c/o Artlink Centre for Community Arts
87 Princes Avenue, Hull, HU5 3QP
Email hello@hullindependentcinema.com
Web hullindependentcinema.com
HULL INDEPENDENT CINEMA PROJECT
(A CHARITABLE INCORPORATED ORGANISATION)
Report and Financial Statements Year ending 30 September 2023 Charity number: 1163544
Hull Independent Cinema Project, operating as Hull Independent Cinema, is a Charitable Incorporated Organisation (registration no 1163544) and is recognised as a charity for tax purposes by HM Revenue and Customs.
HIC is proudly supported by Film Hub North, part of the BFI Film Audience Network.
HULL INDEPENDENT CINEMA PROJECT
Trustees’ annual report for the year ending 30 September 2023
The trustees are pleased to present their annual trustees’ report together with the consolidated financial statements of the charity for the year ending 30 September 20223
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association (The Constitution) and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities.
Chair’s Report
This report covers our most recent full financial year, 1 October 2022 to 30 September 2023. We are pleased to report a full year of programming and film screenings and continuing partnerships.
During this period we screened a total of 54 films as part of our core programme. In addition we ran a partnership screenings with our old friends Cult Cinema Sunday (October 2022), a special Vampire Double Bill event at Hull Minster with guest speakers and live music (October 2022), a hugely successful local premiere of the locally-made film THREE DAY MILLIONAIRE with guests from the film’s cast and crew (November 2022), and for the second year were host to the SAFAR Film Festival, screening three films alongside shorts and with guest speakers (June / July 2023). We were also pleased to host special guest speakers at a number of our core programme screenings and provide extra value to our audiences with the introduction of our Audience Choice Screenings, giving audience members the chance to choose what film we show.
We are very pleased to acknowledge grateful support from Film Hub North through the Pitch Pot fund, which funded many of our core running costs for film screenings November 2022 – February 2023 and enabled a free ticket scheme for charity and community group members and beneficiaries who would otherwise not be able to attend. The October 2022 Vampire Double Bill was supported by funding from Film Hub Midlands. And Film Hub North’s Exhibition fund provided support for our involvement in SAFAR and our core programme from July 2023 onwards, including the continuation of the free ticket scheme. SAFAR was also supported by in-kind support from the Arab British Council. We are hugely grateful to all our funders and partners for their support.
Funding support helps us achieve our goal of programming specialist films that increase on-screen diversity, and tell stories in foreign languages or which address the experiences of minority groups such as LGBTQ+ communities. It means we can take more risks with our programming to bring the very best film to Hull audiences rather than concentrating solely on titles that might provide greater financial return. It also helps us to keep ticket prices as low as possible and, as noted above, has allowed us to provide free tickets to local charities and community groups.
Initially we focused our free ticket programme on beneficiaries of The Warren, young people who would normally not attend screenings because of financial and cultural barriers; and of a local English-language-learning support group for refugees, asylum seekers and other immigrants who might otherwise not attend screenings because of cultural barriers but who were able to attend screenings that aided their English-language learning by presenting them with English-language film, or with films in other languages that were presented with English subtitles. From autumn 2023 onwards we began publicising our free ticket scheme more widely and welcome applications from any local community group or charity whose members or beneficiaries might benefit from it.
In common with the wider cinema industry, our average attendances have not recovered to pre-Covid levels during the period covered by this report. We have not increased our ticket prices despite facing increasing costs as we do not want to add further financial barriers to attending our screenings, and ongoing funding support has been vital in enabling us to do this. Although not during the period covered by this report, from January 2024 onwards we have embarked on a six-month trial of reducing our prices by £2 per ticket and will review the impact this has on attendances before making a long-term decision on whether to continue with this.
2
This year, we have been able to dedicate time to developing a brand new business plan for HIC. This has helped us identify key audience development goals for the next three years. This will help us to focus our work, including deciding which partnership screenings and special events we should be involved with, making the most of the limited time and resources available to our volunteer management team.
One of our Trustees, Laura Beddows, left HIC on 23 September 2023 due to relocating for a new job and we take this opportunity to put on record our thanks for her passion and knowledge of audiences for independent film. And although outside the period covered by this report, it would be remiss of me not to formally welcome to the Board our newest Trustee, Ruby Bradshaw, who was appointed in November 2023. HIC simply could not exist without the hard work, time and expertise our Trustees voluntarily give to the organisation; thank you to all of them.
Finally, on behalf of the HIC Trustee Board, I want to thank our audiences, members and volunteers for your continuing support. Nothing HIC does would be possible without you. Thank you.
James Russell
Chair of Trustees
Our purposes and activities
The purposes of the charity are:
To advance the education of the public in the knowledge, understanding and appreciation of the art of film, in particular but not exclusively by:
(a) the screening of films of artistic merit and educative value in and around the city of Kingston Upon Hull; and
(b) establishing, maintaining and providing educational programmes, exhibition space and production facilities.
Our charity has considered its public benefit aims as a charity; we undertake screenings and work to further the understanding and appreciation of world, independent, documentary and art-house cinema on a non-profit basis. Our programming provides Hull audiences with the opportunity to see great films that would otherwise not be shown in the city. Our film screenings are priced so as to be as accessible as possible whilst covering the costs of screenings and enabling the charity to maintain reserves to provide financial resilience. We introduced a new Audience Choice screening last year to engage our audiences more directly with our programming and continue with this each quarterly season. Our free ticket scheme, operating at SAFAR Film Festival and since November 2022 at our core programme screenings, enables new audiences to engage with our work.
| The screening figures for 1 October 2022-30 September 2023 are as follows: | The screening figures for 1 October 2022-30 September 2023 are as follows: | The screening figures for 1 October 2022-30 September 2023 are as follows: |
|---|---|---|
| Screeningtype | No. of films/screenings | Total audience attendance |
| Full-length world, independent and art-house film (including SAFAR Film Festival 2023, Dead of Night and other special/ partnershipevents) |
60 | 3,049 |
| Forcomparison, ourscreeningsfrom 1October 2021 –30 September 2022were asfollows: | ||
| Screeningtype | No. of films/screenings | Total audience attendance |
| Full-length world, independent and art-house film (including SAFAR Film Festival 2022 and other special / partnershipevents) |
52 | 2,653 |
Financial review
In the current financial year our accounts show a surplus. The charity also benefits from historic reserves. In 202122, Hull Independent Cinema returned a deficit set of accounts. This year’s surplus position has only been possible due to grant funding of £8,290, which has covered core costs of running Hull Independent Cinema and, most importantly, the main costs associated with film screenings, which include screening room hire, film licences and
3
marketing. Without this grant funding, the core offer of film screenings would have run at a second year in deficit and the trustees would have had to consider alternative ways of serving the charity’s charitable objects. The organisation is in receipt of grant funding going into 2023-24 and intends to apply for further support funding in order to cut ticket prices if possible, given the cost of living crisis, as well as to continue its core screening offer.
The organisation retains over £5,000 in its reserve account. This is in line with the organisation’s financial management policy, which would allow for circa 6 months running costs of core costs and film screening, taking account of the income this would generate.
Reserves policy and going concern
Our current reserves policy is to retain an amount sufficient to cover the costs of running the organisation and our regular weekly film programme for a period of six months. The benefits of such a policy were clearly demonstrated during the pandemic shutdown, when we had no income beyond a small number of donations but were able to use reserves to cover our ongoing overhead.
This policy is kept under review by the Trustees. The charity has sufficient income and reserves after liabilities to prepare the accounts on a going concern basis.
Plans for the future period
We will continue to benefit from external grant funding from Film Hub North to March 2024 and intend to apply for further external funding for the following period. 2024 also marks the tenth anniversary of HIC’s founding and we are exploring options for staging a number of special events to mark this occasion.
We are actively looking for new Trustees to join the organisation, and welcome expressions of interest from anyone who is interested in providing their time in support of the work that HIC does.
Reference and administrative details
Charity number: 1163544
Registered office: C/O Artlink, 87 Princes Avenue, Hull, HU5 3QP
Bankers: The Co-operative Bank, 1 Balloon Street, Manchester, M60 4EP Hull and East Yorkshire Credit Union, 38 Brook Street, Hull, HU2 8LA
Trustees at 30 September 2023
Chair James Russell (Chair of Trustees) Trustees Ellie Irwin, Tasha Pert, Carla Ramsay (Honorary Treasurer and Company Secretary), Samuel Sims, Matthew Smith, Philip Stevens, Paul Terry
Hull Independent Cinema did not have any employees during 2022-23.
Structure, governance and management
HIC is governed by its Constitution and managed by a Trustee Board of up to twelve. Trustees may be elected or appointed by the Trustee Board with that appointment confirmed by the members at the next AGM.
The Trustees are volunteers and do not receive any remuneration for their role as Trustees. They are paid expenses in accordance with HIC’s Expenses Policy for any out of pocket expenses incurred as part of their duties.
At the 2023 AGM, Trustees Carla Ramsay and Ellie Irwin retired by rotation and stood for re-election. Samuel Sims was appointed in June 2022 and his appointment was confirmed at the same AGM.
Trustee terms of office will expire according to the process set out in Clause 12 of our Constitution.
4
Trustees’ responsibilities in relation to the financial statements
The Trustees are responsible for preparing the annual report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The Trustees are required to prepare financial statements for each year that are a true and fair view of the state of affairs of the charitable organisation and the incoming resources and the application of those resources, including income and expenditure for that period. In preparing these financial statements, the trustees are required to:
-
Select suitable accounting policies and apply them consistently
-
Observe the methods and principles in the Charities Commission SORP
-
Make judgements and estimates that are reasonable and prudent
-
State whether applicable UK accounting standards 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 charity will continue its business
The Trustees are responsible for keeping proper accounting records that 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 Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement as to disclosure
In so far as the Trustees are aware at the time of approving our annual report:
-
There is no relevant information discovered in preparing this report that is not disclosed in this document and
-
The Trustees, having made enquiries of each other, have taken all steps that they are obliged to take as a Trustee in order to make themselves aware of any relevant information and to establish that they are aware of that information
By order of the board of trustees.
Signed:
James Russell (Chair), Tuesday 16 April 2024
6
LEFT PURPOSELY BLANK
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Hull Independent Cinema Project No 1163544
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Receipts and payments accounts 01-Oct-2022 30-Sep-2023 For the period To from
CC16a
Section A Receipts and payments
| A1 Receipts | Unrestricted funds to nearest £ 66 - 20,871 - - 20,937 - **20,937 ** |
Restricted funds to nearest £ - 8,290 - - - 8,290 - 8,290 |
Endowment funds to nearest £ - - - - - - - - |
Total funds to nearest £ 66 8290 20871 - - 29,227 - 29,227 |
Last year to nearest £ |
|---|---|---|---|---|---|
| Donations and legacies | 66 | 0 | |||
| Grants | - | 0 | |||
| Income from charitable activities | |||||
| Film screenings and membership | 20,871 | 12,793 | |||
| Income from other sources | - | 0 | |||
| Investment income | - | 0 | |||
| Sub total(Gross income for AR) | |||||
| **20,937 ** | 12,793 | ||||
| A2 Asset and investment sales Total receipts |
|||||
| - | |||||
| - | |||||
| **20,937 ** | 8,290 | 29,227 | 12,793 | ||
8
A3 Payments
| A3 Payments | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Salaries and staff costs | - | - | - | 0 | 0 | |||||
| Screening expenditure | ||||||||||
| 15,810 | 6,901 | - | 24,100 | 18,122 | ||||||
| Core costs | 1,056 | - | - | 1,056 | 1,018 | |||||
| Business development | 0 | - | - | 0 | 0 | |||||
| Sub total | 16,866 | 6,901 | - | 25,156 | 19,140 | |||||
| A4 Asset and investment | ||||||||||
| purchases | - | - | - | - | - | |||||
| Total payments | **16,866 ** | **6,901 ** | **- ** | 25,156 | 19,140 | |||||
| Net of receipts/(payments) | 4,071 | 1,389 | - | 4,071 | (6,347) | |||||
| A5 Transfers between funds | 0 | 0 | - | - | 2,000 | |||||
| A6 Cash funds last year end | 8,548 | 0 | - | 8,548 | 12,895 | |||||
| Cash funds this year end | 12,619 | 1,389 | - | 14,008 | 8,548 |
9
Section B Statement of assets and liabilities at the end of the period
| Categories B1 Cash funds B2 Other monetary assets B3 Investment assets B4 Assets retained for the charity’s own use |
Details Co-operative Bank (current account) Hull and East Yorkshire Credit Union (reserve account) Paypal Total cash funds (agree balances with receipts and payments account(s)) Details None Details None Details None |
Unrestricted funds to nearest £ 7,607 5,385 1,016 14,008 OK Unrestricted funds to nearest £ - Fund to which asset belongs - Fund to which asset belongs - |
Restricted funds to nearest £ - - - - OK Restricted funds to nearest £ - Cost (optional) - Cost (optional) - |
Endowment funds to nearest £ |
|---|---|---|---|---|
| - | ||||
| - | ||||
| - | ||||
| - | ||||
| OK | ||||
| Endowment funds to nearest £ |
||||
| - | ||||
| Current value (optional) |
||||
| - | ||||
| Current value (optional) |
||||
| None | - | - | - |
10
B5 Liabilities
----- Start of picture text -----
Fund to which Amount due When due
Details liability relates (optional) (optional)
None - - -
----- End of picture text -----
Signed by one or two trustees on behalf of all the trustees
----- Start of picture text -----
Date of
Signature Print Name
approval
Tuesday16 April
James Russell
2024
----- End of picture text -----
11
Notes on the accounts
1 Accounting Policies
The principal accounting policies adopted, judgements and key sources of estimation or uncertainty in the preparation of the financial statements are as follows:
a) Basis of preparation
The financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards for Smaller Entities published on 16 July 2014, the Financial Reporting Standard for Smaller Entities (effective January 2015) and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policies note(s).
b) Preparation of the accounts on a going concern basis
The trustees are of the view that the trading and cash position of the organisation have secured the immediate future of the organisation for the next 12 to 18 months and on this basis the assessment of the trustees is that the charity is a going concern.
c) Income recognition policies
Items of income are recognised and are included in the accounts when all of the following criteria are met:
-
The charity has entitlement to the funds
-
Any performance conditions attached to the item(s) of income have been met or are fully within the control of the charity
-
There is sufficient certainty that receipt of the income is considered probable, and
-
The amount can be measured reliably
d) Donated services and facilities
Donated services and facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probably and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
e) Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
f) Fund accounting
Unrestricted funds are available to expend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations or funding that the donor has specified are to be solely used for particular areas of the charity’s work or specific artistic projects being undertaken by the organisation.
g) Expenditure
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. Expenditure is classified under the following activity headings:
- Expenditure on charitable activities – includes the costs of film screenings and other activities undertaken to further the purposes of the clarity
12
- Expenditure of organisational operations – these are the support costs that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, insurance, governance, etc, which support the charity’s charitable activities. The basis of support costs has been set out at note 10.
The charity’s turnover is not sufficient to be VAT registered. The charity pays VAT on all services received and goods purchased, except for a small number of exemptions on goods purchased as allowed by current VAT treatment set by HMRC.
h) Tangible fixed assets Individual fixed assets costing £1,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:
| Asset category | Annual rate |
|---|---|
| Equipment | 33% |
| Cabling and discs | 50% |
i) Any stock is included at cost or net realisable value. Donated items of stock are recognised on receipt at fair value, which is the amount the charity would have been willing to pay for the items on the open market.
j) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.
k) 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 from the date of the acquisition or opening of the deposit or similar account.
l) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
m) Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.
2 Legal status of the organisation
Hull Independent Cinema Project is a Charitable Incorporated Organisation, registered with and regulated by the Charity Commission. It trades as Hull Independent Cinema. It was incorporated on 13 September 2015.
13
c/o Artlink Centre for Community Arts
87 Princes Avenue, Hull, HU5 3QP
Email hello@hullindependentcinema.com
Web hullindependentcinema.com
HULL INDEPENDENT CINEMA PROJECT
(A CHARITABLE INCORPORATED ORGANISATION)
Report and Financial Statements Year ending 30 September 2023 Charity number: 1163544
Hull Independent Cinema Project, operating as Hull Independent Cinema, is a Charitable Incorporated Organisation (registration no 1163544) and is recognised as a charity for tax purposes by HM Revenue and Customs.
HIC is proudly supported by Film Hub North, part of the BFI Film Audience Network.
HULL INDEPENDENT CINEMA PROJECT
Trustees’ annual report for the year ending 30 September 2023
The trustees are pleased to present their annual trustees’ report together with the consolidated financial statements of the charity for the year ending 30 September 20223
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association (The Constitution) and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities.
Chair’s Report
This report covers our most recent full financial year, 1 October 2022 to 30 September 2023. We are pleased to report a full year of programming and film screenings and continuing partnerships.
During this period we screened a total of 54 films as part of our core programme. In addition we ran a partnership screenings with our old friends Cult Cinema Sunday (October 2022), a special Vampire Double Bill event at Hull Minster with guest speakers and live music (October 2022), a hugely successful local premiere of the locally-made film THREE DAY MILLIONAIRE with guests from the film’s cast and crew (November 2022), and for the second year were host to the SAFAR Film Festival, screening three films alongside shorts and with guest speakers (June / July 2023). We were also pleased to host special guest speakers at a number of our core programme screenings and provide extra value to our audiences with the introduction of our Audience Choice Screenings, giving audience members the chance to choose what film we show.
We are very pleased to acknowledge grateful support from Film Hub North through the Pitch Pot fund, which funded many of our core running costs for film screenings November 2022 – February 2023 and enabled a free ticket scheme for charity and community group members and beneficiaries who would otherwise not be able to attend. The October 2022 Vampire Double Bill was supported by funding from Film Hub Midlands. And Film Hub North’s Exhibition fund provided support for our involvement in SAFAR and our core programme from July 2023 onwards, including the continuation of the free ticket scheme. SAFAR was also supported by in-kind support from the Arab British Council. We are hugely grateful to all our funders and partners for their support.
Funding support helps us achieve our goal of programming specialist films that increase on-screen diversity, and tell stories in foreign languages or which address the experiences of minority groups such as LGBTQ+ communities. It means we can take more risks with our programming to bring the very best film to Hull audiences rather than concentrating solely on titles that might provide greater financial return. It also helps us to keep ticket prices as low as possible and, as noted above, has allowed us to provide free tickets to local charities and community groups.
Initially we focused our free ticket programme on beneficiaries of The Warren, young people who would normally not attend screenings because of financial and cultural barriers; and of a local English-language-learning support group for refugees, asylum seekers and other immigrants who might otherwise not attend screenings because of cultural barriers but who were able to attend screenings that aided their English-language learning by presenting them with English-language film, or with films in other languages that were presented with English subtitles. From autumn 2023 onwards we began publicising our free ticket scheme more widely and welcome applications from any local community group or charity whose members or beneficiaries might benefit from it.
In common with the wider cinema industry, our average attendances have not recovered to pre-Covid levels during the period covered by this report. We have not increased our ticket prices despite facing increasing costs as we do not want to add further financial barriers to attending our screenings, and ongoing funding support has been vital in enabling us to do this. Although not during the period covered by this report, from January 2024 onwards we have embarked on a six-month trial of reducing our prices by £2 per ticket and will review the impact this has on attendances before making a long-term decision on whether to continue with this.
2
This year, we have been able to dedicate time to developing a brand new business plan for HIC. This has helped us identify key audience development goals for the next three years. This will help us to focus our work, including deciding which partnership screenings and special events we should be involved with, making the most of the limited time and resources available to our volunteer management team.
One of our Trustees, Laura Beddows, left HIC on 23 September 2023 due to relocating for a new job and we take this opportunity to put on record our thanks for her passion and knowledge of audiences for independent film. And although outside the period covered by this report, it would be remiss of me not to formally welcome to the Board our newest Trustee, Ruby Bradshaw, who was appointed in November 2023. HIC simply could not exist without the hard work, time and expertise our Trustees voluntarily give to the organisation; thank you to all of them.
Finally, on behalf of the HIC Trustee Board, I want to thank our audiences, members and volunteers for your continuing support. Nothing HIC does would be possible without you. Thank you.
James Russell
Chair of Trustees
Our purposes and activities
The purposes of the charity are:
To advance the education of the public in the knowledge, understanding and appreciation of the art of film, in particular but not exclusively by:
(a) the screening of films of artistic merit and educative value in and around the city of Kingston Upon Hull; and
(b) establishing, maintaining and providing educational programmes, exhibition space and production facilities.
Our charity has considered its public benefit aims as a charity; we undertake screenings and work to further the understanding and appreciation of world, independent, documentary and art-house cinema on a non-profit basis. Our programming provides Hull audiences with the opportunity to see great films that would otherwise not be shown in the city. Our film screenings are priced so as to be as accessible as possible whilst covering the costs of screenings and enabling the charity to maintain reserves to provide financial resilience. We introduced a new Audience Choice screening last year to engage our audiences more directly with our programming and continue with this each quarterly season. Our free ticket scheme, operating at SAFAR Film Festival and since November 2022 at our core programme screenings, enables new audiences to engage with our work.
| The screening figures for 1 October 2022-30 September 2023 are as follows: | The screening figures for 1 October 2022-30 September 2023 are as follows: | The screening figures for 1 October 2022-30 September 2023 are as follows: |
|---|---|---|
| Screeningtype | No. of films/screenings | Total audience attendance |
| Full-length world, independent and art-house film (including SAFAR Film Festival 2023, Dead of Night and other special/ partnershipevents) |
60 | 3,049 |
| Forcomparison, ourscreeningsfrom 1October 2021 –30 September 2022were asfollows: | ||
| Screeningtype | No. of films/screenings | Total audience attendance |
| Full-length world, independent and art-house film (including SAFAR Film Festival 2022 and other special / partnershipevents) |
52 | 2,653 |
Financial review
In the current financial year our accounts show a surplus. The charity also benefits from historic reserves. In 202122, Hull Independent Cinema returned a deficit set of accounts. This year’s surplus position has only been possible due to grant funding of £8,290, which has covered core costs of running Hull Independent Cinema and, most importantly, the main costs associated with film screenings, which include screening room hire, film licences and
3
marketing. Without this grant funding, the core offer of film screenings would have run at a second year in deficit and the trustees would have had to consider alternative ways of serving the charity’s charitable objects. The organisation is in receipt of grant funding going into 2023-24 and intends to apply for further support funding in order to cut ticket prices if possible, given the cost of living crisis, as well as to continue its core screening offer.
The organisation retains over £5,000 in its reserve account. This is in line with the organisation’s financial management policy, which would allow for circa 6 months running costs of core costs and film screening, taking account of the income this would generate.
Reserves policy and going concern
Our current reserves policy is to retain an amount sufficient to cover the costs of running the organisation and our regular weekly film programme for a period of six months. The benefits of such a policy were clearly demonstrated during the pandemic shutdown, when we had no income beyond a small number of donations but were able to use reserves to cover our ongoing overhead.
This policy is kept under review by the Trustees. The charity has sufficient income and reserves after liabilities to prepare the accounts on a going concern basis.
Plans for the future period
We will continue to benefit from external grant funding from Film Hub North to March 2024 and intend to apply for further external funding for the following period. 2024 also marks the tenth anniversary of HIC’s founding and we are exploring options for staging a number of special events to mark this occasion.
We are actively looking for new Trustees to join the organisation, and welcome expressions of interest from anyone who is interested in providing their time in support of the work that HIC does.
Reference and administrative details
Charity number: 1163544
Registered office: C/O Artlink, 87 Princes Avenue, Hull, HU5 3QP
Bankers: The Co-operative Bank, 1 Balloon Street, Manchester, M60 4EP Hull and East Yorkshire Credit Union, 38 Brook Street, Hull, HU2 8LA
Trustees at 30 September 2023
Chair James Russell (Chair of Trustees) Trustees Ellie Irwin, Tasha Pert, Carla Ramsay (Honorary Treasurer and Company Secretary), Samuel Sims, Matthew Smith, Philip Stevens, Paul Terry
Hull Independent Cinema did not have any employees during 2022-23.
Structure, governance and management
HIC is governed by its Constitution and managed by a Trustee Board of up to twelve. Trustees may be elected or appointed by the Trustee Board with that appointment confirmed by the members at the next AGM.
The Trustees are volunteers and do not receive any remuneration for their role as Trustees. They are paid expenses in accordance with HIC’s Expenses Policy for any out of pocket expenses incurred as part of their duties.
At the 2023 AGM, Trustees Carla Ramsay and Ellie Irwin retired by rotation and stood for re-election. Samuel Sims was appointed in June 2022 and his appointment was confirmed at the same AGM.
Trustee terms of office will expire according to the process set out in Clause 12 of our Constitution.
4
Trustees’ responsibilities in relation to the financial statements
The Trustees are responsible for preparing the annual report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The Trustees are required to prepare financial statements for each year that are a true and fair view of the state of affairs of the charitable organisation and the incoming resources and the application of those resources, including income and expenditure for that period. In preparing these financial statements, the trustees are required to:
-
Select suitable accounting policies and apply them consistently
-
Observe the methods and principles in the Charities Commission SORP
-
Make judgements and estimates that are reasonable and prudent
-
State whether applicable UK accounting standards 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 charity will continue its business
The Trustees are responsible for keeping proper accounting records that 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 Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement as to disclosure
In so far as the Trustees are aware at the time of approving our annual report:
-
There is no relevant information discovered in preparing this report that is not disclosed in this document and
-
The Trustees, having made enquiries of each other, have taken all steps that they are obliged to take as a Trustee in order to make themselves aware of any relevant information and to establish that they are aware of that information
By order of the board of trustees.
Signed:
James Russell (Chair), Tuesday 16 April 2024
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LEFT PURPOSELY BLANK
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Hull Independent Cinema Project No 1163544
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Receipts and payments accounts 01-Oct-2022 30-Sep-2023 For the period To from
CC16a
Section A Receipts and payments
| A1 Receipts | Unrestricted funds to nearest £ 66 - 20,871 - - 20,937 - **20,937 ** |
Restricted funds to nearest £ - 8,290 - - - 8,290 - 8,290 |
Endowment funds to nearest £ - - - - - - - - |
Total funds to nearest £ 66 8290 20871 - - 29,227 - 29,227 |
Last year to nearest £ |
|---|---|---|---|---|---|
| Donations and legacies | 66 | 0 | |||
| Grants | - | 0 | |||
| Income from charitable activities | |||||
| Film screenings and membership | 20,871 | 12,793 | |||
| Income from other sources | - | 0 | |||
| Investment income | - | 0 | |||
| Sub total(Gross income for AR) | |||||
| **20,937 ** | 12,793 | ||||
| A2 Asset and investment sales Total receipts |
|||||
| - | |||||
| - | |||||
| **20,937 ** | 8,290 | 29,227 | 12,793 | ||
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A3 Payments
| A3 Payments | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Salaries and staff costs | - | - | - | 0 | 0 | |||||
| Screening expenditure | ||||||||||
| 15,810 | 6,901 | - | 24,100 | 18,122 | ||||||
| Core costs | 1,056 | - | - | 1,056 | 1,018 | |||||
| Business development | 0 | - | - | 0 | 0 | |||||
| Sub total | 16,866 | 6,901 | - | 25,156 | 19,140 | |||||
| A4 Asset and investment | ||||||||||
| purchases | - | - | - | - | - | |||||
| Total payments | **16,866 ** | **6,901 ** | **- ** | 25,156 | 19,140 | |||||
| Net of receipts/(payments) | 4,071 | 1,389 | - | 4,071 | (6,347) | |||||
| A5 Transfers between funds | 0 | 0 | - | - | 2,000 | |||||
| A6 Cash funds last year end | 8,548 | 0 | - | 8,548 | 12,895 | |||||
| Cash funds this year end | 12,619 | 1,389 | - | 14,008 | 8,548 |
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Section B Statement of assets and liabilities at the end of the period
| Categories B1 Cash funds B2 Other monetary assets B3 Investment assets B4 Assets retained for the charity’s own use |
Details Co-operative Bank (current account) Hull and East Yorkshire Credit Union (reserve account) Paypal Total cash funds (agree balances with receipts and payments account(s)) Details None Details None Details None |
Unrestricted funds to nearest £ 7,607 5,385 1,016 14,008 OK Unrestricted funds to nearest £ - Fund to which asset belongs - Fund to which asset belongs - |
Restricted funds to nearest £ - - - - OK Restricted funds to nearest £ - Cost (optional) - Cost (optional) - |
Endowment funds to nearest £ |
|---|---|---|---|---|
| - | ||||
| - | ||||
| - | ||||
| - | ||||
| OK | ||||
| Endowment funds to nearest £ |
||||
| - | ||||
| Current value (optional) |
||||
| - | ||||
| Current value (optional) |
||||
| None | - | - | - |
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B5 Liabilities
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Fund to which Amount due When due
Details liability relates (optional) (optional)
None - - -
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Signed by one or two trustees on behalf of all the trustees
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Date of
Signature Print Name
approval
Tuesday16 April
James Russell
2024
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Notes on the accounts
1 Accounting Policies
The principal accounting policies adopted, judgements and key sources of estimation or uncertainty in the preparation of the financial statements are as follows:
a) Basis of preparation
The financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards for Smaller Entities published on 16 July 2014, the Financial Reporting Standard for Smaller Entities (effective January 2015) and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policies note(s).
b) Preparation of the accounts on a going concern basis
The trustees are of the view that the trading and cash position of the organisation have secured the immediate future of the organisation for the next 12 to 18 months and on this basis the assessment of the trustees is that the charity is a going concern.
c) Income recognition policies
Items of income are recognised and are included in the accounts when all of the following criteria are met:
-
The charity has entitlement to the funds
-
Any performance conditions attached to the item(s) of income have been met or are fully within the control of the charity
-
There is sufficient certainty that receipt of the income is considered probable, and
-
The amount can be measured reliably
d) Donated services and facilities
Donated services and facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probably and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
e) Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
f) Fund accounting
Unrestricted funds are available to expend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations or funding that the donor has specified are to be solely used for particular areas of the charity’s work or specific artistic projects being undertaken by the organisation.
g) Expenditure
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. Expenditure is classified under the following activity headings:
- Expenditure on charitable activities – includes the costs of film screenings and other activities undertaken to further the purposes of the clarity
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- Expenditure of organisational operations – these are the support costs that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, insurance, governance, etc, which support the charity’s charitable activities. The basis of support costs has been set out at note 10.
The charity’s turnover is not sufficient to be VAT registered. The charity pays VAT on all services received and goods purchased, except for a small number of exemptions on goods purchased as allowed by current VAT treatment set by HMRC.
h) Tangible fixed assets Individual fixed assets costing £1,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:
| Asset category | Annual rate |
|---|---|
| Equipment | 33% |
| Cabling and discs | 50% |
i) Any stock is included at cost or net realisable value. Donated items of stock are recognised on receipt at fair value, which is the amount the charity would have been willing to pay for the items on the open market.
j) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.
k) 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 from the date of the acquisition or opening of the deposit or similar account.
l) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
m) Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.
2 Legal status of the organisation
Hull Independent Cinema Project is a Charitable Incorporated Organisation, registered with and regulated by the Charity Commission. It trades as Hull Independent Cinema. It was incorporated on 13 September 2015.
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CHARITY COMMISSION FOR ENGLAND AND WALES Independent examiner's report on the accounts Section A Independent Examiner's Report Report to the trusteesl members of Cliarily N3nie Hull Independent Cinema ProjeGt On accounts for the year ended 30 Seplember 2023 Charity no lif any) 1163544 Set out on pages 8-13 Respectlve The charity's trustees are responsible for the preparation of the accounts. responsibilities of trustees The charity's trustees consider that an audit is not required for this year and examiner under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. It is my responsibility to.. examine the accounts under section 145 of the Charities Act, to follow the procedures laid down in the general Directions given by the Charity Commission (under section 14515)(bl of the Charities Act, and lo state whether particular matters have come to my attention. Basis of independent My examination was carried out in accordance with general Directions given examiner's statement by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from Ihe trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as lo whether the accounts present a 'true and fair, view and the report is limiled to those matters set out in the statement below. Independent examiner's In connection with my examination, no material matters have come to my statsment attention which gives me cause to believe that in, any material respect.. accounting records were not kept in accordance with section 130 of the Charities Act or the accounts do not accord with the accounting records I have come across no other matters in conneclion with the examination to which attention should be drawn in order to enable a proper understanding of the aGcounts to be reached. Signed: R Thompson Date: Name: Rebecca Thornpson Relevant professional qualification(s) or body lif anyl: IER December 2017
Address: Alderson House Hull Royal Infirmary, Hull HU3 2JZ Section B Disclosure Only complete if the examiner needs to highlight m8llers of concern (see CC32, Independent examination of charity accounts.. directions and guidance for examiners). Give here brief details of any items that tho examiner wishes to disclose. /Pr IER December 2017