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2020-08-31-accounts

Registered Number: 08447600 (England and Wales)

MGCFUTURES LTD

REGISTERED CHARITY NO. 1153534

TRUSTEES’ REPORT

AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

MGCFUTURES LTD

CONTENTS

Page
Legal and Administrative Information 1
Trustees’ Report 2 - 4
Independent Examiner’s Report 5
Statement of Financial Activities 6
(including the income and expenditure account)
Balance Sheet 7
Notes to the Financial Statements 8 - 11

MGCFUTURES LTD

LEGAL AND ADMINISTRATIVE INFORMATION

Charity Status Registered in England and Wales Website Address mgcfutures.com Charity Number 1153534 Registered Office Fourth Floor Wyndham’s Theatre Charing Cross Road London WC2H 0DA Registered Number 08447600 Trustees and Directors Anthony Pins Jeremiah Healy Kate Morley Sir Ralph Waller KBE Paule Constable (appointed 26 March 2020) Joan Major (appointed 3 March 2021) Accountants Nyman Libson Paul Chartered Accountants Regina House 124 Finchley Road London NW3 5JS Independent Examiner Peta Parker FCA Lewis Golden LLP 40 Queen Anne Street London W1G 9EL

MGCFUTURES LTD

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of MGCfutures Ltd (the company) for the year ended 31 August 2020.

The Trustees confirm that the financial statements have been prepared in accordance with the accounting policies set out on pages 8 and 9 and with applicable United Kingdom accounting standards, current statutory requirements, the Charities Act 2011, the Companies Act 2006, 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), the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) and the Charity’s governing document.

Legal and administrative information, including the Trustees who served during the year are set out on page 1. Christopher Oram served as a Trustee during the year and resigned on 9 January 2020.

Objectives and Activities

a. Policies and objectives

The principal object of the company is to promote, maintain, improve and advance the education and appreciation of the Dramatic Arts for the benefit of the public, in particular but not exclusively, through the provision of participatory activities, training and access to the work of Michael Grandage and other leading arts providers.

MGCfutures’ mission is to guide and support the theatre-makers and theatre-goers of the future. This is achieved through:

The Trustees confirm that they referred to the guidance contained in the Charity Commission’s general guidance on public benefit by reviewing the charity’s aims and objectives and in planning its activities for the year.

Achievements and Performance

a. Going concern

The Covid-19 pandemic continues to have a significant impact on the theatre industry as the country is still currently subject to restrictions, including social distancing and all theatres and other public venues remain closed. Notwithstanding this, the charity has since the balance sheet date secured substantial donations which will enable it to be able to continue to support future talent after the Covid-19 restrictions are lifted, and the next round of bursaries, expected to total c. £120,000, is under way.

b. Review of activities

MGCfutures awarded bursaries to the value of £63,270 in the year ending 31 August 2020. These awards were payments in respect of the applications received in the previous financial year (July 2019).

Extensive plans were in preparation for a fifth anniversary bursary programme when the UK went into lockdown in March 2020 due to the Covid-19 pandemic.

Future programmes were put on hold for six months and the Charity’s sole member of staff was placed on furlough during this time. Returning to work in November, the Charity was successful in securing a substantial donation of £300,000 from the Theatre Community Fund. This enabled a new round of bursary awards to be announced in December 2020. The Fifth Anniversary Programme has been postponed until 2021/22.

MGCFUTURES LTD

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Financial Review

a. Reserves policy

The charity’s free reserves are represented by donations received not yet distributed. The Trustees’ reserves and funding policy is to try to ensure that funds are maintained at a level sufficient to cover the forecast overheads for the ensuing 6 months.

At the balance sheet date £74,135 (2019 - £150,725) was held in reserves. These funds are unrestricted.

Plans for the future periods

a. Future developments

The main plans for the future are to make grants to further the objectives of the charity.

Structure, governance and management

a. Constitution

The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 15 March 2013.

The company is constituted under a Memorandum of Association dated 15 March 2013, as amended on 24 September 2015 and is a registered charity number 1153534.

b. Method of appointment or election of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.

c. Organisational structure and decision making

The Trustees are actively responsible for the overall management and control of the charity.

The Board continued to oversee the strategic development of MGCfutures.

Christopher Oram stood down following six years’ service in January 2020 and Sir Ralph Waller KBE, Director of the Farmington Institute in Oxford, joined in June 2019. Ms Paule Constable was appointed in March 2020 and Ms Joan Major in March 2021.

The Charity employed a part-time administrator to manage the bursary programme, seek fundraising opportunities and organise events.

d. Related party relationships

The charity has no related or connected charities.

e. Risk management

The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

MGCFUTURES LTD TRUSTEES, REPORT {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 In preparing this report, the Trustees have taken advantage of the small companies exemptK)ns provided by section 41 SA of the Companies Act 2006. This report was approved by Ihe Trustees on . .iS.. Its J. UL I and signed on their behalf by.. ony Plns Trustee IChair}

MGCFUTURES LTD

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF MGCFUTURES LTD

I report to the Trustees (who are also directors for the purpose of company law) on my examination of the financial statements of MGCFutures Ltd (‘the charitable company’) for the year ended 31 August 2020 which comprise the Statement of Financial Activities (including the income and expenditure account), the Balance Sheet and related notes.

This report is made solely to the charity’s Trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s Trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s Trustees as a body, for my work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the Trustees of charitable company you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the Act and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’) and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the financial statements present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

…………………………………….

Peta Parker FCA Lewis Golden LLP 40 Queen Anne Street London W1G 9EL

Date: ……………………..

MGCFUTURES LTD

STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED 31 AUGUST 2020

Notes
Income and endowments from:
Donations and legacies
2
Other income
2
Government grants
2
Total income
Expenditure on:
Raising funds
3
Charitable activities
4
Total expenditure
Net (deficit) / surplus
Net movement in funds
Total funds at 1 September 2019
Total funds at 31 August 2020		 General
unrestricted
funds
2020
£
21,392
-
10,569
31,961
-
108,551
108,551
(76,590)
(76,590)
150,725
74,135		 Total
funds
2020
£
21,392
-
10,569
31,961
-
108,551
108,551
(76,590)
(76,590)
150,725
74,135		 Total
funds
2019
£
71,539
112,622
-
184,161
35,163
115,536
150,699
33,462
33,462
117,263
150,725

MGCFUTURES LTD BALANCE SHEET AS AT 31 AUGUST 2020 2020 2019 Notes Current assets Cash al bank and in hand 76,050 154.985 Deblors 2,000 1,240 Credltors: amounts falllng due wlthln one year 13,9151 15.5001 Net current assgts 74.135 150,725 Total net assets 74,135 150,725 Funds of Ihg Charlty Unrestricted funds 74,135 150.725 Total Charlty fund$ 74,135 150.725 The Trusle&s consider that the comp?ny is enlilled lo exemptions from the tyquirement lo have an audit under the provisions of sections 477 of the Companies Act 20061'lhe Act'l and the membèrs have not required the company to obtain an audit for Ihe year in question in accordance wth section 476 DI the Act. The Trustees acknowledge their responsibilities for complying with the requirements of th6 Companies Act 2006 with respect lo accounting records and for preparing financial stslemen15 which give a true and fair view of the state Df affairs of the company as at 31 August 2020 and of ils net resources expended for th¢ year in accordance with the requirements of the Companies Act 2006 relating to financial slalements, so far as applicable lo the company. The financial statemenls have been prepared in accordance with provisions applicable to small companies within Part 15 of the Companies Act 2006 and in accordance wlh the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. The financial statements were approved by the fruslees on . .11...ry.a.s...Lg.Ll behalf by.. and signed on their Ant Tru e Ichairl The notes on pages 8 10 11 form part of these financial stalemenls. MGCfutures Ltd Charltable Company Ireglsterod company number 08447600 England & Wales, Charlty number q 1535341

MGCFUTURES LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention.

The charity is a public benefit entity and the financial statements are prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Companies Act 2006 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The charity has taken advantage of the exemption to prepare a Statement of Cash Flows.

1.2 Going concern

The Covid-19 pandemic continues to have a significant impact on the theatre industry as the country is still currently subject to restrictions, including social distancing and all theatres and other public venues remain closed. Notwithstanding this, the charity has since the balance sheet date secured substantial donations which will enable it to be able to continue to support future talent after the Covid-19 restrictions are lifted, and the next round of bursaries, expected to total £120,000, is under way.

1.3 Company Status

The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

1.4 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

1.5 Income

All incoming resources are included in the Statement of Financial Activities (including the income and expenditure account) when the company has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.

Donated services or facilities, which comprise donated services, are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by a third party.

Income tax is recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Other income comprises fundraising income from events and galas which promote awareness and generate funds to support the Charity’s objectives.

Government grants are accounted for as income on a systematic basis over the period in which the Charity recognises the related costs for which the grant is intended to compensate. All government grants relate to funds received under the Coronavirus Job Retention Scheme (CJRS).

1.6 Expenditure

Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Expenditure on charitable activities comprises all costs associated with the running of the charity, including those incurred in connection with administration and compliance with constitutional and statutory requirements.

Expenditure on raising funds comprises the costs and setup of events and galas by the Charity.

MGCFUTURES LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies (continued)

1.7 Creditors

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

1.8 Debtors

Short term debtors are measured at transaction price, less any impairment.

1.9 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments and are initially recognised at transaction value and subsequently measured at their settlement value.

1.10 Cash and cash equivalents

Cash is represented by cash in hand, deposits held at call with financial institutions and other short-term liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2 Income

Unrestricted
Funds
2020
£
Donations and legacies – Donations
21,392
Other income – Gala fundraiser
Government grants
-
10,569
31,961		 Total
Funds
2020
£
21,392
-
10,569
31,961		 Total
Funds
2019
£
71,539
112,622
-
184,161

Government grants relate to funds received under the Coronavirus Job Retention Scheme (CJRS) and have been used to cover the monthly employee costs. There are no unfulfilled conditions and other contingencies attaching to government grants that have been recognised in income.

3 Expenditure on raising funds

Expenditure on raising funds
Unrestricted Total Total
Funds Funds Funds
2020 2020 2019
£ £ £
Gala costs - - 35,163

MGCFUTURES LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

4
Expenditure on charitable activities
Unrestricted
Funds
2020
£
Governance costs
Independent Examiner’s remuneration
2,220
Accountancy fees
1,340
Insurance
698
Bank charges
521
4,779
Charitable activities
Overhead costs
1,921
Personnel costs
28,204
Website costs
377
Bursaries granted
63,270
Consultancy fees
10,000
103,772
108,551		 Total
Funds
2020
£
2,220
1,340
698
521
4,779
1,921
28,204
377
63,270
10,000
103,772
108,551		 Total
Funds
2019
£
2,130
810
695
434
4,069
3,841
11,900
762
59,832
35,132
111,467
115,536

Included within accountancy fees is £840 (2019 - £810) for services provided by the independent examiner for the preparation of these financial statements.

The average number of employees during the year was 1 (2019 - no employees).

Personnel costs includes pension costs of £535 (2019 - £nil).

5 Trustees’ remuneration and Trustees’ benefits

During the current and prior year, no Trustees received any remuneration, benefits in kind or had expenses reimbursed.

MGCFUTURES LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

6
Debtors
Prepayments
Other debtors
7
Creditors: amounts falling due within one year
Accruals and deferred income
Taxation and social security		 2020
£
-
2,000
2,000
2020
£
3,000
915
3,915		 2019
£
1,240
-
1,240
2019
£
5,500
-
5,500

8 Related party transactions

During the year, the Michael Grandage Company Limited, a company under the control of a partner of a Trustee, gifted office accommodation and administrative services to the Charity with a value of £7,871 (2019 - £15,741).

Included within donations for the year were amounts totalling £1,000 (2019 - £nil) from a Trustee of the Charity. There were no conditions placed on this donation.