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## **Roundhouse Birmingham**
(A company limited by guarantee)
# **Audited Report and Financial Statements For the year ended 31 December 2020**
Charity number 1169232 Company number 10323771
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## **Roundhouse Birmingham**
(A company limited by guarantee)
|**Contents**|**Page**|
|---|---|
|Reference and Administrative Information|3|
|Report of the Trustees|4|
|Independent Auditor’s Report|9|
|Statement of Financial Activities|12|
|Balance Sheet|13|
|Statement of Cash Flows|14|
|Notes forming part of the financial statements|15|
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## **Roundhouse Birmingham**
## **Reference and Administrative Information**
Charity Name: Roundhouse Birmingham Charity registration number: 1169232 Company registration number: 10323771 Registered Office Address: First Floor North Station House 500 Elder Gate Milton Keynes MK9 1BB Operational Address: Roundhouse Birmingham Sheepcote Street Birmingham B16 8EB
## **Board Members/Trustees**
Mr S Mills (Chair) Mr Q Pickford (Resigned 19[th] May 2021) Mr A Beer Mrs L Ransberry Miss H Clarke Mrs L Reid Mr A Saif (Appointed 29[th] June 2021)
**Auditors –** Chiene + Tait LLP, 61 Dublin Street, Edinburgh, EH3 6NL.
**Bankers –** Nat West, Broad Street, Birmingham, B1 2DN
**Solicitors –** Bevan Brittan, Kings Orchard 1, Queen Street, Bristol, BS2 0HQ
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## **Roundhouse Birmingham**
## **Report of the Trustees For the year ended 31 December 2020**
The Trustees present their third annual report together with the financial statements of Roundhouse Birmingham (the charity) for the year ended 31 December 2020. The Trustees confirm that the annual report and financial statements comply with the Charities Act 2011, the requirements of the charity’s governing document and the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities”, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
## **Our Aims and Objectives**
The Roundhouse is one of Birmingham's most interesting and iconic buildings. Built in 1874 by the Birmingham Corporation it was originally used as a stables and stores. Designed by local architect W.H. Ward, the horseshoe-shaped building has become a real landmark in the city.
The aims of the charity are:
- (a) to promote, facilitate, undertake and assist in the conservation and enhancement of the Roundhouse Birmingham building and grounds for public benefit and enjoyment;
- (b) to advance the education of the public in the history of Roundhouse Birmingham and the surrounding area; and
- (c) to further such other exclusively charitable purposes incidental to the above objects as the Trustees see fit.
The Roundhouse is the first joint venture between the Canal & River Trust and the National Trust and is at the forefront of both organisations’ urban strategies. Our £4m restoration and redevelopment project has been taking shape since 2013, and we completed construction in early 2021, opening our doors to the public for the first time in July.
Located in the heart of Ladywood, the Roundhouse sits within an economically, culturally and demographically diverse area, overlooking Birmingham’s regenerating waterside. It is a horseshoe-shaped building, originally built to function as stables and stores for the City’s lamplighters and the horses of the Public Works department.
Unlike most of the neighbouring Victorian architecture, this curious building survived the centuries and in 1976 was given a Grade II* listing due to its architectural and historic significance. But by the early 2000s, it had begun to fall into disrepair. Following this period of decline for the Roundhouse, the Canal & River Trust and National Trust came together in 2013, identifying an exciting opportunity to safeguard the future of the building. With capital investment from the National Lottery Heritage Fund and Historic England, the project restored the building to create an urban discovery and enterprise hub.
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## **Roundhouse Birmingham**
## **Report of the Trustees (continued) For the year ended 31 December 2020**
The year under review saw the completion of the main capital works to the building including the structure, brickwork and roof, and internal works including the M&E fit out and installation of new feature windows to what will become the visitor spaces. In late December 2020 works to repair the cobbled courtyard began. 2021 will see the fit out of the internal spaces to house the offices, café, visitor reception and exhibition spaces that will eventually occupy the Roundhouse.
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## **Plans for the future**
The emerging global pandemic of 2020 delayed the opening to the public until July 2021 when the Roundhouse has become an exciting new destination for Birmingham. We look forward to welcoming people of all ages and abilities and encouraging them to discover with us the untold stories of one of the UK’s most vibrant cities. Our work will connect people to their local places and support the local economy and surrounding communities through an innovative, highly participatory programme of activities. There will be opportunities for heritage, fitness, well-being, culture, learning and skills development. The Roundhouse will be a place to meet, to work, and a base from which to explore the City and its history – by foot, by bike and by boat.
## **Structure, Governance and Management**
## **Governing Document**
The organisation is a charitable company limited by guarantee, incorporated on 10 August 2016 and registered as a charity on 16 September 2016. 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 the event of the company being wound up members are required to contribute an amount not exceeding £1.
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## **Report of the Trustees (continued) For the year ended 31 December 2020**
## **Recruitment and Appointment of the Board**
The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles are known as Members. Under the requirements of the Memorandum and Articles of Association the members of the Trustees are nominated to serve by each party to the Joint Venture, with the term of office to last until termination as per the strictures of the Articles of Association.
All members of the Trustees give their time voluntarily and received no benefits from the charity. Any expenses reclaimed from the charity are set out in note 7 to the accounts.
## **Organisational Structure**
The Roundhouse Birmingham has a Board of Trustees of up to 6 members who meet quarterly and are responsible for the strategic direction and policy of the charity. At present the Board has six members from a variety of professional backgrounds relevant to the work of the charity.
A scheme of delegation is in place and day to day responsibility for the provision of the services rest with Canal & River Trust’s Head of Operational Projects and National Trust Birmingham’s General Manager, who jointly manage the operational team, along with the services, financial and administrative support outlined in the Service Level Agreement. The joint Managers are responsible for ensuring that the charity delivers the services specified and that key performance indicators are met. The Roundhouse Operations Manager has responsibility for the day to day operational management of the site, individual supervision of the staff team and also ensuring the team continue to develop their skills and working practices in line with good practice.
## **Risk Management**
The Board has conducted a review of the major risks to which the charity is exposed. A risk register has been established and is updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Significant external risks to funding have led to the development of a strategic plan which will allow for the diversification of funding and activities. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers, clients and visitors to the centre. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity.
## **Achievements and Performance**
## **Financial review**
As at 31 December the charity had a net surplus of funds of £84.4k. Finance required beyond that obtained from fundraising and operations is provided by the identical loan agreements between Roundhouse Birmingham and both the Canal River Trust and National Trust.
## **Reserves policy**
The Trustees aim to maintain a level of reserves sufficient to support the operational expenditure and any commitments of the charity for a period of 12 months.
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## **Roundhouse Birmingham**
**Report of the Trustees (continued) For the year ended 31 December 2020**
## **Trustees' responsibilities statement**
The trustees (who are also directors of Roundhouse Birmingham for the purposes of company law) are responsible for preparing the Trustees’ Annual 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 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 methods and principles in the Charities SORP 2015 (FRS 102);
- 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;
- 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 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 the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company’s auditor is unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the Trustees on and signed on its behalf by: 16 September 2021
**Mr S Mills Trustee**
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## **Roundhouse Birmingham**
## **Independent Auditor’s Report to the Trustees of Roundhouse Birmingham**
## **Opinion**
We have audited the financial statements of Roundhouse Birmingham (the ‘charitable company’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with Charities SORP (FRS 102) (second edition – October 2019)
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we conclude that the trustees’ use of the going concern basis in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report[1] , other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other
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information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Other matters**
The comparative figures in the financial statements are unaudited for the year ended December 2019.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
- the charitable company has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 8, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
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material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
We gained an understanding of the legal and regulatory framework applicable to the charitable company and the industry in which it operates and considered the risks of acts by the charitable company which were contrary to appliable laws and regulations, included fraud.
We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to:
- agreement of the financial statement disclosures to underlying supporting documentation;
- review of minutes of board meetings throughout the period;
- discussions with management;
- review of legal correspondence or invoices; and
- obtaining an understanding of the control environment in monitoring compliance with laws and regulations.
There are inherent limitations in an audit of financial statements and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the trustees that represented a material misstatement due to fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
## **Use of our report**
This report is made solely to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Jeremy Chittlebrugh, CA (Senior Statutory Auditor)**
For and on behalf of Chiene + Tait LLP Chartered Accountants and Statutory Auditor 61 Dublin Street Edinburgh
Date: 16 September 2021
**Chiene + Tait LLP** is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
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## **Roundhouse Birmingham**
## **Statement of Financial Activities For the year ended 31 December 2020**
|**Note**
**Income from:**
Donations and
Legacies
2
Charitable
activities
Other trading
activities
**Total Income**
**3**
**Expenditure on:**
Charitable
activities
4
Transfer net
income/(costs)
**Net income**
**(expenditure) for**
**the period**
5
**Reconciliation**
**of funds**
Total deficit
brought forward
**Total**
**surplus/(deficit)**
**carried forward**
13|**Unrestricted**
**Funds**
**2020**
**£’000**
**Restricted**
**Funds**
**2020**
**£’000**
**12.5**
**-**
**-**
**599.6**
**-**
**-**|**Total**
**Funds**
**2020**
**£’000**
**12.5**
**599.6**
**-**
||Unrestricted
Funds
2019
£’000
Restricted
Funds
2019
£’000
Total
Funds
2019
£’000
-
8.0
8.0
2.9
1958.6
1961.5
-
-
-|
|---|---|---|---|---|
||**12.5**
**599.6**|**612.1**||2.9
1966.6
1969.5|
||**-**
**(329.0)**
**270.6**
**(270.6)**|
**(329.0)**
**-**||-
(2090.1)
(2090.1)
(123.5)
123.5
-|
||**283.1**
**-**|**283.1**||(120.6)
**-**
**(120.6)**|
||**(198.7)**
**-**|
**(198.7)**
||(78.1)
-
(78.1)|
||**84.4**
**-**|**84.4**||(198.7)
-
(198.7)|
The statement of financial activities includes all gains and losses recognised in the period. All income and expenditure derive from continuing activities.
The notes on pages 15 to 22 form part of these financial statements
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## **Roundhouse Birmingham**
## **Balance Sheet As at 31 December 2020**
|**Note**
**Fixed Assets**
Heritage Assets
9
**Total Fixed Assets**
**Current assets**
Debtors
10
Cash at bank and in hand
**Total Current Assets**
**Current Liabilities**
Creditors falling due within
one year
11
**Net Current Assets**
**Total Assets Less Current**
**Liabilities**
**Non-Current Liabilities**
Creditors falling due after
more than 1 year
12
**Net Liabilities**
**Charity Funds**
Unrestricted funds
13
**Total Charity Funds**
13|**2020**
2019
**£’000**
£‘000
1063.0
467.9|
|---|---|
||1063.0
467.9|
||278.4
554.9
155.0
439.0|
||433.4
993.9
(262.4)
(660.9)|
||171.0
333.0|
||1234.0
800.9
(1149.6)
(999.6)|
||84.4
(198.7)|
||84.4
(198.7)|
||84.4
(198.7)|
Approved by the board on and signed on its behalf by:
16 September 2021
## **Mr Stuart Mills**
The notes on pages 15 to 21 form part of these financial statements.
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## **Roundhouse Birmingham**
## **Statement of Cash Flows For the year ended 31 December 2020**
|**Note**
**Cash flows from operating activities**
**_Net cash provided by (used in) operating_**
**_activities_**
14
**Cash flows from investing activities**
Purchase of property, plant and equipment
Purchase of investments
**_Net cash provided by (used in) investing_**
**_activities_**
**Cash flows from financing activities**
Cash inflows from Partner loans
**_Net cash provided by (used in) financing_**
**_activities_**
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
**Cash and cash equivalents at the end of the**
**reporting period**
**Analysis of changes in net debt**
Borrowings at 1stJanuary 2020
Loan advances
Borrowings at 31stDecember 2020|**2020**
**2019**
**£’000**
**£’000**
**(434.0)**
**(22.7)**
-
-|
|---|---|
||**-**
**-**
150.00
372.0|
||**(284.0)**
**349.3**|
||(284.0)
349.3
439.0
89.7|
||155.0
439.0|
||999.6
150.0
1149.6|
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## **Roundhouse Birmingham**
**Notes forming part of the Financial Statements For the year ended 31 December 2020**
## **1. Accounting Policies**
## **(a) Basis of accounting**
The charity constitutes a public benefit entity as defined by FRS 102. 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 (second edition – October 2019)
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £000.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated
## **(b) Fund accounting**
- Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Unrestricted funds include a revaluation reserve representing the restatement of investment assets at market values.
- Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.
- Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.
## **(c) Incoming resources**
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received. The following policies are applied to particular categories of income:
- Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
- Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included in these accounts.
- Investment income is included when receivable.
- Incoming resources from charitable trading activity are accounted for when earned.
- Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.
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## **Roundhouse Birmingham**
**Notes forming part of the Financial Statements cont. For the year ended 31 December 2020**
## **(d) Resources expended**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:
- Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes including the charity’s shop.
- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services 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.
- • Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.
- All costs are allocated between the expenditure categories of the SoFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis e.g. floor areas, per capita or estimated usage.
## **(e) Fixed assets**
Heritage assets are defined as tangible property with historical, artistic, scientific, technological, geophysical or environmental qualities which are held and maintained principally for their contribution to knowledge and culture. The Roundhouse building is Grade II* listed.
Heritage assets must be recognised as an asset on a charity’s balance sheet separately from other assets. Heritage assets are reported as a separate class of tangible fixed asset on the balance sheet and should measured initially at either cost or valuation if donated.
Heritage assets initially recognised at cost may continue to be carried at historical cost subject to any depreciation or impairment, or charities may choose to adopt a policy of valuation.
A policy of valuation has been adopted for heritage assets by the Roundhouse Birmingham. An independent market valuation at 31[st] December 2020 was provided by Avison Young chartered surveyors of £1,063,000.
There is no prescribed minimum period between valuations, however where the valuation model is adopted the carrying value should be reviewed with sufficient frequency to ensure that the valuations remain current.
Acquisitions only arise when donated to the charity or if it is believed that they will further the charity’s objectives. Once acquired they will be preserved by the charity in order to keep their historical, artistic, scientific, technological, geophysical or environmental qualities to such a high level as to contribute to knowledge and culture. A register of all assets held by the charity is available and the assets themselves are accessible to the public with prior agreement. Heritage assets are to be held for the foreseeable future.
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## **Roundhouse Birmingham**
**Notes forming part of the Financial Statements cont. For the year ended 31 December 2020**
## **(f) Concessionary loans**
A programme related investment or mixed motive investment may be made in the form of a concessionary loan to a third part interest free or at below prevailing market rates. Concessionary loans are not made solely to achieve a financial return. Concessionary loans are made wholly or in part to advance charitable purposes for the benefit of the charity’s beneficiaries.
Charities receiving concessionary loans repayable in more than one year must opt to either
- initially recognise and measure the loans at the amount received or paid, with the carrying amount adjusted in subsequent tears to reflect repayments and any accrued interest and adjusted in necessary for any impairment, or
- measure such loans initially at their fair value and subsequently at their amortised costs using the effective interest method.
The Roundhouse Birmingham is in receipt of concessionary loans from National Trust and Canal River Trust under the terms of a loan facility of up to £1m per partner. These concessionary loans are recognised at the amount received.
## **(g) Tax**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## **(h) Going concern**
The global pandemic and resulting national containment measures slowed progress in completing the restoration, however in July 2021 the Roundhouse Birmingham welcomed its first visitors. During 2020 the funding agreements with National Trust and Canal and River Trust was extended to increase the loan facility repayable in 2027 to £1m per partner. The extended quantum of finance available to the company means there is no prospect of the Roundhouse running out of funds over the next 12 month period from approval of the financial statements. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern and the financial statements have therefore been prepared on a going concern basis.
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## **Roundhouse Birmingham**
## **Notes forming part of the Financial Statements cont. For the year ended 31 December 2020**
## **2. Income from donations and legacies**
|**Unrestricted**
**Funds**
**2020**
**£000**
**Restricted**
**Funds**
**2020**
**£000**
Donations
12.5
-
________
________|**Total**
**Funds**
**2020**
**£000**
**12.5**
________|Total
Funds
2019
£000
8.0
__________|
|---|---|---|
In 2020, £12,500 income was received from donations related to unrestricted funds, and £8,000 of donations income recognised in 2019 was received in prior years.
## **3. Income from charitable activities**
|**Unrestricted**
**Funds**
**2020**
**£000**
**Restricted**
**Funds**
**2020**
**£000**
Heritage Lottery
Funding
Historic England
Funding
Wolfson Grant
National Trust
Canal and River
Trust
Other
-
-
-
2.5
10.0
-
499.1
98.0
-
-
-
2.5
________
________
12.5
599.6
|**Total**
**Funds**
**2020**
**£000**
Unrestricted
Funds
2019
£000
Restricted
Funds
2019
£000
**499.1**
**98.0**
**-**
**2.5**
**10.0**
**2.5**
-
-
-
-
2.9
1825.6
98.0
35.0
-
8.0
________
________
________
**612.1**
2.9
1966.6
|Total
Funds
2019
£000
1825.6
98.0
35.0
-
2.9
________
1969.5
|
|---|---|---|
18
DocuSign Envelope ID: 82E957EC-21AE-4302-8C2F-6B73AE8521FD
## **Roundhouse Birmingham**
## **Notes forming part of the Financial Statements cont. For the year ended 31 December 2020**
## **4. Total Resources Expended**
|**Unrestricted**
**Funds**
**2020**
**£000**
**Restricted**
**Funds**
**2020**
**£000**
**Costs of raising**
**funds**
Salary costs
-
85.3
Secretarial costs
-
4.4
Professional fees
-
124.5
Restoration costs
-
676.6
Restoration costs
capitalised
-
(595.4)
Insurance
-
3.2
Legal fees
-
-
Rates
-
-
Management Fees
-
-
Equipment
Advertising
-
-
5.5
-
Other
-
24.9
Transfer
-
-
________
________
-
329.0
|**Total**
**Funds**
**2020**
**£000**
Unrestricted
Funds
2019
£000
Restricted
Funds
2019
£000
**85.3**
-
93.0
**4.4**
-
4.0
**124.5**
-
108.5
**676.6**
-
1940.5
**(595.4)**
-
(94.6)
**3.2**
-
3.2
**-**
-
-
**-**
-
-
**-**
-
-
**5.5**
**-**
-
-
25.1
0.4
**24.9**
-
10.0
**-**
123.5
(123.5)
________
________
________
**329.0**
123.5
1966.6
|Total
Funds
2019
£000
93.0
4.0
108.5
1940.5
(94.6)
3.2
-
-
-
25.1
0.4
10.0
-
________
2090.1
|
|---|---|---|
Where total annual expenditure exceeds annual restricted funding, a transfer is made from restricted funds to unrestricted at the end of the year.
## **5. Net expenditure for the period**
Net expenditure is stated after charging:
|Audit fee|**2020**
**£**
**4.0**
________|2019
£
3.3
________|
|---|---|---|
## **6. Salaries and Wages**
There are no direct employees of Roundhouse Birmingham.
The Trustees consider the board of Trustees as comprising the key management personnel of the charity in charge of directly controlling the day to day operations. All Trustees give their time freely and no Trustee remuneration was paid in the year.
19
DocuSign Envelope ID: 82E957EC-21AE-4302-8C2F-6B73AE8521FD
## **Roundhouse Birmingham**
**Notes forming part of the Financial Statements cont. For the year ended 31 December 2020**
## **7. Trustee Remuneration & Related Party Transactions**
No trustees received any remuneration during the period. Travel costs amounting to £nil (2020 – nil) were reimbursed to 0 (2020 – 0) trustees.
No trustee or other person related to the charity had any personal interest in any contract or transaction entered into nil by the charity during the period (2020 – Nil).
## **8. Taxation**
As a charity, Roundhouse Birmingham is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity.
## **9. Heritage assets**
|**Cost**
Net book value at 1stJanuary 2019
Additions
Net book value at 31stDecember 2020
**Cost**
Net book value at 1st January 2018
Additions
Net book value at 31stDecember 2019|**Leasehold Land**
**& Buildings**
**£000**
467.9
595.1|
|---|---|
||**1063.0**
**Leasehold Land**
**& Buildings**
**£000**
373.0
94.9|
||**467.9**|
In 2020 there were no disposals of Heritage assets. Additions relate to capital restoration costs.
20
DocuSign Envelope ID: 82E957EC-21AE-4302-8C2F-6B73AE8521FD
## **Roundhouse Birmingham**
## **Notes forming part of the Financial Statements cont. For the year ended 31 December 2020**
## **10. Debtors**
|Trade Debtors
Other Debtors incl. Taxation|**2020**
**£000**
2019
£000
**-**
-
**278.4**
554.9|
|---|---|
||**278.4**
554.9|
## **11. Creditors: Amounts falling due within one year**
|Trade Creditors
Other Creditors and Accruals|**2020**
**£000**
2019
£000
**55.3**
62.1
**207.1**598.8|
|---|---|
||**262.4**
660.9|
## **12. Creditors: Amounts falling due in more than 1 year**
|Grants
Loan from Canal River Trust
Loan from National Trust|**2020**
**£000**
2019
£000
**574.8**
499.8
**574.8**
499.8|
|---|---|
||**1149.6**
999.6|
An interest free loan facility of £1m is arranged with each Partner, repayable 10 years form the date of issue by 4[th] July 2027.
## **13. Analysis of net assets between funds**
|Fixed assets
Cash
Other current assets
Creditors more than one year|**Unrestricted**
**funds**
**Restricted**
**funds**
**Total 2020**
**Total 2019**
**£000**
**£000**
**£000**
**£000**
1063.0
-
**1063.0**
467.9
155.0
-
**155.0**
439.0
16.0
-
**16.0**
(106.0)
(1149.6)
-
**(1149.6)**
(999.6)|
|---|---|
||**84.4**
**-**
**84.4**
(198.7)|
21
DocuSign Envelope ID: 82E957EC-21AE-4302-8C2F-6B73AE8521FD
## **Roundhouse Birmingham**
## **Notes forming part of the Financial Statements cont. For the year ended 31 December 2020**
## **14. Reconciliation of net income / (expenditure) to net cash flow from operating activities**
|Net operating income/ (expenditure) for period
Fixed asset additions
Movement in debtors
Movement in creditors including grants
Net cash outflow from operating activities|**2020**
2019
**£000**
£000
**283.1**
(120.6)
**(595.3)**
(94.9)
**276.4**
(405.4)
**(398.5)**
598.2
-|
|---|---|
||**(434.0)**
(22.7)|
## **15. Related Party Transactions**
Roundhouse Birmingham was in receipt of £75,000 loan from each of the partners in the period as per loan agreements between the parties to fund the joint venture.
Roundhouse Birmingham was recharged costs for the provision of goods and services by the Joint Venture partners. For the period ended 31 December 2020, the joint venture paid recharges totalling £58,814; (2018: £65,504) to The National Trust and recharges totalling £3,190 (2019: £3,190) to Canal & River Trust. At 31 December 2019 amounts totalling £26,818 were owed to National Trust and £63,583 to Canal & River Trust.
## **16. Capital commitments**
At 31 December 2020, the Company had £67,599 capital commitments (31 December 2019: £ 2,170,856).
22