“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 1
## COMPANY THREE THEATRE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 CONTENTS
|Charity details|3|
|---|---|
|Report of the board of trustees|4|
|Report of the independent examiner|10|
|Statement of financial activities|11|
|Balance sheet|12|
|Accounting policies|13|
|Notes to financial statements|16|
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 2
## COMPANY THREE THEATRE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
## CHARITY DETAILS
|Trading Name|Company Three|
|---|---|
|Registered Name|Company Three Theatre Ltd|
|Registered Charity No|1169024|
|Company Number|10295645|
|Registered Address|C/o Central Library Islington|
||3rdFloor|
||2 Fieldway Crescent|
||London|
||N5 1PF|
|Trustees who served during the year||
||Natasha Bonnelame|
||Hannah D’Aguiar|
||Tarek Iskander|
||Mars Lord (Chair)|
||James Kempton|
||Monika Parkinson|
||Timothy Power|
||Michelle Agdomar|
|Executive Team (Joint CEO)|Edward Glasier (Artistic Director)|
||Becky Martin (Executive Director) (Maternity Leave January 2021-|
||November 2022)|
||Joe Bibby (Executive Director Maternity Cover) (Non CEO) January|
||2021 – November 2022|
|Bankers|The Cooperative Bank|
||PO Box 101|
||1 Balloon Street|
||Manchester|
||M60 4EP|
|Independent Examiner|Counterculture Partnership LLP|
||Unit 115 Ducie House|
||Ducie Street|
||Manchester|
||M1 2JW|
|Constitution|Charitable Company Limited by Guarantee|
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 3
## ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
## REPORT OF THE BOARD OF TRUSTEES
## STRUCTURE, GOVERNANCE & MANAGEMENT
Incorporated on 26 July 2016, Company Theatre Ltd is a Charitable Company Ltd by Guarantee. It is registered as a charity with the Charity Commission and as a company with Companies House. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In event of the company being wound up members are required to contribute an amount not exceeding £10.
The Directors of the company are also charity trustees for the purposes of charity law and under the charity’s articles are known as the directors of the Charity. The Trustees take ultimate legal and financial responsibility for the charity while the day-to-day running of the charity is delegated to the charity’s Joint CEOs Becky Martin (Executive Director) and Ned Glasier (Artistic Director). The trustees may appoint any person who is willing to act as a trustee, they may also appoint trustees to act as officers.
Trustees retire after 4 years with effect from the conclusion of the annual general meeting next after his or her appointment but shall be eligible for re-election at that annual general meeting for a further 4-year term. Officers retire from office after 2 years with effect from the conclusion of the annual general meeting next after his or her appointment but shall be eligible for re-election to that role at that annual general meeting for a further 2-year term.
Mars Lord ended her second term as Company Three’s Chair of Trustees in July 2022. Mars and the Board have worked with the Executive Team to ensure Company Three navigated the post COVID-19 Pandemic world whilst supporting all staff and members. Michelle Agdomar and James Kent resigned from the board in July 2022. Both gave invaluable support to Company Three during their time on the board. Silvia Dobrovich and Natasha Bonnelame have been appointed as our new co-chairs. The Board worked with the Executive Team in the following ways:
- Financial contingency planning –The Finance Committee worked with the Executive to ensure prudent financial planning for the year.
- Fundraising Support –Fundraising committee worked with the Executive and offered advice on applications
- Developing a strategic three year plan which formed the basis of Company Three’s application to become a National Portfolio Organisation in February 2022.
- Supporting Company Three’s safeguarding practise through the safeguarding committee and reviewing the safeguarding policy annually.
The Board also ensured that Company Three continued to work towards the five objectives identified in its 2019-22 business plan;
- A grassroots company, deeply rooted in its local community.
- A provider of space in which our young people have all the conditions they need to thrive.
- A producer of exceptional theatre by young people.
- A leader in a world-wide community of practice.
- A confident, sustainable charity with a clear vision for the future.
Whilst we had to augment and adapt our services during lockdown, the charity stayed on track working towards these aims.
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 4
New Board members receive an induction pack of information about Company Three and are expected to acquaint themselves with NVCO’s _Code of Good Governance_ . New Board Members are required to undertake NSPCC’s online ‘Child Protection: An Introduction’ training course and are supported to attend core company sessions to familiarise themselves with the charity’s activities and the context within which it operates.
The Board of Trustees conducts a review of the major risks to which the charity is exposed at each Board meeting where the charity’s risk register is updated. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces.
## CHARITY OBJECTIVES & ACTIVITIES
The Trustees confirm that they complied with the duty in Section 4 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit “Charities and Public Benefit”.
We have referred to the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our activities. In particular the Trustees have considered how planned activities will contribute to the aims and objectives they have set.
The objects of the charity, as set out in Company Three’s memorandum of association, are: _to advance education for the public benefit by the promotion of the arts, in particular but not exclusively, the art of drama._
We want teenagers to have the power to tell their own stories and make their own change; to be listened to, understood and celebrated.
We believe if you invest enough in a long-term and in-depth relationship with young people, the benefits will resonate.
We do this through three interconnected areas of activity:
## **In Islington**
We provide long-term support and training for a company of local young people; providing a safe space in which to grow, explore and take risks. All young people are nominated by their teachers when they are 11 as someone who would benefit from our programme.
## **In London**
We make plays in which our members can express themselves and the change they want to make, performed to audiences of people who have the most influence over their lives.
## **In the World**
We proactively share our practice, process and plays so that they can be used and adapted with organisations and artists working with teenagers everywhere.
## **KEY PROJECTS AND ACHIEVEMENTS IN 2021/22**
Our biggest success has been the return to in-person delivery after two years of hybrid delivery. This has meant delivering thirty regular weekly sessions for our members aged 13-19, developing new skills, building relationships and creating work which speaks of their experiences. As part of this, members created new work around the themes of cancel culture and friendship, which they performed as part of our festival of new work Assembly in April 2022. We have continued our holistic pastoral care including one to one check ins, games nights and responding to member’s ideas to programme events or provide support. Alongside this we were also able to resume our popular theatre trips, giving our members an insight into the different types of theatre made on London’s stage and providing them with artistic inspiration.
We continue to provide long-term support for our members working with them from the age of 11 through 18. We meet our members as who they are now and not who they might become and are committed to supporting their competence, autonomy and relatedness to help them self-determine their futures.
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 5
_‘There’s a level they expect from you. So you bring it into the room, that kind of energy, allows you to be on top of your game from the start but you can at least try to get there. My favorite thing is being able to tell your story.’_
## **New Staffing Structure**
In September 2021, we employed Philip Morris and Amber Ruby on three-year contracts to become Associate Artists of Company Three. As they joined, we reformed our artistic leadership structure to form a new artistic leadership team. This comprised of Ned Glasier (Artistic Director), Nuna Sandy (Associate Artistic Director) and our two new Associate Artists. They are supported by Becky Martin (Executive Director) and Angie Peña Arenas (Project Manager). In this first year our Artistic Director Ned took a six-month sabbatical, leaving the team to develop new work. The aim of this new structure is to collectively design and deliver our programme. We are exploring ways to make this genuinely collaborative and innovative, including twice-weekly ‘Practice Labs’ — artistic workshops in which we plan together, interrogate our practice, experiment, train and challenge our approach to equity and inclusion. We hope this way of working will provide more space for young people to work with different artists over the long term and provide new ways in which we can tell their stories.
## **Assembly Week**
This year our Associate Artists worked closely with two groups of our core company to develop a first-stage performance as part of our annual ‘Assembly Week.’ The artists worked with our members aged between 1418 to co-create three new pieces of work. 'CANCELLED’, directed by Philip Morris, an examination of cancel culture; ‘Just Friends’ directed by Amber Ruby, an investigation into friendship, and ‘A Part of Me,’ co-directed by Amber and Philip, an exploration of how we portray ourselves. These first draft pieces of work gave our members a chance to perform in front of an audience of friends and family, whilst also experience the full process of sourcing ideas, devising, rehearsing and performing for the first time since the pandemic.
## **When This Is Over**
Our production of ‘When This Is Over’, a play about the end of the pandemic and climate change was due to be performed at the Unicorn Theatre in October, but unfortunately due to Covid cases in the company it had to be cancelled. However, we were able to perform an informal sharing to an audience at the National Youth Theatre Studio in October 2021.
This production was part of a larger project where we shared the script and a how-to guide with fifty other companies across the country who made their own versions of the performance. These were performed across the country including in Bolton, Coventry, Wakefield and Hastings. All groups performed their versions of the show from October 2021 to March 2022. We received overwhelming positive feedback for our partner productions.
_‘WTIO gave control back to the young people when so many things have been out of their control, it gave a platform to discuss what might be considered difficult subjects in an interesting and engaging way.’_
The project won two awards: The Stage’s Community Project of the Year and Outstanding Drama Initiative at the Drama and Education Awards. Company Three’s production of the show was also programmed to be restaged at The Yard in November 2023.
_“Company Three’s work is rooted in creating with the communities it serves rather than for them.”_ Community Project of the Year, The Stage Awards 2022
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 6
## **Black is Safe**
‘Black Is Safe’ is a project led by our Associate Artistic Director Nuna with Philip and Amber as Associate Artists. Nuna created Black is Safe after noticing conversations between small groups of our Black members, speaking about topics they had only covered on a surface level during our sessions. She wanted to create a bigger, better space where Black members and Black staff could have those unfiltered conversations, rants, musings, laughter, and cries. To talk from a place where everyone already knew what you meant, and you didn’t have to caveat your story. As the project grew, the participants felt more and more that they wanted to express some of their ideas and feelings publicly. They conceived and created a new play, called #BlackIs….
The artistic team worked with the young people over the summer to create a production which they performed at The Pleasance Theatre in September 2022. The production was a brilliant celebration of identity and the young people felt confident to share their experiences as well as celebrating their roots.
_‘Making #Blackis was an experience that I hope to hold on to for the rest of my life. A show that stemmed from rants in monthly sessions and making raps turned into something that could educate me, bring me immense joy and give me a chance to use my voice with no filter.’_
## **Local school partnerships and 678 project**
We ran our 678 project for young people transitioning from primary school to secondary school. The group created a new piece exploring how to navigate the first year of secondary school, using creative tasks and conversations. They performed the play to an audience of parents and teachers in April 2022.
_‘Thank you for providing a space where she feels she can be honest and her true self._ ’ 678 Parent
We also began a new round of recruitment as part of our schools work delivering ‘Happy Hours’ for year 6 students in four local primary schools. Happy Hours are focused on providing a creative space where children can be and explore what makes them happy. This year the four schools made a collective podcast about what makes them happy in their local community. Students from this project were then invited to take part in our annual Big Weekend. A weekend of creative workshops designed to introduce them to Company Three.
We also delivered workshops in six other secondary and primary schools. We supported devising, movement and working on a project with University College London to help design a new tool which will support young people’s mental health.
We returned to Beacon High for a second year and worked with their Pathways provisions. We worked alongside the teacher to create a project that focused on engaging the young people to focus on their hopes and ambitions for the future. The teacher selected this group of young people as they struggle to engage with school and are also at risk of exclusion.
_‘The project gave them freedom of expression. It gave them a space where they didn’t have to adapt their personalities. This has influenced the way the school works and they want to have more moments where students can show more of their personalities in lesson.s’_ Teacher working on the project at Beacon High
## **Summer project and residential**
We delivered a full programme of Summer Activity based on research and development of new ideas and the development of new skills. We worked across venues in Islington over 5 days, then went on residential to Deben House in Epping Forest for four nights. During this time the company developed new ideas for performance and work for the new year. This included creating an immersive ghost story, hiding poems abouts bugs in unexpected places, reimaging Greek myths, celebrating culture and heritage through dance, and recreating non-playable characters from video games. We combined this work with bonding activities such a campfire and family ‘Olympics’ to support the creation of company and connectivity across all ages. A highlight of the residential was our Open Mic night where every member of the company performed their own
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 7
work and we said goodbye to our leaving members. At the end of residential the staff team draw together all the material created and work with the members to discuss what they want to take forward into the new year.
## **Continuing our successful fundraising and meeting our 2019-2022 Business plan objectives**
In 2021/22 we were pleased to secure new funds to support our work from the Victoria Wood Foundation and Arts Council England for projects such as the 678 project and #BlackIs. We were also pleased to secure repeat funding from Henry Smith Charity for our training programme. In the new year we are looking to expand capacity to be able to grow our commissions and individual giving targets.
We have also come to the end of our 2019/22 Business Plan and despite the pandemic we were proud to be able to achieve more than 80% of our objectives from the plan. A small number of objectives have been transferred to the new plan to be drafted in 2023, and some have been deprioritised due to changing circumstances. We are incredibly proud of what we have achieved in this period and see the fact that we were able to complete so many of our objectives despite the changing circumstances of the pandemic as a testament to how closely our vision and mission were aligned to our aims.
## **FINANCIAL PERFORMANCE AND INCOME BREAKDOWN**
Total income of 2021/2022 comprises of
- Donations £35,356
- Investment Income £29
- Operation of the Charity £24,846
- Grants £228,930
- **Total Income resources £289,161**
Total Expenditure
- Programme costs £111,771
- Marketing costs £2,130
- Staffing costs £197,980
- Charity running costs £34,027
- Governance support costs £1,756
- Fundraising costs £3,015
- **Total Resources expended £350,679**
Programme delivery is a key element of all salaried staff roles however for the purposes of financial accounts we have kept the cost of salaried staff members separate from other direct programme delivery costs.
At the close of 2021/22 we carried forward £116,216 into the next financial year. This figure comprises of
- £20,231 of restricted funds
- £15,985 of unrestricted funds (designated for future project expenditure)
- £80,000 of unrestricted funds (designated for charity reserves)
## **Policy on reserves**
The Board of Trustees have examined the charity’s requirements for reserves in light of the main risks to the organisation. It has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be between 3 and 6 months of the operational expenditure.
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 8
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The Trustees (who are also directors of The Big House Theatre Company for the purposes 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. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.
In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the method and principles in the Charities SORP;
- Make judgements and accounting estimates that are reasonable and prudent;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that
- the charitable company will continue in operation.
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 charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by Section 41SA of the Companies Act 2006.
Approved by the Board of Trustees on 26[th] May 2023 and signed on its behalf by
Silvia Dobrovich – Co-Chair of Trustees
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 9
## COMPANY THREE THEATRE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
## REPORT OF THE INDEPENDENT EXAMINER
I report to the trustees on my examination of the accounts of the charitable company for the year ended 31 August 2022.
## **Responsibilities and basis of report**
As the charity Trustees, who are also directors for the purposes of company law, are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company 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 your charity's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiners statement**
Since the Charitable company’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 by virtue of my membership of Association of Accounting Technicians, which is one of the listed bodies.
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 Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the 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 accounts 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 accounts to be reached.
Andrew M Wells FMAAT Unit 115 Ducie House Ducie Street Manchester M1 2JW Date: 26 May 2023
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 10
## COMPANY THREE THEATRE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
## STATEMENT OF FINANCIAL ACTIVITIES (including Income & Expenditure Account)
|**Incoming resources**|Unrestricted
Funds
£|Restricted
Funds
£|Total
2021/22
£||Total
2020/21
£||
|---|---|---|---|---|---|---|
|_Income and endowments from:_|||||||
|Donations and legacies|35,356|0|35,356||40,540||
|Grants|52,000|176,930|228,930||316,874||
|Charitable Activities|24,846|0|24,846||19,443||
|Investment Income|29|0|29||61||
|**Total Incoming Resources**|**112,231**|**176,930**|**289,161**||**376,918**||
||||||||
|**Resources Expended**|||||||
|Costs of generating funds|3,015|0|3,015||788||
|Charitable Activities|180,965|166,699|347,664||301,888||
|**Total Resources Expended**|**183,980**|**166,699**|**350,679**||**302,676**||
||||||||
|Net income/(expenditure) for the year|(71,749)|10,231|(61,518)||74,242||
|Transfer between funds|0|0|0||0||
|Total funds brought forward|167,734|10,000|177,734||103,492||
||||||||
|**Total funds carried forward**|**95,985**|**20,231**|**116,216**||**177,734**||
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 8 to the financial statements.
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 11
## COMPANY THREE THEATRE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
## BALANCE SHEET
|**Balance Sheets as at 31 August 2022**|**Total 2021/22**
**£**|**Total 2020/21**
**£**||
|---|---|---|---|
|||||
|**Current Assets**||||
|Debtors|19,669|27,514||
|Cash at bank in hand|140,637|203,274||
|**Total Current Assets**|**160,306**|**230,788**||
|||||
|**Liabilities**||||
|Creditors|1,071|4,890||
|Deferred Income & accruals|37,605|43,610||
|Other creditors|5,414|4,554||
|**Total Current Liabilities**|**44,090**|**53,054**||
|||||
|**Net Assets**|**116,216**|**177,734**||
|||||
|**Funds of the charity**||||
|Restricted Funds|20,231|10,000||
|Unrestricted Funds|15,985|83,464||
|Unrestricted Funds (reserves)|80,000|80,000||
|||||
|**Total funds**|**116,216**|**177,734**||
These accounts have been prepared in accordance with the special provisions applicable to small companies subject to the small companies' regime.
For the year ended 31 August 2022 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
Approved by: Silvia Dobrovich – Co-Chair of Trustees On behalf of Company Three’s Board of Trustees Date: 26 May 2023 Company Number: 10295645
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## COMPANY THREE THEATRE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
## ACCOUNTING POLICIES
## a.) Charity information
Company Three Theatre (the charitable company) is a private company limited by guarantee, incorporated in England and Wales. The registered office is Islington Central Library, 2 Fieldway Crescent, London, N5 1PF. The charitable company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the charitable company on winding up such amounts as may be required not exceeding £10.
## b.) Accounting convention
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Advantage has been taken of Section 396(5) of the Companies Act 2006 to allow the format of the financial statements to be adapted to reflect the special nature of the charity's operation and in order to comply with the requirements of the SORP. Company Three Theatre meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
## c.) Going concern
At the time of approving the financial statements and in the light of the ongoing Covid-19 pandemic, 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.
## d.) Income
All income is included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable, and its amount can be measured reliably.
- donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
- 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.
- Interest on funds held on deposit is included when receivable by the charity.
## e.) Fund accounting
Unrestricted funds are available to use to further any of the purposes of charity. Designated funds are unrestricted funds of the charity that have been set aside to fund particular future activities of the charity. Restricted funds are donated for particular areas of the charity’s work or specific projects undertaken.
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 13
## COMPANY THREE THEATRE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
## ACCOUNTING POLICIES
## f.) Expenditure and irrecoverable VAT
All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for its expenditure. All costs have been directly attributed or proportionally charged to the functional categories of resources expended in the SOFA. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which is relates.
Expenditure on charitable activities comprises the costs of performances, exhibitions and other educational activities undertaken to further the purposes of the charity. These costs are classified as direct charitable expenses.
Governance costs comprise costs related to the governance of the charity, to allow it to operate and to generate information for public accountability. Direct costs will include independent examination fees, legal advice and costs of trustees’ meetings.
All remaining costs are classified as charity running costs which are those that assist the work of the charity but do not directly represent charitable activities and include office and admin costs.
## g.) Operating leases
The charity classifies the lease of office premises as an operating lease; the title to the premises remains with the lessor. Lease charges are charged on a straight-line basis over the term of the lease.
## h.) Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
## i.) Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _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.
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 14
## COMPANY THREE THEATRE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
## ACCOUNTING POLICIES
## _Basic financial liabilities_
Basic financial liabilities, including creditors 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 payments 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. _Derecognition of financial liabilities_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## j.) Taxation
The charity is exempt from corporation tax on its charitable activities.
## k.) Pension scheme
Payments to a defined contribution retirement benefit scheme are charged as an expense as they fall due.
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## COMPANY THREE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
## NOTES TO FINANCIAL STATEMENTS
|**Notes**||**Unrestricted**
**Funds**
**£**|**Restricted**
**Funds**
**£**|**Total**
**2021/22**
**£**|**Total**
**2020/21**
**£**|
|---|---|---|---|---|---|
|||||||
|**1. Donations and legacies**||||||
|||||||
|Donations||**35,356**|**0**|**35,356**|**40,540**|
|||||||
|**2. Grants**||||||
|||||||
|Arts Council England (Grants for the
Arts)||0|29,430|29,430|40,500|
|Arts Council England Cultural Recovery
Fund||0|0|0|52,600|
|Arts Council Project(The wayI see it)||0|0|0|12,875|
|Arts Council England Emergency
Funding||0|0|0|3,500|
|Cripplegate Foundation||0|20,000|20,000|21,895|
|Tuixen Foundation||22,000|0|22,000|22,000|
|HenrySmith Charity||0|12,500|12,500|20,000|
|Islington Council||0|15,000|15,000|15,000|
|Esmee Fairbairn||30,000|0|30,000|30,000|
|Mercers Charitable Company||0|20,000|20,000|20,000|
|Children in Need InspiringFutures||0|15,000|15,000|30,000|
|Victoria Wood Foundation||0|5,000|5,000|6,500|
|DM Thomas Foundation||0|0|0|4,414|
|Paul Hamlyn Foundation||0|60,000|60,000|0|
|Garfield Weston||0|0|0|20,000|
|Swiss Philanthropy||0|0|0|12,500|
|JRS Grant||0|0|0|5,090|
|**Total**||**52,000**|**176,930**|**228,930**|**316,874**|
|||||||
|||||||
|**3. Charitable activities**||||||
|Commissionedprojects||18,199|0|18,199|0|
|Other sales / earned income||6,647|0|6,647|19,443|
|**Total**||**24,846**|**0**|**24,846**|**19,443**|
|||||||
|||||||
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 16
## COMPANY THREE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
## NOTES TO FINANCIAL STATMENTS
|**Notes**||**Unrestricted**
**Funds**
**£**|**Restricted**
**Funds**
**£**|**Total**
**2021/22**
**£**|**Total**
**2020/21**
**£**|
|---|---|---|---|---|---|
|**4. Costs ofgenerating funds**||||||
|||||||
|Fundraisingcosts||3,015|0|3,015|788|
|**Total**||**3,015**|**0**|**3,015**|**788**|
|||||||
|**5. Charitable Activities**||||||
|||||||
|Programme costs||42,897|68,874|111,771|89,600|
|Marketingcosts||2,130|0|2,130|2,005|
|Staffingcosts||113,371|84,609|197,980|174,065|
|Charity running costs||20,811|13,216|34,027|35,070|
|Governance costs||1,756|0|1,756|1,148|
|**Total**||**180,964**|**166,699**|**347,664**|**301,888**|
|||||||
|**6. Staff costs**||||||
|||||||
|Wages and salaries||||**176,907**|155,294|
|NI and Administration costs||||**12,631**|11,506|
|Employer Pension Contributions||||**8,442**|7,265|
|**Total**||||**197,980**|**174,065**|
|**Staff numbers**|||||**5**|
|||||||
|All staff members are involved in the direct delivery of our programmes, but we have separated from
project costs for clarity in this document.
No trustees were reimbursed any expenses in the year or the previous year
During the year, tickets for the charity’s performances were provided free of charge to trustees. The total
value of these tickets amounted to £30 for the year||||||
|**7.Net income/(expenditure) for theyear**||||||
|This is stated after charging:||||||
|||||||
|Independent examination||||**1,260**|**1,080**|
|**7.Net income/(expenditure) for theyear**||||||
|---|---|---|---|---|---|
|This is stated after charging:||||||
|||||||
|Independent examination||||**1,260**|**1,080**|
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 17
## COMPANY THREE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
## NOTES TO FINANCIAL STATMENTS
## **8. Movement Between Funds**
|**Restricted Grants**|**01/09/2021**|**Incoming**|**Resources**|**31/08/2022**|**Notes**|
|---|---|---|---|---|---|
||**Opening**|**Resources**|**expended**|**Closing**||
|Garfield Weston|10,000||10,000|0|Towards Company Three's
training programme over a year
February2021 - February2022|
|Cripplegate
Foundation||20,000|10,000|10,000|Towards Company Three's programme of work
to run three years of activities for young people
including theatre workshops, training,
informal/social activities, residentials, sharings,
open mic nights andproductions.|
|Paul Hamlyn||60,000|60,000|0|The grant is to support core costs and funding will
contribute to the salaries of two new part-time
Associate Artistsjoining your leadershipteam.|
|Arts Council
England (Grants
for the Arts)||29,430|19,199|10,231|To support the creation of Black is Safe is a new
play exploring what it means to be a Black
teenager in Islington. Through the lens of
friendship, family, music, culture and celebration,
Company Three members aged 11-19 share the
joy of Black relatedness, their experience of
racism,and the realitybehind thepreconceptions.|
|Henry Smith
Charity||12,500|12,500|0|To support 75 teenagers aged 11-19 in Islington to
take part in a programme of training and
development over 36 months, underpinned by
holistic wraparound support, helping them build a
range of skills and abilities and be better prepared
for future employment.|
|Islington Council||15,000|15,000|0|A core grant will go toward the salary of our
Producer (pastoral lead) to deliver a holistic and
sustained wraparound pastoral delivery as well as
deepening and building new relationships with key
partners.|
|Mercers
Charitable
Company||20,000|20,000|0|To support the delivery of theatre training to a
company of marginalized young people aged 11-
19 in the borough of Islington.|
|Children in Need
InspiringFutures||15,000|15,000|0|Towards Company Three's training programme
and holistic support offer|
|Victoria Wood
Foundation||5,000|5,000|0|To support the 678 project for young people aged
10 -13 (Years 6, 7 and 8), to help them develop a
passion for theatre while supporting them in the
difficult transition from primary to secondary
school.|
|**Total Restricted**|**10,000**|**176,930**|**166,699**|**20,231**||
|||||||
|**Unrestricted**
**Grants**|**01/09/2021**|**Incoming**|**Resources**|**31/08/2022**||
||**Opening**|**Resources**|**expended**|**Closing**||
|**Total Unrestricted**|**167,734**|**112,231**|**183,980**|**95,985**||
|**Total Restricted**
**and Unrestricted**
**Grants**|**167,734**|**112,231**|**183,980**|**95,985**||
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 18
## COMPANY THREE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
## NOTES TO FINANCIAL STATMENTS
## **9. Statement of Financial Activities (Prior Year) showing fund split**
|**Incoming resources**|Unrestricted
Funds
£|Restricted
Funds
£|Total
2020/21
£||
|---|---|---|---|---|
|_Income and endowments from:_|||||
|Donations and legacies|40,450|0|40,450||
|Grants|74,004|242,870|316,874||
|Charitable Activities|19,443|0|19,443||
|Investment Income|61|0|61||
|**Total Incoming Resources**|134,048|242,870|376,918||
||||||
|**Resources Expended**|||||
|Costs of generating funds|788|0|788||
|Charitable Activities|69,018|232,870|301,888||
|**Total Resources Expended**|69,806|232,870|302,676||
||||||
|Net income/(expenditure) for the year|64,242|10,000|74,242||
|Transfer between funds|0|0|0||
|Total funds brought forward|103,492|0|103,492||
||||||
|**Total funds carried forward**|**167,734**|**10,000**|**177,734**||
“COMPANY THREE” ANNUAL REPORT & FINANCIAL STATEMENTS | YEAR ENDING 31 AUGUST 2022 | PAGE 19