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2023-03-31-accounts

Mill Arts Centre Trust

(A Charitable Incorporated Organisation) Registered Charity No: 1165998

Trustees' Report and Financial Statements

For the Year Ended 31 March 2023

Mill Arts Centre Trust

Contents

Reference and Administrative Details 1
Trustees' Report 2 - 10
Statement of Trustees' Responsibilities 11
Independent Examiner's Report 12
Statement of Financial Activities 13
Comparative Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements, incorporating:
Accounting Policies 17 -19
Other Notes to the Financial Statements 20 - 26

Mill Arts Centre Trust

Reference and Administrative Details

Trustees
Barbara Baseley-Smith (Chair from 19/05/22)
Gwen Van Spijk (Chair to 19/05/22 - resigned)
Karen Warren (Vice-Chair)
Sarah Louise Norton
Andrew McHugh
Catherine Snelling
Cllr Phil Chapman
Senior Management Team
Chief Executive & Company Andrew Lister
Secretary
Creative Director Emma Hiorns (from July 2022)
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 Examiners
Whitley Stimpson Ltd
Penrose House
67 Hightown Road
Banbury
OX16 9BE

Page 1

Mill Arts Centre Trust

TRUSTEES REPORT

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 (FRS 102) (as amended for accounting periods commencing from 1 January 2016)

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

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 re-elected.

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.

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 is 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.

Page 2

Mill Arts Centre Trust

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 sub-committee.

This sub-committee meets on a monthly basis 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 Chief Executive.

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:

Arrangements for Setting Pay and Remuneration of Key Management Personnel

The Trustees consider the Board of Trustees and the Chief Executive 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.

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 £106,000. An officer of the council sits as an observer on the Board of Trustees to oversee application of these funds.

Page 3

Mill Arts Centre Trust

OBJECTIVES AND ACTIVITIES

Objects and Aims

The principal objects of the charity, as set out in its Constitution, are to:

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 / identify suitable alternate premises in order to ensure our facilities match our ambition and allow us to establish our financial independence

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

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.

Page 4

Mill Arts Centre Trust

Identified priorities for the year ended 31st March 2023 were as follows:

Programme, Audiences & Communities

Preparing for The Future

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 5

Mill Arts Centre Trust

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 year ended March 2023 were as follows:

NOTABLE CHALLENGES

FINANCIAL REVIEW

2022-23 saw the Trust return an overall net surplus of £4,735 to end the year with a combined balance sheet surplus of £23,173.

Page 6

Mill Arts Centre Trust

Live Programme

It is largely unsurprising that Live event sales compare favourably (+28%) to the year ended March 2022, given that COVID restrictions we still in place for the first quarter of the prior year. However comparing against the last full year of operation pre-COVID (year to March 2020) shows a similarly strong level of growth (+31%). It is evident that the need for high quality cultural experiences has only been highlighted through lockdown restrictions, and it is highly reassuring to see demand not only return to but significantly surpass pre-COVID levels.

A total of 181 live events were presented during the year (141 prior year), with 19,990 admissions (12,535). Therefore this growth is driven not only by an increase in the quantity of performances, but also by an increase in average attendance by 10 percentage points.

A highlight of the programme was the inclusion of 22 performances of ‘The Gruffalo’ by Tall Stories as an early Christmas run in December, building on achievement from ‘The Very Hungry Caterpillar’ in December 2021. 3475 tickets were sold representing a final capacity of 79%, including 965 schools attenders.

Once again the strategy of presenting an extended run of a well known title for young families in early December was complimented by adult-oriented programming either side achieving 78.4% overall capacity for the month.

Education Classes

Prior to the year in review, the Creative Learning programme had been exhibiting a much more gradual return to pre-pandemic levels.

However sales of £91,681 equate to growth of 30% on the prior year, and see a re-establishment of prepandemic performance. Whilst this return to pre-pandemic levels has been slower than for live events, the rate of growth shows every sign of continuing giving significant optimism for further outperformance in the future period.

The re-growth of creative learning has seen a continued evolution of the programme reflecting changing needs, whilst predominantly focusing on on-site learning delivered from our Banbury base. There remains significant opportunity from developing our programme of Community-led learning through delivery from off-site locations across the district.

Box Office Income

Box Office income is earned through booking fees levied on the sale of tickets for both our Live and Creative Learning programmes, which goes to support the associated staffing costs, licenses and costs associated with the CRM system, credit card and bank processing charges. This revenue is therefore directly driven by the volume of tickets sold during the period.

Grant Income (including Project Grants)

Cherwell District council provided a core revenue support grant of £106,000, augmented by £30,000 in ‘new growth’ funding deferred from prior year due to the COVID19 pandemic.

An unrestricted grant of £10,000 was awarded from the Garfield Weston Foundation.

Arts Council England awarded a National Lottery Project Grant of £30,000 to support The Mill’s ‘Our Town Dances’ project – with a focus on testing and re-establishing our strategic ambitions for the Dance programme.

Hospitality

Predominantly composed of ‘wet’ sales, total Hospitality revenue of £97,277 represents growth of 38% on the prior year, and 6% on pre-pandemic levels.

Page 7

Mill Arts Centre Trust

This area of the operation has continued to see staffing/recruitment challenges at times having a limiting effect on our capacity. Analysed ‘per head’ shows a decline in hospitality revenues versus prepandemic, however further detailed analysis highlights the changing profile of audiences, not least the growth in the proportion of children/families for events such as The Gruffalo which do not offer the same opportunities for significant ancillary sales.

Theatre & Room Hire

Overall, income from hires equates to 56% growth on the prior year and 20.8% versus pre-pandemic. This is largely driven by growth in Theatre hires, which offsets a slight reduction in revenue from subtenants and ad-hoc room hirers.

Having lost a number of long-standing tenants during the pandemic, two new long-term office rentals generated since reopening remained in situ throughout the period underpinning revenue in this area.

Overheads

Payroll costs show a slight decrease versus the prior year in spite of ongoing wage inflation. These savings arise as a result of the senior staffing restructure enacted in May 2022, along with a number of situations being vacant at points through the review period.

As a result, Trustees were able to make an interim pay uplift in January 2023 to support staff in light of significant external cost of living pressures over the winter period, whilst remaining within wage budget overall.

Marketing costs were lower than in previous years due to phasing of season launches resulting in the production of 2 rather than 3 forthcoming attraction booklets during the period.

Funding from the Culture Recovery Fund received in previous years had been spent on improving efficiency through investment in equipment and technology which delivered the expected savings in establishment and office running costs through the review period.

Reserves Policy

Restricted reserves at year-end total £nil and unrestricted reserves of £23,173 give a combined position of £23,173.

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.

The Trustees have determined that the charity should aspire to hold free cash reserves sufficient to cover approximately three month’s fixed operating costs, which would equate to approximately £75,000. The reason for this is to provide sufficient working capital to cover cashflow delays between spending and receipts of income and to provide a cushion to deal 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 are pleased to note positive progress over the period, and continue to look at strategies for raising additional income whilst also reviewing key areas of operational expenditure to ensure the targeted reserves can be built in future years.

Principal Risks and Uncertainties

The Trustees have a risk management strategy which comprises:

Page 8

Mill Arts Centre Trust

The results of this process are documented 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:

2. Inability to maintain revenue levels due to risk of reductions in Local Authority funding in future periods leading to potential:

3. Poor condition of building leading to potential:

4. Ongoing flooding risk leading to potential:

Going Concern

In common with Cultural Organisations across the UK, the outbreak of COVID19 had a direct and significant impact on the Trust’s ability to deliver its programme of activities during the pandemic due to ongoing restrictions leading to a depletion of reserves.

However, the government-backed financial support received during the pandemic together with the response of audiences as business has resumed, strong earned income levels and positive feedback give significant confidence that audience numbers and therefore earned income can continue to out-perform pre-pandemic levels. Advance sales have remained strong in spite of emerging external factors including escalating cost of living pressures.

The Trustees’ Finance Sub Group continue to meet monthly in order to maintain a continual 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.

Furthermore following successful application to Arts Council England to become a National Portfolio Organisation, The MACT joined the Portfolio in April 2023 securing additional investment for the period 2023-2026 of £183,000 per year.

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.

Page 9

Mill Arts Centre Trust

PLANS FOR FUTURE PERIODS

The charity's plans for future periods are:

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 17/01/2024 and signed on its behalf by:

Barbara Baseley-Smith Chair of Trustees Public Benefit

Page 10

Mill Arts Centre Trust

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:

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 17/01/2024 and signed on its behalf by:

Barbara Baseley-Smith Chair of Trustees

Page 11

Mill Arts Centre Trust

MILL ARTS CENTRE TRUST INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF MILL ART CENTRE TRUST

I report to the trustees on my examination of the financial statements of Mill Arts Centre Trust (the charity) for the year ended 31 March 2023.

Responsibilities and basis of report

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

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

Independent examiner’s statement

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 Trust 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.

Signed: H Hymers ACA

Whitley Stimpson Limited Penrose House 67 Hightown Road Banbury Oxfordshire OX16 9BE

Date: 17/01/2024

Page 12

Mill Arts Centre Trust

Statement of Financial Activities for the year ended 31 March 2023

(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
Project costs
13
Payroll costs (not included elsewhere)
Overhead costs
Establishment costs
14
Marketing costs
15
Office costs
16
Professional and financial costs
17
Expenditure on generating funds
Expenditure on bar and café
18
Depreciation of fixed assets
Depreciation
19
Total expenditure:
Net income/(expenditure) before transfers
Transfers between funds
30
Net income/(expenditure) for the year
Reconciliation of funds
Funds at 31 March 2022
30
Funds at 31 March 2023
30
Net movement in funds for the year		 Unrestricted
funds
Restricted
funds
Total Funds
2023
Total Funds
2022
£
£
£
£
190,545
0
190,545
145,360
91,681
0
91,681
70,450
54,424
0
54,424
38,934
0
0
0
0
11,443
0
11,443
10,348
141,000
0
141,000
226,510
6,290
0
6,290
5,744
10,000
40,227
50,227
63,840
0
97,277
0
97,277
70,579
83,263
0
83,263
53,387
685,924
40,227
726,151
685,152
136,905
10,762
147,666
110,078
50,208
52
50,260
37,553
45,839
0
45,839
34,021
0
37,538
37,538
30,809
231,384
15,166
246,550
259,205
56,654
420
57,074
44,406
28,980
673
29,653
36,979
16,756
0
16,756
17,969
10,996
0
10,996
40,516
69,066
1,692
70,758
38,651
8,324
0
8,324
12,967
655,113
66,303
721,415
663,154
30,811
(26,076)
4,735
21,998
(12,153)
12,153
0
0
18,658
(13,923)
4,735
21,998
4,515
13,923
18,438
(3,560)
23,173
0
23,173
18,438
18,658
(13,923)
4,735
21,998

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 17 to 26 form part of these financial statements.

Page 13

Mill Arts Centre Trust

Statement of Financial Activities for the year ended 31 March 2022 (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
Project costs
13
Payroll costs (not included elsewhere)
Overhead costs
Establishment costs
14
Marketing costs
15
Office costs
16
Professional and financial costs
17
Expenditure on generating funds
Expenditure on bar and café
18
Depreciation of fixed assets
Depreciation
19
Total expenditure:
Net income/(expenditure) before transfers
Transfers between funds
30
Net income/(expenditure) for the year
Reconciliation of funds
Funds at 31 March 2021
30
Funds at 31 March 2022
30
Net movement in funds for the year		 Unrestricted
funds
Restricted
funds
Total Funds
2022
Total Funds
2021
£
£
£
£
145,360
0
145,360
2,052
70,450
0
70,450
17,585
38,934
0
38,934
795
0
0
0
0
10,348
0
10,348
3,319
226,510
0
226,510
421,132
5,744
0
5,744
4,303
0
63,840
63,840
0
70,579
0
70,579
3,953
53,387
0
53,387
11,879
621,312
63,840
685,152
465,018
110,078
0
110,078
6,737
37,193
360
37,553
11,445
34,021
0
34,021
19,974
0
30,809
30,809
0
246,677
12,528
259,205
230,779
39,787
4,619
44,406
76,165
36,084
895
36,979
18,909
17,263
706
17,969
29,095
40,516
0
40,516
4,353
38,651
0
38,651
10,297
9,029
3,938
12,967
15,715
609,299
53,855
663,154
423,469
12,013
9,985
21,998
41,549
0
0
0
0
12,013
9,985
21,998
41,549
(7,498)
3,938
(3,560)
(45,109)
4,515
13,923
18,438
(3,560)
12,013
9,985
21,998
41,549

Page 14

Mill Arts Centre Trust

Balance Sheet as at 31 March 2023

Notes
Tangible Fixed Assets
Theatre equipment
23
Office equipment
23
Fixtures and fittings
23
Current assets
Stocks
24
Trade and sundry debtors
25
Prepaid costs and accrued income
26
Credit card collections due
Bank and cash
37
Current liabilities
Bank overdraft
37
Trade creditors
VAT, PAYE & NIC owing
27
Sums held as agents for third parties
28
Accrued costs and prepaid income
29
Net Assets
Funds of the Trust:
Restricted Funds
Restricted funds
30
Unrestricted Funds
General funds
30
Total Funds		 2023
2022
£
£
£33,167
£41,441
£0
£0
£0
£50
£33,167
£41,491
£7,248
£4,223
£25,919
£13,404
£42,334
£11,783
£7,065
£3,896
£96,108
£107,733
£178,674
£141,039
£0
£0
£75,295
£58,416
£15,121
£8,241
£17,944
£16,503
£80,308
£80,932
£188,668
£164,092
£23,173
£18,438
£0
£13,923
£23,173
£4,515
£23,173
£18,438

The financial statements were approved by the Trustees and signed on 17/01/2024 on their behalf by:

Barbara Baseley-Smith Chair of Trustees

The notes on pages 17 to 26 form part of these financial statements.

Page 15

Mill Arts Centre Trust

Statement of Cash Flows for the year ended 31 March 2023

Notes
Cash flows from operation activities
Net cash flow provided by operating 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
36
Cash and cash equivalents at the end of the period
36		 2023
2022
£
(11,624)
95,700
0
0
0
0
0
(11,624)
£95,700
107,733
12,033
£96,109
£107,733

The notes on pages 17 to 27 form part of these financial statements.

Page 16

Mill Arts Centre Trust

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.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

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, an y 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.

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Mill Arts Centre Trust

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.

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 t o 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:

• Costs of raising funds comprise the costs, including payroll, of the bar and cafe.

• 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.

• 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.

Continued . . .

Page 18

Mill Arts Centre Trust

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:

4 years where acquired before 1 April 2017 Theatre equipment 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.

Pensions Benefits

The company operates a defined contribution pension scheme for some of its employees and the 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 19

Mill Arts Centre Trust

Notes to the Financial Statements for the year ended 31 March 2023

**2 ** Income from live programme - shows & films
Unrestricted
Restricted
Total
Total
Funds
Funds		 2023
2022
£
£		 £
£
Music, Theatre, Comedy, Dance and Films 190,545 0
190,545
145,360
190,545 0
190,545
145,360
**3 ** Income from live programme - classes
Charges for classes
Funding from Skills Funding Agency		 Unrestricted
Funds
Restricted
Funds
£
£
72,645
19,036
Total
2023
Total
2022
£
£
0
72,645
53,070
0
19,036
17,380
91,681 0
91,681
70,450
**4 ** Other income
Charges for equipment
Performing Rights Fees recovered from artists
Share of co-production revenue
Income from Exhibitions
Advertising fees received
Postage charges recovered
Commission on artists' merchandise
Other income		 Unrestricted
Funds
Restricted
Funds
£
£
5,187
3,871
0
762
305
384
934
0
Total
2023
Total
2022
£
£
0
5,187
3,177
0
3,871
3,261
0
0
1,866
0
762
140
0
305
475
0
384
621
0
934
351
0
0
457
11,443 0
11,443
10,348
**5 ** Grants
Local Authority
Cherwell District Council - base grant
Charities
Pye Foundation - grant to core
Other
DCMS Culture Recovery Fund
Central Government COVID Retail, Leisure & Hospitality Gr
Central Government COVID Business Support Grants
HMRC Furlough scheme income
HMRC - Employment allowance		 Unrestricted
Funds
Restricted
Funds
£
£
136,000
0
0
0
0
0
5,000
Total
2023
Total
2022
£
£
0
136,000
106,000
0
0
1,000
0
0
79,670
0
0
12,000
0
0
8,000
0
0
15,840
0
5,000
4,000
141,000 0
141,000
226,510
**6 ** Donations & memberships
Corporate donations
Other donations and sponsorship
Membership fees		 Unrestricted
Funds
Restricted
Funds
£
£
0
3,241
3,050
Total
2023
Total
2022
£
£
0
0
55
0
3,241
2,531
0
3,050
3,158
6,290 0
6,290
5,744

Page 20

Mill Arts Centre Trust

Notes to the Financial Statements for the year ended 31 March 2023

7 Project grants

Cherwell District Council - COMF Funding
Active Oxfordshire - Sport England Tackling Inequalities
Fund
Arts Council - Reigniting Dance
Doris Field Trust - Reigniting Dance
Sanctuary H.A. - Reigniting Dance
Dancin' Oxford - Reigniting Dance
Surf The Wave - Reigniting Dance
Age Limitless
Cherwell DC - SPARK Funding
Garfield Weston
Arts Council - OTD
Oxford City Council - Reigniting Dance
Rothschild Foundation - Snow
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)
Room hire (general)
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		 Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
0
0
0
30,357
0
0
0
4,252
0
1,500
1,500
17,586
0
1,000
1,000
1,000
0
0
0
1,000
0
2,000
2,000
2,000
0
0
0
2,645
0
3,727
3,727
0
0
1,000
1,000
0
10,000
0
10,000
0
0
30,000
30,000
0
0
1,000
1,000
0
0
0
0
5,000
10,000
40,227
50,227
63,840
Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
94,007
0
94,007
66,838
3,270
0
3,270
3,741
97,277
0
97,277
70,579
Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
23,509
0
23,509
11,258
8,109
0
8,109
3,601
160
0
160
38,528
51,485
0
51,485
0
83,263
0
83,263
53,387
Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
136,905
10,762
147,666
110,078
136,905
10,762
147,666
110,078
Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
0
0
0
0
46,872
52
46,924
35,702
3,337
0
3,337
1,851
50,208
52
50,260
37,553
Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
12,863
0
12,863
8,445
13,058
0
13,058
8,500
19,918
0
19,918
17,076
45,839
0
45,839
34,021

Page 21

Mill Arts Centre Trust

Notes to the Financial Statements for the year ended 31 March 2023

13 Project costs

Cherwell District Council - COMF Funding
Artist costs
Other costs
Various Funding - Reigniting Dance
Artist costs
Other costs
Active Oxfordshire - Sport England Tackling Inequalities
Fund
Artist costs
Other costs
Rothschild Foundation - Snow
Artist costs
Other costs
ACE OTD
Artist costs
Other costs
Age Limitless
Artist costs
Other costs
Establishment costs
Energy, cleaning, maintenance, repairs & security
Business Investment District Rate
Insurance
Technical support
Marketing costs
Brochures
Web site maintenance
Digital marketing & flyers
Advertising
Programme consultancy
Office costs
Postage & stationery
Photocopier
Staff training
IT software & support
CRB checks & safeguarding
Staff travel & subsistence
Staff recruitment
Other office costs		 Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
0
0
0
8,879
0
0
0
0
0
2,492
2,492
14,057
0
0
0
2,251
0
0
0
0
0
0
0
1,280
0
0
0
0
0
0
0
4,342
0
27,702
27,702
0
0
6,136
6,136
0
0
1,208
1,208
0
0
0
0
0
0
37,538
37,538
30,809
Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
11,155
0
11,155
11,659
428
0
428
745
5,312
0
5,312
5,981
39,760
420
40,180
26,021
56,654
420
57,074
44,406
Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
13,537
0
13,537
20,873
580
0
580
528
3,974
673
4,647
3,974
10,737
0
10,737
11,604
151
0
151
0
28,980
673
29,653
36,979
Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
2,675
0
2,675
3,248
79
0
79
2,406
1,092
0
1,092
370
9,901
0
9,901
9,443
162
0
162
448
2,214
0
2,214
1,240
0
0
0
47
632
0
632
767
16,756
0
16,756
17,969

14 Establishment costs

15 Marketing costs

16 Office costs

Page 22

Mill Arts Centre Trust

Notes to the Financial Statements for the year ended 31 March 2023

17 Professional & financial costs

Independent examination of accounts and advice
Legal fees
Bank charges and interest
Other credit charges
Bad debts written off
Cash discrepancies
Performing Rights Society fees
Strategic consultancies
Other licences
18 Expenditure on bar & café
Bar cost of sales
Café cost of sales
Bar & café payroll
19 Depreciation
Theatre equipment
Office equipment
Fixtures & fittings
20 Staff		 Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
1,800
0
1,800
1,850
2,718
0
2,718
6,058
1,151
0
1,151
149
156
0
156
212
0
0
0
3,605
36
0
36
90
4,709
0
4,709
3,259
0
0
0
24,910
426
0
426
383
10,996
0
10,996
40,516
Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
36,042
0
36,042
23,046
2,402
0
2,402
2,399
30,623
1,692
32,315
13,206
69,066
1,692
70,758
38,651
Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
8,274
0
8,274
8,274
0
0
0
4,067
50
0
50
626
8,324
0
8,324
12,967
(a) Staff costs
Wages and salaries
Social security costs
Pension costs		 Total
2023
Total
2022
£
£
270,193
262,026
20,771
19,975
7,819
7,486
298,783
289,487

(b) Staff numbers

The average number of persons (including senior management) employed by the Trust during the year were as follows:

Charitable activities
Management
Administration and support
Casual staff		 2023
numbers
2022
numbers
5
4
6
4
9
12
20
20

(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 £58,906 (2022: £73,071).

21 Related Party Transactions - Trustees' Remuneration & Expenses

No Trustees received any remuneration, reimbursed expenses or other benefits during the year.

22 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 £1,128. The cost is included in the total insurance cost.

Page 23

Mill Arts Centre Trust

Notes to the Financial Statements for the year ended 31 March 2023

23 Tangible Fixed Assets

Cost
Brought forward
Additions
Disposals
Depreciation
Brought forward
Provision for year
Disposals
Net Book Value
At 31 March 2023
At 31 March 2022
24 Stocks
Bar stocks
Café stocks
25 Trade and Sundry Debtors
Trade debtors
Provision for doubtful debts
26 Prepaid costs and accrued income
Prepaid costs
Accrued income
Invoiced ticket sales
27 VAT, PAYE & NIC owing
VAT
PAYE & NIC
Pension contributions
28 Sums held as agents for third parties
Third party events
Exhibition sales
Spektrix gift vouchers
Spektrix credit balances
Third party merchandise
29 Accrued costs and prepaid income
Accrued costs
Prepaid ticket sales and other income		 Theatre
equipment
Office
equipment
Furniture &
fixtures
Total
2023
Total 2022
£
£
£
£
112,255
17,468
40,461
170,184
170,184
0
0
0
0
0
0
0
0
0
0
112,255
17,468
40,461
170,184
170,184
70,814
17,468
40,411
128,693
115,726
8,274
0
50
8,324
12,967
0
0
0
0
0
79,088
17,468
40,461
137,017
128,693
33,167
0
0
33,167
41,491
41,441
0
50
41,491
2023
2022
£
£
7,068
4,078
181
145
7,248
4,223
2023
2022
£
£
29,500
16,985
(3,581)
(3,581)
25,919
13,404
2023
2022
£
£
25,982
3,767
14,442
5,157
1,909
2,859
42,334
11,783
2023
2022
£
£
8,135
1,161
5,173
5,424
1,814
1,656
15,121
8,241
2023
2022
£
£
9,073
10,771
1,282
855
2,123
1,381
4,124
3,496
1,342
0
17,944
16,503
2023
2022
£
£
12,996
5,186
67,312
75,746
80,308
80,932

Prepaid income mostly relates to customer prepayments of tickets and class bookings through online portal Spektrix amounting to £65,312 (2022: £43,953), whereby customers have paid in advance of a show or class held by the charity at a later date. There is also grant income deferred of £2,000 (2022: £31,793).

Page 24

Mill Arts Centre Trust

Notes to the Financial Statements for the year ended 31 March 2023

30 Funds

Funds
Current Year Balance at 1
April 2022		 Incoming
Resources
Resources
Expended
Transfers
Between
Funds
Balance at 31
March 2023
£ £
£
£
£
Restricted Capital Funds
Cherwell District Council - IT & WiFi capital grant 0 0
0
0		 0
Sub-total 0 0
0
0		 0
Restricted Income Funds
Charity:
Arts Council - OTD
Arts Council - Reigniting Dance
Age Limitless
Other Donors / Funders:
Other Donors / Funders		 6,000
7,923
0
0		 34,000
(50,032)
10,032
2,500
(12,544)
2,121
3,727
(3,727)
0
0
0
0		 0
0
0
0
0
Sub-total 13,923 40,227
(66,303)
12,153		 0
Total for restricted funds 13,923 40,227
(66,303)
12,153		 0
Unrestricted Fund
Mill Arts Centre Trust Fund		 4,515 685,924
(655,113)
(12,153)		 23,173
Total Funds 18,438 726,152
(721,416)
0		 23,173
Previous Year
Restricted Capital Funds
Cherwell District Council - IT & WiFi capital grant		 Balance at 1
April 2021
£
3,938		 Incoming
Resources
Resources
Expended
Transfers
Between
Funds
Balance at 31
March 2022
£
£
£
£
0
(3,938)
0
0
Sub-total 3,938 0
(3,938)
0		 0
Restricted Income Funds
Charity:
Rothschild Foundation - Snow
Cherwell District Council - COMF Funding
Active Oxfordshire - Sport England Tackling Inequalities Fun
Arts Council - Reigniting Dance
Doris Field Trust - Reigniting Dance
Sanctuary H.A. - Reigniting Dance
Dancin' Oxford - Reigniting Dance
Surf The Wave - Reigniting Dance
Arts Council - OTD
Other Donors / Funders:
Other Donors / Funders		 0
0
0
0
0
0
0
0
0
0		 5,000
(5,000)
0
30,357
(24,357)
(6,000)
4,252
(4,252)
0
13,499
(5,576)
0
1,000
(1,000)
0
1,000
(1,000)
0
2,000
(2,000)
0
6,732
(6,732)
0
0
0
6,000
0
0
0		 0
0
0
7,923
0
0
0
0
6,000
0
Sub-total 0 63,840
(49,917)
0		 13,923
Total for restricted funds 3,938 63,840
(53,855)
0		 13,923
Unrestricted Fund
Mill Arts Centre Trust Fund (7,498) 621,312
(609,299)
0		 4,515
Total Funds (3,560) 685,152
(663,154)
0		 18,438

Page 25

Mill Arts Centre Trust

Notes to the Financial Statements for the year ended 31 March 2023

31 Analysis of net assets between funds

At 31 March 2023
Tangible Fixed Assets
Current Assets
Current Liabilities
Total Net Assets
At 31 March 2022
Tangible Fixed Assets
Current Assets
Current Liabilities
Total Net Assets		 Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
33,167
0
33,167
178,674
0
178,674
(188,668)
0
(188,668)
23,173
0
23,173
41,491
0
41,491
127,116
13,923
141,039
(164,092)
0
(164,092)
4,515
13,923
18,438

32 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.

33 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.

34 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.

35 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 to the Board of Trustees’

36 Reconciliation of Net Movement in Funds to Net Cash Flows from Operating Activities

Net income for the period (as per Statement of Financial Activities)
Adjustment for:
Depreciation
Capital grants
Increase in stock
Increase in debtors
Increase in creditors
Net cash provided by operating activities
Analysis of Cash and Cash Equivalents
Cash at bank and in hand
Bank overdraft		 2023
2022
£
£
4,735
21,998
8,324
12,967
0
0
(3,025)
-2,390
(46,235)
7,577
24,576
55,548
(11,624)
£95,700
2023
2022
£
£
96,108
107,733
0
0
£96,108
£107,733

37 Analysis of Cash and Cash Equivalents

Page 26