**Charity Registration No. 1151203** **Company Registration No. 07974406 (England and Wales)** ## **CULTURE WARRINGTON** ## **ANNUAL REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 MARCH 2021** ## **CULTURE WARRINGTON** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|E L Hutchinson|| |---|---|---| ||A F Appleton-Mitchell|| ||A Bucci|| ||M T Corfield|| ||M Banner|| ||L M Harrison|| ||D C Simons|| ||R K Welsh|| ||J L Wilkie|(Appointed 25 February| |||2021)| |**Charity number**|1151203|| |**Company number**|07974406|| |**Registered office**|Pyramid Arts Centre|| ||Palmyra Square South|| ||Warrington|| ||Cheshire|| ||WA1 1BL|| |**Auditor**|Mitchell Charlesworth LLP|| ||Glebe Business Park|| ||Lunts Heath Road|| ||Widnes|| ||Cheshire|| ||WA8 5SQ|| |**Bankers**|National Westminster Bank plc|| ||23 Sankey Street|| ||Warrington|| ||Cheshire|| ||WA1 1XG|| |**Solicitors**|Mills & Reeve LLP|| ||8th Floor|| ||1 New York Street|| ||Manchester|| ||M1 4AD|| ## **CULTURE WARRINGTON** ## **CONTENTS** ||**Page**| |---|---| |Chair's statement|1| |Trustees' report|2 - 11| |Independent auditor's report|12 - 15| |Statement of financial activities|16| |Balance sheet|17| |Statement of cash flows|18| |Notes to the financial statements|19 - 35| ## **CULTURE WARRINGTON** ## **CHAIR'S STATEMENT** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ This has been a year of significant disruption and upheaval. The COVID-19 pandemic has had a huge impact on our work which provides cultural opportunities for the people of Warrington to enjoy and participate in. Despite our venues being closed for much of the year, we have done our very best to be there for the people of the town and there remains much to celebrate and to be proud of. Our mission is to ensure everyone has the opportunity to experience varied, high quality cultural and creative experiences – and that these are as accessible as possible. During national lockdown social media platforms became a key way for us to present our work, providing residents with access to cultural experiences and programmes; retaining the essence of what we do as a cultural Charity. During the year we were fortunate to be awarded funding from Arts Council England’s (ACE) Cultural Recovery Fund. This enabled us to further develop our digital platform for Warrington Museum and Art Gallery (WMAG) - alongside supporting two large commissions for two local Warrington artists. Additional funding from the National Trust and National Lottery Heritage Fund enabled Culture Warrington to appoint 10 smaller commissions for nine local artists to create new work based upon Warrington’s heritage. This funding allowed our shielding communities’ access to our Museum collections; linking with the physical and real experience. One of the highlights of our year was celebrating the 125th birthday of Parr Hall, one of Warrington's iconic venues. Our initial plans for a big celebration were replaced with a digital campaign to mark the anniversary in a memorable way by reflecting back on the last 125 years. We reached out to people asking them to share with us their photos, videos, old tickets and personal memories of the best gigs and shows at Parr Hall from over the years. We also did a call out to local performers and artists to produce some videos wishing the venue a happy birthday. These were incorporated into a special online celebration - which included a series of videos demonstrating the wealth of entertainment history hosted at the venue and how much Parr Hall has meant to generations of Warringtonians. Throughout the year, staff at Culture Warrington have continued to play their part in supporting our local community. Some staff have been maintaining our venues and online programmes whilst others have been furloughed. Our furlough staff have joined various community groups to support those shielding, vulnerable or facing hardship during the pandemic; providing over 380 volunteer hours in our local community. We hope you will share our pride in all the amazing work delivered by our brilliant team over the year. The cultural and creative sectors have been one of the most affected sectors as a result of the pandemic. However, this has not diminished our ambition to ensure residents have access to the very best live entertainment and that their lives will be enriched by cultural opportunities. Our recovery planning aims to develop innovative strategies to expand our cultural offer into Warrington’s communities. Alongside this, there will be continued development and delivery of cultural activities at our existing venues. Together this will further build on our virtual presence in order to create new forms of cultural experiences. In addition, this will also allow us to re-examine our commercial approach to ensure we remain sustainable in these challenging times. As we step forward, I would like to thank everyone who has supported Culture Warrington throughout 2020/21; our staff, my colleague board members, volunteers and partners and in particular Warrington Borough Council. We look forward to our venues reopening and providing a warm welcome to all our visitors and I, like so many, cannot wait to enjoy a live performance once more. The future of Culture Warrington is incredibly exciting and we will emerge more vibrant than ever. .............................. **M Banner** Chair Dated: 25 November 2021 - 1 - ## **CULTURE WARRINGTON** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ The trustees present their report and accounts for the year ended 31 March 2021. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, 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)” (as amended for accounting periods commencing from 1 January 2016). ## **Managing Director's Statement** Although the COVID-19 pandemic presented challenges it has provided us with an opportunity to deliver our programmes in a different way and expand our skill set. In 2020/21 with our doors closed to the public for long periods during the year, with the majority of our staff furloughed and with limited scope to deliver our traditional services on our usual scale - we have innovated, we have experimented and we have delivered. We have found new ways of engaging with audiences through our online programmes. To do this we further developed our partnerships with local groups such as Creative Remedies, Ludovico Studio and Not too Tame. Alongside our own program, this partnership working extended our digital offer to include virtual classes in music, photography and art; alongside theatre and drama performances such as the online mini-series “Ah, the classic online purchase fail!” and a series of monologues which were adaptations from material unearthed by our own Archives Team. Whenever the national restrictions enabled it, a huge team effort was required to restore COVID-19 secure access to our buildings – ensuring the required new systems, processes and safety measures required were in place. The advice and support provided by sector leads throughout this period has been invaluable and our COVID-19 secure measures were endorsed by Culture Warrington being awarded the “We’re Good To Go” kitemark by Visit Britain. This success could not have been achieved without the hard work of the teams at both venues. The project team has continued to progress plans as part of the Pyramid Arts Centre capital re-development project. This project aims to diversify and improve the quality of Culture Warrington’s offer in the town centre by transforming it into a high quality facility that is a visitor destination in its own right. Work with key partners will assist in building a new engagement programme that is representative of its community – one that is focused on participation and engagement, talent development and education and creative pathways. It’s an exciting project which will provide a vibrant environment where our communities can experience excellence in the arts as well as creating a dynamic space for creatives to create new work across all art forms. This year’s report celebrates creative thinking. It shows how we have maintained a vibrant digital programme, identified new ways to inform and delight audiences through digital events which has extended the reach of our offer to new and existing audiences. The dedication and commitment shown by all the team at Culture Warrington is reflected throughout the report. I am extremely grateful to everyone who has helped us get through this challenging year, I would especially like to thank our Board of Trustees whose support and advice has proved more valuable than ever this year despite the difficulties of not meeting in person. Whilst for the most part, we have missed enjoying being together with friends and family at performances, classes, exhibitions and events, it has brought home how important these things are to us and how much we are looking forward to being back in our favourite venues very soon. Emma Hutchinson (Managing Director) - 2 - ## **CULTURE WARRINGTON** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **Public benefit** The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Objectives and activities** The objectives of the charity, as set out in the Articles of Association are: - To advance education of and promote the arts, culture, heritage and science, in particular through providing and maintaining a museum, art gallery and concert hall; - To promote community participation in healthy recreation in particular by the provision of facilities for the playing of amateur sport; - The provision of or assistance in the provision of facilities for recreation or other leisure time occupation in the interest of social welfare such facilities being provided to the public at large save that special facilities may be provided to persons who by reason of their youth, age, infirmity or disability, poverty or social or economic circumstances may have need of special facilities and services. Culture Warrington was formed in May 2012 as the lead organisation to deliver Arts, Heritage and Events in Warrington, and encompasses three venues, Pyramid, Parr Hall and Warrington Museum & Art Gallery. As well as operating these venues Culture Warrington programmes a range of events and festivals. Culture Warrington operates the Museum, Pyramid and Parr Hall on 25 year leases from Warrington Borough Council at a peppercorn rent as part of the management agreement to deliver services. It is impractical to assign a separate rental value to the buildings. - 3 - ## **CULTURE WARRINGTON** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **Highlights of our work** Throughout the pandemic and the closure of our venues we have worked to continue to deliver cultural programmes for our audiences online. When restrictions allowed us to reopen our venues to the public they were made COVID-19 secure in line with Government guidance and operated on reduce opening hours. ## Pyramid Arts Centre and Parr Hall Although Pyramid Arts Centre had to remain closed for large parts of the year, from 20th July the whole building hosted the Little Superstars Summer Club for children. This was a six-week club offering much needed childcare and activities for children throughout the summer holiday period and featured a programme of multi-sport, sessions and activities. Pyramid Arts Centre reopened to the public from 7th September - with additional measures in place for our customers and staff. A reduced programme of classes and workshops were available including life drawing, ballet, yoga, creative remedies workshops and Ludovico acting class and commercial dance. Our opening plan has a strict cleaning regime in place and we operate at a reduced capacity to allow for the appropriate social distancing to be implemented. From 31st October, as a result of additional tier 3 restrictions for Warrington, Pyramid was required to close its doors again until the New Year. In line with the new vision for the Pyramid, when restrictions allowed, free studio hire of rooms at the venue was offered to local artists to support them to create, rehearse, test, and collaborate during COVID-19. Throughout 2020/21 we have offered free studio space to Warrington based visual artists to create new work, most recently Tina Ramos Ekongo used the space in preparation for her upcoming solo exhibition in the autumn. Although all events due to take place at Parr Hall were cancelled, from December 2020 the hall was used weekly by the Coroners Court to hold Coroner Court sessions. Throughout national lockdowns the team took the opportunity to make some technical improvements to Parr Hall including the installation of CAT6a and CAT5e cabling within the building. The cable installation will enable the team to send data to the various technical points throughout the venue and will be a great benefit to touring shows visiting Parr Hall. ## Warrington Museum and Art Gallery (WMAG) Our museum had to adapt swiftly to the changing situation in 2020/21. We introduced a one-way system throughout the building, frequent hand sanitising stations, Track and Trace station and COVID-19 safety signage. To ensure visitor numbers to the venue were managed safely we introduced a new online booking system allowing visitors to pre-book their visit in advance. Our COVID-19 safety measures were publicised with a video outlining what to expect when visiting WMAG. The video was shared on social media and in the local press, Warrington Guardian. In June WMAG was awarded VisitBritain’s kitemark “We’re Good To Go”. The kitemark is an industry standard and supporting mark that certifies services can demonstrate that they are adhering to the respective Government and public health guidance, have carried out a COVID-19 risk assessment and check they have the required processes in place. To mark the 75thanniversary of VJ Day, WMAG welcomed two local artists as they took part in 'Knitting for Victory'. This was commissioned by Warrington Borough Council as part of Warrington’s Time Machine festival which celebrates the town’s past, present and future. Over the summer the two artists, Marie Jones and designer Rosalie Wood, invited the Warrington community to design their own letterforms using a template inspired by the objects around them. These designs were then knitted live in WMAG gallery and incorporated into a celebratory banner displayed at WMAG. - 4 - ## **CULTURE WARRINGTON** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ As part of the Time Machine festival WMAG hosted Steve Guinness’ intricately crafted Lego replica of Warrington’s iconic Golden Gates as part of the Heritage Open Days festival. The exhibition was supported by an online Q&A session with creator Steve and blogs by the museum team. A fantastic impact on the Charity’s online offer during 2020/21 was the launch of WMAG’s new Digital Programme. Our museum posts presented a range of free cultural content. This included podcasts, classes, performances, '#OnThisDay' posts, '#MyLocaLMuseums' posts and crafternoon activities. In addition, there were online exhibitions and online talks such as ‘Friday art day’ where the team presented a video showcasing their favourite pieces in the museum’s collections. Our Digital Advent Calendar campaign featured WMAG’s collections which were used to develop an interactive advent calendar. This was a great success - reaching 5,319 unique users and generating 1,842 engagements on Facebook over the month. Twitter received 24,292 impressions and 406 engagements. A new exhibition at WMAG by international award-winning artist, Susan Stockwell, was installed in October. The exhibition explored the hidden stories behind the museum’s eclectic and wide-ranging collections. The exhibition which was titled ‘ _Hidden Histories, Untold Stories’_ highlighted the museum’s role as a cultural collector and storyteller; bringing to life some of the untold stories behind our 200,000 objects. Sadly, due to national lockdowns, we were forced to close Susan’s exhibition early. However, we are delighted to confirm that her exhibition will return in 2022. ## Warrington Contemporary Arts Festival The ten-year anniversary of the Warrington Contemporary Arts Festival (WCAF20) Open was celebrated in 2020. The exhibition invited applications from across the whole spectrum of contemporary arts to include sculpture, painting, print, collage, photography, installation, dance, spoken word, performance and film. To encourage as many entries as possible from artist and collectives the boundary for submissions was extended to within a 60-mile radius of Warrington - reaching as far as Sheffield, Lancaster, Llandudno, and Wolverhampton. Application fees were waived to help support the creative community during the COVID-19 pandemic; as a result 441 submissions were received from throughout the North West. The WCAF20 Open Exhibition was displayed at Warrington Museum & Art Gallery. Funding from ACE enabled us to commission local artist and past winner of the Open Exhibition, Marie Jones, to coordinate and guest curate this year’s open competition. We commissioned Prism Studios and Ludovico Studios to create a film celebrating the 10th Open exhibition. This year’s winners reflect the diverse submissions as part of WCAF20; - Tara Collect: Textiles artist submitted 3 textile banners linked to high street stores. Tara won the £1,000 cash prize - Hope Strickland: Visual anthropologist submitted _Home Soon Come_ a film that sits between past and present, with an emphasis on memory-placing through the people around us and what it means to find ourselves at home. Hope won the solo show in WCAF21 and £1,000 show fees - Lauren Tucker: dance and digital artist submitted, _Neverland_ a wonderfully imaginative performance piece. Lauren won a 2021 residency at Pyramid Arts Centre and _Neverland_ will be presented as part of WCAF21 Innovative thinking meant the WCAF20 programme enjoyed another successful year - despite of COVID-19 restrictions. The team focused on a program of digital posts and despite the different approach the festival proved to be a huge success. - 5 - ## **CULTURE WARRINGTON** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## Education Programme Culture Warrington’s Education Programme was refreshed and redeveloped throughout 2020/21 to support remote access to our collections by schools. A new hybrid programme was introduced including digital workshops for schools to use in the classroom, COVID-19 safe school visits to the Museum, 1-1 and small group culture clinic support for teachers, online teacher CPD and outreach sessions delivered in local schools. ## Heritage & Archives Services Culture Warrington’s Heritage and Archives Team continued to champion the Charity’s heritage offer across the Borough. As part of the national Heritage Open Days festival in September Culture Warrington produced a _Digital Town Centre Heritage Trail_ . The new downloadable resource provided users with free access to historical information and photographs relating to some of the town’s key heritage venues; allowing audiences to access Warrington’s heritage remotely from any location with internet access. In September WMAG’s new mobile app was launched. This has enabled people to engage with our museum and its remarkable collections in new and exciting ways. The app uses technologies such as augmented reality to take users on an exciting journey through the full expanse of its galleries; from tales from the Triassic era to Warrington war stories and stunning exhibitions of both historic and contemporary art. ## Community Enrichment / Outreach As a cultural Charity a key part of our offer is to develop opportunities for community engagement across the town and offer cultural experiences for all ages and abilities. Our aim is to make culture more accessible by providing activities across the town. To achieve this we are continuing to develop our outreach offer. It wouldn’t be Christmas without our annual panto! With the pandemic restriction in place we commissioned local theatre company, Community Objectives, to produce a COVID-19 safe, 2 person pantomime titled ‘ _Handsome and Dettol_ !’ The pantomime was offered free to Warrington schools throughout October to December and 54 shows were performed to over 1,890 primary school children. As part of a project by Manchester's Castlefield Gallery our Cultural team engaged with “ _School of the Damned_ ” on their exhibition titled _'Coming Soon'_ . The team at Culture Warrington supported the art collective through consultation and installation of the exhibition in a former retail building in the town centre shopping precinct. - 6 - ## **CULTURE WARRINGTON** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **Our Achievements** Number of customers who participated in Culture Warrington activities in the last 12 months – 16,283 The number of people who chose to visit the Parr Hall 2020/21 – 290 The number of people who participated in activities at Pyramid Arts Centre– 2,421 Number of people engaged in Culture Warrington’s outreach and engagement activities – 5,000 Number of people visiting Warrington Museum and Art Gallery – 6,089 Number of Archive Search Room visits– 115 Number of archive enquiries – 411 Number of documents access in the archive service -1,126 Parr Hall hosted 20 hires throughout 2020/21 Pyramid Arts Centre was hired 38 times during 2020/21 for programmed events classes Pyramid Arts Centre supported 75 community based class bookings Number of volunteer hours during 2020/21 – 537 Number of staff employed by Culture Warrington – 69 (end of March 2021) Number of volunteer hours Culture Warrington employees have worked in the local community - 383 Number of Twitter followers at the end of March 2021 – 22,009 Number of Facebook likes at the end of March 2021 – 19,419 Number of people engaged in formal education outreach sessions– 2,368 56 days training delivered to employees £ 444,302 spend in the local economy ## **Looking forward** Culture Warrington is always looking at ways to inspire people and create opportunities for the residents of Warrington to access cultural activities. Here is a glimpse of our plans for 2021/22; - We look forward to the reopening of all our venues and delivering our exciting autumn programme - Essential building work on the museum roof will create an opportunity for us to trial a pop-up Museum and Library situated within the heart of the town’s main shopping centre - Our Education Team are developing a series of outreach workshop and downloadable website resources based on our museum collections to be available to Warrington schools - Culture Warrington will be part of the 2021 Abandon Normal Devices (AND) festival - Potential use of our venue as a location within a BBC sitcom - 7 - ## **CULTURE WARRINGTON** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ - Installation of our10 public art commissions which were delayed due to COVID-19 - Delivery of an exciting WCAF21 programme - Development of a design brief and business case to progress our vision to redevelop Pyramid Arts Centre The team at Culture Warrington have exciting plans for 2021/22 and as we look forward to our programmes resuming our focus will be to use engagement in our cultural activities to help transform peoples wellbeing and to reach out to new and wider audiences. ## **Financial review** In the year ended 31 March 2021 Culture Warrington recorded a surplus of £355,242 (2020: deficit of £76,828), prior to actuarial losses from the pension scheme, from incoming resources of £1,994,080 (2020: £2,904,614). After taking into account the actuarial losses there was an overall reduction in funds of £800,758 to £151,890 as at 31 March 2021. The cash position remains at a healthy level with cash levels being at £1,599,445 as at 31 March 2021 (£1,042,670 at 31 March 2020). Although our venues have had to largely close to the public due to COVID-19 restrictions, the strong financial position at the start of the year, along with continued support from Warrington Borough Council, grants from Arts Council England, and national coronavirus financial support schemes have enabled the charity to remain financially stable. We have worked to reschedule events for when we are able to reopen and have a strong programme ready to deliver for the forthcoming year. ## **Reserves policy** The purpose of the reserves policy for Culture Warrington is to ensure the stability of the ongoing operations of the charity. The charity’s unrestricted reserves are intended to provide an internal source of funds for situations such as a sudden increase in costs, significant unbudgeted costs, or unanticipated loss in income or funding. The unrestricted reserves may also be used for investment in infrastructure. The unrestricted reserves are not intended to replace a permanent loss of funds but may be used to implement actions to deal with the impact of such a loss. The target minimum unrestricted reserve (excluding reserves relating to the pension scheme) is equal to one month’s average operating costs – currently this would equate to £200,000 – and the trustees will seek to maintain reserves at this level. The trustees will balance the growth in unrestricted reserves to the target level with investment into projects which extend the reach of the cultural offer in Warrington by splitting any annual surpluses equally between these two objectives. - 8 - ## **CULTURE WARRINGTON** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **Structure, governance and management** Culture Warrington is a charitable company with Articles of Association and governed by a Board of Trustees. The Board of Trustees has previously met formally four times a year but has been meeting virtually on a monthly basis through the year to monitor the situation closely during the COVID-19 pandemic. Culture Warrington is constituted as a limited company by guarantee without share capital. The trustees are directly elected by the Trust. Culture Warrington agreed with Warrington Borough Council that the Council is entitled to nominate two observers. The Senior Management Team, comprising the Managing Director, Finance Director, Business Development Director, and People Performance and Resources Director, attend all Board meetings. The Managing Director, Finance Director, Business Development Director, and People Performance and Resources Director are employed by LiveWire (Warrington) CIC, and a management support services contract is in place detailing the areas of provision Culture Warrington receives from LiveWire (Warrington) CIC. One trustee is currently a member of both Warrington Cultural Trust and LiveWire (Warrington) CIC Boards. Each new trustee attends an induction day held by the Senior Management Team. Trustees are presented with a pack of information about Culture Warrington and their roles and responsibilities as a trustee; additional training is provided if required. During the year the Trust suspended the operation of subcommittees of the Board, and all business was carried out by the Board. The Trust intends to review the operation of subcommittees (Finance, Audit and Risk Committee, Strategic Planning and Performance Committee, Human Resource and Remuneration Committee, and Governance and Nominations Committee) as operations return to normal following the pandemic. ## **Risk management** The trustees have considered the major risks to which the Charity is exposed and satisfied themselves that systems or procedures are established in order to manage those risks. Business cases for new investment and activity are reviewed and approved by the Senior Management Team and the risk element plays a key part in the final decision. A strategic risk register is also in place and is reviewed by the Board on a quarterly basis. It identifies those risks, and recognises actions and responsibilities for mitigating them. The risk management process is on-going and reviewed regularly at all levels throughout the organisation and reported to the Finance, Audit and Risk Committee. ## **Going concern** The COVID-19 pandemic has had a significant effect our ability to deliver a cultural programme during 2020/21. The directors have considered the effect of the pandemic on the financial position of the charity. In view of the current financial position, the funding support available, and the continued support of our commissioners, Warrington Borough Council, the directors consider it appropriate to prepare accounts on a going concern basis. - 9 - ## **CULTURE WARRINGTON** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **Structure, governance and management** ## **Trustees** The trustees, who are also the directors for the purpose of company law, and who served during the year were: E L Hutchinson A F Appleton-Mitchell A Bucci M T Corfield M Banner L M Harrison A Proctor (Resigned 25 October 2021) D C Simons S Walsh (Resigned 23 April 2020) R K Welsh C Wilcock (Resigned 17 October 2021) J L Wilkie (Appointed 25 February 2021) None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up. As part of the arrangements with Warrington Borough Council, the Council nominated two observers that attend Board meetings. The Council observers during the year were Councillor H Cooksey and Councillor M McLaughlin. - 10 - ## **CULTURE WARRINGTON** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **Statement of Trustees' responsibilities** The trustees, who are also the directors of Culture Warrington for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare accounts 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 accounts, 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 accounts; and - prepare the accounts 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 accounts 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. ## **Auditor** The auditor, Mitchell Charlesworth LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006. ## **Disclosure of information to auditor** Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The Trustees' report was approved by the Board of Trustees. ## **M Banner** Trustee Dated: 25 November 2021 - 11 - ## **CULTURE WARRINGTON** ## **INDEPENDENT AUDITOR'S REPORT** ## **TO THE TRUSTEES OF CULTURE WARRINGTON** ## **Opinion** We have audited the financial statements of Culture Warrington (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including 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: - give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 charity 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. - 12 - ## **CULTURE WARRINGTON** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES OF CULTURE WARRINGTON** ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of our audit: - the information given in the Trustees' report, which includes the directors' report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors' report included within the Trustees' report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Trustees' 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: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a strategic report. ## **Responsibilities of trustees** As explained more fully in the statement of Trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. 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. - 13 - ## **CULTURE WARRINGTON** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES OF CULTURE WARRINGTON** ## **Extent to which the audit was considered capable of detecting irregularities, including fraud** We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. ## **Identifying and assessing potential risks related to irregularities** In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: - the nature of the industry and sector, control environment and business performance; - the charity's own assessment of the risks that irregularities may occur either as a result of fraud or error; - the results of our enquiries of management and members of the Board of Trustees of their own identification and assessment of the risks of irregularities; - any matters we identified having obtained and reviewed the charity’s documentation of their policies and procedures relating to: - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and - the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: (i) The presentation of the charity's Statement of Financial Activities, (ii) the charity's accounting policy for revenue recognition (iii) the overstatement of salary and other costs (iv) the assumptions used in the calculation of the valuation of the surplus or deficit on the defined benefit pension scheme and the movements for the year. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and the Statement of Recommended Practice - 'Accounting and Reporting by Charities' issued by the joint SORP making body . In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity’s ability to operate or to avoid a material penalty. These included the Data Protection Regulations. - 14 - ## **CULTURE WARRINGTON** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES OF CULTURE WARRINGTON** ## **Audit response to risks identified** As a result of performing the above, we identified the presentation of the charity's Statement of Financial Activities, revenue recognition and overstatement of wages and other costs as the key audit matters related to the potential risk of fraud. The key audit matters section of our report explains the matters in more detail and also describes the specific procedures we performed in response to those key audit matters. In addition to the above, our procedures to respond to risks identified included the following: - reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements; - enquiring of management and members of the Board of Trustees concerning actual and potential litigation and claims; - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; - reading minutes of meetings of those charged with governance and reviewing correspondence with relevant authorities where matters identified were significant; - in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. ## Mitchell Charlesworth **Philip Griffiths (Senior Statutory Auditor) for and on behalf of Mitchell Charlesworth LLP** 25 November 2021 **Chartered Accountants Statutory Auditor** Glebe Business Park Lunts Heath Road Widnes Cheshire WA8 5SQ - 15 - ## **CULTURE WARRINGTON** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**Unrestricted**
**funds**
**2021**
**Notes**
**£**
**Income from:**
Donations and legacies
**3**
566,952
Charitable activities
**4**
1,360,456
Investments
**5**
14,696
**Total income**
1,942,104
**Expenditure on:**
Charitable activities
**6**
1,581,144
Gross transfers between
funds
-
**Net income/(expenditure) for**
**the year/**
**Net incoming/(outgoing)**
**resources**
360,960
**Other recognised gains and losses**
Actuarial (loss)/gain on
defined benefit pension
schemes
(1,156,000)
**Net movement in funds**
(795,040)
Fund balances at 1 April
2020
897,131
**Fund balances at 31**
**March 2021**
102,091|**Restricted**
**Total**
Unrestricted
**funds**
funds
**2021**
**2021**
2020
**£**
**£**
**£**
-
566,952
-
51,976
1,412,432
2,821,792
-
14,696
9,230
51,976
1,994,080
2,831,022
57,694
1,638,838
2,890,656
-
-
216
(5,718)
355,242
(59,418)
-
(1,156,000)
484,000
(5,718
)
(800,758)
424,582
55,517
952,648
472,549
49,799
151,890
897,131|Restricted
funds
2020
**£**
-
73,592
-
73,592
90,786
(216)
(17,410)
-
(17,410)
72,927
55,517|Total
2020
**£**
-
2,895,384
9,230| |---|---|---|---| ||||2,904,614| ||||2,981,442| ||||-
(76,828)
484,000
407,172
545,476
952,648| 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. - 16 - ## **CULTURE WARRINGTON** ## **BALANCE SHEET** ## _**AS AT 31 MARCH 2021**_ |**2021**
**Notes**
**£**
**Fixed assets**
Tangible assets
**10**
**Current assets**
Stocks
**11**
1,059
Debtors
**12**
135,091
Cash at bank and in hand
1,599,445
1,735,595
**Creditors: amounts falling due within one**
**year**
**13**
(1,036,151)
Net current assets
**Total assets less current liabilities**
**Net assets excluding pension (liability)/surplus**
**Defined benefit pension (liability)/surplus**
**14**
**Net assets**
**Income funds**
Restricted funds
**15**
Unrestricted funds
Designated funds
**16**
14,093
General unrestricted funds
748,998
Pension reserve
(661,000)|**2020**
**£**
**£**
113,446
7,747
485,867
1,042,670
1,536,284
(1,348,927)
699,444
812,890
812,890
(661,000)
151,890
49,799
12,299
198,832
686,000
102,091
151,890|**£**
79,291
187,357| |---|---|---| |||266,648| |||266,648
686,000| |||952,648| |||55,517
897,131| |||952,648| The financial statements were approved and authorised for issue by the Trustees on 25 November 2021 M Banner **Trustee** **Company Registration No. 07974406** - 17 - ## **CULTURE WARRINGTON** ## **STATEMENT OF CASH FLOWS** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**Notes**
**Cash flows from operating activities**
Cash generated from operations
**19**
**Investing activities**
Purchase of tangible fixed assets
Interest received
**Net cash used in investing activities**
Finance lease interest
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2021**
**£**
(54,009)
696
-|**£**
610,088
(53,313)
-
556,775
1,042,670
1,599,445|**2020**
**£**
(8,405)
2,230
(899)|**£**
158,390
(6,175)
(899)
151,316
891,354
1,042,670| |---|---|---|---|---| - 18 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **1 Accounting policies** ## **Charity information** Culture Warrington is a private company limited by guarantee incorporated in England and Wales. The registered office is Pyramid Arts Centre, Palmyra Square South, Warrington, Cheshire, WA1 1BL. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. ## **1.2 Going concern** The COVID-19 pandemic has had a significant effect our ability to deliver a cultural programme during 2020/21. The trustees have considered the effect of the pandemic on the financial position of the charity. In view of the current financial position, the funding support available, and the continued support of our commissioners, Warrington Borough Council, the trustees consider it appropriate to prepare accounts on a going concern basis. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. - 19 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Expenditure** 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 a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under heading that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been included in support costs and allocated to activates on a basis consistent with the use of resources. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Plant and equipment 10% on cost Fixtures and fittings 20% on cost Computer equipment 20% on cost 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 net income/(expenditure) for the year. ## **1.7 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). ## **1.8 Stocks** Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. ## **1.9 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. - 20 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ **1 Accounting policies** **(Continued)** ## **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. ## _**Impairment of financial assets**_ Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year. ## _**Derecognition of financial assets**_ Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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. - 21 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **1 Accounting policies** **(Continued)** ## _**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. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. ## **1.11 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. ## **1.12 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice. The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred. The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in income/(expenditure) for the year. Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/(expenditure) in subsequent periods. The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme. ## **1.13 Leases** Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease. - 22 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **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. ## **3 Donations and legacies** ||**Unrestricted**|Total| |---|---|---| ||**funds**|| ||**2021**|2020| ||**£**|£| |Coronavirus Job Retention Scheme Grants|389,980|-| |Other Covid-19 support grants|176,972|-| ||566,952|-| - 23 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**4**
**Charitable activities**
Museum and Art gallery
Pyramid and Parr hall
Facility hire
Culture engagement
Marketing
Commissions
Education
Management fee
Analysis by fund
Unrestricted funds
Restricted funds
**For the year ended 31 March 2020**
Unrestricted funds
Restricted funds|**Cultural**
**engagement**
**£**
543
(1,000)
-
-
-
57,976
3,825
1,309,015
1,370,359
1,318,383
51,976
1,370,359
1,340,727
64,607
1,405,334|**Museum Venue & events**
**management**
**£**
**£**
305
238
-
19,365
-
14,917
1,034
6,214
-
-
-
-
-
-
-
-
1,339
40,734
1,339
40,734
-
-
1,339
40,734
9,002
1,472,063
-
8,985
9,002
1,481,048|**Total**
**2021**
**£**
1,086
18,365
14,917
7,248
-
57,976
3,825
1,309,015
1,412,432
1,360,456
51,976
1,412,432|**Total**
**2020**
**£**
9,191
1,183,123
242,157
112,989
497
16,055
22,357
1,309,015| |---|---|---|---|---| |||||2,895,384| |||||2,821,792
73,592| |||||2,895,384| ## **5 Investments** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2021**|2020| ||**£**|£| |Deposit account interest|696|2,230| |Net interest on defined benefit pension scheme|14,000|7,000| ||14,696|9,230| - 24 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **6 Charitable activities** |Staff costs
Depreciation and impairment
Premises expenditure
Artists and event fees
Spectrix charges
Telephone and computer
Printing and stationery
Advertising
Sundries
Purchases and stocks
Legal costs
Motor, travel and entertainment
Equipment hire
Interest
Carried forward|**Cultural**
**events**
**2021**
**£**
153,757
3,959
8,689
32,767
-
10,664
552
1,000
264
-
-
28
-
1
211,681|**Museum**
**Venue and**
**Events**
**Management**
**2021**
**2021**
**£**
**£**
98,372
267,499
1,559
13,752
-
123,051
5,084
14,940
-
8,405
-
3,162
-
-
-
-
93,579
1,836
-
6,934
-
1,827
-
1,098
-
2,288
-
4,310
198,594
449,102|**Total**
**Cultural**
**2021**
**events**
**2020**
**£**
**£**
519,628
172,506
19,270
493
131,740
2,257
52,791
90,095
8,405
-
13,826
-
552
2,868
1,000
982
95,679
4,447
6,934
1,576
1,827
3,838
1,126
458
2,288
7,160
4,311
(592)
859,377
286,088|**Museum**
**Venue and**
**Total**
**Events**
**Management**
**2020**
**2020**
**2020**
**£**
**£**
**£**
104,059
322,380
598,945
1,559
9,526
11,578
490
273,985
276,732
3,814
613,271
707,180
-
21,146
21,146
-
3,166
3,166
-
221
3,089
-
70
1,052
94,677
43,899
143,023
4,269
105,392
111,237
-
30,662
34,500
71
430
959
-
28,165
35,325
-
14,842
14,250
208,939
1,467,155
1,962,182| |---|---|---|---|---| - 25 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**Charitable activities**
Brought forward
Share of support costs (see note 7)
Share of governance costs (see note 7)
**Analysis by fund**
Unrestricted funds
Restricted funds|**Cultural**
**events**
**2021**
**£**
211,681
231,326
4,886
447,893
404,643
43,250
447,893|**Museum**
**Venue and**
**Events**
**Management**
**2021**
**2021**
**£**
**£**
198,594
449,102
154,190
377,399
3,135
8,525
355,919
835,026
355,919
820,582
-
14,444
355,919
835,026|**Total**
**2021**
**£**
859,377
762,915
16,546
1,638,838
1,581,144
57,694
1,638,838|**Cultural**
**events**
**2020**
**£**
286,088
264,456
4,438
554,982
472,968
82,014
554,982|**(Continued)**
**Museum**
**Venue and**
**Total**
**Events**
**Management**
**2020**
**2020**
**2020**
**£**
**£**
**£**
208,939
1,467,155
1,962,182
169,250
570,406
1,004,112
2,681
8,029
15,148
380,870
2,045,590
2,981,442
377,963
2,039,725
2,890,656
2,907
5,865
90,786
380,870
2,045,590
2,981,442|**(Continued)**
**Museum**
**Venue and**
**Total**
**Events**
**Management**
**2020**
**2020**
**2020**
**£**
**£**
**£**
208,939
1,467,155
1,962,182
169,250
570,406
1,004,112
2,681
8,029
15,148
380,870
2,045,590
2,981,442
377,963
2,039,725
2,890,656
2,907
5,865
90,786
380,870
2,045,590
2,981,442| |---|---|---|---|---|---|---| |||||||2,981,442
2,890,656
90,786| |||||||2,981,442| ## **6 Charitable activities** - 26 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **7 Support costs** |**Support costs Governance**
**costs**
**£**
**£**
Staff costs
456,366
-
Depreciation
584
-
Advertising and literature
5,707
-
Professional fees
178,915
-
Telephone and computer
47,792
-
Other central support costs
59,054
-
Irrecoverable VAT
14,497
-
Audit fees
-
7,723
Legal and professional
-
8,823
762,915
16,546
Analysed between
Charitable activities
762,915
16,546|**2021**
**£**
456,366
584
5,707
178,915
47,792
59,054
14,497
7,723
8,823
779,461
779,461|**2020 Basis of allocation**
**£**
495,647 Time spent
669
42,676 Charitable activity levels
170,277 Operational staff costs
58,211 Device numbers
105,403 Operational staff costs
131,229 Charitable activity levels
6,325 Governance
8,823 Governance
1,019,260
1,019,260| |---|---|---| ## **8 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. - 27 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **9 Employees** ## **Number of employees** The average monthly number of employees during the year was: |Management and administration
Operational team
**Employment costs**
Wages and salaries
Social security costs
Other pension costs||**2021**
**Number**
4
56
60
**2021**
**£**
726,728
44,266
205,000
975,994|**2020**
**Number**
4
58| |---|---|---|---| ||||62| ||||**2020**
**£**
808,745
55,521
230,326| ||||1,094,592| The members of the senior management team are employed by Livewire (Warrington) CIC . There were no employees whose annual remuneration was £60,000 or more. ## **10 Tangible fixed assets** |**Tangible fixed assets**||||| |---|---|---|---|---| |**Cost**
At 1 April 2020
Additions
At 31 March 2021
**Depreciation and impairment**
At 1 April 2020
Depreciation charged in the year
At 31 March 2021
**Carrying amount**
At 31 March 2021
At 31 March 2020|**Plant and**
**equipment**
**£**
93,336
37,251
130,587
27,416
13,059
40,475
90,112
65,919|**Fixtures and**
**fittings**
**£**
23,606
470
24,076
14,022
2,408
16,430
7,646
9,584|**Computer**
**equipment**
**£**
51,837
16,288
68,125
48,049
4,388
52,437
15,688
3,788|**Total**
**£**
168,779
54,009| |||||222,788| |||||89,487
19,855| |||||109,342| |||||113,446| |||||79,291| - 28 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**11**
**Stocks**
Raw materials and consumables
**12**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income|**2021**
**£**
1,059
**2021**
**£**
61,439
-
73,652
135,091|**2020**
**£**
7,747
**2020**
**£**
448,456
20
37,391| |---|---|---| |||485,867| **13 Creditors: amounts falling due within one year** |Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2021**
**£**
52,158
182,761
46,329
754,903
1,036,151|**2020**
**£**
111,823
203,288
25,876
1,007,940| |---|---|---| |||1,348,927| ## **14 Retirement benefit schemes** ## **Defined benefit schemes** The charity's employees belong to the Local Government Pension Scheme (LGPS), which is managed by Cheshire Pension Fund. This is a multi-employer defined-benefit scheme. The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee-administered funds. The principal actuarial assumptions are as follows; |_Key assumptions_||| |---|---|---| ||**2021**|**2020**| ||**%**|**%**| |Discount rate|2.05|2.3| |Expected rate of increase of pensions in payment|2.8|1.8| |Expected rate of salary increases|3.5|2.5| - 29 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**14**|**Retirement benefit schemes**||**(Continued)**| |---|---|---|---| ||_Mortality assumptions_||| ||The assumed life expectations on retirement at age 65 are:||| |||**2021**|**2020**| |||**Years**|**Years**| ||Retiring today||| ||- Males|21.4|21.2| ||- Females|24.0|23.6| ||Retiring in 20 years||| ||- Males|22.4|21.9| ||- Females|25.7|25.0| ||Amounts recognised in the profit and loss account:||| |||**2021**|**2020**| |||**£**|**£**| ||Current service cost|205,000|231,000| ||Net interest on defined benefit liability/(asset)|(14,000)|(7,000)| ||Total costs|191,000|224,000| ||Amounts taken to other comprehensive income:||| |||**2021**|**2020**| |||**£**|**£**| ||Actual return on scheme assets|(868,000)|65,000| ||Less: calculated interest element|117,000|139,000| ||Return on scheme assets excluding interest income|(751,000)|204,000| ||Actuarial changes related to obligations|1,907,000|(688,000)| ||The amounts included in the balance sheet arising from the charity's obligations in||| ||respect of defined benefit plans are as follows:||| |||**2021**|**2020**| |||**£**|**£**| ||Present value of defined benefit obligations|6,590,000|4,413,000| ||Fair value of plan assets|(5,929,000)|(5,099,000)| ||Deficit/(surplus) in scheme|661,000|(686,000)| - 30 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**14**|**Retirement benefit schemes**|**(Continued)**| |---|---|---| ||Movements in the present value of defined benefit obligations:|| |||**2021**| |||**£**| ||Liabilities at 1 April 2020|4,413,000| ||Current service cost|205,000| ||Benefits paid|(79,000)| ||Contributions from scheme members|41,000| ||Actuarial gains and losses|1,907,000| ||Interest cost|103,000| ||At 31 March 2021|6,590,000| The defined benefit obligations arise from plans which are wholly or partly funded. |Movements in the fair value of plan assets:
Fair value of assets at 1 April 2020
Interest income
Return on plan assets (excluding amounts included in net interest)
Benefits paid
Contributions by scheme members
At 31 March 2021|**2021**
**£**
5,099,000
117,000
751,000
(79,000)
41,000
5,929,000| |---|---| - 31 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **15 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: |**Balance at**
**1 April 2019**
**£**
Numismatic
1,500
Geoblitz
1,111
Ready to borrow
9,796
Contemporary Arts
-
Weston Loan Programme
5,329
Colonel Edelsten Bequest
31,191
Meeting Point
14,000
Peter Rogerson Bequest
10,000
Local Growth Fund
-
72,927|**Movement in funds**
**Movement in funds**
**Income**
**£**
**Expenditure**
**£**
**Transfers**
**£**
**Balance at**
**1 April 2020**
**£**
**Income**
**£**
**Expenditure**
**£**
**Balance at**
**31 March 2021**
**£**
-
-
-
1,500
-
-
1,500
-
-
-
1,111
-
-
1,111
-
(1,069)
-
8,727
-
(1,128)
7,599
73,592
(73,376)
(216)
-
32,023
(32,023)
-
-
(4,046)
-
1,283
-
-
1,283
-
(4,795)
-
26,396
-
(4,918)
21,478
-
(7,500)
-
6,500
-
-
6,500
-
-
-
10,000
-
-
10,000
-
-
-
-
19,953
(19,625)
328
73,592
(90,786)
(216)
55,517
51,976
(57,694)
49,799|**Movement in funds**
**Movement in funds**
**Income**
**£**
**Expenditure**
**£**
**Transfers**
**£**
**Balance at**
**1 April 2020**
**£**
**Income**
**£**
**Expenditure**
**£**
**Balance at**
**31 March 2021**
**£**
-
-
-
1,500
-
-
1,500
-
-
-
1,111
-
-
1,111
-
(1,069)
-
8,727
-
(1,128)
7,599
73,592
(73,376)
(216)
-
32,023
(32,023)
-
-
(4,046)
-
1,283
-
-
1,283
-
(4,795)
-
26,396
-
(4,918)
21,478
-
(7,500)
-
6,500
-
-
6,500
-
-
-
10,000
-
-
10,000
-
-
-
-
19,953
(19,625)
328
73,592
(90,786)
(216)
55,517
51,976
(57,694)
49,799| |---|---|---| |||49,799| - 32 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ - **15 Restricted funds** **(Continued)** **Numismatic** - £1,500 was received from the Northwest Museum Development Fund to improve care of and accessibility to our Numismatic collection. **SIF** – Future Proof Museums is a national project being developed by the AMA (Arts Marketing Association) funded by Arts Council England’s Museum Resilience grant. The programme is designed to enable museums to become more resilient organisations, exploring how to change, adapt, influence and remain relevant to an ever-changing external environment. **Geoblitz** - This grant via Leeds Museums is to develop and/or promote engagement with the Geology collection at Warrington Museum & Art Gallery. **Ready to Borrow** - This grant from ACE is to enable Culture Warrington to buy equipment that provides a suitable and stable environment so that we are able to borrow paintings from National Museums. **Contemporary Arts** - This is funding from ACE and Warrington Borough Council to fund the Warrington Contemporary Arts Festival 2017-18. **Weston Loan Programme** - This grant is to cover costs relating to borrowing three paintings from National Museums Liverpool, including conservation work, transport, School of Art activity programme of artist workshops and seminars, exhibition guides, additional Front of House staff. This programme will run from May to December 2018. **Colonel Edelsten Bequest** - This grant from the Colonel Edelsten Bequest is to fund an upgrade of equipment to improve the experience for users of Culture Warrington. **Meeting Point** - This funding from Arts and Heritage is to enable Culture Warrington to work with and commission a local artist to produce a piece of contemporary art, and to explore showing contemporary art within a heritage context. The commissioned piece will form part of the Warrington Contemporary Arts Festival for 2019. **Peter Rogerson Bequest** - This is legacy funding from the estate of local history librarian, Peter Rogerson, to be invested in developing the Charity’s Archive Service. **Local Growth Fund** - this funding is provided by the Cheshire and Warrington Local Enterprise Partnership to make the existing Warrington Museum & Library building and the network of community-based libraries into hubs for the delivery of digital programmes and workshops for coding clubs, schools, local businesses and digital creatives in the community. - 33 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **16 Designated funds** The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes: |**Balance at**
**1 April 2019**
**£**
Car park fund
10,505
10,505|**Transfers**
**£**
**Balance at**
**1 April 2020**
**£**
**Transfers**
**£**
**Balance at**
**31 March 2021**
**£**
1,794
12,299
1,794
14,093
1,794
12,299
1,794
14,093|**Transfers**
**£**
**Balance at**
**1 April 2020**
**£**
**Transfers**
**£**
**Balance at**
**31 March 2021**
**£**
1,794
12,299
1,794
14,093
1,794
12,299
1,794
14,093| |---|---|---| |||14,093| The car park fund represents contributions to car parking by staff which the trustees have agreed to set aside to cover any future repair costs. ## **17 Analysis of net assets between funds** ||**Unrestricted**|**Restricted**|**Total **|Unrestricted|Restricted|Total| |---|---|---|---|---|---|---| ||**2021**|**2021**|**2021**|2020|2020|2020| ||**£**|**£**|**£**|£|£|£| |Fund balances at 31||||||| |March 2021 are||||||| |represented by:||||||| |Tangible assets|84,932|28,514|113,446|44,169|35,122|79,291| |Current assets/(liabilities)|678,159|21,285|699,444|166,962|20,395|187,357| |Provisions and||||||| |pensions|(661,000)|-|(661,000)|686,000|-|686,000| ||102,091|49,799|151,890|897,131|55,517|952,648| ## **18 Related party transactions** During the current and prior year Culture Warrington utilises the key management personnel and resources of Livewire (Warrington) CIC a company registered in England and Wales, company number 07972958. A recharge is incurred from Livewire (Warrington) CIC for the use of these resources. - 34 - ## **CULTURE WARRINGTON** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**19**|**Cash generated from operations**|**2021**|**2020**| |---|---|---|---| |||**£**|**£**| ||(Deficit)/surpus for the year|355,242|(76,828)| ||Adjustments for:||| ||Finance lease interest|-|899| ||Investment income recognised in statement of financial activities|(696)|(2,230)| ||Depreciation and impairment of tangible fixed assets|19,854|12,247| ||Difference between pension charge and cash contributions|191,000|165,000| ||Movements in working capital:||| ||Decrease in stocks|6,688|9,495| ||Decrease/(increase) in debtors|350,776|(348,476)| ||(Decrease)/increase in creditors|(312,776)|398,283| ||**Cash generated from operations**|610,088|158,390| ## 20 **Analysis of changes in net funds** The charity had no debt during the year. - 35 -