OpenCharities

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

2021-03-31-accounts

REGISTERED COMPANY NUMBER: 08530799 (England and Wales) REGISTERED CHARITY NUMBER: 1158439

Report of the Trustees and Financial Statements for the Year Ended 31st March 2021

for

Freedom Festival Arts Trust

Smailes Goldie Chartered Accountants Statutory Auditor Regent's Court Princess Street Hull East Yorkshire HU2 8BA

Freedom Festival Arts Trust

Contents of the Financial Statements for the year ended 31st March 2021

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 8
Report of the Independent Auditors 9 to 12
Statement of Financial Activities 13
Balance Sheet 14
Cash Flow Statement 15
Notes to the Cash Flow Statement 16
Notes to the Financial Statements 17 to 25

Freedom Festival Arts Trust

Reference and Administrative Details for the year ended 31st March 2021

TRUSTEES J G P Meehan
K A A Okra
S Madden
S J S Humphreys (resigned 10.3.2021)
N Porteus
K Denby (Chair)
B M McKnight (resigned 16.6.2021)
Cllr D Craker (resigned 16.6.2021)
M Relph
S A Christopher
P M Dalby
D J Keel
B Richardson
R Rosemary Pantelakis (appointed 16.6.2021)
REGISTERED OFFICE Room 905
Floor 9, 44 Bond Street
Hull
East Yorkshire
HU1 3EN
REGISTERED COMPANY 08530799 (England and Wales)
NUMBER
REGISTERED CHARITY 1158439
NUMBER
AUDITORS Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire
HU2 8BA
BANKERS Co-operative Bank plc
22 Alfred Gelder Street
Hull
HU1 2BS
SOLICITORS Rollits LLP
Citadel House,
58 High Street,
Hull,
HU1 1QE

Page 1

Freedom Festival Arts Trust

Report of the Trustees for the year ended 31st March 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES Objects, aims and objectives

The objects of the Charity are:

To advance the education of the public in the arts and in particular the arts of performance, music, drama, poetry reading, sculpture, painting, handicrafts and all other associated arts; and to encourage public participation in the said arts by the presentation of concerts, performances, exhibitions and festivals in the City of Kingston upon Hull ("the City") and its environs including, but not limited to events which celebrate the history of the City including its contribution to the abolition of slavery through the pioneering work of Hull-born William Wilberforce; provided that the promotion of such events is undertaken solely for the benefit of the public;

Such other charitable purposes beneficial to the community consistent with the objects above as the Trustees shall in their absolute discretion determine.

Core Purpose

Freedom Festival Arts Trust (FFAT) has delivered Freedom Festival and numerous other activities since its formation in 2013. As custodians of the city's annual award-winning, free-to-access international arts festival (Freedom Festival) and an expanding year-round programme of work which includes artistic delivery, workshops, talks, symposia, audience engagement, talent development, health & wellbeing and the commissioning of new, bold and relevant work, FFAT continues to evidence a significant impact upon the social, cultural and economic vitality of the city and the global sector.

We believe that arts and culture can be a catalyst for long-term transformation of people and place, connecting communities, building civic pride, raising aspirations, positive economic impact and ultimately contributing towards a society in which people may prosper, where communities matter and where creativity thrives.

Public benefit

The trustees have reviewed the current activities of the charitable company and confirmed that they are in line with its objectives. All the activities of the organisation carried out during the period are in pursuance of the company's aims and objectives. The trustees also confirm that the organisation's aims and objectives fall within the "descriptions of purposes" in the Charities Act 2011 and are recognised as charitable and are carried out for the public benefit.

Page 2

Freedom Festival Arts Trust

Report of the Trustees for the year ended 31st March 2021

ACHIEVEMENT AND PERFORMANCE Charitable activities Highlights 2020 Festival

-Delivered online and broadcast Freedom Festival 2020

-Over 450,000 attended the festival both online and via broadcast

-Delivered online content on Vimeo, You Tube and Mixcloud

2020 was a challenging year for Festival delivery. The programme was almost fully complete and ready to announce when the Covid-19 pandemic struck and lockdown 1 was announced (March 2020). The uncertainly around this, particularly around the impact and the longevity of the situation caused much anxiety. Once we had some clarity around what we would be able to deliver (or perhaps what we were not able to deliver) we quickly pivoted and designed a festival programme around an online and broadcast model. This model was of course different to the one which was originally planned but allowed us an opportunity to be creative with our associate artists and to stay connected to our audiences and stakeholders through a festival programme.

All artists and companies who had been provisionally booked for the regular festival were contacted to inform of the new plans and to allow them to adapt their work for an online and broadcast festival if appropriate, many were supported to do this and new work was developed for this medium.

The Artistic Director and team were quick to move to this new model and put together an extremely coherent and fulfilling programme which covered work for children and young people, those new to the arts, those who want to explore their artistic world more deeply, talks, films and online galleries, delivered both through online platforms and broadcast.

Some highlights of Freedom Festival 2020 included Portraits without Borders by Kaleider Studios - an indoor piece where the public sent in a selfie and the robot drew their stylised picture on a huge white wall with many other selfie's - the work was delivered on Hull Truck Theatre's main stage with the irony that we could be present in drawing but not in person and somehow still create a sense of solidarity without being physically present; a series of six unique music video experiences in collaboration with BBC Introducing and NOVA Studios where emerging music artists from Hull and the region were filmed in a Hull landmarks, such as at The Deep and on the roof of the K2 tower. We delivered a theatre scratch night with partners Middle Child and Silent Uproar utilising Vimeo platforms and also commissioned a series of DJ sets on MixCloud. We commissioned Plink & Boo to realise their show for younger children Can't Sit Still as an online 'to camera' experience with pre-watch activities in addition to great acclaim and are very proud that the show has gone on to tour extensively across the UK.

The organisation's staff learnt a great deal during this time, particularly how working across the digital realm can attract new and different audiences but also be very challenging to certain artists and art forms as a new way of working. This learning will have significant impact on and be embedded in future festivals.

The festival was extremely well received, reached thousands of people locally, nationally and internationally and many were delighted that we were able to deliver creative quality artistic content in such a challenging environment.

As well as the festival programme itself at the beginning of the summer 2020 school holidays, we released a weekly Freedom Festival at Home set of online and downloadable creative learning kits for children and young people. These were incredibly successful with over 1,500 downloads in total.

Page 3

Freedom Festival Arts Trust

Report of the Trustees for the year ended 31st March 2021

The Hull Vigil

We spend a great deal of time in 2020-2021 preparing, negotiating and developing the necessary partnerships locally, nationally and internationally for the year-long installation/event The Hull Vigil by company WLDN, a UK premiere. This is a year-long event in which a different person each sunrise and sunset spends one hour on a shelter on top of Hull College, watching over the city as a protector, guardian or whatever they perceive themselves to be. It is a major undertaking with year-round project management required, training for each of the participants (Vigils) delivered by freelance artists, contractual relationship with Hull College for the building on their roof and a major new relationship with Esteem in Hull, who are a consortium of building companies who have supported The Hull Vigil to be realised. The Hull Vigil began on May 3rd 2021 and will run for one year in duration. This project has also shifted the way we are perceived as an organisation, capable of doing so much more than just the annual festival, this is hugely important for our growth moving forward.

The Hull Vigil had significant press and media attention and also helped to elevate our position in the UK Festival sector, or perhaps more importantly as producers of extraordinary creative events for public spaces.

International

We are members of the In Situ European wide project, funded by the European Commission, which enables us to programme and commission work and deliver artist exchanges, high quality artist development programmes and collaborations amongst other things. This is one of the most significant European large collaboration projects and is vital to the outdoor arts sector in the UK.

We are also members of the Global Streets network. This network relies on international companies touring into the UK which was of course challenging for all UK partners in this period. The support from these networks has helped us to realise and prepare to deliver The Hull Vigil.

Commissions

We have commissioned a total of 7new pieces of work this year, with an investment of £47.9k. These have consisted of 3 international (£17.4k) and 4 national (£30.5k).

Symposium/ Talks

We delivered a number of talks, online in partnership with the Wilberforce Institute exploring the legacy of transatlantic slavery and the local context of modern day slavery alongside a Freedom Talks special broadcast in partnership with BBC Front Row asking how the arts respond to current political and social issues.

Community Engagement

We worked with Back to Ours in Hull to deliver 3 evenings of Lullaby by Luke Jerram, a community based sonic and illuminated processional participatory cycle ride around areas of Hull, with the participation of many local volunteers, community organisations' support to bring unique and positive artistic activity to areas of Hull which have had less opportunity to engage in cultural activity. Circa 30 people took part as participants each night, delivering the event to an audience of around 2,000 people.

Talent Development

We work throughout the year with local, regional, national and international artists across many disciplines to support their artistic journey. Many are beginning or early in their careers, others are moving into the art in public space sector.

We commissioned 7 pieces of work in 2020-21. They were:

Humm Radio Portraits Across Borders Hopes & Fears from Across the Water Play-Along - Plink and Boo Arrivals and Departures Studio Cite In Search of Democracy 3.0

Page 4

Freedom Festival Arts Trust

Report of the Trustees for the year ended 31st March 2021

FINANCIAL REVIEW

Financial review

Through strong governance, effective leadership and the implementation of robust financial management systems we continue to ensure financial viability across all areas of our work.

Key financial principles inform our approach:

In 2020-2021 FFAT delivered an online and broadcast festival. The festival delivery costs were substantially reduced, with only additional online costs for some specialist software to create and host activity. Costs to artists were also less than previous years as delivery across online and broadcast media is less expensive to deliver. We did commission some new work for Festival 2020.

Festival 2020 was delivered despite continuing challenges to securing income from sponsorship, trust's, and foundations.

In 2020-2021 we had a surplus of £214,162. This was made up of programme delivery underspend in the year, with some of the work moved forward to 2021-2022, and staff salary savings due to the Coronavirus Job Retention Scheme.

Quarterly Finance Sub-Committee meetings provide a platform for financial review where management accounts, cash flow and performance to objectives are reviewed at length. The Finance Sub-Committee also provides support to the board and executive team in terms of providing critical guidance and input into the financial management and these meetings feed into the Board meetings which are held quarterly. The day-to-day accountability for financial performance is overseen by the Joint CEO's who work closely with the Finance Manager.

Charitable Funds

The charitable company held fund balances at 31 March 2021 of £469,626.

£150,671 is held in unrestricted funds to cover day to day working capital requirements.

The board of trustees have designated £85,000 towards increasing the capacity and resilience of the charity in line with the strategic objectives in its business plan.

The remaining £233,955 is comprised of restricted funds.

Reserves policy

The reserves policy is to hold 3 months of close down costs plus redundancy costs to cover day to day working capital requirements. In financial year 2020-2021 this amounted to £84,089. The Board of Trustees review this policy annually.

Financial report for the year

Much of the charitable company's income is obtained from grants from Arts Council England, sponsorship from the local authority and a number of local/regional businesses, earned income and donations. Some of these income streams are restricted to particular purposes. These amounts are shown as restricted funds in the statement of financial activities. During the period, total restricted expenditure of £118,745 (2019-2020 £659,646) was covered by sponsorship, donations, grants and funds brought forward. The company generated unrestricted income of £286,990 (2019-2020 £433,019) during the period.

Page 5

Freedom Festival Arts Trust

Report of the Trustees for the year ended 31st March 2021

FINANCIAL REVIEW

Going concern

The charity's forecasts and projections for the next twelve months show that the charity should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the charity of possible future scenarios arising from the impact of COVID-19. This also considers the effectiveness of available measures to assist in mitigating the impact. The charity has strong positive cash balances and is forecasting for this to continue to be the case. The trustees have stress tested their forecasts, considering various scenarios, and remain confident that the uncertainties do not cast significant doubt on the company's ability to continue as a going concern.

FUTURE VISION

Freedom Festival Arts Trust has been through a challenging year in 2020-2021, as have many arts focused organisations. We were able to deliver our Festival, albeit through online and broadcast medium and also prepare the ground for The Hull Vigil project.

We expect the learning from this unprecedented period of delivery to be utilised in future Festivals.

We delivered a festival in 2021-2022 and used all government advice and restrictions to plan a safe and enjoyable festival for all.

We will continue to embed our relationships with academic institutions the University of Hull, Hull College and Ron Dearing UTC in 2020-2021, bringing the work of the organisation, our myriad of associate artists and the academic sector closer together, delivering more opportunities for young people to get involved in and to learn from the work of the festival alongside our continued working with academics to explore research opportunities with and through our work, connecting appropriate local, regional, national and international artists. We expect this to raise aspiration levels, encourage exploration of the wider arts and cultural sector, inspire the next generation of local talented arts professionals and generate a sense of pride in place.

We are continuing our relationship with the In Situ network an international project funded through the European Commission, which links over 30 organisation both large and small in a collective ambition to grow and develop the outdoor arts sector through commissioning, programming, artist development, cross sector working, talks, workshops, exchanges and written materials. This is an investment of time and money from the organisation but we and the city benefit hugely from this outward facing international flow of artists and ideas. Artists in Hull benefit from the opportunity to be a part of an international conversation with opportunities to exchange practice, artistic development, production support, connect with international networks, ideas and to tour. We will commit circa £38,000 to this project each year of the next 4 years and receive an average return of £9.5k per annum

We are a leading member of the Global Streets, a UK network, of 10 like-minded organisations, which is supported by Arts Council England. Global Streets looks to bring the best national and international participatory work to the streets of each members' city. We will continue our strong relationship with this network and look to grow our input in it over the years ahead, with the expectation that it will continue to be funded by Arts Council England and other funding streams.

We continue to be a significant player in the Hull cultural and creative sector, championing the city and its artists to become world-class and have incredible opportunities to deliver their work to the world. We work with many organisations and local authority initiatives in the city to support growth of the arts sector, underline its importance to the growth of the city economically and for the wellbeing of its inhabitants. We champion our place and celebrate and support artists who work here, alongside bringing world-class artists and companies to the city to illustrate excellence and inspire both artists and audiences alike.

We will continue to commission work locally, regionally, nationally and internationally through our networks and independently, meaning that our programme of work both at the festival and across the year contain a diverse and excellent array of artists and companies.

Page 6

Freedom Festival Arts Trust

Report of the Trustees for the year ended 31st March 2021

We take our role in the sector and the city as cultural enablers and a National Portfolio Organisation extremely seriously and understand the importance of all forms of diversity in our work. We acknowledge that this is a journey and we always need to do more in a society with so much embedded structural inequality. We will work tirelessly to take positive action across everything we do to be as diverse, relevant and inclusive as is possible. This includes programming, commissioning, advocacy, mentoring, choice of commercial partners, sponsors and others. We will encourage others with whom we work to share our ideals and positive actions. In this year and the years ahead we will look to challenge our decision making, take positive action on bringing more diversity to our programme and be an advocate for change with the arts sector, outdoor arts and in the city.

We will continue to develop our funding partners. This means both deepening our current relationships and adding new ones. We want to work with partners who value and understand our work and believe in the city of Hull and a place which can be more vibrant and can enhance its standing nationally and internationally. We need support from business to continue our growth and we will work to build reciprocal relationships to enable shared benefits. We will lobby our existing core funders, Arts Council England and the local authority for increased investment, allowing us to achieve our ambitions of delivering outstanding cultural and creative experiences for the people of Hull and beyond. To enable this, we will be developing a new funding and fundraising strategy to enable us to grow and change.

We will continue to work closely with our two key funders, Arts Council England and Hull City Council. We are supporters and partners in the Hull Maritime City project, as a next step in the wider city regeneration project.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The charitable company's Memorandum and Articles of Association are its primary governing documents.

Recruitment, appointment, induction and training of new trustees

All trustees are appointed for a fixed term of 5 years and, at the end of this term, may be re-appointed for another fixed term of 5 years, after which they must step down. When recruitment becomes necessary, opportunities will be advertised via appropriate media. Induction and training will be provided.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

Page 7

Freedom Festival Arts Trust

Report of the Trustees

for the year ended 31st March 2021

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Freedom Festival Arts Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

AUDITORS

The independent auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report was approved by the Board on 15th December 2021 and signed on its behalf by:

K Denby - Trustee

Page 8

Report of the Independent Auditors to the Members of Freedom Festival Arts Trust

Opinion

We have audited the financial statements of Freedom Festival Arts Trust (the 'charitable company') for the year ended 31st March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Page 9

Report of the Independent Auditors to the Members of Freedom Festival Arts Trust

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 10

Report of the Independent Auditors to the Members of Freedom Festival Arts Trust

Our 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 a Report of the Independent Auditors 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.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, tax legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 11

Report of the Independent Auditors to the Members of Freedom Festival Arts Trust

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.

Luke Taylor BSc(Hons) (Senior Statutory Auditor) for and on behalf of Smailes Goldie Chartered Accountants Statutory Auditor Regent's Court Princess Street Hull East Yorkshire HU2 8BA

15th December 2021

Page 12

Freedom Festival Arts Trust

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31st March 2021

2021
Unrestricted
Designated
Restricted
Total
fund
fund
funds
funds
Notes
£
£
£
£
INCOME AND
ENDOWMENTS FROM
Donations and legacies
3
491
-
53,500
53,991
Charitable activities
4
Artistic Activities
-
-
243,027
243,027
James Reckitt Library Trust
-
-
53
53
Core Costs
286,499
-
-
286,499
Sura Medura
-
-
-
-
Cultural Collisions
-
-
-
-
British Council
-
-
-
-
The Vigil
-
-
34,211
34,211
Total
286,990
-
330,791
617,781
EXPENDITURE ON
Charitable activities
5
Artistic Activities
-
-
70,495
70,495
James Reckitt Library Trust
-
-
9,993
9,993
Core Costs
284,874
-
-
284,874
Sura Medura
-
-
-
-
Cultural Collisions
-
-
-
-
British Council
-
-
-
-
The Vigil
-
-
38,257
38,257
Total
284,874
-
118,745
403,619
NET
INCOME/(EXPENDITURE)
2,116
-
212,046
214,162
Transfers between funds
16
(31,887)
31,887
-
-
Net movement in funds
(29,771)
31,887
212,046
214,162
RECONCILIATION OF
FUNDS
Total funds brought
forward
180,442
53,113
21,909
255,464
TOTAL FUNDS CARRIED
FORWARD
150,671
85,000
233,955
469,626		 2020
Total
funds
£
171,892
383,088
92
323,627
22,684
1,300
12,656
-
915,339
605,790
17,977
275,185
22,573
650
12,656
-
934,831
(19,492)
-
(19,492)
274,956
255,464

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 13

Freedom Festival Arts Trust

Balance Sheet 31st March 2021

Notes
FIXED ASSETS
Tangible assets
12
CURRENT ASSETS
Debtors
13
Cash at bank
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
16
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2021
£
3,458
33,687
540,020
573,707
(107,539)
466,168
469,626
469,626
235,671
233,955
469,626		 2020
£
1,957
40,731
294,749
335,480
(81,973)
253,507
255,464
255,464
233,555
21,909
255,464

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 15th December 2021 and were signed on its behalf by:

K Denby - Trustee

The notes form part of these financial statements

Page 14

Freedom Festival Arts Trust

Cash Flow Statement for the year ended 31st March 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period		 2021
£
249,113
249,113
(4,134)
292
(3,842)
245,271
294,749
540,020		 2020
£
(28,632)
(28,632)
(310)
-
(310)
(28,942)
323,691
294,749

The notes form part of these financial statements

Page 15

Freedom Festival Arts Trust

Notes to the Cash Flow Statement for the year ended 31st March 2021

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
2021 2020
£ £
Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities) 214,162 (19,492)
Adjustments for:
Depreciation charges 2,341 1,391
Decrease in debtors 7,044 24,384
Increase/(decrease) in creditors 25,566 (34,915)
Net cash provided by/(used in) operations 249,113 (28,632)
2. ANALYSIS OF CHANGES IN NET FUNDS
At 1.4.20 Cash flow At 31.3.21
£ £ £
Net cash
Cash at bank 294,749 245,271 540,020
294,749 245,271 540,020
Total 294,749 245,271 540,020

The notes form part of these financial statements

Page 16

Freedom Festival Arts Trust

Notes to the Financial Statements for the year ended 31st March 2021

1. COMPANY INFORMATION

Freedom Festival Arts Trusts is a private company limited by guarantee incorporated in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, when it is probable that the income will be received and when the amount can be measured reliably.

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 headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs and governance costs. They are incurred directly in support of expenditure on the objectives of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Tangible fixed assets

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

Fixtures and fittings - 3 years on cost

Taxation

Freedom Festival Arts Trust is a UK registered charity and all of its income is applied to the achievement of its charitable objects. The charitable company is therefore exempt under current legislation from most forms of taxation.

Fund accounting

Unrestricted funds

Unrestricted general funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Restricted funds

Page 17

continued...

Freedom Festival Arts Trust

Notes to the Financial Statements - continued for the year ended 31st March 2021

2. ACCOUNTING POLICIES - continued

Fund accounting

Restricted funds are to be used in accordance with specific restrictions imposed by donors or have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

3. DONATIONS AND LEGACIES

Unrestricted
funds
£
Sponsorship
-
Donations and gifts
491
491
INCOME FROM CHARITABLE ACTIVITIES
Grants received
Ticket sales
Festival concessions
Other income
Grants received
Ticket sales
Festival concessions
Other income		 Restricted
funds
£
53,500
-
53,500
Artistic
Activities
£
242,133
-
894
-
243,027
The Vigil
£
34,211
-
-
-
34,211		 2021
Total
funds
£
53,500
491
53,991
James
Reckitt
Library
Trust
£
-
-
-
53
53
2021
Total
activities
£
560,141
-
894
2,755
563,790		 2020
Total
funds
£
140,300
31,592
171,892
Core
Costs
£
283,797
-
-
2,702
286,499
2020
Total
activities
£
702,698
24,589
15,993
167
743,447

4. INCOME FROM CHARITABLE ACTIVITIES

Page 18

continued...

Freedom Festival Arts Trust

Notes to the Financial Statements - continued for the year ended 31st March 2021

5. CHARITABLE ACTIVITIES COSTS

Artistic Activities
James Reckitt Library Trust
Core Costs
The Vigil
6.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Rent and rates
Insurance
Telephone
Sundries
Festival and workshop content
Advertising and marketing
Recruitment expenses
Travel and entertaining
Post and stationery
Computer costs
Subscriptions
Repairs and renewals
Training
Project management and consultancy costs
Depreciation
7.
SUPPORT COSTS
Core Costs
Governance costs are as follows:
Auditors remuneration
Independent examiners fee		 Direct
Support
Costs (see
costs (see
note 6)
note 7)
£
£
70,495
-
9,993
-
272,951
11,923
38,257
-
391,696
11,923
2021
£
180,770
5,790
4,552
1,006
-
120,185
64,044
1,550
(441)
2,513
3,057
2,420
-
3,909
-
2,341
391,696
Governance
Finance
costs
£
£
705
11,218		 Direct
Support
Costs (see
costs (see
note 6)
note 7)
£
£
70,495
-
9,993
-
272,951
11,923
38,257
-
391,696
11,923
2021
£
180,770
5,790
4,552
1,006
-
120,185
64,044
1,550
(441)
2,513
3,057
2,420
-
3,909
-
2,341
391,696
Governance
Finance
costs
£
£
705
11,218		 Direct
Support
Costs (see
costs (see
note 6)
note 7)
£
£
70,495
-
9,993
-
272,951
11,923
38,257
-
391,696
11,923
2021
£
180,770
5,790
4,552
1,006
-
120,185
64,044
1,550
(441)
2,513
3,057
2,420
-
3,909
-
2,341
391,696
Governance
Finance
costs
£
£
705
11,218		 Direct
Support
Costs (see
costs (see
note 6)
note 7)
£
£
70,495
-
9,993
-
272,951
11,923
38,257
-
391,696
11,923
2021
£
180,770
5,790
4,552
1,006
-
120,185
64,044
1,550
(441)
2,513
3,057
2,420
-
3,909
-
2,341
391,696
Governance
Finance
costs
£
£
705
11,218		 Totals
£
70,495
9,993
284,874
38,257
403,619		 Totals
£
70,495
9,993
284,874
38,257
403,619
2020
£
165,851
5,493
7,091
1,662
126
607,407
78,036
2,580
24,529
1,004
1,957
1,711
11,195
3,085
8,020
1,391
921,138
Totals
£
11,923
2021 2020
£ £
11,218 12,899
- -
12,899 12,899

Page 19

continued...

Freedom Festival Arts Trust

Notes to the Financial Statements - continued for the year ended 31st March 2021

8. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Depreciation - owned assets
Amounts payable to the auditor		 2021
£
2,341
11,218		 2020
£
1,391
12,899

9. TRUSTEES' REMUNERATION AND BENEFITS

The trustees were not entitled to and did not receive any remuneration from the charitable company during this year nor the preceding year.

Trustees' expenses

There were no expenses incurred by the trustees (2020 £1,604) during the year in respect of travel and subsistence costs.

10. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Average number of employees
No employees received emoluments in excess of £60,000.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Designated
fund
fund
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
109,392
-
Charitable activities
Artistic Activities
-
-
James Reckitt Library Trust
-
-
Core Costs
323,627
-
Sura Medura
-
-
Cultural Collisions
-
-
British Council
-
-
Total
433,019
-
EXPENDITURE ON		 2021
£
164,135
12,625
4,010
180,770
2021
5
Restricted
funds
£
62,500
383,088
92
-
22,684
1,300
12,656
482,320		 2020 2020
£
151,111
11,927
2,813
165,851
2020
5
Total
funds
£
171,892
383,088
92
323,627
22,684
1,300
12,656
915,339

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Page 20

continued...

Freedom Festival Arts Trust

Notes to the Financial Statements - continued for the year ended 31st March 2021

11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Designated
Restricted
fund
fund
funds
£
£
£
Charitable activities
Artistic Activities
-
-
605,790
James Reckitt Library Trust
-
-
17,977
Core Costs
275,185
-
-
Sura Medura
-
-
22,573
Cultural Collisions
-
-
650
British Council
-
-
12,656
Total
275,185
-
659,646
NET INCOME/(EXPENDITURE)
157,834
-
(177,326)
Transfers between funds
(212,554)
53,113
159,441
Net movement in funds
(54,720)
53,113
(17,885)
RECONCILIATION OF FUNDS
Total funds brought forward
235,162
-
39,794
TOTAL FUNDS CARRIED FORWARD
180,442
53,113
21,909
12.
TANGIBLE FIXED ASSETS
COST
At 1st April 2020
Additions
Disposals
At 31st March 2021
DEPRECIATION
At 1st April 2020
Charge for year
At 31st March 2021
NET BOOK VALUE
At 31st March 2021
At 31st March 2020		 Total
funds
£
605,790
17,977
275,185
22,573
650
12,656
934,831
(19,492)
-
(19,492)
274,956
255,464
Fixtures
and
fittings
£
4,483
4,134
(292)
8,325
2,526
2,341
4,867
3,458
1,957

Page 21

continued...

Freedom Festival Arts Trust

Notes to the Financial Statements - continued for the year ended 31st March 2021

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Sponsorship
Other debtors
VAT
Prepayments
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other creditors
Accruals and deferred income
Deferred income
Deferred income at 1 April 2020
Amounts deferred during the period
Amounts released from previous periods
Deferred income at 31 March 2021		 2020
£
20,866
-
7,106
12,759
40,731
2020
£
24,397
26,476
31,100
81,973
2021 2020
£ £
5,000 75,403
68,250 5,000
(5,000) (75,403)
68,250 5,000

Deferred income comprises of sponsorship and advance grant funding received for projects continuing throughout 2021/22.

15. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted
fund
£
Fixed assets
3,458
Current assets
250,706
Current liabilities
(103,493)
150,671		 Designated
fund
£
-
85,000
-
85,000		 Restricted
funds
£
-
238,001
(4,046)
233,955		 2021
Total
funds
£
3,458
573,707
(107,539)
469,626		 2020
Total
funds
£
1,957
335,480
(81,973)
255,464

Page 22

continued...

Freedom Festival Arts Trust

Notes to the Financial Statements - continued

for the year ended 31st March 2021

16. MOVEMENT IN FUNDS

At 1.4.20
£
Unrestricted funds
General fund
180,442
Designated fund
53,113
233,555
Restricted funds
Artistic Activities
-
James Reckitt Library Trust
21,909
The Vigil
-
IN-SITU
-
21,909
TOTAL FUNDS
255,464
Net movement in funds, included in the above are as follows:		 Net
movement
in funds
£
2,116
-
2,116
226,032
(9,940)
(4,046)
-
212,046
214,162		 Transfers
between
funds
£
(31,887)
31,887
-
(112,330)
-
-
112,330
-
-		 At
31.3.21
£
150,671
85,000
235,671
113,702
11,969
(4,046)
112,330
233,955
469,626
Unrestricted funds
General fund
Restricted funds
Artistic Activities
James Reckitt Library Trust
The Vigil
TOTAL FUNDS		 Incoming
resources
£
286,990
296,527
53
34,211
330,791
617,781		 Resources
Movement
expended
in funds
£
£
(284,874)
2,116
(70,495)
226,032
(9,993)
(9,940)
(38,257)
(4,046)
(118,745)
212,046
(403,619)
214,162

Page 23

continued...

Freedom Festival Arts Trust

Notes to the Financial Statements - continued for the year ended 31st March 2021

16. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Designated fund
Restricted funds
Artistic Activities
James Reckitt Library Trust
Sura Medura
Cultural Collisions
TOTAL FUNDS		 At 1.4.19
£
235,162
-
235,162
-
39,794
-
-
39,794
274,956		 Net
movement
in funds
£
157,834
-
157,834
(160,202)
(17,885)
111
650
(177,326)
(19,492)		 Transfers
between
funds
£
(212,554)
53,113
(159,441)
160,202
-
(111)
(650)
159,441
-		 At
31.3.20
£
180,442
53,113
233,555
-
21,909
-
-
21,909
255,464

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Artistic Activities
James Reckitt Library Trust
Sura Medura
Cultural Collisions
British Council
TOTAL FUNDS		 Incoming
resources
£
433,019
445,588
92
22,684
1,300
12,656
482,320
915,339		 Resources
Movement
expended
in funds
£
£
(275,185)
157,834
(605,790)
(160,202)
(17,977)
(17,885)
(22,573)
111
(650)
650
(12,656)
-
(659,646)
(177,326)
(934,831)
(19,492)

The restricted funds comprise unspent income which has been raised by the charity for particular purposes or is to be used in accordance with specific restrictions imposed by donors. The balances will be used to fund future expenditure.

The Artistic Activities fund relates to:

The Vigil fund is in deficit due to the start of the vigil being postponed from March 21 to May 21.

The IN-SITU fund ringfences the value that Freedom Festival Arts Trust has contractually committed to invest as a partner into the (UN)Common Spaces project over the years 2021-2025.

Page 24

continued...

Freedom Festival Arts Trust

Notes to the Financial Statements - continued for the year ended 31st March 2021

16. MOVEMENT IN FUNDS - continued

The James Reckitt Library Trust fund was created in a series of grants from them for work focused around visual art, spoken word and literature. After the original projects that were funded had completed there was a residual balance which will continue to be used within the scope of the charitable company's objectives in furtherance of the above mentioned art forms.

Freedom Festival Arts Trust has designated, out of general unrestricted funds the amount of £85,000 towards increasing the capacity and resilience of the charity in line with the strategic objectives in its business plan.

17. RELATED PARTY DISCLOSURES

Hull City Council

An organisation in which M Relph is an employee, D Craker was an elected member and R Pantelakis is an elected member.

During the year sponsorship from Hull City Council was agreed for £200,000 (2020 £200,400).

18. POST BALANCE SHEET EVENTS

As the vaccine roll out has enabled the economy to reopen, the 2021 festival was be able to proceed as planned but with alterations according to the prevailing government regulations for COVID 19 at the time.

19. ULTIMATE CONTROLLING PARTY

The charitable company, being limited by guarantee, has no share capital and was controlled throughout the period by its members and therefore no one party had ultimate control.

Page 25