**Charity Registration No. 1166388** **Company Registration No. 09664738 (England and Wales)** ## **NORTHERN DANCE** ## **(A COMPANY LIMITED BY GUARANTEE)** **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 JULY 2020** **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION** ## **Trustees** D Leonard T Morgan **Charity number** 1166388 **Company number** 09664738 **Registered office** C/O RMT Accountants & Business Advisors Ltd Gosforth Park Avenue Newcastle upon Tyne United Kingdom NE12 8EG ## **Independent examiner** RMT Accountants & Business Advisors Ltd Gosforth Park Avenue Newcastle upon Tyne NE12 8EG **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 3| |Statement of financial activities|5 - 6| |Balance sheet|7| |Notes to the financial statements|8 - 13| **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2020** The trustees present their report and financial statements for the year ended 31 July 2020. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles , the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)” ## **OBJECTIVES AND ACTIVITIES** ## **Charity objective** The charity's object ive is the advancement of the arts (the visual and performance art in all its forms including dance, decorative and visual arts, literature, film, theatre, music, sculpture and photography) and the education of the public in the arts particularly but not exclusively by public performances, workshops, exhibitions and other similar activities. ## **Charity aims** Northern Dance's overall aim is to advance the arts and educate the public with a focus on contemporary dance in the north of England and further afield. We have a distinctly northern perspective, drawing theme, talent and collaborations from the north of England and celebrating the existing and emerging creative talent in our region. Our ambition is to become a leading dance institution that promotes and represents dance and art in the north, to stand alongside the BALTIC Centre for Contemporary Arts and Sage Gateshead as both charities promote excellence in their fields of contemporary art and music. Northern Dance will provide opportunities for the public to see, engage and participate in contemporary dance and enrich their lives; for professional and aspiring dancers to stay in the north east; and for our own organisation and other dance organisations to create high quality, excellent work. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Charitable activities** Our activities will include - An annual programme of activities for the public to experience and participate in contemporary dance including performances, workshops, exhibitions, talks and other events. We're especially keen to attract new audiences to contemporary dance through our collaborations with other art forms and emerging technology. - A training and work placement programme for young and upcoming dancers to provide additional training and support on their road to becoming professional dancers, bridging the gap between graduation and professional dancing. - Regular workshops and dance training plus access to rehearsal and performance space for north east based dancers (professional, semi-professional, talented amateur) for continued professional development, maintaining fitness and developing strong collaborative networks. - Creating and performing our own original new works with our own dancers and choreographer and/or in collaboration with artists, art forms and emerging technologies. We will hold live performances of our own work and aspire to record all our live performances and make them publically available to broaden access to our works. - 1 - ## **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2020** ## **ACHIEVEMENTS AND PERFORMANCE** The Charity has completed its forth year since establishment. The charity, like many organisations, was affected by the global Covid-19 pandemic during the second half of its financial year. In the closing months of the 2019/20 year all activities were curtailed and the two employees placed on furlough leave, the nature of dance and performance rendering it impossible to operate safely during the pandemic. This remains the position as at the date of signing these accounts but is being kept under review by the Trustees A number of dancers and choreographers ha d continued to be engaged on a consultancy basis with development work ongoing for various projects. A core piece is entitled “Ephemera” in which the charity is collaborating with others, including experts in innovative digital media from Northumbria University, as a final production. This includes Northern Dance being at the forefront of the real time use of cutting edge motion tracking and projection technology in dance performance. These techniques have been built on during 201 9 - 20 and the charity has developed its own expertise in this specialist area combining dance and technology. This will be the basis of future projects for the medium term. Paper Dove Company (which has been the sole donor to Northern Dance to-date) has developed a space under a longer-term lease in a warehouse in the Ouseburn area of Newcastle upon Tyne, part of which is sublet to Northern Dance as a purpose-adapted practice and performance area. ## **FINANCIAL REVIEW** ## **Financial position** The charity made a net deficit of £6,171 (2019; £427) and at the year end had total funds carried forward of £10,513 (2019: £16,684). ## **Reserves policy** It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. The charity will seek to build reserves as it becomes fully operational. ## **Risk factors** The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Constitution** The charity is a company limited by guarantee constituted by Memorandum and Articles incorporated 1 July 2015. ## **Trustees** The trustees, who are also the directors for the purpose of company law, and who served during the year were: D Leonard T Morgan - 2 - ## **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2020** ## **How decisions are made** The work of Northern Dance is controlled by its trustees. The trustees will also take professional advice where needed, and use this and other information gathered to make our decisions, which will be in trustee meetings following our constitution and governance best practice. We make decisions about what activity to deliver based on our available resources and those that have the biggest impact and benefit to the public. ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** The trustees, who are also the directors of Northern Dance for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees' r eport was approved by the Board of Trustees. **T Morgan Trustee** Dated: 27 April 2021 - 3 - **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT EXAMINER'S REPORT** ## **TO THE TRUSTEES OF NORTHERN DANCE** I report to the trustees on my examination of the financial statements of Northern Dance (the charity) for the year ended 31 July 2020. ## **Responsibilities and basis of report** As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . 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 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 386 of the 2006 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or - 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 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 financial statements to be reached. ## **Maxine Pott FCA** **for and on behalf of RMT Accountants & Business Advisors Ltd Gosforth Park Avenue Newcastle upon Tyne NE12 8EG** Dated: 28 April 2021 - 4 - ## **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## **FOR THE YEAR ENDED 31 JULY 2020** ## **Current financial year** |**Unrestricted**
**funds**
**2020**
**Notes**
**£**
**Income from:**
Donations and legacies
**2**
50,313
**Expenditure on:**
Charitable activities
**3**
56,484
**Net expenditure for the year/**
**Net movement in funds**
(6,171)
Fund balances at 1 August 2019
16,684
**Fund balances at 31 July 2020**
10,513|**Total**
**2020**
**£**
50,313
56,484
(6,171)
16,684
10,513|**Total**
**2019**
**£**
81,400
81,827
(427)
17,111
16,684| |---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 5 - ## **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## **FOR THE YEAR ENDED 31 JULY 2020** ## **Prior financial year** |**Unrestricted**
**funds**
**2019**
**Notes**
**£**
**Income from:**
Donations and legacies
**2**
81,400
**Expenditure on:**
Charitable activities
**3**
81,827
**Net expenditure for the year/**
**Net movement in funds**
(427)
Fund balances at 1 August 2018
17,111
**Fund balances at 31 July 2019**
16,684|**Total**
**2019**
**£**
81,400
81,827
(427)
17,111
16,684| |---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 6 - ## **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET** ## **AS AT 31 JULY 2020** |**Notes**
**Fixed assets**
Tangible assets
**7**
**Current assets**
Debtors
**8**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**9**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds
**10**|**2020**
**£**
871
7,150
8,021
(3,452)|**£**
5,944
4,569
10,513
10,513
10,513|**2019**
**£**
262
9,057
9,319
(1,550)|**£**
8,915
7,769
16,684
16,684
16,684| |---|---|---|---|---| The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 July 2020. The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The accounts were approved by the Trustees on 27 April 2021 **T Morgan Trustee** ## **Company Registration No. 09664738** - 7 - **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020** ## **1 Accounting policies** ## **Charity information** Northern Dance is a private company limited by guarantee incorporated in England and Wales. The registered office is C/O RMT Accountants & Business Advisors Ltd, Gosforth Park Avenue, Newcastle upon Tyne, NE12 8EG, United Kingdom. In the event of the charity being wound up, the liability in respect of guarantee is limited to £1 per member of the charity. ## **1.1 Accounting convention** The accounts have been prepared in accordance with the charity's memorandum and articles, the Companies Act 2006 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). The charity is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. This includes taking into account the potential impact of COVID-19 to ensure that cashflow is positively managed and the impact to the charity’s operations are mitigated. The Board has concluded that the going concern assumption is appropriate in preparing these financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. ## **1.4 Incoming resources** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. ## **1.5 Resources expended** 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. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. - 8 - ## **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020** ## **1 Accounting policies** **(Continued)** Support costs are those cost incurred that assist the work of the charity but are not directly incurred by the charitable activities. These cost are allocated between cost of raising funds and charitable activities. The basis on which support costs are allocated are set out in note 4. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Fixtures and fittings 20% straight line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. ## **1.7 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) . ## **1.8 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.9 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. - 9 - ## **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 31 JULY 2020** ## **1 Accounting policies** **(Continued)** ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. ## **2 Donations and legacies** |Donations and gifts
Government grants received
**Charitable activities**
Dancers
Pension costs
Clothing and equipment
Share of support costs (see note 4)
Share of governance costs (see note 4)|**2020**
**£**
41,400
8,913
50,313
**2020**
**£**
47,799
724
256
48,779
6,305
1,400
56,484|**2019**
**£**
81,400
-
81,400
**2019**
**£**
74,384
717
125
75,226
5,201
1,400
81,827| |---|---|---| ## **3 Charitable activities** - 10 - ## **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020** ## **4 Support costs** |**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Depreciation
2,971
-
Telephone
693
-
Insurance
440
-
Bank charges
90
-
Repairs and maintenance
1,236
-
Support costs heading 8
143
-
Legal and professional fees
732
-
Accountancy
-
1,400
6,305
1,400
**Analysed between**
Charitable activities
6,305
1,400|**2020**
**£**
2,971
693
440
90
1,236
143
732
1,400
7,705
7,705|**2019**
**£**
2,971
567
1,323
20
320
-
-
1,400
6,601
6,601| |---|---|---| All cost incurred have been in the pursuit of the objectives of the charity and thus all support costs have been allocated to charitable activities. ## **5 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. ## **6 Employees** ## **Number of employees** The average monthly number of employees during the year was: ||**2020**|**2019**| |---|---|---| ||**Number**|**Number**| ||3|5| |**Employment costs**|**2020**|**2019**| ||**£**|**£**| |Wages and salaries|40,831|57,312| There were no employees whose annual remuneration was £60,000 or more. - 11 - ## **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020** |**7**
**Tangible fixed assets**
**Cost**
At 1 August 2019
At 31 July 2020
**Depreciation and impairment**
At 1 August 2019
Depreciation charged in the year
At 31 July 2020
**Carrying amount**
At 31 July 2020
At 31 July 2019
**8**
**Debtors**
**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income
**9**
**Creditors: amounts falling due within one year**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**Fixtures and fittings**
**£**
14,857
14,857
5,942
2,971
8,913
5,944
8,915
**2020**
**2019**
**£**
**£**
605
-
266
262
871
262
**2020**
**2019**
**£**
**£**
894
-
396
-
762
150
1,400
1,400
3,452
1,550| |---|---| - 12 - **NORTHERN DANCE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020** ## **10 Unrestricted funds** ## **Current financial year** The income funds of the charity include unrestricted funds comprising the following unexpended balances of donations and grants held for charitable purposes: |||**Movement**|**in funds**|| |---|---|---|---|---| ||**Balance at 1**|**Incoming**|**Resources**|**Balance at 31**| ||**August**|**resources**|**expended**|**July 2020**| ||**2019**|||| ||**£**|**£**|**£**|**£**| |General funds|16,684|50,313|(56,484)|
10,513| |**Prior financial year**||||| |||**Movement**|**in funds**|| ||**Balance at 1**|**Incoming**|**Resources**|**Balance at 31**| ||**August**|**resources**|**expended**|**July 2019**| ||**2018**|||| ||**£**|**£**|**£**|**£**| |General funds|17,111|81,400|(81,827)|
16,684| ## **Transactions with related parties** During the year the charity received donations totalling £41,400 (2019: £81,400) from Paper Dove Limited, a company controlled by Trustee D Leonard. These donations are included as unrestricted donations as no restriction or conditions have been imposed by the donor. - 13 -