2024-03-31-accounts - Arts Factory Ltd

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Report and Financial Statements

for the 15 months ended 31 March 2024

for

Arts Factory Ltd

Company registration number 02491685 Charity number 1178430

Arts Factory Ltd

Contents of the Financial Statements for the 15 months ended 31 March 2024

	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 15 months ended 31 March 2024

Directors and Trustees Mr M Bryan (Chair) Ms A Evans Mr B Triggs Mr L Moss Mr R Lines Mr S Cranston appointed 22 April 2024 Ms M Evans appointed 22 April 2024 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 15 months ended 31 March 2024

The trustees are pleased to present their annual directors' report together with the financial statements of the charity for the 15 months ending 31 March 2024 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 several social business activities that both generate income and allow us to offer opportunities to people to train and upskill themselves through volunteering.

It also runs a garden project in partnership with Sunrise Community Garden called the Rhondda Fach Community Garden which allows volunteers to upskill themselves and improve their mental health and wellbeing in the outdoors.

Maerdy Community Centre is also now operated by Arts Factory as a community resource. It is a facility for both the community and local businesses and will help regenerate the top of the Rhondda Fach. There will be volunteer opportunities, community activities, a café and rental space available for long and short-term tenants.

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:

Two volunteer Awards Ceremonies were held to recognise the good work they do for Arts Factory.
All of the staff team and some key tenants received Fire Safety training, so they are more confident in the use of our buildings.
During the period we delivered food parcels which helped to feed over 2000 people as part of our partnership project with Fareshare Cymru to deliver Cupboard Essential packs.
We celebrated World Mental Health Day within our Health & Wellbeing groups.
Our annual volunteer BBQ was held at our new site in Maerdy.
The Rhondda Fach Community Garden had a summer open day which was well attended.
Key staff members were involved in branding workshops to change our brand as part of the celebration event planned for April 2024.
We helped celebrate the opening of our first tenant at Maerdy Community Centre, Dantyllew CIC.
We had a film made to promote the Rhondda Fach Community Garden project.

Page 2

Arts Factory Ltd

Report of the Trustees (continued)

Volunteers worked in the community of Maerdy putting up Christmas trees along the main thoroughfare.
Several staff members and volunteers contributed to the Welsh Commissioners Report and were invited to the launch event at the Senedd in January 2024.
Our Graphic Design service has continued to grow from strength to strength.
The Rhondda Fach Community Garden has continued to expand and plans are in place to enhance the project further from April 2024 with a community grass cutting service and an expanded vegetable provision.
Our Cost-of-Living Project has engaged with over 200 people to help them with crisis, food, debt, housing, mental health etc.
Our project in partnership with Timecentres is underway at Maerdy using community bingo sessions to encourage a community connection.
Our CEO is part of the Welsh Government Economy Meetings with the Minister to help influence and inform on Third Sector work.
We held a staff planning session in January 2024 which set clear objectives for the coming year.
We operated Warm Hubs during the period which were well attended, we also gave out warm packs to people who needed them.
We delivered Christmas Hampers to local primary schools for families that were in need.
We took a coach of 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. The Lottery supported several of the charity’s projects with funds totalling £165,102, WCVA (£41,394) and RCT Council (£56,607) also continued their support and the charity received £259,119 from the Welsh Government towards the refurbishment of Trerhondda Chapel. The charity also received a number of other grants and donations.

It is the policy of the charity that unrestricted liquid reserves held by the charity should be at least £30,000, representing approximately a quarter of ongoing annual overhead costs. At this level the trustees consider that they would be able to accommodate any fundamental funding changes. At the balance sheet date the charity's unrestricted general income fund reserves exceeded that amount, at £84,663. As always, future funding of the Arts Factory is an ongoing dialogue with all our funders.

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).

Page 3

Arts Factory Ltd

Report of the Trustees (continued)

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;

• 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

M 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 15 months ended 31 March 2024.

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

15 July 2024

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 15 months ended 31 March 2024

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 £ - 656,959 -	Unrestricted Funds £ 11,364 339,806 2,007 353,177 325,499 325,499 27,678 337,950 (499) 365,129	31 March 2024 Total £ 11,364 996,765 2,007 1,010,136 964,027 964,027 46,109 413,636 - 459,745	31 December 2022 Total £ 11,764 479,268 118
	656,959			491,150
	638,528			466,892
	638,528			466,892
	18,431 75,686 499			24,258 389,378 -
	94,616			413,636

The Statement of Financial Activities includes all gains and losses in the period 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 March 2024

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 Total charity funds	£ £ 280,466 32,209 201,909 234,118 (22,931) 211,187 491,653 (31,908) 459,745 £ £ 280,466 84,663 365,129 94,616 459,745 31 March 2024	£ £ 253,740 22,244 230,201 252,445 (53,037) 199,408 453,148 (39,512) 413,636 £ £ 253,740 84,210 337,950 75,686 413,636 31 December 2022	£ £ 253,740 22,244 230,201 252,445 (53,037) 199,408 453,148 (39,512) 413,636 £ £ 253,740 84,210 337,950 75,686 413,636 31 December 2022

			413,636

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 15 months ended 31 March 2024.

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 March 2024 and of its surplus or deficit for the period 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 15 July 2024 and signed on its behalf. M 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 15 months ended 31 March 2024

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 generally stated in the balance sheet at cost less depreciation. The Maerdy Community Centre was donated to the charity and so has been shown at the fair market value at the date of donation.

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 15 months ended 31 March 2024

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

Unrestricted £ 11,364	2024 £ 11,364	2022 £ 11,764
11,364	11,364	11,764
Unrestricted £ 229,670 57,991 13,652 2,835	2024 £ 229,670 57,991 13,652 2,835	2022 £ 200,536 14,925 13,383 1493
304,148 - 18,385 - - - - - - 17,273	304,148 62,411 18,385 259,119 56,607 15,404 41,394 165,102 38,626 35,569	230,337 49,929 - - 3,557 4,467 40,584 - - 150,394
339,806	996,765	479,268
Unrestricted £ 137,805 104,300 50,634 19,099 4,324	2024 £ 510,402 268,539 122,227 49,198 4,324	2022 £ 195,213 202,024 31,857 27,204 2,362
316,162 1,950 7,387	954,690 1,950 7,387	458,660 1,950 6,282
325,499	964,027	466,892

4 Income from charitable activities

5 Analysis of expenditure on charitable activities

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Arts Factory Ltd

Notes to the financial statements (continued) for the 15 months ended 31 March 2024

6 Net income for the period

The net income for the period/( year) is stated after charging:

Depreciation of tangible fixed assets: owned by the charity Accountancy fees	2024 £ 1,824 1,950	2022 £ 3,296 1,950

7 Staffing and trustee remuneration

Staff costs Wages and salaries Social Security costs Pension costs	2024 £ 238,960 13,991 10,700 263,651	2022 £ 183,390 9,336 7,967
		200,693

During the period the average number of employees was 10 (2022: 13). No employee received employee benefits in excess of £60,000 (2022: Nil).

No remuneration was paid to any trustees during the period nor any expenses reimbursed (2022: £Nil).

8 Tangible fixed assets COST As at 1 January 2023 Additions Disposals At 31 March 2024 DEPRECIATION As at 1 January 2023 Charge for period On Disposals At 31 March 2024 NET BOOK VALUE At 31 March 2024 At 31 December 2022	Land & buildings £ 371,153 28,550 - 399,703 121,153 - - 121,153 278,550 250,000	Tools & equipment £ 2,567 - - 2,567 1,282 801 - 2,083 484 1,285	Motor vehicles £ 7,350 - - 7,350 7,350 - 7,350 - -	Computer equipment £ 109,089 - 109,089 106,634 1,023 - 107,657 1,432 2,455	Total
					£ 490,159 28,550 -
					518,709
					236,419 1,824 -
					238,243
					280,466
					253,740

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Arts Factory Ltd

Notes to the financial statements (continued) for the 15 months ended 31 March 2024

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 & deferred income Creditors: amounts falling due after more than one year Bank loans Other creditors	2024 £ - 24,626 7,583 32,209 2024 £ 6,500 9,745 3,169 1,267 2,250 22,931 2024 £ 31,908 - 31,908	2022 £ - 18,667 3,577
		22,244
		2022 £ 7,200 11,124 3,056 591 31,066
		53,037
		2022 £ 39,512 -
		39,512

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 £ £ 253,740 28,550	Utilised/ released £ (1,824)	Transfer t/f capital grant funds £ -	Balance at end of year £ 280,466

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 15 months ended 31 March 2024

13 Restricted income funds

Social Services Learning Disability SLA WCVA Active Inclusion Grant CWVYS Youth Grant CFW Principality Youth Grant Fund Interlink Small grant Lottery Fund:Bringing Villages together Lottery Fund: Cost of Living grant Lottery Fund: Youth Moondance Foundation NRW Rhondda Fach Garden Project PCS Union Pen y Cymoedd Windfarm Youth Grant Peoples First Grant RCT: Food community grant RCT: Dementia grant RCT: Network Neighbourhood grant RCT: Winter Hardship Grant RCT: Disabled Changing room RIF Dementia Grant South Wales Police Youth Trust WCVA: Volunteering Wales Grant Spar: cost of living grant SPF grant/RCT Prosperity Fund Trivallis cost of living grant Welsh Church Fund Welsh Government Other small grants Total funds	Balance at beginning of period £ - - - 3,680 - - - - 15,126 - 4,407 4,477 17,541 - - - 1,286 - 12,417 10,000 6,752 - - - - - - 75,686	Income in period £ 62,411 16,455 6,000 - 1,000 45,708 99,394 20,000 - 15,404 1,450 - - 1,000 2,000 1,000 2,000 35,000 - - 24,939 96 53,153 800 6,640 259,119 3,390 656,959	Expenditure in period £ 62,650 16,455 6,000 3,680 1,008 41,071 50,207 - 15,126 15,404 5,857 4,477 17,541 1,000 2,003 1,006 3,254 35,160 12,492 10,040 27,694 96 39,004 385 6,640 259,119 1,159 638,528	Transfer t/f unrestricted funds £ 239 - - - 8 - - - - - - - - - 3 6 (32) 160 75 40 - - - - - - - 499	Balance at end of period £ - - - - - 4,637 49,187 20,000 - - - - - - - - - - - - 3,997 - 14,149 415 - - 2,231
					94,616

14 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted funds Designated funds General income fund Restricted income funds Total funds	Tangible fixed assets £ 280,466 - - 280,466	Net current assets £ - 116,571 94,616 211,187	Long term liabilities £ - (31,908) - (31,908)	Total £ 280,466 84,663 94,616
				459,745

Page 12