**Charity registration number 1142368**
**Company registration number 07495610 (England and Wales)**
## **ACOSTA DANCE FOUNDATION LIMITED**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **ACOSTA DANCE FOUNDATION LIMITED**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Carlos Acosta Quesada David Caswell Robert Davage Rupert Rohan Andrew Skipwith **Secretary** Robert Davage **Charity number** 1142368 **Company number** 07495610 **Registered office** Aberdeen House South Road Haywards Heath West Sussex RH16 4NG **Independent examiner** Gravita ABG LLP 30 City Road London EC1Y 2AB
## **ACOSTA DANCE FOUNDATION LIMITED**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 6|
|Independent examiner's report|7|
|Statement of financial activities|8|
|Balance sheet|9|
|Statement of cash flows|10|
|Notes to the financial statements|11 - 19|
## **ACOSTA DANCE FOUNDATION LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
The directors (who are also the trustees for the purposes of charity law) present their annual report and financial statements for the year ended 31 August 2022.
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 charity'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 objects of the Foundation are:
"To promote and advance the arts and in particular the arts of ballet, drama, music, the visual arts, the craft of theatrical design, lighting, stage craft and similar and ancillary arts.
To promote and assist in the advancement of public education in and knowledge, understanding and appreciation of the arts of ballet, drama, music, the visual arts, the craft of theatrical design, lighting, stage craft and similar and ancillary arts.
To educate and train young people of moderate or limited means in the arts, and in particular the arts of ballet, drama, music, the visual arts, the craft of theatrical design, lighting, stage craft and similar and ancillary arts.
To establish or secure the establishment of dance schools, performance theatres and ancillary buildings and to maintain and manage the same (whether alone or in co-ordination with any local authority or other person or body) for activities promoted by the charity in furtherance of the above objects."
The Trustees confirm they have paid due regard to the guidance on public benefit issued by the Charity Commission in deciding what activities the Foundation should undertake.
## **Achievements and performance**
## **Autumn Term**
Although the school year was scheduled to start in September 2021 and the Cuban students enjoyed a break in August, the foreign students continued to work online to prepare the 2nd partial control work in Ballet, Dance Technique Cuban and Cuban folkloric dances. The videos were sent by the teachers and the students had the option of sending a first video for approval. The deadline for the delivery of the final exam video was September 15th, 2021.
Due to the complex epidemiological situation that the country was facing at that time, the school year could not start on September 1 as planned. For this reason, the Academy maintained its remote work with the students, until the epidemiological conditions allowed a return to face-to-face work. In September the school year resumed online with the 2nd and 3rd year students studying Ballet, Technique and Folklore.
The student who had a road traffic accident and could not attend the Academy during most of 2020― was able to re-join her 2nd year group after passing the final Ballet, Dance Technique and Folklore exams that were outstanding from her 1st year. Since she had to catch up with the subjects sent during the second stage of confinement, it was agreed that all the teachers of the specific subjects would begin to work remotely with her from September, until classes restarted.
During September, the vaccination process against COVID 19 for children up to 17 years old was also concluded in Cuba. This allowed the course to be resumed in person, firstly, with the third year group, on Monday, October 4, and later, on November 15, with the 2nd year group. The students who were not from Havana could not return until the Student Residence where they stay thanks to the scholarships awarded to them ceased to be an isolation centre. For the foreign students, it was possible to conclude the assessments corresponding to the 2nd Partial Control Work of the subjects of Ballet, Dance Technique and Folklore online.
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## **ACOSTA DANCE FOUNDATION LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
On October 4, face-to-face classes began at our Academy with the 3rd year group. All the students of this group were able to satisfactorily incorporate and receive all relevant topics without any difficulty. One of our students submitted her request to withdraw from the Academy. The 2nd year students continued with online work until November 1, when they were authorized to join. At the end of that month, students from other Cuban provinces were able to return to Havana to join the school year. The deputy director of the Academy, Aymara Vasallo, met with the teaching secretary of the National School of Dance to receive the new guidelines on the readjustment of the contents and the evaluation system according to the duration of the course, whose conclusion was set for the month of February 2022.
The foreign students continued to work remotely during this time and the 4th year students, in pre-professional internships, took ballet, contemporary and physical preparation classes with the Company, subjects that were evaluated during the internship period. Likewise, together with their foreign classmates who graduated, they received theoretical classes with Professor Maria del Carmen Mena to prepare the Final Comprehensive Work (theoretical-practical) that they carried out to close the pre-professional practice period before graduation.
During November, the students were dedicated to study and prepare for the exams that closed this first cycle in December. On the other hand, the Academy was selected to participate in the fourteenth International Havana Biennial with the Stretch Timemonochromes project, by the Belgian choreographer Isabella Soupart, which took place at the National Museum of Fine Arts of Cuba.
The student selection process began on Monday, November 22, and rehearsal began on Tuesday, November 23. Initially, only 7 students from the 2nd and 3rd year groups were to be selected, but the choreographer was very impressed with everyone’s performance and, finally, she decided to choose 13 students for the choreography and use the rest in the last part of the performance. The presentations took place on Friday the 26th. The first one started at 3:00 pm, in different areas of the Museum of Cuban Art and the second at 6:30 pm, in the theatre of the Museum.
On this occasion, our students also had the opportunity to work with three professional dancers who were assistants to the choreographer, and other guest artists, which was an enriching experience for all of them. These presentations contributed to assess the subject of Repertoire at this stage.
Exams were held in December and the students enjoyed the holidays with their families. 6 students from the Academy (three from the 2nd year and three from the 3rd year) were offered to be part of the cast of Acosta Danza in its next season. They were also chosen to participate in a tour in the Netherlands in February. These dancers remained in Havana throughout this stage to attend the Company’s classes and rehearsals. To support them in this challenge, the Academy management prepared a special plan for them to receive the contents of the classes and take the assessments and exams corresponding to this end-of-course stage, without detriment to their commitment to the Company.
## **Spring Term**
After the break, classes resumed on January 10, 2022; the school was resumed at the Academy with the groups of 2nd and 3rd years. It was necessary to replace the teacher of Choreographic Composition because the teacher in charge of that subject left the country. On January 15, the students of the pre-professional practice participated in the Final Project, which marked the culmination of the 4th year studies. This was an academic exercise that included the analysis of the pieces danced with the Acosta Danza Company and the particular experience acquired by each student in the professional field throughout the assembly, rehearsal and performance process. Two students left the Academy, one by choice and the other due to repeated unexcused absences.
During the month of February, the closing of assessments and final exams was carried out to conclude the 20212022 academic year. In the week of the 21st to the 25th of that month, the 2nd and 3rd year students participated in a workshop on Character Dances and Ballroom Dances given by Ms. Nor Maria Olaechea, a specialist teacher in these dance styles. Likewise, individual appraisals of the students were carried out with the faculty and parents were sent a report of the academic results and the assesments of the specialty teachers about the performance of their children during the course. Said report reflected the achievements, difficulties and aspects to be improved for the next academic year.
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## **ACOSTA DANCE FOUNDATION LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
The Academy had a break during the week of February 28 to March 6 and on March 7 all of our students joined the new 2021-2022 course. The new 4th year group, together with the foreign students, began their pre-professional practice period at the company and attended the workshop that allowed them to prepare their final project.
An English Film Company group visited the Academy: they filmed extracts of the Cuban Modern Dance Technique class and interviewed the Director Aymara Vasallo and Aniel Pazos, one of our students, for a documentary. The company toured the city of Cárdenas, in the province of Matanzas, and our foreign students were invited.
During April, the Acosta Danza Academy received an invitation from the “Fernando Alonso” National Ballet School to participate in the International Ballet Competition held within the framework of the International Meeting of Academies for the Teaching of Ballet. The Academy was represented by Thalia Cardin Diaz, a 3rd year student who was awarded the 2nd prize for interpretation with the solo Huella in the intermediate contemporary category. The preparation for the contest was handeled by the deputy director and ballet teacher Aymara Vasallo, the contemporary teacher Mailyn Castillo and the choreographer of the piece, Héctor J. Rodriguez (4th year student of the Academy).
On April 22, the students Rosa Lidia Cabrera, from the Dominican Republic (3rd year) and Frank Junior Isaac (4th year) participated in the piece Nosotros in the gala dedicated to “The days of dance”, in the Covarrubias Hall of the National Theater . On Saturday, April 23, the general director Carlos Acosta had a discussion with the graduates and students of the Academy in the “Acosta Danza” company.
In May, the exams and assessments corresponding to the first assessment cut of the 21-22 school year were carried out with the 3rd year group. Meanwhile, the 4th year group (pre-professional practice) was preparing for the presentation of the Final Comprehensive Work; likewise, the students of this group were assessed on Ballet, Dance Technique, Contemporary and Physical Preparation, with the exception of a student to who the Academy management decided to extend the practice period until November due to an ankle injury that had forced her to take a long rest. Another student was asked to leave the Academy because his family was due to emigrate to the United States.
On the other hand, the presentation of the “Youth in the National” Season, was carried out by the young “Acosta Danza” Company in the Avellaneda hall of the National Theater of Cuba, and performed by two 4th year students and 3 3rd year students, two of them are foreigners.
On June 8, the Practical Academic Exercise corresponding to the Comprehensive Final Work of the students of the Pre-professional Practice and foreign students was held at the headquarters of the Acosta Danza company. This exercise was a public presentation with the following works: The death of two swans, Huella, Paysage, Soudain, la Nuit, Satori, Nosotros and De punta a Cabo. On June 11, the foreign students gave a verbal presentation of the Comprehensive Final Project and returned to their countries on the 15th. Meanwhile, the 4th year students made their presentations on the 16th of the same month.
## **Summer Term**
During July, the second assessment corresponding to the present school year was carried out. Only the Partial Control Work of the Classical Duet subjects were pending and were carried out in the second half of September. One week before the beginning of the assessments, a student became ill with dengue fever and for this reason it was decided to assess her based on her work throughout the course. The transfer of students to their provinces took place from July 15. The new course started on September 5.
## **Auditions**
On August 1, 2022, the Acosta Danza Academy launched on social networks the the invitation to participate in online auditions to enroll students in for the new 2022-2023 school year. More than 70 students from all over the country participated in these auditions. The review of the videos covered the entire month of August and the first half of September. That first selection was handled by Yaday Ponce, artistic director of the Acosta Danza Company and Aymara Vasallo, director of the Academy. The students approved on the online auditions were assessed in face-to-face auditions in Havana and Santiago de Cuba, on September 10 and 17, respectively.
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## **ACOSTA DANCE FOUNDATION LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **Cuba Update**
During 2022, Cuba faced several difficulties. There was a severe shortage of food, medicine and fuel, a crisis only comparable to the one known as the Special Period, which affected the Cuban population during the 1990s. With a financial situation plagued by crisis and shortages, inflation has become one of the main problems, especially due to its impact on the decline in the buying power of the population. The increase in prices reached close to 40% between October 2021 and the same month in 2022. In 2022 the Cuban economy grew less than forecast, 2% of the Gross Domestic Product, partly because one of the main sectors, tourism, fell short of expectations. Cubans lived a tense year, with long waiting times to stock up on basic products and medicines. At the same time, there were days in which more than 40% of the users did not have electricity due to lack of fuel or breakdowns in the old thermoelectric plants that cannot be replaced due to lack of financing. The combined effect of the paralysis due to the pandemic, the economic sanctions of the United States, controversial economic measures of the Cuban government and an increase in international prices, especially for food, were the basis of a record emigration, unprecedented in history for the country. (It is estimated that more than 220,000 people arrived at the northern border of Mexico with the intention of continuing their journey. An undetermined number, especially young people, left for Europe). In 2022, several large-scale accidents such as explosions and large fires occurred in Cuba, as well as meteorological events that, in addition to the negative burden left on the inhabitants’ spirits, exacerbated the scarcity of resources and social instability. By 2023, a GDP growth of 3% is estimated if the goal to attract 3.5 million tourists is reached, according to Cuban government sources.
## **Plans for the Future**
In a major new development 2023, the Foundation will operate from new premises in Woolwich in collaboration with Greenwich Council. It will include the Acosta Dance Centre under its umbrella as a venue for the development of artistic education &community programming.
The Acosta Dance Centre will deliver several public courses and classes, including dance classes, workshops, festivals, dance & choreographic residencies and fellowships. The Centre will act as a gathering place for dance seekers, an international ambassador for dance education, and a dance reference for the Greenwich Borough and beyond.
Opening a new dance centre in London will increase the Foundation’s capacity to reach a broader audience. As the Foundation’s central pillar, the Centre aims to become an international dance reference for the unrepresented and those still marginalised, playing a pivotal role in delivering the Foundation’s ambition of nurturing civic leadership and community engagement.
## **Financial review**
The Foundation generated income of £608,043 in the 12 months ended 31 August 2022 (2021: £142,088). No further funds (2021: £36,335) were received towards the scholarship fund for students starting from September 2022 which is included in restricted funds.
A grant of £ 594,312 was received in the year for the specific purpose of funding Acosta Danza, the dance company into which successful students progress at the end of their studies, and which the trustees consider to be in line with charity’s purpose and operating principles. This formed a grant in turn to Acosta Danza in accordance with its terms.
The net movement in funds for the year was a decrease of £138,239 (2021: decrease of £154,095). This gives total funds at 31 August 2022 of £394,648 (2021: £527,462) of which £291,701 was restricted (2021: £423,042).
The trustees consider that there are no material uncertainties about the Foundation's ability to continue as a going concern.
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## **ACOSTA DANCE FOUNDATION LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **Reserves policy**
At the year end the Foundation had free reserves of £102,947 (2021: £104,420).
The trustees have previously stated their aim to hold a level of free reserves to cover one term of Academy expenditure. Based on the budgeted costs for the academic year starting in September 2022, revised in light of the impact of COVID-19, this currently approximates to £90,000 per term. However, it should be noted that, thanks to the generosity of the Oak Foundation and Aud Jebsen, the current running costs of the Academy are almost exclusively covered under the terms of their respective grants. The trustees accordingly believe that current reserves are sufficient to cover all foreseeable eventualities for the next two years, will continue to build free reserves to secure the future of the Academy.
## **Safeguarding**
The trustees are aware of their safeguarding responsibilities for the students of the Academy. A safeguarding policy was put in place during the year following consultation with Keeping Children Safe. All UK and Cuban staff have undergone safeguarding training. Furthermore, this training is extended to all staff and dancers who share the building in Cuba so that they are also aware of how to treat the children who they may come into contact with during their working day.
## **Principal risks and uncertainties**
The Trustees regularly review the major risks facing the Foundation to ensure that strategies for mitigation of these risks are sufficient.
The main activities of the Foundation are focussed in Cuba, including the building work which is a major asset of the Foundation. The Trustees consider the main uncertainty to stem from the political climate in Cuba and potential instabilities following the death of Fidel Castro. The Trustees regularly travel to Cuba to help continually monitor the situation and ensure assets are safeguarded sufficiently.
## **Related parties**
The Foundation uses the services of Rohan Solicitors LLP, a solicitors practice controlled by the trustee, Rupert Rohan. Legal services are charged on an arm's length basis.
## **Structure, governance and management**
The Foundation is a company limited by guarantee, incorporated and registered in England and Wales. It operates under the rules of its Memorandum and Articles of Association dated 14 January 2011. It has no share capital and the liability of each member in the event of winding up is limited to £10. The total number of such guarantees at 31 August 2022 is 2.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Carlos Acosta Quesada
David Caswell Robert Davage Rupert Rohan Andrew Skipwith
Trustees are appointed by the existing Trustees for the specific skills and knowledge they can bring to the board. There is no formal training programme for trustees but they are encouraged to attend courses as and when appropriate.
The trustees are ultimately responsible for the decision making of the organisation. The charity considers its key management personnel to be the trustees.
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## **ACOSTA DANCE FOUNDATION LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **Statement of trustees' responsibilities**
The trustees, who are also the directors of Acosta Dance Foundation 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 charity 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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by the Board of Trustees.
.............................. Rupert Rohan Rupert Rohan
## **Trustee**
Date: .............................................30 May 2023
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## **ACOSTA DANCE FOUNDATION LIMITED**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF ACOSTA DANCE FOUNDATION LIMITED**
I report to the trustees on my examination of the financial statements of Acosta Dance Foundation Limited (the charity) for the year ended 31 August 2022.
## **Responsibilities and basis of report**
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **Gravita ABG LLP**
30 City Road London EC1Y 2AB Dated: .........................30 May 2023
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## **ACOSTA DANCE FOUNDATION LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
|||**Unrestricted**|**Restricted**|**Total Unrestricted**|**Total Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|---|---|---|---|
|||**funds**|**funds**||**funds**|**funds**||
|||**2022**|**2022**|**2022**|**2021**|**2021**|**2021**|
||**Notes**|**£**|**£**|**£**|**£**|**£**|**£**|
|**Income from:**||||||||
|Donations and legacies|**3**|13,731|594,312|608,043|105,753|36,335|142,088|
|**Expenditure on:**||||||||
|Raising funds|**4**|1,013|338|1,351|6,237|3,778|10,015|
|Charitable activities|**5**|14,191|730,740|744,931|92,905|193,263|286,168|
|**Total expenditure**||15,204|731,078|746,282|99,142|197,041|296,183|
|**Net expenditure for the**|**year/**|||||||
|**Net outgoing resources**||(1,473)|(136,766)|(138,239)|6,611|(160,706)|(154,095)|
|**Other recognised gains and losses**||||||||
|Other gains or losses|**10**|-|5,425|5,425|-|-|-|
|**Net movement in funds**||(1,473)|(131,341)|(132,814)|6,611|(160,706)|(154,095)|
|Fund balances at 1 September||||||||
|2021||104,420|423,042|527,462|97,809|583,748|681,557|
|**Fund balances at 31 August**||||||||
|**2022**||102,947|291,701|394,648|104,420|423,042|527,462|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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## **ACOSTA DANCE FOUNDATION LIMITED**
## **BALANCE SHEET**
## _**AS AT 31 AUGUST 2022**_
|**Notes**
**Fixed assets**
Tangible assets
**11**
**Current assets**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**12**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**13**
Unrestricted funds|**2022**
**£**
414,607
(19,959)|**£**
-
394,648
394,648
291,701
102,947
394,648|**2021**
**£**
458,032
(28,740)|**£**
98,170
429,292|
|---|---|---|---|---|
|||||527,462|
|||||423,042
104,420|
|||||527,462|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2022.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on .........................30 May 2023
.............................. Rupert Rohan Rupert Rohan
**Trustee**
## **Company registration number 07495610**
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## **ACOSTA DANCE FOUNDATION LIMITED**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
|**2022**
**Notes**
**£**
**Cash flows from operating activities**
Cash (absorbed by)/generated from
operations
**16**
**Net cash used in investing activities**
**Net cash used in financing activities**
**Net (decrease)/increase in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2021**
**£**
**£**
(43,425)
-
-
(43,425)
458,032
414,607|**£**
21,742
-
-|
|---|---|---|
|||21,742
436,290|
|||458,032|
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## **ACOSTA DANCE FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **1 Accounting policies**
## **Charity information**
Acosta Dance Foundation Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Aberdeen House, South Road, Haywards Heath, RH16 4NG, UK.
It has no share capital and the liability of each member in the event of winding up is limited to £10. The total number of such guarantees at 31 August 2022 is 2.
## **1.1 Accounting convention**
The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The Foundation constitutes a public benefit entity as defined by FRS 102.
## **1.2 Going concern**
During the financial year in question, the effects of the pandemic and the subsequent restrictions on travel imposed as a result thereof have created difficulties for the foreign students attending the Academy and have prevented the Trustees from visiting Cuba during the period. Notwithstanding the logistical difficulties the travel restrictions have imposed, we remain confident of the team's ability to continue to deliver training to the students at the Academy and we do not consider that there are currently any material uncertainties about the Foundation's ability to continue as a going concern.
## **1.3 Charitable funds**
Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor or the appeal that generated the income.
## **1.4 Incoming resources**
All income is recognised once the Foundation has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donations are recognised on a cash receipts basis. Grants are recognised when the Foundation has been notified in writing of both the amount and settlement date. In the event that a grant is subject to conditions that require a level of performance before the Foundation is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Foundation and it is probable that those conditions will be fulfilled in the reporting period.
Investment income is recognised on an accruals basis.
Gifts in kind are recognised on receipt at the value the Foundation would have paid for the goods or services on the open market.
## **1.5 Resources expended**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.
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## **ACOSTA DANCE FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **1 Accounting policies**
## **(Continued)**
## **1.6 Allocation of support and governance costs**
Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.
Support costs and governance costs are apportioned between expenditure on charitable activities and fundraising on the basis of time spent on each activity.
## **1.7 Tangible fixed assets**
All assets costing more than £2,500 are capitalised and valued at historical cost.
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:
Building improvements Over 5 years straight line Fixtures and fittings Over 4 years straight line Equipment Between 3 and 4 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.
## **1.8 Impairment of fixed assets**
At each reporting end date, the charity 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).
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand and deposits held at call with banks
## **1.10 Financial instruments**
The charity 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 charity's balance sheet when the charity 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.
- 12 -
## **ACOSTA DANCE FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **1 Accounting policies**
## **(Continued)**
## _**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 charity 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 and bank loans 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 payments 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.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.11 Foreign exchange**
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
## **2 Critical accounting estimates and judgements**
In the application of the charity’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.
- 13 -
## **ACOSTA DANCE FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Donations and gifts
13,731
594,312
**Donations and gifts**
Donations from
individuals, including gift
and income
905
-
Donations from
organisations
12,826
594,312
13,731
594,312|**Total**
Unrestricted
Restricted
funds
funds
**2022**
2021
2021
**£**
£
£
608,043
105,753
36,335
905
100,753
-
607,138
5,000
36,335
608,043
105,753
36,335|Total
2021
£
142,088|
|---|---|---|
|||100,753
41,335|
|||142,088|
All of the donations are used by the Academy in Cuba.
## **4 Raising funds**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Fundraising and publicity
Advertising
900
-
Consultancy
113
338
Support costs
-
-
Fundraising and publicity
1,013
338
1,013
338|**Total**
Unrestricted
Restricted
funds
funds
**2022**
2021
2021
**£**
£
£
900
-
-
451
4,735
3,403
-
1,502
375
1,351
6,237
3,778
1,351
6,237
3,778|Total
2021
£
-
8,138
1,877|
|---|---|---|
|||10,015|
|||10,015|
- 14 -
## **ACOSTA DANCE FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **5 Charitable activities**
|Depreciation and impairment
Consultancy
Other fees
Equipment costs
Student costs
Costumes and uniforms
Other running costs
Student production costs
Travel
Grant funding of activities (see note 6)
Share of support costs (see note 7)
Share of governance costs (see note 7)
**Analysis by fund**
Unrestricted funds
Restricted funds
**6**
**Grants payable**
Grants to institutions:
Valid Productions Limited|**2022**
**£**
98,169
4,109
12,150
3,576
4,416
158
2,882
-
6,467
131,927
594,312
10,204
8,488
744,931
14,191
730,740
744,931
**2022**
**£**
594,312|**2021**
**£**
177,557
22,194
46,076
4,032
10,468
3,072
5,580
298
-|
|---|---|---|
|||269,277
-
5,863
11,028|
|||286,168|
|||92,905
193,263|
|||286,168|
|||2021
£
-|
-
- 15 -
## **ACOSTA DANCE FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **7 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Trustees fees
8,100
-
Printing, postage and
stationery
-
-
Bank charges
261
-
Insurance
1,368
-
Sundry expenses
475
-
Accountancy and audit
-
8,260
Legal and professional
fees
-
228
10,204
8,488
Analysed between
Fundraising
-
-
Charitable activities
10,204
8,488
10,204
8,488|**2022**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
**£**
8,100
6,200
-
-
81
-
261
263
-
1,368
1,196
-
475
-
-
8,260
-
10,800
228
-
228
18,692
7,740
11,028
-
1,877
-
18,692
5,863
11,028
18,692
7,740
11,028|**2021**
**£**
6,200
81
263
1,196
-
10,800
228|
|---|---|---|
|||18,768|
|||1,877
16,891|
|||18,768|
## **8 Staff costs**
The Foundation does not employ any staff directly. The staff of the Academy are all employees of the Cuban Government. The Foundation does pay contributions for the staff services, which are included within charitable expenditure (see note 5).
No Trustee receives a fee for acting as a trustee but in accordance with the provisions of the Articles of Association Trustees are permitted to charge for the provision of goods and services to the Foundation. In the period payments were made to Rupert Rohan of £6,000 (2021: £5,000) and Robert Davage of £2,100 (2021: £1,200) for legal and accountancy services respectively.
No expenses were reimbursed to trustees during the period (2021: £nil).
## **9 Taxation**
The Foundation is a registered charity and as such is not liable to corporation tax on its income derived wholly from charitable activities.
- 16 -
## **ACOSTA DANCE FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **10 Other gains or losses**
|**Restricted**
**funds**
**2022**
**£**
Foreign exchange gains
(5,425)
**11**
**Tangible fixed assets**
**Building**
**improvements**
**Fixtures and**
**fittings**
**Equipment**
**£**
**£**
**£**
**Cost**
At 1 September 2021
490,843
354,838
10,186
At 31 August 2022
490,843
354,838
10,186
**Depreciation and impairment**
At 1 September 2021
392,675
354,838
10,186
Depreciation charged in the year
98,168
-
-
At 31 August 2022
490,843
354,838
10,186
**Carrying amount**
At 31 August 2022
-
-
-
At 31 August 2021
98,170
-
-|Total
2021
£
-|
|---|---|
||**Total**
**£**
855,867|
||855,867|
||757,699
98,168|
||855,867|
||-|
||98,170|
The building improvements relate to the dance studio which was brought in to use when students started the term on 18 September 2018. Depreciation therefore commenced at that date and fully depreciated in the year.
## **12 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
||**2022**|**2021**|
||**£**|**£**|
|Accruals and deferred income|19,959|28,740|
- 17 -
## **ACOSTA DANCE FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **13 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 September**
**2020**
**Incoming**
**resources**
**Resources**
**expended**
**Balance at**
**1 September**
**2021**
**r**
**£**
**£**
**£**
**£**
Building and accommodation fund
196,336
-
(98,169)
98,167
Oak Foundation equipment fund
107,881
-
(44,886)
62,995
Acosta-Jebsen Scholarship Fund
279,531
-
(53,986)
225,545
Jorge Perez Foundation
-
36,335
-
36,335
583,748
36,335
(197,041)
423,042|**Movement in funds**
**Incoming**
**esources**
**Resources**
**expended**
**Revaluations,**
**gains and**
**losses**
**Balance at**
**31 August**
**2022**
**£**
**£**
**£**
**£**
-
(98,167)
-
-
594,312
(608,186)
-
49,121
-
(24,725)
-
200,820
-
-
5,425
41,760
594,312
(731,078)
5,425
291,701|**Movement in funds**
**Incoming**
**esources**
**Resources**
**expended**
**Revaluations,**
**gains and**
**losses**
**Balance at**
**31 August**
**2022**
**£**
**£**
**£**
**£**
-
(98,167)
-
-
594,312
(608,186)
-
49,121
-
(24,725)
-
200,820
-
-
5,425
41,760
594,312
(731,078)
5,425
291,701|
|---|---|---|
|||291,701|
## **Purpose of restricted funds**
## **Building and accommodation fund**
Funds for the building work on the Studio Building used by the Foundation and accommodation for students.
## **Oak Foundation equipment fund**
A generous 3 year grant has been pledged by Oak Foundation which is to be used as a contribution to various specific costs of equipment, consultants and initial costs of running the dance school.
## **Acosta-Jebsen Scholarship fund**
A generous donation has created a scholarship to support students starting from September 2018 at the Academy.
## **Jorge Perez Foundation**
A donation from Jorge Perez Foundation for the purpose of supporting dancers in training at the Academy.
## **Acosta Danza fund**
A generous donation by Oak Foundation towards the activities of Acosta Danza in Cuba.
- 18 -
## **ACOSTA DANCE FOUNDATION LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 AUGUST 2022**_
|**14**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances at 31
August 2022 are
represented by:
Tangible assets
-
-
Current assets/(liabilities)
102,947
291,701
102,947
291,701|**Total**
Unrestricted
funds
Restricted
funds
**2022**
2021
2021
**£**
£
£
-
-
98,170
394,648
104,420
324,872
394,648
104,420
423,042|Total
2021
£
98,170
429,292|
|---|---|---|
|||527,462|
## **15 Related party transactions**
## **Transactions with related parties**
As well as the transactions noted in note 9, the Foundation used the services of Rohan Solicitors LLP, a solicitors practice controlled by the trustee, Rupert Rohan. During the year, £193 (2021: £196) was charged to the Foundation for services by Rohan Solicitors LLP.
During the year, the Foundation received donation of £2,100 (2021: £nil) from Valid Productions Limited. Rupert Rohan, a trustee of the Foundation, is also a director of Valid Productions Limited.
The Foundation paid a grant of £594,312 (2021: £nil) to Valid Productions Limited in the year. At 31 August 2022, the Foundation owed Valid Productions Limited £400 (2021: £400).
|**16**|**Cash generated from operations**|**2022**|**2021**|
|---|---|---|---|
|||**£**|**£**|
||Deficit for the year|(138,239)|(154,095)|
||Adjustments for:|||
||Foreign exchange differences|5,425|-|
||Depreciation and impairment of tangible fixed assets|98,169|177,557|
||Movements in working capital:|||
||(Decrease) in creditors|(8,780)|(1,720)|
||**Cash (absorbed by)/generated from operations**|(43,425)|21,742|
## **17 Analysis of changes in net funds** The charity had no debt during the year.
- 19 -