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2021-03-31-accounts

Report of the Directors and Financial Statements

For the Year Ended 31 March 2021 for

Valley Community Theatre (Company limited by guarantee and not having share capital)

Valley Community Theatre (Company limited by guarantee and not having share capital)

Contents of the Financial Statements for the Year Ended 31 March 2021

Page
Company Information 1
Report of the Directors 2
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9
The following pages do not form part
of the statutory financial statements:
Independent Examiner’s Report 13
Profit and Loss Account 14

Valley Community Theatre (Company limited by guarantee and not having share capital)

Company Information for the Year Ended 31 March 2021

DIRECTORS: P Lodge E Lodge M Rowland L Evans C Freeney T McLennan SECRETARY: M A Ball REGISTERED OFFICE: Valley Community Theatre Childwall Valley Road Liverpool Merseyside L27 3YA

REGISTERED NUMBER: - COMPANY: 03900667 (England and Wales) - CHARITY: 1150615 (England and Wales)

Page 1

Valley Community Theatre (Company limited by guarantee and not having share capital)

Report of the Directors

for the Year Ended 31 March 2021

The directors present their report with the financial statements of the company for the year ended 31 March 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of an arts facilities operator.

The company was incorporated under the Companies Act 1985, under the terms of its Memorandum and Articles of Association, on 29 December 1999, having already been registered as a Charity in accordance with this governing document on 19 October 1994. In 2013 a new Memorandum and Articles of Association was adopted and the charity was registered again. The new registration number is 1150615

RESULTS

The results for the year are shown in the annexed financial statements.

Mission

The Valley Community Theatre

Public Benefit

The Trustees have considered the Charities Commissions’ Guidance on public benefit in the shaping of its mission and the planning of the Valley Community Theatre’s activities for the year.

Activity

The principal activity of the company in the year under review was that of an arts facilities operator and providing theatre, dance, music, art and film opportunities for young people and the community.

The Valley Community Theatre is one of the largest, newly refurbished youth theatres in the North West of England, and runs:

The Board of Directors/Trustees fulfil their responsibilities as volunteers, and young people are encouraged to contribute to the activities of the VCT when appropriate as supervised volunteers.

Page 2

Valley Community Theatre (Company limited by guarantee and not having share capital)

Report of the Directors (continued) for the Year Ended 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational Structure

The company is managed by its volunteer Board of Directors/Trustees, who appoint the Project Director, who line manages sessional and project tutors, artists and administrative staff.

The directors of the Company, and Trustees of the registered charity, during the year under review were: P Lodge L Evans E Lodge C Freeney M Rowland T McLennan

The Board meets once a month for ten months of the year and at other times as necessary.

All the directors, being eligible, offer themselves for election at the forthcoming Annual General Meeting. All directors are trustees for the purposes of charity law. Since the company is limited by guarantee and does not have share capital, they are the subscribing members who have guaranteed to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up. The total number of guarantees at 31 March 2020 was 4. (2019: 4).

Trustee Induction and Training

Training for existing Trustees and further development of the Board of Directors remains under review. Via the Youth Arts Development Forum, young people have been encouraged and prepared to attend meetings of the Trustees as observers.

Related Parties

From its inception the Theatre has received an annual starter grant from Liverpool City Council. The year under review is the fifth year in concession to offer no such opportunity nor did it offer any opportunity to tender for a specific youth based project. The Theatre continues to see its role in the context of the City’s Youth Arts policy and programme and the City’s provision for young people at risk, hard to reach or facing barriers.

Risk Management

The Board takes seriously its responsibilities and carries out through its Theatre Director full risk assessments on all activities undertaken. Proper consideration is given to fulfilling the requirements of such policies as the VCT Health and Safety, Fire, Diversity and Safeguarding Policies to ensure the safety of all staff, users and visitors. Regular reviews are carried out and the item is part of the standing Agenda at meetings.

ACHIEVEMENTS AND PERFORMANCE

CHAIR'S REPORT 2020-21

The year began with the government enforcing a National Lockdown on 23[rd] March 2020 due to the Covid-19 global pandemic. We contacted our funders to see if we would be allowed to continue with our projects via digital sessions to ensure we could continue to reach our beneficiaries and remain in contact throughout the year.

Our funders - Steve Morgan Foundation and Liverpool City Council then got in touch with us to say that they would continue to pay our grants regardless of whether we were digitally delivering or in furlough which was a huge relief, and we were extremely grateful for their continued support throughout the year.

2 of our part time staff were furloughed whilst we decided not to furlough our Charity Director as he wanted to continue to deliver digital sessions throughout lockdown with the help of a fantastic volunteer force and freelance staff as so many people depend on Valley projects.

After training and induction we began our digital delivery via Zoom and WhatsApp.

Page 3

Valley Community Theatre (Company limited by guarantee and not having share capital)

Report of the Directors (continued) for the Year Ended 31 March 2021

In addition, as some of our older beneficiaries were digitally isolated one of our volunteers kindly phoned the group weekly to check in on them. We also regularly phoned / facetimed some of our most vulnerable adult beneficiaries with disabilities to ensure they understood guidelines and had their basic needs met.

Digital delivery continued through lockdowns and was a great success with lots of amazing creative work produced. The digital sessions have provided a chance for us to ‘check in’ to make sure everyone was doing ok – if they need anything – and the creative aspect has improved mental health and provided a vital lifeline for those isolating alone. Several of our young people were often virtually ‘lined up’ waiting to attend the session 10-15 mins before the start time!

We have managed to successfully achieve the outcomes required from our funders to fulfil our grant terms and they were happy with our methods.

However, huge amounts of stress were also at the forefront for staff and Trustees as we lost all of our earned income booked in from our theatre hire and café funds and it left Valley in an extremely fragile state financially. The biggest loss of all was cultural rather than financial – the true fallout of limited and restricted creative activities for our beneficiaries was yet to be fully realised. The Government hospitality and leisure grant helped us to plug the financial gap so thankfully we did not have to consider closing the charity down. This was followed 6 months later by the Government cultural recovery fund to which we applied and were successful. This gave us the opportunity to ensure we could re-open safely following Covid secure guidelines and that we remained open beyond March 2021.

A great emphasis was placed on development and professional consultation which built a foundation for sustainability and resilience. A new website design was beginning to formulate with a vision for on site refurbishments and digital outreach. New working methods within a covid-secure environment were incorporated into everyday practise and slowly we were able to see a way forward.

Thankfully we are still here however we had to begin to pick up the pieces left broken from the effects the pandemic had on our beneficiaries and their families. When our young people returned to on-site sessions, you could see, first-hand, a huge decrease in their confidence and self-esteem. Children had been out of school for months and the effects were sad to see. After a couple of months of regular on site work we began to see a turn around as confidence for young people grew and their social skills improved. Adults adapted better than young people to digital sessions but similar deteriorations were observed for our adult beneficiaries returning to onsite provision possibly for a variety of factors spanning financial impacts through to social and emotional loss. Unfortunately some of our most medically vulnerable members were too worried to start attending on-site again and sessions for those adults with multiple and complex needs were stopped for fear of transmission.

The year has been very difficult however we found the resilience and strength to get us through and come out stronger than ever. We would like to take the opportunity to thank our funders for their support and the amazing NHS for all their hard work and dedication and too our brilliant staff and volunteers for uniting and mobilising to the challenge.

Page 4

Valley Community Theatre (Company limited by guarantee and not having share capital)

Report of the Directors (continued) for the Year Ended 31 March 2021

FINANCIAL REVIEW

Finances

Total incoming resources for the year amounted to £143,168. Of this £1,501 was unrestricted. The total expended resources were £114,566 of which £1,999 was unrestricted.

Reserves Policy

The Valley Community Theatre aims to maintain a 3 months operating reserve in place.

Statement of Directors’ responsibilities

Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the directors should follow best practice and:

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

PLANS FOR THE FUTURE

The Valley Community Theatre will continue to pursue its youth arts work and work with those with disabilities and barriers via both social and mainstream routes, subject to funding.

ON BEHALF OF THE BOARD:

P.Lodge Dated: 28[th] December 2021

Page 5

Valley Community Theatre (Company limited by guarantee and not having share capital)

Statement of Financial Activities (including Income and Expenditure Account) For the Year Ended 31 March 2021

Notes
Incoming resources from generated funds:
Voluntary income:
Grants received
2
Donations received
Incoming resources from
charitable activities:
Total incoming resources
Resources expended
Costs of generating funds:
Costs of generating voluntary income
3
Charitable activities
4
Governance costs
5
Total resources expended
6
Net incoming resources
- Net expenditure for the year
Gross transfers between funds
Net movement in funds
Total funds at 1 April 2020
Total funds at 31 March 2021		 Unrestricted
Funds
£
-
-
1,501
1,501
-
-
1,999		 Restricted
Funds
£
141,667
-
-
141,667
3,222
109,345
-		 Restricted
Funds
£
141,667
-
-
141,667
3,222
109,345
-		 2021
Total
Funds
£
141,667
-
1,501
143,168
186
109,345
1,999		 2020
Total
Funds
£
98,229
-
14,228
112,457
186
99,348
2,532
102,741
9,736
-
9,736
19,162
28,898

1,999
(498)
-		 112,567
29,100
-
114,566
28,602
-


(498)
7,041
6,543

29,100
21,857
50,957		 28,602
28,898
57,500

Movements in funds are disclosed in Note 13 to the financial statements.

DESIGNATED AND ENDOWMENT FUNDS

The charity had no designated or endowment funds in the year.

The notes form part of these financial statements.

Page 6

Valley Community Theatre (Company limited by guarantee and not having share capital)

Balance Sheet As at 31 March 2021

Notes
FIXED ASSETS:
Tangible assets
10
CURRENT ASSETS:
Cash at bank and in hand

CREDITORS:Amounts falling
due with one year
11

NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
RESERVES:
12
Unrestricted income funds – general
Restricted income funds		 2021
£

47,284
1,278


£		 £
11,494


46,006
57,500
57,500
6,543
50,957
57,500		 2020
£

17,427
3,158






 £
14,629
14,269
28,898
-
£28,898
7,041
21,857
£28,898



£

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for: (a) ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and (b) preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with FRS 102.

ON BEHALF OF THE BOARD:

………………………… – P. Lodge

Approved by the board on 28[th] December 2021

The notes form part of these financial statements

Page 7

Valley Community Theatre (Company limited by guarantee and not having share capital)

Notes to the Financial Statements for the Year Ended 31 March 2021

1. ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, the Companies Act 2006 and follow the recommendations of Statement of Recommended Practice applicable to charities.

Incoming resources

Incoming resources represent grants received from local and central government, via national and European urban regeneration schemes, fundraising activities and sundry receipts. All such income is recognised in full in the Statement of Financial Activities in the year in which they are receivable.

Resources expended

Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT which cannot be recovered.

Fundraising and publicity costs comprise those costs incurred in raising funds for the charity and promoting its public profile.

Resources expended on charitable activities comprise all expenditure directly in undertaking the charity’s work to meet its charitable objectives.

Governance costs comprise costs incurred directly in governance arrangements relating to the general running of the charity.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost of each asset over its estimated useful life:

Fixtures & Fittings - 15% straight line Theatre Equipment - 15% straight line

Restricted funds

Restricted funds are funded by grants received for use on specified projects, identified as part of the original bid for such funding, and may not be used to finance any other projects or the general operations of the charity. Expenditure which meets these criteria is charged against restricted funds, together with a fair allocation of management and support costs.

Unrestricted funds

Unrestricted funds are grants and other incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds.

Page 8

Valley Community Theatre (Company limited by guarantee and not having share capital)

Notes to the Financial Statements (continued) for the Year Ended 31 March 2021

2. INCOMING RESOURCES FROM ACTIVITIES TO FURTHER THE CHARITY’S OBJECTS

Grants received
LCC
Arts Council
LCVS
Morrison Foundation
Netherley Youth Foundation
Covid JRS
Steve Morgan Foundation
National Heritage
Children in Need		 Unrestricted
Funds
£
-
-
-
-
-
-
-
-
-
-		 Restricted
Funds
£
49,643
54,000
-
-
6,593
9,348
22,083
-
-
141,667		 2021
Total
Funds
£
49,643
54,000
-
-
6,593
9,348
22,083
-
-
141,667		 2020
Total
Funds
£
19,081
9,825
7,975
15,040
-
-
24,583
3,950
17,775
98,229

3. COSTS OF GENERATING VOLUNTARY INCOME

Publicity and promotions
CHARITABLE ACTIVITIES
Staff costs (note 8)
Performance
Practitioners
Rent, rates and water
Light and heat
Telephone
Repairs & maintenance
Postage and stationery
Travel expenses
Catering
ICT equipment & maintenance
Insurance
Bank charges
Professional Fees
Depreciation		 Unrestricted
Funds
£
-
Unrestricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Restricted
Funds
£
3,222
Restricted
Funds
£
56,334
9,153
3,387
2,136
8,272
1,477
9,520
-
31
-
71
6,404
-
10,514
2,046
109,345		 2021
Total
Funds
£
3,222
2021
Total
Funds
£
56,334
9,153
3,387
2,136
8,272
1,477
9,520
-
31
-
71
6,404
-
10,514
2,046
109,345		 2020
Total
Funds
£
186
2020
Total
Funds
£
60,216
11,016
4,491
2,134
8,920
1,504
2,400
251
485
655
126
5,759
123
-
2,046

100,003

4. CHARITABLE ACTIVITIES

Page 9

Valley Community Theatre (Company limited by guarantee and not having share capital)

Notes to the Financial Statements (continued) for the Year Ended 31 March 2021

5. GOVERNANCE COSTS

5.
GOVERNANCE COSTS		 5.
GOVERNANCE COSTS
Unrestricted
Restricted
Funds
Funds
£
£
Telephone
260
-
Rent, rates and water
-
-
Accountancy
650
-
Depreciation
1,089
-
1,999
-
6.
TOTAL RESOURCES EXPENDED
Staff
Depreciation
Other
Costs (owned assets) Costs
£
£ £
Costs of generating voluntary
income
- -
3,222
Charitable activities
56,354 2,046
50,945
Governance costs
- 1,089
910
56,354 3,135
55,077
7.
NET INCOMING RESOURCES FOR THE YEAR
This is stated after charging:
Depreciation
8.
STAFF COSTS
Staff costs were as follows:
Wages and salaries
No employee received emoluments of more than £50,000.
The average weekly number of employees during the year, calculated on the
follows:
Fundraising and publicity
Charitable activities
Governance costs		 Unrestricted
Funds
£
260
-
650
1,089		 Restricted
Funds
£
-
-
-
-		 2021
Total
Funds
£
260
-
650
1,089		 2020
Total
Funds
£
266
377
800
1,089
2,532
2020
Total
Costs
£
186
100,003
2,532
100,721
2020
£
3,135
2020
£
60,216
equivale
2020
-
4
-

1,999
Depreciation
(owned assets)
£
-
2,046
1,089		 -
Other
Costs
£
3,222
50,945
910
1,999
2021
Total
Costs
£
3,222
109,345
1,999

56,354

3,135		 55,077
114,566

2021
£
3,135
2021
£
56,354

basis of full time
2021
-
4
-

The average weekly number of employees during the year, calculated on the basis of full time equivalents, was as follows:

No remuneration was paid to the directors, nor were any expenses incurred by directors in both years.

Page 10

Valley Community Theatre (Company limited by guarantee and not having share capital)

Notes to the Financial Statements (continued) for the Year Ended 31 March 2021

9. TAXATION

The charitable company is exempt from corporation tax on its charitable activities.

10. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS TANGIBLE FIXED ASSETS
Fixtures &
Fittings
COST OR VALUATION:
At 1 April 2020
22,431
Additions
-
At 31 March 2021
22,431
DEPRECIATION:
At 1 April 2020
17,350
Charge for the year
1,089
At 31 March 2021
18,439
NET BOOK VALUE:
At 31 March 2021
3,992
At 31 March 2020
5,081		 Theatre
Equipment		 Total
60,526
-
60,526
45,897
3,135
49,032
11,494
14,629

22,431
-


38,095
-
22,431
17,350
1,089

38,095
28,547
2,046

18,439

30,593

3,992
5,081


7,502
9,548

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR



Trade creditors

Social security and other taxes

Accrued expenses

 2021
£
-
628
650		 2020
£
132
624
1,600
1,278
3,156

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS

General
Funds
£
Tangible fixed assets
3,992
Current assets
2,551
Current liabilities
-
Net assets at 31 March 2021
6,543		 General
Funds
£
Tangible fixed assets
3,992
Current assets
2,551
Current liabilities
-
Net assets at 31 March 2021
6,543		 Restricted
Funds
£
7,502
44,733
(1,278)		 Total
Funds
£
11,494
47,284
(1,278)
57,500
6,543
50,957

Page 11

Valley Community Theatre (Company limited by guarantee and not having share capital)

Independent Examiner’s Report to the Trustees of Valley Community Theatre

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 43(2) of the Charities Act 1993 (the 1993 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the General Directions given by the Charities Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and the seeking of explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently, no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

Name: P Taylor Relevant professional qualification or body: ACIE Address: 74 Brook Vale Waterloo Liverpool L22 3YB Date: 29 December 2021

This page does not form part of the statutory financial statements

Page 12

Valley Community Theatre (Company limited by guarantee and not having share capital)

Profit and Loss Account for the Year Ended 31 March 2021

Income:
Grants received
Donations received
Other incoming resources
Expenditure:
Wages and salaries
Telephone
Postage and stationery
Publicity and promotions
Travel expenses
ICT equipment & maintenance
Performance costs
Practitioners
Repairs and equipment
Professional fees
Accountancy
Rates and water
Insurance
Light and heat
Catering expenses
Finance costs:
Bank charges
Bank interest
Depreciation:
Fixtures & fittings
Theatre equipment
NET LOSS		 2021
£
141,667
-
1,501
56,334
1,737
-
3,222
31
71
9,153
3,387
9,520
10,514
650
2,136
6,404
8,272
-		 2021
£
141,667
-
1,501
56,334
1,737
-
3,222
31
71
9,153
3,387
9,520
10,514
650
2,136
6,404
8,272
-		 £




143,168














 2020
£
£
98,229
-
14,228
112,457
60,216
1,770
251
186
485
126
11,016
4,491
2,400
-
800
2,511
5,759
8,920
655
99,586
12,871
-
-
-
1,089
2,046
3,135
£ 9,736


















-
-		 111,431

31,737

-
-

1,089
2,046
1,089
2,046
£		 -


3,135

28,602
£

This page does not form part of the statutory financial statements

Page 13