**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 2022**
## **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|
## **NEW CUT ARTS**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022**
|**Trustees**|S Bailey|
|---|---|
||U Hashim|
||R Dwelly (resigned 31 July 2022)|
||K Don-Daniel|
||L Calder (resigned 1 February 2022)|
||B Holloway|
||J Leverett|
||A Casement|
||J Jordan|
||N Jaffa|
||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 2022**
The Trustees present their annual report together with the financial statements of the Company for the 1 April 2021 to 31 March 2022. 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**
Having survived the effects of Covid-19 and lockdown closures The Cut re-opened with the support of A.C.E. Covid Recovery Fund which included funds for new ‘clubs’ to benefit the out of work, youth drama, dementia sufferers and carers as well as the exhibition programme which restarted in July 2021. With the gradual reintroduction of theatre and cinema programming and classes, the A.C.E. support also enabled The Cut to build its reserves to 10% of turnover and although challenges remain The Cut is expected to return to a full programme in the second half of 2022 and its current finances are stable.
Page 2
**(A company limited by guarantee)**
## **NEW CUT ARTS**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **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. The charity's free reserves at 31 March 2022 were £49,081.
Unrestricted funds at 31 March 2022 were £789,125 (£2021: £692,202) and restricted funds were £130,727 (2021: £176,266), meaning total funds were £919,852 (2021: £868,468).
## 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 2022**
## **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 2022**
## **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 2022**
## **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 2022.
## **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**
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 the Company 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.
Page 6
## **NEW CUT ARTS**
**(A company limited by guarantee)**
## **INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
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:
Christopher Yeates FCA DChA
## **Larking Gowen LLP**
Chartered Accountants
Diss
16 December 2022
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 2022**
|**Note**
**Income from:**
Donations and grants
3
Charitable activities
4
Other trading activities
5
Investments
**Total income**
**Expenditure on:**
Raising funds
6
Charitable activities
7
**Total expenditure**
**Net income**
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**
**2022**
**£**
**44,542**
**29,436**
**74,383**
**11**
**148,372**
**39,309**
**72,205**
**111,514**
**36,858**
**60,065**
**96,923**
**692,202**
**96,923**
**789,125**|**Restricted**
**funds**
**2022**
**£**
**98,400**
**-**
**-**
**-**
**98,400**
**22,635**
**61,239**
**83,874**
**14,526**
**(60,065)**
**(45,539)**
**176,266**
**(45,539)**
**130,727**|**Total**
**funds**
**2022**
**£**
**142,942**
**29,436**
**74,383**
**11**
**246,772**
**61,944**
**133,444**
**195,388**
**51,384**
**-**
**51,384**
**868,468**
**51,384**
**919,852**|_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_|
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 2022**
|**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**|**3,000**
**5,584**
**147,655**
**156,239**
**(39,798)**|**2022**
**£**
**868,827**
**868,827**
**116,441**
**985,268**
**(65,416)**
**919,852**
**919,852**
**130,727**
**789,125**
**919,852**|_-_
_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_|
|---|---|---|---|---|
Page 9
# **NEW CUT ARTS (A company limited by guarantee) REGISTERED NUMBER: 06461027**
# **BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022**
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.
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 2022**
## **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 financial statements are prepared on a going concern basis. In preparing the financial statements the trustees have assessed the level of reserves, together with cash availability and expected demands and remain confident that the going concern basis is appropriate in the circumstances
## **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 2022**
## **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 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.6 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|
## **2.7 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Page 12
**NEW CUT ARTS**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2. Accounting policies (continued)**
## **2.8 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.
## **2.9 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.
## **2.10 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.
## **2.11 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.
## **2.12 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.
## **2.13 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.
Investment income, gains and losses are allocated to the appropriate fund.
Page 13
**(A company limited by guarantee)**
## **NEW CUT ARTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2. Accounting policies (continued)**
## **2.14 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.
## **3. Income from donations and grants**
|**Unrestricted**
**funds**
**2022**
**£**
**Government grants**
Local Restrictions Support Grant, Closed
Business Lockdown Payment and Retail
Hospitality and Leisure Grant
16,000
Arts Council England Culture Recovery Fund
-
Arts Council National Lottery Project Grant,
Bounce Back Grant and Emergency
Response Fund
-
Coronavirus Job Retention Scheme
12,055
Energy Efficiency Grant
-
28,055
Donations
8,803
Grants
-
500 Club
7,684
16,487
**Total 2022**
44,542
_Total 2021_
_113,911_|**Restricted**
**funds**
**2022**
**£**
5,418
92,982
-
-
-
98,400
-
-
-
-
98,400
_108,082_|**Total**
**funds**
**2022**
**£**
**21,418**
**92,982**
**-**
**12,055**
**-**
**126,455**
**8,803**
**-**
**7,684**
**16,487**
**142,942**
_221,993_|_Total_
_funds_
_2021_
_£_
_41,057_
_-_
_53,872_
_59,765_
_17,345_|
|---|---|---|---|
||||_172,039_|
||||_16,431_
_25,560_
_7,963_|
||||_49,954_|
|||||
||||_221,993_|
|||||
Donations includes £836 (2021: £Nil) of loan interest waived in the year.
Page 14
## **NEW CUT ARTS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **4. Income from charitable activities**
|**Unrestricted**
**funds**
**2022**
**£**
Auditorium
19,837
Commission on art sales
430
Room hire and rent
9,169
**Total 2022**
29,436
_Total 2021_
_6,968_
**5.**
**Other trading activities**
**Unrestricted**
**funds**
**2022**
**£**
Fundraising events
3,050
Cafe and bar income
17,178
Room hire
54,155
**Total 2022**
74,383
_Total 2021_
_42,041_|**Total**
**funds**
**2022**
**£**
**19,837**
**430**
**9,169**
**29,436**
_6,968_
**Total**
**funds**
**2022**
**£**
**3,050**
**17,178**
**54,155**
**74,383**
_42,041_|_Total_
_funds_
_2021_
_£_
_4,764_
_-_
_2,204_|
|---|---|---|
|||_6,968_|
|||_Total_
_funds_
_2021_
_£_
_-_
_130_
_41,911_|
|||_42,041_|
||||
Page 15
**NEW CUT ARTS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **6. Expenditure on raising funds**
||**Total**
**funds**
_Total_
_funds_|
|---|---|
||**2022**
_2021_|
||**£**
_£_|
|Purchases|**6,474**
_3,974_|
|Rent and rates|**3,246**
_3,120_|
|Light and heat|**1,642**
_2,334_|
|Print, post and stationery|**708**
_558_|
|Telephone|**668**
_552_|
|Repairs and renewals|**3,644**
_1,336_|
|Premises expenses|**1,870**
_1,847_|
|Website and marketing|**4,349**
_2,790_|
|Insurance|**1,997**
_2,034_|
|Bad debts|**(286)**
_50_|
|Miscellaneous expenses|**608**
_902_|
|Interest|**3,366**
_5,128_|
|500 Club expenses|**1,550**
_20_|
|Wages and salaries|**15,015**
_27,108_|
|Social security costs|**-**
_312_|
|Pension contributions|**148**
_385_|
|Depreciation of tangible fixed assets|**16,945**
_16,606_|
|||
|**Total 2022**|**61,944**
_69,056_|
Page 16
## **NEW CUT ARTS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **7. Analysis of expenditure by activities**
|Auditorium
Commission on art sales
_Total 2021_
**Analysis of direct costs**
Staff costs
Cinema films
Visiting theatre and music
Art shows
**Total 2022**
_Total 2021_|**Activities**
**undertaken**
**directly**
**2022**
**£**
34,930
2,270
37,200
_9,293_
**Auditorium**
**2022**
**£**
11,425
438
23,067
-
34,930
_8,471_|**Support**
**costs**
**2022**
**£**
96,244
-
96,244
_93,090_
**Art shows**
**2022**
**£**
-
-
-
2,270
2,270
_822_|**Total**
**funds**
**2022**
**£**
**131,174**
**2,270**
**133,444**
_102,383_
**Total**
**funds**
**2022**
**£**
**11,425**
**438**
**23,067**
**2,270**
**37,200**
_9,293_|_Total_
_funds_
_2021_
_£_
_101,561_
_822_|
|---|---|---|---|---|
|||||_102,383_|
|||||_Total_
_funds_
_2021_
_£_
_-_
_32_
_8,439_
_822_|
|||||_9,293_|
||||||
Page 17
**NEW CUT ARTS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **7. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Staff costs
Depreciation
Rent and rates
Light and heat
Telephone
Postage and stationary
Website and marketing
Repairs and renewals
Premises expenses
Insurance
Interest
Sundries
Professional fees
Bad debts
Accountancy|**Total**
**funds**
**2022**
**£**
**31,237**
**25,417**
**189**
**2,462**
**1,001**
**1,651**
**6,523**
**4,877**
**2,805**
**2,996**
**1,019**
**913**
**9,849**
**(429)**
**5,734**
**96,244**|_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_|
## **8. Independent examiner's remuneration**
The independent examiner's remuneration amounts to an independent examiner fee of £3,365 _(2021 - £3,666)_ , and other services including grant certification and VAT assistance of £2,569 ( _2021_ - _£2,959_ ).
Page 18
## **NEW CUT ARTS**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **9. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2022**
**£**
**57,191**
**-**
**634**
**57,825**|_2021_
_£_
_68,176_
_786_
_968_|
|---|---|---|
||||
|||_69,930_|
Staff costs include the cost of staff redundancies in the year of £Nil (2021: £2,091).
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|**2022**
**No.**
**5**
**2022**
**No.**
**3**|_2021_
_No._
_6_|
|---|---|---|
|||_2021_
_No._
_2_|
No employee received remuneration amounting to more than £60,000 in either year.
Total employee benefits of key management personnel were £27,271 (2021: £27,279).
## **10. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2021 - £NIL)_ .
During the year ended 31 March 2022, no Trustee expenses have been incurred _(2021 - £NIL)_ .
Page 19
## **NEW CUT ARTS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **11. Tangible fixed assets**
|**Cost or valuation**
At 1 April 2021
Additions
At 31 March 2022
**Depreciation**
At 1 April 2021
Charge for the year
At 31 March 2022
**Net book value**
At 31 March 2022
_At 31 March 2021_|**Land and**
**buildings**
**£**
**941,859**
**10,811**
**952,670**
**194,396**
**19,052**
**213,448**
**739,222**
_747,463_|**Plant and**
**machinery**
**£**
**309,483**
**24,398**
**333,881**
**180,967**
**23,309**
**204,276**
**129,605**
_128,516_|**Total**
**£**
**1,251,342**
**35,209**|
|---|---|---|---|
||||**1,286,551**|
||||**375,363**
**42,361**|
||||**417,724**|
||||**868,827**|
||||_875,979_|
Included in land and buildings is freehold land and property with a carrying value of £739,222 (2021 - £747 463) which is pledged as security for liabilities.
## **12. Stocks**
||**2022**|_2021_|
|---|---|---|
||**£**|_£_|
|Goods for sale and consumables|**3,000**|_-_|
Page 20
**NEW CUT ARTS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **13. Debtors**
|**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income|**2022**
**£**
**3,571**
**-**
**2,013**
**5,584**|_2021_
_£_
_753_
_4,848_
_13,472_|
|---|---|---|
||||
|||_19,073_|
## **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|**2022**
**£**
**5,561**
**25,000**
**1,193**
**1,889**
**303**
**1,977**
**3,875**
**39,798**|_2021_
_£_
_5,370_
_7,989_
_10,739_
_-_
_107_
_18_
_4,360_|
|---|---|---|
||||
|||_28,583_|
Page 21
**NEW CUT ARTS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **15. Creditors: Amounts falling due after more than one year**
|Bank loans
Other loans
Other creditors|**2022**
**£**
**64,416**
**1,000**
**-**
**65,416**|_2021_
_£_
_69,977_
_57,015_
_5,000_|
|---|---|---|
||||
|||_131,992_|
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|**2022**
**£**
**69,977**
**1,000**
**70,977**|_2021_
_£_
_75,347_
_6,000_|
|---|---|---|
||||
|||_81,347_|
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 2022**
## **16. Statement of funds**
## **Statement of funds - current year**
|**Balance at 1**
**April 2021**
**£**
**Unrestricted funds**
General Fund
**692,202**
**Restricted funds**
Cutting Edge
**60,203**
Refurbishment
**70,620**
Lighting
**15,272**
Flooring
**3,825**
Website
**5,000**
Foyle
**2,666**
Theatres Trust
**2,560**
Digital development
**16,120**
East Suffolk Covid Continuity
Fund
**-**
ACE Culture Recovery Fund
**-**
**176,266**
**Total of funds**
**868,468**|**Income**
**£**
**Expenditure**
**£**
**148,372**
**(111,514)**
**-**
**(3,224)**
**-**
**(6,019)**
**-**
**(2,291)**
**-**
**(574)**
**-**
**(3,056)**
**-**
**-**
**-**
**(1,924)**
**-**
**(13,792)**
**5,418**
**-**
**92,982**
**(52,994)**
**98,400**
**(83,874)**
**246,772**
**(195,388)**|**Transfers**
**in/out**
**£**
**60,065**
**-**
**(9,029)**
**-**
**-**
**-**
**(2,666)**
**(636)**
**(2,328)**
**(5,418)**
**(39,988)**
**(60,065)**
**-**|**Balance at**
**31 March**
**2022**
**£**
**789,125**|
|---|---|---|---|
||||**56,979**
**55,572**
**12,981**
**3,251**
**1,944**
**-**
**-**
**-**
**-**
**-**|
||||**130,727**|
||||**919,852**|
Page 23
## **NEW CUT ARTS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **16. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Unrestricted funds**
General Fund
**Restricted funds**
Cutting Edge
Refurbishment
Lighting
Flooring
Website
Foyle
Lectern
Theatres Trust
Sound and light
ACE Emergency Response
Fund
Business Energy Efficiency
Digital development
**Total of funds**|_Balance at_
_1 April 2020_
_£_
_595,128_
_63,642_
_85,668_
_17,967_
_4,500_
_-_
_-_
_2,000_
_-_
_-_
_-_
_-_
_-_
_173,777_
_768,905_|_Income_
_£_
_162,920_
_-_
_-_
_-_
_-_
_5,000_
_12,000_
_-_
_2,560_
_17,305_
_35,000_
_17,345_
_18,872_
_108,082_
_271,002_|_Expenditure_
_£_
_(126,829)_
_(3,439)_
_(6,019)_
_(2,695)_
_(675)_
_-_
_-_
_-_
_-_
_-_
_(29,030)_
_-_
_(2,752)_
_(44,610)_
_(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_|
Page 24
**NEW CUT ARTS**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **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 **Website Fund** and for the purpose of developing a new website and booking system.
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 held in the **ACE Culture Recovery Fund** were granted to support the centre through financial difficulties caused by national and local covid restrictions. A transfer of £35,000 was made from this fund to unrestricted funds in the year as the grant included this amount to restore operating reserves post-covid.
The funds held in the **East Suffolk Covid Recovery Fund** were for the purchase of a sound console.
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.
Page 25
**(A company limited by guarantee)**
## **NEW CUT ARTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **16. Statement of funds (continued)**
Where restricted funds are spent on the purchase of fixed assets where the asset is held for a general and not a restricted purpose, a transfer is made from restricted to unrestricted funds for the corresponding amount.
## **17. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|**Unrestricted**
**funds**
**2022**
**£**
Tangible fixed assets
740,044
Current assets
154,295
Creditors due within one year
(39,798)
Creditors due in more than one year
(65,416)
**Total**
789,125|**Restricted**
**funds**
**2022**
**£**
128,783
1,944
-
-
130,727|**Total**
**funds**
**2022**
**£**
**868,827**
**156,239**
**(39,798)**
**(65,416)**
**919,852**|
|---|---|---|
## **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_
_2021_
_£_
_726,059_
_117,934_
_(19,799)_
_(131,992)_
_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_|
|---|---|---|---|
## **18. Pension commitments**
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £634 (2021: £968). Contributions totalling £303 (2021: £107) were payable to the fund at the balance sheet date and are included in creditors.
Page 26
**NEW CUT ARTS (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **19. Operating lease commitments**
At 31 March 2022 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:
||||||**2022**|_2021_|
|---|---|---|---|---|---|---|
||||||**£**|_£_|
|Later than|1|year and not later than|5|years|**508**|_-_|
## **20. 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. A further £40,000 was repaid in the year ended 31 March 2022 with the final installment being paid in May 2022. Interest is charged on the loan at 3.5% per annum. In the year ended 31 March 2022, interest of £1,835 (2021: £2,198) was charged on the loan. The balance outstanding at the year end is £25,000 (2021: £64,004).
Payments totalling £2,800 (2021: £nil) were made in the year to K Posen, a trustee, for services received in relation to the Digital Archive project.
Payments totalling £3,829 (2021: £nil) were made in the year to Jo & Louis, of which J Leverett, a trustee, is a partner, for project management services received in relation to the Digital Archive project.
A payment of £160 (2021: £nil) was made in the year to T Casement, a trustee, for an interview fee.
The charity employs the spouse of one of the trustees. During the year, that employee received emoluments from the charity totalling £25,103 (2021: £25,103), including employer's pension contributions.
The payments are permitted by the charity's Governing Document.
Page 27