**Charity Registration No. 1165519**
**CHEQUER MEAD ARTS AND COMMUNITY TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Cllr. F Obsorne (Chairman)||
|---|---|---|
||Cllr. J A Mockford||
||S G Cole (independent)||
||Cllr. H Farren|(Appointed 1 April 2020)|
||N S Gibson (independent)||
||Cllr. F Visser||
|**Charity number**|1165519||
|**Registered office**|Chequer Mead Theatre||
||De La Warr Road||
||East Grinstead||
||RH19 3BS||
|**Auditor**|Darren Harding ACA FCCA DChA||
||Richard Place Dobson Services Limited||
||1-7 Station Road||
||Crawley||
||West Sussex||
||RH10 1HT||
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 8|
|Statement of trustees' responsibilities|9|
|Independent auditor's report|10 - 12|
|Statement of financial activities|13 - 15|
|Balance sheet|16|
|Notes to the financial statements|17 - 32|
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
The trustees present their annual report and financial statements for the year ended 31 March 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 Charities Act 2011 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)".
## **Objectives and activities**
Chequer Mead has, in common with community and entertainment venues throughout the UK, faced the most challenging period in its history due to the pandemic. The entirely necessary lockdowns and government restrictions during the reporting period have forced the Trust (with the theatre and community centre largely shut down) to focus on survival through prudent management in order to enable us still to continue to provide a valued community asset as restrictions ease, and to continue to comply with our charitable objects going forward. Facilities and grants arranged by the government (directly and via the Arts Council and banks) together with the continued and vital support from Mid Sussex District Council and East Grinstead Town Council, have enabled Chequer Mead to remain in business as a going concern. Hard decisions have been taken by the Trustees and the General Manager, and the Trustees wish to place on record their appreciation of the achievements of the every member of staff during these dark times.
The rest of the report should be read in this context.
The Charity's objects are:
- To advance public education by fostering and promoting for the benefit of the public the improvement and development of artistic knowledge and taste, understanding and appreciation of the of the arts and crafts among the inhabitants of the Area of Benefit.
- To provide and assist in the provision of community facilities for recreation and other leisure occupation of the inhabitants of the Area of Benefit in the interests of social welfare and with the object of improving their conditions of life in particular but not exclusively by the provision and maintenance of a Community Arts Centre.
- To further such other charitable purposes for the benefit of the inhabitants of the Area of Benefit as the Managing Trustees see fit from time to time.
- To contribute to the quality of life of the people of East Grinstead and the wider area by expanding their horizons through the provision of exciting, challenging and accessible professional and community arts events.
The main objectives each year are the promotion and fostering of artistic knowledge and the appreciation of the arts by the provision of facilities for the education and entertainment of the public in the fields of art, craft, music and drama.
The strategies employed to achieve the Charity's objects are to:
- Offer opportunities for a broad range of sections of the community to get involved in arts and performance activities exploring and developing their creative skills and potential;
- Provide facilities for amateur and professional artists to develop. Amateur groups are given discounted rates for hire of space and access to professional advice;
- Concentrate on involving young people in the arts to help encourage a culture in which different age ranges play a complementary parts;
- Celebrate the diversity of cultures in our society by programming presentations by, and with, artists of different cultural backgrounds, and presenting a broad range of arts works;
- Create and maintain partnerships with local organisations and partners to maintain dialogue and create new projects and opportunities.
Richard Place Dobson page 1
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
In normal circumstances the three major areas of activity are: concerts and stage performances; educational programmes, and studio hires for community group rehearsals and meetings.
The artistic programme seeks to combine amateur community events together with professional events including classical plays, light opera, music, ballet, and dramatic modern performances to suit a range of public tastes with the emphasis on maintaining a popular programme, which underpins the viability of Chequer Mead that reaches out to the community.
The pandemic restrictions during the financial year left the Trustees no choice but to close the theatre and studios for almost the entire period. The notable exception to this was the in-house, scaled back pantomime production, “Almost a Panto…”, which received universal acclaim during its short run. The Trustees and General Manager committed to the three-hander with a basic set as a service to the community - pantomime has always been Chequer Mead’s flagship event - with a capped potential loss balanced against our charitable objects. Full COVID-compliant social distancing, testing and hygiene measures were maintained throughout the Atrium and Auditorium at all times, with limited, distanced seating available. Regrettably a close relative of a cast member tested positive for COVID after 11 performances, leaving the Trustees no choice but to cancel the remaining performances and offer refunds to ticket holders. The event caused a loss of approximately £6,000 (against the Trustees’ cap of £12,000) due to the cancellation and refunds. The Trustees were fully aware of, and accepted, the risk of this happening. The feedback from those who were able to attend performances confirmed that this has been worthwhile, and a material number of ticket holders for performances after cancellation were happy to donate the ticket cost, rather than take a refund.
When lockdown restrictions were initially eased we offered fortnightly cinema presentations in the auditorium. This did not attract sufficient audiences during a period of public caution to justify the costs, and so we ceased offering the events.
The Apron Bar and Coffee House was formed and started trading in September 2019 as an in-house subsidiary trading company to provide an integrated and informal structure for the provision of hot beverages, catering and bar operations, for events and as a community provision at other times. Profits generated by the trading company are gifted to the Trust as a charitable donation. In the circumstances, no such donation will be possible this year. The Apron was very successful in its first 6 months of operation in the previous year, and is highly valued by the local community, but entered this year in lockdown. There were periods during the financial year when restrictions were eased sufficiently to enable The Apron to open (albeit temporarily) with an entirely different operating model - social distancing, table service. We were also able to offer cabaret style events on selected weekend nights in the garden or inside the atrium, to go as far as possible to fulfilling our community objectives.
Richard Place Dobson page 2
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
With the current lowering of restrictions by Her Majesty’s Government the Trustees and General Manager had been planning for a full re-opening in September 2021, which has now taken place. Due to uncertainties within the performer environment, booking acts was initially difficult during the planning period but this is now gathering pace as confidence returns.
Following the success of ‘Almost a Panto…’ (despite its prematurely short run) the Trustees propose to present a full pantomime in December 2021, to be produced in-house. ‘Almost a Panto…’ demonstrated our ability to produce a successful and well-received offering in difficult circumstances, and in-house production offers significant cost savings compared with an external production. Planning, including engaging performers and commissioning the script, is now near complete and marketing has commenced, with steady early ticket sales.
Despite commercial pressures to drive ticket sales from popular shows - our charitable objects dictate that we are required to provide a very wide and balanced programme of types and styles of events - to suit the public needs. Therefore all programming is divided into eight different categories of: Music, Dance, Comedy, Musicals & Drama, Event Cinema, Family, Talks, Film.
Many of our Town and District primary and secondary schools have regularly used Chequer Mead Theatre for their plays and productions, at discounted hire rates. We look forward to their return.
We have hosted many amateur dramatic groups, and there are a host of amateur youth dance schools and groups that were hiring the theatre - quite often all day on a Sunday. Equally, we are confident of their return, and are very pleased to have received a number of bookings already.
Regrettably, the organisers of the spring highlight that is The East Grinstead Music & Arts Festival had no choice but to cancel for 2021. This annual event takes place continuously for six whole weekends each April/May, hosting some 1,500 performing children in competition for playing instruments, singing, speech, drama, and every type of dance genre. We look forward to their return.
The Trustees anticipate an early return to successful trading now that restrictions have eased.
## **Volunteers and Friends**
In normal circumstances the very loyal band of fifty core volunteers continue to provide a marvellous service to Chequer Mead operating the box office, as theatre stewards, working behind the bar and selling ice cream. With the restrictions there was no call to use volunteers during the financial year, but we retained contact with them through e-mails and Zoom calls, and they are already returning to offer support to current and future events. Bar activities are now held within the trading subsidiary, and use of volunteers there has ceased.
The Costume Store has been a traditional part of Chequer Mead for many years and their small but loyal team of volunteers provided a good service and some revenue income pre-lockdown. However, as demand vanished, the volunteers took the decision to close the Costume Store permanently: the Trustees agreed, partly in order to avoid further costs.
Chequer Mead Premium Club was slowly growing pre-lockdown: for a modest yearly membership fee members enjoy a range of benefits such as ticket discounts, as well as organised coach visits to West End shows. We anticipate that growth will restart now that the theatre is back in operation.
Richard Place Dobson page 3
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Achievements and performance General Manager and staffing**
The Trustees would like to extend their heartfelt thanks to the General Manager and all of the young and energetic current and former staff, for their efforts and dedication during this most difficult year.
Regrettably, as the furlough scheme was due to come to an end, with no sign at the time of any imminent possibility to reopen the theatre for events and performances, the Trustees had no responsible choice but to consider making redundancies. A full consultation process was held with at-risk staff, which resulted in three staff sadly being made redundant in November/ December.
The General Manager and remaining staff members have done a remarkable job of keeping the theatre safe, compliant and operable during the year as we have looked forward to re-opening in September, and we are filling gaps in staffing as we return to full operations. During this challenging period the Trustees have taken a particular interest in the mental well-being of our staff, and continue to offer support.
## **Capital Investment and building works**
The ageing mens’, women’s and disabled toilet facilities at Chequer Mead have been completely refurbished and modernised during lockdown, generating significant positive feedback from patrons and visitors. The cost of these works was approximately £60,000, which was almost entirely met with a capital grant from MSDC, applied for in the previous tax year, for which the Trustees are especially grateful.
The Trust remains a tenant at Chequer Mead, with the freehold being held by East Grinstead Town Council. The Trustees’ continuing objective is to improve or enhance the property where this either increases the attractiveness to community patrons (as with the toilets) or provides a clear cost benefit to the Trust (the previously installed solar panels), with the spinoff benefit that the community ultimately owns an asset of which the value is maintained and enhanced.
## **Marketing and Branding**
The Trustees’ objective is to deliver more effective and innovative marketing in order to promote the brand further and to attract more agents, promoters, acts, hirers, community groups, am drams etc - as well as to drive this process into increased tickets sales and revenue.
During the financial year we had very few events to market - principally ‘Almost a Panto…’ and the cinema presentations. Marketing around the pantomime substitute fed into public demand and lead to very successful ticket sales: during the period our marketing was concentrated on social media. We undertook a mail drop to advertise the cinema presentations and pantomime and to reassure the community that Chequer Mead was still here and would remain. Beyond that our social media marketing efforts had focused on The Apron - when practical and permitted to open - as a community facility, with very positive results.
Looking forward, Facebook, digital marketing and targeted emails have continued this year and will intensify - however the two main traditional marketing tools remain the website (which has approaching 50% online ticket sales) - and the Events Brochure - of which three are produced each year (Jan to April/ May to August/ September to December). The Events Brochure for the September to December period has been produced and mailed to approximately 50,000 households within the broader catchment, not just to East Grinstead - but now also to Crawley, Edenbridge, Sevenoaks, Uckfield, Horsham and Redhill.
Richard Place Dobson page 4
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Financial review**
During the year the Trust received virtually no revenues from events or studio hire due to the pandemic. The Trustees continually reviewed activities, staffing and recurring costs with the General Manager in order to take actions to minimise our anticipated loss for the year wherever practicable. Costs for the year were significantly lower than budget, but revenues were almost non-existent, leading to an inevitable loss for the period.
Any building of this type has unavoidable base-line costs, from mandatory maintenance to insurance and all stops inbetween. The Trustees are grateful to East Grinstead Town Council for their continued support and annual grant. Chequer Mead normally receives no other grants that support core running costs and has to earn income to enable the theatre to be self-supporting in normal times.
We applied for a grant from the Arts Council in the first round of government funding which was, without explanation, declined. We made a further application when the second Arts Council round opened which, with the support of our local MP, was successful. Chequer Mead was granted £73,525.
We are applying for a further grant in the third and final funding round.
We were also able to access ad hoc grants offered by MSDC to support local businesses during the pandemic, for which we are very grateful.
The Trust will continue to make applications to grant funding bodies to improve our existing facilities. Project funding will also be pursued to continue our programme of arts development and youth projects which were proving a popular addition to our work.
During the year the government underwrote the offering of ‘bounce back loans’ through the High Street UK banks. We successfully obtained loans of £50,000 each for the Charity and the trading company, which are repayable in just over 5 years and, after an interest-free period, are now charging a very low rate of interest. These are repayable at any time without penalty.
We used Her Majesty’s Government’s furlough arrangements whilst these remained available in order to retain staff for as long as possible, which covered a significant proportion of our staff costs for eligible staff during the relevant period. However, even with furlough, retaining staff still carried a material overhead which, given the lack of work, caused the Trustees - with great sadness - to make some redundancies to try to ensure the Charity’s survival.
The Trustees have established the level of reserves, which is those funds that are freely available, and consider that the ideal level of reserves would be £250,000. The actual reserves at 31 March 2021 were £151,523 and it is the Trustees' view that it is prudent to ensure that there are sufficient reserves to provide financial flexibility over the course of the forthcoming financial year.
The reserves policy is currently under review and will be amended as appropriate.
Richard Place Dobson page 5
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Risk management**
The Board and General Manager has a risk management strategy that comprises:
- Identifying and recording the risks that the Charity may face in a detailed risk register.
- The establishment of policies, systems and procedures to mitigate those risks.
- The implementation of procedures designed to minimise any potential impact of the Charity should those risks materialise.
- Particular attention has been given by the Trustees to non-financial risks arising from health and safety and artistic programmes.
- A key element in the management of the financial risk is the setting of a reserves policy and its regular review by all Trustees.
- The risk register is frequently reviewed, and is currently being updated to reflect new risks identified as a result of COVID.
## **Plans for future periods**
## **Going Concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
## **Future Plans**
- Maintain tight budgetary control
- Continue to source new revenue streams
- Continue to attract higher profile mainstream acts
- Bring the annual pantomime production in-house successfully
- Bring back studio hirers and attract new hirers
- Further develop the success of The Apron offering
- Drive up theatre revenue through show and ticket sales volume growth and improved contract arrangements
- Sustain marketing intensity and brand awareness
- Continue to invest in the building infrastructure where cost-effective
- Identify and manage risks to our activities in the ‘new normal’ on a dynamic basis
## **Structure, governance and management**
It is important to emphasise that the Chequer Mead Arts and Community Trust (a Charitable Incorporated Organisation) is a totally separate and independent legal and trading entity from East Grinstead Town Council: the Town Council is the landlord and freehold site and building owner, and appoints the majority of Trustees.
Chequer Mead Arts and Community Trust is legally bound principally by the Charities Act 2011 - and is required to report directly to the Charities Commission with an Annual Report including yearly accounts - as well as periodically on other administrative matters.
Richard Place Dobson page 6
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The Trust’s affairs are overseen by the Board of Trustees. There is a mix of up to five Council-appointed Trustees and up to three Independent Trustees, and the Trust’s affairs are governed by its written Constitution. The Trustees meet monthly (by Zoom when in person meetings are not possible). Nominees appointed by East Grinstead Town Council are subject to the appointment process of this body and the guidelines on appointment to public office as they apply to local government nominees. Independent Trustees are nominated, vetted and interviewed by the Board prior to appointment. All appointments are for fixed terms.
The Trustees who served during the year and up to the date of signature of the financial statements were:
Cllr. F Obsorne (Chairman) Cllr R Whittaker (Resigned 21 July 2021) Cllr. J A Mockford S G Cole (independent) Cllr. H Farren (Appointed 1 April 2020) N S Gibson (independent) Cllr. F Visser
Board decisions are usually unanimous. In the event of a disagreement decisions are put to a vote of a simple majority, with dissenting views recorded in the Minutes. The Chairman has the casting vote.
The day-to-day running of the Trust is the responsibility of the General Manager, who is accountable to the Board of Trustees and reports to the Board at each monthly meeting on operational and financial issues. Each year the General Manager produces a detailed budget in conjunction with the Trustees, and reports on performance against budget each month.
Detailed policies are in place for discharging all mandatory responsibilities (e.g. Health and Safety, Diversity, Safeguarding etc).
## **Supplier payment policy**
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
- settle the terms of payment with suppliers when agreeing the terms of each transaction;
- ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
- pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to XX day's purchases, based on the average daily amount invoiced by suppliers during the year.
## **Conclusion**
This was the most challenging year in the CIO’s history, but we are optimistic that despite a further challenging first half of 2021-22, we are now well positioned to take full advantage of the current environment. The theatre has just re-opened with an expanding programme of events, and The Apron remains a popular destination for the community: clubs and community organisations are booking rooms again.
The General Manager and the staff have performed remarkably well in unprecedented circumstances, and have the Board’s wholehearted thanks.
The Trustees are realistic that it will take some time to get back to the position we were in before the pandemic struck, but share a determination to get there whilst continuing to serve our community and meet their needs.
The Trustees' report was approved by the Board of Trustees.
Richard Place Dobson page 7
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
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Richard Place Dobson
page 8
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and 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 year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient 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 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.
Richard Place Dobson page 9
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **Opinion**
We have audited the financial statements of Chequer Mead Arts and Community Trust (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice) .
## In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' r eport; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
Richard Place Dobson page 10
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **Responsibilities of trustees**
As explained more fully in the s tatement of trustees' r esponsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatements due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud, the audit engagement team made enquiries of management, and those charged with governance, regarding the procedures relating to identifying, evaluating and complying with;
1. laws and regulations and whether they were aware of any instances of non-compliance;
2. detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
3. the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, General Data Protection Regulations, Charities Act 2011, Charities Statement of Recommended Practice and employment law and regulations. We performed audit procedures to detect non-compliance, which may have a material impact on the financial statements. These included reviewing financial statement disclosures and evaluating advice received from external advisors. There were no significant laws and regulations we deemed as having an indirect impact on the financial statements.
Richard Place Dobson page 11
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHEQUER MEAD ARTS AND COMMUNITY TRUST**
The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the rationale in relation to any significant, unusual transactions and transactions entered into outside of the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matter s**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Richard Place Dobson Services Limited**
......................... 21/12/2021
## **Chartered Accountants**
## **Statutory Auditor**
1 - 7 Station Road, Crawley West Sussex RH10 1HT
Richard Place Dobson Services Limited are eligible for appointment as auditor of the charity by vitue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
Richard Place Dobson
page 12
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Current financial year**
**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general**
**d esignated**
**2021**
**2021**
**2021**
**Notes**
**£**
**£**
**£**
**Income and endowments from:**
Donations and grants
**3**
173,547
-
50,950
Charitable activities
In House Produtions
**4**
9,515
-
-
Theatre operations
**4**
1,252
-
-
Studio Hire
**4**
8,638
-
-
Tenant income
**4**
20,982
-
-
Bar and Ice Cream Sales
**5**
-
-
-
Investments
**6**
1,692
-
-
Other income
**7**
242
-
-
**Total income**
215,868
-
50,950
**Expenditure on:**
Raising funds
Fundraising and publicity
**8**
-
-
-
Charitable activities
Theatre operations
**9**
311,147
21,259
-
**Total charitable expenditure**
311,147
21,259
-
**Total resources expended**
311,147
21,259
-
**Net (outgoing)/incoming resources**
**before transfers**
(95,279)
(21,259)
50,950|**Total**
**2021**
**£**
224,497
9,515
1,252
8,638
20,982
-
1,692
242
266,818
-
332,406
332,406
332,406
(65,588)|Total
2020
**£**
101,363
4,600
300,950
50,557
25,042
48,009
3,898
4,093
538,512
20,394
537,062
537,062
557,456
(18,944)|
|---|---|---|
Richard Place Dobson
page 13
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Net (outgoing)/incoming resources**
**before transfers**
(95,279)
Gross transfers between funds
(11,468)
**Net expenditure for the year/**
**Net movement in funds**
(106,747)
Fund balances at 1 April 2020
As originally reported
_257,095_
Prior year adjustment
_(31,089)_
As restated
226,006
**Fund balances at 31 March 2021**
119,259|(21,259)
67,418
46,159
_487,981_
_-_
487,981
534,140|50,950
(55,950)
(5,000)
_128,054_
_-_
128,054
123,054|(65,588)
-
(65,588)
_873,130_
_(31,089)_
842,041
776,453|(18,944)
-
(18,944)
_860,985_
_-_
860,985
842,041|
|---|---|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Richard Place Dobson
page 14
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Prior financial year**
**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general**
**d esignated**
**2020**
**2020**
**2020**
**Notes**
**£**
**£**
**£**
**Income and endowments from:**
Donations and grants
**3**
100,363
-
1,000
Charitable activities
In House Produtions
**4**
4,600
-
-
Theatre operations
**4**
300,950
-
-
Studio Hire
**4**
50,557
-
-
Tenant income
**4**
25,042
-
-
Bar and Ice Cream Sales
**5**
48,009
-
-
Investments
**6**
3,898
-
-
Other income
**7**
4,093
-
-
**Total income**
537,512
-
1,000
**Expenditure on:**
Raising funds
Fundraising and publicity
**8**
20,394
-
-
Charitable activities
Theatre operations
**9**
520,246
16,816
-
**Total charitable expenditure**
520,246
16,816
-
**Total resources expended**
540,640
16,816
-
**Net (outgoing)/incoming resources before**
**transfers**
(3,128)
(16,816)
1,000
**Net expenditure for the year/**
**Net movement in funds**
(3,128)
(16,816)
1,000
Fund balances at 1 April 2019
As originally reported
_229,134_
_504,797_
_127,054_
Prior year adjustment
_-_
_-_
_-_
As restated
229,134
504,797
127,054
**Fund balances at 31 March 2020**
226,006
487,981
128,054|**Total**
**2020**
**£**
101,363
4,600
300,950
50,557
25,042
48,009
3,898
4,093
538,512
20,394
537,062
537,062
557,456
(18,944)
(18,944)
_860,985_
_-_
860,985
842,041|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Richard Place Dobson
page 15
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2021**_
|**2021**
**Notes**
**£**
**Fixed assets**
Tangible assets
**13**
Investments
**14**
**Current assets**
Debtors
**15**
36,947
Cash at bank and in hand
282,956
319,903
**Creditors: amounts falling due within one**
**year**
**17**
(47,489)
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after more**
**than one year**
**18**
**Net assets**
**Income funds**
Restricted funds
**20**
Unrestricted funds
Designated funds
**21**
534,140
General unrestricted funds
119,259
**�:**
**,**
**�, •r�**
**v**
**,J byi, · 1·rn��, "" .........................**
**;��;;;�; (�ha**
**Tustee**
20/12/2021|**£**
540,490
10,000
550,490
272,414
822,904
(46,451)
776,453
123,054
653,399
776,453|**2020**
**£**
70,842
326,323
397,165
(70,513)
487,981
226,006|**£**
505,389
10,000|
|---|---|---|---|
||||515,389
326,652|
||||842,041
-|
||||842,041|
||||128,054
713,987|
||||842,041|
|||||
Richard Place Dobson
page 16
**CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **Charity information**
Chequer Mead Arts and Community Trust is a registered Charitable Incorporated Organisation (CIO).
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **Preparation of Consolidated Financial Statements**
The financial statements contain information about Chequer Mead Arts and Community Trust as an individual charity and do not contain consolidated financial information as the parent of a group. The Charity is exempt from the requirement to prepare consolidated accounts on the basis it qualifies as a small group.
## **1.2 Prior period error**
During the course of preparing the accounts for the year ended 31 March 2021, it was discovered that income received in advance for events due to happen after 31 March 2020 were not recorded correctly in the previous years accounts. Due to the Coronavirus pandemic a large number of these events did not take place and the ticket costs had to be refunded. There was insufficient income received in the current year to recognise these refunds against.
The impact on the accounts is to increase deferred income and reduce event income in the previous year by £31,089.
## **1.3 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.
## **1.4 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 purposes.
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.
Richard Place Dobson page 17
**CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
**(Continued)**
## **1.5 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.
Grant income provides funding to support performance activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Income is deferred when admission fees or performance related grants are received in advance of the performance or event to which they relate.
Income from bar and ice cream sales is recognised as earned (as the related goods and services are provided).
Investment income is recognised on a receivables basis.
Activities in furtherance of charitable objects includes theatre operations, studio hire, in-house productions and tenant income. Charitable income is recognised on the date of the performance or as the room is hired.
Donations and similar incoming resources are included in the year in which they are receivable, which is when the charity becomes entitled to the resource.
## **Other Income**
Other income consists of Spektrix commissions, income from marketing and postage and income from the premium club. It is recognised in the accounts when the charity has earned entitlement to the income, it is probable the income will be received and the amount can be reliably measured.
## **Legacy Income**
For Legacies entitlement is taken at earlier of:
- the date on which the charity is aware that probate has been granted.
- the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made.
- when distribution is received from the estate.
Receipt of a legacy, is whole or in part, is only considered probable when the amount can be reliably measured and the charity has been notified of the executor's intention to make distribution. Where legacies have been notified to the charity, or the charity is aware of granting probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
## **1.6 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Richard Place Dobson page 18
**CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **(Continued)**
Liabilities are recognised as expenditure as soon as there is legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Allocation and apportionment of costs**
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include governance costs. These costs have been allocated between the different charitable activities on a percentage basis. The bases on which support costs have been allocated are set out in note 8.
## **1.7 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.
All assets costing more than £1,000 are capitalised at cost.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Leasehold improvements Over the term of the lease Fixtures, fittings & equipment 10-33% p.a. straight line Computers 10-33% p.a. straight line
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 .
## **1.8 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.10 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Richard Place Dobson page 19
**CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial assets**_
## **Debtors**
Trade and other debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid net of any trade discount offered.
## _**Basic financial liabilities**_
## **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 reliably. Creditors and provisions are normally recognised at their settlement value after allowing for any discounts offered.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
## **1.11 Taxation**
The charity is not subject to corporation tax or any other taxes on income or gains arising from its charitable objectives.
## **1.12 Employee benefits**
The costs of short term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
## **1.13 Retirement benefits**
## **Post costs and other post-retirement benefits**
The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
## **1.14 Irrecoverable VAT**
All resources expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
## **1.15 Operating Leases**
Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.
## **Donated assets**
Goods donated for on-going use by the charity in carrying out its activities are recognised as tangible fixed assets with the corresponding gain recognised as income from donations when goods are above the charities capitalisation limit of £1,000. Donated goods are measured at their fair value.
## **Volunteer time**
The charity makes use of volunteers in carrying out the charitable activities. It is impractical to value the costs of the volunteer involved. No amount for volunteer time are included within the accounts.
Richard Place Dobson page 20
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 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 grants**
|**Unrestricted**
**Restricted**
**Total**
Unrestricted
Restricted
**funds**
**funds**
funds
funds
**general**
general
**2021**
**2021**
**2021**
2020
2020
**£**
**£**
**£**
£
£
Donations and gifts
3,022
1,000
4,022
26,363
1,000
Grants
170,525
49,950
220,475
74,000
-
173,547
50,950
224,497
100,363
1,000
**Grants receivable for**
**core activities**
EGTC Grant
74,000
-
74,000
74,000
-
MSDC Toilet
refurbishment grant
-
49,950
49,950
-
-
MSDC National restriction
Grant
3,000
-
3,000
-
-
Other
93,525
-
93,525
-
-
170,525
49,950
220,475
74,000
-
**Charitable activities**
**In House**
**Produtions**
**Theatre**
**operations**
**Studio Hire Tenant income**
**Total**
**2021**
**2021**
**2021**
**2021**
**2021**
**£**
**£**
**£**
**£**
**£**
Income from charitable
activities
9,515
1,252
8,638
20,982
40,387|Total
2020
£
27,363
74,000|
|---|---|
||101,363|
||74,000
-
-
-|
||74,000|
||**Total**
**2020**
**£**
381,149|
**4 Charitable activities**
Richard Place Dobson page 21
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
- **4 Charitable activities**
**(Continued)**
## **For the year ended 31 March 2020**
|**In House**
**Produtions**
**Theatre**
**operations**
**Studio Hire Tenant income**
**£**
**£**
**£**
**£**
Income from charitable activities
4,600
300,950
50,557
25,042
Analysis by fund
Unrestricted funds - general
4,600
300,950
50,557
25,042|**Total**
**2020**
**£**
381,149|
|---|---|
||381,149|
- **5 Bar and Ice Cream Sales**
|Bar & Ice cream sales
Bar & Ice cream cost of sales
Gross Profit for Bar & Ice cream sales|**Total**
Unrestricted
funds
general
**2021**
2020
**£**
£
-
48,009
-
(20,394)
-
27,615|
|---|---|
## **6 Investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2021**|2020|
||**£**|£|
|Deposit account interest|1,692|3,898|
Richard Place Dobson page 22
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **7 Other income**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2021**|2020|
||**£**|£|
|Postage|142|2,871|
|Premium Club|100|1,075|
|Misc. Income|-|147|
||242|4,093|
|**Raising funds**|||
||**Total**|Unrestricted|
|||funds|
|||general|
||**2021**|2020|
||**£**|£|
|Fundraising and publicity|||
|Seeking donations, grants and legacies|-|20,394|
||-|20,394|
## **8 Raising funds**
Richard Place Dobson page 23
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **9 Charitable activities**
|Staff costs
Depreciation and impairment
Production & Events management
Advertising
IT, Repairs & Maintenance
Daily running costs
Share of governance costs (see note 10)
**Analysis by fund**
Unrestricted funds - general
Unrestricted funds - designated
**Support costs**
**Support costs Governance**
**costs**
**£**
**£**
Streamline
-
-
Audit fees
-
5,000
Accountancy
-
9,625
Legal and professional
-
3,785
-
18,410
Analysed between
Charitable activities
-
18,410|**Theatre**
**operations**
**Theatre**
**operations**
**2021**
**2020**
**£**
**£**
172,827
257,255
34,756
31,477
37,065
41,678
4,692
47,212
28,961
79,097
35,695
41,464
313,996
498,183
18,410
38,879
332,406
537,062
311,147
520,246
21,259
16,816
332,406
537,062
**2021**Support costs
Governance
costs
2020
**£**
£
£
£
-
-
22,617
22,617
5,000
-
5,000
5,000
9,625
-
5,560
5,560
3,785
-
5,702
5,702
18,410
-
38,879
38,879
18,410
-
38,879
38,879|**Theatre**
**operations**
**Theatre**
**operations**
**2021**
**2020**
**£**
**£**
172,827
257,255
34,756
31,477
37,065
41,678
4,692
47,212
28,961
79,097
35,695
41,464
313,996
498,183
18,410
38,879
332,406
537,062
311,147
520,246
21,259
16,816
332,406
537,062
**2021**Support costs
Governance
costs
2020
**£**
£
£
£
-
-
22,617
22,617
5,000
-
5,000
5,000
9,625
-
5,560
5,560
3,785
-
5,702
5,702
18,410
-
38,879
38,879
18,410
-
38,879
38,879|
|---|---|---|
|||498,183
38,879|
|||537,062|
|||520,246
16,816|
|||537,062|
|||2020
£
22,617
5,000
5,560
5,702|
|||38,879|
|||38,879|
## **10 Support costs**
## **11 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year and none of them were reimbursed any expenses expenses (2020- no expenses were reimbursed).
Richard Place Dobson page 24
**CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **12 Employees**
The average monthly number of employees during the year was:
||**2021**|**2020**|
|---|---|---|
||**Number**|**Number**|
|Theatre management|2|2|
|Technical staff|7|6|
|Administration|4|3|
|Total|13|11|
|**Employment costs**|**2021**|**2020**|
||**£**|**£**|
|Wages and salaries|160,758|233,926|
|Social security costs|8,981|22,160|
|Other pension costs|3,088|1,169|
||172,827|257,255|
There were no employees whose annual remuneration was more than £60,000.
|**13**
**Tangible fixed assets**
**Leasehold**
**improvements**
**Fixtures, fittings**
**& equipment**
**Computers**
**£**
**£**
**£**
**Cost**
At 1 April 2020
418,792
196,077
12,946
Additions
67,418
2,111
328
At 31 March 2021
486,210
198,188
13,274
**Depreciation and impairment**
At 1 April 2020
31,054
83,475
7,897
Depreciation charged in the year
13,829
19,486
1,441
At 31 March 2021
44,883
102,961
9,338
**Carrying amount**
At 31 March 2021
441,327
95,227
3,936
At 31 March 2020
387,738
112,602
5,049|**Total**
**£**
627,815
69,857|
|---|---|
||697,672|
||122,426
34,756|
||157,182|
||540,490|
||505,389|
## **14 Fixed asset investments**
Richard Place Dobson page 25
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**14**|**Fixed asset investments**|**(Continued)**|
|---|---|---|
|||**Other**|
|||**investments**|
||**Cost or valuation**||
||At 1 April 2020 & 31 March 2021|10,000|
||**Carrying amount**||
||At 31 March 2021|10,000|
||At 31 March 2020|10,000|
Richard Place Dobson page 26
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**14**
**Fixed asset investments**
Other investments comprise:
**Notes**
Investments in subsidiaries
**26**
**15**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income
**16**
**Loans and overdrafts**
Other loans
Payable within one year
Payable after one year|**(Continued)**
**2021**
**2020**
**£**
**£**
10,000
10,000
**2021**
**2020**
**£**
**£**
7,272
10,512
12,775
37,019
6,027
11,076
10,873
12,235
36,947
70,842
**2021**
**2020**
**£**
**£**
50,000
-
3,549
-
46,451
-|**(Continued)**
**2021**
**2020**
**£**
**£**
10,000
10,000
**2021**
**2020**
**£**
**£**
7,272
10,512
12,775
37,019
6,027
11,076
10,873
12,235
36,947
70,842
**2021**
**2020**
**£**
**£**
50,000
-
3,549
-
46,451
-|
|---|---|---|
|||**2020**
**£**
10,512
37,019
11,076
12,235|
|||70,842|
|||**2020**
**£**
-|
|||-
-|
The bounce back loan with Natwest bank was taken out during the Covid-19 pandemic. The amount borrowed was the max available of £50,000 at a fixed interest rate of 2.5%.
The loan which is repayable fully within 5 years had no interest charged in the first year and thereafter charged at the applicable rate above.
## **17 Creditors: amounts falling due within one year**
|Borrowings
Other taxation and social security
Trade creditors
Amount owed to parent undertaking
Accruals and deferred income|**2021**
**£**
3,549
2,176
4,402
(4,436)
41,798
47,489|**2020**
**£**
-
5,907
14,428
-
50,178|
|---|---|---|
|||70,513|
Richard Place Dobson page 27
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **18 Creditors: amounts falling due after more than one year**
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Borrowings|46,451|-|
## **19 Retirement benefit schemes**
## **Defined contribution schemes**
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £3,088 (2020 - £1,169).
## **20 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:
|||**Movement**|**in**||**Movement in funds**|**Movement in funds**||
|---|---|---|---|---|---|---|---|
|||**funds**||||||
||**Balance at**|
**Income**||**Balance at**|**Income**|**Transfers**|**Balance at**|
||**1 April 2019**|||**1 April 2020**|||**31 March 2021**|
||**£**||**£**|**£**|**£**|**£**|**£**|
|EGTC Bulding project|123,054||-|123,054|-|-|123,054|
|Community Toilet Sceme|4,000|
1,000||5,000|1,000|(6,000)|
-|
|MSDC Toilet Refurbishment|-||-|-|49,950|(49,950)|
-|
||127,054|
1,000||128,054|50,950|(55,950)|
123,054|
Community Toilet Scheme Fund - This represents a grant from Mid Sussex District Council towards the community Toilet Scheme Fund.
EGTC Building Project fund- This fund represents monies granted to the charity to carry out redevelopment work on the theatre.
Mid Sussex District Councile have give the Charity a grant to be used for the purpose of refurbishing the toilets. Work was carried out on this during the year.
Richard Place Dobson page 28
**CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **21 Designated funds**
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
|**Balance at**
**1 April 2019**
**Expenditure**
**Balance at**
**1 April 2020**
**Expenditure**
**£**
**£**
**£**
**£**
Donated Equipment
66,875
(7,430)
59,445
(7,430)
Leasehod improvements
395,651
(7,913)
387,738
(13,829)
Boiler
20,000
-
20,000
-
Theatre Seats
20,798
-
20,798
-
Screen Projector
1,473
(1,473)
-
-
504,797
(16,816)
487,981
(21,259)|**Transfers**
**Balance at**
**31 March 2021**
**£**
**£**
-
52,015
67,418
441,327
-
20,000
-
20,798
-
-
67,418
534,140|**Transfers**
**Balance at**
**31 March 2021**
**£**
**£**
-
52,015
67,418
441,327
-
20,000
-
20,798
-
-
67,418
534,140|
|---|---|---|
|||534,140|
Theatre Seats Fund, Room Chairs Fund and Screen Projector fund all represents assets purchased with designated fund income. The balances are in line with the Net Book Value of these assets.
Leasehold improvements fund represents amounts that have been spend on leasehold improvements out of the EGTC building project grant including the annual depreciation charge.
The boiler fund is funds set aside by the Trustees to replace the boiler in the coming year
Richard Place Dobson page 29
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **22 Analysis of net assets between funds**
|**Unrestrcited**
**Funds**
**Designated**
**Funds**
**Restricted**
**Funds**
**2021**
**2021**
**2021**
**£**
**£**
**£**
Fund balances at 31 March 2021 are represented by:
Tangible assets
47,148
493,342
-
Investments
10,000
-
-
Current assets/(liabilities)
102,562
40,798
129,054
Long term liabilities
(46,451)
-
-
113,259
534,140
129,054|**Total**
Unrestrcited
Funds
Designated
Funds
Restricted
Funds
**2021**
2020
2020
2020
**£**
£
£
£
540,490
58,206
447,183
-
10,000
10,000
-
-
272,414
157,800
40,798
128,054
(46,451)
-
-
-
776,453
226,006
487,981
128,054|Total
2020
£
505,389
10,000
326,652
-
842,041|
|---|---|---|
Richard Place Dobson page 30
**CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **23 Financial commitments, guarantees and contingent liabilities**
## **Contingent Liability**
The S106 grants received from Mid Sussex District Council is potentially repayable if within 14 years the theatre facility ceases to be used for leisure activities or if any other conditions of the grant are not complied with.
## **24 COVID 19**
In March 2020 the World Health Organisation declared Covid-19 a global pandemic. This had a significant effect on global trade and the ability of companies to function normally. An estimate of the financial effect of Covid-19 can not be made at this stage.
## **25 Related party transactions**
## **Remuneration of key management personnel**
The remuneration of key management personnel is as follows.
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|41,804|48,200|
The charity has a close working relationship with East Grinstead Town Council. This body nominates the majority of trustees (see the trustees report) and provides funding to enable the charity to carry out its charitable activities. Grant income received in the year totalled £74,000 (2020: £74,000).
A subsidiary trading company Chequer Mead Trading Limited was incorporated on 15 May 2019 and began trading in September 2019. No donations (2020: £25,000) donation were made from the trading subsidiary to the charity during the year. At 31 March 2021 £12,775 was owed to the charity from its trading subsidiary.
## **26 Subsidiaries**
These financial statements are separate charity financial statements for Chequer Mead Arts and Community Trust
Details of the charity's subsidiaries at 31 March 2021 are as follows:
|**Name of undertaking**|**Registered**|**Nature of business**|**Class of**|**% Held**|
|---|---|---|---|---|
||**office**||**shares held**|**Direct Indirect**|
|Chequer Mead Trading|De La Warr Road,|
Hot beverages, food & catering|Ordinary|100.00|
|Limited|East Grinstead,|and bar service to benefit the|||
||West Sussex,|image of the Chequer Mead|||
||RH19 3BS|Theatre brand.|||
Richard Place Dobson page 31
## **CHEQUER MEAD ARTS AND COMMUNITY TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **26 Subsidiaries**
**(Continued)**
The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:
|**Name of undertaking**|**Profit/(Loss)**|**Capital and**|
|---|---|---|
|||**Reserves**|
||**£**|**£**|
|Chequer Mead Trading|||
|Limited|(16,820)|(3,357)|
Richard Place Dobson page 32