OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator. This document is also available as Markdown.

← New Cut Arts

2024-03-31-accounts

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 2024

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 - 6
Independent examiner's report 7 - 8
Statement of financial activities 9
Balance sheet 10 - 11
Notes to the financial statements 12 - 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 2024

Trustees S Bailey
U Hashim (resigned 19 September 2024)
K Don-Daniel (resigned 19 September 2024)
B Holloway
J Leverett (resigned 15 July 2023)
A Casement
J Jordan
N Jaffa
D Parkin
E Rodwell (appointed 21 November 2024)
G Maughan (appointed 1 November 2024)
A Dudeney (appointed 22 November 2024)
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 2024

The Trustees present their annual report together with the financial statements of the Company for the 1 April 2023 to 31 March 2024. 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:

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)'.

b. Strategies for achieving objectives

New Cut Arts is a charity and non-profit organisation. Its aim is to stand as a beacon of creativity and empowerment, harnessing the transformative power of art to connect individuals and communities across local, regional, and global landscapes. Its unwavering commitment to self-determination places individuals at the helm of decision-making, fostering a sense of ownership and agency in their artistic and creative journeys. New Cut Arts ignites a spark of inspiration, nurturing young artists and fostering creativity within the local community. This empowerment enables individuals to pursue their artistic passions, engage in creativity, and enrich the cultural landscape. Through its comprehensive range of youth programmes in arts, dance and media, The Cut engages young people, fostering a thriving artistic community. Committed to expanding its community’s artistic horizons, The Cut also actively seeks to attract wider audiences, bridging the gap between local, regional, national, and international artistic expressions. Welcoming travelling groups and fostering international exchange programmes, New Cut Arts cultivates creativity, cross-cultural understanding and collaboration, weaving a tapestry of global connections that transcend boundaries and unite individuals through the transformative power of art.

Page 2

NEW CUT ARTS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Achievements and performance

a. Main achievements of the Company

The Cut continues to offer its community and beyond a full programme of events and a stimulating environment for a wide range of groups in a challenging economic environment. Our 11 studio and business units remain in demand and are fully occupied providing essential income for the organisation. In spite of a very competitive funding climate The Cut fulfils its objectives to provide a programme of opportunities for young people notably through the James Holloway Youth Arts Fund and in July 2024 successfully launched its first international artists residency for 42 artists and 14 artist mentors, using the entire building to create a memorable and intensive 9 days of creativity.

Financial review

a. Going concern

The Trustees have considered the Charity's position at the time of signing the financial statements, and in particular, they have considered the Charity’s cash reserves 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

Purpose

Unrestricted funds serve as a cornerstone of New Cut Art's financial management, providing flexibility, decisionmaking autonomy, and adaptability to support its mission and objectives. By effectively managing unrestricted funds, we can safeguard financial stability, foster strategic agility, and achieve continued success in fulfilling our mission.

This Operating Reserve Policy is designed to enable New Cut Arts to build and maintain an adequate level of unrestricted cash reserves to support the organisation's day-to-day operations in the event of unforeseen shortfalls. Operating reserves are not intended to replace a permanent loss of funds or eliminate an ongoing budget deficit. These funds represent financial resources that can be utilised for any purpose aligned with our mission and objectives. They are not restricted to specific projects or programs and can be employed to cover operating expenses, make strategic investments, or pursue innovative initiatives.

Page 3

NEW CUT ARTS (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Definition and Goals

New Cut Arts adheres to a strict segregation policy, managing unrestricted funds separately from designated and restricted funds, which are for specific projects or purposes as specified by the Trustees, donor or funding sources. This clear distinction ensures financial transparency, ethical stewardship, and adherence to the intent of all funders and contract providers. Unrestricted funds are utilised for general operations, while restricted funds are earmarked for specific projects or purposes in accordance with the defined guidelines.

We identify our unrestricted funds, New Cur Art's reserves, as ‘Core Costs’ and ‘Contingency’:

  1. Core Costs: With the goal of safeguarding the organisation's long-term sustainability and ability to deliver uninterrupted services, the operating reserve (‘Core Costs’) is set at a minimum of six months of recurring operating costs, calculated based on the maximum six-months expenditure. This six-month policy ensures The Cut can maintain its operations, providing continuous support and the centre’s activities for an extended timeframe

  2. Contingency: To enhance our financial preparedness, we aim to gradually increase our contingency funds (‘Contingency’) to a minimum of 3 months over the next five years. These contingency funds will serve as a safeguard against unforeseen liabilities and expenditures.

These reserves (both ‘Core Costs’ and ‘Contingency’) will be reported to the Board of Trustees and included in the regular financial reports to ensure that we are working towards achieving our objectives.

Reserve levels

Free reserves are defined as unrestricted funds not represented by fixed assets and excluding designated funds. The charity's free reserves at 31 March 2024 were in deficit of £20,524 (2023: surplus of £4,259). After excluding long term debt, our operating reserves at 31 March 2024 stood at £34,035 (2023: £65,097). This is equivalent to between 1 and 2 months of current unrestricted operating costs. Our aim is to increase this to a minimum of six months.

Unrestricted funds at 31 March 2024 were £695,729 (2023: £733,467) and restricted funds were £90,199 (2023: £109,668), meaning total funds were £785,928 (2023: £843,135).

Review of reserve policy

This policy will undergo annual review by the Board of Trustees, or sooner if deemed necessary due to internal or external events or changes. Recommendations for policy amendments will be presented to the Board of Trustees by the Centre Manger. Upon approval, each revision will be documented in writing and redistributed as required. The policy's purpose remains steadfast: to safeguard the financial health and integrity of the organisation in pursuit of its mission as outlined in the policy's Purpose section.

Page 4

NEW CUT ARTS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

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.

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 5

NEW CUT ARTS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

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:

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:

A Casement

(Trustee) Date:

28 Jan 2025

Page 6

NEW CUT ARTS (A company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2024

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 2024.

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 7

NEW CUT ARTS

(A company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

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 8

NEW CUT ARTS

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024

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 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
2024
£
15,763
76,623
114,247
860
207,493
84,306
169,954
254,260
(46,767)
9,029
(37,738)
733,467
(37,738)
695,729		 Restricted
funds
2024
£
9,700
-
-
-
9,700
20,140
-
20,140
(10,440)
(9,029)
(19,469)
109,668
(19,469)
90,199		 Total
funds
2024
£
25,463
76,623
114,247
860
217,193
104,446
169,954
274,400
(57,207)
-
(57,207)
843,135
(57,207)
785,928		 Total
funds
2023
£
18,661
68,624
93,799
116
181,200
88,467
169,450
257,917
(76,717)
-
(76,717)
919,852
(76,717)
843,135

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 12 to 27 form part of these financial statements.

Page 9

NEW CUT ARTS

(A company limited by guarantee) REGISTERED NUMBER: 06461027

BALANCE SHEET AS AT 31 MARCH 2024

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
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 3,000
7,199
57,036
67,235
(21,737)		 2024
£
794,989
794,989
45,498
840,487
(54,559)
785,928
90,199
695,729
785,928		 3,000
1,483
93,521
98,004
(23,892)		 2023
£
829,861
829,861
74,112
903,973
(60,838)
843,135
109,668
733,467
843,135

Page 10

NEW CUT ARTS

(A company limited by guarantee) REGISTERED NUMBER: 06461027

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2024

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:

A Casement

(Trustee) Date:

28 Jan 2025

The notes on pages 12 to 27 form part of these financial statements.

Page 11

NEW CUT ARTS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 12

NEW CUT ARTS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 including all accountancy and legal fees incurred.

2.5 Government grants

Government 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..

2.6 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.

2.7 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.

Page 13

NEW CUT ARTS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation (continued)

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 Computer equipment - 33% on cost

2.8 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

2.9 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.

2.10 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.

2.11 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.

2.12 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.

Page 14

NEW CUT ARTS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.13 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.

2.14 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.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

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 15

NEW CUT ARTS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

3. Income from donations and grants

Unrestricted
funds
2024
£
Donations
4,661
Grants
4,500
Government grants
-
500 Club
6,602
Total 2024
15,763
Total 2023
18,120		 Restricted
funds
2024
£
-
9,700
-
-
9,700
541		 Total
funds
2024
£
4,661
14,200
-
6,602
25,463
18,661		 Total
funds
2023
£
7,840
3,000
541
7,280
18,661

4. Income from charitable activities

Unrestricted
funds
2024
£
Auditorium
56,873
Commission on art sales
994
Room hire and rent
13,981
Educational courses
4,775
Total 2024
76,623
Total 2023
68,624		 Total
funds
2024
£
56,873
994
13,981
4,775
76,623
68,624		 Total
funds
2023
£
53,843
86
14,695
-
68,624

Page 16

NEW CUT ARTS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

5. Other trading activities

6.

Unrestricted
funds
2024
£
Fundraising events
5,695
Cafe and bar income
60,434
Programme advertising
(72)
Room hire
48,190
Total 2024
114,247
Total 2023
93,799
Expenditure on raising funds		 Unrestricted
funds
2024
£
Fundraising events
5,695
Cafe and bar income
60,434
Programme advertising
(72)
Room hire
48,190
Total 2024
114,247
Total 2023
93,799
Expenditure on raising funds		 Total
funds
2024
£
5,695
60,434
(72)
48,190
114,247
93,799
Total
funds		 Total
funds
2023
£
4,745
43,247
1,313
44,494
93,799
Total
funds
2024 2023
£ £
Cafe and bar purchases and consumables 27,481 20,446
Catering wages 37,644 25,481
500 Club expenses 2,000 1,200
Allocation of support costs 37,321 41,340
Total 2024 104,446 88,467
Total 2023 88,467

Page 17

NEW CUT ARTS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

7. Analysis of expenditure by activities

Auditorium
Commission on art sales
Total 2024
Total 2023
Analysis of direct costs
Staff costs
Cinema films
Visiting theatre and music
Art shows
Technical labour
Total 2024
Total 2023		 Activities
undertaken
directly
2024
£
43,373
1,565
44,938
48,122
Auditorium
2024
£
17,712
693
24,968
-
-
43,373
46,852		 Support
costs
2024
£
125,016
-
125,016
121,328
Art shows
2024
£
-
-
-
1,565
-
1,565
1,270		 Total
funds
2024
£
168,389
1,565
169,954
169,450
Total
funds
2024
£
17,712
693
24,968
1,565
-
44,938
48,122		 Total
funds
2023
£
168,180
1,270
169,450
Total
funds
2023
£
16,893
750
28,909
1,270
300
48,122

Page 18

NEW CUT ARTS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

7. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Rent and rates
Light and heat
Telephone
Print, post, stationary and computer costs
Website and marketing
Repairs and renewals
Premises expenses and equipment hire
Training costs
Insurance
Interest and bank charges
Sundries
Professional fees
Accountancy
Allocation of support costs to fundraising costs		 Total
funds
2024
£
37,830
36,294
3,826
14,812
1,647
4,502
1,895
6,988
2,534
509
5,309
8,142
6,843
23,829
7,377
(37,321)
125,016		 Total
funds
2023
£
39,994
38,966
4,749
14,613
1,475
4,564
4,627
13,638
3,360
10
5,381
7,494
4,473
11,437
7,887
(41,340)
121,328

8. Independent examiner's remuneration

The independent examiner's remuneration amounts to an independent examiner fee of £4,815 (2023 - £4,675) , and other services including VAT assistance of £1,490 ( 2023 - £1,130 ).

Page 19

NEW CUT ARTS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2024
£
91,267
484
1,435
93,186		 2023
£
81,347
-
1,021
82,368

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		 2024
No.
6
2024
No.
4		 2023
No.
6
2023
No.
4

No employee received remuneration amounting to more than £60,000 in either year.

Total employee benefits of key management personnel were £37,428 (2023: £37,604).

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2023 - £NIL) .

During the year ended 31 March 2024, no Trustee expenses have been incurred (2023 - £NIL) .

Page 20

NEW CUT ARTS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

11. Tangible fixed assets

Cost or valuation
At 1 April 2023
Additions
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Land and
buildings
£
952,670
-
952,670
232,500
19,052
251,552
701,118
720,170		 Plant and
machinery
£
333,881
1,422
335,303
224,190
17,242
241,432
93,871
109,691		 Total
£
1,286,551
1,422
1,287,973
456,690
36,294
492,984
794,989
829,861

Included in land and buildings is freehold land and property with a carrying value of £701,118 (2023 - £720,171) which is pledged as security for liabilities.

12. Stocks

2024 2023
£ £
Goods for sale and consumables 3,000 3,000

Page 21

NEW CUT ARTS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

13. Debtors

Due within one year
Trade debtors
Prepayments and accrued income		 2024
£
4,699
2,500
7,199		 2023
£
1,483
-
1,483

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		 2024
£
5,196
1,000
-
4,847
465
2,572
7,657
21,737		 2023
£
4,836
-
5,396
5,446
210
2,704
5,300
23,892

15. Creditors: Amounts falling due after more than one year

Bank loans
Other loans		 2024
£
54,559
-
54,559		 2023
£
59,838
1,000
60,838

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 by October 2032 and is secured on the property to which it relates.

Page 22

NEW CUT ARTS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

16. Statement of funds

Statement of funds - current year


Unrestricted funds
Designated funds
James Holloway Youth Fund
Summer Project
General funds
General Fund
Total Unrestricted funds
Restricted funds
Cutting Edge
Refurbishment
Lighting
Flooring
James Holloway Youth Fund
Total of funds		 Balance at 1
April 2023
£
4,735
4,280
9,015
724,452
733,467
55,347
40,524
11,034
2,763
-
109,668
843,135		 Income
£

1,315
8,275
9,590
197,903
207,493
-
-
-
-
9,700
9,700
217,193		 Expenditure
£
(303)
(6,839)
(7,142)
(247,118)
(254,260)
(2,351)
(6,019)
(1,655)
(415)
(9,700)
(20,140)
(274,400)		 Transfers
in/out
£
-
-
-
9,029
9,029
-
(9,029)
-
-
-
(9,029)
-		 Balance at
31 March
2024
£
5,747
5,716
11,463
684,266
695,729
52,996
25,476
9,379
2,348
-
90,199
785,928

Page 23

NEW CUT ARTS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
James Holloway Youth Fund
Summer Project
General funds
General Fund
Total Unrestricted funds
Restricted funds
Cutting Edge
Refurbishment
Lighting
Flooring
Website
East Suffolk Covid Continuity
Fund
Total of funds		 Balance at
1 April 2022
£
-
-
-
789,125
789,125
56,979
55,572
12,981
3,251
1,944
-
130,727
919,852		 Income
£
5,215
5,000
10,215
170,444
180,659
-
-
-
-
-
541
541
181,200		 Expenditure
£
(480)
(720)
(1,200)
(244,687)
(245,887)
(1,632)
(6,019)
(1,947)
(488)
(1,944)
-
(12,030)
(257,917)		 Transfers
in/out
£
-
-
-
9,570
9,570
-
(9,029)
-
-
-
(541)
(9,570)
-		 Balance at
31 March
2023
£
4,735
4,280
9,015
724,452
733,467
55,347
40,524
11,034
2,763
-
-
109,668
843,135

Page 24

(A company limited by guarantee)

NEW CUT ARTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 in the East Suffolk Covid Recovery Fund were for the purchase of a sound console.

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.

Designated funds represent funds set aside for specific projects. The James Holloway Youth Fund has been established to support talented young people who would not otherwise have access to arts activities. The funds in the Summer Project Fund will be used to support up to 40 emerging artists to participate in a unique multidisciplinary arts project in the summer of 2024.

Page 25

(A company limited by guarantee)

NEW CUT ARTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

17. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
2024
£
Tangible fixed assets
704,790
Current assets
67,235
Creditors due within one year
(21,737)
Creditors due in more than one year
(54,559)
Total
695,729		 Restricted
funds
2024
£
90,199
-
-
-
90,199		 Total
funds
2024
£
794,989
67,235
(21,737)
(54,559)
785,928

Analysis of net assets between funds - prior period

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2023
£
720,193
98,004
(23,892)
(60,838)
733,467		 Restricted
funds
2023
£
109,668
-
-
-
109,668		 Total
funds
2023
£
829,861
98,004
(23,892)
(60,838)
843,135

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 £1,021 (2022: £634). Contributions totalling £210 (2022: £303) 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 2024

19. Operating lease commitments

At 31 March 2024 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

2024 2023
£ £
Later than 1 year and not later than 5 years 508 508

20. Related party transactions

Payments totalling £470 (2023: £371) were made in the year to Dean Parkin, a trustee, including £248 for hosting the Big Cut Quiz and £222 (2023: £Nil) representing reimbursement for the sale of books.

The charity employs the spouse of one of the trustees. During the year, that employee received emoluments from the charity totalling £34,091 (2023: £34,091), including employer's pension contributions.

The payments are permitted by the charity's Governing Document.

Page 27

SIGNATURE CERTIFICATE

Document

Name Accounts to sign.pdf Creator Chris Yeates (chris.yeates@larking-gowen.co.uk) Date 28 January 2025 13:06:46 UTC Identifier 0f79fec7-d7c8-4d03-afcc-fcfc359a9815

Signers

anthony.casement@yahoo.com

E-mail anthony.casement@yahoo.com Signed 28 January 2025 14:17:23 UTC IP address 109.145.138.39