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2021-04-05-accounts

DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

Registered Charity Number 1165934 (England & Wales) Registered Charity Number SC047502 (Scotland)

TWO DESTINATION LANGUAGE (A Charitable Incorporated Organisation)

REPORT AND ACCOUNTS For the year ended 5 April 2021

Photo: Beth Chalmers

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE TRUSTEES’ REPORT YEAR ENDED 5 APRIL 2021

The Trustees present their report and the unaudited financial statements of the charity for the year ended 5 April 2021.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Charity number 1165934 (England & Wales) SC047502 (Scotland) – from 12 June 2017

Principal address ARC Stockton, 60 Dovecot Street, Stockton-on-Tees TS18 1LL

Trustees

The Trustees of the charity during the year and to the date of signing this report are as follows:

Ms Elizabeth Moriarty Ms Sarah Cockburn Ms Tina Andrews Ms Emma Honeyman Resigned 3 December 2020 Mr Callum Madge Independent Examiner Pete O’Hara FCA, Chartered Accountant, 4 Stoneyhurst Road West, Gosforth, Newcastle upon Tyne NE3 1PG

Bankers Co-operative Bank plc, P.O. Box 101, 1 Balloon Street, Manchester M60 4EP

Governing Documents

Two Destination Language was established as a Charitable Incorporated Organisation (CIO) on 8 March 2016. As a CIO it is governed by its constitution.

Objectives and Activities

The charity’s objects are to advance the arts for the public benefit, in particular but not exclusively the art of drama.

Two Destination Language shares high quality contemporary performance with the public. It makes work to provoke new thinking about how cultures interact, and brings this to audiences as widely as possible. It also works with local communities to engage individuals in the arts and runs microfests to develop audiences for contemporary performance in places which see little of it.

Activities for the Public Benefit

The Trustees confirm that they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit, 'Charities and Public Benefit'.

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TWO DESTINATION LANGUAGE TRUSTEES’ REPORT YEAR ENDED 5 APRIL 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)

Activities for the Public Benefit (Cont.)

The main activities undertaken for the public benefit are as follows:

Recruitment & Appointment of Trustees

New Trustees are identified and appointed on the recommendation of the existing Trustees.

Operation of the Board of Trustees

The Board of Trustees typically meets four times per year.

Trustee Induction & Training

In the first year of appointment an induction and training year is provided, covering both the distinctiveness of the organisation, as well as the duties and responsibilities of acting as a charity Trustee.

Risk Management

The Trustees of the charity regularly review the major governance, operational and financial risks which the charity faces as part of its annual business planning process and confirm that systems have been established to mitigate these risks.

Two Destination Language has a risk management strategy in place, which comprises:

The Trustees are satisfied that appropriate financial systems and controls are in place.

The Trustees consider the key risks facing the charity at this time to be the financial risks arising if the organisation is unable to attract sufficient income to realise its planned projects to the scale and quality to which the organisation aspires.

The Trustees have managed the potential impact of these risks by ensuring that:

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE TRUSTEES’ REPORT YEAR ENDED 5 APRIL 2021

ACHIEVEMENTS AND PERFORMANCE

Summary of the main achievements of the charity during the year

The activity of Two Destination Language is intended for the benefit of the public. The charity engages the public through performances, installations, video, imagery, learning and engagement workshops, projects, residencies, research presentations and publications. Supporting artists and enabling creativity is key to achieving this.

This public engagement stimulates and enhances an understanding about the arts, and, particularly, performing arts. The organisation aims to extend performance practice and provide new ways for the public to experience performance. The organisation's work has a wide geographical reach, presenting work and collaborating with partners nationally and internationally. Through all areas of its work, Two Destination Language strives to be inclusive and celebrates and champions diversity, presenting work in different spaces to engage a wider public beyond the traditional theatre audience, and working with a wide range of individuals across arts disciplines.

To this end, our work is centred on intercultural dialogue, within and around the projects we deliver. This links our different creative, engagement and sector support projects: all these are interested in creating space for renegotiation of cultural values, questioning and forming both individual and community identities.

The impact of COVID-19 on plans made for 2020-21 was significant: all planning work related to existing and new projects had to be unpicked, and alternate plans themselves revised repeatedly. It has, of course, not been possible to present our work to the public as normal in this period. Nevertheless, we are pleased with the impact we have had during a challenging year.

In 2020-21, work created by Two Destination Language’s directors reached audiences of around 6,500 people. There were 260 participants in discussions and workshops delivered by the directors. Our activities involved work with 61 professional artists.

We devoted significant attention to supporting the freelance creative practitioners on whom much of the live performance sector depends. In particular:

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE TRUSTEES’ REPORT YEAR ENDED 5 APRIL 2021

ACHIEVEMENTS AND PERFORMANCE (CONTINUED)

Summary of the main achievements of the charity during the year (Cont.)

We also shared work with the wider public; key achievements include:

Development of our pipeline of new work remains strong, but the outlook for funding of cultural activities is uncertain against competing priorities following COVID and we continue to seek new funders. We are supported in our work by a network of presenting partners, who contribute financially and with resources from their own organisations.

The Trustees wish to particularly acknowledge in-kind support this year from:

Financial Review

The financial result for the year is a surplus on Unrestricted Funds of £22,063 (2020: deficit £6,786). As a result, the charity’s Unrestricted Funds at 5 April 2021 are £41,991. The Trustees believe the financial performance to be satisfactory.

Reserves Policy

As Trustees, we have reviewed the charity's needs for reserves in line with the guidance issued by the Charity Commission. The Trustees seek to retain sufficient Unrestricted Reserves, to cover all known liabilities and to provide for a degree of contingency to complete the charity’s existing operations in an orderly manner in the event of an unforeseen reduction in income. These reserves also allow us to cashflow activities paid in arrears.

As the size of projects we deliver has grown, so has our need for reserves which help us cashflow them, and this is now estimated as a total requirement of approximately £15,000.

The statement of financial activities shows total unrestricted funds of £41,991 at 5 April 2021. Free reserves, defined as unrestricted funds excluding any designated sums and the value of Fixed Assets, are £37,934. Though this exceeds the stated level of unrestricted reserves required, the Trustees have agreed that the additional funds will be committed to future projects and performances, responsive to need and changing public health restrictions.

This policy is reviewed by the Trustees on an annual basis as part of the charity’s budgeting processes.

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE TRUSTEES’ REPORT YEAR ENDED 5 APRIL 2021

PLANS FOR FUTURE PERIODS

The impact of COVID-19 has significantly impacted on plans, and there remains considerable uncertainty around the practicalities of delivering cultural events, and around audience appetite for them. This makes our artist support work all the more important, and we are continuing to deliver FIELD, supported by partners who took part in last year’s virtual version to hold a physical residency for new participants. At the same time, we’re continuing to share the thinking from previous FIELD residencies in print publications and online, while also offering mentoring and creative opportunities to prior participants.

2021-22 sees a period of development as we prepare for a large socially engaged project, working with rural communities across Britain. This involves creative research and development alongside producing activity to identify partners. We anticipate this project will be the majority of our activity for the next few years.

At the same time, we’re sharing our work with Edinburgh’s young migrant voices in Imaginate’s Edinburgh International Children’s Festival in summer 2021, and then extending the project to include young people from Leicester and local audiences there.

Touring of Fault Lines, delayed due to the pandemic, has been rescheduled for spring 2022, and we continue with work to build audiences for that tour, which will mainly visit rural towns.

Alongside this, we expect to begin supporting recent graduates through a trainee artist position, as well as building our core team’s producing capacity. All this requires that we sustain existing funding relationships while diversifying our sources of funding, and this remains a priority.

The Trustees are open to proposals for potential trustees who bring new skills or perspectives to the charity. Skills auditing has not revealed any current deficit, but the charity understands diversity is predicated on the multiplicity of voices involved and would welcome new members.

On behalf of the board of Trustees

Elizabeth Moriarty, Trustee

8 July 2021

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE TRUSTEES’ REPORT YEAR ENDED 5 APRIL 2021

RESPONSIBILITIES OF THE TRUSTEES

The Trustees shall manage the business of the Charity and may exercise all the powers of the Charity unless restricted by the Charities Act or the constitution of the Charity.

The Trustees are responsible for the preparation of the financial statements for each financial year which show a true and fair view of the state of affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year.

In preparation of the financial statements the Trustees should follow best practice and:

  1. Select suitable accounting policies and apply them.

  2. Make judgements and exercises that are reasonable and prudent.

  3. Prepare the financial statements on a going concern basis unless it is inappropriate to assume that the charity will continue on that basis.

The Trustees are responsible for maintaining proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charity.

The Trustees 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.

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (issued in March 2005 by the Charities Commission England and Wales).

Signed on behalf of the Board of Trustees

Elizabeth Moriarty, Trustee

8 July 2021

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

INDEPENDENT EXAMINER’S REPORT TO THE MEMBERS ON THE UNAUDITED ACCOUNTS OF TWO DESTINATION LANGUAGE FOR THE YEAR ENDED 5 APRIL 2021

I hereby report to the Trustees/Members of Two Destination Language (Charity Registration Number 1165934) on the accounts for the year ended 5 April 2021 set out on pages 9 to 17.

Respective The charity's Trustees are responsible for the preparation of the responsibilities of accounts. The charity’s Trustees consider that an audit is not required Trustees and for this year under section 144 of the Charities Act 2011 (the Charities examiner Act) and that an independent examination is needed.

It is my responsibility to:  examine the accounts under section 145 of the Charities Act,  follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and  state whether particular matters have come to my attention.

Basis of My examination was carried out in accordance with general Directions independent given by the Charity Commission. An examination includes a review examiner’s of the accounting records kept by the charity and a comparison of the statement accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the 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 to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent In connection with my examination, no matter has come to my examiner's attention statement 1. which gives me reasonable cause to believe that in, any material respect, the requirements to:  keep accounting records in accordance with section 130 of the Charities Act; and  prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met; or 2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. 8 July 2021 Pete O’Hara, FCA, Chartered Accountant 4 Stoneyhurst Road West, Gosforth, Newcastle upon Tyne NE3 1PG

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE STATEMENT OF FINANCIAL ACTIVITIES YEAR TO 5 APRIL 2021

Note
Income
Income from Investments
2
Grants, Donations & Legacies
3
Income from Charitable Activities
4
Other Income
5
Total Income
Expenditure
Expenditure on Charitable Activities
6
Total Expenditure
Net Income/(Expenditure)
7
Balance brought forward
Balance carried forward at 5 April
Unrestricted
Funds
Restricted
Funds
Total
2021
Total
2020
£
£
£
£
1,037
-
1,037
977
375
98,991
99,366
196,930
27,220
-
27,220
42,649
16,478
-
16,478
2,843
45,110
98,991
144,101
243,399
23,047
75,385
98,432
167,554
23,047
75,385
98,432
167,554
22,063
23,606
45,669
75,845
19,928
86,933
106,861
31,016
£41,991
£110,539
£152,530
£106,861

The notes on pages 11 to 17 form part of the financial statements.

There are no recognised gains and losses during the year other than as shown above.

All the activities for the year are continuing activities.

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE STATEMENT OF FINANCIAL POSITION/BALANCE SHEET At 5 APRIL 2021

Notes
Fixed Assets
Tangible Fixed Assets
10
Current Assets
Debtors
11
Cash at Bank and In Hand
Creditors: Amounts Falling Due Within 1 Year
12
Net Current Assets
Total Net Assets
Represented By:
Unrestricted Funds
13, 14
Restricted Funds
13, 14
2021
£
4,057
33,377
121,644
155,021
(6,548)
148,473
£152,530
41,991
110,539
£152,530
2020
£
6,328
20,898
96,298
117,196
(16,663)
100,533
£106,861
19,928
86,933
£106,861

The notes on pages 11 to 17 form part of the financial statements.

The financial statements were approved by the Trustees, and authorized for issue, on 8 July 2021 and signed on their behalf by:

Elizabeth Moriarty, Trustee

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE NOTES TO THE ACCOUNTS AT 5 APRIL 2021

1. Accounting Policies

Basis of Accounting

The financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom accounting standards, the Companies Act 2006, the Charities Statement of Recommended Practice (SORP) and Financial Reporting Standard (FRS) 102 Section 1A Small Entities.

Income

Income is included in the Statement of Financial Activities (SOFA) when there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Such income is only deferred when the donor or funder has specified that the grant or donation can only be used in future accounting years or where the donor or funder has imposed conditions which must be met before the charity has unconditional entitlement.

Income from Investments

Interest receivable on bank deposits is included on an accruals basis.

Expenditure

All expenditure is accounted for on an accruals basis and is recognised when a liability is incurred.

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.

Tangible Fixed Assets and Depreciation

Depreciation is provided on any fixed assets at rates calculated to write off the assets over their remaining useful lives as follows:

IT & Stage Equipment - 33% per annum straight line

A full year’s depreciation charge is applied in the year of acquisition and no charge is made in the year of disposal.

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE NOTES TO THE ACCOUNTS AT 5 APRIL 2021

1. Accounting Policies (Cont.)

Impairment of Fixed Assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Fund Accounting

The charity has a number of restricted income funds to account for situations in which a funder requires that a grant must be spent on a particular purpose or where funds have been raised for a specific purpose. The aim and use of each restricted fund is set out in Note 13 to the financial statements.

All other funds are considered Unrestricted Funds and are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Taxation

Two Destination Language is a registered charity and, as such, is not liable to taxation on its income in the current year.

2. Income from Investments

Interest on Cash Deposits Unrestricted
Funds
Restricted
Funds
2021
2020
£
£
£
£
1,037
-
1,037
977
£1,037
£-
£1,037
£977

The 2020 total of £977 related wholly to Unrestricted Funds.

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE NOTES TO THE ACCOUNTS AT 5 APRIL 2021

3. Income – Grants, Donations & Legacies

Grant Income
Arts Council England – Fault Lines
Arts Council England – Fallen Fruit
Arts Council England – Emergency Fund
Corra Foundation - Resilience Fund
Creative Scotland – Lone Wolves
Creative Scotland - Shifting Tides
Foundation Scotland - Community
Response, Recovery & Resilience Fund
Creative Scotland – Touring
Donations
Unrestricted
Funds
Restricted
Funds
2021
2020
£
£
£
£
-
-
-
1,760
-
-
-
24,280
-
37,000
37,000
-
-
7,500
7,500
-
-
-
-
10,000
-
49,491
49,491
-
-
5,000
5,000
-
-
-
-
160,877
-
98,991
98,991
196,917
375
-
375
13
£375
£98,991
£99,366
£196,930

Of the 2020 total of £196,930, £13 relates to Unrestricted Funds and £196,917 to Restricted Funds.

4. Income from Charitable Activities

Box Office & Fee Income
Book Sales
Presenting Partner Contributions
Unrestricted
Funds
Restricted
Funds
2021
2020
£
£
£
£
25,842
-
25,842
23,106
1,378
-
1,378
-
-
-
-
19,633
£27,220
£-
£27,220
£42,649

The 2020 total of £42,649 relates wholly to Unrestricted Funds.

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE NOTES TO THE ACCOUNTS AT 5 APRIL 2021

5. Other Income

Reimbursed Expenses
Theatre Tax Relief
The 2020 total of £2,843 relates wholly to
6.
Expenditure on Charitable Activities
Direct Project Costs
Production Costs
Marketing Costs
Producer Fees
Admin/General Manager Fees
Support Costs
Overheads & Administration Costs
Depreciation
Core Artistic & Management Fees
Governance Costs
Independent Examination Fees
Other Accountancy Costs
Reimbursed Expenses
Theatre Tax Relief
The 2020 total of £2,843 relates wholly to
6.
Expenditure on Charitable Activities
Direct Project Costs
Production Costs
Marketing Costs
Producer Fees
Admin/General Manager Fees
Support Costs
Overheads & Administration Costs
Depreciation
Core Artistic & Management Fees
Governance Costs
Independent Examination Fees
Other Accountancy Costs
Unrestricted
Funds
Restricted
Funds
2021
2020
£
£
£
£
-
-
-
2,843
16,478
-
16,478
-
£16,478
£-
£16,478
£2,843
Unrestricted Funds.
Unrestricted
Funds
Restricted
Funds
2021
2020
£
£
£
£
-
44,641
44,641
109,871
-
460
460
18,003
-
-
-
14,500
-
-
-
5,760
3,761
-
3,761
1,796
3,610
-
3,610
3,164
14,716
30,284
45,000
13,500
600
-
600
600
360
-
360
360
£23,047
£75,385
98,432
£167,554
Of the 2020 total of £167,554, £50,379 relates to Unrestricted Funds and £117,175 to Of the 2020 total of £167,554, £50,379 relates to Unrestricted Funds and £117,175 to
Restricted Funds.
7. Net Income/(Expenditure)
2021 2020
Net Income/(Expenditure) is stated after charging/(crediting): £ £
Depreciation of owned Fixed Assets 3,610 3,164
Independent Examiner’s Fees 600 600

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE NOTES TO THE ACCOUNTS AT 5 APRIL 2021

8. Staff Costs/Trustees’ Remuneration

No staff were employed in the year (2020: None).

No remuneration was paid to or waived by Trustees in the year, but Trustees are able to claim re-imbursement at cost for any out-of-pocket expenses they incur in the course of their Trustee duties.

9. Taxation

Two Destination Language is a Charitable Incorporated Organisation and, therefore, is not liable to income tax or corporation tax on income or gains derived from its activities as they fall within the exemptions available.

10. Tangible Fixed Assets

Cost
At 6 April 2020
Additions in year
At 5 April 2021
Accumulated Depreciation
At 6 April 2020
Charge for year
At 5 April 2021
Net Book Value
At 5 April 2021
At 6 April 2020
Technical &
Stage
Equipment
£
IT &
Office
Equipment
£
Total
Fixed
Assets
£
7,444
2,048
9,492
-
1,339
1,339
7,444
3,387
10,831
2,481
683
3,164
2,481
1,129
3,610
4,962
1,812
6,774
£2,482
£1,575
£4,057
£4,963
£1,365
£6,328

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE NOTES TO THE ACCOUNTS AT 5 APRIL 2021

11. Debtors

11. Debtors
2021 2020
£ £
Trade Debtors 4,475 1,500
Grant Debtors 28,461 18,516
Other Debtors - 437
Accrued Income - 43
Prepayments 441 402
£33,377 £20,898
12. Creditors - Amounts Falling Due Within One Year
2021 2020
£ £
Accruals 6,205 1,500
Trade Creditors 443 -
Deferred Income - 15,163
£6,548 £16,663
13. Analysis of Net Assets between Funds
Unrestricted Restricted 2021 2020
Funds Funds
£ £ £ £
Fixed Assets 4,057 - 4,057 6,328
Debtors 4,916 28,461 33,377 20,898
Cash at Bank and In Hand 34,321 87,323 121,644 96,298
Creditors – Due Within 1 Year (1,303) (5,245) (6,548) (16,663)
£41,991 £110,539 £152,530 £106,861

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DocuSign Envelope ID: 1460C529-C108-425F-AB6C-8246A91E8797

TWO DESTINATION LANGUAGE NOTES TO THE ACCOUNTS AT 5 APRIL 2021

14. Analysis of Charitable Funds

Unrestricted General Fund
Movement on Restricted Funds
Arts Council England – Emergency
Fund
Corra Foundation - Resilience Fund
Creative Scotland - Shifting Tides
Foundation Scotland - Community
Response, Recovery and Resilience
Fund
Creative Scotland – Touring
Total Restricted Funds
Total Funds
Name of Restricted Fund
Arts Council England – Emergency
Fund / Corra Foundation - Resilience
Fund / Foundation Scotland -
Community Response, Recovery and
Resilience Fund
Creative Scotland – Shifting Tides
Creative Scotland – Touring
Fund at 6
April
2020
£
Incoming
Resources
for Period
£
Resources
Expended
for Period
£
Fund at 5
April 2021
£
19,928
45,110
(23,047)
41,991
-
37,000
(37,000)
-
-
7,500
(7,500)
-
-
49,491
(12,296)
37,195
-
5,000
(5,000)
-
86,933
-
(13,589)
73,344
86,933
98,991
(75,385)
110,539
£106,861
£144,101
£(98,432)
£152,530
Description, Nature & Purpose of the Restricted
Fund
Towards the cost of supporting the organisation to
deliver on its mission through the impact of the
COVID-19 pandemic
Towards the cost of Shifting Tides
Towards the cost of touring Fallen Fruit and Fault
Lines

15. Financial Commitments

No material financial commitments have been made in respect of future financial years.

16. Related Parties

There were no transactions in the year with related parties, such as are required to be disclosed under the Financial Reporting Standard for Smaller Entities (Effective April 2008).

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