**Charity Registration No. 1178796**
**Company Registration No. 06667896 (England and Wales)**
## **2FACED DANCE COMPANY LIMITED**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2021**
## **2FACED DANCE COMPANY LIMITED**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Mr A M Green Mr J P Chartres Ms D S Johnson Mr J N Jones Ms E Knight Ms A R Thomas Mr J R Boyle (Appointed 21 October 2020) Dr R P Morgan (Appointed 20 October 2020) Ms J R Cleves (Appointed 20 April 2021) **Secretary** Mr A M Green **Charity number** 1178796 **Company number** 06667896 **Registered office** The Old Court Gaol Street Hereford HR1 2HU **Independent examiner** Kendall Wadley LLP Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS
## **2FACED DANCE COMPANY LIMITED**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Independent examiner's report|5|
|Statement of financial activities|6 - 7|
|Balance sheet|8 - 9|
|Notes to the financial statements|10 - 24|
## **2FACED DANCE COMPANY LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**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 of the financial statements and comply with the Charity's governing document, the Companies Act 2006 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 2019)".
## **Objectives and activities**
The objectives, as stated in the governing documents, are to advance and promote participation in and appreciation of performance art, especially in the form of dance, and to provide education and training in performance art, especially dance and associated disciplines.
In shaping our objectives for the year and planning our activities we have considered the Charity Commission's guidance on public benefit, including the guidance "public benefit: running a charity (PB2)" at our Trustees' meetings. In setting the levels of ticket prices, fees and other charges the Board and senior management is committed to ensuring that all activities are available to those on low incomes through the provision of fair pricing, concessions and, where applicable, bursaries.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
## **Achievements and performance**
The continuation of the pandemic over the period of the past 12 months gave rise to considerable change and challenge for 2Faced Dance Company. As a result, we took decisive actions to secure the future of the organisation.
We determined new goals at regular intervals and adapted our work to continue to serve our artists, audiences, and participants with extraordinary and diverse experiences, trying and trialling new ways of working, despite the challenges of COVID-19.
Following the closure of our Centre for Movement and in line with government guidelines in March 2020, we took advantage of the Government’s Coronavirus Job Retention Scheme which supported our 7 permanent staff. We are grateful to Arts Council England (ACE) for their financial support through the Cultural Recovery Fund administered through the Department for Digital, Culture, Media and Sport and ACE which helped us to recover earned and fundraised income which would otherwise have been lost. It also helped us to support and honour all freelance contracts for work cancelled due to the pandemic. We were also fortunate to receive support from The National Lottery, Co-op Foundation, Herefordshire Community Foundation and The Elmley Foundation.
Defying the odds, a new collaboration came to fruition in the guise of The Ford Collective. Spearheaded by our Artistic Director and working alongside Feral productions and Open Sky Theatre, a new model of artist development, collaboration and support was formed for artists who live and/or work in Herefordshire. Seeing the need for human connectedness, support/guidance and signposting opportunities, this original group of 5 become a group of 200+ artists from across the county. We held fortnightly networking and professional development sessions for Herefordshire based artists throughout the year. A chance for artists to talk, bounce around ideas, listen to each other and establish creative connections. We held fundraising, wellbeing, and accountancy surgeries for small groups of artists. This led to 2 members gaining Arts Council England Funding for the first time. We held in person Playbox events at the Centre for Movement. These sessions were attended by 48 local artists from musicians to visual artists and everything in between. These sessions facilitated by 2Faced Dance Company provided a covid safe creative platform for artists to play with ideas and interact with other artists. Participants came from Hereford, Gloucester, Cheltenham, and Cardiff.
- 1 -
## **2FACED DANCE COMPANY LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
A sense of purpose combined with rigorous team efforts to remain “open” for business throughout the pandemic allowed 2Faced Dance to be there and listen to its community. Time was spent ensuring that our Centre for Movement would be available to those who needed extra space to work, space to create or space to deliver much need dance and movement classes. This saw local schools using the space to deliver PE classes, local providers of well-being sessions delivering yoga and mindfulness and dance teachers using the space to run their classes for young people. Alongside these professional independent artists, musicians and dancers accessed the studios for training and creation.
With our community very much in our minds, we undertook an access audit to gain recommendations on how we might evolve our spaces so that they can be accessed by all. An induction loop system, a new sprung floor, LED lighting, mirrors and digital equipment were installed alongside some DIY projects to ensure that those with visual impairments could distinguish between doors and walls. Alongside this we worked with our landlord to upgrade the accessible toilet.
In December 2020 we augmented and launched an entirely new online festival, MultiStory, curated by and for young people. 2500 people took part in the festival from 8 different countries. 41 artists worked on the project and 2 young artists Sean Moss and Isla Hurst, were commissioned to create new work on the company as part of the project. This continues our strategy to educate and train the next generation of young artists whilst developing the next generation of talent. We continued a combination of online and live classes (where possible) so we were able to keep serving our existing audiences as well as reaching new audiences for our work both in the UK and Internationally.
We worked tirelessly to listen, reflect, and communicate with our staff, participants, artists and audiences whilst paying extraordinary levels of attention to seismic changes in the external environment. Rather than shy away from the scale of the challenge, we have worked to seize the opportunities brought about by the pandemic to accelerate the urgency and pace of change. We generated new relationships with artists, organisations and festivals allowing us to create and deliver a programme of world class dance which responds to the changing touring landscape. This included creating a short film for Severn Arts alongside Luke Jerram’s poignant memorial, In Memoriam. Created from 120 bed sheets, In Memoriam was a symbol of local, national and international solidarity. Visitors were able to reflect and remember those affected by COVID-19 whilst thanking the NHS and Key Workers.
We remain humbled by the extraordinary efforts of everyone at 2Faced Dance Company and our community who have supported it throughout. We would especially wish to acknowledge our Joint Interim Chairs Diana Johnson and Alex Green who have been fundamental in providing leadership and support to the whole staff team, when faced with the seemingly impossible.
## **Financial review**
During the year total income received amounted to £502,298 (2020: £397,847) which included an amount of £133,200 from the Arts Council England Cultural Recovery Fund recognised as a designated fund. An amount of £29,886 of total income was received for a restricted purpose.
Expenditure totalled £289,689 resulting in an overall surplus of £212,609 (2019: a deficit of £24,087). Of the expenditure noted above £14,006 was spent from the restricted reserves and £71,690 on designated funds for the purposes of the Cultural Recovery Fund.
The total reserves as at the balance sheet date amounted to £216,410, of £28,245 (2019: £21,365) related to restricted funds, £161,510 to designated funds and unrestricted funds carried forward showed a surplus of £26,655 (2019: £17,564) at the year end, an increase of £44,219 in the year. Further details regarding restricted and designated funds are included in notes 16 and 17 to the financial statements.
The trustees reviewed the existing reserves policy during the year, and due to the surplus at the end of the year the decision was made to create a “designated” unrestricted reserve of £100,000 which would equate to approximately three months of normal trading for the charitable company to enable us to continue in the event of any future restrictions.
The ACE Cultural Recovery grant activity has also been recognised as a designated fund to record spends, the balance carried forward to next year amounts to £61,510 as a three month extension was awarded due to continued lockdown issues.
- 2 -
## **2FACED DANCE COMPANY LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Principal funding sources**
The following grant-giving bodies donated to the charitable company during the year: The Elmley Foundation, Herefordshire Community Foundation, Arts Council England, The National Lottery Community Fund and The Co-op Foundation.
In respect of assistance in response to the Covid-19 pandemic, we received £20,232 from Hereford Council on rate rebates and lockdown closure grants, £78,696 from the Central Government Job Retention Scheme and £133,200 from the Arts Council England Cultural Recovery Fund.
The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to these risks.
## **Covid 19 and the future**
Covid 19 had a significant impact on the charity during the year as we expected. We were impacted by the Government’s lockdowns which lead to the cancellation or postponement of our planned tour dates, cancellation of our Learning & Participation programme and temporary closure of our building. All staff were asked to work from home before being put on furlough.
Under normal circumstances we are non-reliant on one source of income and approximately half of our total income comes from public, private and earned sources. Covid meant that we did not receive any income, apart from our NPO, for the first 5 months of the year. With no fixed date on when theatres could reopen, tours continued to be cancelled throughout 2020 and as far ahead into summer of 2021. We were able to open our studio spaces for Learning and Participation classes with young children once schools had reopened between the lockdown periods but this was on a much smaller scale than anticipated and for a shorter length of time.
Despite the addition of a freelance Fundraiser to the company team, raising funds from private sources was very difficult throughout the year. There was generally an increased level of competition for funds and other priorities meant the arts suffered as a result. Our success rate has been very low. This trend will continue into next year.
The trustees of the organisation have been very supportive and pro active throughout the crisis, forming a C19 emergency board to be able to help and provide support in the fast paced changing landscape. Alongside our Artistic Director the board have worked hard to try and find new ways of generating funds both in this financial year and looking into the future. However the pandemic has impacted the arts sector hugely and with mass redundancies and many permanent closures it continues to be a hugely challenging time for the sector.
Despite the difficulties, we finished the year in a stronger financial position than we had envisaged, primarily because expenditure on touring and creation was much lower than in normal years. However, without the government support and funding to assist the company through the worst of the pandemic this could have been a very different picture.
## **Structure, governance and management**
The Charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee as defined by the Companies Act 2006.
2Faced Dance Company Limited incorporated on 8 August 2008 and registered as a charity on 16 June 2018.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr A M Green
Mr S H Chandler (Resigned 20 April 2021) Mr J P Chartres Ms D S Johnson Mr J N Jones Ms E Knight Ms A R Thomas
- 3 -
## **2FACED DANCE COMPANY LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
Ms A R Joss (Resigned 19 October 2020) Mr J R Boyle (Appointed 21 October 2020) Dr R P Morgan (Appointed 20 October 2020) Ms J R Cleves (Appointed 20 April 2021)
Directors can serve a maximum of 2 terms, each of 3 years duration. The Board is approved and audited every two to three years in line with the recruitment and Board term cycle. A regular skills audit as part of a Governance Review helps to identify areas of need, informing the Board recruitment strategy. None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
2Faced Dance is managed by a Board of Trustees who also act as directors of the Company. Trustees are recruited from a variety of sectors and demonstrate a range of skills including fundraising, education, HR, corporate governance, marketing, arts and business development.
The Board delegates day - to-day operational responsibility to the Executive team, led by Artistic Director, Tamsin Fitzgerald and Executive Director , Ian Abbott. Remuneration of the senior executives is based on the latest intelligence on comparable posts' rate of pay in the arts sector . Pay is reviewed for all staff annually , and annual rises, when affordable, are based on the rate recommended by Independent Theatre Council.
Newly appointed trustees receive a comprehensive induction into the Company , including a meeting with the Chair to discuss the role of the Board and responsibility of the trustees, and a meeting with the Executive Team to discuss artistic and management objectives. An induction pack contains the Company business plan and contributory documents; a copy of the governing documents; all current policies including Safeguarding, Equal Opportunities and Health & Safety; the most recent annual report; current annual budget and most recent management accounts; a copy of Arts Council England's National Portfolio Organisation agreement, and an outline of the responsibilities of the role of a Trustee. Trustees are encouraged to attend performances of the Company's work where possible.
During the year two members of key management received remuneration and benefits totalling £ 46 , 471 (20 20 : £ 73 , 440 ).
The Trustees' r eport was approved by the Board of Trustees.
## **Mr A M Green**
Trustee Dated: 14 December 2021
- 4 -
## **2FACED DANCE COMPANY LIMITED**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF 2FACED DANCE COMPANY LIMITED**
I report to the Trustees on my examination of the financial statements of 2Faced Dance Company Limited (the Charity) for the year ended 31 March 2021.
## **Responsibilities and basis of report**
As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the Charity 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 the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (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 Charity'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 that in any material respect:
- 1 accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements 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 financial statements 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 financial statements to be reached.
## **Sarah Morley ACA for and on behalf of Kendall Wadley LLP**
Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS
Dated: 14 December 2021
- 5 -
## **2FACED DANCE COMPANY LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Current financial year**
**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general d esignated**
**2021**
**2021**
**2021**
**Notes**
**£**
**£**
**£**
**Income from:**
Donations and legacies
**3**
298,491
133,200
2,045
Charitable activities
**4**
16,141
-
27,841
Other trading activities
**5**
24,571
-
-
Investments
**6**
9
-
-
**Total income**
339,212
133,200
29,886
**Expenditure on:**
Charitable activities
**7**
203,993
71,690
14,006
**Net incoming/(outgoing) resources**
**before transfers**
135,219
61,510
15,880
**Net incoming/(outgoing) resources**
**before transfers**
135,219
61,510
15,880
Gross transfers between funds
**11**
(91,000)
100,000
(9,000)
**Net income/(expenditure) for the year/**
**Net movement in funds**
44,219
161,510
6,880
Fund balances at 1 April 2020
(17,564)
-
21,365
**Fund balances at 31 March 2021**
26,655
161,510
28,245|**Total**
**2021**
**£**
433,736
43,982
24,571
9
502,298
289,689
212,609
212,609
-
212,609
3,801
216,410|Total
2020
**£**
198,385
176,751
22,674
37
397,847
421,934
(24,087)
(24,087)
-
(24,087)
27,888
3,801|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 6 -
## **2FACED DANCE COMPANY LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Prior financial year**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
192,000
6,385
Charitable activities
**4**
90,151
86,600
Other trading activities
**5**
22,674
-
Investments
**6**
37
-
**Total income**
304,862
92,985
**Expenditure on:**
Charitable activities
**7**
328,004
93,930
**Net incoming/(outgoing) resources before transfers**
(23,142)
(945)
Gross transfers between funds
**11**
(6,565)
6,565
**Net income/(expenditure) for the year/**
**Net movement in funds**
(29,707)
5,620
Fund balances at 1 April 2019
12,143
15,745
**Fund balances at 31 March 2020**
(17,564)
21,365|**Total**
**2020**
**£**
198,385
176,751
22,674
37
397,847
421,934
(24,087)
-
(24,087)
27,888
3,801|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 7 -
## **2FACED DANCE COMPANY LIMITED**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2021**_
|**Notes**
**Fixed assets**
Tangible assets
**12**
**Current assets**
Stocks
**13**
Debtors
**14**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**15**
Net current assets/(liabilities)
**Total assets less current liabilities**
**Income funds**
Restricted funds
**16**
Unrestricted funds
Designated funds
**17**
General unrestricted funds|**2021**
**£**
100
43,186
174,185
217,471
(13,664)
161,510
26,655|**£**
12,603
203,807
216,410
28,245
188,165
216,410|**2020**
**£**
100
42,040
1,522
43,662
(46,171)
-
(17,564)|**£**
6,310
(2,509)
3,801
21,365
(17,564)
3,801|
|---|---|---|---|---|
- 8 -
## **2FACED DANCE COMPANY LIMITED**
## **BALANCE SHEET (CONTINUED)**
## _**AS AT 31 MARCH 2021**_
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 14 December 2021
Mr A M Green
## **Trustee**
## **Company Registration No. 06667896**
- 9 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **Charity information**
2Faced Dance Company Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is The Old Court, Gaol Street, Hereford, HR1 2HU.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006 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 2019)". The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the Charity . Monetary a mounts 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 Charity 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 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 to the financial statements.
## **1.4 Income**
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
## **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 a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributable to particular headings they have been allocated to activities on a basis consistent with the use of resources.
- 10 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
**(Continued)**
## **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
25% Reducing balance
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.
## **1.7 Impairment of fixed assets**
At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any 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 Stocks**
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand. and deposits held at call with banks.
## **1.10 Financial instruments**
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity 's balance sheet when the Charity 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 transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction . Financial liabilities classified as payable within one year are not amortised.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the Charity ’s contractual obligations expire or are discharged or cancelled.
- 11 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.11 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.12 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Critical accounting estimates and judgements**
In the application of the Charity’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 may 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.
- 12 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **3 Donations and legacies**
|**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general d esignated**
**2021**
**2021**
**2021**
**£**
**£**
**£**
Donations and gifts
4,030
-
-
Grants
294,461
133,200
2,045
298,491
133,200
2,045
**Grants receivable for core activities**
Arts Council
195,533
-
-
Northern School of Contemporary Dance
-
-
2,045
Rural Media GIF
-
-
-
West Midlands International Trade
-
-
-
Arts Council England - Cultural Recovery Grant
-
133,200
-
Herefordshire Council Covid-19 government funding
20,232
-
-
Coronavirus job retention scheme grant
78,696
-
-
294,461
133,200
2,045|**Total**Unrestricted
Restricted
funds
funds
general
**2021**
2020
2020
**£**
£
£
4,030
-
-
429,706
192,000
6,385
433,736
192,000
6,385
195,533
192,000
-
2,045
-
3,330
-
-
2,000
-
-
1,055
133,200
-
-
20,232
-
-
78,696
-
-
429,706
192,000
6,385|Total
2020
£
-
198,385
198,385
192,000
3,330
2,000
1,055
-
-
-
198,385|
|---|---|---|
- 13 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **4 Charitable activities**
|**Advance and**
**promote**
**Educate and**
**Train**
**2021**
**2021**
**£**
**£**
Sales within charitable
activities
2,211
13,930
Performance related
grants
17,941
9,900
20,152
23,830
Analysis by fund
Unrestricted funds -
general
2,211
13,930
Restricted funds
17,941
9,900
20,152
23,830
**Performance related grants**
The Elmley Foundation
-
9,000
National Lottery
Community Fund
7,700
-
Herefordshire Council
500
-
Children & The Arts
-
-
Pavilion Dance South
West
-
-
The Co-Op Foundation
9,741
-
Herefordshire Community
Fund
-
900
Start 5 (UoW)
-
-
Postcode Lottery
-
-
Dance Xchange
-
-
Marches Family Network
-
-
17,941
9,900|**Total**
**2021**
**Advance and**
**promote**
**Educate and**
**Train**
**2020**
**2020**
**£**
**£**
**£**
16,141
70,159
38,592
27,841
35,500
32,500
43,982
105,659
71,092
16,141
51,559
38,592
27,841
54,100
32,500
43,982
105,659
71,092
9,000
10,000
9,000
7,700
-
-
500
-
-
-
-
7,500
-
-
1,000
9,741
6,500
3,500
900
5,000
-
-
-
11,500
-
11,000
-
-
1,000
-
-
2,000
-
27,841
35,500
32,500|**Total**
**2020**
**£**
108,751
68,000
176,751
90,151
86,600
176,751
19,000
-
-
7,500
1,000
10,000
5,000
11,500
11,000
1,000
2,000
68,000|
|---|---|---|
- 14 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **5 Other trading activities**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2021**|2020|
||**£**|£|
|Fundraising events|24,571|22,674|
|**Investments**|||
||**Unrestricted**|Unrestricted|
||**funds**|funds|
||**general**|general|
||**2021**|2020|
||**£**|£|
|Interest receivable|9|37|
## **6 Investments**
- 15 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **7 Charitable activities**
|**Advance and**
**Promote**
**Educate**
**and Train**
**2021**
**2021**
**£**
**£**
Other operating leases
6,068
-
Hospitality
-
-
Touring costs
-
-
Venue and room hire
16,154
12,389
Project materials
4,750
19
Covid-19 costs
8,094
-
Freelance artists
6,098
800
Advertising & marketing
2,400
-
Professional fees
3,000
-
Small equipment
13,941
-
60,505
13,208
Share of support costs (see note 8)
137,620
77,411
Share of governance costs (see note 8)
945
-
199,070
90,619
**Analysis by fund**
Unrestricted funds - general
113,390
90,603
Unrestricted funds - designated
71,690
-
Restricted funds
13,990
16
199,070
90,619|**Total**
**2021**
**Advance and**
**Promote**
**Educate**
**and Train**
**2020**
**2020**
**£**
**£**
**£**
6,068
6,165
-
-
166
10
-
43,136
5,403
28,543
10,270
7,882
4,769
10,236
2,358
8,094
-
-
6,898
44,856
4,408
2,400
-
-
3,000
-
-
13,941
-
-
73,713
114,829
20,061
215,031
196,709
87,835
945
2,500
-
289,689
314,038
107,896
203,993
235,623
92,381
71,690
-
-
14,006
78,415
15,515
289,689
314,038
107,896|**Total**
**2020**
**£**
6,165
176
48,539
18,152
12,594
-
49,264
-
-
-
134,890
284,544
2,500
421,934
328,004
-
93,930
421,934|
|---|---|---|
- 16 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **8 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
182,949
-
Depreciation
3,544
-
Advertising
3,153
-
Payroll fees
2,262
-
Bookkeeping
8,358
-
Bank charges
286
-
Insurance
2,227
-
Subscriptions
1,518
-
Telephone
1,698
-
Postage and stationery
404
-
Sundries
3,375
-
Professional fees
5,257
-
Independent
examination
-
900
Trustee expenses
-
45
215,031
945
Analysed between
Charitable activities
215,031
945|**2021**
**£**
182,949
3,544
3,153
2,262
8,358
286
2,227
1,518
1,698
404
3,375
5,257
900
45
215,976
215,976|Support
costs
Governance
costs
£
£
241,623
-
2,103
-
12,925
-
3,061
-
9,843
-
261
-
2,130
-
1,335
-
1,391
-
488
-
8,901
-
483
-
-
2,500
-
-
284,544
2,500
284,544
2,500|2020
£
241,623
2,103
12,925
3,061
9,843
261
2,130
1,335
1,391
488
8,901
483
2,500
-
287,044
287,044|
|---|---|---|---|
## **9 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.
## **10 Employees**
The average monthly number of employees during the year was:
|**2021**|**2020**|
|---|---|
|**Number**|**Number**|
|6|8|
- 17 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**10**
**Employees**
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**(Continued)**
**2021**
**2020**
**£**
**£**
170,616
222,761
9,026
14,832
3,307
4,030
182,949
241,623|
|---|---|
No employees received emoluments in excess of £60,000.
## **11 Transfers**
By kind permission of the donor funds of £ 9,000 (20 20 - £ 11,000 ) have been re-desig na ted as for general use and released to unrestricted funds.
During the year £100,000 has been transferred from unrestricted funds to designated funds to create a risk reserve as part of the current reserves policy.
Other transfers of £ nil (20 20 - £ 17 , 565 ) have been made from unrestricted funds to restricted funds to cover deficits incurred on specific projects.
## **12 Tangible fixed assets**
|**Tangible fixed assets**||
|---|---|
||**Fixtures and fittings**|
||**£**|
|**Cost**||
|At 1 April 2020|15,542|
|Additions|9,837|
|At 31 March 2021|25,379|
|**Depreciation and impairment**||
|At 1 April 2020|9,232|
|Depreciation charged in the year|3,544|
|At 31 March 2021|12,776|
|**Carrying amount**||
|At 31 March 2021|12,603|
|At 31 March 2020|6,310|
- 18 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**13**
**Stocks**
Finished goods and goods for resale
**14**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**Amounts falling due after more than one year:**
Prepayments and accrued income
**Total debtors**
**15**
**Creditors: amounts falling due within one year**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2021**
**£**
100
**2021**
**£**
342
4,255
35,788
40,385
**2021**
**£**
2,800
43,186
**2021**
**£**
3,520
4,173
677
5,294
13,664|**2020**
**£**
100
**2020**
**£**
13,309
2
25,929
39,240
**2020**
**£**
2,800
42,040
**2020**
**£**
4,305
33,632
994
7,240
46,171|
|---|---|---|
Deferred income of £ nil (20 20 : £18 0 ) is included in accruals above. The deferred income relates to income paid in advance for community classes running post year end.
- 19 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **16 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|||**Movement in funds**|**Movement in funds**|||**Movement in funds**|**Movement in funds**||||
|---|---|---|---|---|---|---|---|---|---|---|
||**Balance at**|**Incoming**|**Resources**|**Transfers**|**Balance at**|**Incoming**|**Resources**|**Transfers**||**Balance at**|
||**1 April 2019**|**resources**|**expended**||**1 April 2020**|**resources**|**expended**||**31**|**March 2021**|
||**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**||**£**|
|Bench|5,015|10,000|(10,307)|-|4,708|-|(16)|-||4,692|
|Start|1,992|19,000|(14,335)|-|6,657|-|-|-||6,657|
|Box of Delights|8,738|29,600|(52,349)|14,011|-|-|-|-||-|
|The Co-op Foundation - Space to Connect|-|10,000|(7,000)|-|3,000|9,741|(3,400)|-||9,341|
|Other|-|1,055|(2,189)|1,134|-|-|-|-||-|
|GIF|-|2,000|(2,000)|-|-|-|-|-||-|
|National Lottery Community Found - Multi-|||||||||||
|Story|-|7,000|-|-|7,000|7,700|(8,045)|-||6,655|
|Postcode Community Trust|-|11,000|-|(11,000)|-|-|-|-||-|
|Northern School Contemporary dance -|||||||||||
|Bursary|-|3,330|(5,750)|2,420|-|2,045|(2,045)|-||-|
|Herefordshire Council - Keeping Connected|-|-|-|-|-|500|(500)|-||-|
|Herefordshire Community FUnd - Company|||||||||||
|of Wolves|-|-|-|-|-|900|-|-||900|
|The Elmley Foundation|-|-|-|-|-|9,000|-|(9,000)||-|
||15,745|92,985|(93,930)|6,565|21,365|29,886|(14,006)|(9,000)||28,245|
- 20 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
_**FOR THE YEAR ENDED 31 MARCH 2021**_
## **16 Restricted funds**
**(Continued)**
Bench - a development and support programme which 2FD has created to combat gender inequality in dance. This fund will be used for commissioning and events.
Start - a multi-year programme working with schools in Herefordshire with cultural visits, workshops, teacher CPD and special events for young people.
Box of Delights - contribution to the cost of putting on a major Christmas performance in Hereford, based on John Masefield's Box of Delights.
Space to Connect - consult with artists and micro-SME's from the creative/cultural industries across Herefordshire as we had a collective desire to engage in a conversation and try to find a solution to our collective lack of access to appropriate spaces in our County.
West Midland International - underwrite the costs of a trade visit to Singapore with a view to potential taking 2FD touring there.
GIF - funding for a GIF Portrait Project.
Multi-story - support for an outdoor community show to take place in the roof of a multi-story car park in Hereford. This took place online due to covid resulting in reduced spending.
Bursary - Northern School of Contemporary Dance contribute towards the cost of paying a bursary to an apprentice dancer and underwrite the touring costs of said apprentice.
Keeping Connected - Herefordshire Council grant to cover cost of PR agency in keeping 2FD visible during lockdown.
Company of Wolves - Herefordshire Community Fund for a new community class to be run over summer 2020, but postponed due to covid.
The Elmley Foundation - with kind permission these monies were re-designated to fund a digital programme.
- 21 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **17 Designated funds**
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
|**Balance at**
**1 April 2020**
**£**
Arts Council - Cultural Recovery Fund
-
Risk reserve
-
-|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
133,200
(71,690)
-
-
133,200
(71,690)|**Transfers**
**Balance at**
**31 March 2021**
**£**
**£**
-
61,510
100,000
100,000
100,000
161,510|
|---|---|---|
Arts Council England Cultural Recovery Grant - Funding was provided during the year to assist with the survival of the organisation during the Covid-19 crisis, it was originally provided to cover support for a 6 month period to 31 March 2021, however, this was extended to 30 June 2021.
Risk reserve - It is the policy of the charity to maintain sufficient unrestricted reserves, which are free reserves of the charity to close down the organisation. In accordance with Charity Commission guidelines these represent three month's running costs of the charity. Based on the 2021/22 budget this amounts £100,000 and therefore this amount has been transferred from unrestricted to designated reserves.
- 22 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**18**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**2021**
**£**
**£**
**£**
Fund balances at 31 March 2021 are represented by:
Tangible assets
12,603
-
-
Current (liabilities)/assets
14,052
161,510
28,245
26,655
161,510
28,245|**Total**Unrestricted
funds
Restricted
funds
**2021**
2020
2020
**£**
£
£
12,603
6,310
-
203,807
(23,874)
21,365
216,410
(17,564)
21,365|Total
2020
£
6,310
(2,509)
3,801|
|---|---|---|
- 23 -
## **2FACED DANCE COMPANY LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **19 Operating lease commitments**
At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Within one year
Between two and five years|**2021**
**£**
33,600
92,400
126,000|**2020**
**£**
33,600
126,000
159,600|
|---|---|---|
## **20 Related party transactions**
During the year the company received a grant of £9,000 (20 20 : £ 1 9,000) from The Elmley Foundation, a charity in which Ms D Johnson is also a trustee. At the year end no balances were outstanding.
- 24 -