Registered number: 06461027 Charity number: 1123971
NEW CUT ARTS
(A company limited by guarantee)
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
NEW CUT ARTS
(A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Company, its Trustees and advisers | 1 |
| Trustees' report | 2 - 5 |
| Independent examiner's report | 6 - 7 |
| Statement of financial activities | 8 |
| Balance sheet | 9 - 10 |
| Notes to the financial statements | 11 - 27 |
(A company limited by guarantee)
NEW CUT ARTS
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021
| Trustees | S Bailey |
|---|---|
| U Hashim | |
| R Dwelly | |
| K Don-Daniel | |
| L Calder (appointed 1 October 2020) | |
| B Holloway (appointed 1 May 2020) | |
| J Leverett (appointed 1 May 2020) | |
| A Casement | |
| J Jordan | |
| N Jaffa (appointed 1 September 2020) | |
| D Parkin | |
| Company registered number 06461027 Charity registered number 1123971 Registered office Old Maltings 8 New Cut Halesworth Suffolk IP19 8BY Principal operating office The Cut, New Cut Halesworth Suffolk IP19 8BY Accountants Larking Gowen LLP Chartered Accountants Faiers House Gilray Road Diss IP22 4WR |
Page 1
NEW CUT ARTS (A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021
The Trustees present their annual report together with the financial statements of the Company for the 1 April 2020 to 31 March 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Policies and objectives
The object of the charity is to advance education in the arts in Suffolk and Norfolk particularly, but not exclusively, by:
-
Establishing an Arts Centre;
-
Providing training courses and workshops in all aspects of the performing and fine arts and media studies leading to educational qualifications;
-
Providing community arts programmes to meet the needs of the whole community;
-
Developing and encouraging youth programmes to meet the needs of the whole community;
-
Developing and encouraging youth programmes in all areas of arts, dance and media.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
Achievements and performance
a. Main achievements of the Company
After a challenging year and two periods of closure the resilience of The Cut has been a feature of the last financial year as we emerge from the devastating effects of Covid-19. Much of 2020-21 has been an adaptation to new circumstances with the efforts of reduced staff and volunteers to keep The Cut’s community presence going through a digital programme of events and activities, a refocusing on building improvements and fundraising. The Cut’s provision of studio and office units has provided an essential residual income while successful A.C.E. bids and other government support has placed the Cut in a resilient position as prospects improve.
Page 2
NEW CUT ARTS
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Financial review
a. Going concern
The Trustees have considered the Charity's position at the time of signing the financial statements, and in particular the current issues caused by Covid-19 and its potential impact on the Charity.
In particular, they have considered the Charity’s cash reserves, additional funding secured after the year end, and loan repayments due in the short to medium term.
Based on this, the Trustees have concluded that they have a reasonable expectation that the Charity will have adequate resources to continue in operational existence for the foreseeable future, and at least twelve months from the date of signing these financial statements. They therefore continue to adopt the going concern basis of accounting in preparing these financial statements.
b. Reserves policy
New Cut Arts has adopted the following policy with respect to holding part of its income as a reserve to cover contingencies:
Reserve levels
Free reserves are defined as unrestricted funds not represented by fixed assets. New Cut Arts' target level of free reserves is 10% of its annual income. This is approximately £25k.
Long term loans have been taken out to help finance the gradual development of the centre meaning that at 31 March 2021 there are no free reserves. However, excluding the long term loans and fixed assets the charity has unrestricted reserves of £98,135 (2020: £78,533).
The trustees continue to review the level of free reserves with a view to re-establishing the target level of free reserves.
Management of reserves
Reserves are overseen by a trustee elected by the Board of Trustees on an annual basis. The elected trustee must have a proven financial competency. Alterations to the policy must be agreed by an 80% majority of the Board.
Structure, governance and management
a. Constitution
New Cut Arts is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 11 April 2008.
Page 3
NEW CUT ARTS (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Structure, governance and management (continued)
b. Methods of appointment or election of Trustees
New Cut Arts has adopted the following policy covering the recruitment of new trustees:
Trustees must have an interest in the aims and objectives of New Cut Arts and be committed to the safe governance of the charity.
Trustees must not have any conviction for fraud or financial mal-practice.
Trustees must not stand to gain financially from their position as trustee except in special circumstances approved by the trustees and authorised by the Charity Commission.
Trustees must be able to attend at least 80% of all scheduled meetings.
Trustees must be selected on the basis of knowledge and experience which is appropriate to the charity's aims and organisation - in particular we seek to include people with financial, legal, marketing, HR and health & safety competencies.
The Board of Trustees should be representative of the local community in terms of age, gender and ethnicity - we actively support the notion of diversity.
c. Financial risk management
The Trustees have assessed the major risks to which the Company is exposed, in particular those related to the operations and finances of the Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Page 4
NEW CUT ARTS (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Company 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 . 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 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 then apply them consistently;
-
observe the methods and principles of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on their behalf by:
T Casement (Trustee) Date:
Page 5
NEW CUT ARTS (A company limited by guarantee)
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2021
Independent examiner's report to the Trustees of New Cut Arts ('the Company')
I report to the charity Trustees on my examination of the accounts of the Company for the year ended 31 March 2021.
Responsibilities and basis of report
As the Trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company 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 Company's accounts 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.
Independent examiner's statement
Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
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:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
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
-
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.
Page 6
NEW CUT ARTS
(A company limited by guarantee)
INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report.
Signed:
Dated:
Christopher Yeates FCA DChA
Larking Gowen LLP
Chartered Accountants Diss
Page 7
NEW CUT ARTS
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021
| Note Income from: Donations and grants 3 Charitable activities 4 Other trading activities 5 Total income Expenditure on: Raising funds 6 Charitable activities 7 Total expenditure Net income/(expenditure) Transfers between funds 16 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2021 £ 113,911 6,968 42,041 162,920 43,776 83,053 126,829 36,091 60,983 97,074 595,128 97,074 692,202 |
Restricted funds 2021 £ 108,082 - - 108,082 25,280 19,330 44,610 63,472 (60,983) 2,489 173,777 2,489 176,266 |
Total funds 2021 £ 221,993 6,968 42,041 271,002 69,056 102,383 171,439 99,563 - 99,563 768,905 99,563 868,468 |
Total funds 2020 £ 33,807 109,345 130,498 273,650 116,963 157,730 274,693 (1,043) - (1,043) 769,948 (1,043) 768,905 |
|---|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 11 to 27 form part of these financial statements.
Page 8
NEW CUT ARTS (A company limited by guarantee) REGISTERED NUMBER: 06461027
BALANCE SHEET AS AT 31 MARCH 2021
| Note Fixed assets Tangible assets 11 Current assets Stocks 12 Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 15 Net assets Total net assets Charity funds Restricted funds 16 Unrestricted funds 16 Total funds |
- 19,073 133,991 153,064 (28,583) |
2021 £ 875,979 875,979 124,481 1,000,460 (131,992) 868,468 868,468 176,266 692,202 868,468 |
3,000 7,328 84,331 94,659 (14,126) |
2020 £ 831,524 831,524 80,533 912,057 (143,152) 768,905 768,905 173,777 595,128 768,905 |
|---|---|---|---|---|
The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
Page 9
NEW CUT ARTS
(A company limited by guarantee) REGISTERED NUMBER: 06461027
BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
T Casement
(Trustee)
Date:
The notes on pages 11 to 27 form part of these financial statements.
Page 10
NEW CUT ARTS
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1. General information
The charity is a company limited by guarantee, incorporated in England and Wales. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The registered office is Old Maltings, 8 New Cut, Halesworth, Suffolk IP19 8BY.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
New Cut Arts 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.
2.2 Going concern
The Trustees have considered the Charity's position at the time of signing the financial statements, and in particular the current issues caused by Covid-19 and its potential impact on the Charity.
In particular, they have considered the Charity’s cash reserves, additional funding secured after the year end, and loan repayments due in the short to medium term.
Based on this, the Trustees have concluded that they have a reasonable expectation that the Charity will have adequate resources to continue in operational existence for the foreseeable future, and at least twelve months from the date of signing these financial statements. They therefore continue to adopt the going concern basis of accounting in preparing these financial statements.
2.3 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Page 11
NEW CUT ARTS
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
2. Accounting policies (continued)
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.
2.5 Tangible fixed assets and depreciation
Tangible fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following bases:
| Freehold property | - 2% on cost |
|---|---|
| Improvements to property | - 2% on cost |
| Furniture | - 15% on reducing balance |
| Equipment | - 15% on reducing balance |
| Computer equipment | - 33% on cost |
2.6 Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
2.7 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Page 12
NEW CUT ARTS
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
2. Accounting policies (continued)
2.8 Cash at bank and in hand
Cash at bank and 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.
2.9 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
2.10 Financial instruments
The Company 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.11 Pensions
The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.
2.12 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
2.13 Redundancy costs
Costs of termination of employment are recognised as a liability and an expense when the charity is has a detailed formal plan for the termination and there is no realistic possibility of withdrawal from the plan, e.g. because the staff affected have been informed.
Page 13
(A company limited by guarantee)
NEW CUT ARTS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
3. Income from donations and grants
| Unrestricted funds 2021 £ Government grants Local Restrictions Support Grant, Closed Business Lockdown Payment and Retail Hospitality and Leisure Grant 41,057 Arts Council England Emergency Response Fund - Arts Council National Lottery Project Grant and Bounce Back Grant - Coronavirus Job Retention Scheme 59,765 Energy Efficiency Grant - Subtotal detailed disclosure 100,822 Donations 5,126 Grants - 500 Club 7,963 Subtotal 13,089 Total 2021 113,911 Total 2020 31,807 |
Restricted funds 2021 £ - 35,000 18,872 - 17,345 71,217 11,305 25,560 - 36,865 108,082 2,000 |
Total funds 2021 £ 41,057 35,000 18,872 59,765 17,345 172,039 16,431 25,560 7,963 49,954 221,993 33,807 |
Total funds 2020 £ - - - - - |
|---|---|---|---|
| - | |||
| 24,113 2,000 7,694 |
|||
| 33,807 | |||
| 33,807 | |||
Page 14
NEW CUT ARTS (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
4. Income from charitable activities
| Unrestricted funds 2021 £ Auditorium 4,764 Commission on art sales - Room hire and rent 2,204 Educational courses - Total 2021 6,968 Total 2020 109,345 5. Other trading activities Unrestricted funds 2021 £ Fundraising events - Cafe and bar income 130 Programme advertising - Room hire 41,911 Total 2021 42,041 Total 2020 130,498 |
Total funds 2021 £ 4,764 - 2,204 - 6,968 109,345 Total funds 2021 £ - 130 - 41,911 42,041 130,498 |
Total funds 2020 £ 83,844 5,417 19,954 130 |
|---|---|---|
| 109,345 | ||
| Total funds 2020 £ 10,143 64,584 6,523 49,248 |
||
| 130,498 | ||
Page 15
NEW CUT ARTS (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
6. Expenditure on raising funds
| Total funds Total funds |
|
|---|---|
| 2021 2020 |
|
| £ £ |
|
| Purchases | 3,974 28,177 |
| Parking charges | 3,120 3,120 |
| Light and heat | 2,334 3,335 |
| Print, post and stationery | 558 627 |
| Telephone | 552 541 |
| Repairs and renewals | 1,336 7,707 |
| Premises expenses | 1,847 2,891 |
| Advertising | 2,790 4,338 |
| Training costs | - 94 |
| Insurance | 1,834 1,830 |
| Licences | 200 80 |
| Bad debts | 50 343 |
| Miscellaneous expenses | 902 485 |
| Interest | 5,128 5,758 |
| 500 Club expenses | 20 - |
| Wages and salaries | 27,108 42,482 |
| Social security costs | 312 875 |
| Pension contributions | 385 495 |
| Depreciation of tangible fixed assets | 16,606 13,785 |
| Total 2021 | 69,056 116,963 |
Page 16
NEW CUT ARTS (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
7. Analysis of expenditure by activities
| Auditorium Commission on art sales Room hire and rent Total 2020 |
Activities undertaken directly 2021 £ 8,471 822 - 9,293 48,317 |
Support costs 2021 £ 93,090 - - 93,090 109,413 |
Total funds 2021 £ 101,561 822 - 102,383 157,730 |
Total funds 2020 £ 151,592 6,075 63 |
|---|---|---|---|---|
| 157,730 | ||||
Analysis of direct costs
| Staff costs Cinema films Visiting theatre and music Art shows Rent and rates Technical labour Total 2021 Total 2020 |
Auditorium 2021 £ - 32 8,439 - - - 8,471 42,179 |
Commission on art sales 2021 £ - - - 822 - - 822 6,075 |
Room hire 2021 £ - - - - - - - 63 |
Total funds 2021 £ - 32 8,439 822 - - 9,293 48,317 |
Total funds 2020 £ 3,869 674 37,080 6,075 63 556 |
|---|---|---|---|---|---|
| 48,317 | |||||
Page 17
NEW CUT ARTS (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
7. Analysis of expenditure by activities (continued)
Analysis of support costs
| Staff costs Depreciation Licences Light and heat Telephone Postage and stationary Advertising Repairs and renewals Premises expenses Training costs Insurance Interest Sundries Bad debts Accountancy Professional fees |
Total funds 2021 £ 42,125 24,909 214 3,502 829 1,781 4,186 1,060 2,771 - 3,051 291 1,354 76 6,941 - 93,090 |
Total funds 2020 £ 47,744 20,677 120 5,001 811 1,173 6,508 11,327 4,337 141 2,746 522 728 515 6,423 640 |
|---|---|---|
| 109,413 |
8. Independent examiner's remuneration
The independent examiner's remuneration amounts to an independent examiner fee of £3,666 (2020 - £3,726) , and other services including software training and VAT assistance of £2,959 ( 2020 - £2,697 ).
Page 18
NEW CUT ARTS
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
9. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2021 £ 68,176 786 968 69,930 |
2020 £ 91,114 2,779 1,572 |
|---|---|---|
| 95,465 |
Staff costs include the cost of staff redundancies in the year of £2,091 (2020: £Nil).
The average number of persons employed by the Company during the year was as follows:
| New Cut Arts Centre The average headcount expressed as full-time equivalents was: New Cut Arts Centre |
2021 No. 6 2021 No. 2 |
2020 No. 9 |
|---|---|---|
| 2020 No. 5 |
No employee received remuneration amounting to more than £60,000 in either year.
Total employee benefits of key management personnel were £27,279 (2020: £27,303).
10. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .
During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL) .
Page 19
NEW CUT ARTS (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
11. Tangible fixed assets
| Cost or valuation At 1 April 2020 Additions At 31 March 2021 Depreciation At 1 April 2020 Charge for the year At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 |
Land and buildings £ 915,577 26,283 941,860 175,559 18,836 194,395 747,465 740,018 |
Plant and machinery £ 249,793 59,687 309,480 158,287 22,679 180,966 128,514 91,506 |
Total £ 1,165,370 85,970 |
|---|---|---|---|
| 1,251,340 | |||
| 333,846 41,515 |
|||
| 375,361 | |||
| 875,979 | |||
| 831,524 |
Included in land and buildings is freehold land and property with a carrying value of £747,466 (2020 - £740 020) which is pledged as security for liabilities.
12. Stocks
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Finished goods and goods for resale | - | 3,000 |
Page 20
NEW CUT ARTS (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
13. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income |
2021 £ 753 4,848 13,472 19,073 |
2020 £ 6,396 - 932 |
|---|---|---|
| 7,328 |
14. Creditors: Amounts falling due within one year
| Bank loans Other loans Trade creditors Other taxation and social security Pension fund creditor Other creditors Accruals and deferred income |
2021 £ 5,370 7,989 10,739 - 107 18 4,360 28,583 |
2020 £ 5,186 - 3,336 1,031 245 368 3,960 |
|---|---|---|
| 14,126 |
Page 21
NEW CUT ARTS (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
15. Creditors: Amounts falling due after more than one year
| Bank loans Other loans Other creditors |
2021 £ 69,977 57,015 5,000 131,992 |
2020 £ 75,347 62,805 5,000 |
|---|---|---|
| 143,152 |
The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:
| Payable or repayable by instalments Payable or repayable other than by instalments |
2021 £ 46,518 6,000 52,518 |
2020 £ 52,694 6,000 |
|---|---|---|
| 58,694 |
Interest is charged on the bank loan at 2.5% above the bank base rate subject to a minimum of 3.5%. Instalments are paid monthly to cover the interest and capital. The loan is due to be repaid in October 2032 and is secured on the property to which it relates.
Other loans are secured by way of a first legal charge over the the freehold interest in the Malt Store Annex.
Further information regarding other loans is included in note 19.
Page 22
NEW CUT ARTS (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
16. Statement of funds
Statement of funds - current year
| Balance at 1 April 2020 £ Unrestricted funds General Fund 595,128 Restricted funds Cutting Edge 63,642 Refurbishment 85,668 Lighting 17,967 Flooring 4,500 Website - Foyle - Lectern 2,000 Theatres Trust - Sound and light - ACE Emergency Response Fund - Business Energy Efficiency - Digital development - 173,777 Total of funds 768,905 |
Income £ Expenditure £ 162,920 (126,829) - (3,439) - (6,019) - (2,695) - (675) 5,000 - 12,000 - - - 2,560 - 17,305 - 35,000 (29,030) 17,345 - 18,872 (2,752) 108,082 (44,610) 271,002 (171,439) |
Transfers in/out £ 60,983 - (9,029) - - - (9,334) (2,000) - (17,305) (5,970) (17,345) - (60,983) - |
Balance at 31 March 2021 £ 692,202 |
|---|---|---|---|
| 60,203 70,620 15,272 3,825 5,000 2,666 - 2,560 - - - 16,120 |
|||
| 176,266 | |||
| 868,468 |
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(A company limited by guarantee)
NEW CUT ARTS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
16. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds General Fund Restricted funds Cutting Edge Refurbishment Lighting Flooring Website Foyle Lectern Total of funds |
Balance at 1 April 2019 £ 560,602 66,455 100,716 21,137 5,294 788 14,956 - 209,346 769,948 |
Income £ 271,650 - - - - - - 2,000 2,000 273,650 |
Expenditure £ (250,614) (2,813) (6,019) (3,170) (794) (788) (10,495) - (24,079) (274,693) |
Transfers in/out £ 13,490 - (9,029) - - - (4,461) - (13,490) - |
Balance at 31 March 2020 £ 595,128 |
|---|---|---|---|---|---|
| 63,642 85,668 17,967 4,500 - - 2,000 |
|||||
| 173,777 | |||||
| 768,905 |
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NEW CUT ARTS (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
16. Statement of funds (continued)
The funds held in the Cutting Edge Fund are for the refurbishment of storage space to create performance and workshop space. As funds held are expended on fixed assets, a corresponding amount is transferred from this fund to the general fund except where these are subject to restrictions on their use. A transfer has been made in the current year corresponding to the depreciation on the assets on which the funding was spent.
The funds held in the Refurbishment Fund were for the purchase and refurbishment of the Old Maltings as the New Cut Arts Centre. The East of England Development Agency (EEDA) grants are repayable on a pro-rata basis over 20 years should the charity dispose of its freehold property and therefore the funds relating to EEDA grants are reduced by 5% on an annual basis.
The funds held in the Lighting Fund are for the renewal and improvement of lighting. As funds held are expended on fixed assets, a corresponding amount is transferred from this fund to the general fund except where these are subject to restriction on their use. A transfer has been made in the current year corresponding to the depreciation on the assets on which the funding was spent.
The funds held in the Flooring Fund are for the purchase of new rubber flooring for the stairs and corridors. As funds held are expended on flooring, a corresponding amount is transferred to the general fund to reflect the depreciation on the assets on which the funding was spent.
The funds held within the Foyle Fund were granted by the Foyle Foundation for refurbishment of the Centre including repairs to the existing roof, new front and back doors, sound-proofing for the cafe, auditorium sound and lighting upgrades and replacement drapes.
The funds held in the Lectern Fund were granted by the Mulberry Trust for the purchase of a digital lectern. This was purchased during the year end.
The funds held in the Theatres Trust fund were granted for the purpose of deep cleaning the premises prior to re-opening when covid restrictions allowed and included an amount for the purchase of personal protective equipment.
The funds included in the Sound and Light fund were for the purchase of sound and light equipment for the theatre. These funds were expended on fixed assets in the year.
The funds in the ACE Emergency Response fund were granted to provide immediate support for the charity in view of the coronavirus crisis.
The funds held in the Business Energy Efficiency fund were granted to fund energy efficiency measures including upgrading lighting and solar panels.
The funds held within the Digital Development fund are for the purpose of purchasing new streaming equipment and training, and creating a resource for a visual art project, an online resource for audiences to engage with our gallery spaces and artists.
The funds held within the Website fund and for the purpose of developing a new website and booking system.
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NEW CUT ARTS (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
17. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2021 £ Tangible fixed assets 726,059 Current assets 117,934 Creditors due within one year (19,799) Creditors due in more than one year (131,992) Total 692,202 |
Restricted funds 2021 £ 149,920 35,130 (8,784) - 176,266 |
Total funds 2021 £ 875,979 153,064 (28,583) (131,992) 868,468 |
|---|---|---|
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Total |
Unrestricted funds 2020 £ 659,747 92,659 (14,126) (143,152) 595,128 |
Restricted funds 2020 £ 171,777 2,000 - - 173,777 |
Total funds 2020 £ 831,524 94,659 (14,126) (143,152) 768,905 |
|---|---|---|---|
18. Pension commitments
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £968 (2020: £1,279). Contributions totalling £107 (2020: £245) were payable to the fund at the balance sheet date and are included in creditors.
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(A company limited by guarantee)
NEW CUT ARTS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
19. Related party transactions
During a prior year a loan was made to the charity by a close family member of one of the trustees. The loan principal was £100,000 and was reduced in previous years by £43,600. The loan is to be repaid in installments of £5,000 per annum over 5 years with the balance due in May 2022. The payment due in the year ended 31 March 2021 was deferred and paid in May 2021. Interest is being charged on the loan at 3.5% per annum. In the year ended 31 March 2021, interest of £2,198 (2020: £2,496) was accrued on the loan. The balance outstanding at the year end is £64,004 (2020: £61,805).
The charity employs the spouse of one of the trustees. During the year, that employee received emoluments from the charity totalling £25,103 (2020: £25,106), including employer's pension contributions.
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