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 2022
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 - 10 |
| Consolidated balance sheet | 10 |
| Charity balance sheet | 11 - 12 |
| Consolidated statement of cash flows | 13 |
| Notes to the financial statements | 14 - 31 |
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 2022
Trustees
Lord Carter CBE 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, 20 King Street, Maidenhead , Berkshire, SL6 1DT
Bankers
Lloyds Bank plc, 25 Gresham Street, London, EC2V 7HN
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 2022
The Trustees present their annual report together with the audited financial statements of the The Henley Festival Trust for the year 1 November 2021 to 31 October 2022. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document 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 (FRS102) (effective 1 January 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 both 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-onThames 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
The charity marked its 40th anniversary with a very successful Festival in 2022. The new charitable initiative, RISE, was launched, with the aim of inspiring and supporting the next generation of talented performers and technicians hoping to work in the creative arts industry.
Financial review
The charity recorded a net income before taxation of £366,521 (2021: £132,806) , which was assisted with grant income and reduced VAT rates following COVID-19. This takes reserves to £586,188 (2021: £235,379) .
Page 2
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 OCTOBER 2022
The Trustees are committed to maintaining sufficient reserves to ensure that the charity can continue to promote its aims within the local community and support emerging talent more widely, and have set a target to maintain unrestricted funds between £250,000 - £400,000. The healthy net income recorded in 2022 has taken reserves above this level, and the Trustees are pleased to have strong reserves at this time.
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
The aim for this and future years is to build upon the success of the 40th anniversary Festival held in 2022 and 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;
• further develop and nurture the next generation of creative talent through the new charitable initiative, RISE, which was successfully launched in the 40th anniversary year, by creating more opportunities for 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.
Going Concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
Page 3
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 OCTOBER 2022
Trustees' responsibilities statement
The Trustees (who are also directors of The Henley Festival Trust 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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
-
make judgments 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 group will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
Auditors
The auditors, Donald Reid Limited, have indicated their willingness to continue in office. The Designated Trustees will propose a motion re-appointing the auditors at a meeting of the Trustees.
This report was approved by the Trustees on 21 July 2023 and signed on their behalf by:
Lord Carter CBE
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 2022 set out on pages 9 to 31. 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 2022 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:
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the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
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the parent charity has not kept sufficient accounting records; or
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the parent charity financial statements are not in agreement with the accounting records and returns; or
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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
(A charitable incorporated organisation)
THE HENLEY FESTIVAL TRUST
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 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
Jacqui Williams (Senior statutory auditor) for and on behalf of Donald Reid Limited
Chartered Accountants Statutory Auditors 20 King Street Maidenhead Berkshire SL6 1DT 21 July 2023
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 2022
| Unrestricted funds Note 2022 £ Income and endowments from: Donations and legacies 2 7,087 Charitable activities 3 2,939,724 Other trading activities 4 1,049,193 Investments 5 2 Total income and endowments 3,996,006 Expenditure on: Other trading activities 4 691,917 Charitable activities 3,012,568 Total expenditure 8 3,704,485 Net income before taxation 291,521 Taxation (15,712) Net income before other recognised gains and losses 275,809 Net movement in funds 275,809 Reconciliation of funds: Total funds brought forward 160,379 Total funds carried forward 436,188 |
Restricted funds 2022 £ 145,346 - - - 145,346 - 145,346 145,346 - - - - - - |
Designated funds 2022 £ 75,000 - - - 75,000 - - - 75,000 - 75,000 75,000 75,000 150,000 |
Total funds 2022 £ 227,433 2,939,724 1,049,193 2 4,216,352 691,917 3,157,914 3,849,831 366,521 (15,712) 350,809 350,809 235,379 586,188 |
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 |
|---|---|---|---|---|
The notes on pages 14 to 31 form part of these financial statements.
Page 9
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
CONSOLIDATED BALANCE SHEET AS AT 31 OCTOBER 2022
| Note Fixed assets Tangible assets 12 Current assets Debtors 14 Cash at bank and in hand Creditors:amounts falling due within one year 15 Net current assets Total assets less current liabilities Creditors:amounts falling due after more than one year 16 Net assets Charity Funds Designated funds 18 Unrestricted funds 18 Total funds |
£ 378,722 629,475 1,008,197 (392,516) |
2022 £ 4,674 615,681 620,355 (34,167) 586,188 150,000 436,188 586,188 |
£ 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 |
|---|---|---|---|---|
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 21 July 2023 and signed on their behalf, by:
Lord Carter CBE
The notes on pages 14 to 31 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 2022
| Note Fixed assets Tangible assets 12 Investments 13 Current assets Debtors: amounts falling due after more than one year 14 Debtors: amounts falling due within one year 14 Cash at bank and in hand Creditors:amounts falling due within one year 15 Net current assets Total assets less current liabilities Creditors:amounts falling due after more than one year 16 Net assets Charity Funds Designated funds Unrestricted funds Total funds |
£ 915,380 283,991 601,809 1,801,180 (378,745) |
2022 £ 4,674 10 4,684 1,422,435 1,427,119 (34,167) 1,392,952 150,000 1,242,952 1,392,952 |
£ 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 |
|---|---|---|---|---|
Page 11
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
CHARITY BALANCE SHEET (continued) AS AT 31 OCTOBER 2022
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 21 July 2023 and signed on their behalf, by:
Lord Carter CBE
The notes on pages 14 to 31 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 2022
| Note Cash flows from operating activities Net cash provided by/(used in) operating activities 20 Cash flows from investing activities: Dividends, interest and rents from investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents brought forward Cash and cash equivalents carried forward 21 The notes on pages 14 to 31 form part of these financial statements. |
2022 £ 233,038 2 2 233,040 396,435 629,475 |
2021 £ (637,704) 70 70 (637,634) 1,034,069 396,435 |
|---|---|---|
Page 13
(A charitable incorporated organisation)
THE HENLEY FESTIVAL TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
1. Accounting Policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
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 charity has prepared forecasts for 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.
Page 14
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
1. Accounting Policies (continued)
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.
Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
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.
Page 15
(A charitable incorporated organisation)
THE HENLEY FESTIVAL TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
1. Accounting Policies (continued)
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
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 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.
Page 16
(A charitable incorporated organisation)
THE HENLEY FESTIVAL TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
1. Accounting Policies (continued)
1.12 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.
1.13 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.
1.14 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.
1.15 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.
1.16 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.
Page 17
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
1. Accounting Policies (continued)
1.17 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.
1.18 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.
Page 18
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
2. Income from donations and legacies
| Income from donations and legacies | ||||
|---|---|---|---|---|
| Unrestricted funds 2022 £ Donations and legacies 6,566 Grants - Government grants 521 Total donations and legacies 7,087 Total 2021 90,771 |
Restricted funds 2022 £ - 145,346 - 145,346 161,073 |
Designated funds 2022 £ - 75,000 - 75,000 75,000 |
Total funds 2022 £ 6,566 220,346 521 227,433 326,844 |
Total funds 2021 £ 58,294 236,073 32,477 |
| 326,844 | ||||
3. Income from charitable activities
| Unrestricted funds 2022 £ Charitable activities 2,939,724 Total 2021 2,340,177 |
Restricted funds 2022 £ - - |
Designated funds 2022 £ - - |
Total funds 2022 £ 2,939,724 2,340,177 |
Total funds 2021 £ 2,340,177 |
|---|---|---|---|---|
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THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
| 4. Income from trading activities Unrestricted funds 2022 £ Catering and other trading income 1,049,193 1,049,193 Other trading expenses Catering and hospitality costs 680,481 Support costs 11,436 691,917 Net income from trading activities 357,276 5. Investment income Unrestricted funds 2022 £ Bank interest 2 Total 2021 70 |
Restricted funds 2022 £ - - - - - - Restricted funds 2022 £ - - |
Designated funds 2022 £ - - - - - - Designated funds 2022 £ - - |
Total funds 2022 £ 1,049,193 1,049,193 680,481 11,436 691,917 357,276 Total funds 2022 £ 2 70 |
Total funds 2021 £ 290,657 290,657 |
|---|---|---|---|---|
| - 184,798 184,798 |
||||
| 105,859 | ||||
| Total funds 2021 £ 70 |
||||
Page 20
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
6. Direct costs
| Artist costs Event costs Sponsor and fundraising support costs Marketing costs Freelance costs Total 2021 |
Charity £ 909,856 1,602,937 43,194 107,566 123,300 2,786,853 2,247,456 |
Total 2022 £ 909,856 1,602,937 43,194 107,566 123,300 2,786,853 2,247,456 |
Total 2021 £ 650,292 1,418,090 38,008 53,656 87,410 |
|---|---|---|---|
| 2,247,456 | |||
7. Support costs
| Office costs Professional costs Finance costs Wages and salaries National insurance Pension cost Depreciation Total 2021 |
Activities £ 107,062 32,347 1,214 192,254 10,060 26,468 1,656 371,061 392,688 |
Total 2022 £ 107,062 32,347 1,214 192,254 10,060 26,468 1,656 371,061 392,688 |
Total 2021 £ 86,566 37,934 938 230,910 17,622 16,461 2,257 |
|---|---|---|---|
| 392,688 | |||
Page 21
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
8. Analysis of Expenditure by expenditure type
| Expenditure on other trading activities Costs of raising funds Charity Total 2021 |
Staff costs Depreciation Other costs 2022 £ 2022 £ 2022 £ - - 691,917 - - 691,917 228,782 1,656 2,927,476 228,782 1,656 3,619,393 264,993 2,257 2,557,692 |
Total 2022 £ 691,917 691,917 3,157,914 3,849,831 2,824,942 |
Total 2021 £ 184,798 |
|---|---|---|---|
| 184,798 2,640,144 |
|||
| 2,824,942 | |||
9. Net income/(expenditure)
This is stated after charging:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets: | ||
| - owned by the charitable group | 1,656 | 2,257 |
| Auditors' remuneration - audit | 9,000 | 11,845 |
During the year, no Trustees received any remuneration (2021 - £NIL). During the year, no Trustees received any benefits in kind (2021 - £NIL). During the year, no Trustees received any reimbursement of expenses (2021 - £NIL).
10. Auditors' remuneration
The Auditor's remuneration amounts to an Audit fee of £9,000 (2021: £11,845) .
Page 22
(A charitable incorporated organisation)
THE HENLEY FESTIVAL TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
11. Staff costs
Staff costs were as follows:
| Wages and salaries Social security costs Other pension costs |
2022 £ 192,254 10,060 26,468 228,782 |
2021 £ 230,910 17,622 16,461 |
|---|---|---|
| 264,993 |
The average number of persons employed by the group during the year was as follows:
| 2022 | 2021 |
|---|---|
| No. | No. |
| 16 | 7 |
During the year, one employee and member of key management personnel received remuneration over £60,000 (2021: £60,000) .
During the year, key management personnel received remuneration of £126,303 (2021: £139,157) .
12. Tangible fixed assets
| Group Cost At 1 November 2021 and 31 October 2022 Depreciation At 1 November 2021 Charge for the year At 31 October 2022 Net book value At 31 October 2022 At 31 October 2021 |
Plant and machinery £ 16,412 10,082 1,656 11,738 4,674 6,330 |
|---|---|
Page 23
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
| Charity Cost At 1 November 2021 and 31 October 2022 Depreciation At 1 November 2021 Charge for the year At 31 October 2022 Net book value At 31 October 2022 At 31 October 2021 13. Fixed asset investments Charity At 1 November 2021 and 31 October 2022 Charity investments comprise: 2022 £ Investments in subsidiaries 10 |
Plant and machinery £ 16,412 10,082 1,656 11,738 4,674 6,330 Shares in group undertakings £ 10 2021 £ 10 |
Plant and machinery £ 16,412 10,082 1,656 11,738 4,674 6,330 Shares in group undertakings £ 10 2021 £ 10 |
|---|---|---|
| 2021 £ 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 2022
14. Debtors
| 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 17) |
Group 2021 £ - Group 2021 £ 124,629 - 275,096 10,000 26,115 435,840 |
2022 £ 915,380 2022 £ 12,150 226,826 25,015 20,000 - 283,991 |
Charity | |
| 2022 £ - |
2021 £ 915,380 |
|||
| Charity | ||||
| 2022 £ 14,310 - 334,009 20,000 10,403 378,722 |
2021 £ 109,096 283,386 6,334 - - |
|||
| 398,816 |
15. Creditors: Amounts falling due within one year
| Bank loans and overdrafts Trade creditors Other taxation and social security Other creditors Accruals and deferred income |
Group 2021 £ 7,500 175,890 35,686 81,198 260,452 560,726 |
2022 £ 10,000 83,890 6,480 26,501 251,874 378,745 |
Charity | |
|---|---|---|---|---|
| 2022 £ 10,000 83,890 11,141 26,501 260,984 392,516 |
2021 £ 7,500 171,232 30,200 81,198 254,252 |
|||
| 544,382 |
Page 25
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
16. Creditors: Amounts falling due after more than one year
| Group 2022 2021 £ £ Bank loans 34,167 42,500 Creditors include amounts not wholly repayable within 5 years as follows: Group 2022 2021 £ £ Repayable by instalments - 2,500 |
2022 £ 34,167 2022 £ - |
Charity |
|---|---|---|
| 2021 £ 42,500 |
||
| Charity | ||
| 2021 £ 2,500 |
17. 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 2021 £ 26,554 (439) 26,115 Group 2021 £ 26,115 |
2022 £ - - - 2022 £ - |
Charity | |
| 2022 £ 26,115 (15,712) 10,403 as follows: |
2021 £ - - |
|||
| - | ||||
| Charity | ||||
| 2022 £ 10,403 |
2021 £ - |
Page 26
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
18. Statement of funds
Statement of funds - current year
| Balance at 1 November 2021 £ Unrestricted funds General Funds 160,379 Designated funds Designated funds 75,000 Restricted funds Restricted Funds - Total of funds 235,379 Statement of funds - prior year Balance at 1 November 2020 £ General Funds 103,012 Designated funds - Restricted funds Restricted Funds - Total of funds 103,012 |
Income Expenditure £ £ 3,996,006 (3,720,197) 75,000 - 145,346 (145,346) 4,216,352 (3,865,543) Income Expenditure £ £ 2,721,675 (2,664,308) 75,000 - 161,073 (161,073) 2,957,748 (2,825,381) |
Balance at 31 October 2022 £ 436,188 |
|---|---|---|
| 150,000 | ||
| - | ||
| 586,188 | ||
| Balance at 31 October 2021 £ 160,379 |
||
| 75,000 | ||
| - | ||
| 235,379 |
Page 27
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
Summary of funds - current year
| Balance at 1 November 2021 £ General funds 160,379 Designated funds 75,000 Restricted funds - 235,379 Summary of funds - prior year Balance at 1 November 2020 £ General funds 103,012 Endowment funds - Restricted funds - 103,012 |
Income Expenditure £ £ 3,996,006 (3,720,197) 75,000 - 145,346 (145,346) 4,216,352 (3,865,543) Income Expenditure £ £ 2,721,675 (2,664,308) 75,000 - 161,073 (161,073) 2,957,748 (2,825,381) |
Balance at 31 October 2022 £ 436,188 150,000 - |
|---|---|---|
| 586,188 | ||
| Balance at 31 October 2021 £ 160,379 75,000 - |
||
| 235,379 |
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.
Page 28
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
19. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Analysis of net assets between funds - current year | ||||
|---|---|---|---|---|
| Unrestricted funds 2022 £ Tangible fixed assets 4,674 Current assets 847,792 Creditors due within one year (392,514) Creditors due in more than one year (34,167) Provisions for liabilities and charges 10,403 436,188 Analysis of net assets between funds - prior 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 2022 £ - - - - - - Restricted funds 2021 £ - - - - - - |
Designated funds 2022 £ - 150,000 - - - 150,000 Designated funds 2021 £ - 75,000 - - - 75,000 |
Total funds 2022 £ 4,674 997,792 (392,514) (34,167) 10,403 586,188 Total funds 2021 £ 6,330 806,158 (560,724) (42,500) 26,115 235,379 |
|
20. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income for the year (as per Statement of Financial Activities) Adjustment for: Depreciation charges Dividends, interest and rents from investments Decrease in stocks Decrease in debtors Decrease in creditors Taxation Net cash provided by/(used in) operating activities |
2022 £ 350,809 1,656 (2) - 41,408 (176,545) 15,712 233,038 |
Group 2021 £ 132,367 2,257 (70) 8,068 738,811 (1,519,576) 439 |
|---|---|---|
| (637,704) |
Page 29
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
21. Analysis of cash and cash equivalents
| Analysis of cash and cash equivalents | ||
|---|---|---|
| Cash in hand Total |
2022 £ 629,475 629,475 |
Group |
| 2021 £ 396,435 |
||
| 396,435 |
Page 30
THE HENLEY FESTIVAL TRUST
(A charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
22. 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 £26,468 (2021: £16,461) .
Contributions totalling £1,234 (2021: £1,245) were payable to the fund at the balance sheet date and are included in creditors.
23. Related party transactions
At the balance sheet date, there is an amount of £226,826 (2021: £283,386) 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 (2021: £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 £9,000 (2021: £15,000) from Trustees. During the year, legal fees of £28,000 (2021: £28,500) were paid to a legal firm for which one of the Trustees acts as a consultant, and sponsorship totalling £4,000 (2021: £Nil) was receveid from that firm. Tickets and catering were also purchased by Trustees and all transactions were conducted on an arm’s length basis.
Page 31