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2023-06-30-accounts

Pavilions Teignmouth

Trustees’ Annual Report and Accounts

Year Ended 30 June 2023

Registered Charity Number: 1162175

Pavilions Teignmouth

Financial Statements

Year Ended 30 June 2023

Contents Page
Administrative Details 1
Trustees’ Annual Report 2 to 5
Independent Examiner’s Report to the Trustees 6
Statement of Financial Activities (Incorporating Income and Expenditure Account) 7 to 8
Balance Sheet 9
Notes to the Financial Statements 10 to 17

Pavilions Teignmouth

Administrative Details

Year Ended 30 June 2023

Trustees: Margaret Davidson, Chair
Richard Brett, Trustee
Roger Smith, Trustee
John Stratton OBE, Trustee (resigned 3 July 2023)
Tony Smith, Trustee
Chris Parfitt, Trustee
Patricia Anne Schooling (appointed 6 November 2023)
Martin Keith Phillips (appointed 6 November 2023)
Martin Lacey Gandar (appointed 6 November 2023)
Principal Office: Pavilions Teignmouth
The Den
Teignmouth
Devon
TQ14 8BG
Charity Number: 1162175
General Manager: Nikki Small
Accountants: Francis Clark LLP
Sigma House
Oak View Close
Edginswell Park
Torquay
Devon
TQ2 7FF

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Pavilions Teignmouth

Trustees’ Annual Report

Year Ended 30 June 2023

The Trustees present their annual report together with the financial statements for the year to 30 June 2023.

Objectives and Activities

The principal object of Pavilions Teignmouth is to promote the arts for the public benefit by the provision of a community arts centre.

Our Mission:

Pavilions Teignmouth is an arts centre for residents of and visitors to Teignmouth. It provides opportunities for all, regardless of age or ability through volunteering, working, learning, participating, watching, exploring, and building and growing.

Our Vision:

Pavilions Teignmouth will be a captivating and welcoming place, bringing people together to share, inspire, nurture, educate and enjoy arts and culture.

Our Aims and Objectives:

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.

The Pavilions Business Plan outlines a set of aims and objectives under five main headings:

Activities for achieving our Objectives:

Our Artistic Statement underpins all of our activities:

Our Programming Strategy sets out our intent:

Pavilions Teignmouth relies on donations, grants and the income from fees and charges to cover its operating costs. Affordability and access to our programme is important to us and is reflected in our hiring and pricing policy which favours community organisations and activities.

We actively seek to involve the local community, arts organisations and businesses in our activities through outreach and facilitation of and participation in local cultural and artistic initiatives and groups.

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Pavilions Teignmouth

Trustees’ Annual Report

Year Ended 30 June 2023

Main activities undertaken to further the Charity’s purposes for public benefit

Following the impact of Covid and in light of the current economic circumstances, there has been an encouraging though slow recovery in audience participation and engagement.

Overall, there was a steady return of audience numbers with an increase in attendance figures over the previous year. Film attracted just over 1000 more attendances and live performances attracted 2000 more attendances. This is an encouraging trend, especially in light of the current economic situation.

Volunteers

During this year 35 volunteers have supported pavilions Teignmouth in a variety of roles. The trustees recognise and value their efforts without which the centre could not operate.

Financial Review

Going Concern

There has been a steady and encouraging return of income levels although they have not yet fully recovered to pre- Covid levels. In 2021/22 unrestricted reserves were £101,524 and have decreased to £95,449. This is sufficient to cover repairs and other expenditure required such as replacement and updating of equipment and unexpected disruption. Although the trustees believe that the ideal level of reserves would be £120,000 they are confident that recent recovery suggests this will be achieved in the near future. Also, current funds are sufficient to meet current needs.

The board is also reassured by a loan facility of £50,000 made available by Teignbridge District Council to be drawn down if necessary.

For this reason The Board continues to adopt the going concern basis in preparing financial statements.

Financial Review

The venue derived income from its activities including rental and hire income, ticket sales, advertising and sundry sales. It also received a grant of £316 from Teignbridge District Council and a £200 Co-op grant. Donation income was £508. Total income of £453,923 was recorded in the year together with total expenditure of £460,198, resulting in a deficit of £6,275 reducing total reserves at the year end.

Reserves Policy

Reserves are needed to bridge the gap between spending and receiving of income. It must also cover unplanned repairs and other expenditure due to unexpected disruption. Wear and tear and technical obsolescence will also lead to a need to replace equipment and infrastructure. Although the trustees believe that the ideal level of reserves would be £120,000 they are confident that recent recovery

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Pavilions Teignmouth

Trustees’ Annual Report

Year Ended 30 June 2023

suggests this will be achieved in the near future. Also, current funds are sufficient to meet current needs.

The board is also reassured by a loan facility of £50,000 made available by Teignbridge District Council to be drawn down if necessary.

Future plans

The trustees are mindful of the challenges due to increasing energy costs and tightening household incomes that impact both the venue and our audiences. However, this year has shown a recovery and we will continue to build on this. Through programming and marketing the aim is to continue to rebuild the confidence of our audiences and users by providing an exciting range of activities and events in an attractive and safe environment.

Structure, Governance and Management

The charity (CIO)was incorporated on12 June 2015 and commenced trading on that date. It is not part of any wider group structure.

The organisation is governed by its Constitution last amended 10th June 2015 which establish its objects and powers.

The body responsible for the management of Pavilions Teignmouth is the Board of Trustees. In doing so the trustees take account of the Charity Governance Code in al of its dealings and decision making.

The full complement of Trustees is twelve and the Constitution requires that there shall never be less than three. Trustees must be appointed for a term of three years by a resolution passed at a properly convened meeting of the charity trustees. A charity trustee who has served for three consecutive terms may not be reappointed for a fourth consecutive term but may be reappointed after an interval of at least one year.

Selection and Appointment of Trustees

Upon their first appointment each new trustee is provided with the following information:

In addition, potential trustees are invited to attend trustee meetings prior to their appointment as trustee. Trustees receive no payment.

Organisational Structure and Decision Making

The Board normally meets bi-monthly. The Chair and Officers are appointed by the Trustees from among their number. A General Manager and Artistic Director is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the General Manager and Artistic Director has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and artistic performance related activity.

The General Manager and Artistic Director attends Trustee Board meetings.

Risk Management

Pavilions Teignmouth engages in and hosts a wide and diverse range of activities and events. The organisation is aware of risk to the public, the facility and the organisation and is developing a risk management plan that comprises:

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Pavilions Teignmouth

Trustees’ Annual Report

Year Ended 30 June 2023

It is expected that clients and third parties who hire the facility will ensure that for each event a risk assessment and risk management plan is prepared having regard to:

Trustees’ responsibilities statement

The charity trustees are responsible for preparing a trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, theTrustees are required to:

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Trustees on 15 January 2024 and signed on their behalf by:

Margaret Davidson Chair

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Pavilions Teignmouth

Independent Examiner’s Report

Year Ended 30 June 2023

I report to the trustees on my examination of the accounts of Pavilions Teignmouth for the year ended 30 June 2023.

Responsibilities and basis of report

As the Charity trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

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

  1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

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.

Sharon Austen FCCA Francis Clark LLP Chartered Accountants Sigma House Oak View Close Edginswell Park Torquay TQ2 7FF

Date: 24 January 2024

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Pavilions Teignmouth

Statement of Financial Activities

(Incorporating Income and Expenditure Account)

Year Ended 30 June 2023

Unrestricted Restricted Total Total
Funds Funds Funds Funds
Notes 2023 2023 2023 2022
£ £
Income from:
Donations and legacies 2 31,228 - 31,228 46,065
Charitable activities 3 422,666 - 422,666 347,571
Other income 29 - 29 1
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Total income 453,923 - 453,923 393,637
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Expenditure on:
Charitable activities 4 459,998 200 460,198 422,945
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Total 459,998 200 460,198 422,945
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Net income and net movement in funds (6,075) (200) (6,275) (29,308)
Total funds brought forward 101,524 1,432 102,956 132,264
------------------------------- -------------------------------- -------------------------------- --------------------------------
Total funds carried forward 95,449 1,232 96,681 102,956
=============================== ================================ ================================ ================================

The notes on pages 10 to 17 form part of these financial statements.

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Pavilions Teignmouth

Statement of Financial Activities

(Incorporating Income and Expenditure Account)

Year Ended 30 June 2022

Unrestricted Restricted Total Total
Funds Funds Funds Funds
Notes 2022 2022 2022 2021
£ £
Income from:
Donations and legacies 2 46,065 - 46,065 118,877
Charitable activities 3 347,571 - 347,571 141,565
Other income 1 - 1 1
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Total income 393,637 - 393,637 260,443
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Expenditure on:
Charitable activities 4 422,945 - 422,945 239,854
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Total 422,945 - 422,945 239,854
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Net income and net movement in funds (29,308) - (29,308) 20,589
Total funds brought forward 130,832 1,432 132,264 111,675
------------------------------- -------------------------------- -------------------------------- --------------------------------
Total funds carried forward 101,524 1,432 102,956 132,264
=============================== ================================ ================================ ================================

The notes on pages 10 to 17 form part of these financial statements.

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Pavilions Teignmouth

Balance Sheet

30 June 2023

2023 2022
Note £ £
Fixed assets
Tangible assets 8 2,020 5,710
Investments 9 1 1
-------------------------------- --------------------------------
2,021 5,711
Current assets
Debtors 10 69,170 54,277
Cash at bank and in hand 124,991 122,501
-------------------------------- --------------------------------
194,161 176,778
Liabilities:
Creditors: Amounts falling due within one year 11 (99,501) (79,533)
-------------------------------- --------------------------------
Net current assets 94,660 97,245
-------------------------------- --------------------------------
Net assets 96,681 102,956
================================ ================================
Funds
Unrestricted funds 12
Designated -
General 95,449 101,524
Restricted funds 12 1,232 1,432
-------------------------------- --------------------------------
96,681 102,956
================================ ================================

These financial statements were approved by the trustees on 15 January 2024 and are signed on their behalf by:

Margaret Davidson

Chair

Charity Registration Number: 1162175

The notes on pages 10 to 17 form part of these financial statements.

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Pavilions Teignmouth

Notes to the Financial Statements

Year Ended 30 June 2023

1. Accounting policies

(a) General information

Pavilions Teignmouth is a Charitable Incorporated Organisation with its Constitution being the governing document.

The charity is registered in England and Wales and the registered office is Pavilions Teignmouth, The Den, Teignmouth, Devon, TQ14 8BD.

The charity constitutes a public benefit entity as defined by FRS 102.

These financial statements cover the individual charity and not the group.

The functional currency of Pavilions Teignmouth is considered to be pounds sterling because it is the currency of the primary economic environment in which the charity operates. The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities Regulations 2008.

(b) Basis of preparation

The financial statements have been prepared in accordance with ‘Accounting and Reporting by Charities: Statement of Recommended Practice’ applicable to charities preparing their accounts in accordance with the Charities SORP (FRS102) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

(c) Fund Accounting

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

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.

(d) Income recognition

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.

(e) Government grants

Grant income is accounted for when received.

(f) Expenditure recognition

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Support costs represent operational and administrative costs of the charity which do not relate directly to individual operations.

Governance costs are incurred in connection with compliance with constitutional and statutory requirements.

(g) Volunteers

The contribution received from volunteers is not valued within the accounts.

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Pavilions Teignmouth

Notes to the Financial Statements

Year Ended 30 June 2023

(h) Going concern

There has been a steady and encouraging return of income levels although they have not yet fully recovered to pre- Covid levels. In 2021/22 unrestricted reserves were £101,524 and have decreased to £95,449. This is sufficient to cover repairs and other expenditure required such as replacement and updating of equipment and unexpected disruption. Although the trustees believe that the ideal level of reserves would be £120,000 they are confident that recent recovery suggests this will be achieved in the near future. Also, current funds are sufficient to meet current needs.

The board is also reassured by a loan facility of £50,000 made available by Teignbridge District Council to be drawn down if necessary.

For this reason The Board continues to adopt the going concern basis in preparing financial statements.

(i) Tangible Fixed Assets and depreciation

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets over their expected useful lives on the following bases:

Fixtures and fittings - 5 years Office equipment - 4 years

(j) Investments

Investment in the charity’s subsidiary undertaking is stated at cost, less any provision for impairment in value.

(k) Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

(l) Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less.

(m) Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

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Pavilions Teignmouth

Notes to the Financial Statements

Year Ended 30 June 2023

Accounting policies (continued)

(n) Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2. Income from donations and grants

2023 2022
£ £
Donations 30,912 37,056
Grants 316 9,009
-------------------------------- --------------------------------
31,228 46,065
================================ ================================

In 2023 the donations and legacies income included £nil (2022 - £nil) of restricted funds income and grant income included £nil (2022 - £nil) of restricted funds.

Government grants received during the year totalled £316 (2022 - £8,305).

3. Income from charitable activities

2023 2022
£ £
Provision of Arts Centre 422,666 347,571
================================ ================================

4. Expenditure on charitable activities

Provision
Governance of Arts Total Total
costs Centre 2023 2022
£ £ £ £
Utilities - 85,632 85,632 78,662
Promotion - 167,612 167,612 137,610
Arts Centre expenses - 37,364 37,364 37,061
Rent - 33,600 33,600 33,600
Wages and salaries - 76,409 76,409 74,020
Pension expense - 1,947 1,947 1,862
Support costs 5,976 51,658 57,634 60,130
-------------------------------- -------------------------------- -------------------------------- --------------------------------
5,976 454,222 460,198 422,945
================================ ================================ ================================ ================================

In 2023 the charitable activities expenditure included £200 (2022 - £nil) of restricted funds expenditure.

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Pavilions Teignmouth

Notes to the Financial Statements

Year Ended 30 June 2023

5. Support Costs

Provision
Governance of Arts Total Total
costs Centre 2023 2022
£ £ £ £
Repairs and maintenance - 40,075 40,075 39,517
Travel and hospitality - 198 198 303
Wages and other employment costs - 1,033 1,033 796
Other - 6,183 6,183 10,315
Independent examination 3,510 - 3,510 4,979
Legal and professional fees 2,466 - 2,466 13
Depreciation - 4,169 4,169 4,207
-------------------------------- -------------------------------- -------------------------------- --------------------------------
5,976 51,658 57,634 60,130
================================ ================================ ================================ ================================
6. Net income
This is stated after charging:
2023 2022
£ £
Depreciation of tangible fixed assets 4,169 4,207
================================ ================================
7. Staff costs, trustee remuneration and expenses, and the remuneration of key management
personnel
Staff costs were as follows:
2023 2022
£ £
Wages, salaries 76,409 74,019
Social security costs - -
Pension costs 1,947 1,863
-------------------------------- --------------------------------
78,356 75,882
================================ ================================
The average number of persons employed by the charity during the year was as follows:
2023 2022
No. No.
Wages and salaries 8 8
================================ ================================

No employee received remuneration in excess of £60,000 (2022: None).

The charity’s trustees were not paid and did not receive any other benefits or expenses from the charity in the current or the previous year.

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Pavilions Teignmouth

Notes to the Financial Statements

Year Ended 30 June 2023

8. Tangible Fixed Assets

Fixtures and Office
fittings Equipment Total
£ £ £
Cost
At 1 July 2022 16,099 5,642 21,741
Additions - 479 479
-------------------------------- -------------------------------- --------------------------------
At 30 June 2023 16,099 6,121 22,220
-------------------------------- -------------------------------- --------------------------------
Depreciation
At 1 July 2022 12,281 3,750 16,031
Charge for the year 3,082 1,087 4,169
-------------------------------- -------------------------------- --------------------------------
At 30 June 2023 15,363 4,837 20,200
-------------------------------- -------------------------------- --------------------------------
Net book value
At 30 June 2023 736 1,284 2,020
================================ ================================ ================================
At 30 June 2022 3,818 1,892 5,710
================================ ================================ ================================

9. Fixed Asset Investments

The charity’s wholly owned subsidiary, Pavilions Enterprises Limited, had share capital and reserves of £1 (2022: £1) at 30 June 2023, and profit for the year to 30 June 2023 of £Nil (2022: £Nil).

10. Debtors

Debtors
2023 2022
£ £
Trade debtors 58,335 42,210
Prepayments and accrued income 10,835 9,228
Other taxation - 2,839
-------------------------------- --------------------------------
69,170 54,277
================================ ================================

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Pavilions Teignmouth

Notes to the Financial Statements

Year Ended 30 June 2023

11. Creditors: Amounts falling due within one year
2023 2022
£ £
Trade creditors 10,562 4,053
Other taxation and social security 985 -
Other creditors 7,657 10,319
Accruals and deferred income 80,297 65,161
-------------------------------- --------------------------------
99,501 79,533
================================ ================================
Deferred income 2023 2022
£ £
Deferred income at 1 July 2022 23,616 28,530
Resources deferred during the year 40,375 23,616
Amounts released from previous years (23,616) (28,530)
-------------------------------- --------------------------------
Deferred income at 30 June 2023 40,375 23,616
================================ ================================

At the balance sheet date, the charity was holding funds received in advance for charitable activities for the following year.

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Pavilions Teignmouth

Notes to the Financial Statements

Year Ended 30 June 2023

12. Movement in funds

Current year: Balance at
Balance at Expenditure 30 June
1 July 2022 Income /Transfers 2023
£ £ £ £
Unrestricted Funds
General 101,524 453,923 (459,998) 95,449
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Total Restricted Funds 101,524 453,923 (459,998) 95,449
================================ ================================ ================================ ================================
Restricted Funds
Co-op in the community 1,432 - (200) 1,232
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Total Restricted Funds 1,432 - (200) 1,232
================================ ================================ ================================ ================================
Total Funds 102,956 453,923
(460,198)		 96,681
================================ ================================ ================================ ================================
Previous year: Balance at
Balance at Expenditure 30 June
1 July 2021 Income /Transfers 2022
£ £ £ £
Unrestricted Funds
Designated 12,000 - (12,000) -
General 118,832 393,637 (410,945) 101,524
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Total Restricted Funds 130,832 393,637 (422,945) 101,524
================================ ================================ ================================ ================================
Restricted Funds
Co-op in the community 1,432 - - 1,432
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Total Restricted Funds 1,432 - - 1,432
================================ ================================ ================================ ================================
Total Funds 132,264 393,637
(422,945)		 102,956
================================ ================================ ================================ ================================

13. Analysis of net assets between funds

The charity’s balance sheet shows net assets of £96,681 (2022: £102,956). Fixed assets in respect of restricted funds total £nil (2022: £nil). Current assets in respect of restricted funds total £1,232 (2022 - £1,432). The remaining net assets relate to unrestricted funds.

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Pavilions Teignmouth

Notes to the Financial Statements

Year Ended 30 June 2023

14. Operating lease commitments

At 30 June 2023, the total of the Charity’s future minimal lease payments under non-cancellable operating leases was:

operating leases was:
2023 2022
£ £
Amount payable:
Within 1 year 3,000 3,000
Between 1 and 5 years 5,000 8,000
-------------------------------- --------------------------------
Total 8,000 11,000
================================ ================================

15. Related Party Transactions

During the period, the charity received rent of £nil (2022: £nil) and a gift aid donation of £nil (2022: £476) from its subsidiary, Pavilions Enterprises Limited. The amount owed to the charity at the year end was £nil (2022: £nil).

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