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2022-12-31-accounts

REGISTERED CHARITY NUMBER: 1174807

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 December 2022

for

Harwich Electric Palace Trust

JTF Chartered Certified Accountants 195 Main Road Dovercourt Harwich Essex CO12 3PH

Harwich Electric Palace Trust

Contents of the Financial Statements for the Year Ended 31 December 2022

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Cash Flow Statement 7
Notes to the Cash Flow Statement 8
Notes to the Financial Statements 9 to 15
Detailed Statement of Financial Activities 16 to 17

Harwich Electric Palace Trust

Report of the Trustees for the Year Ended 31 December 2022

The trustees present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charity's main aim is to preserve the Harwich Electric Palace cinema in terms of both the structure and its functioning as a working cinema.

Significant activities

The charity's main activity is the operation of the building as a cinema and theatre. The cinema re-opened in April 2022 after 4 years of major restoration work.

Public benefit

Through its subsidiary company, the charity provides a cinema and theatre for the small Essex town of Harwich. The charity also works to preserve the historic building for the benefit of future generations.

Grantmaking

The charity does not make grants to other institutions or individuals.

Volunteers

The charity relies on the support of around 40 volunteers whose roles cover managers, helpers, sales personnel, finance and trustees.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The cinema was closed from 2018 until its re-opening in April 2022 following a detailed project to complete a £1.7m programme of restoration and repair work. The work primarily consisted of repairs to the ceiling, the removal of asbestos, repairs to seating and a new heating system. The work programme was interrupted for several weeks due the impact of the Covid 19 pandemic, but the cinema successfully re-opened in April 2022, and continues to be open to the public.

Fundraising activities

Most of our funding comes from national organisations but many other regional and local bodies have assisted with grants and a loan facility. The major restoration project was completed in 2022, thanks to significant funding support from both the National Lottery Heritage Fund and Historic England.

The charity also runs live music and entertainment events to raise funds to cover the ongoing costs of maintaining the property.

FINANCIAL REVIEW

Financial position

At the end of the year, the charity had net assets in the sum of £108,260 and this also included grant funding from the main restoration project to support new community activities such as dementia and autism showings, and comedy and music events. Following the re-opening of the building in Spring 2022, there has been and will be a need to continue to maintain and replenish the charity's reserves through trading surpluses achieved by the charity's subsidiary company and other fundraising.

Principal funding sources

The charity has been substantially funded by the National Lottery Heritage Fund and Historic England and further funding has been provided since the end of the year. A total in the region of £1.7 million will have been received by the time the restoration project has been completed.

Page 1

Harwich Electric Palace Trust

Report of the Trustees for the Year Ended 31 December 2022

FINANCIAL REVIEW

Reserves policy

The trustees aim to hold reserves at a level to cover the costs of operating the charity for a period of three months plus an additional amount which is retained in case any urgent repairs are required which cannot be met from surpluses generated by its subsidiary company in the operation of the cinema. The trustees consider that the current level of funds are sufficient for this but that additional surpluses may need to be raised should we consider developing and maintaining the building and its archive assets further.

FUTURE PLANS

Further to the re-opening of the building in Spring 2022, the primary focus has been to work with grant funders to complete the linked activities related programme to broaden the appeal of the cinema to the local community. The charity continues to look to run a profitable underlying cinema operation and to raise funds to support both community events and heritage initiatives linked to the building.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is governed by its constitution adopted on July 2017 as amended by dated 22 September 2017.

Recruitment and appointment of new trustees

The charity undertook a Governance Review in 2022 via a professional business consultant and as a result appointed 4 new trustees with various different skills and experiences in terms of finance, fundraising and business and museum activities.

Organisational structure

The trustees (currently 12) formally meet every two months. Day to day matters are delegated to a number of the trustees, including the three directors of the charity's subsidiary company. The directors are also trustees of the charity.

Related parties

The charity undertakes the operation of the cinema through its subsidiary company, Electric Palace (Harwich) Limited

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1174807

Principal address

The Electric Palace Kings Quay Street Marine Parade Harwich Essex CO12 3ER

Page 2

Harwich Electric Palace Trust

Report of the Trustees for the Year Ended 31 December 2022

Trustees

C Crawford J C M Strachan D T Looser S Daish (resigned 18.10.22) A Rendell-Knights D Foster R J A Askew P Hartwell J Hewitt (appointed 18.10.22) R H Bench (appointed 20.9.22) A K Fullarton (appointed 20.9.22) D Garner (appointed 20.9.22) J Askew (appointed 1.9.22) (resigned 22.5.23)

Independent Examiner

P J T Frost JTF Chartered Certified Accountants 195 Main Road Dovercourt Harwich Essex CO12 3PH

Approved by order of the board of trustees on 20 September 2023 and signed on its behalf by:

A K Fullarton - Trustee

Page 3

Independent Examiner's Report to the Trustees of Harwich Electric Palace Trust

Independent examiner's report to the trustees of Harwich Electric Palace Trust

I report to the charity trustees on my examination of the accounts of Harwich Electric Palace Trust (the Trust) for the year ended 31 December 2022.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

P J T Frost

JTF Chartered Certified Accountants 195 Main Road Dovercourt Harwich Essex CO12 3PH

20 September 2023

Page 4

Harwich Electric Palace Trust

Statement of Financial Activities for the Year Ended 31 December 2022

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
2,941
Charitable activities
4
Preservation of the Electric Palace cinema
-
Other trading activities
3
25,114
Other income
429
Total
28,484
EXPENDITURE ON
Raising funds
5
12,180
Charitable activities
6
Preservation of the Electric Palace cinema
24,110
Total
36,290
NET INCOME/(EXPENDITURE)
(7,806)
RECONCILIATION OF FUNDS
Total funds brought forward
81,250
TOTAL FUNDS CARRIED FORWARD
73,444
Restricted
funds
£
-
197,483
-
-
197,483
-
209,931
209,931
(12,448)
47,264
34,816
31.12.22
31.12.21
Total
Total
funds
funds
£
£
2,941
2,957
197,483
97,213
25,114
-
429
1,716
225,967
101,886
12,180
-
234,041
124,422
246,221
124,422
(20,254)
(22,536)
128,514
151,050
108,260
128,514
31.12.22
31.12.21
Total
Total
funds
funds
£
£
2,941
2,957
197,483
97,213
25,114
-
429
1,716
225,967
101,886
12,180
-
234,041
124,422
246,221
124,422
(20,254)
(22,536)
128,514
151,050
108,260
128,514
97,213
-
1,716
101,886
-
124,422
124,422
(22,536)
151,050
128,514

The notes form part of these financial statements

Page 5

Harwich Electric Palace Trust

Balance Sheet 31 December 2022

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
11
2,915
Investments
12
100
3,015
CURRENT ASSETS
Debtors
13
42,164
Cash at bank
29,945
72,109
CREDITORS
Amounts falling due within one year
14
(1,680)
NET CURRENT ASSETS
70,429
TOTAL ASSETS LESS CURRENT
LIABILITIES
73,444
NET ASSETS
73,444
FUNDS
15
Unrestricted funds
Restricted funds
TOTAL FUNDS
Restricted
funds
£
-
-
-
-
34,816
34,816
-
34,816
34,816
34,816
31.12.22
Total
funds
£
2,915
100
3,015
42,164
64,761
106,925
(1,680)
105,245
108,260
108,260
73,444
34,816
108,260
31.12.21
Total
funds
£
2,192
100
2,292
38,063
89,275
127,338
(1,116)
126,222
128,514
128,514
81,250
47,264
128,514

The financial statements were approved by the Board of Trustees and authorised for issue on 20 September 2023 and were signed on its behalf by:

D T Looser - Trustee

A K Fullarton - Trustee

The notes form part of these financial statements

Page 6

Harwich Electric Palace Trust

Cash Flow Statement

for the Year Ended 31 December 2022

31.12.22 31.12.21
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 (23,706) 20,477
Net cash (used in)/provided by operating activities (23,706) 20,477
Cash flows from investing activities
Purchase of tangible fixed assets (808) (225)
Net cash used in investing activities (808) (225)
Change in cash and cash equivalents in
the reporting period (24,514) 20,252
Cash and cash equivalents at the
beginning of the reporting period 89,275 69,023
Cash and cash equivalents at the end of
the reporting period 64,761 89,275

The notes form part of these financial statements

Page 7

Harwich Electric Palace Trust

Notes to the Cash Flow Statement for the Year Ended 31 December 2022

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING
ACTIVITIES
31.12.22 31.12.21
£ £
Net expenditure for the reporting period (as per the Statement of
Financial Activities) (20,254) (22,536)
Adjustments for:
Depreciation charges 85 33
(Increase)/decrease in debtors (4,101) 42,674
Increase in creditors 564 306
Net cash (used in)/provided by operations (23,706) 20,477

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22 Cash flow At 31.12.22
£ £ £
Net cash
Cash at bank 89,275 (24,514) 64,761
89,275 (24,514) 64,761
Total 89,275 (24,514) 64,761

The notes form part of these financial statements

Page 8

Harwich Electric Palace Trust

Notes to the Financial Statements for the Year Ended 31 December 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Charitable activities

In the opinion of the Trustees, the charity has only one activity being the preservation of the Harwich Electric Palace cinema. In addition, all fund raising activities and governance matters, with the exception of the Independent Examiner's fees are dealt with by the Trustees and other volunteers at no cost to the charity. Therefore all support costs are considered to be in relation to the preservation of the Harwich Electric Palace cinema.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Equipment - 15% on cost

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

continued...

Page 9

Harwich Electric Palace Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

2.
DONATIONS AND LEGACIES
Subscriptions and donations
Gift aid
3.
OTHER TRADING ACTIVITIES
Fundraising events
Wedding income
Hire income
Membership income
Concert and show income
Advertising income
4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Grants
Preservation of the Electric Palace cinema
Grants received, included in the above, are as follows:
National Heritage Lottery Fund
Historic England
Harwich Town Council
Cause4 Heritage Compass
Grant for Education Officer
Young Film Programmers project
31.12.22
£
2,917
24
2,941
31.12.22
£
318
1,770
1,420
3,306
18,200
100
25,114
31.12.22
£
197,483
31.12.22
£
141,260
47,546
-
-
2,905
5,772
197,483
31.12.21
£
2,897
60
2,957
31.12.21
£
-
-
-
-
-
-
-
31.12.21
£
97,213
31.12.21
£
-
75,646
17,907
3,660
-
-
97,213

continued...

Page 10

Harwich Electric Palace Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

5. RAISING FUNDS

Fundraising events


Wedding costs
Film Hire
Entertainers' fees and expenses
6.
CHARITABLE ACTIVITIES COSTS
Preservation of the Electric Palace
cinema
7.
GRANTS PAYABLE
Preservation of the Electric Palace cinema
The total grants paid to institutions during the year w
Electric Palace (Harwich) Limited
8.
SUPPORT COSTS
Preservation of the Electric Palace cinema
Direct
Costs
£
188,800
as as follows:
Finance
£
61
31.12.22
£
2,609
6,256
3,315
12,180
Grant
funding of
activities
Support
(see note
costs (see
7)
note 8)
£
£
39,453
5,788
31.12.22
£
39,453
31.12.22
£
39,453
Governance
Other
costs
£
£
675
5,052
31.12.21 31.12.21
£
-
-
-
-
Totals
£
234,041
31.12.21
£
17,671
31.12.21
£
17,671
Totals
£
5,788

continued...

Page 11

Harwich Electric Palace Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2,957
Charitable activities
Preservation of the Electric Palace cinema
17,907
Other income
1,716
Total
22,580
EXPENDITURE ON
Charitable activities
Preservation of the Electric Palace cinema
92,380
NET INCOME/(EXPENDITURE)
(69,800)
RECONCILIATION OF FUNDS
Total funds brought forward
151,050
TOTAL FUNDS CARRIED FORWARD
81,250
Restricted
funds
£
-
79,306
-
79,306
32,042
47,264
-
47,264
Total
funds
£
2,957
97,213
1,716
101,886
124,422
(22,536)
151,050
128,514

continued...

Page 12

Harwich Electric Palace Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

11. TANGIBLE FIXED ASSETS

11. TANGIBLE FIXED ASSETS
Freehold
property Equipment Totals
£ £ £
COST
At 1 January 2022 2,000 65,965 67,965
Additions - 808 808
At 31 December 2022 2,000 66,773 68,773
DEPRECIATION
At 1 January 2022 - 65,773 65,773
Charge for year - 85 85
At 31 December 2022 - 65,858 65,858
NET BOOK VALUE
At 31 December 2022 2,000 915 2,915
At 31 December 2021 2,000 192 2,192
12. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
MARKET VALUE
At 1 January 2022 and 31 December 2022 100
NET BOOK VALUE
At 31 December 2022 100
At 31 December 2021 100
There were no investment assets outside the UK.
13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.22 31.12.21
£ £
Funds held by subsidiary 42,164 38,063

continued...

Page 13

Harwich Electric Palace Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Other creditors
15.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Restricted funds
Refurbishment project
William Freize Green Project
Cause4 Heritage Compass
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Restricted funds
Refurbishment project
William Freize Green Project
Cause4 Heritage Compass
Grant Education Officer
Young Film Programmers Project
TOTAL FUNDS
At 1.1.22
£
81,250
45,100
304
1,860
47,264
128,514
Incoming
resources
£
28,484
188,806
-
-
2,905
5,772
197,483
225,967
31.12.22
31.12.21
£
£
-
408
1,680
708
1,680
1,116
Net
movement
At
in funds
31.12.22
£
£
(7,806)
73,444
(10,284)
34,816
(304)
-
(1,860)
-
(12,448)
34,816
(20,254)
108,260
Resources
Movement
expended
in funds
£
£
(36,290)
(7,806)
(199,090)
(10,284)
(304)
(304)
(1,860)
(1,860)
(2,905)
-
(5,772)
-
(209,931)
(12,448)
(246,221)
(20,254)
31.12.21
£
31.12.21
£
408
708
1,116

continued...

Page 14

Harwich Electric Palace Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

15. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Restricted funds
Refurbishment project
William Freize Green Project
Cause4 Heritage Compass
TOTAL FUNDS
At 1.1.21
£
151,050
-
-
-
-
151,050
Net
movement
in funds
£
(69,800)
45,100
304
1,860
47,264
(22,536)
At
31.12.21
£
81,250
45,100
304
1,860
47,264
128,514

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Refurbishment project
William Freize Green Project
Cause4 Heritage Compass
TOTAL FUNDS
Incoming
resources
£
22,580
75,646
1,800
1,860
79,306
101,886
Resources
Movement
expended
in funds
£
£
(92,380)
(69,800)
(30,546)
45,100
(1,496)
304
-
1,860
(32,042)
47,264
(124,422)
(22,536)
Resources
Movement
expended
in funds
£
£
(92,380)
(69,800)
(30,546)
45,100
(1,496)
304
-
1,860
(32,042)
47,264
(124,422)
(22,536)
47,264
(22,536)

16. RELATED PARTY DISCLOSURES

The charity is provided with administration services by its subsidiary company. The amount charged in the year was in the sum of £7,200 (2021: £6,000).

Due to the refurbishment work undertaken in the previous year, the subsidiary company was not able to operate as a cinema and therefore the annual licence fee was waived by the charity for both 2022 and 2021.

Page 15

Harwich Electric Palace Trust

Detailed Statement of Financial Activities for the Year Ended 31 December 2022

31.12.22 31.12.21
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Subscriptions and donations 2,917 2,897
Gift aid 24 60
2,941 2,957
Other trading activities
Fundraising events 318 -
Wedding income 1,770 -
Hire income 1,420 -
Membership income 3,306 -
Concert and show income 18,200 -
Advertising income 100 -
25,114 -
Charitable activities
Grants 197,483 97,213
Other income
Storage re-charge 429 1,716
Total incoming resources 225,967 101,886
EXPENDITURE
Fundraising events
Wedding costs 2,609 -
Film Hire 6,256 -
Entertainers' fees and expenses 3,315 -
12,180 -
Charitable activities
Other operating leases 3,552 2,860
Licences and insurance 8,216 7,541
Postage and stationery 267 -
Advertising 2,372 -
Sundries 52 154
Repairs 162,386 52,204
Fire protection - 643
Administration fees 7,200 6,000
Consultancy - 112
Carried forward 184,045 69,514

This page does not form part of the statutory financial statements

Page 16

Harwich Electric Palace Trust

Detailed Statement of Financial Activities for the Year Ended 31 December 2022

31.12.22 31.12.21
£ £
Charitable activities
Brought forward 184,045 69,514
Contribution to Electric Palace (Harwich)
Limited - 35,000
William Freize-Green Project expenses - 1,496
Young film project costs 4,670 -
Plant and machinery 85 33
Grants to institutions 39,453 17,671
228,253 123,714
Support costs
Finance
Bank charges 61 -
Other
Sundries 675 -
Governance costs
Accountancy and legal fees 5,052 708
Total resources expended 246,221 124,422
Net expenditure (20,254) (22,536)

This page does not form part of the statutory financial statements

Page 17