COMPANY REGISTRATION NUMBER: 08218130 CHARITY REGISTRATION NUMBER: 1158876
Solent Music Festival Company Limited by Guarantee Unaudited Financial Statements
31 December 2021
SAINT & CO
Chartered accountants 12/13 Church Street Whitehaven Cumbria CA28 7AY
Solent Music Festival
Company Limited by Guarantee
Financial Statements
Year ended 31 December 2021
| Page | |
|---|---|
| Directors' annual report (incorporating the director's report) | 1 |
| Independent examiner's report to the directors | 4 |
| Statement of financial activities (including income and expenditure | |
| account) | 6 |
| Statement of financial position | 7 |
| Notes to the financial statements | 8 |
| The following pages do not form part of the financial statements | |
| Detailed statement of financial activities | 15 |
| Notes to the detailed statement of financial activities | 16 |
Solent Music Festival
Company Limited by Guarantee
Directors' Annual Report (Incorporating the Director's Report)
Year ended 31 December 2021
The directors, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 December 2021.
Reference and administrative details
Registered charity name Solent Music Festival Charity registration number 1158876 Company registration number 08218130 Principal office and registered 28 Lavender Hill office Tonbridge TN9 2AT England
The directors
Mrs D L Johnston Ms K A Spencer Ms J A Brown Independent examiner Ian Scott BA(hons), FCA, DChA Saint & Co. 12/13 Church Street Whitehaven Cumbria CA28 7AY
Structure, governance and management
The company is a registered charity limited by guarantee. The charity was incorporated on 18 September 2012.
RISK MANAGEMENT
The directors have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports be produced so that the necessary steps can be taken to lessen the risks.
REMUNERATION
All directors give their time freely and no directors remuneration was paid in the year.
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Solent Music Festival
Company Limited by Guarantee
Directors' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
Objectives and activities
The objectives of the centre are to advance, improve, develop and maintain public education in, and appreciation of, the art and science of music in all its aspects by any means the trustees see fit, including through the presentation of public concerts and musical events.
We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.
Achievements and performance
After hosting a scaled down event last year, the festival in September 2021 consisted of 6 evening concerts plus a family event. Ticket sales were reduced compared to pre-covid levels, however the gap was bridged by sponsorship. Although there was a small deficit in 2021, there is still a healthy general surplus for the charity to continue forward.
Financial review
Following a deficit of £1,072 on the general fund there was a total of £27,884 in net assets on the general fund.
RESERVES POLICY
It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to about 12 months unrestricted expenditure plus an allowance for any forecast shortfall on project expenditure. This provides sufficient funds to cover management and administration and support costs. At the end of the financial period unrestricted reserves are £27,884. Estimated unrestricted expenses for the next 12 months are £35,000.
Plans for future periods
Another week-long festival will be held in September 2022. Tickets are being released gradually with ticket sales showing to be similar to 2021.
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
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Solent Music Festival
Company Limited by Guarantee
Directors' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
The directors' annual report was approved on 1 September 2022 and signed on behalf of the board of trustees by:
Mrs D L Johnston Director
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Solent Music Festival
Company Limited by Guarantee
Independent Examiner's Report to the Directors of Solent Music Festival
Year ended 31 December 2021
I report to the directors on my examination of the financial statements of Solent Music Festival ('the charity') for the year ended 31 December 2021.
Responsibilities and basis of report
As the directors of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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the financial statements do not accord with those records; or
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the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or
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the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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Solent Music Festival
Company Limited by Guarantee
Independent Examiner's Report to the Directors of Solent Music Festival (continued)
Year ended 31 December 2021
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Ian Scott BA(hons), FCA, DChA Saint & Co. Independent Examiner 12/13 Church Street Whitehaven Cumbria CA28 7AY
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Solent Music Festival
Company Limited by Guarantee
Statement of Financial Activities (including income and expenditure account)
Year ended 31 December 2021
| 2021 | 2021 | 2020 | ||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Donations and legacies | 5 | 19,920 | 19,920 | 18,975 |
| Charitable activities | 6 | 24,516 | 24,516 | 6,570 |
| Other income | 7 | 3,408 | 3,408 | 2,104 |
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| Total income | 47,844 | 47,844 | 27,649 | |
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| Expenditure | ||||
| Expenditure on charitable activities | 8,9 | 48,916 | 48,916 | 23,987 |
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| Total expenditure | 48,916 | 48,916 | 23,987 | |
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| Net (expenditure)/income and net movement in funds | (1,072) | (1,072) | 3,662 | |
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| Reconciliation of funds | ||||
| Total funds brought forward | 28,956 | 28,956 | 25,294 | |
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| Total funds carried forward | 27,884 | 27,884 | 28,956 | |
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The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 8 to 13 form part of these financial statements.
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Solent Music Festival
Company Limited by Guarantee
Statement of Financial Position
31 December 2021
| 2021 | 2020 | |||
|---|---|---|---|---|
| Note | £ | £ | £ | |
| Current assets | ||||
| Cash at bank and in hand | 28,273 | 29,339 | ||
| Creditors: amounts falling due within one year | 13 | 389 | 383 | |
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| Net current assets | 27,884 | 28,956 | ||
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| Total assets less current liabilities | 27,884 | 28,956 | ||
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| Net assets | 27,884 | 28,956 | ||
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| Funds of the charity | ||||
| Unrestricted funds | 27,884 | 28,956 | ||
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| Total charity funds | 14 | 27,884 | 28,956 | |
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For the year ending 31 December 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
These financial statements were approved by the board of trustees and authorised for issue on 1 September 2022, and are signed on behalf of the board by:
Mrs D L Johnston Director
The notes on pages 8 to 13 form part of these financial statements.
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Solent Music Festival
Year ended 31 December 2021
Company Limited by Guarantee
Notes to the Financial Statements
1. General information
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 28 Lavender Hill, Tonbridge, TN9 2AT, England.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Significant judgements
The directors consider there were no significant judgements in preparing the financial statements.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The directors consider there are no key sources of estimation uncertainty.
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Solent Music Festival
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
3. Accounting policies (continued)
Fund accounting
General funds are unrestricted which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income and gains are allocated to the appropriate fund.
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
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income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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legacy income is recognised when receipt is probable and entitlement is established.
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income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
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income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
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Solent Music Festival
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
3. Accounting policies (continued)
Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.
Costs in respect of charitable activities relate to the operating costs of running the recreation centre. Management and administration costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
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Solent Music Festival
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
3. Accounting policies (continued)
Financial instruments (continued)
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. Limited by guarantee
Every member undertakes, if the company is dissolved while he or she is a member or within 12 months after he or she ceases to be a member, to contribute such sum (not exceeding £1) as may be deemed of him or her towards the payment of the debts and liabilities of the company incurred before he or she ceases to be a member, and of the costs, charges and expenses of winding up, and the adjustment of the rights and of the contributories among themselves.
5. Donations and legacies
| Donations and legacies | ||||
|---|---|---|---|---|
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Donations | ||||
| Donations | 10,420 | 10,420 | 11,975 | 11,975 |
| Sponsorship | ||||
| Sponsorship | 9,500 | 9,500 | 7,000 | 7,000 |
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| 19,920 | 19,920 | 18,975 | 18,975 | |
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6. Charitable activities
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Ticket and programme sales | 24,086 | 24,086 | 6,310 | 6,310 |
| Advertising | 430 | 430 | 260 | 260 |
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| 24,516 | 24,516 | 6,570 | 6,570 | |
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Solent Music Festival
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
7. Other income
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
|---|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | ||
| £ | £ | £ | £ | ||
| Gift aid | 3,408 | 3,408 | 2,104 | 2,104 | |
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| 8. | Expenditure on charitable activities | by fund type | |||
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2021 | Funds | 2020 | ||
| £ | £ | £ | £ | ||
| Music festival | 43,204 | 43,204 | 22,278 | 22,278 | |
| Support costs | 5,712 | 5,712 | 1,709 | 1,709 | |
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| 48,916 | 48,916 | 23,987 | 23,987 | ||
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| 9. | Expenditure on charitable activities | by activity type | |||
| Activities | |||||
| undertaken | Total funds | Total fund | |||
| directly Support costs | 2021 | 2020 | |||
| £ | £ | £ | £ | ||
| Music festival | 43,204 | 5,712 | 48,916 | 23,987 | |
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| 10. | Independent examination fees | ||||
| 2021 | 2020 | ||||
| £ | £ | ||||
| Fees payable to the independent examiner for: | |||||
| Independent examination of the financial statements | 654 | 660 | |||
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11. Staff costs
The average head count of employees during the year was Nil (2020: Nil).
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
12. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
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Solent Music Festival
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
13. Creditors: amounts falling due within one year
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| £ | £ | ||||
| Accruals and deferred income | 336 | 330 | |||
| Director loan accounts | 53 | 53 | |||
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| 389 | 383 | ||||
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| 14. | Analysis of charitable funds | ||||
| Unrestricted funds | |||||
| At | At | ||||
| 1 January 202 | 31 December | ||||
| 1 | Income | Expenditure | 2021 | ||
| £ | £ | £ | £ | ||
| General funds | 28,956 | 47,844 | (48,916) | 27,884 | |
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| At | At | ||||
| 1 January 202 | 31 December | ||||
| 0 | Income | Expenditure | 2020 | ||
| £ | £ | £ | £ | ||
| General funds | 25,294 | 27,649 | (23,987) | 28,956 | |
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| 15. | Analysis of net assets between funds | ||||
| Unrestricted | Total Funds | ||||
| Funds | 2021 | ||||
| £ | £ | ||||
| Current assets | 28,273 | 28,273 | |||
| Creditors less than 1 year | (389) | (389) | |||
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| Net assets | 27,884 | 27,884 | |||
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| Unrestricted | Total Funds | ||||
| Funds | 2020 | ||||
| £ | £ | ||||
| Current assets | 29,339 | 29,339 | |||
| Creditors less than 1 year | (383) | (383) | |||
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| Net assets | 28,956 | 28,956 | |||
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Solent Music Festival
Company Limited by Guarantee
Management Information Year ended 31 December 2021
The following pages do not form part of the financial statements.
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Solent Music Festival
Company Limited by Guarantee
Detailed Statement of Financial Activities
Year ended 31 December 2021
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Income and endowments | ||
| Donations and legacies | ||
| Donations | 10,420 | 11,975 |
| Sponsorship | 9,500 | 7,000 |
|
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| 19,920 | 18,975 | |
|
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| Charitable activities | ||
| Ticket and programme sales | 24,086 | 6,310 |
| Advertising | 430 | 260 |
|
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| 24,516 | 6,570 | |
|
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| Other income | ||
| Gift aid | 3,408 | 2,104 |
|
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| Total income | 47,844 | 27,649 |
|
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| Expenditure | ||
| Expenditure on charitable activities | ||
| Artist fees | 39,450 | 20,648 |
| Venue hire | 1,810 | 300 |
| Instrument hire | 1,944 | 1,330 |
| Advertising | 246 | 120 |
| Food, drink and hospitality | 2,377 | 400 |
| Sundry expenses | 1,889 | 748 |
| Travel and subsistence | 200 | – |
| Accountancy fees | 342 | 348 |
| Printing, postage and stationary | 658 | 93 |
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| 48,916 | 23,987 | |
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| Total expenditure | 48,916 | 23,987 |
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| Net (expenditure)/income | (1,072) | 3,662 |
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Solent Music Festival
Company Limited by Guarantee
Notes to the Detailed Statement of Financial Activities
Year ended 31 December 2021
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Expenditure on charitable activities | ||
| Music festival | ||
| Activities undertaken directly | ||
| Artist fees | 39,450 | 20,648 |
| Venue hire | 1,810 | 300 |
| Instrument hire | 1,944 | 1,330 |
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| 43,204 | 22,278 | |
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| Support costs | ||
| Advertising | 246 | 120 |
| Food, drink and hospitality | 2,377 | 400 |
| Sundry expenses | 1,889 | 748 |
| Travel and subsistence | 200 | – |
| Accountancy fees | 342 | 348 |
| Printing, postage and stationary | 658 | 93 |
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| 5,712 | 1,709 | |
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| Expenditure on charitable activities | 48,916 | 23,987 |
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