**Report and Financial Statements for the year ended 31 December 2021**
## **for**
**Arts Factory Ltd (A company limited by guarantee)**
_**Company registration number 02491685 Charity number 1178430**_
## **Arts Factory Ltd**
## **Contents of the Financial Statements for the year ended 31 December 2021**
||Page|
|---|---|
|Charity and Company Information|1|
|Report of the Trustees|2 - 4|
|Independent Examiners' Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the financial statements|8 - 12|
## **Arts Factory Ltd**
## **Charity Information for the year ended 31 December 2021**
**Directors and Trustees** Mr M Bryan (Chair) Ms A Evans Mr B Triggs Mr L Moss Mr R Lines Ms A Love resigned 10 January 2022 **Charity Number** 1178430 **Company Number** 2491685 **Registered Office** Trerhondda The Strand Ferndale Rhondda Cynon Taff CF43 4LY **Accountants and Independent** Arian Accountants Limited **Examiners** 19 Sundew Close Cardiff CF5 2SE **Bankers** Barclays Bank plc
Page 1
## **Arts Factory Ltd**
## **Report of the Trustees for the year ended 31 December 2021**
The trustees are pleased to present their annual directors' report together with the financial statements of the charity for the year ending 31 December 2021 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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) (effective 1 January 2015).
## **Objectives and activities**
## _Objectives_
The objects of the charity are to provide or assist in the provision of social welfare facilities for recreation or other leisure time occupation by individuals who have need of such facilities by reason of their youth, age, infirmity or disability, financial hardship or social circumstances with the object of improving their conditions of life.
## _Activities_
The charity operates a Health and Wellbeing Centre at Trerhondda Chapel in the town centre of Ferndale in the upper Rhondda Fach. The centre runs various courses, clubs and groups for beneficiaries as well as a number of social business activities that both generate income and allow us to offer opportunities to people to train and upskill themselves through volunteering. The charity relies on earned income, grants, a service level agreement and donations to cover its operating costs.
The Trustees endeavour to encourage all members of the community to engage in our activities and programmes and this should enable them to change their lives.
## **Achievements**
Achievements and highlights of the year for Arts Factory include:
- We are proud to say that, despite 2021 being another year that was heavily impacted by the Covid pandemic, and where our ability to serve the community was curtailed at times due to the restrictions in place, we were one of the few community facilities that were open as often as the rules allowed, with the appropriate Covid risk assessments in place.
- 2021 also saw the growth of our staff team, with three 3 new members of staff taken on in the roles of Garden Coordinator, Garden Assistant and Warehouse Van Driver.
- Our Fareshare Cupboard Essential Parcels were constantly busy during 2021. During the year we delivered 1125 food parcels which helped to feed 1728 adults and 751 children.
- We had a visit from Mark Drakeford, First Minister of Wales, in April 2021 to look at what we have been doing at Arts Factory during the pandemic.
- Some of our staff and key volunteers were filmed by the BBC for a Hayley Pearce show called Virgin Voter, to show the work we were doing around food poverty and why people should be voting.
- We celebrated Volunteers Week in June and our Health & Wellbeing Coordinator was interviewed live on Rhondda Radio promoting our services.
- We worked in partnership with Aim Academy, Cambrian Village Trust and YEPS to deliver our Summer of Fun School Holiday programme.
- Our Graphic Design service has continued to grow from strength to strength during 2021 and sales exceeded budget figures.
- Factory Books has had a slow year and volunteers were still getting used to being able to mingle and be back at the workplace. Lots of our volunteers needed additional support around their mental health and the after effects of numerous lockdowns.
- Friendly Friday’s community Café was launched for people to pop in for a cuppa and a chat, a low cost and fun atmosphere.
- We were successful in gaining funding from the Welsh Government Kickstart initiative which enabled us to employ a Finance Assistant.
Page 2
## **Arts Factory Ltd**
## **Report of the Trustees (continued)**
- We launched Rhondda Fach Community Garden on 1[st] July 2021, and it was opened by the local Mayor for Rhondda Cynon Taff. Intergenerational work has commenced with the local primary schools. This project has gone from strength to strength and has involved lots of community activities such as litter picking, garden clearances, open days and partnership working with other groups.
- Active Inclusion new funding commenced on 1[st] November 2021 and will see the project continue until September 2022. There was a waiting list of participants for this new project.
- Barod are now offering a weekly drop-in service at Trerhondda.
- We were awarded the “Mayor of Rhondda Cynon Taff Community Award 2021” for our work in the community.
- We celebrated Welsh Charities Week with the limelight being shone on our volunteer team.
- We delivered Christmas Hampers to local primary schools for the families that were in need.
- We were fortunate to have funding to run a coach trip for staff, volunteers, and group members to the New Theatre in Cardiff to see the panto Aladdin.
## **Financial review**
Members of the management committee meet quarterly to review the financial position of the charity. As a result of this information they are confident in realistically reviewing and adjusting budgets. During the year funding continued to be received for the charity's main activities. We were fortunate to obtain funding from a large number of funders such as Pen y Cymoedd Windfarm with £14,647, Natural Resources Wales with £21,750 and various Interlink grants totalling £19,758. The Wales Council for Voluntary Action continued their support with a grant of £24,304.
It is the policy of the charity that the unrestricted reserves (excluding any designated funds) should be at least £75,000. At this level the trustees consider that they would be able to accommodate any fundamental funding changes. As at the balance sheet date the charity has met this objective as total unrestricted general reserves were £102,104.
## **Structure, governance and management**
The charity is constituted as a company limited by guarantee and is also a registered charity. The directors serve also as the trustees of the charity. Reference and administrative details are shown in the company information page. The directors have the power to appoint additional trustees.
## **Trustees' responsibilities in relation to the financial statements**
The charity trustees (who are also the directors of the Arts Factory Ltd for the purposes of company law) are responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.
In preparing the financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
Page 3
## **Arts Factory Ltd**
## **Report of the Trustees (continued)**
• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
In so far as the trustees are aware:
• there is no relevant information of which the charity's Independent Examiner is unaware; and
• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant information and to establish that the Independent Examiner is aware of that information.
Approval by order of the board of trustees
MH Bryan
_Director_
Page 4
## **Independent Examiner's Report to the Trustees of Arts Factory Ltd ("the Company")**
I report to the charity trustees on my examination of the accounts of Arts Factory Ltd for the year ended 31 December 2021.
## **Responsibilities and basis of report**
As the charity's trustees of the Company (and also it's directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ("the 2006 Act").
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ("the 2011 Act"). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
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:
(1) accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or (2) the accounts do not accord with those records; or
(3) the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
(4) the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for Accounting and Reporting by Charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
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.
Andrea L Davies ACA
9 May 2022
## **Chartered Accountant**
## _**Arian Accountants Limited**_
_**19 Sundew Close Cardiff CF5 2SE**_
Page 5
## **Arts Factory Ltd**
## **Statement of Financial Activities (incorporating the income and expenditure account) for the year ended 31 December 2021**
|Note
**Income**
Donations and legacies
3
_Income from charitable activities:_
Arts Factory operations
4
Investment income
**Total income**
**Expenditure**
_Expenditure on charitable activities:_
Arts Factory operations
5
**Total expenditure**
**Net income and net movement in funds for the year**
**Reconciliation of funds**
Total funds brought forward
Transfer between funds
**Total funds carried forward**|**Restricted**
**Funds**
**£**
**-**
**227,075**
**-**|**Unrestricted**
**Funds**
**£**
**13,592**
**245,444**
**10**
**259,046**
**181,534**
**181,534**
**77,512**
**281,488**
**(4,880)**
**354,120**|**2021**
**Total**
**£**
**13,592**
**472,519**
**10**
**486,121**
**409,870**
**409,870**
**76,251**
**313,127**
**-**
**389,378**|2020
Total
£
1,670
456,133
33|
|---|---|---|---|---|
||**227,075**|||457,836|
||**228,336**|||340,847|
||**228,336**|||340,847|
||**(1,261)**
**31,639**
**4,880**|||116,989
196,138
-|
||**35,258**|||313,127|
The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.
All income and expenditure derive from continuing activities.
## **The notes on pages 8 to 12 form part of these financial statements**
Page 6
## **Arts Factory Ltd**
## **Balance Sheet As at 31 December 2021**
|Note
**Fixed assets**
Tangible assets
8
**Current assets**
Debtors
9
Cash at Bank and in hand
**Current Liabilities**
Creditors: Amounts falling due within one year
10
**Net current (liabilities)/assets**
**Total assets less current liabilities**
Creditors: Amounts falling due after more than one year
11
**Net assets**
**The funds of the charity:**
Unrestricted income funds
Designated fund
12
General income fund
Restricted income funds
13
Capital grants funds
14
**Total charity funds**|**£**
**£**
**253,766**
**53,292**
**163,893**
**217,185**
**(33,491)**
**183,694**
**437,460**
**(46,332)**
**391,128**
**£**
**£**
**252,016**
**102,104**
**354,120**
**35,258**
**1,750**
**391,128**
**2021**|£
£
258,677
68,012
127,661
195,673
(77,790)
117,883
376,560
(54,933)
321,627
£
£
-
281,488
281,488
31,639
8,500
321,627
2020|£
£
258,677
68,012
127,661
195,673
(77,790)
117,883
376,560
(54,933)
321,627
£
£
-
281,488
281,488
31,639
8,500
321,627
2020|
|---|---|---|---|
|||||
||||321,627|
The directors consider that the company is entitled to exemption from the requirement to have an audit under the provisions of s.477 of the Companies Act 2006. Members have not required the company, under s.476 of the Companies Act 2006, to obtain an audit for the year ended 31 December 2021.
The directors acknowledge their responsibilities for:
(a) ensuring that the company keeps accounting records which comply with Sections 386 &387 of the Companies Act 2006 and
(b) preparing financial statements which give a true and fair view of the state of the affairs of the company as at 31 December 2021 and of its surplus or deficit for the year then ended in accordance with the requirements of ss.394 & 395 and which otherwise comply with the requirements of the Act, relating to the financial statements, so far as applicable to the company.
These financial statements, which have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 applicable to small companies were approved by the Trustees on 9 May 2022 and signed on its behalf. MH Bryan
……………………..
M Bryan
_Director_
**The notes on pages 8 to 12 form part of these financial statements**
Page 7
**Arts Factory Ltd**
## **Notes to the financial statements for the year ended 31 December 2021**
## **1 Accounting policies**
## **Basis of preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Arts Factory Ltd 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 note(s).
## **Income**
## _(i) donations and similar income_
Donations and similar income is recognised when received.
## _(ii) revenue grants_
Revenue grants are generally recognised in the period in which they are received.
_(iii) capital grants_
Capital grants are recognised as the corresponding expense is incurred.
_(iv) other income_
All other income is recognised in the period to which it relates.
## **Expenditure and irrecoverable VAT**
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:
- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
- Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the accountancy fees and costs linked to the strategic management of the charity.
## **Tangible fixed assets**
Fixed assets are stated in the balance sheet at cost less depreciation.
Depreciation is provided in order to write off the cost of fixed assets over their estimated useful lives in equal annual instalments, as follows :
|Motor Vehicles|25% on cost|
|---|---|
|Computer equipment|25% on cost|
|Tools and equipment|25% on cost|
## **Pension costs**
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are recognised in the statement of financial activities when due.
Page 8
## **Arts Factory Ltd**
## **Notes to the financial statements (continued) for the year ended 31 December 2021**
## **1 Accounting policies cont'd**
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor.
## **2 Legal status**
The Arts Factory is a company limited by guarantee and has no share capital.
## **3 Donations and legacies**
|Donations
**4**
**Income from charitable activities**
_Sales income_
Graphic design
Room rental
Book Factory
Other sundry income
_Support from sponsors and local authorities:_
Social Services Learning Disibility SLA
ICF renovation grant
Capital grant release *
Pen y Cymoedd revenue grant
WCVA Active Inclusion
RCT Coronavirus grants
Waterloo Foundation
Other grants received
_* see note 14_
**5**
**Analysis of expenditure on charitable activities**
_On charitable activities:_
Purchases and other direct costs
Employee costs
Premises costs
General office expenses
Interest paid
_On governance costs:_
Accountancy fees
Other professional costs|Restricted
£
-
-
Restricted
£
-
-
-
-
-
49,929
54,792
6,750
14,647
24,304
-
10,000
66,653
227,075
Restricted
£
112,066
105,700
-
10,570
-
228,336
-
-
228,336|Unrestricted
£
13,592|2021
£
13,592|2020
£
1,670|
|---|---|---|---|---|
|||13,592|13,592|1,670|
|||Unrestricted
£
199,119
9,134
16,689
329|2021
£
199,119
9,134
16,689
329|2020
£
142,626
6,217
19,124
78|
|||225,271
-
-
-
-
-
18,750
-
1,423|225,271
49,929
54,792
6,750
14,647
24,304
18,750
10,000
68,076|168,045
58,004
-
6,750
26,555
41,604
2,935
28,927
123,313|
|||245,444|472,519|456,133|
|||Unrestricted
£
80,990
58,611
19,910
17,548
1,981|2021
£
193,056
164,311
19,910
28,118
1,981|2020
£
161,379
133,876
19,511
20,843
2,988|
|||179,040
1,950
544|407,376
1,950
544|338,597
2,250
-|
|||181,534|409,870|340,847|
Page 9
## **Arts Factory Ltd**
## **Notes to the financial statements (continued) for the year ended 31 December 2021**
## **6 Net income for the year**
The net income for the year is stated after charging:
|Depreciation of tangible fixed assets:
owned by the charity
Accountancy fees|2021
£
7,478
1,950|2020
£
7,485
2,250|
|---|---|---|
- **7 Staffing and trustee remuneration**
|_Staff costs_
Wages and salaries
Social Security costs
Pension costs|2021
£
146,970
6,976
6,670
160,616|2020
£
125,817
2,965
4,191|
|---|---|---|
|||132,973|
During the year the average number of employees was 11 (2020: 9). No employee received employee benefits in excess of £60,000 (2020: Nil).
No remuneration was paid to any trustees during the year nor any expenses reimbursed (2020: £Nil).
|**8**
**Tangible fixed assets**
**COST**
As at 1 January 2021
Additions
Disposals
At 31 December 2021
**DEPRECIATION**
As at 1 January 2021
Charge for period
On Disposals
At 31 December 2021
**NET BOOK VALUE**
At 31 December 2021
At 31 December 2020|Land &
buildings
£
371,153
-
-
371,153
121,153
-
-
121,153
**250,000**
250,000|Tools &
equipment
£
-
2,567
-
2,567
-
641
-
641
**1,926**
-|Motor
vehicles
£
7,350
-
-
7,350
3,676
1,837
-
5,513
**1,837**
3,674|Computer
equipment
£
105,819
-
-
105,819
100,816
5,000
-
105,816
**3**
5,003|Total|
|---|---|---|---|---|---|
||||||£
484,322
2,567
-|
||||||486,889|
||||||225,645
7,478
-|
||||||233,123|
||||||**253,766**|
||||||258,677|
Page 10
## **Arts Factory Ltd**
## **Notes to the financial statements (continued) for the year ended 31 December 2021**
## **9 Debtors**
|Grants receivable
Trade debtors
Other debtors and prepayments
**Creditors: amounts falling due within one year**
Bank loans and overdrafts
Trade creditors
Taxes and social security
Other creditors
Accruals
**Creditors: amounts falling due after more than one year**
Bank loans
Other creditors|2021
£
18,466
34,826
-
53,292
2021
£
7,600
8,716
9,621
1,304
6,250
33,491
2021
£
46,332
-
46,332|2020
£
44,305
9,698
14,009|
|---|---|---|
|||68,012|
|||2020
£
6,600
52,356
4,157
1,470
13,207|
|||77,790|
|||2020
£
54,933
-|
|||54,933|
## **10 Creditors: amounts falling due within one year**
## **11 Creditors: amounts falling due after more than one year**
## **12 Designated funds**
|Tangible Fixed Assets fund|Balance at
New
beginning
designations
of year
£
£
-
252,744|Utilised/
released
£
(7,478)|Transfer t/f
capital grant
funds
£
6,750|Balance at
end of
year
£
252,016|
|---|---|---|---|---|
The tangible fixed assets fund represents the net book value of the charity's unrestricted tangible fixed assets. The fund has been created to recognise the fact that the tangible fixed assets are required for the day to day operations of the charity and are not available for other purposes or for general reserves.
Page 11
## **Arts Factory Ltd**
## **Notes to the financial statements (continued) for the year ended 31 December 2021**
## **13 Restricted income funds**
|Social Services Learning Disability SLA
Active Inclusion Grant
Arnold Clark Community fund
CFW Resiliance Fund
Community Capacity Grant: Dementia
ICF Reminiscence Fund
ICF renovation grant
ICF Dementia Grant 2020-21
ICF Dementia Grant Recovery & reconnect
Interlink Big Lunch Grant
Interlink Sydney Albert Fund
Interlink WG Volunteer Resilience Grant
Interlink Youth Grant
Interlink Kindness Grant
Interlink Winter Pressures Grant
Kickstart Grant
Millenium Stadium Grant fund
Moondance Foundation
NRW Rhondda Fach Garden Project
Pen y Cymoedd Windfarm Revenue Grant
Peoples First Grant
RCT Adult Changing Room Fund
RCT Foodshare Fund
RCT Parent & Toddler Grant
RCT Summer of Fun Grant
RCT Age Cymru Grant
RCT Youth grant
Waterloo Foundation
Capital Grant Release
**Total funds**
**14 Capital grants funds**
Balance at 1 January 2021
Income for the year
Expenditure for the year : release to income
Balance at 31 December 2021|Balance at
beginning
of year
£
-
-
-
1,839
1,602
3,389
-
-
-
-
-
-
-
-
-
-
1,365
9,670
(4,485)
-
9,800
-
500
-
-
-
-
7,959
-
31,639|Income
in year
£
49,929
24,304
1,000
-
-
-
54,792
4,878
6,025
250
1,680
8,300
343
1,500
7,685
2,511
-
-
21,750
14,647
-
4,000
-
993
3,900
500
1,338
10,000
6,750
227,075|Expenditure
in year
£
49,929
28,101
1,014
1,839
1,602
3,431
54,792
5,660
1,878
378
1,104
6,816
343
-
-
1,011
1,385
9,670
17,265
14,647
-
4,000
500.00
997
3,258
592
1,339
10,035
6,750
228,336
Pen y Cymoedd
£
5,000
-
(5,000)
-|Transfer t/f
unrestricted
funds
£
-
3,797
14
-
-
42
-
782
-
128
-
-
-
-
-
-
20
-
-
-
-
-
-
4
-
92
1
-
-
4,880
Coalfields
£
3,500
-
(1,750)
1,750|Balance at
end of
year
£
-
-
-
-
-
-
-
-
4,147
-
576
1,484
-
1,500
7,685
1,500
-
-
-
-
9,800
-
-
-
642
-
-
7,924
-|
|---|---|---|---|---|---|
||||||35,258|
||||||Total
£
8,500
-
(6,750)|
||||||1,750|
## **15 Analysis of net assets between funds**
|Unrestricted funds
Designated funds
General income fund
Restricted income funds
Restricted capital grant funds
**Total funds**|Tangible
fixed assets
£
252,016
-
-
1,750
253,766|Net current
assets
£
-
148,436
35,258
-
183,694|Long term
liabilities
£
-
(46,332)
-
-
(46,332)|Total
£
252,016
102,104
35,258
1,750|
|---|---|---|---|---|
|||||391,128|
Page 12