£**
-|
||-|
All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2019 is shown in note 11.
Page 11
## **Grimethorpe Colliery Band Ltd**
## **(Registration number: 06128021) Consolidated Balance Sheet as at 31 December 2020**
|**Note**
**Funds of the group:**
**Total funds**
11|**2020**
**£**
-|
|---|---|
The financial statements on pages 11 to 25 were approved by the trustees, and authorised for issue on 26 August 2021 and signed on their behalf by:
......................................... Mr P A Haigh Company Secretary and Trustee
Page 12
## **Grimethorpe Colliery Band Ltd**
## **(Registration number: 06128021) Balance Sheet as at 31 December 2020**
|**Note**
**Fixed assets**
Tangible assets
6
**Current assets**
Stocks
7
Debtors
8
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
9
**Net current assets**
**Net assets**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
11|**2020**
**£**
3,241
2,638
8,685
9,137
20,460
(1,545)
18,915
22,156
22,156
22,156|**2019**
**£**
4,051
1,569
6,772
3,383|
|---|---|---|
|||11,724
(5,788)|
|||5,936|
|||9,987|
|||9,987|
|||9,987|
The financial statements on pages 11 to 25 were approved by the trustees, and authorised for issue on 26 August 2021 and signed on their behalf by:
......................................... Mr P A Haigh Company Secretary and Trustee
Page 13
## **Grimethorpe Colliery Band Ltd**
## **Consolidated Statement of Cash Flows for the Year Ended 31 December 2020**
|**Note**
**Cash flows from operating activities**
Net cash flows from operating activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December|**2020**
**£**
-|
|---|---|
||-
-|
||-|
All of the cash flows are derived from continuing operations during the above two periods.
Page 14
## **Grimethorpe Colliery Band Ltd**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **1 Charity status**
The charity is limited by share capital, incorporated in .
The address of its registered office is: Acorn Centre Grimethorpe Barnsley S72 7BB
These financial statements were authorised for issue by the trustees on 26 August 2021.
## **2 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
## **Basis of preparation**
Grimethorpe Colliery Band Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound.
## **Basis of consolidation**
The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 December 2020.
No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a loss after tax for the financial year of £12,170 (2019 - loss of £2,825).
Page 15
## **Grimethorpe Colliery Band Ltd**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the statement of financial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.
## **Exemption from preparing a cash flow statement**
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Page 16
## **Grimethorpe Colliery Band Ltd**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **Income and endowments**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Income is stated net of VAT.
Concert fees
Income from concerts is recognised once the performance is complete.
Ticketing Income
Income from the sale of tickets is recognised upon receipt of payment.
Merchandising
Income from the sale of Band merchandise is recognised upon receipt of payment.
## _**Donations and legacies**_
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
## _**Grants receivable**_
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
## _**Investment income**_
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources. Other support costs are allocated based on the spread of staff costs.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Support costs**
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Page 17
## **Grimethorpe Colliery Band Ltd**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **Government grants**
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Tangible fixed assets**
Individual fixed assets costing £0.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
## **Stock**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving stock.
Cost is calculated using the first-in, first-out method and includes all purchase, transport and handling costs in bringing stocks to their present location and condition.
## **Trade debtors**
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Trade creditors**
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Page 18
## **Grimethorpe Colliery Band Ltd**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **Borrowings**
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
## **Fund structure**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
## **Financial instruments**
## _**Classification**_
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
## _**Recognition and measurement**_
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Page 19
## **Grimethorpe Colliery Band Ltd**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## _**Debt instruments**_
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
## _**Investments**_
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.
Page 20
## **Grimethorpe Colliery Band Ltd**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## _**Derivative financial instruments**_
The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.
## _**Fair value measurement**_
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
Page 21
## **Grimethorpe Colliery Band Ltd**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **3 Net incoming/outgoing resources**
Net incoming/(outgoing) resources for the year include:
**2020 £**
## **4 Trustees remuneration and expenses**
During the year the group made the following transactions with trustees:
## **Mr P A Haigh**
Mr P A Haigh received remuneration of £600 (2019: £Nil) during the year.
No trustees have received any reimbursed expenses from the charity during the year.
## **5 Taxation**
The group is a registered charity and is therefore exempt from taxation.
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## **Grimethorpe Colliery Band Ltd**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **6 Tangible fixed assets**
## **Charity**
|**Charity**||||||
|---|---|---|---|---|---|
|**Cost**
At 1 January 2020
At 31 December 2020
**Depreciation**
At 1 January 2020
Charge for the year
At 31 December 2020
**Net book value**
At 31 December 2020
At 31 December 2019
**7**
**Stock**
Stocks
**8**
**Debtors**
Trade debtors
Prepayments
**9**
**Creditors: amounts falling due within one year**
**Group**
**2020**
**£**
Trade creditors
33
VAT grant repayable
12
Accruals
1,500
1,545||**Furniture and**
**equipment**
**£**
19,732
19,732
18,985
150
19,135
597
747
**Group**
**2020**
**£**
-
**Group**
**2020**
**£**
-
-
-
**2019**
**£**
755
3,533
1,500
5,788||**Other**
**tangible fixed**
**asset**
**£**
**Total**
**£**
66,231
85,963
66,231
85,963
62,927
81,912
660
810
63,587
82,722
2,644
3,241
3,304
4,051
**Charity**
**2020**
**£**
**2019**
**£**
2,638
1,569
**Charity**
**2020**
**£**
**2019**
**£**
8,666
6,750
19
22
8,685
6,772
**Charity**
**2020**
**£**
**2019**
**£**
33
755
12
3,533
1,500
1,500
1,545
5,788||
|||19,732||||
|||18,985
150||||
|||19,135||||
|||597||||
|||747||||
|||**Group**
**2020**
**£**
-
**Group**
**2020**
**£**
-
-
-
**2019**
**£**
755
3,533
1,500
5,788||||
|||||||
|||||||
|||||||
||||||5,788|
Page 23
## **Grimethorpe Colliery Band Ltd**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **10 Share capital**
## **11 Funds**
## **Group**
## **Unrestricted funds**
## **Unrestricted funds**
## **Charity**
|**Charity**|||||
|---|---|---|---|---|
|**Unrestricted funds**
General
**Unrestricted funds**
General|**Balance at 1**
**January 2020**
**£**
(9,986)
**Balance at 1**
**January 2019**
**£**
(12,812)|**Incoming**
**resources**
**£**
(42,902)
**Incoming**
**resources**
**£**
(117,658)|**Resources**
**expended**
**£**
30,732
**Resources**
**expended**
**£**
120,483|**Balance at 31**
**December**
**2020**
**£**
(22,156)|
|||||**Balance at 31**
**December**
**2019**
**£**
(9,987)|
Page 24
## **Grimethorpe Colliery Band Ltd**
## **Notes to the Financial Statements for the Year Ended 31 December 2020**
## **12 Analysis of net assets between funds**
## **Group**
## **Charity**
|Tangible fixed assets
Current assets
Current liabilities
Total net assets|**Unrestricted**
**funds**
**General**
**£**
3,241
20,460
(1,545)
22,156|**Total funds**
**£**
3,241
20,460
(1,545)
22,156|
|---|---|---|
## **13 Analysis of net funds**
## **Group**
|Cash at bank and in hand
Net debt|**At 1 January**
**2020**
**£**
3,383
3,383|**Cash flow**
**£**
**At 31 December**
**2020**
**£**
5,754
9,137
5,754
9,137|**Cash flow**
**£**
**At 31 December**
**2020**
**£**
5,754
9,137
5,754
9,137|
|---|---|---|---|
||||9,137|
Page 25
## **Grimethorpe Colliery Band Ltd**
## **Detailed Statement of Financial Activities for the Year Ended 31 December 2020**
|**Income and Endowments from:**
**Expenditure on:**
Net income/(expenditure)
**Reconciliation of funds**
Total funds carried forward|**2020**
**Total**
**£**
-
-|**Total**
**2019**
**£**
-|
|---|---|---|
|||-|
Page 26