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2021-12-31-accounts

Charity Registration No. 1161046

Company Registration No. 08898891 (England and Wales)

SHELLEY THEATRE TRUST

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

4 Brackley Close Bournemouth International Airport Christchurch Dorset BH23 6SE

SHELLEY THEATRE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr S J Dunne Mrs N S Dunne Mr G P Jefferson Mr A P Proctor Mr E A Lee

Charity number 1161046 Company number 08898891 Registered office 4 Brackley Close Bournemouth International Airport Christchurch Dorset BH23 6SE

Independent examiner

Harrisons Chartered Accountants 4 Brackley Close Bournemouth International Airport Christchurch Dorset BH23 6SE

SHELLEY THEATRE TRUST

CONTENTS

Page
Trustees' report 1 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 14

SHELLEY THEATRE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Chairman's statement

At the time of preparing this report Shelley Theatre remains closed due to the COVID pandemic. The Theatre closed on 17th March 2020 and is yet to be in a financial position to reopen.

After a highly successful 2019, a very promising and exciting start to 2020 with a full program under way, also being fully booked for the remainder of a year, it was a massive shock and a great disappointment to have no option but to close the doors at short notice.

However, the Shelley Theatre Trust is in a very fortunate position to have the support of sponsors who are underwriting the finances of the Shelley Theatre space to the extent of 'survival' of the project until it can emerge from this pandemic. This situation continues a year on and the accounts show the huge financial support that the Theatre has received from the Dunne and Proctor families. What the accounts cannot show is the support of works manager, Roger Eede, who has been outstanding in concreting and painting and supporting the employed trades securing the buildings future.

The Trustees would very much like to reopen but they must be mindful of the costs. This January was a prime example of the risks when the Omicron variant arrived and we had to cancel the intended re-opening show, the Alternative Pantomime. This flare up in covid impacted on asking volunteers to assist in the re-opening of the Theatre and managing the risk to them.

Our focus this year has been on applying for funding grants to build a credit balance ring fenced to fund the first six months of set up for staff wages. We cannot offer employment without enough funds in place to pay a necessary team for the long lead time it takes to set up a Theatre programme, securing shows wishing to perform, contracting with them, also setting up the marketing and selling of tickets. The Venue also needs a considerable reset from lockdown which as the accounts testify has had a considerable amount of background infrastructure works done. The replacing of rotten and decaying wood under floors and windows are all things that would have gone unnoticed but are important for the long term.

The Theatre has no employees at this time, though the former Venue Manager is being paid for by a supporting business to manage urgent issues, refunds, and payments to service providers. Also applying for funding to prepare for opening when the Trustees are confident that there are adequate funds available for wages and enough disposable income from the community from which it draws its audience. This will ensure the revenue cycle will be possible to maintain.

Refunds to patrons have been met by support from outside resources, many patrons have been very generous in donating their ticket costs to help the survival of the Theatre, others have been kind in deferring their refunds and hold credit notes for future shows when we will look forward to welcoming them back. We are grateful for their assistance in planning our cashflow.

In summary the Trustees of Shelley Theatre are managing the property asset, planning for the future to ensure that the substantial time, cost, and effort injected into the Theatre over the previous years will not have been in vain.

SHELLEY THEATRE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Objectives and activities

The ongoing Objects and Activities of the charity will remain unchanged as we emerge from the pandemic.

The Objects of the charity as set out in its Articles of Association are, the advancement of the education of the public in visual, performing, cinematic and literary arts including, without limitation, drama, ballet, music, singing, literature, sculpture and painting; and any other charitable purpose that may at the discretion of the Trustees be considered ancillary to the Articles above or which can conveniently be carried on in conjunction with the Articles.

Ongoing activities include a developing selection of arts related programmes including live performances involving community presentations and high quality touring events. Also, a wide range of films are shown at competitive prices. The Theatre will continue to bring high quality arts events from a variety of sources which will seek to enhance the social community experience of those attending and improve the quality of life of residents local to Boscombe and the Bournemouth area.

The Trustees continue to work to re-open Shelley Theatre to re-establish itself as a hub of local community activity across the whole spectrum of residents in the area.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

As referred to in the Chairman's statement, the Theatre closed on 17th March 2020 due to the COVID pandemic and is yet to re-open therefore the level of activity in 2021 is significantly lower than in 2020.

Financial review

During the year The Charity generated a total income of £107,370 (2020: £147,557).

Total expenditure amounted to £117,895 (2020: £214,513).

Therefore there is a deficit for the year of £10,525 (2020: £66,956) resulting in a deficit on the balance sheet of £13,364 (2020: £2,839) at 31 December 2021.

During the year all expenditure was closely monitored by way of regular detailed management reports extracted from the Sage Accounting system. As the longer-term effects of the pandemic became evident during the year immediate and substantial cost cuts were made. The deficit was allowed only in the full knowledge of the ongoing support available from the Trusts’ sponsors.

The Trustees are confident that with no external debt and with the support of the sponsors, the Trust will continue to operate.

Risk assessment

The Trustees continually review risk throughout the year and consider those to which the charity would normally be exposed, particularly business, operational and financial. The Trustees consider the principal risks to the charity against which it cannot be insured remain as:

SHELLEY THEATRE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

During the pandemic the Trust has the full support of its sponsors and when times return to a new normal the above operational risks will continue to be covered by a system of internal control and monthly reporting to manage, reduce and address the identified risks immediately. In developing Shelley Theatre, a firm policy has been agreed that the Trust, other than by short term “trading” liabilities, will not take on any external debt or liability.

A formal policy on cash reserves has been agreed to formalise a protected balance of £25,000 as a reserve when appropriate. As the Theatre will continue to grow over the next few years and the Trustees wish to ensure that when the proposed protected reserve is set there will be adequate available funds, the position will be reviewed again annually.

These measures and policies will ensure that Shelley Theatre Trust’s core activity would continue during a period of unforeseen difficulty, and further income support from the use of other rooms will add strength to the Theatre’s growth.

As already indicated, it is a firm policy of the Trustees that no funding will be taken in any form which may create an ongoing financial liability on the Trust.

Structure, governance and management

Governing document

Shelley Theatre Trust is a company limited by guarantee governed by its Articles of Association dated 17 February 2014. The Trust is registered as a charity with the Charity Commission. The Trustees have been appointed as Directors and Trustees in accordance with the Articles and within the meaning of the Companies Act and charity law. Their purpose is to establish strategies and lead the Theatre and its development within the terms of the Articles.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mr S J Dunne

Mrs N S Dunne Mr G P Jefferson Mr A P Proctor Mr E A Lee

The Trustees continue to look for further suitable Directors/Trustees who could provide a wider and longer-term expertise for the Trust.

The Board of Trustees consisting of not less than four members with no upper limit administers the charity and monitors, although does not directly control - Shelley Theatre Company Limited. Shelley Theatre Company Ltd is a wholly independent trading entity which works with the Trust managing food, beverage, and other activities to assist in the raising of funds for the ongoing work of the Theatre.

The board of the Trust meets as often as necessary to discuss, activity, development, finance and all aspects of the charity's work. It is intended that in line with the rate that the Theatre grows the responsibilities of the Trustees will in due course be boosted by new appointments of suitable persons who can provide the necessary expertise and support required.

All Board Directors are company directors and charity Trustees.

The Theatre is run under the guidance of the Trustees by full and part time employees plus a strong team of volunteers. Our grateful thanks to the support provided by them all up until closure, and for their patience during these difficult times

SHELLEY THEATRE TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees' report was approved by the Board of Trustees.

Mr E A Lee

Trustee Dated: 26 September 2022

SHELLEY THEATRE TRUST

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SHELLEY THEATRE TRUST

I report to the trustees on my examination of the financial statements of Shelley Theatre Trust (the charity) for the year ended 31 December 2021.

Responsibilities and basis of report

As the trustees of the charity (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 financial statements of the charity 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 financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

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 that in any material respect:

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

Harrisons Chartered Accountants

4 Brackley Close Bournemouth International Airport Christchurch Dorset BH23 6SE

Dated: 26 September 2022

SHELLEY THEATRE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
64,449
-
Charitable activities
4
42,921
-
Investments
5
-
-
Total income
107,370
-
Expenditure on:
Charitable activities
6
117,527
368
Net expenditure for the year/
Net movement in funds
(10,157)
(368)
Fund balances at 1 January
2021
(4,656)
1,817
Fund balances at 31
December 2021
(14,813)
1,449		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
64,449
44,294
-
42,921
103,256
-
-
7
-
107,370
147,557
-
117,895
214,022
491
(10,525)
(66,465)
(491)
(2,839)
61,809
2,308
(13,364)
(4,656)
1,817		 Total
2020
£
44,294
103,256
7
147,557
214,513
(66,956)
64,117
(2,839)

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

SHELLEY THEATRE TRUST

BALANCE SHEET

AS AT 31 DECEMBER 2021

2021 2020
Notes £ £ £ £
Fixed assets
Tangible assets 10 10,688 14,249
Current assets
Debtors 11 9,884 17,224
Cash at bank and in hand 18,887 20,011
28,771 37,235
Creditors: amounts falling due within
one year 12 (52,823) (54,323)
Net current liabilities (24,052) (17,088)
Total assets less current liabilities (13,364) (2,839)
Income funds
Restricted funds 13 1,449 1,817
Unrestricted funds (14,813) (4,656)
(13,364) (2,839)

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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.

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

The financial statements were approved by the Trustees on 26 September 2022

Mr E A Lee Trustee

Company Registration No. 08898891

SHELLEY THEATRE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Shelley Theatre Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 4 Brackley Close, Bournemouth International Airport, Christchurch, Dorset, BH23 6SE.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

SHELLEY THEATRE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met . Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable . A grant received before the recognition criteria are satisfied is recognised as a liability.

1.5 Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 25% reducing balance Equipment 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

1.9 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

SHELLEY THEATRE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Donations and gifts 31,039 1,765
Government grant income 33,410 42,529
64,449 44,294

Government grant income is in respect of COVID-19 support.

Donated goods and services

The trust benefits greatly from the involvement of its many volunteers. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.

4 Charitable activities

Flat rental
Theatre
Flat rental
2021
2020
2020
£
£
£
Ticket and program sales
-
74,133
-
Venue hire
-
7,130
-
Charitable rental income
42,921
-
21,993
42,921
81,263
21,993		 Total
2020
£
74,133
7,130
21,993
103,256

SHELLEY THEATRE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

5 Investments

Interest receivable
Charitable activities
Theatre
Flat rental
Total
2021
2021
2021
£
£
£
Charitable activities
88,950
24,934
113,884
Share of governance costs
(see note 7)
4,011
-
4,011
Analysis by fund
Unrestricted funds
92,593
24,934
117,527
Restricted funds
368
-
368
92,961
24,934
117,895
Support costs
Governance
costs
£
Legal and professional fees
4,011
4,011
Analysed between
Charitable activities
4,011

6 Charitable activities

7 Support costs

Governance costs includes payment of £3,351 (2020- £4,589) for independent examination fees.

8 Trustees

None of the trustees received any remuneration or benefits from the charity during the year.

SHELLEY THEATRE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

9 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
2 5
Employment costs 2021 2020
£ £
Wages and salaries 23,841 63,805
Other pension costs 122 204
23,963 64,009

During the year redundancy payments totalling £750 (2020: £5,451) were paid to employees.

There were no employees whose annual remuneration was more than £60,000.

10 Tangible fixed assets

Fixtures and
fittings
Equipment
£
£
Cost
At 1 January 2021
3,979
46,516
At 31 December 2021
3,979
46,516
Depreciation and impairment
At 1 January 2021
1,743
34,503
Depreciation charged in the year
558
3,003
At 31 December 2021
2,301
37,506
Carrying amount
At 31 December 2021
1,678
9,010
At 31 December 2020
2,236
12,013		 Total
£
50,495
50,495
36,246
3,561
39,807
10,688
14,249

SHELLEY THEATRE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

11 Debtors

Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 2021
£
645
4,347
4,892
9,884		 2020
£
(275)
13,857
3,642
17,224

12 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
-
2,337
12,663
37,823
52,823		 2020
£
371
79
7,202
46,671
54,323

13 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at Resources Balance at Resources Balance at
1 January 2020 expended
1 January 2021		 expended 31 December
2021
£ £ £ £ £
Refurbishment Fund 2,308 (491) 1,817 (368) 1,449
14 Analysis of net assets between funds
Unrestricted Restricted
Total		 Unrestricted Restricted
Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Fund balances at 31 December 2021 are
represented by:
Tangible assets 9,584 1,104 10,688 12,777 1,472 14,249
Current assets/(liabilities) (24,397) 345 (24,052) (17,433) 345 (17,088)
(14,813) 1,449 (13,364) (4,656) 1,817 (2,839)

SHELLEY THEATRE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

15 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

At the balance sheet date £7,202 (2020 - £7,202) was owed to two trustees, Mr S J Dunne and Mr A P Proctor.

Miss Z Dunne, daughter of two of the trustees, received remuneration of £14,250 (2020 - £19,000).

Shelley Theatre Company Limited is a company with common directors. During the year £51,723 (2020 - £39,699) was paid to Shelley Theatre Company Limited to facilitate repair work in the theatre. At the balance sheet date £5,461 was owed to Shelley Theatre Company Limited. In the previous year £12,510 was owed from Shelley Theatre Company Limited.

Estante 032 Limited is a company with common directors. During the year rent of £1 (2020 - £1) was paid. An informal lease is in place with Estante 032 Limited which allows Shelley Theatre Trust to benefit from the rental income received in respect of flats owned by the company.

Aggregate donations received from trustees during the year totalled £12,000 (2020 - £nil).