OpenCharities

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

2022-03-28-accounts

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

(A company limited by guarantee)

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 March 2022

Company Registered number: 07340192 Charity Registered number: 1139034

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

(A company limited by guarantee)

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 March 2022

CONTENTS Pages
Report of the Trustees (incorporating the Strategic Report) 3-13
Auditors’ report 14-16
Group statement of financial activities 17
Group balance sheet 18
Company balance sheet 19
Group cash flow statement 20
Notes to the financial statements 21-44

1

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE PERIOD ENDED 27 March 2022

The Trustees present their report and consolidated financial statements for the period to 27 March 2022.

Company Registered number: 07340192

Charity Registered number: 1139034

Directors/Trustees/Members:

Mr S Antrobus - Appointed 1 January 2022 Ms G Arnott - Resigned 30 March 2022 Mr S R Edmonds - Resigned 31 December 2021 Ms B Lally Mr J A McPhedran - Appointed 19 July 2022 Mr G Tait Company Secretary: Ms J R Gordon Key Management Personnel:

Auditors:

Mr C Evans – Marketing, Sales & Development Director - Appointed 9 June 2022 Ms A Facey – HR Director Ms J Gordon – CEO Mr S Watkins - Head of Finance Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

Bankers: Barclays Bank plc, 267 Wellingborough Road, Northampton NN1 4EN Solicitors: Shoosmiths, The Lakes, Northampton, NN4 7SH Business and Registered office: 19-21 Guildhall Road, Northampton NN1 1DP

2

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

(A company limited by guarantee)

Trustees Report

FOR THE PERIOD ENDED 27 March 2022

Objectives and activities

The Trust’s objectives are:

b) To promote the efficiency and effectiveness of registered charities and charitable organisations, including community groups, through the provision of services and support relating to the strategy, management and general administration of those organisations, with particular reference to the venues known as Royal & Derngate and The Core at Corby Cube.

The Trustees agreed two principle aims for 2021/22

When considering the extent to which Northamptonshire Arts Management Trust (NAMT) has achieved its aims this year, it is important to also consider to how well the aims of both Royal & Derngate and The Core at Corby Cube have been achieved, as a result of the partnership with NAMT. The financial details contained within this Report of the Trustees report are the consolidated results for NAMT, Royal & Derngate and The Core at Corby Cube, and their associated companies.

The Northampton Theatres Trust’s Business Plan was refreshed in Spring 2022 for their Arts Council England (ACE) National Portfolio Organisation (NPO) application. The focus of the next three years:

The Corby Cube Theatre Trust’s Business Plan was refreshed in Spring 2022 for their Arts Council England (ACE) National Portfolio Organisation (NPO) application. The focus of the next three years:

3

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST (A company limited by guarantee)

Trustees Report (continued)

FOR THE PERIOD ENDED 27 March 2022

To deliver these aims, which further our charity’s purposes for the public benefit, NAMT undertakes activity in the following areas:

By receiving services provided by NAMT, Royal & Derngate is able (in a non-pandemic year) to undertake activity in the following areas:

By receiving services provided by NAMT, The Core at Corby Cube is able to undertake activity (in a non pandemic year) in the following areas:

The Trustees and senior management team establish, monitor and review key performance indicators for all aspects of the charity’s activities. In the 2021/22 these were revised in conjunction with stakeholders to better represent what was possible in a year of building back towards its usual operation by the pandemic. This kept the ethos of all the deliverables above - ensuring a focus on variety and breadth of programme, creative learning and artist support

4

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST (A company limited by guarantee)

Trustees Report (continued)

FOR THE PERIOD ENDED 27 March 2022

activity and leadership within the sector. Progress is communicated at each Board meeting through written and verbal reports.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s Public Benefit Guidance when reviewing the charitable company’s aims and objectives and in planning future activities for the year.

The organisation employed an average of 43 individuals in the year to provide shared administration, financial services, human resources, company secretarial, programming, marketing, sales and IT services to the group of companies.

Covid-19 Pandemic & Cost of Living Crisis

On 16th March 2020, both venues closed with immediate effect following advice from the Government and with the safety, health and wellbeing of our staff, artists and patrons in mind. We began immediately working hard to ensure our future viability, creating Covid Recovery Plans bespoke to both venues, supported by Board steering groups. We enhanced communication channels across NAMT to monitor newly created risk registers.

All entities made use of the Coronavirus Job Retention Scheme which has been a lifeline for the majority of our staff, however, organisational restructuring took place within NTT and NAMT to reduce staffing costs in preparation for reanimating the venues.

All non-essential spend was cut and recruitment frozen where possible. Working with a skeleton team during lockdown enabled efficiencies to be sought which benefited the organisation as we reopened the buildings and welcomed audiences back to our venues when restrictions were eased in May 2021.

The gradual reopening of the venues has enabled the teams to adjust to new working practices and test the efficiencies identified.

Looking ahead, we have a realistic set of audience and financial targets, in light of the current climate, particularly for 23/24. While budgets continue to evolve, and although conditions will remain challenging for some time (especially in light of increasing energy costs and a national cost of living crisis), the respective Boards of Trustees across all entities are happy that the organisation has enough in reserves to continue trading as a going concern for the next twelve months.

Achievements and performance

During 2021-22 NAMT continued to deliver a cost-effective service to both NTT and CCTT, ensuring that appropriate staffing was in place to achieve this, despite the challenges that continued to be posed by the Covid-19 pandemic.

NTT reported that it:

5

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

(A company limited by guarantee)

Trustees Report (continued)

FOR THE PERIOD ENDED 27 March 2022

CCTT reported that it:

Members of the NAMT senior management team sat on the Board of the Northamptonshire Community Foundation, Northampton Forward and chaired the evolving Cultural Compact, ensuring that the Creative and Cultural Industries were represented at a senior level in discussions relating to the development of the towns and county.

NAMT provided human resource and staff development services for an average of 184 team members this year (139 employed by NTT, 12 employed by CCTT and 32 employed directly by NAMT).

6

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST (A company limited by guarantee)

Trustees Report (continued)

FOR THE PERIOD ENDED 27 March 2022

Future Plans

In 2022/23 we will support Royal & Derngate and The Core at Corby Cube to make the necessary and immediate adjustments in accordance with their Covid-19 recovery strategies, and respond to the impact of the cost of living crisis. We supported both organisation’s successful NPO applications for funding for three years from April 2023.

Other activity that will benefit most clearly from NAMT’s support will include Royal & Derngate’s plans to:

The Core will also continue to benefit from the expertise provided by NAMT as it devises plans to:

The Trustees and Strategic Management Team are developing relationships with key personnel within the new North Northamptonshire Council and West Northamptonshire Council as well as ensuring the activity of the Trust aligns with their evolving strategic direction as Unitary Authorities.

Financial Review

NAMT’s key financial objective was to ensure that the Trust had the necessary resources to deliver the charitable objectives. NAMT operates as a cost neutral company, passing on all costs incurred to either the charity that operates Royal & Derngate (Northampton Theatres Trust/NTT) or the charity that operates The Core at Corby Cube (Corby Cube Theatre Trust/CCTT), as agreed with the Boards of both entities.

For the financial year ended 27 March 2022 the consolidated operating surplus was £579,432. This result has been made possible thanks to the grant support from DCMS’ Culture Recovery Fund to both NTT and CCTT, supporting the organisations prior to reopening after the Covid-19 pandemic and additionally providing reserve reflation in support of future trading. This compares to 2021/22 when we reported an operating surplus of £870,162.

For the financial year ended 27 March 2022 NTT reported an operating surplus of £502,506 before actuarial gains on pension schemes of £970,000. This result has been made possible thanks to the grant support from DCMS’ Culture Recovery Fund Round Three, supporting the organisation’s reopening after the Covid-19 pandemic. This

7

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST (A company limited by guarantee)

Trustees Report (continued)

FOR THE PERIOD ENDED 27 March 2022

is in contrast to the financial year ended 28 March 2021 when we reported an operating surplus of £837,348 before actuarial losses of £597,000.

For the financial year ending 27 March 2022 CCTT reported an operating surplus of £70k, This result has been made possible thanks to the grant support from DCMS’ Culture Recovery Fund supporting the organisation through the Covid-19 pandemic. This compares to the financial year ended 27 March 2021 when we reported an operating deficit of £39,951.

For the financial year ended 27 March 2022, NTEL reported an operating loss of £16,935. This is in contrast to the financial year ended 28 March 2021 when we reported an operating loss of £7,078. A licensing agreement is in place with an external operator who was unable to open the bar during lockdown, leading to the operating loss. Since being able to reopen the bar in June 2021, monthly profits have been generated and the carried forward loss was eradicated in October 2021. All qualifying profit generated at year end (£9,795) was company gift aided to NTT through the deed of covenant in place.

For the financial year ended 27 March 2022, there were three productions made through DEL (2021/22 - nil) with expected Theatre Tax Relief being transferred back to NTT. However, an operating loss of £30 is reported (2020/21 - £30 loss).

The overall surplus on all funds at the year-end amounted to £980,290 (compared to £268,465 surplus in 2020/21).

The overall accumulated fund balance at the year-end amounted to £4,303,660 (compared to £3,323,370 in 2020/21). Of this, restricted funds totalled £1,740 (compared to £32,940 in 2019/20). Details of the restricted funds are listed in Note 17 of the accounts.

Based on our cash-flow projections, the charitable company and group has sufficient liquidity to continue carrying out its charitable activities for at least twelve months and the Trustees are therefore of the opinion that the financial statements should be prepared on a going concern basis. The review of our financial position, reserves levels and future plans gives Trustees confidence the charity remains a going concern for the foreseeable future.

NAMT Trustees recognise the need for NTT and CCTT to continue to build reserves from 2022/23 however are aware of the challenges that the current energy and cost of living crises are creating. They will continue to ensure that management charges to NTT and CCTT continue to be of excellent value.

NTT’s refreshed reserves policy aims to build a minimum reserves level of £520k which approximately equals two months unrestricted, non-trading closure. The Charity calculates these available funds by taking into account its unrestricted, undesignated funds and adds back its pension liability. This means that at 28 March 2022, the Charity has available funds of £255,633, sufficient to cover one month’s non-trading expenditure. Trustees are aware that they do not have sufficient available funds to meet their reserves policy and are budgeting carefully in future years to meet the reserves target.

CCTT’s reserves policy aimed to build a reserves target of £40,000 to over one month of essential operating costs. The balance of general funds at 27 March 2022 was £86,190 (2019/20 £16,341). Following the impact of Covid-19 and the impact of the cost of living crisis, a revised budget for business plan, scrutinised by the Trustees will deliver a small deficit in the first year (2023/24), returning to operating surpluses at the end of the period.

Fundraising Performance and Approach

The Trusts seek donations and grants from a variety of sources but in the year to 28 March 2022 they did not actively fundraise from the general public. They do not employ any third party fundraisers and do seek donations

8

from audience members and ticket buyers. In the final two weeks of the financial year, when all performances were cancelled or postponed, they were successful in converting a portion of bookings into donations rather than ticket refunds and sought to reclaim Gift Aid on as many of these donations as possible. Individual giving became an increasingly important part of the fundraising mix as they emerged from the Covid-19 crisis and new campaigns were launched when the venues reopened.

All fundraising is conducted in line with the Fundraising Code of Practice set by the Fundraising Regulator and with due regard for current regulations under GDPR. No complaints have been received in respect of fundraising activity and we protect vulnerable donors through the training and supervision we give to all staff who solicit or receive donations.

Their Fundraising Strategies are to continue to achieve a mixed funding model, to increase income from Trusts & Foundations, particularly to support capital improvements, and to further reduce dependence on Arts Council and Local Authority subsidy for theatre production, community engagement and creative learning delivery. They recognise that the impact of Covid-19 on the whole of the voluntary sector will increase competition for resources at the same time as the impact on investments will reduce the amount of money available to Trusts and Foundations to distribute to good causes.

Risk Management

The Trusts both have formal risk management processes through which the senior management identifies the major risks to which the organisation may be exposed and has ranked these by likelihood and impact, culminating in risk registers which are updated on a regular basis. All significant risks, together with current mitigation actions, are reviewed regularly throughout the year by the Trustees. The Trustees are satisfied that systems have been developed and are in place to mitigate identified risks to an acceptable level. In March 22, a new Risk Register for NAMT was created to further support the Trustees in their reviewing responsibilities.

The Covid-19 pandemic saw a significant change in emphasis in Risk Management. Prior to that, the main emphasis surrounded the risks implicit in the commercial recovery plans which was aimed at returning the organisations to surplus and looking to a longer term plan to rebuild both organisation’s reserves. The emergence of Covid-19 necessitated a new emphasis, and now the impact of the cost of living crisis on our audience behaviours and impact on our ability to earn our own income also feature centrally to all registers.

The principal risks and uncertainties identified by the NAMT trustees are as follows:

Risk identified Action taken to mitigate the risk
External economic factors adversely affecting
organisations
revenue
streams
(inc
inflation/rising energy prices/general economic
slowdown)		 Remain cautious and prudent in budgeting to
reflect uncertainty. Realistic target setting for
income areas with sensitivities built in. Finance
Committees support both organisations with risk
management. .

9

(A company limited by guarantee)

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

Trustees Report (continued)

FOR THE PERIOD ENDED 27 March 2022

Sales targets, in all areas of business are
not achieved
- Ticket targets not met
(reluctance of audience to return due to
perceived risk)
- Programming availability
affecting deals/income generation
options
-
Failure to secure and develop funding
pipeline		 Need to monitor audience attendance &
national benchmarking, maintain Covid
Safety where needed and respond to price
resistance and other emerging trends.
Ensure expenditure budgets are set
accordingly.
Maintain relationships with producers. Ensure
models as flexible as possible to exploit back-
ups (including local/digital). Alert still high
because of unknowns/unpredictable landscape.
Risk of Christmas plans to both orgs. Aware of
pressure on stakeholders funding. Maintain
investment in Trusts and Foundations resource
Sustainability of key funding sources linked to
cost of living pressures and Unitary Authority
changes.		 Advocacy activity; meeting with WNC/NNC
stakeholders; communicating impact; securing
fixed-term agreements; town centre advocacy
work to ensure vital placement. Confirmation of
funding levels from ACE and WNC/NNC (to 22/
23)
Failure to recruit and retain key staff Recruitment
difficult
across
NAMT.
Acknowledge impact of pandemic on MH of
teams. Benchmark pay and conditions with Big
13 partners and Future Arts Centres. Investing
in recruitment and training budgets. Annual
reviews consider team member ambitions,
identify any succession planning issues. New
senior management team members expected in
NTT. HR expertise within management team
and on Board, with support from legal advisors.
Six-month and annual reviews carried out.

10

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST (A company limited by guarantee)

Trustees Report (continued)

FOR THE PERIOD ENDED 27 March 2022

Conflict or disagreement within the group of
companies		 Monitored closely through Covid period. Reps
from both NTT and CCTT sit on NAMT Board.
NTT and CCTT involved in NAMT budget
process. Possible further mitigation could
include appointment of Independent Chair –
discussion for 22/23

Structure, governance and management

Northamptonshire Arts Management Trust (“The Trust”) is registered with the Charity Commission and is constituted as a company limited by guarantee, governed by Memorandum and Articles of Association. The Trustees confirm that the financial statements comply with statutory requirements and with the Memorandum and Articles of Association.

We have a very clear process in place to recruit independent Trustees when necessary which entails the Board and senior management team completing a skills audit to establish areas of expertise that are unfilled and then advertising locally and regionally for candidates to apply for the advertised vacancies. For each vacancy The Trust develops a detailed role description and person specification, to which all candidates are invited to respond. Their appointments ratified by the full board as per our Memorandum and Articles of Association.

Key decisions within the charitable company are made at Strategic Management Team level then cascaded across

the charitable company.

The Trust has robust policies and procedures regarding safeguarding, whistle-blowing, harassment, bullying and child protection in place. These are devised by the management team through consultation with industry bodies including Equity and UK Theatre.

Oversight of the charitable company is by a Board of Directors who also act as Trustees for the charitable activities of Northamptonshire Arts Management Trust.

No directors had, during or at the end of the year, a material interest in any contract, which was significant in relation to the charitable company’s business.

The minimum number of directors is four and the maximum six.

When first appointed, trustees are offered an induction programme that includes the opportunity to meet with members of the Senior Management Team. They are invited to a series of events at both sites and are provided with key documentation at an induction meeting with the Chair and CEO.

11

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST (A company limited by guarantee)

Trustees Report (continued)

FOR THE PERIOD ENDED 27 March 2022

The trustees consider the board of trustees and the senior management team to comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Charity on a day to day basis. All trustees give of their time freely and no director received remuneration in the year. Details of directors’ expenses and related party transactions are disclosed in note 8 to the accounts.

The pay of the Strategic Management Team and all staff is reviewed annually. This year it was subject to further review as a condition of Cultural Recovery Funding requirements. As part of the annual budget process the Strategic Management Team make a recommendation to the Board with regards pay and remuneration for the charity’s key personnel.

The figure is calculated once comparisons with other regional theatres were sought, once affordability was assessed and following the conclusion of the annual appraisal (and six month follow-up) process. In view of the nature of the charity, the Trustees benchmark against pay levels in other charities. The remuneration bench-mark is at the lower end of the range paid for similar roles in similar charities and sizes.

As set out above, the parent charity Northamptonshire Arts Management Trust (NAMT) provides a number of shared services to Northampton Theatres Trust, trading as Royal & Derngate and Corby Cube Theatre Trust, trading as The Core at Corby Cube.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The Directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that year. In preparing these financial statements, the Directors are required to:

The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company, and the group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

12

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST (A company limited by guarantee)

Trustees Report (continued)

FOR THE PERIOD ENDED 27 March 2022

In so far as the Directors are aware:

In approving this report the trustees also approve the Strategic Report in their capacity as company directors.

On behalf of the board

~~……………………………~~ Simon Antrobus (Dec 9, 2022, 5:15pm) Mr S Antrobus Trustee Date: 9 December 2022

13

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

FOR THE PERIOD ENDED 27 March 2022

Opinion

We have audited the financial statements of Northamptonshire Arts Management Trust for the period ended 27 March 2022 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 group and parent charitable company’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 trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees. 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

14

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST (continued)

FOR THE PERIOD ENDED 27 March 2022

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

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 for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on pages 12 the trustees (who are also the directors of the charitable company for the purposes 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 group’s and the parent charitable company’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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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:

Based on our understanding of the group and charitable company and the environment in which they operates, we identified that the principal risks of non-compliance with laws and regulations related to revenue recognition and the completeness of expenditure, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, payroll tax and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

15

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST (continued)

FOR THE PERIOD ENDED 27 March 2022

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: 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 Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Askew (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditors London EC4R 1AG Date: 16 December 2022

16

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

GROUP STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account)

FOR THE PERIOD ENDED 27 March 2022

Unrestricted Designated Restricted Total Total
Funds - Funds Funds 2022 2021
General
Note £ £ £ £ £
INCOME FROM
Grants and donations 3 2,895,184 52,175 675,406 3,622,765 6,039,242
Other trading activities 4 711,900 - - 711,900 4,157
Charitable activities 5 5,791,847 - - 5,791,847 94,849
Other income 332,126 - - 332,126 62,289
--------------------- --------------------- --------------------- --------------------- ---------------------
Total income 9,731,057 52,175 675,406 10,458,638 6,200,537
--------------------- --------------------- --------------------- --------------------- ---------------------
EXPENDITURE ON
Raising funds 6 888,626 4,378 - 893,004 459,381
Charitable activities
- Presented work 6 5,555,212 26,746 - 5,581,958 1,721,492
- Produced work 6 1,927,769 7,051 404,689 2,339,509 1,120,638
- Creative projects 6 298,407 2,610 99,795 400,812 630,019
- Cinema 6 468,951 2,104 14,280 485,335 664,601
- Redevelopment 6 12,600 735,070 - 747,670 738,911
Other – finance costs 6, 19 60 - - 60 30
--------------------- --------------------- --------------------- --------------------- ---------------------
Total expenditure 9,151,625 777,959 518,764 10,448,348 5,335,072
--------------------- --------------------- --------------------- --------------------- ---------------------
Net 579,432 (725,784) 156,642 10,290 865,465
(expenditure)/income
Actuarial gains / (losses) 18 970,000 - - 970,000 (597,000)
Transfers between funds 17 (1,472,506) 1,660,348 (187,842) - -
--------------------- --------------------- --------------------- --------------------- ---------------------
Net movement in funds 76,926 934,564 (31,200) 980,290 268,465
TOTAL FUNDS AT 1 17 9,208 3,281,222 32,940 3,323,370 3,054,905
APRIL 2021
======== ======== ======== ======== ========
TOTAL FUNDS AT 27 17
March 2022 86,134 4,215,786 1,740 4,303,660 3,323,370
======== ======== ======== ======== ========

The group statement of financial activities has been prepared on the basis that all operations are continuing operations. The notes on pages 21 to 44 form part of these financial statements. A full comparative Statement of Financial Activities is included at note 23.

17

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

Company Registered Number: 07340192 Charity Registered Number: 1139034

GROUP BALANCE SHEET

AT 27 March 2022

Total Total
2022 2021
Note £ £
FIXED ASSETS
Tangible assets 10 5,769,032 6,293,994
----------------- -----------------
5,769,032 6,293,994
CURRENT ASSETS
Stocks 12 42,903 28,675
Debtors 13 846,107 402,308
Cash at bank and in hand 3,571,612 2,650,889
----------------- -----------------
4,460,622 3,081,872
CREDITORS: Amounts falling due within one year 14 (4,777,994) (3,934,497)
----------------- -----------------
NET CURRENT ASSETS/(LIABILITIES) (317,372) (852,625)
Pension liability 18 (1,148,000) (2,118,000)
----------------- -----------------
NET ASSETS 17 4,303,600 3,323,370
======== ========
FUNDS OF THE CHARITY
Unrestricted funds - General 17 86,134 9,208
Designated funds 17 4,215,786 3,281,222
Restricted funds 17 1,740 32,940
----------------- -----------------
TOTAL FUNDS 17 4,303,660 3,323,370
======== ========

The surplus/deficit of the parent charity was £nil (2021: £nil).

The financial statements were approved by the board of directors on 9 December 2022 and signed on its behalf by:

Mr S Antrobus Simon Antrobus (Dec 9, 2022, 5:15pm) Trustee

The notes on pages 21 to 44 form part of these financial statements.

18

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUSTCompany Registered number: 07340192

Charity Registered number: 1139034

COMPANY BALANCE SHEET

AT 27 March 2022

Total Total
2022 2021
Note £ £
FIXED ASSETS
Tangible assets 11 27,202 31,615
----------------- -----------------
27,202 31,615
CURRENT ASSETS
Debtors 13 71,805 123,332
Cash at bank and in hand 31,178 93,801
----------------- -----------------
102,983 217,133
CREDITORS: Amounts falling due within one year 14 (130,185) (248,748)
----------------- -----------------
NET CURRENT ASSETS/(LIABILITIES) (27,202) (31,615)
----------------- -----------------
NET ASSETS 17 - -
======== ========
FUNDS OF THE CHARITY
Unrestricted funds - General 18 - -
----------------- -----------------
TOTAL FUNDS 18 - -
======== ========

The financial statements were approved by the board of directors on 09 Dec 2022 by:

and signed on its behalf

Simon Antrobus (Dec 9, 2022, 5:15pm) Mr S Antrobus Trustee

The notes on pages 21 to 44 form part of these financial statements.

19

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

GROUP CASH FLOW STATEMENT

FOR THE PERIOD ENDED 27 March 2022

2022 2021
Note £ £
NET CASH PROVIDED BY OPERATING ACTIVITIES 21 1,315,575 1,744,429
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (394,852) (120,379)
----------------- -----------------
CHANGE IN CASH AND CASH EQUIVALENTS IN THE 920,723 1,624,050
REPORTING PERIOD
======== ========
Cash and cash equivalents at the beginning of the period 2,650,889 1,026,839
----------------- -----------------
Cash and cash equivalents at the end of the period 3,571,612 2,650,889
======== ========
Cash and cash equivalents consists of:
Cash at bank and in hand 3,571,612 2,650,889
----------------- -----------------
Cash and cash equivalents 3,571,612 2,650,889
======== ========
ANALYSIS OF NET DEBT
29 March 2021 Cash flows 27 March 2022
£ £ £
Cash and cash equivalents 2,650,889 920,723 3,571,612
---------------------- ---------------------- ----------------------
Net debt 2,650,889 920,723 3,571,612
========== ========== ==========

The notes on pages 21 to 44 form part of these financial statements.

20

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 March 2022

1. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2020) - (Charities SORP (FRS 102) – Second Edition, effective 1 January 2020), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Northamptonshire Arts Management Trust 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 note(s).

In line with other comparable theatres and arts charities, the accounts have been prepared on a 52 week reporting basis, with comparatives on a 52 week basis.

Preparation of accounts on a going concern basis

The review of the group’s financial position, reserves levels, continued support from our principal supporters and future plans gives Trustees confidence the group of charities remains a going concern for the foreseeable future. Budgets and cash flow forecasts have been prepared and reviewed for 2022-23 and 2023-24 to support this opinion.

Trustees recognise the risk associated with the current cost of living crisis across the industry. They aim to mitigate this risk by proactively managing the resources available, including the setting of on-sale dates, scheduling of shows and utilising any funding available to the organisation including government support schemes. The trustees recognise the changing landscape and regular reviews are carried out by the group of charities ensure the risks are adequately mitigated.

Critical accounting judgements and estimates

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the charities accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The items in the financial statements where significant judgements and estimates have been made include:

Group financial statements

The financial statements consolidate the results of the charity and its subsidiaries on a line-by-line basis. Details of the charity’s subsidiaries are set out in note 9. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

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 charity and which have not been designated for other purposes.

21

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 March 2022

1. ACCOUNTING POLICIES (continued)

Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are funds that are to be used in accordance with specific restrictions imposed by donors that have been raised by the charity for particular purposes.

The nature and purpose of each fund is described in note 17.

Income

Income primarily represents ticket sales and related fees for performances conducted in the period. Gift vouchers and tickets sold in advance are included in creditors as deferred income. Donations and legacies are included where there is entitlement, receipt is probable and the amount can be measured with sufficient reliability. Amounts due to the group in respect of the Theatre Tax Credit is included in the financial period to which the claim relates.

Grants

Grants are recognised where there is entitlement, receipt is probable and the amount can be measured with sufficient reliability. Such income is only deferred when:

Expenditure

Costs of raising funds are those costs incurred in trading activities that raise funds and the raising of sponsorship and donations within the Trust.

Charitable activities include expenditure associated with the staging of shows and cinema screenings and include both the direct costs and support costs relating to these activities. Charitable activities are reported across the following areas:

Redevelopment relates to work undertaken to redevelop the Royal & Derngate and Core at Corby Cube sites funded from capital grants and donations. Costs charged against this area relate entirely to depreciation.

Irrecoverable VAT is included within the items of expense to which it relates. All costs related to presented and produced work are account for when the production ends.

Lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against the Statement of Financial Activities on a straight line basis over the period of the lease. A significant part of the Royal & Derngate theatre occupied by the Northampton Theatre Trust Limited is provided on a rent free basis as part of West Northamptonshire Council's overall support to the Trust. The premises occupied by the Corby Cube Theatre Trust are provided by North Northamptonshire Council on the basis of a peppercorn rent as part of the Council’s support to the Trust.

22

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

1. ACCOUNTING POLICIES (continued)

Rentals payable in respect of hire purchase agreements are apportioned between the finance element, which is charged to the Statement of Financial Activities on a straight line basis, and the capital element which reduced the outstanding obligation for future instalments. Where substantially all of the risks and rewards of leases are transferred to the charity, the lease is treated as a finance lease. The net book value of minimum lease payments is capitalised, with an equal and opposite creditor, and released over the term of the lease.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost, being purchase price, less accumulated depreciation. The charity’s policy is that assets are capitalised either if they are an individual asset with an initial cost greater than £1,000 or a collection of assets costing more than £250 each which collectively form a single asset.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Long leasehold refurbishment - 5 to 20 years straight line
Short leasehold refurbishment - 5 to 10 years straight line
Motor vehicles - 4 years straight line
Technical equipment - 3 to 20 years straight line
Office equipment - 3 to 5 years straight line
Catering equipment - 3 to 5 years straight line

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value.

Stocks

Stock is valued at the lower of cost, being purchase price, and net realisable value, after making allowance due for obsolete and slow moving items.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash 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.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

23

N ORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

1. ACCOUNTING POLICIES (continued)

Pension costs

The group operates defined contribution pension schemes for employees. The assets of the scheme are held separately from those of group companies. The annual contributions payable are charged to the Statement of Financial Activities.

In addition, the group participates in a local government pension scheme. This closed to new members on 30 September 2008. The net liability of the scheme, as calculated by the actuary, is shown within the balance sheet. Actuarial gains and losses are reported in the Statement of Financial Activities, along with the current service cost and costs from settlements and curtailments. Further details are provided in note 18.

2. STATUS

Northamptonshire Arts Management Trust is a company limited by guarantee, registered in England and Wales at 19-21 Guildhall Road, Northampton NN1 1DP, and not having share capital.

3.

4.

GRANTS AND DONATIONS 2022 2021
£ £
Grants
Arts Council England 1,110,417 1,005,648
Arts Council England – capital - 2,940
Arts Council England – Culture Recovery Fund 914,810 1,971,323
Arts Council England – Emergency Response Fund 135,900 438,017
Arts Council England – Ambition for Excellence 404,689 -
North Northamptonshire Council 297,500 297,500
Covid Business Support Grants 86,500 121,964
West Northamptonshire Council 331,776 731,776
CJRS income 21,337 1,288,022
Other grants 188,005 115,975
Donations 131,831 66,077
------------------- -------------------
3,622,765 6,039,242
========= =========
INCOME FROM OTHER TRADING ACTIVITIES 2022 2021
£ £
Café income 20,163 69
Bar income 487,216 1,918
Other trading activities (confectionary, programmes) 204,521 2,170
---------------------- ----------------------
711,900 4,157
========== ==========

24

N ORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

5. INCOME FROM CHARITABLE ACTIVITIES 2022 2021
£ £
Ticket sales and auditorium fees 4,126,688 27,799
Theatre Tax Relief 597,835 -
Cinema income 277,086 48,909
Touring and Co-Production Income 71,591 (2,495)
Hire of facilities 125,286 (250)
External Recharges 458,618 2,834
Memberships and sponsorships 134,743 18,052
---------------------- ----------------------
5,791,847 94,849
========== ==========

6. ALLOCATION OF EXPENDITURE

Direct Overheads: Overheads: Support
Costs Staff Other Costs 2022
Costs costs
£ £ £ £ £
Cost of raising funds:
- Development 221 9,162 2,146 8,788 20,317
- Café & bar 226,467 291,406 40,937 313,877 872,687
Charitable activities:
- Presented work 2,969,311 583,997 40,169 1,988,481 5,581,958
- Produced work 1,412,787 343,977 35,085 547,660 2,339,509
- Creative projects 107,540 120,207 - 173,065 400,812
- Cinema 132,846 50,402 138,771 163,316 485,335
- Redevelopment 12,600 - 735,070 - 747,670
Other – finance costs 60 - - - 60
-------------------- --------------------- ----------------- --------------------- ------------------------
4,861,832 1,399,151 992,178 3,195,187 10,448,348
========== ========= ======== ========== ===========

25

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

6. ALLOCATION OF EXPENDITURE (continued)

PRIOR YEAR COMPARATIVE

Direct Overheads: Overheads: Support
Costs Staff Other Costs 2021
Costs costs
£ £ £ £ £
Cost of raising funds:
- Development 208 1,015 1,739 6,769 9,731
- Café & bar 47,558 118,963 7,641 275,488 449,650
Charitable activities:
- Presented work (3,327) 584,084 18,107 1,122,631 1,721,495
- Produced work 44,266 367,891 3,026 705,454 1,120,637
- Creative projects 73,615 125,377 - 431,028 630,020
- Cinema 39,102 89,707 117,418 418,374 664,601
- Redevelopment - - 738,911 - 738,911
Other – finance costs - - 30 - 30
-------------------- --------------------- ----------------- --------------------- ------------------------
201,422 1,287,037 86,872 2,959,744 5,335,075
========== ========= ======== ========== ===========
2022 2021
£ £
Support costs consist of the following:
Marketing 267,079 61,548
Operations 221,186 256,749
Support services 2,059,385 2,142,898
Premises costs (cleaning, maintenance, utilities) 647,537 498,549
-------------------- ---------------------
3,195,187 2,959,744
========== ==========

Operations include front of house, box office and IT. Support service include management and administration, finance and human resources. Support costs have been allocated on the basis of estimated usage. Included within the costs above are governance costs of £90,641 (2021: £116,483)

7. NET MOVEMENT IN FUNDS 2022 2021
£ £
Auditors’ remuneration 26,750 21,250
Auditors’ non-audit fees
-
Accounts preparation		 4,050 4,000
-
CRF certification		 3,150 3,250
Depreciation of fixed assets 919,814 970,634
Operating lease rentals 159,808 169,276
(Profit)/Loss on disposal of fixed assets - (13,690)
======= =======

26

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

8. STAFF COSTS 2022 2021
£ £
Wages and salaries 2,654,783 2,554,356
Social security costs 193,770 180,324
Pension costs
-
Contribution to defined benefit pension scheme		 99,822 201,914
-
Contribution to defined contribution pension scheme		 52,072 50,008
--------------------- ---------------------
3,000,447 2,986,602
========== ==========

The average number of employees (including casual and part time staff) during the period was as follows:

2022 2021
Northamptonshire Arts Management Trust – management and 32 43
administration
Northampton Theatres Trust 139 140
Corby Cube Theatre Trust 12 17
-------------- --------------
184 200
======= =======

No remuneration was paid during the period to any member of the Board of Directors (2021: £nil).

During the period the Trust did not reimburse any expenses of the Board of Directors (2021: £nil).

The number of employees whose emoluments as defined for taxation purposes amounted to over £60,000 in the period was as follows:

2022 2021
Number Number
£60,000 – £70,000 1 1
£70,001 - £80,000 - -
£80,001 - £90,000 1 1
======= ========

The aggregate remuneration paid to key management personnel in the period ended 27 March 2022 was £468,397 (2021: £580,047).

27

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

9. SUBSIDIARIES

At 27 March 2022, Northamptonshire Arts Management Trust had the following subsidiary undertakings:

Class of Directly Indirectly Company Nature of business
share capital number
Corby Cube Theatre N/A – Limited 100% - 07210297 Operation of theatre
Trust by guarantee
The Northampton N/A – Limited 100% - 03640915 Operation of theatres
Theatres Trust Limited by guarantee
Derngate
Enterprises		 Ordinary - 100% 02794900 Production of shows
Limited
- 100% 09755418 Licencing of
Northampton Theatres Ordinary a bar and café
Enterprises Limited

The Northampton Theatres Trust Limited and Corby Cube Theatre Trust are charitable companies limited by guarantee which have been consolidated on the basis that Northamptonshire Arts Management Trust is the sole member and exercises control over the companies.

The income, expenditure, assets and liabilities of each member of the group are summarised as follows:

Corby Cube Theatre Trust 2022 2021
£ £
Grants and donations 629,605 714,788
Other trading income 58,685 -
Income from charitable activities 285,354 1,953
Other income 15,941 7,670
-------------- --------------
Total income 989,585 724,411
Expenditure on raising funds 115,137 62,971
Expenditure on charitable activities 805,081 601,541
-------------- --------------
Total expenditure 920,218 664,512
-------------- --------------
Net income/(expenditure) – unrestricted funds 69,849 16,341
Net income/(expenditure) – designated funds (482) 41,818
Net income/(expenditure) – restricted funds - 1,740
Net income/(expenditure) and net movement in funds 69,367 59,899
======= =======
Fixed assets 64,418 78,663
Current assets 347,913 255,045
Current liabilities (251,619) (242,363)
Reserves 160,712 91,345

28

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

9. SUBSIDIARIES (continued)
2022 2021
The Northampton Theatres Trust Limited £ £
Grants and donations 2,989,889 4,992,171
Other trading income 633,680 4,157
Income from charitable activities 4,898,659 82,896
Other income 202,284 54,619
---------------------- ----------------------
Total income 8,724,512 5,133,843
Expenditure on raising funds 777,650 334,417
Expenditure on charitable activities 8,013,016 3,986,722
----------------------- -----------------------
Total expenditure 8,790,666 4,321,139
---------------------- ----------------------
Net income/(expenditure) – unrestricted funds 502,506 837,348
Net income/(expenditure) – designated funds (725,302) (25,843)
Net income/(expenditure) – restricted funds 156,642 1,200
Total net income/(expenditure) (66,154) 812,704
======== ========
Actuarial gain/(loss) 970,000 (597,000)
------------------ ------------------
Net movement in funds 903,846 215,704
======== ========
Fixed assets 5,677,412 6,183,716
Current assets 4,030,752 2,649,411
Current liabilities (4,417,158) (3,475,967)
Long term liabilities - -
Pension scheme creditor (1,148,000) (2,118,000)
Reserves 4,143,008 3,239,161
Derngate Enterprises Limited 2022 2021
£ £
Turnover 597,835 -
Cost of sales (712,533) -
--------------------- ---------------------
Gross loss (114,698) -
Administrative expenses (30) (30)
--------------------- ---------------------
Operating loss (114,728) (30)
Theatre Tax Relief 114,698 -
--------------------- ---------------------
(Loss) / Profit on ordinary activities after taxation (30) (30)
========== ==========
Current assets 114,758 90
Current liabilities (114,818) 120
Reserves (60) (30)

29

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

9. SUBSIDIARIES (continued)

Northampton Theatres Enterprises Limited 2022 2021
£ £
Turnover 29,535 20,000
Cost of sales - -
-------------- --------------
Gross profit 29,535 20,000
Administrative expenses (22,395) (27,078)
Interest payable and expenses (30) (31)
-------------- --------------
Profit / (Loss) on ordinary activities after taxation 7,109 (7,109)
======= =======
Current assets 52,828 34,594
Current liabilities (52,827) (41,702)
Reserves 1 (7,108)

Transactions between members of the group:

Northamptonshire Arts Management Trust provides management services on behalf of its subsidiary charities. Costs are recharged to the subsidiaries on an agreed basis, generating no profit or loss in the parent charitable company. For the period ended 27 March 2022, costs of £1,008,919 were recharged to The Northampton Theatres Trust (2021: £1,023,047) and £256,263 were recharged to the Corby Cube Theatre Trust (2021: £244,146).

30

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

10. TANGIBLE FIXED ASSETS – Group

Short and Technical,
long catering
leasehold and office Motor
refurbishment equipment vehicles Total
£ £ £ £
Cost
At 30 March 2021 13,516,418 4,103,334 49,066 17,668,817
Additions 35,005 359,847 - 394,852
Disposals - (144,568) - (144,568)
--------------- ------------ -------------- ------------
At 27 March 2022 13,551,423 4,318,612 49,066 17,919,101
--------------- ------------ -------------- ------------
Depreciation
At 30 March 2021 9,042,500 2,283,257 49,066 11,374,823
Provided during the period 640,972 278,842 - 919,814
Disposals (144,568) - (144,568)
--------------- ------------ -------------- ------------
At 27 March 2022 9,683,472 2,368,326 49,066 12,150,069
--------------- ------------ -------------- ------------
Net book value
At 27 March 2022 3,867,951 1,901,081 - 5,769,032
======= ====== ======= ======
At 30 March 2021 4,473,918 1,820,076 - 6,293,994
======= ====== ======= ======

The Corby Cube Theatre Trust occupies the Corby Cube premises on a rolling licence to occupy. However, the trustees anticipate that the lease will be renewed for the foreseeable future. The estimated useful lives of the assets held by the Trust have been determined on this basis. Consequently the trustees consider the carrying value of assets held by Corby Cube Theatre Trust of £64,418 (2021: £78,663) to be appropriate.

31

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

11. TANGIBLE FIXED ASSETS – Company

Technical,
catering and
office
equipment Total
£ £
Cost
At 30 March 2021 87,122 87,122
Additions 4,816 4,816
Disposals (35,450) (35,450)
-------------- --------------
At 27 March 2022 56,488 56,488
-------------- --------------
Depreciation
At 30 March 2021 55,507 55,507
Provided during the period 9,229 9,230
Disposals (35,450) (35,450)
-------------- --------------
At 27 March 2022 29,286 29,287
-------------- --------------
Net book value
At 27 March 2022 27,202 27,201
======= =======
At 30 March 2021 31,615 31,615
======= =======
12. STOCK Group Company
2022 2021 2022 2021
£ £ £ £
Carrying value as at 27 March 2022 42,903 28,675 - -
------------- ------------- -------------- ------------
42,903 28,675 - -
====== ====== ======= ======
13. DEBTORS Group Company
2022 2021 2022 2021
£ £ £ £
Amounts owed by group undertakings - - 51,288 66,274
Trade debtors 106,803 40,322 - -
Other debtors 285,481 25,448 2,037 5,958
Prepayments and accrued income 453,823 336,538 18,480 51,099
------------- ------------- -------------- --------------
846,107 402,308 71,805 123,331
====== ====== ======= =======

32

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

14. CREDITORS: amounts falling due Group Company Company
within one year 2022 2021 2022 2021
£ £ £ £
Amounts owed to group undertakings - - - -
Trade creditors 1,286,549 309,752 24,676 88,690
Other taxes and social security 122,042 126,525 12,920 13,375
Other creditors 624,762 561,429 2,035 2,084
Accruals 666,016 568,737 90,554 144,599
Deferred income 2,078,625 2,368,054 - -
--------------------- --------------------- --------------------- ---------------------
4,777,994 3,934,497 130,185 248,748
========== ========== ========== ==========

Advance ticket income represents income deferred for shows and screenings which had not occurred by the end of the period end of 27 March 2022.

2022 2021
Deferred income movements £ £
Opening balance 2,368,054 2,546,649
Purchases, refunds & receipts 6,058,581 4,587,141
Released & repaid (6,348,010) (4,765,736)
-------------- --------------
Closing balance 2,078,625 2,368,054
======= =======

15. RELATED PARTY TRANSACTIONS

Transactions between group companies are set out in note 9.

Details of key management remuneration is included in note 8.

There were no other related party transactions in the periods ended 27 March 2022 or 28 March 2021.

33

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

16. ANALYSIS OF NET ASSETS
BETWEEN FUNDS - GROUP Unrestricted
Funds - Designated Restricted Total
General Funds Funds 2022
£ £ £ £
Group
Fixed assets 1,166,103 4,602,929 - 5,769,032
Current assets 3,267,677 1,085,245 107,700 4,460,622
Current liabilities (3,199,646) (1,472,388) (105,960) (4,777,994)
Pension liabilities (1,148,000) - (1,148,000)
------------------ --------------------- ------------------- ---------------------
86,134 4,215,786 1,740 4,303,660
======== ========== ======== ==========
PRIOR YEAR COMPARATIVE Unrestricted
Funds - Designated Restricted Total
General Funds Funds 2021
£ £ £ £
Group
Fixed assets 1,203,394 5,090,600 - 6,293,994
Current assets 1,542,130 966,614 573,127 3,081,871
Current liabilities (618,319) (2,775,992) (540,187) (3,934,498)
Pension liabilities (2,118,000) - - (2,118,000)
------------------ --------------------- ------------------- ---------------------
9,205 3,281,222 32,940 3,323,367
======== ========== ======== ==========

34

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

16. ANALYSIS OF NET ASSETS
BETWEEN FUNDS (continued) -
COMPANY Unrestricted
Funds - Designated Restricted Total
General Funds Funds 2022
£ £ £ £
Company
Fixed assets 27,202 - - 27,202
Current assets 102,983 - - 102,983
Current liabilities (130,185) - - (130,185)
------------- ------------ -------------- -------------
- - - -
====== ====== ======= ======
PRIOR YEAR COMPARATIVE Unrestricted
Funds - Designated Restricted Total
General Funds Funds 2021
£ £ £ £
Company
Fixed assets 31,615 - - 31,615
Current assets 217,133 - - 217,133
Current liabilities (248,748) - - (248,748)
------------- ------------ -------------- -------------
- - - -
====== ====== ======= ======

35

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

17. MOVEMENT OF FUNDS IN THE PERIOD

Desired Desired
balance at 28 balance at 27
Balance at 28 March Actuarial March Balance at
March 2021 under Gains/ 2022 under 27 March
2021 Transfers Trust policy Income Expenditure (losses) Trust policy Transfers 2022
£ £ £ £ £ £ £ £
Unrestricted funds –
General 9,208 (2,394,873) (2,385,665) 9,731,057 (9,151,625) 970,000 (836,233) 922,367 86,134
Designated Funds 3,281,222 2,394,873 5,676,095 52,175 (777,959) - 4,950,311 (734,525) 4,215,786
Restricted Funds 32,940 - 32,940 675,406 (518,764) - 189,842 (187,842) 1,740
----------------------- --------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- --------------------- -----------------------
3,323,370 - 3,323,370 10,458,638 (10,448,348) 970,000 4,303,660 - 4,303,660
========== ========== ========== ========== ========== ========== ========== ========== ==========

PRIOR YEAR COMPARATIVE

Desired Desired
balance at 29 balance at 28
Balance at 29 March Actuarial March Balance at
March 2020 under Gains/ 2021 under 28 March
2020 Transfers Trust policy Income Expenditure (losses) Trust policy Transfers 2021
£ £ £ £ £ £ £ £
Unrestricted funds –
General - (3,451,362) (3,451,361) 5,171,847 (4,301,685) (597,000) (3,178,199) 3,187,407 9,208
Designated Funds 3,024,905 3,451,362 6,476,266 901,412 (909,052) - 6,468,629 (3,187,407) 3,281,222
Restricted Funds 30,000 - 30,000 127,278 (124,338) - 32,940 - 32,940
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
3,054,905 - 3,054,905 6,200,537 (5,335,075) (597,000) 3,323,370 - 3,323,370
========== ========== ========== ========== ========== ========== ========== ========== ==========

36

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

17. MOVEMENT OF FUNDS IN THE PERIOD (Continued)

EXPLANATION OF FUNDS AND TRANSFERS

Restricted funds

Restricted funds received by Northampton Theatres Trust in the period represent the following:

Restricted funds received by Corby Cube Theatre Trust in the period represent the following:

Designated funds

Designated funds represent the intentions of the trustees to build up a designated fund to reflect the value of assets acquired with restricted funding. The policy of the charity is to reflect the full value of such assets in a designated fund, which at 27 March 2022 would be £4,950,311 (2021: £6,468,626). As this would lead to a negative general fund balance, a transfer has been made in order to designate the maximum amount available to designate towards this aim. This is calculated as follows:

37

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

17. MOVEMENT OF FUNDS IN THE PERIOD (Continued)
£
Opening designated fund desired under Trust policy 5,676,095
Designated income 52,175
Designated expenditure (777,959)
-----------------------
Intended level of designated fund 4,950,311
Transfer to unrestricted funds (734,525)
-----------------------
Designated funds at 27 March 2022 4,215,786
==========

In certain instances, the assets held as part of this fund must be held by the Trust for a certain period of time. However, it is the view of the trustees that the assets are not restricted at the point of purchase because the Trust intends to continue in operation for the foreseeable future and in doing so the trustees intend to use the assets for the purposes set out in the relevant funding agreements.

38

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

18. PENSION COMMITMENTS

The charitable company is a participating member in the Northamptonshire County Council Superannuation fund. The assets of the scheme are administered by the pension fund Trustees in a fund independent from the funds of the charitable company. Of the total contributions to the scheme for the period ended 27 March 2022, approximately £39,250 (2021: £75,000) were borne by the parent charity, Northamptonshire Arts Management Trust.

Pension costs are assessed in accordance with the advance of a qualified actuary using the projected unit method. The most recent actuarial valuation of the scheme was at 27 March 2022. The actuary has estimated that projected contributions by the Trust will be £108,000 for the year ending 27 March 2022 (2021: £150,000).

The actuary has prepared their annual report up to 31 March 2021. The trustees took into consideration the possible impact of the difference in position between the reported date of 31 March 2021 and the accounting period end of 27 March 2021. They were satisfied that the impact is immaterial and have therefore concluded that it was appropriate to incorporate the position and movement per the actuary’s report as at 31 March 2021. In the prior year, the date of the report and the period end date are aligned.

The principal actuarial assumptions used by the actuary were as follows:

2022 2021
Discount rate 2.7% 2.0%
Rate of increase in pensionable salaries 3.7% 3.35%
Rate of increase in payments 3.2% 2.85%
Life expectancy: current male pensioners who 21.7 years 21.7 years
have reached pensionable age
Life expectancy: current female pensioners who 24.0 years 24.1 years
have reached pensionable age
Life expectancy: future male pensioners who 22.8 years 22.8 years
have reached pensionable age
Life expectancy: future female pensioners who 25.8 years 25.8 years
have reached pensionable age

The amounts (credited) or charged in the Statement of Financial Activities were as follows:

2022 2021
£’000 £’000
Actuarial (gain)/loss (970) 597
(Credit)/charge within net income - -
-------------- --------------
597 597
======= =======

39

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

18. PENSION COMMITMENTS (Continued)

The changes in the fair value of plan assets were as follows:

2022 2021
£’000 £’000
Fair value of plan assets at 31 March 2021 7,353 5,915
Interest income on plan assets 147 135
Employees contributions 12 14
Employers contributions 108 150
Benefits paid (139) (266)
Return on assets excluding amounts included in net 333 1,405
interest
-------------- --------------
Fair value of plan assets at 27 March 2022 7,814 7,353
======= =======

The changes in the fair - value of plan liabilities were as follows:

2022 2021
£’000 £’000
Fair value of plan liabilities at 31 March 2021 9,471 7,436
Current service cost 85 104
Interest cost on defined benefit obligation 189 169
Employees contributions 12 14
Benefits paid (139) (266)
Changes in demographic assumptions (38) 108
Changes in financial assumptions (638) 1,992
Other experience 20 (86)
-------------- --------------
Fair value of plan liabilities at 27 March 2022 8,962 9,471
======= =======

The fair value of the plan assets and liabilities as at 27 March 2022 are as follows:

2022 2021
£’000 £’000
Fair value of plan assets 7,814 7,353
Fair value of plan liabilities (8,962) (9,471)
-------------- --------------
(1,148) (2,118)
======= =======

40

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

18. PENSION COMMITMENTS (Continued)

The major categories of plan assets as a percentage of plan assets were as follows:

2022 2021
Equities 67% 70%
Bonds 19% 17%
Property 13% 12%
Cash 1% 1%

The Trustees agreed to close the scheme to new members after 30 April 2008.

Defined contribution schemes

The charitable company began contributing to the Equity Pension Scheme (EPS) for actors and stage managers employed on short term contracts from April 2006. The charitable company contributes 3% of the actors fee if the person concerned is a member of the EPS, which is a Personal Pension approved under Chapter IV Part XIV Income & Corporation Taxes Act 1988. The charitable company also operates a Group Personal Pension Plan with Scottish Widows, administered by Johnson Fleming, which has replaced the defined benefit scheme with effect from 1 May 2008.

41

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

19. FINANCIAL COMMITMENTS

At the period end, the Group had total commitments under non-cancellable operating leases as follows:

Group Other Land and buildings
2022 2021 2022 2021
£ £ £ £
In one year or less 8,871 12,952 129,437 113,437
Between one and five years 25,795 37,212 366,019 399,456
In five years or more - - 128,000 -
======= ======= ======= =======
Charity Other Land and buildings
2022 2021 2022 2021
£ £ £ £
In one year or less 6,436 2,669 - -
Between one and five year 19,732 2,517 - -
======= ======= ======= ======

In the period ended 27 March 2022, operating lease payments of £159,808 were charged to expenses in the consolidated Statement of Financial Activities (2021: £137,680). In the period ended 27 March 2021, operating lease payments of £6,080 were charged to expenses in the charity Statement of Financial Activities (2021: £5,050)

A significant part of the Royal & Derngate theatre occupied by the Northampton Theatre Trust Limited is provided on a rent free basis as part of West Northamptonshire Council's overall support to the Trust. The premises occupied by the Corby Cube Theatre Trust are provided by North Northamptonshire Council on the basis of a peppercorn rent as part of the Council’s support to the Trust.

20. CAPITAL COMMITMENTS

There were capital commitments at 27 March 2022 of £nil. The total commitment at the 2021 period end was £nil.

21. NET CASH INFLOW FROM OPERATING ACTIVITIES 2022 2021
£ £
Net movement in funds 980,290 268,462
Depreciation 919,814 970,634
(Profit)/loss on disposal of fixed assets - (13,690)
Decrease/(increase) in debtors (443,798) 332,080
(Decrease)/increase in creditors (excluding overdraft) 843,497 (429,847)
Decrease/(increase) in stock (14,228) 19,790
Movement in pension liability (970,000) 597,000
------------------ ------------------
1,315,575 1,744,429
========= =========

42

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2022

22. CONTROL

The controlling party is the Board of Trustees, representing the company’s members.

43

NORTHAMPTONSHIRE ARTS MANAGEMENT TRUST NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 27 March 2021

23. COMPARATIVE GROUP STATEMENT OF FINANCIAL ACTIVITIES (PERIOD ENDED 31 March 2021)

The purpose of the note below is to show the fund-by-fund comparatives included in the group Statement of Financial Activities.

Unrestricted Designated Restricted Total
Funds - Funds Funds 2021
General
Note £ £ £ £
INCOME FROM
Grants and donations 3 5,010,550 901,414 127,278 6,039,242
Other trading activities 4 4,157 - - 4,157
Charitable activities 5 94,849 - - 94,849
Other income 62,289 - - 62,289
--------------------- --------------------- --------------------- ---------------------
Total income 5,171,845 901,414 127,278 6,200,537
--------------------- --------------------- --------------------- ---------------------
EXPENDITURE ON
Raising funds 6 443,363 16,018 - 459,381
Charitable activities
- Presented work 6 1,655,762 65,730 - 1,721,492
- Produced work 6 1,047,983 37,989 34,666 1,120,638
- Creative projects 6 512,473 27,874 89,672 630,019
- Cinema 6 642,072 22,529 - 664,601
- Redevelopment 6 - 738,911 - 738,911
Other – finance costs 6, 19 30 - - 30
--------------------- --------------------- --------------------- ---------------------
Total expenditure 4,301,683 909,051 124,338 5,335,072
--------------------- --------------------- --------------------- ---------------------
Net 870,162 (7,637) 2,940 865,465
(expenditure)/income
Actuarial gains / (losses) 19 (597,000) - - (597,000)
Transfers between funds 18 (263,954) 263,954 - -
--------------------- --------------------- --------------------- ---------------------
Net movement in funds 9,208 256,317 2,940 268,465
TOTAL FUNDS AT 1 18 - 3,024,905 30,000 3,054,905
APRIL 2019
======== ======== ======== ========
TOTAL FUNDS AT 27 18
March 2020 9,208 3,281,222 32,940 3,323,370
======== ======== ======== ========

44