REGISTERED CHARITY NUMBER: 1177489
Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 March 2021
for Gloucester Culture Trust
Gloucester Culture Trust
Contents of the Financial Statements for the Year Ended 31 March 2021
| Page | |
|---|---|
| Legal and Administrative Information | 1 |
| Report of the Trustees | 2 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Notes to the Financial Statements | 7 to 11 |
Gloucester Culture Trust
Legal and Administrative Information for the Year Ended 31 March 2021
Trustees A. Cranston D. Potts S. Marston D. Renney N. Hopwood (Interim Chair) T. Attwood J. Fayter Cllr S. Morgan Charity number 1177489 Registered office Jolt, First Floor Kings House 27 St Aldate street Gloucester GL1 1RP Independent examiner iLex Accountancy Services Ltd 41 Brunswick Road Gloucester GL1 1JS Bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ
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Gloucester Culture Trust
Report of the Trustees
for the Year Ended 31 March 2021
The trustees present their report and financial statements for the year ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust's constitution , the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2016)
Charitable objects and activities
The trust revised its charitable objects by resolution on 10[th] September 2020.
The following objects shall be carried out for the public benefit In the City of Gloucester and the surrounding area:
- 1) To promote, improve and advance public appreciation of the arts, culture and heritage, in particular but not exclusively by:
a) Encouraging public participation in the arts, culture and creative practice through the provision of facilities and the facilitation and management of workshops and creative projects, and by the presentation of concerts, performances, exhibitions, festivals and events demonstrating work of artistic merit.
b) Supporting charities, arts, heritage and creative organisations and not for profit bodies and individuals engaged in the provision of artistic, creative, and cultural activities and events.
2) To advance education in the arts, culture, art and cultural history and heritage of the City of Gloucester, and in the skills and competencies necessary to develop successful creative public benefit enterprises by the provision of training, lectures, talks, workshops, arts and heritage projects, performances and exhibitions and by publishing and distributing publications.
3) To relieve those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage by assisting unestablished creative practitioners to become self-supporting through their work.
4) To further or benefit the residents of the City of Gloucester and the surrounding area, without distinction of sex, sexual orientation or race, or of political, religious or other opinions, by associating together the said residents and local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation and leisure time occupation with the objective of improving the conditions of life for the residents.
Nothing in this constitution shall authorise an application of the property of the CIO for the purposes which are not charitable.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.
Vision, mission and values
Gloucester Culture Trust’s vision is to put culture at the heart of Gloucester for the good of all. It’s mission is to connect, enable and champion culture, by shaping policy, advocating for change, facilitating opportunities and providing infrastructure support and capacity.
Gloucester Culture Trust has five core values:
It is creative, putting excellent arts, artists, heritage and creative practice at the heart of everything it does.
It is collaborative, focusing on achieving things that one organisation cannot deliver by itself.
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Gloucester Culture Trust
Report of the Trustees (Continued)
for the Year Ended 31 March 2021
It is diverse, aiming to reach everyone in Gloucester through its work and its open approach.
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It is future-facing, with a commitment to supporting young people and emerging creatives.
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It adds-value, by building capacity and bringing economic benefit to the city.
Financial review
Gloucester Culture Trust (GCT) remains a going concern, with grant funding secured from Arts Council England, Paul Hamlyn Foundation and Gloucester City Council that ensures the charity remains viable, despite the challenging operating environment brought about by the COVID-19 pandemic.
It is the policy of the trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months’ expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the trust’s current activities while consideration is given to ways in which additional funds may be raised. The trustees recognise aware that the current reserves are not at this level and that further work will be needed in the coming years to address this issue.
The trustees have assessed the major risks to which the trust is exposed, and are satisfied that systems are in place to mitigate this.
Structure, governance and management
The trustees who served during the year and up to the date of signature of the financial statements were:
A. Cranston D. Potts S. Marston D. Renney N. Hopwood (Interim Chair) T. Attwood J. Fayter Cllr S. Morgan
The Trustees are proud of the achievements of GCT this year, and recognise the teamwork from both the Board and the staff members that have enabled this to happen.
The trustees' report was approved by the Board of Trustees.
Neil Hopwood (Interim Chair) Dated: 4th January 2022
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Gloucester Culture Trust
Independent Examiner's Report to the Trustees
for the Year Ended 31 March 2021
I report to the trustees on my examination of the financial statements of Gloucester Culture Trust (the trust) for the year ended 31 March 2021.
Responsibilities and basis of report
As the trustees of the trust you are responsible for the presentation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the trust's financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the trust's gross income exceeded £250,000 your examiner must be a member of a body listed in the section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with the Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable to in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for the reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination, giving me cause to believe that in any material respect:
1) accounting records were not kept in respect of the trust as required by section 130 of the 2011 Act; or
2) the financial statements do not accord with those records: or
3) the financial statements 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 the report, in order to enable a proper understanding of the financial statements to be reached.
Holly Siddall AFA MIPA (ACCA) iLex Accountancy Services Ltd 41 Brunswick Road Gloucester GL1 1JS
4th January 2022
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Gloucester Culture Trust
Statement of Financial Activities
including Income and Expenditure account for the Year Ended 31 March 2021
| Notes Income from: Donations and legacies 3 Expenditure on: Charitable activities 4 Other 7 Total resources expensed Gross transfers between funds Net (expenditure)/income for the year/Net movement in funds Fund balances at 1 April 2020 Fund balances at 31 March 2021 |
Unrestricted funds 2021 Restricted funds 2021 Total 2021 £ £ £ 148,663 344,803 493,465 84,526 298,172 382,698 5,574 2,949 8,523 90,100 301,121 391,220 58,563 43,682 102,245 546 63,108 63,654 59,109 106,790 165,899 |
Unrestricted funds 2020 Restricted funds 2020 Total 2020 £ £ £ 250 329,693 329,943 2,303 267,051 269,354 982 2,943 3,925 3,285 269,994 273,279 (3,035) 59,699 56,664 3,581 3,409 6,990 546 63,108 63,654 |
|---|---|---|
The statement of financial activities include all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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Gloucester Culture Trust
for the Year Ended 31 March 2021
Balance Sheet
| Notes Fixed assets Tangible assets 8 Current assets Debtors 9 Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current assets Total assets less current liabilities Income funds Restricted funds 11 Unrestricted funds |
£ £ 11,146 57,501 104,418 161,920 (7,166) 154,754 165,899 106,790 59,109 165,899 2021 |
£ £ 16,555 32,851 26,088 58,939 (11,840) 47,099 63,654 63,108 546 63,654 2020 |
|---|---|---|
The financial statements were approved by the Board of Trustees on 4th January 2022 and were signed on its behalf by:
N. Hopwood (Interim Chair) Trustee
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Gloucester Culture Trust Notes to the Financial Statements for the Year Ended 31 March 2021 1. Accounting policies Charity Information
Gloucester Culture Trust is a charitable incorporated organisation registered with the Charity Commission in England & Wales.
The registered office is Jolt, First Floor King's House, 27 Aldate Street, Kings Square, Gloucester, GL1 1RP.
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1.1 Accounting convention
The financial statements have been prepared in accordance with the trust's governing document, the Charities Act 2011 and "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)" (as amended for accounting periods commencing from January 2016).
The trust is a Public Benefit Entity as defined by FRS102.
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The trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Updated Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations, but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Going concern At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in the furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes of the financial statements. 1.4 Incoming resources Income is recognised when the trust is legally entitled to it after performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. 1.5 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 settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditures headings. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets, less their residual values over their useful lives on the following bases: Fixtures and fittings 20% straight line Office Equipment 25% straight line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
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Gloucester Culture Trust Notes to the Financial Statements (continued) for the Year Ended 31 March 2021
1. Accounting policies (continued)
1.7 Impairment of fixed assets
At each reporting date, the trust reviews the carrying amounts of its tangible assets to determine whether there is an indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8 Cash and cash Equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts are shown within borrowings in current liabilities. 1.9 Financial Instruments The trust has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all it's financial instruments.
Financial instruments are recognised in the trust's balance sheet, when the trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at the transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans. are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present values of the future payments, discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the trust's contractual obligations expire, or are discharged, or cancelled.
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
1.11 Retirement benefits
Payments to defined contribution retirement benefit schemes are charges as an expense, as they fall due.
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Gloucester Culture Trust
Notes to the Financial Statements (continued) for the Year Ended 31 March 2021
2. Critical accounting estimates and judgements
In the application of the trust's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results many differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised; where the revision affects only that period, or in the period of the revision and future periods, where the revision affects both current and future periods.
3. Donations and legacies
| Grant funding Other For the year ended 31 March 2020 Supported by the following funders GLHF via GCC Paul Hamlyn Foundation Donated assets from GCC Arts Council Gloucester City Council Garfield Weston Gloucester Quays Barnwood Trust Kings House Thirty Percy Active Gloucestershire Gloucester County Council Gloucester Cathedral Other |
Unrestricted funds Restricted funds Total 2021 2021 2021 £ £ £ 148,663 344,803 493,465 0 0 0 148,663 344,803 493,465 250 329,693 151,868 151,868 10,000 127,000 137,000 - 75,000 25,385 100,385 26,518 8,050 34,568 25,000 25,000 16,000 16,000 4,000 4,000 7,145 - 7,145 5,000 - 5,000 10,000 10,000 2,500 2,500 - - - - 148,663 344,803 493,465 |
Total 2020 £ 329,693 250 329,943 329,943 217,494 100,000 12,199 - - - - - - - - - - 250 329,943 |
|---|---|---|
4. Charitable activities
| Staff costs Depreciation and impairment Freelance producer fees Demand Analysis consultant fees Marketing support Fundraising services Jolt costs Other Great Place costs Partners fees Festivals & Events Participation Other Creative Activities Other Talent Development Audience Participation Subcontractors Admin costs |
Charitable Expenditure 2021 £ 115,911 5,409 26,922 0 14,440 12,174 6,325 50,500 49,040 25,579 26,196 18,807 14,000 13,761 3,633 382,698 382,698 |
Charitable Expenditure 2020 £ 111,674 5,410 27,250 0 15,689 13,792 9,558 31,149 52,217 2,615 269,354 269,354 |
|---|---|---|
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Gloucester Culture Trust
Notes to the Financial Statements (continued) for the Year Ended 31 March 2021
| Analysis by fund Unrestricted funds Restricted funds For the year ended 31 March 2020 Unrestricted funds Restricted funds |
84,526 298,172 382,698 2,303 267,051 269,354 |
2,303 267,051 269,354 |
|---|---|---|
5. Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the trust during the year.
6. Employee Costs
Number of employees
The average monthly number of employees during the year was:
| The average monthly number of employees during the year was: Employment costs Wages and salaries Social security costs Other pension costs |
2021 Number 4 2021 £ 107,733 4,299 3,879 115,911 |
2020 Number 4 2020 £ 101,519 6,446 3,709 111,674 |
|---|---|---|
7. Other
| Professional fees Accountancy fees Insurance Financing costs Other expenditure For the year ended 31 March 2020 Tangible fixed assets Cost At 1 April 2020 Additions At 31 March 2021 Depreciation and impairment At 1 April 2020 Depreciation charged in the year At 31 March 2021 Carrying amount At 31 March 2021 At 31 March 2020 |
Unrestricted funds Restricted funds Total 2021 2021 2021 £ £ £ 446 2270 2716 1684 450 2134 731 0 731 64 0 64 2649 229 2878 5574 2949 8523 982 2943 Fixtures and fittings Office equipment Total £ £ £ 8574 14778 23352 - - - 8574 14778 23352 1715 5082 6797 1715 3695 5409 3430 8777 12206 5144 6002 11146 6859 9696 16555 |
Total 2020 £ 755 1620 1199 96 255 3925 3925 |
|---|---|---|
8. Tangible fixed assets
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Gloucester Culture Trust
Notes to the Financial Statements (continued) for the Year Ended 31 March 2021
| 9. Debtors Amounts falling due within one year: Trade debtors Other debtors 10. Creditors Amounts falling due within one year: Trade creditors Other creditors Accruals and deferred income |
2021 £ 2386.05 55115.39 57,501.44 2021 £ - - 7,166 7,166 |
2020 £ 32,662 189 32,851 2020 £ 7,864 687 3,289 11,840 |
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11. Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on the trust for specific purposes:
| Donated assets (via GCC) Great Place Funding (via GCC) Arts Council Gloucester City Council Gloucester Quays Barnwood Trust Kings House Thirty Percy Active Gloucestershire Gloucester County Council Gloucester Cathedral Paul Hamlyn Foundation |
Balance at 1 April 2020 Incoming resources Resources expended £ £ £ 11,848 0 3,695 0 151,868 150,100 25,385 25,660 8,050 6,340 16,000 17,120 4,000 4,239 - - - - 10,000 10,182 2,500 1,500 - - 51,260 127,000 85,979 63,108 344,803 304,815 |
Balance at 31 March 2021 £ 8,154 1,768 -275 1,710 -1,120 -239 - - -182 1,000 - 92,281 103,096 |
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GCC is the accountable body for the Great Place project and receives the grant income from the funder (National Lottery Heritage Fund) on behalf of all partners working on the project. GCT therefore receives Great Place grant income via GCC, by claiming back project expenditure it has incurred.
12. Analysis of net assets between funds
| Fund balances at 31 March 2020 are represented by: Tangible assets Current assets/(liabilities) |
Unrestricted funds 2021 Restricted funds 2021 Total 2021 £ £ £ 2,992 8,154 11,146 59,811 94,942 154,754 62,804 103,096 165,899 |
Unrestricted funds 2020 Restricted funds 2020 Total 2020 £ £ £ 4,707 11,848 16,555 -4,161 51,260 47,099 546 63,108 63,654 |
|---|---|---|
13. Related party transactions
There were two disclosable party transactions during the year. D. Potts is Chief Executive of The Music Works, who received funding through the Paul Hamlyn Foundation (PHF) grant (for the Gloucester Roundhouse Exchange project) of £3,104.50. T. Attwood is a Director of Your Next Move CIC, who also received funding through the PHF grant of £3,104.50. Gloucester City Council has nomination rights for one Trustee, which is taken by the Cabinet Member of Culture, who recuses themself when matters relating to the Council are considered.
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