**Mill Arts Centre Trust (A Charitable Incorporated Organisation) Registered Charity No: 1165998**
**Trustees' Report and Financial Statements For the Year Ended 31 March 2021**
**Mill Arts Centre Trust**
## **Contents**
||**Page**|
|---|---|
|Reference and Administrative Details|1|
|Trustees' Report|2 - 13|
|Statement of Trustees' Responsibilities|14|
|Independent Examiner's Report|15|
|Statement of Financial Activities|16|
|Comparative Statement of Financial Activities|17|
|Balance Sheet|18|
|Statement of Cash Flows|19|
|Notes to the Financial Statements, incorporating:||
|Accounting Policies|20 - 24|
|Other Notes to the Financial Statements|25 - 31|
## **Mill Arts Centre Trust**
# **Reference and Administrative Details For the Year Ended 31 March 2021**
## **Trustees**
Gwen Van Spijk (Chair) Karen Warren Barbara Baseley-Smith Louise Norton Cllr Andrew McHugh
## **Senior Management Team**
Artistic Director & Joint CEO Georgia Bradley (Maternity Leave until 14-02-21) Executive Director & Joint CEO Andrew Lister (Interim CEO until 14-02-21) **Secretary** Andrew Lister **Charity Number** 1165998 **Registered Office and** The Mill Arts Centre Trust **Business Address** Spiceball Park Road Banbury Oxfordshire OX16 5QE **Principal Bankers** Yorkshire Bank 7 Gold Street Northampton NN1 1EN **Independent Examiner** Andrew C Jones, CA(Aus), FCA Cooper Parry Group Limited Sky View Argosy Road East Midlands Airport Castle Donington Derby DE74 2SA
Page 1
## **Mill Arts Centre Trust**
## **Trustees’ Report For the Year Ended 31 March 2021**
## **TRUSTEES REPORT**
The Trustees present their annual report together with the financial statements of the charitable incorporated organisation for the year ended 31 March 2021.
The financial statements comply with the Charities Act 2011, the charity’s Constitution 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 issued in October 2019 (Charities SORP 2019).
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Constitution**
The charity is a charitable incorporated organisation, registered with the Charity Commission for England and Wales on 11 March 2016.
The Charity’s constitution is the primary governing document of the charity.
Details of the Trustees who served throughout the year are included in the Reference and Administrative details on page 1.
## **Members’ Liability**
In the event of the charity being wound up, the Members have no liability to contribute to at the assets of the trust and no personal responsibility for settling its debts and liabilities.
## **Trustees’ Indemnities**
In accordance with normal commercial practice, the charity has purchased insurance to protect Trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on charity business. The insurance provides cover up to £1,000,000.
## **Method of Recruitment or Appointment or Election of Trustees**
The charity’s constitution specifies that the number of Trustees shall not be less than 3 and not more than 12. All Trustees are appointed for a 3 year term except for the Chair of Trustees who is appointed for a 4 year term. Subject to remaining to be eligible to be a Trustee, any Trustee can be re-appointed or reelected.
The board of Trustees consider nominations for any new Trustee who can make a valuable contribution to the strategy and management of the charity, with any appointments of new Trustees being approved at a meeting of the Board of Trustees.
Page 2
## **Mill Arts Centre Trust**
## **Trustees’ Report (continued) For the Year Ended 31 March 2021**
## **Policies and Procedure adopted for the Induction and Training of new Trustees**
All Trustees received a general introduction to the charity, its organisation, structures and employees. They are provided with copies of policies, procedures, minutes, accounts, budgets, plans and other documents they will need to undertake their role as Trustees. As there are normally only a few new Trustee appointments each year, induction tends to be done informally and is tailored specifically to the individual. Advantage is taken of specific courses offered by various external organisations as appropriate.
A bespoke governance development program is operated throughout the year which allows Trustees to meet informally as a team for training, to keep the Trustees updated on relevant developments impacting on their roles and responsibilities, and to contribute to the strategic leadership and direction of the charity.
## **Organisational Structure**
The Board of Trustees are responsible for the overall governance of the charity. They set the general strategy and business plans for the charity, approve an annual budget, monitor performance against the plans and budgets and make major decisions about strategy, charity development and senior staff appointments.
The Trustees policy is to meet at least 6 times each year. However, Trustees have also established a Finance sub-committee for the purposes of undertaking the in-depth management of the financial, risk and resource aspects of the governance of the charity. The Board of Trustees appoint the members to this subcommittee.
This sub-committee has continued to meet monthly throughout the year in undertaking their respective responsibilities as set out in their respective terms of reference as agreed by the Board of Trustees.
The Trustees have delegated the day-to-day management of the Trust to the Executive team, comprising the Artistic Director/Joint CEO and Executive Director/Joint CEO. During the period of maternity leave of the Artistic Director/CEO from January 2020 to February 2021 the Executive Director acted as Interim CEO.
During the year, the Trustees have also monitored application of the Charity Governance Code and how the charity’s current governance structure meets the best practice principles set out in Code. The Trustees are satisfied that they have applied all the material best practice requirements of the Code and have maintained a plan to ensure all remaining areas of best practice are implemented over the next 12 months as follows:
- Board membership will be reviewed in line with the organisations strategic plan. An up to date skills audit will be conducted and a strategy for recruitment of new members created based on this information.
- Diversity both in terms of board membership and across the organisation remains at the top the agenda as the organisation emerges from the pandemic. Training for board and staff members will be scheduled and diversity objectives will be agreed.
Page 3
## **Mill Arts Centre Trust**
## **Trustees’ Report (continued) For the Year Ended 31 March 2021**
## **Arrangements for Setting Pay and Remuneration of Key Management Personnel**
The Trustees consider the Board of Trustees and the executive team to comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Trust on a day to day basis. All Trustees give of their time freely and no Trustee received any remuneration in the current or prior year. Details of Trustees’ expenses are disclosed in note 24 to the financial statements.
The pay of the executive team is reviewed annually in line with the charity’s pay and remuneration policy and by reference to remuneration levels for similar sized charities in the sector.
## **Related Parties and Other Connected Charities and Organisations**
The Mill Arts Centre building is owned by Oxfordshire County Council and leased to the Trust on a peppercorn rent. In addition, Oxfordshire County Council provides facilities management and supply of utilities to the Trust as support in kind.
Cherwell District Council supports the Trust through an annual public subsidy of £171,000. An officer of the council sits as an observer on the Board of Trustees to oversee application of these funds.
## **OBJECTIVES AND ACTIVITIES**
## **Objects and Aims**
The principal objects of the charity, as set out in its Constitution, are to:
- promote the arts for public benefit
- advance education for public benefit
- provide (and assist in the provision of) facilities for recreation and other leisure-time occupation in the interests of social welfare with the objective of improving the conditions of life for the residents of the area
- further such other charitable purposes as the trustees see fit from time to time in the area for the public benefit
The key aims of the charity are summarised below:
- To use our resources to further develop a high-quality flourishing artistic programme to inspire, encourage learning and creativity, engage and entertain our audiences, whilst making our mark locally, regionally and nationally
- To seek to secure capital redevelopment of our building in order to ensure our facilities match our ambition and allow us to establish our financial independence
Page 4
## **Mill Arts Centre Trust**
## **Trustees’ Report (continued) For the Year Ended 31 March 2021**
## **Objects and Aims (continued)**
- To establish our network, as key players and partners in the economic development of a town on the cusp of transformation.
- To secure our reputation as the go-to venue for commissioning and showcasing dance in Oxfordshire and the wider South-East region.
- To establish our network, as key players and partners in the economic development of a town on the cusp of transformation
- To secure our reputation as the go-to venue for commissioning and showcasing dance in Oxfordshire and the wider South-East region
- To develop our brand identity through embedding and celebrating our values to create better understanding amongst our audiences to build loyalty and pride
- To develop meaningful, sustainable community partnerships to ensure that we are reaching the members of our communities who need us the most
- To continue to grow our geographical reach, expanding our programme of off-site work in Banbury, Bicester and beyond
- To continue to develop our staff team enabling them to grow with the organisation, creating a culture of ownership and empowerment, and supporting their professional development as arts leaders of the future
- To remain nimble, adapting to the ever changing political, social and economic climate and adept at identifying opportunities that align with our core charitable aims
The key priorities are contained in the charity’s 5-year strategic plan. The strategic plan is reviewed annually by the Trustees and the key actions for each year are set as a result of this review.
However in light of the ever-evolving exceptional situation arising from the pandemic, the immediate priority actions for the charity for the year ended 31[st] March 2021 were updated as follows:
## **Re-engaging with Audiences**
- Embedding an over and above approach to safety-first in response to the pandemic to ensure that as The Mill re-opens from lockdown all activity adds to rebuilding audience confidence.
- Developing the capacity to be able to deliver both event and learning activity effectively online and remotely to audiences and participants.
- Recognising the core benefits and importance of on-site activity and to put in place the equipment and procedures to be able to safely resume in-person / live activity at the earliest opportunity.
Page 5
## **Mill Arts Centre Trust**
## **Trustees’ Report (continued) For the Year Ended 31 March 2021**
## **Re-engaging with Audiences (continued)**
- To support sectors of the community hardest-hit by COVID 19 through the development of projects that encourage compliance with government advice and alleviate the impacts of lockdown and self-isolation on loneliness.
- To seek available funding opportunities to support The Mill to deliver and balance the identified priorities.
## **Supporting Staff, Artists and Communities**
- To prioritise support and retention of the committed staff team, through support during lockdown including appropriate use of the Government’s furlough scheme.
- Providing employment opportunities for tutors, freelance staff and artists wherever restrictions allow.
- Continued development of partnerships with local organisations to support the local creative community and to understand their evolving needs to inform future project planning.
- To maintain key relationships with dance artists and companies in order to evolve the programme as the country emerges from the pandemic in line with audience needs.
## **Preparing for The Future**
- To work with Cherwell District Council to identify and appraise suitable long term premises solutions for the organisation.
- To review MACT’s business plan, with a clear trajectory built around the need for a fit for purpose building in order to enable the Trust to realise the Mill’s potential whilst moving to a sustainable business model to reduce future reliance on local authority and voluntary income.
- To engage the services of external consultants to support and challenge the development of a robust business development plan and feasibility study into identified options.
## **Public Benefit**
The Trustees confirm that they have complied with the requirement in the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit in exercising their powers and duties. They have referred to this guidance when reviewing the charity’s objects and aims and in planning its future activities and are satisfied that the charity’s activities comply with this guidance and are of public benefit.
Page 6
## **Mill Arts Centre Trust**
## **Trustees’ Report (continued) For the Year Ended 31 March 2021**
## **ACHIEVEMENTS AND PERFORMANCE**
As is evidenced by the objectives identified above, the charity continues to evolve and to adapt to the ever-changing sector in which it operates. The charity is committed to continual improvement which is achieved in a number of ways; including improvement planning, review meetings, beneficiary feedback, continual professional development, performance management, self-evaluation, data analysis and action planning.
The particular highlights for the charity during the otherwise extraordinarily challenging year ended March 2021 were as follows:
- Through diligent business planning and an above and beyond approach to safety, The Mill has been able to be amongst the first arts organisations to resume activities whenever restrictions have permitted thereby bringing creative and cultural activities back to the community.
- In spite of the challenges The Mill was able to deliver a 11-performance run of _Snow Play_ in December 2020 for both in person and online audiences. Audience feedback demonstrated the pent up need for cultural activities with one audience member commenting “thank you so much for putting this on… just what was needed after 2020… and they went to such a lot of effort to make it Covid secure”.
- The Creative Learning programme has adapted and evolved, maintaining relationships with participants and helping many to experience online learning for the first time.
- Support from audiences has been invaluable, not least as evidenced through the positive response of ticket-holders as events have needed to be cancelled or rescheduled with the vast majority retaining tickets for new dates, donating the value or joining the membership scheme.
- The funding awards from The Arts Council Emergency Fund and DCMS Culture Recovery Fund further demonstrate the need and support for The Mill as a result of our ability to demonstrate the demand for creative and cultural activities in Banbury and beyond.
## **NOTABLE CHALLENGES**
- The uncertainty arising from the COVID-19 pandemic has been a key challenge throughout the review period, requiring continual review of plans and programmes to comply with ever-changing current restrictions, understand audience behaviours, and identify and apply to potential funding opportunities.
- The significant financial impact of COVID-19 on Cherwell District Council led to the need to work with stakeholders to re-work the future business plan in light of the Council being no longer able to proceed with taking ownership of the building from the County Council. A significant amount of time and resource was also dedicated to planning mitigations for expected reductions in grant funding from the District Council in future periods.
Page 7
## **Mill Arts Centre Trust**
## **Trustees’ Report (continued) For the Year Ended 31 March 2021**
## **NOTABLE CHALLENGES (continued)**
- On Christmas Eve 2020 the River Cherwell once again flooded following prolonged heavy rain and causing the ground floor of The Mill to be inundated with floodwater. This resulted in the final performance of Snow Play being cancelled, however as Oxfordshire was to move to local restriction tier 4 from Boxing Day, and subsequently national lockdown restrictions were reimposed, the clean-up operation was able to take place whilst The Mill was nevertheless required to remain closed due to COVID-19.
## **FINANCIAL REVIEW**
2020-21 saw the Trust return an overall net surplus of £41,549 to end the year with a combined balance sheet net deficit of funds of £3,560 at year end.
- **Live Programme**
Throughout the vast majority of the review period live events were either prohibited or significantly restricted as a result of prevalent Government COVID-19 restrictions and guidelines.
The Mill was able to initially offer a limited season of film showings during Autumn 2020 as restrictions eased first on cinemas, providing the first opportunity to bring audiences back to The Mill.
Through investment from the Culture Recovery Fund the organisation was subsequently able deliver a socially distanced festive production of _Snow Play_ for families during December 2020 in partnership with Lyngo Theatre.
In addition the funding from the DCMS enabled the acquisition of the necessary equipment to be able to live-stream events from the Theatre, thereby giving audiences the option to either view the show inperson or to watch virtually from home.
- **Education Classes**
The Creative Learning programme was able to resume from September 2020, as restrictions on Further Education were relaxed. A number of classes were able to successfully switch to online delivery, and this success has led to the intention to retain a number of online learning opportunities alongside the on-site programme into the future.
Whilst some classes were able to be delivered online, the priority has been to resume in person learning as soon as safely possible. The requirement for specialist equipment, materials and workspace along with the social element of the courses and inequality of technology access amongst students and tutors meant that the greater majority of regular classes could only be delivered effectively on-site.
Through detailed risk assessment and taking an above and beyond approach to safety, the response of participants evidenced the clear need for the programme, and helped to rebuild confidence with students reporting that they felt particularly safe taking part at The Mill with the precautions that had been put in place.
Page 8
## **Mill Arts Centre Trust**
## **Trustees’ Report (continued) For the Year Ended 31 March 2021**
## • **Education Classes (continued)**
Therefore the programme was impacted by subsequent reimposition of restrictions in January 2021, with a reduced number of classes that were able to continuing to operate online.
SFA funding for academic year to Jun 2020 included an allocation of £5,010 from the ESFA for non-delivery because of COVID19 in respect of term 3 for academic year 2019-20.
## • **Grant Income (including Project Grants)**
A number of grants were received in the prior period for activity due to be delivered during the review period. Agreement was sought with each awarding body to further defer the grants into the following financial year with a view to adapting and delivering the programme of work when restrictions permitted.
Cherwell District council provided core revenue support of £171,000 which included an allocation of £30,000 for New Growth which was deferred to 2021/2 due to ongoing restrictions preventing development activity during the review period.
A grant of £30,188 was awarded from the Arts Council England COVID Emergency Response Fund, and subsequently an award of £118,560 from the DCMS Culture Recovery Fund to support the organisation during the pandemic and ongoing restrictions.
Business support grants totalling £43,857 were awarded from government schemes supporting Retail, Leisure and Hospitality business including the Local Restrictions Grant scheme and £8 7 , 527 was received in employment support from the Coronavirus Job Retention Scheme.
## • **Donations & Memberships**
Sales of memberships were suppressed during the review period as it was agreed to extend existing memberships for 12 months due to the inability to deliver membership benefits during lockdown. Nonetheless new membership income represented 68% compared to prior year as new audiences still chose to support The Mill through joining the scheme.
Individual donations were however 60% up on the prior year as customers continued to show their support for the organisation through lockdown, including through choosing to donate the cost of tickets for events that could not go ahead.
## • **Hospitality**
Through the majority of the year the hospitality operation was unable to open at all. However during the period of relatively relaxed restrictions between September and December 2020 a limited operation was resumed in full compliance with prevailing guidance for hospitality businesses.
During this period a ‘hotdesk and lunch’ offer was extremely well received, offering a safe alternative to people working at home and helping to alleviate isolation.
Page 9
## **Mill Arts Centre Trust**
## **Trustees’ Report (continued) For the Year Ended 31 March 2021**
## • **Hospitality (continued)**
During the review period the organisation was able to invest in technology to support the fuller resumption of the hospitality operation in due course including the creation of a second bar space in order to spread audiences in support of social distancing as well as POS technology to enable app, online and at-seat contactless ordering.
## • **Theatre & Room Hire**
As a result of the pandemic, long-standing sub-tenants Creation Theatre Company gave notice on their office space at The Mill resulting in the loss of this regular source of income. In addition Banbury Community Church were unable to hold regular Sunday meetings throughout the period resulting in the loss of another recurring income stream.
There were limited opportunities for ad-hoc room hires, however during the limited windows of relaxed restrictions the demand for spaces proved reassuring, and new arrangements had provisionally been put in place for occupation of the vacant spaces from early in the next financial year.
## • **Overheads**
The trust supported staff to access the furlough scheme where appropriate, as a result fixed payroll costs appear comparatively constant against prior years although this was enabled and offset by funding support from the Coronavirus Job Retention Scheme.
Where possible negotiation with suppliers of fixed contracts took place to reduce or suspend services whilst the building remained closed.
Investment in transitioning IT & Telephony to ‘the cloud’ with support from the Culture Recovery Fund supported staff to move to remote working whilst also delivering an envisaged reduction in future overhead costs.
The grant from the Culture Recovery Fund included support for technical equipment purchase to enable the organisation to work effectively both online and away from base in the future, giving the flexibility to respond to trajectory of the pandemic.
## **Reserves Policy**
Restricted reserves at year-end total £3,938 and unrestricted reserves at year-end total a deficit balance of £7,498 to give a combined total deficit reserves position of £3,560 at the year end.
The finance group review the balance sheet on a monthly basis and Trustees formally assess the reserve levels of the charity at least annually. This review encompasses the nature of the income and expenditure streams, the need to match income with commitments and the nature of reserves. The Trustees also take into consideration the future plans of the charity, the uncertainty over future income streams and other key risks identified during the risk review.
Page 10
## **Mill Arts Centre Trust**
## **Trustees’ Report (continued) For the Year Ended 31 March 2021**
## **Reserves Policy (continued)**
In light of the pandemic, Trustees identified that the significant challenge to cash flow would arise during the period of resuming activities as the country emerges from lockdown. The approach was therefore adopted of repleting reserves as far as possible through the period of lockdown in order to ensure the charity had the resources in place to weather future periods of uncertainty.
The Trustees have determined that the charity should aspire to hold free cash reserves sufficient to cover approximately one month’s core operating costs, which would equate to approximately £50,000. The reason for this is to provide sufficient working capital to cover delays between spending and receipts of income and to provide a cushion to deal with the reduction in income levels in future years, together with unexpected emergencies such as long-term staff absences etc. Although the current level of free (unrestricted) reserves is below the target level identified above, the Trustees continue to look at and evaluation strategies for raising additional income whilst also reviewing key areas of operational expenditure to ensure the targeted reserves can be achieved in future years.
## **Principal Risks and Uncertainties**
The Trustees have a risk management strategy which comprises:
- An annual review of the principal risks and uncertainties that the charity faces;
- The establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and
- The implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
The results of this process are documents in the Risk Register, which is constantly reviewed in light of any new information and formally reviewed annually.
## **The principal risks and uncertainties facing the charity are as follows:**
## 1. **Short term building tenure agreement leading to potential** :
Loss of business and insolvency Reduced fundraising capacity Loss of employment opportunities
2. **Inability to maintain revenue levels due to expected reductions in District Council funding in future periods leading to potential:**
Loss of business and insolvency Loss of employment opportunities Inability to meet conditions of project funding
Page 11
## **Mill Arts Centre Trust**
## **Trustees’ Report (continued) For the Year Ended 31 March 2021**
## 3. **Poor condition of building leading to potential:**
Health and safety considerations, potential closure if a major incident were to occur Loss of reputation due to poor customer experience Inability to deliver charitable objectives
## 4. **Ongoing flooding risk leading to potential:**
Loss of income arising from extended period of closure Inability to obtain insurance against future flood risk
## **Going Concern**
In common with Cultural Organisations across the UK, the outbreak of COVID19 has had a direct and significant impact on the Trust’s ability to deliver our programme of activities due to ongoing restrictions. As a result, this has led to a significant depletion in earned incomes throughout the review period. However, the Trust have been able to access significant financial support through a number of sources including Arts Council England Emergency Funding, the Department of Culture, Media and Sport (DCMS) Culture Recovery Fund, Local Authority Retail Leisure and Hospitality Grants and the Coronavirus Job Retention Scheme. In addition, Cherwell District Council continued to support the Trust throughout the period and a funding agreement is in place through to end of 2021/22, and budget request has been agreed for 2022/23.
The Trust was able to successfully resume areas of the operation through the Autumn of 2020 during the period of comparatively light COVID restrictions, and participant numbers, income and feedback gave significant confidence that audience numbers and therefore earned income would recover post pandemic.
Subsequent to the review period, grants from two further rounds of the DCMS Culture Recovery Fund have supported the organisation as remaining restrictions have been gradually lifted. In Autumn 2021 The Mill was able to deliver a near pre-pandemic scale programme, with audience numbers and earned incomes returning to and exceeding pre-pandemic levels further cementing this view.
The Trustees’ Finance Sub Group continue to meet monthly in order to maintain a continual risk assessment of the financial position, and the Trust meet regularly with Cherwell District Council to ensure our future business model reflects the ever-evolving situation. Therefore, after making appropriate enquiries, the Board of Trustees has 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 Statement of Accounting Policies within the financial statements.
## **PLANS FOR FUTURE PERIODS**
The charity's plans for future periods are:
- Further develop planned route to capital development and to secure long-term premises for the organisation
Page 12
## **Mill Arts Centre Trust**
## **Trustees’ Report (continued) For the Year Ended 31 March 2021**
## **PLANS FOR FUTURE PERIODS (continued)**
- Continue to embed the relationship with Arts Council England, and develop the organisation in line with the Arts Council investment principles with the intention of applying to join the National Portfolio 2023.
- Recruitment to expand and diversify the Board of Trustees
- To continue to support our staff and local artists through the ongoing COVID19 pandemic through access to appropriate funding streams.
- To continue developing key dance events in our programme including informal “Audience Clubs” facilitated by a professional dramaturg.
- Continue to develop our audiences of the future by more high-quality reputable dance work for young children and families. We will introduce a regular programme of participatory events for early years children, including quarterly Baby Boogie sessions in both Banbury and Bicester.
- Begin the process of commissioning and producing our own work, something that the organisation has never undertaken in any context, growing our reputation as a cultural force within the region.
- Continue to develop audiences for arts and cultural activities in Bicester working in partnership with local organisations and venues including Bicester Library, Bicester Town Council and Kingsmere Community Centre. We will programme work into non-traditional performance spaces and facilitating participatory activities for both older and younger audiences.
- Grow our Creative Learning Programme to include the widest possible range of arts-based activities including a dance focused curriculum.
- Pilot the programming of cinema for early years children and families into off site locations within the town in order to reach our widest possible audience.
## **FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS**
The charity and its Trustees do not act as Custodian Trustees of any other charity.
The Trustees’ Report was approved by order of the Board of Trustees on 28[th] January 2022 and signed on its behalf by:
………………………………....................
**Gwen Van Spijk Chair of Trustees**
Page 13
## **Mill Arts Centre Trust**
## **Trustees’ Report (continued) For the Year Ended 31 March 2021**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. 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 (FRS102) 2019;
- make judgements and estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards (FRS102) 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 charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations and the provisions of the Constitution. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by order of the Board of Trustees on 28[th] January 2022 and signed on its behalf by:
……………………….........…..
Gwen Van Spijk Chair of Trustees
Page 14
**Mill Arts Centre Trust**
## **Independent Examiner’s Report to the Trustees of the Mill Arts Centre Trust**
I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 16 to 31.
## **Responsibilities and Basis of Report**
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent Examiner’s Statement**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **Andrew C Jones CA (Aus) FCA**
Member of the Institute of Chartered Accountants in England and Wales
Cooper Parry Group Limited Sky View Argosy Road East Midlands Airport Castle Donington Derby DE74 2SA
31 January 2022
Page 15
**Mill Arts Centre Trust**
## **Statement of Financial Activities for the year ended 31 March 2021**
(incorporating an Income & Expenditure Account)
|**Note**
**Income**
**_Income for charitable activities_**
Income from live programme
Shows & films
2
Education classes
3
Box office income
Exhibitions
Other income
4
Grants
5
Donations
6
Project grants
7
**_Income for generating funds_**
Income from bar and café
8
Income from theatre and room hire
9
_Total income:_
**Expenditure**
**_Expenditure on charitable activities_**
Expenditure on live programme
Shows and films
10
Education classes
11
Box office costs
12
Other costs
13
Project costs
14
Payroll costs (not included elsewhere)
Overhead costs
Establishment costs
15
Marketing costs
16
Office costs
17
Professional and financial costs
18
**_Expenditure on generating funds_**
Expenditure on bar and café
19
**_Depreciation of fixed assets_**
Depreciation
20
_Total expenditure:_
**Net income/(expenditure) before transfers**
**Transfers between funds**
31
**Net movement in funds for the year**
**Reconciliation of funds**
Funds at 31 March 2020
31
Funds at 31 March 2021
31
**Net movement in funds for the year**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Total Funds**
**2021**
**Total Funds**
**2020**
£
£
£
£
2,052
0
2,052
141,798
17,585
0
17,585
91,163
795
0
795
36,314
0
0
0
503
3,319
0
3,319
7,314
390,944
30,188
421,132
179,167
4,303
0
4,303
12,996
0
0
0
35,612
3,953
0
3,953
91,853
11,879
0
11,879
68,924|
|---|---|
||434,830
30,188
465,018
665,644|
||6,737
0
6,737
99,024
11,445
0
11,445
45,705
11,061
8,913
19,974
34,096
0
0
0
0
0
0
0
58,687
219,416
11,363
230,779
226,264
68,971
7,194
76,165
49,878
18,909
0
18,909
39,740
25,758
3,337
29,095
25,075
4,353
0
4,353
17,456
10,297
0
10,297
65,597
11,592
4,123
15,715
21,100|
||388,539
34,930
423,469
682,622|
||46,291
-4,742
41,549
-16,978
9,087
-9,087
0
0|
||55,378
-13,829
41,549
-16,978|
||-62,876
17,767
-45,109
-16,322
-7,498
3,938
-3,560
-45,109|
||55,378
-13,829
41,549
-28,787|
All of the Trust's activities derive from continuing operations during the financial year. The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 20 to 31 form part of these financial statements.
Page 16
**Mill Arts Centre Trust**
## **Statement of Financial Activities for the year ended 31 March 2020**
(incorporating an Income & Expenditure Account)
|**Note**
**Income**
**_Income for charitable activities_**
Income from live programme
Shows & films
2
Education classes
3
Box office income
Exhibitions
Other income
4
Grants
5
Donations
6
Project grants
7
**_Income for generating funds_**
Income from bar and café
8
Income from theatre and room hire
9
_Total income:_
**Expenditure**
**_Expenditure on charitable activities_**
Expenditure on live programme
Shows and films
10
Education classes
11
Box office costs
12
Other costs
13
Project costs
14
Payroll costs (not included elsewhere)
Overhead costs
Establishment costs
15
Marketing costs
16
Office costs
17
Professional and financial costs
18
**_Expenditure on generating funds_**
Expenditure on bar and café
19
**_Depreciation of fixed assets_**
Depreciation
20
_Total expenditure:_
**Net income/(expenditure) before transfers**
**Transfers between funds**
31
**Net movement in funds for the year**
**Reconciliation of funds**
Funds at 31 March 2019
31
Funds at 31 March 2020
31
**Net movement in funds for the year**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Total Funds**
**2020**
**Total Funds**
**2019**
£
£
£
£
141,798
0
141,798
109,468
91,163
0
91,163
76,408
36,309
0
36,309
36,314
300
0
300
503
7,314
0
7,314
6,481
178,500
667
179,167
116,055
7,786
5,210
12,996
6,166
0
35,612
35,612
63,262
91,853
0
91,853
85,488
68,924
0
68,924
80,587|
|---|---|
||623,947
41,489
665,436
580,732|
||98,024
1,000
99,024
96,244
45,705
0
45,705
41,532
34,096
0
34,096
33,960
0
0
0
0
0
58,687
58,687
43,141
233,865
4,000
237,865
226,264
49,878
0
49,878
41,188
38,863
877
39,740
48,511
25,075
0
25,075
19,553
17,456
0
17,456
14,894
65,597
0
65,597
63,060
16,978
4,122
21,100
25,073|
||625,537
68,686
694,223
653,420|
||-1,590
-27,197
-28,787
-72,688
0
0
0
0|
||-1,590
-27,197
-28,787
-72,688|
||-61,286
44,964
-16,322
56,366
-62,876
17,767
-45,109
-16,322|
||-1,590
-27,197
-28,787
-72,688|
All of the Trust's activities derive from continuing operations during the financial year. The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 20 to 31 form part of these financial statements.
Page 17
## **Mill Arts Centre Trust**
## **Balance Sheet as at 31 March 2021**
|**Notes**
**Tangible Fixed Assets**
Theatre equipment
24
Office equipment
24
Fixtures and fittings
24
**Current assets**
Stocks
25
Trade debtors
26
Prepaid costs and accrued income
27
Credit card collections due
VAT recoverable
Bank and cash
38
**Current liabilities**
Bank overdraft
38
Trade creditors
VAT, PAYE & NIC owing
28
Sums held as agents for third parties
29
Accrued costs and prepaid income
30
**Net Assets**
**Funds of the Trust:**
**Restricted Funds**
Restricted funds
31
**Unrestricted Funds**
General funds
31
**Total Funds**|**2021**
**2020**
£
£
49,715
60,489
4,067
8,434
676
1,251|
|---|---|
||54,458
70,174|
||1,833
4,243
7,850
18,867
17,300
38,743
-668
-1,577
12,178
0
12,033
2,293|
||50,526
62,569|
||0
56,492
17,519
50,947
4,987
7,551
14,494
13,989
71,544
48,873|
||108,544
177,852|
|||
||-3,560
-45,109|
||3,938
17,767
-7,498
-62,876|
||-3,560
-45,109|
The financial statements were approved by the Trustees and signed on 28 January 2022 on their behalf by:
**Gwen Van Spijk Chair of Trustees**
The notes on pages 20 to 31 form part of these financial statements.
Page 18
**Mill Arts Centre Trust**
## **Statement of Cash Flows for the year ended 31 March 2021**
|**Notes**
**Cash flows from operation activities**
Net cash flow provided by /used inoperating activities
37
**Cash flows from investing activities**
Capital grants
Purchases of fixed assets
**Cash flows from financing activities**
Repayments of borrowings
**Change in cash and cash equivalents in the period**
Cash and cash equivalents at the beginning of the period
38
**Cash and cash equivalents at the end of the period**
38
The notes on pages 20 to 31 form part of these financial statements.|**2021**
**2020**
£
66,232
-34,075
0
0
0
-163
0
0|
|---|---|
||£66,232
-£34,238|
||-54,199
-19,961|
||£12,033
-£54,199|
|||
Page 19
## **Mill Arts Centre Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **1. Accounting Policies**
A summary of the principal accounting policies, which have been consistently applied, except where noted, is set out below.
## **Basis of preparation**
> The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS102), the 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 issued in October 2019 _(Charities SORP 2019)_ and the Charities Act 2011.
> The charity meets the definition of a public benefit entity under FRS102.
## **Going Concern**
> The Trustees assess whether the use of going concern is appropriate (i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern). The Trustees make this assessment in respect of a period of
> one year from the date of approval of the financial statements.
In common with Cultural Organisations across the UK, the outbreak of COVID19 has had a direct and significant impact on the Trust’s ability to deliver our programme of activities due to ongoing restrictions. As a result, this has led to a significant depletion in earned incomes throughout the review period. However, the Trust have been able to access significant financial support through a number of sources including Arts Council England Emergency Funding, the Department of Culture, Media and Sport (DCMS) Culture Recovery Fund, Local Authority Retail Leisure and Hospitality Grants and the Coronavirus Job Retention Scheme. In addition, Cherwell District Council continued to support the Trust throughout the period and a funding agreement is in place through to end of 2021/22, and budget request has been agreed for 2022/23.
The Trust was able to successfully resume areas of the operation through the Autumn of 2020 during the period of comparatively light COVID restrictions, and participant numbers, income and feedback gave significant confidence that audience numbers and therefore earned income would recover post pandemic.
Subsequent to the review period, grants from two further rounds of the DCMS Culture Recovery Fund have supported the organisation as remaining restrictions have been gradually lifted. In Autumn 2021 The Mill was able to deliver a near pre-pandemic scale programme, with audience numbers and earned incomes returning to and exceeding pre-pandemic levels further cementing this view.
The Trustees’ Finance Sub Group continue to meet monthly in order to maintain a continual risk assessment of the financial position, and the Trust meet regularly with Cherwell District Council to ensure our future business model reflects the ever-evolving situation.
Page 20
## **Mill Arts Centre Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **Going Concern (continued)**
Therefore, after making appropriate enquiries, the Board of Trustees has 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 Statement of Accounting Policies within the financial statements.
## **Fund Accounting**
Unrestricted funds are donations and other income received or generated by the charity's charitable purposes.
Restricted general funds are to be used for specific purposes as set out by the funder donor and may include grants received from Cherwell District Council, Banbury Town Council and Banbury Charities. All expenditure which meets these criteria is charged to the respective restricted funds.
> Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by funders where the asset acquired or created is held for a specific purpose.
## **Income**
> Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received, and the amount
> can be measured reliably.
> Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured
> reliably and is not deferred.
> Income generated from the supply of goods and services is included in the Statement of Financial
> Activities in the year in which the supply is made. This includes income generated from the sale of merchandise.
> The charity acts as agent for some artists and some exhibitioners, collecting sums on their behalf and accounting for them after charging agreed commissions.
## **Donated Services and Facilities**
Donated consultancy services and facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.
Page 21
## **Mill Arts Centre Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **Donated Services and Facilities (continued)**
On receipt, donated consultancy services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
In accordance with the Charities SORP 2019, any general volunteer time is not recognised in the financial statements.
## **Interest Receivable**
> Interest on funds held on deposit is included when receivable and the amount can be measured
> reliably by the charity which is normally upon notification of the interest paid or payable by the bank.
## **Expenditure and Irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Expenditure on charitable activities includes the costs of the charity's artistic and educational events and services in furtherance of the charity's charitable purposes, together with payroll costs other than the bar & staff and the overheads associated with the charitable activities.
- Costs of raising funds comprise the costs, including payroll, of the bar and cafe.
- Other expenditure represents those items not falling into any other heading. Irrecoverable VAT is charged as a professional and financial cost.
## **Tangible Fixed Assets**
Assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.
Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the Balance Sheet at cost and depreciated _over_ their expected useful economic life. The related grants are credited to a restricted fund in the Statement of Financial Activities. Depreciation on such assets is charged to the restricted fund in the Statement of Financial Activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the charity's depreciation policy. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.
Page 22
## **Mill Arts Centre Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **Tangible Fixed Assets (continued)**
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost of each asset on a straight-line basis _over_ its expected useful lives, as follows:
Theatre equipment 4 years where acquired before 1 April 2017 10 years where acquired after 1 April 2017 Fixtures and fittings 4 years Office equipment 4 years
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments.
## **Stocks**
> Stocks are valued at the lower of cost and net realisable value.
## **Debtors**
> Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash at Bank and In Hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **Creditors and Provisions**
Creditors and provisions are recognized where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Page 23
## **Mill Arts Centre Trust**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **Pensions Benefits**
> The company operates a defined contribution pension scheme for some of its employees and t h e pension cost charge in the Statement of Financial Activities represents amounts payable by the charity
> to the fund in respect of the year.
## **Critical Accounting Estimates and Areas of Judgement**
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
> The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates or assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Page 24
**Mill Arts Centre Trust**
## **Notes to the Financial Statements for the year ended 31 March 2021**
## **2 Income from live programme - shows & films**
|**2 **|**Income from live programme - shows & films**|||||
|---|---|---|---|---|---|
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|||**Funds**|**Funds**|**2021**|**2020**|
|||£|£|£|£|
||Music, Theatre, Comedy, Dance and Films|2,052|0|2,052|141,798|
|||2,052|0|2,052|141,798|
|**3 **|**Income from live programme - classes**|||||
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|||**Funds**|**Funds**|**2021**|**2020**|
|||£|£|£|£|
||Charges for classes|14,966|0|14,966|70,496|
||Funding from Skills Funding Agency|2,619|0|2,619|20,667|
|||17,585|0|17,585|91,163|
|**4 **|**Other income**|||||
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|||**Funds**|**Funds**|**2021**|**2020**|
|||£|£|£|£|
||Charges for equipment|30|0|30|2,721|
||Performing Rights Fees recovered from artists|0|0|0|2,844|
||Advertising fees received|0|0|0|0|
||Postage charges recovered|139|0|139|1,446|
||Merchandise sales|0|0|0|4|
||Commission on artists' merchandise|0|0|0|299|
||Other income|3,150|0|3,150|0|
|||3,319|0|3,319|7,314|
|**5 **|**Grants**|||||
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|||**Funds**|**Funds**|**2021**|**2020**|
|||£|£|£|£|
||_Local Authority_|||||
||Cherwell District Council - base grant|141,000|0|141,000|148,000|
||Cherwell District Council - COVID support grants|0|0|0|0|
||Banbury Town Council - base grant|0|0|0|0|
||_Charities_|||||
||D'Oyly Carte - grant to core|0|0|0|0|
||Farnham Maltings Ltd - intern support grant|0|0|0|0|
||Garfield Weston - grant to core|0|0|0|25,000|
||Doris Field Trust -grant to core|0|0|0|0|
||ICO Film Club|0|0|0|500|
||Oxfordshire Community Foundation - grant to core|0|0|0|0|
||Pye Foundation - grant to core|0|0|0|2,500|
||_Other_|||||
||Cala Homes - grant to core|0|0|0|0|
||DCMS Culture Recovery Fund|118,560|0|118,560|0|
||Arts Council Emergency Fund|0|30,188|30,188|0|
||Central Government COVID Retail, Leisure & Hospitality Gra|25,000|0|25,000|0|
||Central Government COVID Business Support Grants|14,857|0|14,857|0|
||HMRC Furlough scheme income|87,527|0|87,527|0|
||HMRC - Employment allowance|4,000|0|4,000|3,000|
||Surf the Wave|0|0|0|167|
|||390,944|30,188|421,132|179,167|
## **6 Donations & memberships**
|Corporate donations
Other donations and sponsorship
Legacies
Membership fees|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2021**
**Total**
**2020**
£
£
£
£
0
0
0
2,800
2,009
0
2,009
2,715
0
0
0
5,210
2,294
0
2,294
2,271|
|---|---|
||4,303
0
4,303
12,996|
Page 25
**Mill Arts Centre Trust**
## **Notes to the Financial Statements for the year ended 31 March 2021**
## **7 Project grants**
|**7 Project grants**||
|---|---|
|Arts Council England - Banbury to Bicester
Arts Council England - Dance
Bicester Town Council - Banbury/Bicester
Cherwell District Council - Arts for Older People
Cherwell District Council - Spark Funding
National Lottery Awards For All - Moving Forward
Rothschild Foundation - Moving Forward
Pavilion Dance South-West - Moving Forward
National Lottery 25th Anniversary - Moving Forward
Doris Field Trust - Moving Forward
**8 Income from bar & café**
Income from bar
Income from café
**9 Income from theatre & room hires**
Theatre & room hire for shows
Theatre hire (other)
Room hire (other)
**10 Expenditure on live programme - shows & films**
Music, Theatre, Comedy, Dance and Films
**11 Expenditure on live programme - classes**
Tutorial payroll
Tutorial fees
Tutorial materials
**12 Box office costs**
Spektrix charges
Credit card charges
Box office payroll
**13 Other costs**
Cost of merchandise sales|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2021**
**Total**
**2020**
£
£
£
£
0
0
0
4,803
0
0
0
1,500
0
0
0
619
0
0
0
5,500
0
0
0
1,940
0
0
0
10,000
0
0
0
5,000
0
0
0
4,250
0
0
0
1,000
0
0
0
1,000|
||0
0
0
35,612|
||**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2021**
**Total**
**2020**
£
£
£
£
3,474
0
3,474
84,650
479
0
479
7,203|
||3,953
0
3,953
91,853|
||**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2021**
**Total**
**2020**
£
£
£
£
0
0
0
12,935
1,080
0
1,080
8,223
10,799
0
10,799
47,766|
||11,879
0
11,879
68,924|
||**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2021**
**Total**
**2020**
£
£
£
£
6,737
0
6,737
99,024|
||6,737
0
6,737
99,024|
||**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2021**
**Total**
**2020**
£
£
£
£
0
0
0
280
10,525
0
10,525
42,946
920
0
920
2,479|
||11,445
0
11,445
45,705|
||**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2021**
**Total**
**2020**
£
£
£
£
1,466
0
1,466
11,690
1,514
0
1,514
5,682
8,081
8,913
16,994
16,724|
||11,061
8,913
19,974
34,096|
||**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2021**
**Total**
**2020**
£
£
£
£
0
0
0
0|
||0
0
0
0|
Page 26
## **Mill Arts Centre Trust**
## **Notes to the Financial Statements for the year ended 31 March 2021**
## **14 Project costs**
|_Arts Council England - Banbury to Bicester project_
Artist costs
Other costs
_Arts Council England - Dance_
Artist costs
Other costs
_Cherwell District Council - Arts for Older People_
Artist costs
Other costs
_Cherwell District Council - Spark Funding_
Artist costs
Other costs
_Doris Field Trust - Moving Forward_
Artist costs
Other costs
_National Lottery Awards for All - Moving Forward_
Artist costs
Other costs
_National Lottery 25th Anniversary - Moving Forward_
Artist costs
Other costs
_Pavilion Dance South-West - Moving Forward_
Artist costs
Other costs
**15 Establishment costs**
Energy, cleaning, maintenance, repairs & security
Business Investment District Rate
Insurance
Technical support
**16 Marketing costs**
Brochures
Web site maintenance
Digital marketing & flyers
Advertising
Other marketing
**17 Office costs**
Postage & stationery
Photocopier
Staff training
IT software & support
CRB checks & safeguarding
Staff travel & subsistence
Equipment leasing
Staff recruitment
Other office costs|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2021**
**Total**
**2020**
£
£
£
£
0
0
0
10,561
0
0
0
10,096
0
0
0
11,035
0
0
0
5,964
0
0
0
0
0
0
0
6,928
0
0
0
1,542
0
0
0
398
0
0
0
1,000
0
0
0
0
0
0
0
6,000
0
0
0
4,000
0
0
0
0
0
0
0
1,000
0
0
0
163
0
0
0
0|
|---|---|
||0
0
0
58,687|
||**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2021**
**Total**
**2020**
£
£
£
£
15,821
3,089
18,910
11,358
928
0
928
501
6,074
0
6,074
5,989
46,148
4,105
50,253
32,030|
||68,971
7,194
76,165
49,878|
||**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2021**
**Total**
**2020**
£
£
£
£
12,913
0
12,913
18,712
926
0
926
3,825
468
0
468
2,722
4,562
0
4,562
14,243
40
0
40
238|
||18,909
0
18,909
39,740|
||**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2021**
**Total**
**2020**
£
£
£
£
1,379
0
1,379
3,854
2,005
0
2,005
2,855
245
0
245
1,468
17,042
3,337
20,379
9,243
35
0
35
0
387
0
387
2,779
2,608
0
2,608
202
0
0
0
1,584
2,057
0
2,057
3,090|
||25,758
3,337
29,095
25,075|
Page 27
**Mill Arts Centre Trust**
## **Notes to the Financial Statements for the year ended 31 March 2021**
## **18 Professional & financial costs**
|**18 **|**Professional & financial costs**|||||
|---|---|---|---|---|---|
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|||**Funds**|**Funds**|**2021**|**2020**|
|||£|£|£|£|
||Independent examination of accounts and advice|2,000|0|2,000|1,400|
||Legal fees|0|0|0|3,125|
||Bank charges and interest|1,923|0|1,923|3,566|
||Other credit charges|208|0|208|98|
||Bad debts written off|0|0|0|0|
||Doubtful debts provision|0|0|0|550|
||Cash discrepancies|-297|0|-297|53|
||Irrecoverable VAT|0|0|0|3,374|
||Performing Rights Society fees|0|0|0|4,245|
||Strategic consultancies|0|0|0|825|
||Other licences|515|0|515|220|
||Other costs|4|0|4|0|
|||4,353|0|4,353|17,456|
|**19 **|**Expenditure on bar & café**|||||
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|||**Funds**|**Funds**|**2021**|**2020**|
|||£|£|£|£|
||Bar cost of sales|2,371|0|2,371|34,520|
||Café cost of sales|928|0|928|4,602|
||Bar & café payroll|6,998|0|6,998|26,475|
|||10,297|0|10,297|65,597|
|**20 **|**Depreciation**|||||
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|||**Funds**|**Funds**|**2021**|**2020**|
|||£|£|£|£|
||Theatre equipment|10,774|0|10,774|10,774|
||Office equipment|244|4,123|4,367|4,367|
||Fixtures & fittings|574|0|574|5,959|
||Profit on disposal of equipment|0|0|0|0|
|||11,592|4,123|15,715|21,100|
|**21 **|**Staff**|||||
|||||**Total**|**Total**|
|||||**2021**|**2020**|
||**(a) Staff costs**|||£|£|
||Wages and salaries|||230,663|256,929|
||Social security costs|||17,284|17,756|
||Pension costs|||6,824|6,659|
|||||254,771|281,344|
||**(b) Staff numbers**|||||
||The average number of persons (including senior management) employed by the Trust during|||the year were|as follows:|
|||||**2020**|**2019**|
|||||**numbers**|**numbers**|
||_Charitable activities_|||||
||Management|||4|3|
||Administration and support|||4|5|
||Casual staff|||20|20|
|||||28|28|
## **(c) Higher paid staff and senior management team remuneration**
No staff received remuneration in excess of £60,000 in the year and there were no staff earning in excess of £60,000 pa during the year. The total remuneration of the senior management team during the period was £63,859 (2020: £88,402).
## **22 Related Party Transactions - Trustees' Remuneration & Expenses**
No Trustees received any remuneration, reimbursed expenses or other benefits during the year.
## **23 Trustees' and Officers' Insurance**
In accordance with normal commercial practice, the trust has purchased insurance to protect Trustees and Officers from claims arising from negligent acts, errors or omissions occurring while on Trust business. The insurance cover provides cover up to £1 million on any one trustee indemnity claim and the cost for the year was £604. The cost is included in the total insurance cost.
Page 28
## **Mill Arts Centre Trust**
## **Notes to the Financial Statements for the year ended 31 March 2021**
## **24 Tangible Fixed Assets**
|**24 Tangible Fixed Assets**||
|---|---|
|_Cost_
Brought forward
Additions
Disposals
_Depreciation_
Brought forward
Provision for year
Disposals
_Net Book Value_
At 31 March 2021
At 31 March 2020
**25 Stocks**
Bar stocks
Café stocks
**26 Trade Debtors**
Trade debtors
Provision for doubtful debts
**27 Prepaid costs and accrued income**
Prepaid costs
Accrued income
Invoiced ticket sales
Brewery loan over-repayment
**28 VAT, PAYE & NIC owing**
VAT
PAYE & NIC
Pension contributions
**29 Sums held as agents for third parties**
Third party events
Exhibition sales
Spektrix gift vouchers
Spektrix credit balances|**Theatre**
**equipment**
**Office**
**equipment**
**Furniture &**
**fixtures**
**Total**
**2021**
**Total**
**2020**
£
£
£
£
112,255
17,468
40,462
170,185
170,022
0
0
0
0
163
0
0
-1
-1
0|
||112,255
17,468
40,461
170,184
170,185|
||51,766
9,034
39,211
100,011
78,911
10,774
4,367
574
15,715
21,100
0
0
0
0
0|
||62,540
13,401
39,785
115,726
100,011|
||49,715
4,067
676
54,458
70,174|
||60,489
8,434
1,251
70,174
**Total**
**2021**
**Total**
**2020**
£
£
1,777
4,044
56
199
1,833
4,243
**Total**
**2021**
**Total**
**2020**
£
£
8,927
19,944
-1,077
-1,077
7,850
18,867
**Total**
**2021**
**Total**
**2020**
£
£
0
16,637
16,289
21,044
1,011
1,062
0
0
17,300
38,743
**Total**
**2021**
**Total**
**2020**
£
£
0
1,652
3,531
3,077
1,456
2,822
4,987
7,551
**Total**
**2021**
**Total**
**2020**
£
£
8,426
10,133
739
739
1,334
1,059
3,995
2,058
14,494
13,989|
|||
Page 29
## **Mill Arts Centre Trust**
## **Notes to the Financial Statements for the year ended 31 March 2021**
## **30 Accrued costs and prepaid income**
|Accrued costs
Prepaid ticket sales and other income
Other
**31 Funds**
**Current Year**
_Restricted Capital Funds_
Cherwell District Council - IT & WiFi capital grant
Arts Council England - Age Limitless project
_Sub-total_
_Restricted Income Funds_
Local Authority:
Bicester Town Council - Banbury/Bicester
Charity:
Arts Council Emergency Fund
Rothschild Foundation - Moving Forward
Pavilion Dance South-West - Moving Forward
Other Donors / Funders:
Other Donors / Funders
Sub-total
_Total for restricted funds_
_Unrestricted Fund_
Mill Arts Centre Trust Fund
_Total Funds_
**Previous Year**
_Restricted Capital Funds_
Cherwell District Council - IT & WiFi capital grant
Arts Council England - Age Limitless project
_Sub-total_
_Restricted Income Funds_
Local Authority:
Cherwell District Council - Arts for Older People
Bicester Town Council - Banbury/Bicester
Cherwell District Council - Spark Funding
Charity:
Arts Council England & others - Banbury to Bicester
Arts Council England & others - Dance 2019
Doris Field Trust - Moving Forward
National Lottery Awards For All - Moving Forward
Rothschild Foundation - Moving Forward
Pavilion Dance South-West - Moving Forward
National Lottery 25th Anniversary - Moving Forward
Other Donors / Funders:
Other Donors / Funders
Sub-total
_Total for restricted funds_
_Unrestricted Fund_
Mill Arts Centre Trust Fund
_Total Funds_|**Total**
**2021**
**Total**
**2020**
£
£
1,700
5,561
69,844
43,312
0
0
71,544
48,873
**Balance at 1**
**April 2020**
**Incoming**
**Resources**
**Resources**
**Expended**
**Transfers**
**Between**
**Funds**
**Balance at**
**31 March**
**2021**
£
£
£
£
£
7,877
0
-3,939
0
3,938
184
0
-184
0
0|
|---|---|
||8,061
0
-4,123
0
3,938|
||619
0
-619
0
0
0
30,188
-30,188
0
0
5,000
0
0
-5,000
0
4,087
0
0
-4,087
0
0
0
0
0
0|
||9,706
30,188
-30,807
-9,087
0|
||17,767
30,188
-34,930
-9,087
3,938|
||-62,876
434,830
-388,539
9,087
-7,498|
||-45,109
465,018
-423,469
0
-3,560|
||**Balance at 1**
**April 2019**
**Incoming**
**Resources**
**Resources**
**Expended**
**Transfers**
**Between**
**Funds**
**Balance at**
**31 March**
**2020**
£
£
£
£
£
11,816
0
-3,939
0
7,877
367
0
-183
0
184|
||12,183
0
-4,122
0
8,061|
||1,428
5,500
-6,928
0
0
0
619
0
619
0
1,940
-1,940
0
15,854
4,803
-20,657
0
0
15,499
1,500
-16,999
0
0
0
1,000
-1,000
0
0
0
10,000
-10,000
0
0
0
5,000
0
0
5,000
0
4,250
-163
0
4,087
0
1,000
-1,000
0
0
0
5,877
-5,877
0
0|
||32,781
41,489
-64,564
0
9,706|
||44,964
41,489
-68,686
0
17,767|
||-61,286
623,947
-625,537
0
-62,876|
||-16,322
665,436
-694,223
0
-45,109|
Page 30
**Mill Arts Centre Trust**
## **Notes to the Financial Statements for the year ended 31 March 2021**
## **32 Analysis of net assets between funds**
|**At 31 March 2021**
Tangible Fixed Assets
Current Assets
Current Liabilities
_Total Net Assets_
**At 31 March 2020**
Tangible Fixed Assets
Current Assets
Current Liabilities
_Total Net Assets_|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total Funds**
£
£
£
50,520
3,938
54,458
50,526
0
50,526
-108,544
0
-108,544|
|---|---|
||-7,498
3,938
-3,560|
||62,113
8,061
70,174
52,863
9,706
62,569
-177,852
0
-177,852|
||-62,876
17,767
-45,109|
## **33 Guarantees, Letters of Comfort and Indemnities**
The Trust has not provided any Guarantees, Letters of Comfort or Indemnities to any party or organisation during the year.
## **34 Members' Liability**
In the event of the charity being wound up, the Trustees have no liability to contribute to the assets of the charity and no personal liability for settling its debts and liabilities.
## **35 Pensions and similar obligations**
The charity has made arrangements for the provision of workplace pensions under the Auto Enrolment legislation and contributes to a defined benefit pension scheme for qualifying employees under these arrangements. The assets of the scheme are held separately from those of the charity in an independently administered fund. The total pension contribution costs for the year are disclosed in note 21.
## **36 Related Party Transactions**
Owing to the nature of the Trust's operations and the composition of the Board of Trustees, transactions may take place with organisations in which the Trustees have an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the Trust's constitution, the requirements of the Charities Act 2011 and the Trust's normal procurement policies. None of the Trustees benefit personally from any such transactions.
The Mill is owned by Oxfordshire County Council which has granted a lease to the Trust at a peppercorn rental. Negotiations continue between the County Council, Cherwell District Council and the Trust to establish a more sustainable future for the building. The County continues to bear the cost of cleaning, utilities and the structure of the building and the hidden costs of this subsidy are estimated to be in the region £100,000 pa. An Officer of the District Council sits as an observer on the Board of Trustees of the Trust.
## **37 Reconciliation of Net Movement in Funds to Net Cash Flows from Operating Activities**
|Netexpenditure/ income for the period (as per Statement of Financial Activities)
Adjustment for:
Depreciation
Capital grants
Decrease in stock
Decrease in debtors
Increase /decreasein creditors
Net cash provided by /used inoperating activities
**Analysis of Cash and Cash Equivalents**
Cash at bank and in hand
Bank overdraft|**Total**
**2021**
**Total**
**2020**
£
£
41,549
-28,787
15,715
21,100
0
0
2,410
-35
19,374
17,555
-12,816
-43,908|
|---|---|
||£66,232
-£34,075|
||**Total**
**2021**
**Total**
**2020**
£
£
12,033
2,293
0
-56,492|
||£12,033
-£54,199|
## **38 Analysis of Cash and Cash Equivalents**
Page 31