2022-03-31-accounts

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Registered number: 09021431 Charity number: 1158606

THE CHELTENHAM TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

THE CHELTENHAM TRUST

	Page
Reference and Administrative Details of the Charity, its Trustees and Advisers	1 - 2
Trustees' Report	3 - 18
Independent Auditors' Report on the Financial Statements	19 - 22
Consolidated Statement of Financial Activities	23
Consolidated Balance Sheet	24 - 25
Charity Balance Sheet	26 - 27
Consolidated Statement of Cash Flows	28
Notes to the Financial Statements	29 - 53

THE CHELTENHAM TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022

Trustees

Louis Eperjesi, Chair Duncan Smith (resigned 30 September 2022) Benjamin Averis (appointed 2 July 2021) Cllr Barbara Clark (appointed 28 July 2021) Cllr Steve Harvey (appointed 19 July 2022) Cllr Karl Hobley (end of term 5 May 2021) Judith Hodsdon (end of term 30 April 2021) Julie Jordan (appointed 1 October 2022) Cllr Alisha Lewis (appointed 28 July 2021, resigned 18 July 2022) - Jacqueline Meekings Davis (resigned 30 September 2022) Sian Morgan Elizabeth Narey Sunita Nelson - Gary Hasley Nejrup (appointed 1 October 2022) Jeremy Owen (resigned 30 September 2022) Kate Peden Clive Rawlings Gemma Taylor (appointed 2 July 2021) Daniel Wilson (appointed 25 May 2022) Jeanette Young (resigned 9 November 2021)

Company registered number

09021431

Charity registered number

1158606

Registered office

Cheltenham Town Hall Imperial Square Cheltenham Gloucestershire GL50 1QA

Chief executive officer & Senior management team

Laurie Bell, Chief Executive Officer Tracey Larsson, Head of Finance Sara Oliver, Head of Communications Lisa Edgar, Head of Culture

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THE CHELTENHAM TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Independent auditors

Randall & Payne LLP Shurdington Road Shurdington Cheltenham Gloucestershire GL51 4GA

Bankers

Lloyds Bank PLC 130 High street Cheltenham Gloucestershire GL50 1EW

Solicitors

Willans LLP 28 Imperial Square Cheltenham Gloucestershire GL50 1RH

Financial and Human Resources Advisors

Publica Group Limited Trinity Road Cirencester Gloucestershire GL7 1PX

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THE CHELTENHAM TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022

Chair’s Report

I am pleased to present this annual report and account for The Cheltenham Trust for the period April 2021 to end March 2022.

The report reflects another challenging year that saw the trust continue to manage the impact of the pandemic. It was a year that saw the venues partially reopen, in line with the government’s guidance and, as a consequence, it was another year of substantially reduced events and activities for the community and visitors to the town.

The Trust is an independent charity and the lead provider of culture, entertainment, sport and leisure in Cheltenham. Through the five iconic and contemporary venues and two orangery cafes that it manages; Pittville Pump Room and the Heritage Cafe, The Wilson Art Gallery and Museum, Cheltenham Town Hall and the Garden Bar, Leisure at Cheltenham and the Prince of Wales Stadium, the Trust actively contributes to the local and visitor economy and to the provision of social activities that promote and improve health and wellbeing.

As the guardian of much of the town’s heritage The Cheltenham Trust has a major role in sustaining these important, historic venues. As an ambitious, forward looking organisation our evidenced business model is one that blends culture, community and commercial to help achieve financial sustainability and investment in the heritage buildings, as well as a year round programme of inclusive and accessible free events and activities for visitors and the local community.

The Trust approved a new five-year business plan in December 2021 that reflected its revised business model as a consequence of the pandemic that forced reprioritisation and change. The new plan incorporates café culture and its value in helping the Trust to become self-sufficient and financially sustainable by 2027. It sets out planned growth over the five year period focused on maximising the potential of its venues as major visitor destinations.

Pre-covid the organisation relied predominantly on its income from pre-paid tickets, hires and memberships. In response to the pandemic the trust was forced to take an agile approach repurposing by opening two new outdoor cafes that have organically grown to generate one third of the annual income. The cafes have proven to be vital to the future sustainability of the historic venues and in delivering extensive social and economic benefit attracting around two million visitors in the 12 months. Both cafes have transformed from pop up models to large orangeries, erected late summer and autumn of 2021, creating popular community and visitor hubs that support the local and visitor economy.

The Trust set out 2021/22 as a Recovery year recognising the ongoing impact of the pandemic and the phased reopening of its venues. It continued to focus on its outdoor spaces and a year round programme of free and inclusive community events including music in the park and gardens, Christmas Lights switch on at the pump room, film screening in the gardens, children’s fun days, and the launch of a new and immersive Heritage Trail at the pump room that showcases and narrates its history and heritage through visual and audio. The trust led events have grown to attract thousands helping to establish the venues and outdoor park and garden spaces as major visitor attractions and community destinations in the town.

Further government funding was secured from the final tranche of national covid grant schemes to aide recovery. The funding delivered improvements across the venues to enhance the customer experience and to help generate income as the venues reopened in September 2021 including a new sports bar at the Prince of Wales stadium, a new art deco bar at the pump room and investment in the two orangery cafes. In addition, the substantial funding secured for the refurbishment of The Wilson Art Gallery and Museum created a new community art gallery, a vibrant community arts café, new artist studios and the redisplay of the main galleries. The refurbishment incorporates café culture blended with art and heritage, creating a vibrant contemporary visitor destination for all ages.

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

The Trust was recognised as Best Business in the face of Adversity in October 2021 based on its growth and contribution to Cheltenham in the most challenging of times. Its programme of events and customer focus has resulted in its social reach now extended to 1.4 million.

The Trust will continue to grow and improve and it is transforming its business systems to ensure it is fit for purpose to deliver its new 5 year plan. To enable an agile approach to resourcing and delivery it has brought the HR function in house and has recruited new senior roles including Head of HR and Head of Culture.

The Trust is focused on developing its diverse programme of events and activities to further strengthen its position as Cheltenham’s leading cultural and leisure provider. Working with partners it seeks to continue to boost the local and visitor economy and enable everyone in the local community to have the opportunity to participate in the programme.

While the year was once again a year of challenges, the Trust continued to adapt and maximise opportunities. The Trust has adopted an agile and entrepreneurial approach that has proven to be effective in generating and securing income and in delivering a year end profit of £193,000 within its trading subsidiary Cheltenham Leisure and Culture Ltd. I fully recognise that with the current economic instability this approach will need to continue to combat the inevitability of further challenges ahead.

I would like to extend my thanks to all the staff, the trustees, our stakeholders and partners, and our customers for their ongoing support.

We look forward to better times ahead.

Signed: Louis Eperjesi Chair of the Board of Trustees Date

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

The Trustees are pleased to present their annual directors’ report together with the consolidated financial statements of the charity and its subsidiary for the year ending 31 March 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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).

The Cheltenham Trust commenced operations on 1 October 2014 and currently operates The Wilson Art Gallery and Museum, ‘Leisure At’ Recreational Facilities at Pittville including the Prince of Wales Stadium, plus the Cheltenham Town Hall and Pittville Pump Room entertainment venues on behalf of Cheltenham Borough Council.

Cheltenham Leisure and Culture Ltd is a trading subsidiary of The Cheltenham Trust.

The Trust’s charitable objectives are set out below. Any financial surplus achieved by the Trust is re-invested in the charitable aims and objectives.

a. Policies and objectives

Objectives and vision

The Trust has been established for the following charitable purposes:

for the advancement and support of education, culture, arts and heritage including the provision of libraries, museums, galleries, learning and information centres, archives, activities, events, programmes and other related services.
for 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 with special facilities being provided for various needs and demographics.
for the promotion of good health and wellbeing through community and public participation in healthy recreation and activities.
other such charitable purposes that are beneficial to the public and consistent with the objects as the Director Trustees shall determine.

Vision

As an independent charitable trust our vision is to enrich the lives of the residents of Cheltenham and visitors to the town through a vibrant cultural economy and helping to create a distinctive sense of place.

As a registered not for profit charity, the Trust manages Cheltenham’s most iconic venues – the contemporary Wilson Art Gallery and Museum; the Grade I listed Pittville Pump Room; the Grade II listed Town Hall and Skillicorne Gardens, and the popular Leisure At Cheltenham and the Prince of Wales Stadium.

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

(continued)

The Trust supports the economy, community, cultural and social offer in Cheltenham providing culture and heritage, entertainment, sport and leisure. Through its outreach work it delivers projects that benefit the community and enables all ages to access culture, heritage, leisure and sport.

The main activities at each of the Trust’s five sites are:

The Wilson Art Gallery & Museum

The Wilson hosts a rich programme of exhibitions and events that is supported by a new vibrant arts café. The Wilson is available to hire as an alternative, contemporary venue. Its outdoor roof terrace is a unique setting for hosting events. The venue provides space for corporate meetings, launches, parties, dinners, dances and celebrations, as well as community events, activities, workshops and talks.

The Wilson re-opened to the public in July 2022 following major refurbishment creating a community arts and exhibition gallery, artist studios and a vibrant arts café. .

Pittville Pump Room

The magnificent Grade I Pittville Pump Room is the jewel of Cheltenham’s regency architecture. Its location in the beautiful Pittville Park has made this award winning, landmark building one of Gloucestershire’s most impressive venues for weddings, dinners, exhibitions, dances, corporate events and conferencing and community activities, as well as the extremely successful outdoor Heritage Café. A new Heritage Trail launched in September 2021 showcases the history and Regency splendour.

Cheltenham Town Hall

The elegant Edwardian Grade II listed Town Hall is a popular venue for community and further afield. It has a year round programme of entertainment, attracting more than 90,000 visitors each year to live comedy and celebrity speakers, music, concerts, dance and theatre. It is also available for hire for a wide range of events and activities, meetings and weddings. The Garden Bar Orangery and Skillicorne Garden, adjacent to the Town Hall, offer a cafe bar and a secret walled garden for a perfect private al fresco event.

Leisure At Cheltenham and The Prince of Wales Stadium

Leisure At Cheltenham attracts more than 2,000 visitors each day and provides state of the art leisure facilities with four pools; a fitness suite and more than 75 fitness classes. The Prince of Wales Stadium regularly hosts sports and track meetings, enhanced by the re-furbished sports bar with hire facilities for events, parties and corporate conferencing.

Management Agreement

The Trust operates independently, occupying buildings owned by Cheltenham Borough Council. A Management Agreement has been established between Cheltenham Borough Council and The Cheltenham Trust to deliver key outcomes that are consistent with the Borough Council’s social objectives and the Trust’s creation of social value..

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

(continued)

b. Activities during the year

Pittville Pump Room and Cheltenham Town Hall

The pop-up Heritage Café operation expanded with the addition of mobile kiosks operating from under the portico, launching in summer 2021. The temporary orangery structure was installed and opened in October 2021.
The Wilson on Tour summer and autumn series were created hosting cultural events at the pump room such as a plaster workshop, tiara event and children’s creative crafters, Baby Babble and Tots and Tales enabling the community to access cultural events while The Wilson was closed which would transfer to the gallery when re-open.
The series of Trust led events was further extended including Burn’s Night, Valentine’s Day and Mother’s Day. The music in the park programme hosted free live music and entertainment throughout the summer and autumn. Children’s Halloween events such as spooky storytelling sold out.
The pump room’s new free visitor experience, The Story of Pittville Pump Room, an immersive selfguided and audio tour opened in September 2021, attracted c500 over its first two days.
The Trust’s Christmas celebrations for the community was built on from the 2020 programme. As restrictions lifted events were hosted both inside the pump room and outside including choirs and carol singers at the Heritage Café, Christmas trees and lights, a visit by Father Christmas and his sleigh to turn on the lights, and the first Christmas artisan market inside the main hall showcasing local makers, creatives and producers.
Following the success of the festive markets, a regular monthly Sunday artisan market was launched from February 2022 and has continued to build in popularity attracting c600 each month.
As restrictions lifted, hires and events continued inside the venue, with strong demand for dates, particularly for re-scheduled private hires such as weddings.
The pump room hosted a full programme for Cheltenham Race Week including live music and entertainment and themed food and drink.

Cheltenham Town Hall

As restrictions lifted, co-productions, hires and events resumed at the town hall with audiences holding t ickets returning. Classical audiences were slower to return but the venue saw new audiences particularly for comedy.
The programme of free live music for the community was built on at the Garden Bar and Skillicorne Garden as a key part of the Cheltenham entertainment calendar.
Events and free live music were programmed at The Garden Bar to support the big screen in Imperial Garden in July and August as part of the government’s Welcome Back initiative, working collaboratively with Cheltenham Borough Council and Marketing Cheltenham.
The temporary orangery structure was installed and opened August 2021.
A Christmas programme included Santa’s Grotto in Skillicorne Garden from mid-November to Christmas, themed music and entertainment, food and drinks in the Garden Bar including choirs to complement the adjacent ice rink.

Leisure At Cheltenham and The Prince of Wales Stadium

When government restrictions allowed, the centre re-opened in line with government restrictions, operating with pre-booked sessions and reduced capacities, revised layout and operations.
With indoor exercise not allowed by government restrictions, the Trust installed and opened the fitness marquee and outdoor Fitstop café marquee behind the centre in April 2021. The facility enabled members and the community to continue to exercise in a safe, outdoor environment in line with government restrictions. This included children’s soft play sessions and activities.
The programme of virtual classes and activities continued enabling people to stay fit at home for those who did not wish to exercise outdoors.
Improvements were carried out with funding from Sport England including upgrading the health and wellness centre; creating a birthday party room; opening the Fitstop café first in the link corridor downstairs and then moving into the upstairs atrium in July 2021.

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

(continued)

A bespoke soft play zone was built in the downstairs atrium improving the centre’s family offer, opening in October 2021. Inflatable soft play sessions were introduced in February 2022.
The refurbished Prince of Wales stadium opened in December 2021 and hosted a programme of sport themed events including key rugby, football and boxing matches. The venue hosted Cheltenham Race Week activities with breakfasts, parking and post-race F&B.

The Wilson Art Gallery and Museum

A programme of activities to keep the community engaged at a time of increased social isolation continued both online, and in person when restrictions allowed, including Artists in Their Residence online residencies, and The Wilson on Tour summer and autumn series hosted at Pittville Pump Room.
The schools’ outreach educational support programme continued making educational assets available to schools.
Events were developed across other Trust sites to keep the community engaged while the art gallery and museum was closed such as the photographic walks around Cheltenham anchored from the Garden Bar.
• An exhibition programme and community exhibition programme was developed during this period ahead of the refurbishment work in readiness for re-opening.

Partnership working

The Trust continues to work closely in partnership with a number of organisations including Cheltenham Borough Council; Marketing Cheltenham; Friends of The Wilson; Wilson Arts Collective; Cheltenham Festivals; Arts Council England; Sport England; Heritage Lottery Fund; Cheltenham BID; Cheltenham International Film Festival to help improve the cultural and community offer in Cheltenham.
The Trust as a lead representative on the Cheltenham Culture Board was integral to the drafting of a new Culture Strategy (still in its formulation) for the town, particularly focused on economic recovery and encouraging footfall and visitors to return following the pandemic
Working with Cheltenham Borough Council and Marketing Cheltenham, the Trust ran a programme of complementary music and entertainment, food and drink at the Garden Bar Orangery and Skillicorne Garden, to support the Welcome Back big screen initiative in Imperial Gardens.

c. Activities for achieving objectives

The covid pandemic profoundly changed the environment in which the Trust operated. 2021/22 was defined as a year of recovery and rebuilding our venue activities in order to protect the future sustainability of the Trust; continuing to strengthen our established partnerships and increase our community profile. Our vision remains consistent - for The Cheltenham Trust, and its venues, to be the go to destination for culture, heritage, and sport and wellbeing attracting growing footfall from residents and visitors.

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

(continued)

d. Main activities undertaken to further the charity's purposes for the public benefit

Throughout the pandemic the Trust has supported the community at a time of social isolation from lockdowns and restrictions on the ability to meet and socialise and the impact on mental, and general, health and wellbeing.

A multi-layered programme of free community events and activities across venues, and online, was provided including summer and autumn live music and events; Christmas programme; themed events, anchored by the cafes. This programme provided inclusive, free entertainment to the community combatting social isolation and the opportunity to meet in safe environments at a time of continued limitations due to the pandemic.

The Trust recognises that the blend of commercial and cultural activity is critical in supporting future sustainability of the venues and services provided. The venues all have hireable spaces to host a diverse range of events and activities. These spaces and opportunities are marketed across the partnership base and business and community networks that the Trust supports.

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

(continued)

Achievements and performance

a. Key financial performance indicators

During the reporting period the Trust continued to operate within the volatility and business disruption of the ongoing covid pandemic. A 2021/22 recovery budget was set for the Trust with the strengthening of cash flow and recovery of our venues pre-covid operating income activities paramount to achievement of this plan.

The Trust continued to seek funding from local and national grant schemes to secure funds to support operational income recovery, including the Job Retention Scheme and Retail, Hospitality and Leisure grants.

External funding bids were secured during 2021/22, including:

Arts Council England Cultural Recovery Fund; financial support for cultural organisations at imminent risk of failure due to covid pandemic
Cheltenham Borough Council grant funding; supporting remobilisation of Trust activities severely impacted by covid pandemic, The Wilson refurbishment project and accreditation support.
Joint funding from the National Lottery Community Fund and European Social Fund for the Go The Extra Mile (GEM) Navigator Developer project
Sport England National Leisure Recovery Fund; supporting leisure facilities throughout covid pandemic

During 2021/22 the Trust had total incoming resources of £8,143k of which £432k was restricted grant funds.

Net operating surplus or the year was £980k on unrestricted funds (excluding FRS102 pension costs). As a notfor profit-charity the Trust reinvests all surpluses within the business.

Cheltenham Leisure and Culture Ltd

The Trust’s wholly owned trading subsidiary, Cheltenham Leisure and Culture Ltd, generated turnover of £2,125k and made a profit of £193k for the year. These profits are being gift-aided to the charity.

The principal activities of the trading company during 2021/22 were predominantly café and bar operations; venue hires for events and weddings and sales of retail items.

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (continued)

b. Investment policy and performance

The Trustees have the power to invest the monies of organisation in such investments as they see fit. In order to support the growth and investment strategy of the Trust and maintain a positive cash flow at all times, surpluses are invested in interest bearing deposit accounts where appropriate.

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (continued)

Financial review

a. Going concern and events since the Balance Sheet date

The covid pandemic continued to impact the 2021/22 financial year, in terms of ongoing disruption to our traditional business model and activities. The Trust’s focus was on recovery and rebuilding of pre-covid venue activities and progressively increase usage of indoor spaces. It also continued to build on the success of new café and outdoor event activities introduced in the height of the pandemic in 2020/21.

The Trust continued to repurpose, learn and adapt in the most challenging of times and has forecast its ‘recovery plus’ budget plan for 2022/23.

Throughout the pandemic the Trust maintained robust controls and cash flow forecasts to minimise its costs and protect cash balances.

The Trust pursued all available government support and funding opportunities throughout the pandemic, including Business Support Grants, the Job Retention Scheme (furlough), Arts Council England Recovery Fund and Sport England National Leisure Recovery Fund. The Trust has worked closely with its key partner Cheltenham Borough Council throughout the pandemic and this relationship continues to provide vital support with our recovery.

A revised five-year business plan has been developed to ensure financial resilience and a robust organisation that can achieve its vision and ambitious programme.

Having considered all these factors, the Trustees believe there are no material uncertainties about the Trust’s ability to continue as a going concern and therefore the financial statements have been prepared on this basis.

b. Reserves policy

The Trustees’ focus on building sufficient reserves to ensure that the Trust is able to deliver its charitable objectives and is resilient and sustainable in the long term. The policy is to utilise any surpluses to build income generating capacity.

The Trust aims to accumulate unrestricted reserves to a target of £975k, equivalent to eight weeks’ operating income. The Trust holds unrestricted reserves (excluding the pension deficit) of £1,054k as at 31 March 2022.

The use of reserves is monitored by the Trust’s Finance Committee.

The pension reserve deficit of £1,736k is explained in note 25, along with Cheltenham Borough Council’s role as guarantor for any LGPS liability in the name of the Trust.

c. Principal funding

Cheltenham Borough Council is our key partner and principal funder of the Trust. During the reporting period, through a Management Fee representing 9% of total income.

Structure, governance and management

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (continued)

a. Constitution

The company and the Group is registered as a charitable company limited by guarantee and was set up by a Trust deed on 18 May 2014.

The company and the Group is constituted under a Trust deed dated 18 May 2014 and is a registered charity number 1158606.

b. Methods of appointment or election of Trustees

The Board shall be composed of at least seven and not more than fifteen Trustees, including two Council appointed Trustees nominated by Cheltenham Borough Council. The Trustees are appointed on a three year term, with an option to extend for a further three years. The Board meets on a minimum of five occasions during the year.

The process to select new Trustees is based on the skills and competencies required by the Board at the time the vacancy arises.

c. Policies adopted for the induction and training of Trustees

On joining the organisation, Trustees are given an induction and introduced to the organisation’s culture.

Trustees have significant experience from various professions and use their skills to inform their responsibilities to ensure the good governance of the charity. The Board membership includes a balance of backgrounds and capabilities relevant to the overall strategic requirements of the Trust, and there is a recognised commitment by the Board to maintain this balance. The Board of Trustees participate in board development opportunities, and the overall board is subject to an annual skills audit that is aligned to the strategic direction of the Trust.

d. Directors indemnities

The Trust holds indemnity insurance with Zurich insurance for the directors with liability cover of £1 million (2021: £1 million). The annual premium for this is £915 (2021: £915).

e. Organisation

The business of the charitable company is delegated to and managed on a day to day basis by the Chief Executive, who is supported by an Executive Management Team of senior managers.

The Board of Trustees has established a Finance Committee, a Governance Committee and Culture and Communities Committee so that specific issues delegated can be studied in detail and recommendations made back to the Board. A Capital Development Committee is also in place to ensure that assets are developed appropriately, and a Trading Company has been established, Cheltenham Leisure and Culture Ltd.

The Chief Executive and the Executive Team advise the Board on strategy development and support for the Board’s governance activities and have responsibility for operating the services of the charity on a day to day basis. The Board undertakes its role using the Code of Conduct for Good Governance and agrees the overall strategic direction of the Trust

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (continued)

f. Related party relationships

None of our Trustees receive remuneration from their work with the charity. Any connection between a Trustee or senior manager of the charity with a production company, contracted actor, performer or exhibitor must be disclosed to the full board of Trustees in the same way as any other contractual relationship with a related party.

In the current year no such related party transactions were reported.

Two Trustees are nominated representatives of Cheltenham Borough Council. Transactions between the Trust and CBC, along with other related party disclosures are recorded in note 27.

The charity’s wholly owned subsidiary, Cheltenham Leisure and Culture Ltd was established to operate commercial activities including retail activities, cafes and catering, venue hires and wedding packages

g. Pay policy for senior staff

The senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Trust on a day to day basis.

The pay of the Chief Executive is reviewed annually by the Board of Trustees. The pay of the key management personnel is periodically reviewed and benchmarked against pay levels in similar professions when recruiting to these roles.

h. Trust staff

During 2021/22 the Trust employed an average of 157 staff.

The Trustees and Executive Management Team support the involvement and engagement of staff in the day to day running, policy making and general management of the charity. Members of staff are kept informed on matters affecting them as employees and on various factors affecting the performance of the Trust.

The policy of the Trust is to offer the same opportunities to a diverse range of people in respect of recruitment and career progression. Where employees of the Trust become disabled, the employee will wherever possible be retained, rehabilitated and retrained.

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (continued)

i. Risk management

The Trustees have adopted a risk management policy from which they have identified potential risks and the likelihood of their occurrence. In addition, they have identified measures to be put in place to mitigate the risks and further action that might be necessary to limit that risk.

The Board receives quarterly risk information at board meetings and sufficient commitments are made to cover known liabilities. The Board and its committees receive regular financial information and manage financial risk accordingly.

The Governance Committee produced a 2021/22 annual report for the Board, reviewing the systems control environment during the period and concluded a ‘partial assurance’ overall assessment (referencing KPMG assurance level classification guidelines).

The key strategic risks facing the Trust are represented as follows:

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Plans for future periods

Future developments

Having responded, and adapted to the challenging environment of the covid pandemic, the Trust, as a charitable organisation, has had to respond to new challenge of the cost of living crisis. This has impacted on the cost of supplies and services, and customer confidence and spending, placing cash flow and income under further pressure.

Having re-purposed its business model and developed new and innovative ways to generate income during the pandemic, the trust has done so again responding swiftly to the new challenges of the economic crisis by reviewing its procurement and resources and delivering additional free and inclusive events and activities.

It continues to seek opportunities to access local and national grant schemes to secure funds to minimise the impact of a reduction in income. Customers and visitors are encouraged online, in the venues and cafes, and at events, exhibitions and activities to make a donation by rounding up at the till, or donating on site or online, or paying what they consider an events or activity were worth when offered for free. All donations help the Trust to continue the extensive, inclusive cultural programme for all the community to enjoy.

The priority continues to be to ensure financial resilience and a robust organisation that can achieve its vision and ambitious programme. The learning and opportunities maximised throughout the pandemic and this first year of recovery are being built on to ensure that the venues indoor and outdoor space are fully utilised for the community, and effectively blend culture and commercial to ensure that the venues and the offer continue to grow and are destinations of choice in Cheltenham. The Trust is working to secure permanent outdoor cafes at the Garden Bar and the pump room as these cafes that grew organically during the pandemic deliver a third of the Trust’s annual income and are the anchor for the community events such as the Queen’s jubilee celebrations and beacon lighting, the Commonwealth Games Baton Relay stopover and the Trust led festivals.

The reopening of The Wilson Art Gallery and Museum has seen a new, vibrant and contemporary refurbishment that is attracting new and diverse audiences. The combination of national and local exhibitions and on site artists in residence is drawing increased footfall. The new arts café immerses visitors in art and the history of Cheltenham and generates income to support access to The Wilson and its exhibitions for free.

Cheltenham Borough Council (CBC) as lead partner and sponsor (both the management agreement fee and capital investment funding) supports the Trust’s new five-year business plan that sets out the opportunities to achieve growth and to meet the vision and goals for the Trust and the council. The opportunities include delivering improvement in all the venues to increase the number of visitors and their experience, attract new audiences and improve the cultural and leisure offer ensuring that everyone can access these services and facilities.

We will continue to grow and further strengthen our position and reputation as Cheltenham’s leading cultural and leisure provider and a major contributor in boosting the local and visitor economy and helping to improve the health and wellbeing of the local community.

Information on fundraising practices

Fundraising activities are carried out directly by the Trust, by the Trust’s employees.

Fundraising activities involve identifying external grants and funding opportunities available to support our charitable, cultural and community activities, and inviting donations by those using and enjoying our facilities within the local community, in order that we can continue to invest in and develop in our facilities and programmes.

Access to our services

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Plans for future periods (continued)

The Trust remains committed to equal access to our services for everyone. The Trust strives to be an open employer; welcoming staff and volunteers from all backgrounds. The Trust aims to reflect the diversity of the population in both our user group and our staffing and Trustee mix.

Statement of Trustees' responsibilities

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

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles of the Charities SORP (FRS 102);
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.

Auditors

A resolution to appoint Randall & Payne LLP as auditor of the company was approved at a meeting of Trustees on 21st June 2019 and is renewed annually.

Approved by order of the members of the board of Trustees and signed on their behalf by:

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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................................................
Louis Eperjesi
Chair
Date:
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THE CHELTENHAM TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CHELTENHAM TRUST

Opinion

We have audited the financial statements of The Cheltenham Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, 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 Group's and of the parent charitable company's affairs as at 31 March 2022 and of the Group's incoming resources and application of resources, including its income and expenditure 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 Charities Act 2011.

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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.

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THE CHELTENHAM TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CHELTENHAM TRUST (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or
the parent charitable company has not kept sufficient accounting records; or
the parent charitable company financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, 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 Group's and the parent 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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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THE CHELTENHAM TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CHELTENHAM TRUST (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 Auditors' 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.

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:

Our audit planning process gave consideration to the risk of material misstatement in the financial statements, using the calculated materiality level which itself factored in the nature of the Charity’s operations and the interpreted levels of inherent and control risk.

In assessing the risk of fraud we reviewed management’s own assessment of potential for fraud within the entity and reviewed judgements made by management to identify possible bias, in addition to any opportunity and incentive for fraud that are in inherent in the nature of the Charity’s operations. Our detailed testing included review of accounting estimates and judgements and validation of prime ledger entries.

We confirmed our knowledge of the legal and regulatory environment of the entity through discussions with management. We analysed all information available to us in respect of relevant laws and regulations, including the Companies Act 2006, Charities Act 201, relevant UK tax legislation and we enquired with management as to any possible breached in the aforementioned.

We agreed the accuracy of the financial statements to the supporting management information provided by the client and tested individually on a sample basis the income and expenditure in the financial statements to consider the business rationale behind the transactions and the accuracy of the financial records.

Our audit testing did not identify and issues in respect of the matters listed above, including fraud.

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 Auditors' Report.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

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THE CHELTENHAM TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CHELTENHAM TRUST (CONTINUED)

Ryan Moore CA (Senior statutory auditor) For and on behalf of Randall & Payne LLP Shurdington Road Cheltenham Gloucestershire GL51 4GA

Date:

Randall & Payne LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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THE CHELTENHAM TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Note Income from: Donations and legacies 3 Charitable activities 4 Other trading activities 5 Investments 6 Total income Expenditure on: Raising funds Charitable activities 7 Total expenditure Net movement in funds before other recognised gains/(losses) Other recognised gains/(losses): Actuarial gains/(losses) on defined benefit pension schemes 25 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Restricted funds 2022 £ - 432,358 - - 432,358 - 417,418 417,418 14,940 - 14,940 287,891 14,940 302,831	Unrestricted funds 2022 £ 9,484 5,576,655 2,124,902 - 7,711,041 1,932,306 4,966,851 6,899,157 811,884 1,165,000 1,976,884 (2,658,203) 1,976,884 (681,319)	Total funds 2022 £ 9,484 6,009,013 2,124,902 - 8,143,399 1,932,306 5,384,269 7,316,575 826,824 1,165,000 1,991,824 (2,370,312) 1,991,824 (378,488)	Total funds 2021 £ 29,688 3,681,987 834,311 27 4,546,013 555,448 3,692,490 4,247,938 298,075 (1,497,000) (1,198,925) (1,171,387) (1,198,925) (2,370,312)

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 29 to 53 form part of these financial statements.

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THE CHELTENHAM TRUST REGISTERED NUMBER: 09021431

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022

Note Fixed assets Tangible assets 12 Current assets Stocks 14 Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 17 Net assets excluding pension liability Defined benefit pension scheme liability 25 Total net assets Charity funds Restricted funds 19 Unrestricted funds General funds 19 Unrestricted funds excluding pension asset 19 Pension reserve 19 Total unrestricted funds 19 Total funds	78,207 255,928 2,545,730 2,879,865 (1,637,100) 1,054,681 1,054,681 (1,736,000)	2022 £ 114,747 114,747 1,242,765 1,357,512 - 1,357,512 (1,736,000) (378,488) 302,831 (681,319) (378,488)	52,297 286,327 1,804,450 2,143,074 (1,856,730) 74,797 74,797 (2,733,000)	2021 £ 77,373 77,373 286,344 363,717 (1,029) 362,688 (2,733,000) (2,370,312) 287,891 (2,658,203) (2,370,312)

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THE CHELTENHAM TRUST REGISTERED NUMBER: 09021431

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022

The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 151 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................ Louis Eperjesi (Chair of Trustees) Date:

The notes on pages 29 to 53 form part of these financial statements.

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THE CHELTENHAM TRUST REGISTERED NUMBER: 09021431

CHARITY BALANCE SHEET AS AT 31 MARCH 2022

Note Fixed assets Tangible assets 12 Investments 13 Current assets Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets / liabilites Total assets less current liabilities Creditors: amounts falling due after more than one year 17 Net assets / liabilites excluding pension liability Defined benefit pension scheme liability 25 Total net assets	645,486 1,256,681 1,902,167 (1,520,507)	2022 £ 106,886 1 106,887 381,660 488,547 - 488,547 (1,736,000) (1,247,453)	439,931 1,544,121 1,984,052 (2,363,317)	2021 £ 66,611 1 66,612 (379,265) (312,653) (1,029) (313,682) (2,733,000) (3,046,682)

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THE CHELTENHAM TRUST REGISTERED NUMBER: 09021431

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022

Note Charity funds Restricted funds: Restricted funds 19 Restricted funds excluding pension asset 19 Total restricted funds 19 Unrestricted funds General funds 19 Unrestricted funds excluding pension liability 19 Pension reserve 19 Total unrestricted funds 19 Total funds	302,831 302,831 185,716 185,716 (1,736,000)	2022 £ 302,831 (1,550,284) (1,247,453)	287,891 287,891 (601,573) (601,573) (2,733,000)	2021 £ 287,891 (3,334,573) (3,046,682)

The Charity's net movement in funds for the year was £ 1,799,228 (2021 - £(1,477,788)) .