Registered number: CEO10828 Charity number: 1174338
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
| CONTENTS | |
|---|---|
| Page | |
| Reference and administrative details of the charity, its trustees and advisers | 1 |
| Trustees' report | 2 - 4 |
| Independent auditors' report | 5 - 8 |
| Consolidated statement of financial activities | 9 |
| Consolidated balance sheet | 10 |
| Charity balance sheet | 11 - 12 |
| Consolidated statement of cash flows | 13 |
| Notes to the financial statements | 14 - 30 |
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 OCTOBER 2021
Trustees
Lord S Carter A Mallin M Head M Smith M Homer S Laing J Hobbs Lord Leigh of Hurley
Company registered number
CEO10828
Charity registered number
1174338
Registered office
Leander Club, Henley-On-Thames, Oxfordshire, RG9 2LP
Chief executive officer
J Bausor
Independent auditors
Donald Reid Limited, Prince Albert House, 20 King Street, Maidenhead, Berkshire, SL6 1DT
Bankers
Lloyds Bank plc, 1 Reading Road, Henley-on-Thames, RG9 1AE
Solicitors
The Head Partnership, 2 Duke Street, Henley-on-Thames, RG9 1UP
Page 1
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 OCTOBER 2021
The Trustees present their annual report together with the audited financial statements of the group and the charity for the year 1 November 2020 to 31 October 2021. The Trustees confirm that the Annual Report and financial statements of the group comply with the current statutory requirements, the requirements of the group's governing documents and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) published in October 2019.
Structure, governance and management
The Henley Festival Trust is a Charitable Incorporated Organisation through which all charitable activities are run. Non charitable activities, including food, beverage, merchandise and corporate hospitality sales, are run through a wholly-owned subsidiary company, Henley Festival Limited.
The charity is managed by a Board of Trustees which meets regularly. There must be at least five Trustees, of which two must also serve as Directors of Henley Festival Limited, up to a maximum of nine Trustees.
A Chief Executive Officer is appointed by the Trustees to manage the day to day operations of the charity and a qualified accountant is appointed as Finance Director. The charity liaises regularly with its lawyers, accountants and professional advisers.
The Trustees have assessed the major risks to which the charity is exposed, in particular those relating to the operations and finances of the charity. The Trustees are satisfied that adequate systems are in place to safeguard the assets. Cashflow forecasts are prepared and reviewed on a regular basis to ensure that liabilities can be met as they fall due and to provide assurance that the limited company and charity are operating as going concerns.
Objectives and aims
The purpose of the charity is the advancement of the arts which includes musical, visual, literary, dramatic or any other arts, and the promotion and widening of public appreciation and interest in the arts in Henley-on-Thames and the surrounding area and other such places as the Trustees may from time to time determine for the benefit of the public.
The organisation carries out its purpose in two main ways:
1) through the provision of the annual Henley Festival; and
2) by supporting emerging talent, both on the stage and behind the scenes, and working with local and national organisations that widen access and participation in the arts and improve the diversity of those involved in the arts.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Trust should undertake and in respect of public benefit.
Achievements and performance
Following the postponement of the Festival in 2020 due to COVID-19 restrictions, the event went ahead successfully in September 2021.
Financial review
The charity recorded a net income before taxation of £132,806 (2020: £134,237 loss) .
Following a reduction in reserves in the previous year due to the deficit resulting from the impact of COVID-19,
Page 2
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 OCTOBER 2021
reserves have increased to pre-pandemic levels and now stand at £235,379.
The Trustees are committed to maintaining sufficient reserves to ensure that the charity can continue to promote its aims within the local community and to support emerging talent more widely, and have set a target to maintain unrestricted funds between £250,000 - £400,000.
Fundraising activities
The charity benefits from the generous support of the Patrons’ Club. The Trustees are particularly grateful for the generous support of Patrons and supporters over the previous two years. Funds are also raised through the Friend’s membership scheme which offers various levels of support, each attracting a range of benefits, and from corporate sponsorship, corporate members and donors.
The charity has a targeted approach to fundraising, with the CEO, supported by a specialist fundraising team. The charity’s fundraising activities conform to all recognised standards and any complaints are dealt with by the CEO. There were no complaints received by the charity with regard to its fundraising activities during the year.
Plans for future periods
2022 is the 40th anniversary of the Henley Festival. The aim for this and future years is to continue to:
• develop Henley Festival as a credible and nationally recognised arts organisation which delights our audiences, partners, sponsors, Patrons and Friends;
• innovate and invest in order to offer a dynamic arts experience of the highest quality for our audiences, sponsors and corporate guests;
• transform people’s lives by making a significant contribution to the cultural and economic life of Henley-onThames and the surrounding area;
• develop and nurture the next generation of creative talent through the new charitable initiative, RISE, launched in the 40th anniversary year to support emerging talent both on the stage and behind the scenes;
• ensure that the Festival continues to thrive through challenging economic times by the continued development and diversification of income sources, prudent budgeting and long term planning, effective cost control and environmental sustainability; and
• drive the Festival to become ever more professionally structured, with effective leadership and management, and building the confidence of our audiences and stakeholders.
Page 3
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 OCTOBER 2021
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
-
so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
-
that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.
This report was approved by the Trustees on 1 July 2022 and signed on their behalf by:
Lord Carter of Barnes
Trustee
Page 4
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HENLEY FESTIVAL TRUST
Opinion
We have audited the financial statements of The Henley Festival Trust (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 October 2021 set out on pages 9 to 30. 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 group's and of the parent charitable company's affairs as at 31 October 2021 and of the group's incoming resources and application of resources, including its income and expenditure for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Charities Act 2011.
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's or the parent charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the Trustees' report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and 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.
Page 5
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HENLEY FESTIVAL TRUST
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
-
the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
-
the parent charity has not kept sufficient accounting records; or
-
the parent charity 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, the trustees are responsible for the preparation of financial statements which 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 group's and the parent charity'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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
Page 6
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HENLEY FESTIVAL TRUST
Auditors' responsibilities for the audit of the financial statements
We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
We have been appointed as auditor under section 151 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 Auditors' 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 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• enquiring of management concerning actual and potential litigation and claims;
• performing analytical procedures to identify any unusual results that may indicate risks of material misstatement due to fraud;
• reading minutes of meetings;
• assessing any management override of controls by testing journal entries and other adjustments and reviewing accounting estimates for indications of potential bias;
• evaluating any transactions that are unusual or outside the normal course of business; and maintaining alert to any fraud risks throughout the audit
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 Auditors' report.
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 Auditors' 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
Page 7
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HENLEY FESTIVAL TRUST
Daniel Reid FCA (Senior statutory auditor) for and on behalf of Donald Reid Limited
Chartered Accountants Statutory Auditors
Prince Albert House 20 King Street Maidenhead Berkshire SL6 1DT 1 July 2022
Page 8
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 OCTOBER 2021
| Unrestricted funds Note 2021 £ Income and endowments from: Donations and legacies 2 90,771 Charitable activities 3 2,340,177 Other trading activities 4 290,657 Investments 5 70 Total income and endowments 2,721,675 Expenditure on: Other trading activities 4 184,798 Charitable activities 2,479,071 Total expenditure 8 2,663,869 Net income / (expenditure) before taxation 57,806 Taxation (439) Net income / (expenditure) before other recognised gains and losses 57,367 Net movement in funds 57,367 Reconciliation of funds: Total funds brought forward 103,012 Total funds carried forward 160,379 |
Restricted funds 2021 £ 161,073 - - - 161,073 - 161,073 161,073 - - - - - - |
Designated funds 2021 £ 75,000 - - - 75,000 - - - 75,000 - 75,000 75,000 - 75,000 |
Total funds 2021 £ 326,844 2,340,177 290,657 70 2,957,748 184,798 2,640,144 2,824,942 132,806 (439) 132,367 132,367 103,012 235,379 |
As restated Total funds 2020 £ 60,711 391,890 - 220 452,821 21,270 565,788 587,058 (134,237) 6,385 (127,852) (127,852) 230,864 103,012 |
|---|---|---|---|---|
The notes on pages 14 to 30 form part of these financial statements.
Page 9
THE HENLEY FESTIVAL TRUST (A charitable incorporated organisation) REGISTERED NUMBER: CEO10828
CONSOLIDATED BALANCE SHEET AS AT 31 OCTOBER 2021
| Note Fixed assets Tangible assets 12 Current assets Stocks 14 Debtors 15 Cash at bank and in hand Creditors:amounts falling due within one year 16 Net current assets Total assets less current liabilities Creditors:amounts falling due after more than one year 17 Net assets Charity Funds Designated funds 19 Unrestricted funds 19 Total funds |
£ - 435,840 396,435 832,275 (560,726) |
2021 £ 6,330 271,549 277,879 (42,500) 235,379 75,000 160,379 235,379 |
£ 8,067 578,996 1,034,069 1,621,132 (1,526,707) |
2020 £ 8,587 94,425 |
|---|---|---|---|---|
| 103,012 - |
||||
| 103,012 | ||||
| - 103,012 |
||||
| 103,012 |
The charity's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The Trustees consider that the charity is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the charity to obtain an audit for the year in question in accordance with section 476 of the Act. However, an audit is required in accordance with section 151 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees on 1 July 2022 and signed on their behalf, by:
Lord S Carter
The notes on pages 14 to 30 form part of these financial statements.
Page 10
THE HENLEY FESTIVAL TRUST (A charitable incorporated organisation) REGISTERED NUMBER: CEO10828
CHARITY BALANCE SHEET AS AT 31 OCTOBER 2021
| Note Fixed assets Tangible assets 12 Investments 13 Current assets Debtors: amounts falling due after more than one year 15 Debtors: amounts falling due within one year 15 Cash at bank and in hand Creditors:amounts falling due within one year 16 Net current assets Total assets less current liabilities Creditors:amounts falling due after more than one year 17 Net assets Charity Funds Designated funds Unrestricted funds Total funds |
£ 915,380 398,816 383,990 1,698,186 (544,382) |
2021 £ 6,330 10 6,340 1,153,804 1,160,144 (42,500) 1,117,644 75,000 1,042,644 1,117,644 |
£ 915,380 1,293,660 290,158 2,499,198 (1,520,649) |
2020 £ 8,587 10 |
|---|---|---|---|---|
| 8,597 978,549 |
||||
| 987,146 - |
||||
| 987,146 | ||||
| - 987,146 |
||||
| 987,146 |
The charity's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The Trustees consider that the charity is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the charity to obtain an audit for the year in question in accordance with section 476 of the Act. However, an audit is required in accordance with section 151 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
Page 11
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
CHARITY BALANCE SHEET (continued) AS AT 31 OCTOBER 2021
The financial statements were approved and authorised for issue by the Trustees on 1 July 2022 and signed on their behalf, by:
The notes on pages 14 to 30 form part of these financial statements.
Page 12
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2021
| Note Cash flows from operating activities Net cash (used in)/provided by operating activities 21 Cash flows from investing activities: Dividends, interest and rents from investments Purchase of tangible fixed assets Net cash provided by/(used in) investing activities Change in cash and cash equivalents in the year Cash and cash equivalents brought forward Cash and cash equivalents carried forward 22 |
2021 £ (637,704) 70 - 70 (637,634) 1,034,069 396,435 |
2020 £ 1,030,283 158 (5,805) (5,647) 1,024,636 9,433 1,034,069 |
|---|---|---|
The notes on pages 14 to 30 form part of these financial statements.
Page 13
(A charitable incorporated organisation)
THE HENLEY FESTIVAL TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
1. Accounting Policies
1.1 Basis of preparation of financial statements
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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Accounting Practice.
The Henley Festival Trust 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.
The Statement of Financial Activities (SOFA) and Balance Sheet consolidate the financial statements of the charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
No separate SOFA has been presented for the charity alone as permitted by section 408 of the Companies Act 2006.
1.2 Charity status
The charity is a charitable incorporated organisation. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the members of the charitable incorporated organisation have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.
1.3 Going concern
The Henley Festival did not take place in 2020 due to COVID-19 restrictions but was held successfully in September 2021 and in the coming year will revert to its usual time in July 2022. The charity has prepared forecasts for various scenarios over the next two years and the Trustees believe that with the ongoing support of its Patrons and careful financial management the charity will have sufficient reserves to continue to operate for the foreseeable future and that it is therefore appropriate to prepare the financial statements on a going concern basis.
1.4 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income from charitable activities is recognised at the fair value of the consideration received or receivable for tickets, parking, mooring and souvenir programme sales, together with sponsorship fees and concessions receivable and is shown net of VAT and sales taxes.
Income tax receivable in relation to donations received under Gift Aid is recognised at the time of donation.
Page 14
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
1. Accounting Policies (continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred in support of expenditure on the objects of the charity and include the management and administration of the charity's activities.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities and Governance costs are costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.
1.6 Basis of consolidation
The financial statements consolidate the accounts of The Henley Festival Trust and all of its subsidiary undertakings ('subsidiaries').
The charity has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own Income and expenditure account.
1.7 Tangible fixed assets and depreciation
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
- Plant and machinery 25% and 33% on reducing balance
Page 15
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
1. Accounting Policies (continued)
1.8 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/(losses) on investments’ in the Statement of Financial Activities.
Investments in subsidiaries are valued at cost less provision for impairment.
1.9 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
1.10 Operating leases
Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.
1.11 Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs.
1.12 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.13 Cash at bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.14 Liabilities and provisions
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
Page 16
(A charitable incorporated organisation)
THE HENLEY FESTIVAL TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
1. Accounting Policies (continued)
1.15 Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.16 Deferred taxation
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.
1.17 Pensions
The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund and to personal pension plans in respect of the year.
1.18 Fund accounting
General funds are unrestricted funds which 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.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Page 17
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
1. Accounting Policies (continued)
1.19 Critical accounting estimates and areas of judgment
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Critical areas of judgment:
The recognition of deferred tax assets is based upon whether it is more likely than not sufficient taxable profits will be available in the future. Recognition therefore involves judgement regarding the future financial performance of the particular legal entity in which the deferred tax asset has been recognised.
2. Income from donations and legacies
| Income from donations and legacies | ||||
|---|---|---|---|---|
| Unrestricted funds 2021 £ Donations and legacies 58,294 Grants - Government grants 32,477 Total donations and legacies 90,771 Total 2020 60,711 |
Restricted funds 2021 £ - 161,073 - 161,073 - |
Designated funds 2021 £ - 75,000 - 75,000 - |
Total funds 2021 £ 58,294 236,073 32,477 326,844 60,711 |
As restated Total funds 2020 £ 27,616 - 33,095 |
| 60,711 | ||||
Page 18
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
3. Income from charitable activities
| Unrestricted funds 2021 £ Charitable activities 2,340,177 Total 2020 391,890 |
Restricted funds 2021 £ - - |
Designated funds 2021 £ - - |
Total funds 2021 £ 2,340,177 391,890 |
As restated Total funds 2020 £ 391,890 |
|---|---|---|---|---|
The comparatives have been reanalysed on the face of the Consolidated Statement of Financial Activities in order to include £60,711 of income within donations and legacies rather than charitable activities in the prior period. The adjustment is a reanalysis within income only and does not have any effect on total reported income. The Trustees believe that this adjustment better enables the accounts to show a true and fair view.
4. Income from trading activities
| Unrestricted funds 2021 £ Catering and other trading income 287,993 Other income 2,664 290,657 Other trading expenses Catering and other trading expense 184,798 Net income/(expenditure) from trading activities 105,859 |
Restricted funds 2021 £ - - - - - |
Designated funds 2021 £ - - - - - |
Total funds 2021 £ 287,993 2,664 290,657 184,798 105,859 |
As restated Total funds 2020 £ - - - |
|---|---|---|---|---|
| 21,270 | ||||
| (21,270) |
Page 19
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
5. Investment income
| Investment income | ||||
|---|---|---|---|---|
| Unrestricted funds 2021 £ Bank interest 70 Total 2020 220 |
Restricted funds 2021 £ - - |
Designated funds 2021 £ - - |
Total funds 2021 £ 70 220 |
Total funds 2020 £ 220 |
6. Direct costs
| Artist costs Event costs Sponsor and fundraising support costs Marketing costs Freelance costs Total 2020 |
Charity £ 650,292 1,418,090 38,008 53,656 87,410 2,247,456 148,902 |
Total 2021 £ 650,292 1,418,090 38,008 53,656 87,410 2,247,456 148,902 |
As restated Total 2020 £ - 37,916 1,050 52,986 56,950 148,902 |
|---|---|---|---|
The comparatives have been reanalysed on the face of the Consolidated Statement of Financial Activities in order to include £17,619 of expenditure within catering and other trading activities rather than charitable activities in the prior period. The adjustment is a reanalysis within expenditure only and does not have any effect on total reported expenditure. The Trustees believe that this adjustment better enables the accounts to show a true and fair view.
Page 20
(A charitable incorporated organisation)
THE HENLEY FESTIVAL TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
7. Support costs
| Office costs Professional costs Finance costs Wages and salaries National insurance Pension cost Depreciation Total 2020 |
Activities £ 86,566 37,934 938 230,910 17,622 16,461 2,257 392,688 416,886 |
Total 2021 £ 86,566 37,934 938 230,910 17,622 16,461 2,257 392,688 416,886 |
As restated Total 2020 £ 83,621 34,013 - 249,211 24,992 21,966 3,083 416,886 |
|---|---|---|---|
The comparatives have been reanalysed on the face of the Consolidated Statement of Financial Activities in order to include £3,651 of expenditure within catering and other trading activities rather than charitable activities in the prior period. The adjustment is a reanalysis within expenditure only and does not have any effect on total reported expenditure. The Trustees believe that this adjustment better enables the accounts to show a true and fair view.
8. Analysis of Expenditure by expenditure type
| Expenditure on other trading activities Costs of raising funds Charity Total 2020 |
Staff costs Depreciation Other costs 2021 £ 2021 £ 2021 £ - - 184,798 - - 184,798 264,993 2,257 2,372,894 264,993 2,257 2,557,692 296,169 3,083 287,806 |
Total 2021 £ 184,798 184,798 2,640,144 2,824,942 587,058 |
As restated Total 2020 £ 21,270 |
|---|---|---|---|
| 21,270 565,788 |
|||
| 587,058 | |||
Page 21
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
9. Net income/(expenditure)
This is stated after charging:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets: | ||
| - owned by the charitable group | 2,257 | 3,083 |
| Auditors' remuneration - audit | 11,845 | 9,000 |
During the year, no Trustees received any remuneration (2020 - £NIL). During the year, no Trustees received any benefits in kind (2020 - £NIL). During the year, no Trustees received any reimbursement of expenses (2020 - £NIL).
10. Auditors' remuneration
The Auditor's remuneration amounts to an Audit fee of £11,845 (2020: £9,000) .
Page 22
(A charitable incorporated organisation)
THE HENLEY FESTIVAL TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
11. Staff costs
Staff costs were as follows:
| Wages and salaries Social security costs Other pension costs |
2021 £ 230,910 17,622 16,461 264,993 |
2020 £ 249,211 24,992 21,966 |
|---|---|---|
| 296,169 |
The average number of persons employed by the group during the year was as follows:
| 2021 | 2020 |
|---|---|
| No. | No. |
| 7 | 9 |
During the year, one employee and member of key management personnel received remuneration over £60,000 (2020: £60,000) .
During the year, key management personnel received remuneration of £139,157 (2020: £148,234) .
12. Tangible fixed assets
| Group Cost At 1 November 2020 and 31 October 2021 Depreciation At 1 November 2020 Charge for the year At 31 October 2021 Net book value At 31 October 2021 At 31 October 2020 |
Plant and machinery £ 16,412 |
|---|---|
| 7,825 2,257 |
|
| 10,082 | |
| 6,330 | |
| 8,587 |
Page 23
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
| Charity Cost At 1 November 2020 and 31 October 2021 Depreciation At 1 November 2020 Charge for the year At 31 October 2021 Net book value At 31 October 2021 At 31 October 2020 13. Fixed asset investments |
Plant and machinery £ 16,412 |
|---|---|
| 7,825 2,257 |
|
| 10,082 | |
| 6,330 | |
| 8,587 | |
| Shares in | ||
|---|---|---|
| group | ||
| undertakings | ||
| Charity | £ | |
| At 1 November 2020 and 31 October 2021 | 10 | |
| Charity investments comprise: | ||
| 2021 | 2020 | |
| £ | £ | |
| Investments in subsidiaries | 10 | 10 |
The only subsidiary of The Henley Festival Trust is Henley Festival Limited (company number 02284295). The Henley Festival Trust owns 100% of the share capital of Henley Festival Limited.
Page 24
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
14. Stocks
| Finished goods and goods for resale 15. Debtors Due after more than one year Amounts owed by group undertakings Due within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income Deferred tax asset (see note 18) |
2021 £ - 2021 £ - 2021 £ 124,629 - 275,096 10,000 26,115 435,840 |
Group 2020 £ 8,067 Group 2020 £ - Group 2020 £ 142,270 - 72,143 338,029 26,554 578,996 |
2021 £ - 2021 £ 915,380 2021 £ 109,096 283,386 6,334 - - 398,816 |
Charity |
|---|---|---|---|---|
| 2020 £ - |
||||
| Charity | ||||
| 2020 £ 915,380 |
||||
| Charity | ||||
| 2020 £ 13,250 897,702 54,679 328,029 - |
||||
| 1,293,660 |
16. Creditors: Amounts falling due within one year
| Bank loans and overdrafts Trade creditors Other taxation and social security Other creditors Accruals and deferred income |
2021 £ 7,500 175,890 35,686 81,198 260,452 560,726 |
Group 2020 £ - 240,645 230,605 8,057 1,047,400 1,526,707 |
2021 £ 7,500 171,232 30,200 81,198 254,252 544,382 |
Charity |
|---|---|---|---|---|
| 2020 £ - 240,545 230,605 8,057 1,041,442 |
||||
| 1,520,649 |
Page 25
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
17. Creditors: Amounts falling due after more than one year
| Group 2021 2020 £ £ Bank loans 42,500 - Creditors include amounts not wholly repayable within 5 years as follows: Group 2021 2020 £ £ Repayable by instalments 2,500 - |
2021 £ 42,500 2021 £ 2,500 |
Charity |
|---|---|---|
| 2020 £ - |
||
| Charity | ||
| 2020 £ - |
18. Deferred taxation
| Deferred taxation | ||||
|---|---|---|---|---|
| At beginning of year (Charge for)/released during the year (P&L) At end of year The deferred taxation balance is made up Tax losses carried forward |
Group 2020 £ 20,169 6,385 26,554 Group 2020 £ 26,554 |
2021 £ - - - 2021 £ - |
Charity | |
| 2021 £ 26,554 (439) 26,115 as follows: |
2020 £ - - |
|||
| - | ||||
| Charity | ||||
| 2021 £ 26,115 |
2020 £ - |
Page 26
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
19. Statement of funds
Statement of funds - current year
| Balance at 1 November 2020 £ Unrestricted funds General Funds 103,012 Designated funds Designated funds - Restricted funds Restricted Funds - Total of funds 103,012 Statement of funds - prior year Balance at 1 November 2019 £ General Funds 230,864 Restricted funds Total of funds 230,864 Summary of funds - current year Balance at 1 November 2020 £ General funds 103,012 Designated funds - 103,012 |
Income Expenditure £ £ 2,721,675 (2,664,308) 75,000 - 161,073 (161,073) 2,957,748 (2,825,381) Income Expenditure £ £ 452,821 (580,673) 452,821 (580,673) Income Expenditure £ £ 2,721,675 (2,664,308) 75,000 - 2,796,675 (2,664,308) |
Balance at 31 October 2021 £ 160,379 75,000 - 235,379 Balance at 31 October 2020 £ 103,012 103,012 Balance at 31 October 2021 £ 160,379 75,000 235,379 |
|---|---|---|
Page 27
(A charitable incorporated organisation)
THE HENLEY FESTIVAL TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
19. Statement of funds (continued)
Summary of funds - prior year
| Balance at 1 November 2019 £ General funds 230,864 230,864 |
Income Expenditure £ £ 452,821 (580,673) 452,821 (580,673) |
Balance at 31 October 2020 £ 103,012 |
|---|---|---|
| 103,012 |
Restricted fund
The restricted fund relates to grant income received from a government body which aims to support cultural organisations and charities which have been impacted by Covid 19. The income was granted in order to cover specific costs of the charity and the income and the costs that it related to have thus been treated as restricted.
Designated fund
The designated fund relates to grant income received from a government body which aims to support cultural organisations and charities which have been impacted by Covid 19. The income was provided by the government body in order to boost the reserves of the Charity to provide financial stability and help secure its future. There has been no condition made in respect of what these monies may be spent on, thus the Trustees have treated the income as designated rather than restricted.
20. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2021 £ Tangible fixed assets 6,330 Current assets 731,158 Creditors due within one year (560,724) Creditors due in more than one year (42,500) Provisions for liabilities and charges 26,115 160,379 |
Restricted funds Designated funds 2021 £ 2021 £ - - - 75,000 - - - - - - - 75,000 |
Total funds 2021 £ 6,330 806,158 (560,724) (42,500) 26,115 235,379 |
|---|---|---|
Page 28
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
20. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year
| Unrestricted funds 2020 £ Tangible fixed assets 8,587 Current assets 1,594,578 Creditors due within one year (1,526,707) Provisions for liabilities and charges 26,554 103,012 |
Restricted funds 2020 £ - - - - - |
Designated funds 2020 £ - - - - - |
Total funds 2020 £ 8,587 1,594,578 (1,526,707) 26,554 103,012 |
|---|---|---|---|
21. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/(expenditure) for the year (as per Statement of Financial Activities) Adjustment for: Depreciation charges Dividends, interest and rents from investments Decrease in stocks Decrease/(increase) in debtors (Decrease)/increase in creditors Taxation Net cash (used in)/provided by operating activities |
2021 £ 132,367 2,257 (70) 8,068 738,811 (1,519,576) 439 (637,704) |
Group |
|---|---|---|
| 2020 £ (127,852) 3,083 (158) 8,068 (150,252) 1,303,779 (6,385) |
||
| 1,030,283 |
22. Analysis of cash and cash equivalents
| Cash in hand Total |
2021 £ 396,435 396,435 |
Group |
|---|---|---|
| 2020 £ 1,034,069 |
||
| 1,034,069 |
Page 29
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
23. Pension commitments
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and to personal pension plans and amounted to £16,461 (2020: £21,966) .
Contributions totalling £1,245 (2020: £1,882) were payable to the fund at the balance sheet date and are included in creditors.
24. Related party transactions
At the balance sheet date, there is an amount of £283,386 (2020: £897,702) included in amounts owed by group undertakings due within one year, which is owed by Henley Festival Limited to the charity. There is also an amount of £915,380 (2020: £915,380) included in amounts owed by group undertakings due in more than one year which is owed by Henley Festival Limited to the charity.
During the year the charity received Patrons’ fees and donations totalling £15,000 from Trustees. During the year, legal fees of £28,500 were paid to a legal firm for which one of the Trustees acts as a consultant. Tickets were also purchased by Trustees and all transactions were conducted on an arm’s length basis.
Page 30