**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
Page 1
**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.
Page 2
**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.
- It is future-facing, with a commitment to supporting young people and emerging creatives.
- 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
Page 3
**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
Page 4
**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.
Page 5
**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**
Page 6
**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.
**----- Start of picture text -----**
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.
**----- End of picture text -----**
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.
Page 7
**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.
Page 8
**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|
|---|---|---|
## **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|
|---|---|---|
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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