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2021-03-31-accounts

Charity Registration No. 1129007

Company Registration No. 05988546 (England and Wales)

ROYAL COURT LIVERPOOL TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

ROYAL COURT LIVERPOOL TRUST LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr J M Falkingham
Mr M P Featherstone-Witty
Mr M J Best
Councillor W A Simon
Professor N P Weatherill (Chair)
Miss H E Summers
Mr M R W Bessman
Mr K E Dunn
Mr L D Heseltine
Ms J Bird
Ms J Hargreaves
Secretary Miss G I Miller
Charity number 1129007
Company number 05988546
Registered office Royal Court Theatre
1 Roe Street
Liverpool
L1 1HL
Auditor DSG
Castle Chambers
43 Castle Street
Liverpool
L2 9TL

ROYAL COURT LIVERPOOL TRUST LIMITED

CONTENTS

Page
Trustees report 1 - 4
Statement of Trustees responsibilities 5
Independent auditor's report 6 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 24

ROYAL COURT LIVERPOOL TRUST LIMITED

TRUSTEES REPORT (INCLUDING DIRECTOR'S REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report and financial statements for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Trust's Memorandum and Articles of Association , the Companies Act 2006 and "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)".

Objectives and activities

The Trust's objectives are:

-To conserve and preserve historic buildings and other structures for the benefit of the public, without prejudice to the generality of the foregoing in particular the Royal Court Theatre in Liverpool.

-To advance the education of the public in the arts, including but not exclusively theatre and the performing arts.

-To promote for the benefit of the inhabitants of Merseyside and the surrounding area the provision of facilities for recreation or other leisure time occupation of individuals who have the need of such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving the condition of life of the said inhabitants and members of the general public in drama, opera, music and other arts.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Trust should undertake.

Achievements and performance

Chief Executive’s Introduction

2020-2021 was unprecedented with the pandemic creating an environment we have never experienced before. Our survival has been thanks to support from the DCMS Culture Recovery Fund programme administered through Arts Council England. The theatre was forced to close to the public at the end of March 2020 due to the Coronavirus pandemic. Lockdown 1 lasted until the end of October 2020 with a further lockdown at the end of December 2020 lasting until June 2021.

During closure all staff were retained through the CJRS government scheme. Participatory activities including the youth theatre and choir moved online. When restrictions eased in Summer 2020, youth theatre activity took place in a socially distanced manner in the theatre using the auditorium, studio and other public areas to keep groups separate. Vulnerable participants were contacted regularly by freelance staff by phone and email. Box office staff worked throughout rearranging tickets, refunding people for shows that were cancelled or rescheduled for future months and making sure audiences were kept informed. Box office staff and volunteers phoned more elderly audience members on a regular basis to see how they were coping with the pandemic.

Our head Chef volunteered his time to cook for the local community centre throughout the pandemic to support the most vulnerable people in our neighbouring community of Everton.

Staff were supported with back to work interviews and counselling sessions where required.

The theatre was able to open in early December 2020 for three weeks to present The Royal Court Selection Box. The show employed two separate casts and crew to keep all as safe as possible. The theatre was forced to close again in December 2020 as the government announced a second national lockdown.

ROYAL COURT LIVERPOOL TRUST LIMITED

TRUSTEES REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Throughout the period 1 April 2020 – 31 March 2021 we delivered:

Youth Theatre

Sessions - 136 Masterclasses - 39 Theatre Visits - 1 Theatre Visit Participants - 22 One to One Work - 817 Mentoring Participants – 45 Youth theatre participants – 2 , 236 Summer school sessions – 144 Summer school participants – 66 Summer school Engagements – 2 , 160

Choir

Choir sessions – 48 Performances - 2 No. of theatre visits/dress – 1 Theatre Visit Participants – 60 Participants - 5 , 301

Performances – 18 Tickets Sold – 4 , 788 YouTube views – 48 , 334 Website pages viewed – 251 , 256

Other activities during this period included running regular Liverpool City Region What Next Sessions for all involved in the cultural sector. These sessions are free to access and in 2020-2021 focussed on the issues arising from the Black Lives Matter movement, the response from the cultural sector and discussions around equality and diversity throughout the sector.

A notable event for the theatre was an online show, The Happiness Show, to mark a new initiative for the city, Doddy Day in memory of the late Sir Ken Dodd. Comedians, performers and musicians from all over the country paid tribute to Sir K en while celebrating the need for happiness throughout the city in these difficult times. The Happiness Show will be repeated in future years and will help the city to celebrate happiness in all its wide forms across all communities and ages. This event was delivered in partnership with The Comedy Trust, Sir Ken Dodd Charitable Foundation and Knotty Ash Productions.

Financial review

The Trust had total incoming resources in the sum of £1,198,178 (2020: £577,454) and expended £1,107,198 (2020: £576,380) resulting in net income for the year of £90,980 (2020: £1,074).

At the period end the trust had net assets of £7,800,552 (2020: £7,709,572) of which £24,505 (2020: £Nil) was held within restricted funds and £7,209,727 (2020: £7,364,771) within designated funds. The designated fund reflects the net book value of the tangible fixed assets used operationally by the charity.

Activities during the period are in line with expectations.

It is the aim of the Trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month's expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Trust's current activities while consideration is given to ways in which additional funds may be raised.

Revenue and capital grants remain the principle sources of funding.

ROYAL COURT LIVERPOOL TRUST LIMITED

TRUSTEES REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

The Trustees have assessed the major risks to which the Trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Our risk register is reviewed on a regular basis by the T rustees and senior management. Mitigating actions are taken to minimise the likelihood and impact of all risks. The following are the key risks and uncertainties facing the charity :-

Plans for future periods

The theatre continues to work with other theatres in the region to develop a more strategic approach to the theatre ecology in the region.

Work has continued to develop the key capital projects for the theatre with an update to The Everton Workshop pre-investment study in light of the Covid pandemic. The study concluded that there was more need for a joint theatres resource in the region which will respond to issues of unemployment created by the pandemic, skills shortages and transport issues caused by Brexit and help to reduce the carbon footprint for theatres across the region with a centralised set building facility. A renewed fundraising campaign to raise the £3.5m required to deliver the newly named Everton Mint project will be launched in 2022.

We are still waiting on planning permission for Act V – the extension of theatre back of house facilities over the existing Courtyard structure to join this to the theatre building. Additional backstage facilities including dressing rooms, technical area and staff rooms will enable to the theatre to attract larger touring work to the city. Liverpool City Council Planning Department are experiencing long delays as a result of the Caller Report in May 2021 which made several key recommendations about how the department functioned. It is expected that planning permission will be granted in 2022.

Both capital schemes address recent theatre reviews commissioned by Arts Council England and Liverpool City Council which encourage theatres to work more closely and efficiently to enhance theatre provision across the region.

Throughout 2019/20 the Trust continued to work closely with Liverpool Theatre Management and a report was produced by auditors DSG as to how the two companies might restructure to best serve the theatre going forward to produce a more stable and sustainable business model. The recommendations were agreed by the Board in May 2021 and work continues to restructure the companies. The new company structure will be in place by April 2022.

We plan to continue to develop all of our theatre productions and participation activities going forward and to recover from the effects of the pandemic as best we can. The theatre re-opened in July 2022 with social distancing and has remained open since reverting to full capacity in August 2021. Audience number have been good although not yet back to pre-pandemic levels. A second and third DCMS Culture Recovery grant have been achieved which will help to sustain the theatre through the continuing pandemic.

We continue to be extremely proud of all Board, staff, creatives and audiences involved in the theatre who have worked hard to ensure that the theatre survives and that the local communities it serves are supported during this time of need and uncertainty. We hope to be able to return to full operation during 2022 and beyond.

Structure, governance and management

The Trust is a company limited by guarantee and a registered charity. Its governing document is its Memorandum and Articles of Association as amended by special resolution dated 19 March 2008.

ROYAL COURT LIVERPOOL TRUST LIMITED

TRUSTEES REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

The Trustees, who are also the directors for the purpose of company law, and who served during the year were: Mr J M Falkingham Mr M P Featherstone-Witty Mr M J Best Councillor W A Simon Professor N P Weatherill (Chair) Miss H E Summers Mr M R W Bessman Mr K E Dunn Mr L D Heseltine Ms J Bird Ms J Hargreaves

The Board of Trustees govern the policy of the charity. All trustees give of their time freely and no remuneration was paid in the year. The management of the charity is delegated to the Chief Executive Officer, G Miller who is responsible to the board of Trustees for all aspects of the operation of the charity.

New Trustees are elected at a meeting of the board of Trustees and are appointed on merit for their standing in the community and particular skills and success in their own field of work and in relation to the aims and objectives of the Trust.

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The Trustees have responsibility for setting the pay and remuneration of the charity’s key personnel and this is done on an annual basis, including a formal cost of living review. Salaries are benchmarked with other similar organisations across the sector.

Mr K J Fearon is Chief Executive of Liverpool Theatres Management and Royal Court Limited (not a director), a director of Liverpool Food Company Limited, Simply Tickets Limited and Sightlines Limited, and the husband of G Miller, Chief Executive of the Royal Court Liverpool Trust Limited. Transactions and balances with these entities are disclosed in the notes to the accounts.

Auditor

In accordance with the company's articles, a resolution proposing that DSG be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees r eport was approved by the Board of Trustees.

Mr M J Best Trustee

24 January 2022

ROYAL COURT LIVERPOOL TRUST LIMITED

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees, who are also the directors of Royal Court Liverpool Trust Limited for the purpose 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 year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Trust 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 Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ROYAL COURT LIVERPOOL TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF ROYAL COURT LIVERPOOL TRUST LIMITED

Opinion

We have audited the financial statements of Royal Court Liverpool Trust Limited (the ‘Trust’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice) .

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and , except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ROYAL COURT LIVERPOOL TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ROYAL COURT LIVERPOOL TRUST LIMITED

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Trust and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the Trustees r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees r esponsibilities, the Trustees, who are also the directors of the Trust for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .

ROYAL COURT LIVERPOOL TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ROYAL COURT LIVERPOOL TRUST LIMITED

Capability of the audit in detecting irregularities, including fraud

Based on our discussions with the charity’s management and the Trustees, we identified that the following laws and regulations are significant to the entity:

These matters were discussed amongst the engagement team at the planning stage and the team remained alert to non-compliance throughout the audit.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Moss BA FCA (Senior Statutory Auditor) for and on behalf of DSG

24 January 2022

Chartered Accountants Statutory Auditor

Castle Chambers 43 Castle Street Liverpool L2 9TL

ROYAL COURT LIVERPOOL TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
400,887
760,225
Charitable activities
4
37,000
-
Other trading activities
5
-
-
Investments
6
66
-
Other income
7
-
-
Total income
437,953
760,225
Expenditure on:
Charitable activities
8
398,002
709,149
Other
12
47
-
Total resources expended
398,049
709,149
Net incoming resources
before transfers
39,904
51,076
Gross transfers
between funds
26,571
(26,571)
Net income for the year/
Net movement in funds
66,475
24,505
Fund balances at 1 April 2020
7,709,572
-
Fund balances at 31 March
2021
7,776,047
24,505		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
1,161,112
410,275
6,465
37,000
143,001
-
-
15,000
-
66
213
-
-
2,500
-
1,198,178
570,989
6,465
1,107,151
534,733
41,465
47
182
-
1,107,198
534,915
41,465
90,980
36,074
(35,000)
-
-
-
90,980
36,074
(35,000)
7,709,572
7,673,498
35,000
7,800,552
7,709,572
-		 Total
2020
£
416,740
143,001
15,000
213
2,500
577,454
576,198
182
576,380
1,074
-
1,074
7,708,498
7,709,572
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
Total income
Expenditure on:
Charitable activities
8
Other
12
Total resources expended
Net incoming resources
before transfers
Gross transfers
between funds
Net income for the year/
Net movement in funds
Fund balances at 1 April 2020
Fund balances at 31 March
2021

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

ROYAL COURT LIVERPOOL TRUST LIMITED

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
16
Unrestricted funds
Designated funds
17
General unrestricted funds		 2021
£
£
7,209,727
578,556
863,409
1,441,965
(851,140)
590,825
7,800,552
24,505
7,209,727
566,320
7,776,047
7,800,552		 2020
£
£
7,364,771
340,327
192,103
532,430
(187,629)
344,801
7,709,572
-
7,364,771
344,801
7,709,572
7,709,572

The financial statements were approved by the Trustees on 24 January 2022

Mr M J Best

Trustee

Company Registration No. 05988546

ROYAL COURT LIVERPOOL TRUST LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
22
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash used in investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(38,337)
66		 £
709,577
(38,271)
-
671,306
192,103
863,409		 2020
£
(65,305)
213		 £
(12,679)
(65,092)
-
(77,771)
269,874
192,103

ROYAL COURT LIVERPOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Royal Court Liverpool Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Royal Court Theatre, 1 Roe Street, Liverpool, L1 1HL.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Trust's Memorandum and Articles of Association, the Companies Act 2006 and "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 Trust is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the Trust . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

As part of assessing the potential impact of the ongoing COVID 19 virus situation management have prepared revised financial forecasts for the charitable company. These forecasts indicate that the charitable company will continue to generate cash over the period considered by them in their assessment of the appropriateness of adopting the going concern basis in the preparation of these financial statements. Management has also considered the impact of potential operational challenges posed by COVID 19 and have concluded that any operational pressures caused directly by the COVID 19 situation are unlikely to have a material impact on the charitable company. On this basis the trustees consider it appropriate to prepare these financial statements on a going concern basis.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income from Government and other grants, whether capital grants or r evenue grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. In respect of the furlough grant; all conditions, with respect to the eligible costs being claimed, need to be met.

1.5 Expenditure

Expenditure is accounted for on an accruals basis.

ROYAL COURT LIVERPOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings 2% straight line Leasehold improvements 2% straight line Fixtures, fittings, equipment & computers 3 years and 10 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

Depreciation is not charged on assets under construction.

1.7 Impairment of fixed assets

At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Trust 's balance sheet when the Trust becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

ROYAL COURT LIVERPOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Trust transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Trust ’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

ROYAL COURT LIVERPOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

2 Critical accounting estimates and judgements

In the application of the Trust’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
23,904
1,000
Grant income
376,983
759,225
400,887
760,225
Donations and gifts
£1 Ticket levy
-
-
Lady Anne Dodd
20,000
-
Other
3,904
1,000
23,904
1,000
Grants receivable for
core activities
Arts Council England -
Revenue Funding
224,140
-
Liverpool City Council -
Core funding
28,980
-
Liverpool City Council -
Covid related funding
104,755
-
Culture Recovery Fund
-
729,915
National Lottery
Community Fund
-
8,470
Difference Matters -
"Cured"
-
15,840
Charities Trust
-
5,000
CJRS
19,108
-
Other
-
-
376,983
759,225		 TotalUnrestricted
funds
2021
2020
£
£
24,904
137,675
1,136,208
272,600
1,161,112
410,275
-
133,728
20,000
-
4,904
3,947
24,904
137,675
224,140
245,000
28,980
27,600
104,755
-
729,915
-
8,470
-
15,840
-
5,000
-
19,108
-
-
-
1,136,208
272,600		 Restricted
funds
2020
£
3,500
2,965
6,465
-
-
3,500
3,500
-
-
-
-
-
-
-
-
2,965
2,965		 Total
2020
£
141,175
275,565
416,740
133,728
-
7,447
141,175
245,000
27,600
-
-
-
-
-
-
2,965
275,565

ROYAL COURT LIVERPOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

3
Donations and legacies
4
Charitable activities
Sales within charitable activities
Charitable rental income
5
Other trading activities
Sponsorships and social lotteries
6
Investments
Interest receivable
7
Other income
Other income		 (Continued)
2021
2020
£
£
7,000
81,001
30,000
62,000
37,000
143,001
TotalUnrestricted
funds
2021
2020
£
£
-
15,000
UnrestrictedUnrestricted
funds
funds
2021
2020
£
£
66
213
TotalUnrestricted
funds
2021
2020
£
£
-
2,500

ROYAL COURT LIVERPOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

8 Charitable activities

Staff costs
Depreciation and impairment
Marketing and publicity
Rent, rates and utilities
Insurance
Workshops
Sundry expenses, hospitality and travel
Programme delivery
Printing, postage and stationery
Youth Theatre
Repairs and renewals
Legal, professional and consultancy
Chief Executive fees
Operating support costs
Share of governance costs (see note 9)
Analysis by fund
Unrestricted funds
Restricted funds
9
Support costs
Support
costs
Governance
costs
£
£
Audit fees
-
5,300
-
5,300
Analysed between
Charitable activities
-
5,300		 2021
£
5,300
5,300
5,300		 2021
£
59,279
193,381
10,191
36,404
26,966
70
18,527
163,307
378
41,336
41,878
39,347
50,000
420,787
1,101,851
5,300
1,107,151
398,002
709,149
1,107,151
Support
costs
Governance
costs
£
£
-
5,810
-
5,810
-
5,810		 2020
£
64,007
189,920
16,240
31,385
26,189
3,438
16,669
-
398
141,959
6,147
24,036
50,000
-
570,388
5,810
576,198
534,733
41,465
576,198
2020
£
5,810
5,810
5,810

Governance costs include payments to the auditors of £5,275 (2020: £5,075) in respect of audit fees.

ROYAL COURT LIVERPOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

10 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year.

11 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
2 2
Employment costs 2021 2020
£ £
Wages and salaries 57,485 61,669
Social security costs 895 1,529
Other pension costs 899 809
59,279 64,007

No employees receive total employee benefit of over £60,000.

There were no employees whose annual remuneration was more than £60,000.

12 Other

Unrestricted Unrestricted
funds funds
2021 2020
Financing costs 47 182
47 182

ROYAL COURT LIVERPOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

13 Tangible fixed assets

Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation and impairment
At 1 April 2020
Depreciation charged in the year
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020		 Land and
buildings
Leasehold
improvements
Fixtures,
fittings,
equipment &
computers
£
£
£
1,212,773
6,758,701
315,810
-
-
38,337
1,212,773
6,758,701
354,147
80,851
734,905
106,757
24,255
135,174
33,952
105,106
870,079
140,709
1,107,667
5,888,622
213,438
1,131,922
6,023,796
209,053		 Total
£
8,287,284
38,337
8,325,621
922,513
193,381
1,115,894
7,209,727
7,364,771

Liverpool City Council and The Arts Council of England have a legal charges over the goodwill, property and all other assets of the charity.

14 Debtors

Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 2021
£
113,577
108,615
356,364
578,556		 2020
£
116,577
-
223,750
340,327

15 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
2,097
26,202
676,581
146,260
851,140		 2020
£
6,436
11,074
32,262
137,857
187,629

ROYAL COURT LIVERPOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

16 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds
Balance at 1
December
2016
Incoming
resources
Resources
expended
Balance at
1 April 2020

£
£
£
£
National Lottery Community Fund
-
-
-
-
Difference Matters
-
-
-
-
Charities Trust
-
-
-
-
Hemby Trust
-
-
-
-
Duchy of Lancaster
10,000
-
(10,000)
-
Public Health England
-
1,000
(1,000)
-
Culture Recovery Fund
-
-
-
-
BBC Children In Need
-
2,000
(2,000)
-
Arts Admin
-
965
(965)
-
The Alchemy Foundation
25,000
-
(25,000)
-
Other
-
2,500
(2,500)
-
35,000
6,465
(41,465)
-		 Movement in funds
Incoming
resources
Resources
expended
£
£
8,470
-
15,840
(5,805)
5,000
-
1,000
-
-
-
-
-
729,915
(703,344)
-
-
-
-
-
-
-
-
760,225
(709,149)		 Transfers
Balance at
31 March 2021
£
£
-
8,470
-
10,035
-
5,000
-
1,000
-
-
-
-
(26,571)
-
-
-
-
-
-
-
-
-
(26,571)
24,505

ROYAL COURT LIVERPOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

16 Restricted funds

(Continued)

In 2019 restricted capital funds of £7,411,175 were released into general unrestricted funds as the Trustees believe that the terms of these gifts, which were the funding of the build and renovation of the tangible fixed asset and purchase of an adjacent building have been met.

The National Lottery Community Fund was a grant towards was for the Youth Theatre Summer School 2020 which ran in the Community College during August 2021.

Difference Matters- funding in respect of the project Cured.

The Charities Trust grant was a grant from Barclays Bank to support front of house staff while the theatre was closed in 2020.

The Hemby Trust grant was a grant toward the Youth Theatre.

Culture Recovery Fund - An award from a grants programme to protect the UK's culture and heritage sectors from the economic impacts of Covid-19. The grant was to support the reopening of the Theatre, either fully or partially, or operate on a sustainable, cost-efficient basis until able to reopen at a later date. The terms of the funding include items of expenditure incurred by related entities Royal Court Limited , Liverpool Food Company Limited and Simply Tickets Limited which have been recharged to the charity.

Duchy of Lancaster funding is a digital project grant.

Public Health England funding was a grant toward the Community Choir project.

BBC Children in Need represents funds awarded to our Youth Theatre. This enabled us to run workshops, masterclasses, our summer show on the main stage and residential trip for per mentors.

Arts Admin - Grant for Cured by Laurence Clark

The Alchemy Foundation - Grant to provide opportunities for work to disadvantaged young people

Other funding in 2020 was funding was received from the estate of Professor E. Rex Makin for the sum of £2,500 to support a student through training at Rare Studios.

ROYAL COURT LIVERPOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

17 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at 1
April 2018
£
Tangible fixed asset fund
7,489,386
7,489,386		 Transfers

£
(124,615)
(124,615)		 Balance at
1 April 2020
£
7,364,771
7,364,771		 Movement in funds
Incoming
resources
Resources
expended
31
£
£
38,337
(193,381)
38,337
(193,381)		 Balance at
March 2021
£
7,209,727
7,209,727

In order to accurately show the reserves tied up in fixed assets held by the charity, a designated tangible fixed asset fund has been created. The fun d reflects the net book value of the tangible fixed assets used operationally by the charity.

18 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
March 2021 are
represented by:
Tangible assets
7,209,727
-
Current assets/
(liabilities)
566,320
24,505
7,776,047
24,505		 TotalUnrestricted
funds
2021
2020
£
£
7,209,727
7,364,771
590,825
344,801
7,800,552
7,709,572		 Restricted
funds
2020
£
-
-
-		 Total
2020
£
7,364,771
344,801
7,709,572

19 Operating lease commitments

At the reporting end date the Trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 2021
£
32,000
128,000
3,688,000
3,848,000		 2020
£
32,000
128,000
3,720,000
3,880,000

ROYAL COURT LIVERPOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

20 Financial commitments, guarantees and contingent liabilities

The Trust may be required to repay funding if it fails to comply with conditions laid down by funding providers. Liverpool City Council and The Arts Council of England have a legal charge s over the goodwill, property and all other assets of the charity.

21 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 50,000 50,000

During the period the company incurred expenditure and recharges of £213,921 (2020: £93,807) with Royal Court Limited and received income of £30,000 (2020: £125,817).

During the period the company received income of £nil (2020: £69,095) from Liverpool Food Company Limited and incurred recharges of £322,265 (2020: £nil).

During the period ticket levy income of £nil (2020: £133,730) and box office income of £nil (2020:£4,518) was collected on behalf of the company by Simply Tickets Limited and £139,846 (2020: £nil) of costs were recharged to the company by Simply Tickets Limited.

At the period end the company owed £25,392 (2020: (£104,552) ) to Royal Court Limited.

At the period end the company owed £253,170 to Liverpool Food Company Limited (2020: was owed £69,095)

At the period end the company was owed £78,475 (2020: £118,322) by Simply Tickets Limited.

Mr K J Fearon is Chief Executive of Royal Court Limited (not a director), a director of Liverpool Food Company Limited, and Simply Tickets Limited and the husband of G Miller, Chief Executive of the Royal Court Liverpool Trust Limited.

22 Cash generated from operations 2021 2020
£ £
Surplus for the year 90,980 1,074
Adjustments for:
Investment income recognised in statement of financial activities (66) (213)
Depreciation and impairment of tangible fixed assets 193,381 189,920
Movements in working capital:
(Increase)/decrease in debtors (238,229) 160,077
Increase/(decrease) in creditors 663,511 (363,537)
Cash generated from/(absorbed by) operations 709,577 (12,679)

ROYAL COURT LIVERPOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

23 Analysis of changes in net funds

The Trust had no debt during the year.