Company registration number: 10098742 Charity registration number: 1184073
SUNDERLAND CULTURE LIMITED
(A company limited by guarantee)
Annual Report and Financial Statements
for the Year Ended 31 March 2021
Sunderland Culture Limited
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 8 |
| Independent Auditors' Report | 9 to 11 |
| Statement of Financial Activities | 12 |
| Statement of Financial Activities | 13 |
| Balance Sheet | 14 |
| Statement of Cash Flows | 15 |
| Notes to the Financial Statements | 16 to 30 |
Sunderland Culture Limited
Reference and Administrative Details
Chair J M Earl Trustees J D Mowbray A R Mackay G E Callaghan I B Kadchha A Turpin G Thompson S C Knight F C Brown P M Callaghan J Kelly (resigned 17 December 2020) J M Earl (appointed 17 December 2020) Cllr L Williams (appointed 17 December 2020) Secretary Rebecca Ball Principal Office National Glass Centre Liberty Way Sunderland SR6 0GL The charity is incorporated in England and Wales. Company Registration Number 10098742 Charity Registration Number 1184073 Bankers Handlesbanken Sunderland 17 Pickersgill Court Quay West Riverside Business Village Sunderland SR5 2AQ Auditor MHA Tait Walker Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS
1
Sunderland Culture Limited
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 March 2021.
Structure, governance and management
Nature of governing document
The company is a charitable company limited by guarantee and does not have share capital. The company is governed by its Articles of Association.
Sunderland Culture Limited ("the Charity") is a company limited by guarantee. It was incorporated on 2nd April 2016 and registered as a charity with the Charity Commission on 24th June 2019. Its Articles of Association were last amended on 6th June 2019.
Recruitment and appointment of trustees
In accordance with the Articles of Association, the trustees must be a minimum of three and shall not be subject to any maximum provided that each of the following bodies is entitled at any time to appoint directors up to the number specified opposite their name:
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Sunderland City Council - up to 2 nominated directors
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University of Sunderland - up to 2 nominated directors
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Sunderland Music, Arts and Culture Trust - up to 2 nominated directors
The above bodies may remove and replace any of its nominated directors by giving notice in writing to the charity.
A director must be a natural person aged 16 years or older and not be disqualified from acting under the provisions of article 39.
A director may not appoint an alternate director or anyone to act on his or her behalf at meetings of the directors.
Arrangements for setting key management personnel remuneration
The board, who give their time freely and trustees received no remuneration in the year. The board have considered who the Key Management Personnel (KMP) of the charitable company are and conclude that there are none aside from the trustees themselves.
Organisational structure
The charitable company is administered by a board of trustees which meets a minimum of four times a year. Day to day activities are controlled by a Chief Executive who is assisted by a Director of Finance.
2
Sunderland Culture Limited
Trustees' Report
Objectives and activities
Objects and aims
The charitable company's object and principal activity is to:
Advance the arts and culture and to advance education in the arts of performance, music, drama, poetry reading, sculpture, painting, photography, handicrafts, literature, glass-making, history, film and all other associated arts (“the Arts") in particular, but not exclusively by:
Encouraging public participation in the Arts and by the presentation of concerts, performances, exhibitions and festivals, provided that the promotion of such festivals and events is undertaken solely for the Public Benefit;
Developing new and innovative ways of delivering the Arts;
Participation in and, where appropriate, management and oversight of, cultural operations, venues and activities primarily in the City of Sunderland to ensure maximum benefit and return, provided that such participation and management is undertaken solely for Public Benefit.
Fundraising disclosures
The charity is required to report how it deals with fundraising from the public. The charity does not use a professional fundraiser or commercial participator to raise funds. Any monies raised direct from the public follows all guidelines set out by the Charity Commission and UK law in every respect. We respect the privacy and contact preferences of all public donors.
Public benefit
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Achievements and performance
In delivering the organisation’s objects, Sunderland Culture’s Trustees agreed a business plan which sets out a mission to “Improve life for everyone in Sunderland through culture” through three strategic ambitions:
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To ensure an excellent, diverse artistic and heritage offer
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To encourage everyone to get involved
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To secure a revitalised, joined up and accessible cultural infrastructure
3
Sunderland Culture Limited
Trustees' Report
This work is achieved through the delivery of a core programme of exhibitions, events, performances and learning programmes at the venues owned by our partners: Northern Gallery for Contemporary Art (NGCA) (University of Sunderland) National Glass Centre (University of Sunderland) Sunderland Museum and Winter Gardens (Sunderland City Council) Arts Centre Washington (Sunderland City Council) The Fire Station (Sunderland MAC Trust), as well as a through a citywide programme of participatory cultural activities.
Through a Collaboration Agreement with its partners, Sunderland Culture brings together the investment and resources from the three main funders of arts provision in the city, Sunderland City Council, University of Sunderland and Sunderland Music, Arts and Culture (MAC) Trust, alongside investment from Arts Council England, other charitable trusts and foundations and earned income.
The impact of the Covid 19 pandemic during 2020/21 resulted in exceptional upheaval, disruption and challenge for Sunderland Culture. Like other organisations across the cultural sector, the venues where we deliver our work were forced to close, events were cancelled and many of our income streams dried up.
Vital investment from DCMS, through the Culture Recovery Fund, Arts Council England, Art Fund, Garfield Weston Culture Fund and Sunderland City Council has enabled us to sustain our organisation and operations during this most of challenging years. We are also immensely grateful for the support we were able to access through the Job Retention Scheme.
Whilst venues were closed to the public and many of our staff team were furloughed, a small team were still able to continue deliver a reworked and refocused cultural programme for communities across the city. Much of this programme was delivered online, with 277,246 visitors to our online and digital programmes.
Highlights included:
• Launch of a new online shop for National Glass Centre which generated over £15,000 of sales in it’s first year
• A programme of support for artists and creative businesses impacted by the pandemic across the city which delivered eighty-two 121 support session, 62 skills workshops and supported artists based in the city to raise £300,000 through a range of emergency funding and support schemes.
• 22,793 people participated in online creative activities for children and families, many of these were focussed around school holidays including Easter, May Half Term and Summer.
• Health and Wellbeing Creativity packs which were distributed to over 400 pupils through the Link School
• Summer Holiday creative ‘takeaway packs’ were accessed through a collection service at Sunderland Museum and Winter Gardens
• Four Sunderland- based writers were commissioned to create monologues entitled ‘Sunderland Stories’ which were streamed online.
• Existing exhibitions across the venues, including ‘Received Wisdom’ at Sunderland Museum and Winter Gardens, ‘Chad McCail: Toy’ at the Northern Gallery of Contemporary Art and ‘No Strings’ at the National Glass Centre were moved online
• Our new app Art Crush which enabled access to the Arts Council Collection, attracted 4837 users
• A new exhibition ‘Paint the Town in Sound’ developed in lockdown and guest curated with Mercury Prize nominated Sunderland based band Field Music developed as an extensive online exhibition, VR experience and series of podcasts.
During 2020/21 the Board of Trustees met 4 times and the Finance and General Purposes Committee met 12 times. The Board also began work on a governance review, supported by Counterculture.
4
Sunderland Culture Limited
Trustees' Report
During this year, Graeme Thompson stood down as Chair of Trustees and Keith Merrin announced his resignation as Chief Executive. We are enormously grateful to Graeme and Keith for all their hard work in establishing Sunderland Culture and leading the organisation during its first 4 years. Following an open application process, Jane Earl was appointed Sunderland Culture’s new Chair of Trustees in December 2020. Rebecca Ball, Sunderland Culture’s Creative Director, was appointed interim Chief Executive in April 2021 and then, following an open application process, was appointed to the role permanently in July 2021.
As we look ahead to 2021/22 we are relieved and thankful that through the support of our partners and the hard work of our staff and board we have been able to end the year in a relatively strong financial position. However, we are very mindful that the impact of the pandemic is certainly not over and the financial operating context for Sunderland Culture is likely to remain challenging for some time to come. We believe that the resourcefulness and resilience of the staff team and our partners places us in a good position to continue to innovate and deliver on our ambitions in the next year and beyond.
Financial review
During 2020/21 Sunderland Culture was responsible for the delivery of the core programme of exhibitions, events, performances and learning opportunities across 5 venues owned by our partners - Northern Gallery for Contemporary Art (NGCA) (University of Sunderland) National Glass Centre (University of Sunderland) Sunderland Museum and Winter Gardens (Sunderland City Council) Arts Centre Washington (Sunderland City Council) The Fire Station (Sunderland MAC Trust), and through our City-Wide programme . As such the majority of our expenditure was on programme delivery and staffing,
During 2020/21 Sunderland Culture employed 12 members of staff directly. Sunderland Culture also contributed to the salary costs of staff, employed by our partners, to deliver programme across the core venues, through quarterly payments to those partners.
Investment through Arts Council England’s NPO programme provided vital support for the organisation’s core activities and operations.In addition, many of our creative programmes and projects were supported by Restricted Funding.
The impact of Covid meant that our earned income including tickets for performances, exhibitions and workshops was considerably lower than previous years. We are immensely grateful to the emergency support we received through DCMS via the Cultural Recovery Fund, Arts Council England, Art Fund, Garfield Weston Culture Fund and Sunderland City Council.
It is also important to note the considerable ongoing investment made by our partners. Sunderland City Council, University of Sunderland and MAC Trust in the maintenance, operation and management of their respective cultural facilities. Whilst that investment sits beyond these accounts, it is absolutely vital in enabling that delivery of this work. We are indebted to all of our partners for their continued investment in and support for culture in Sunderland, without which Sunderland Culture could not deliver its programmes.
Policy on reserves
The calculation of free reserves is based on the definition included in the charity statement of recommended practice (SORP), which provides recommendations for accounting and reporting for charities. The trustees have examined the requirements of the charity to hold free reserves - those reserves not invested in tangible fixed assets, excluding long term liabilities, or designated for a particular purpose. The Trustees considered it would be appropriate to hold the equivalent of three months of total income, which would equate to holding approximately £580,000 in free reserves.
At the year end, free reserves were £208,562 (2020 £(23,191) deficit). This is an increase of £231,753 which the Trustees are satisfied with given the covid recovery funds they accessed in the year.
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Sunderland Culture Limited
Trustees' Report
Principal funding sources
The charity and its trustees recognise that both the University of Sunderland, Sunderland City Council and MAC Trust have funded costs associated with our venues directly, and that, without this ongoing support, the charity would be unable to operate solely. These funded costs have not been recognised within the financial statements of Sunderland Culture. See note 22.
The charity recognises the principal funding sources in the year as follows:
| Funder | Amount |
|---|---|
| 3 Together Big Local - Creative Covid response project | 2,000 |
| Art Fund | 49,500 |
| Arts Council England | 1,153,161 |
| Community Foundation | 3,250 |
| Design Lab - V&A Design Lab Nation | 2,032 |
| Future Arts Centres | 8,600 |
| Garfield Weston Foundation | 150,970 |
| Groundwork NE & Cumbria – Three Together Big Local | 11,300 |
| HMRC - JRS Income | 54,465 |
| Imperial War Museum – 14-18 NOW | 4,412 |
| Jerwood Arts – Weston Jerwood Creative Bursary | 14,265 |
| National Gallery | 5,000 |
| National Lottery Community Fund | 10,000 |
| National Lottery Heritage Fund | 577,383 |
| Newcastle Gateshead Initiative – GX Grant Programme | 5,612 |
| Newcastle University | 20,000 |
| Sir James Knott Trust | 20,000 |
| Southbank Centre | 50,600 |
| Sunderland City Council – Washington Area Committee, Washington Can Do Fund, Millfield Area,Covid Winter, Holiday Hunger |
31,726 |
| Sunderland City Council - Coastal Communities | 127,923 |
Key Management Personnel
The board, who give their time freely and no trustees received remuneration in the year, have considered who the Key Management Personnel (KMP) of the charity are. Together with the board, these KMP are those in charge of directing and controlling, running and operating the activities of the charity on a day to day basis. The pay of the KMP is reviewed annually and normally increased in accordance with average earnings. The trustees benchmark against pay levels of other charities and similar organisations within the sector and the region. Pay levels are set using this information together with the budget and forecast information, ensuring that the charity can afford any proposed increases. The board then agree any uplift to remuneration.
6
Sunderland Culture Limited
Trustees' Report
Plans for future periods
Aims and key objectives for future periods
Activity in the new financial year has continued to be impacted by the COVID19 pandemic, with all cultural venues closed to the public until the middle of May 21, limitations on numbers and social distancing in place until the middle of July 21 and live performance not returning to Arts centre Washington until the Autumn 21. As a result, Sunderland Culture has continued to deliver a mix of online and live activity in order to ensure we deliver a cultural programme for Sunderland that contributes to recovery and meets the needs of our city at this time.
The first quarter of 2021/22 saw the end of Sunderland Culture’s Great Place Programme. This project had been fundamental in the delivery of our citywide ambitions and the development of Sunderland Culture’s business model. We are pleased that the legacy of this programme continues through our talent development, arts and health and education and learning programmes.
During 2021/2022, the National Partners Programme with Arts Council Collection will enable the Sunderland to host Sir Anthony Gormley’s ‘Field for the British Isles’, as well as to develop a new exhibition about the impact of Covid on the city ‘Where Are We Now’ and facilitate special exhibition curated by our team of Young Curators Celebrate Different Collective.
Thanks to support through Garfield Weston Culture Fund, National Glass Centre will host its first ever Art Prize in 2021, featuring work by 42 artists from across Europe.
And towards the end of this year, thanks to the hard work and determination of our partner the Sunderland MAC Trust, we will see a thrilling new addition to the city, with the opening of The Fire Station, a new, state-of-the-art performance venue for Sunderland, designed by award-winning architects Flanagan Lawrence which will be operated by Sunderland Culture and will provide both new creative and business opportunities for the organisation.
Going concern
The charity’s forecasts and projections for the next twelve months show that the charity should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the charity of possible future scenarios arising from the impact of COVID-19. This also considers the effectiveness of available measures to assist in mitigating the impact. The charity has strong positive cash balances and is forecasting for this to continue to be the case. The trustees have stress tested their forecasts, taking into account various scenarios, and remain confident that the uncertainties do not cast significant doubt on the company’s ability to continue as a going concern.
7
Sunderland Culture Limited
Trustees' Report
Statement of Trustees Responsibilities
The trustees (who are also the directors of Sunderland Culture Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditor
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
Reappointment of auditor
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of MHA Tait Walker as auditors of the charity is to be proposed at the forthcoming Annual General Meeting.
The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... J M Earl Chairman and Trustee
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Sunderland Culture Limited
Independent Auditor's Report to the Members of Sunderland Culture Limited
Opinion
We have audited the financial statements of Sunderland Culture Limited (the 'charity') for the year ended 31 March 2021, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements were authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
9
Sunderland Culture Limited
Independent Auditor's Report to the Members of Sunderland Culture Limited
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Trustees' Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities (set out on page 8), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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Sunderland Culture Limited
Independent Auditor's Report to the Members of Sunderland Culture Limited
• Enquiries with management, about any known or suspected instances of non-compliance with laws and regulations and fraud;
- Reviewing board minutes;
• Challenging assumptions and judgements made by management in their significant accounting estimates; and
• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety and compliance with both the UK Companies Act and UK Charities Act.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
...................................... Simon Brown BA ACA DChA (Senior Statutory Auditor) For and on behalf of MHA Tait Walker Chartered Accountants Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS
Date:.............................
MHA Tait Walker is a trading name of Tait Walker LLP.
11
Sunderland Culture Limited
Statement of Financial Activities for the Year Ended 31 March 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 3 Charitable activities 4 Investment income 5 Other income 6 Total Income Expenditure on: Raising funds 7 Charitable activities 8 Total Expenditure Net income/(expenditure) Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 20 |
Unrestricted 2021 £ 208,282 512,693 124 14,164 735,263 - (516,324) (516,324) 218,939 218,939 (10,377) 208,562 |
Restricted 2021 £ - 1,486,448 - - 1,486,448 - (963,270) (963,270) 523,178 523,178 230,481 753,659 |
Total 2021 £ 208,282 1,999,141 124 14,164 2,221,711 - (1,479,594) (1,479,594) 742,117 742,117 220,104 962,221 |
Total 2020 £ 140,244 1,327,496 664 200,351 |
|---|---|---|---|---|
| 1,668,755 | ||||
| (1,057) (1,918,918) |
||||
| (1,919,975) | ||||
| (251,220) | ||||
| (251,220) 471,324 |
||||
| 220,104 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 20.
12
Sunderland Culture Limited
Comparative Statement of Financial Activities for the Year Ended 31 March 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 3 Charitable activities 4 Investment income 5 Other income 6 Total income Expenditure on: Raising funds 7 Charitable activities 8 Total expenditure Net (expenditure)/income Transfers between funds Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 20 |
Unrestricted 2020 £ 117,119 536,323 664 200,351 854,457 (1,057) (1,114,142) (1,115,199) (260,742) 211,000 (49,742) 39,365 (10,377) |
Restricted 2020 £ 23,125 791,173 - - 814,298 - (804,776) (804,776) 9,522 (211,000) (201,478) 431,959 230,481 |
Total 2020 £ 140,244 1,327,496 664 200,351 |
|---|---|---|---|
| 1,668,755 | |||
| (1,057) (1,918,918) |
|||
| (1,919,975) | |||
| (251,220) - |
|||
| (251,220) 471,324 |
|||
| 220,104 |
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Sunderland Culture Limited
(Registration number: 10098742) Balance Sheet as at 31 March 2021
| Note Fixed assets Tangible assets 15 Current assets Debtors 16 Cash at bank and in hand Creditors: Amounts falling due within one year 17 Net current assets Net assets Funds of the charity: Restricted Unrestricted income funds Unrestricted Total funds 20 |
2021 £ 8,174 463,681 752,580 1,216,261 (262,214) 954,047 962,221 753,659 208,562 962,221 |
2020 £ 12,814 379,042 321,681 |
|---|---|---|
| 700,723 (493,433) |
||
| 207,290 | ||
| 220,104 | ||
| 230,481 (10,377) |
||
| 220,104 |
The financial statements on pages 12 to 30 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:
......................................... J M Earl Chairman and Trustee
14
Sunderland Culture Limited
Statement of Cash Flows for the Year Ended 31 March 2021
| Note Cash flows from operating activities Net cash income/(expenditure) Adjustments to cash flows from non-cash items Depreciation 7 Investment income 5 Working capital adjustments Increase in debtors 16 (Decrease)/increase in creditors 17 Net cash flows from operating activities Cash flows from investing activities Interest receivable and similar income 5 Purchase of tangible fixed assets 15 Net cash flows from investing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 April Cash and cash equivalents at 31 March |
2021 £ 742,117 7,068 (124) 749,061 (84,639) (231,219) 433,203 124 (2,428) (2,304) 430,899 321,681 752,580 |
2020 £ (251,220) 5,045 (664) |
|---|---|---|
| (246,839) (38,265) 139,620 |
||
| (145,484) | ||
| 664 (6,377) |
||
| (5,713) | ||
| (151,197) 472,878 |
||
| 321,681 |
All of the cash flows are derived from continuing operations during the above two periods.
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Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
1 Charity status
The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The address of its registered office is: National Glass Centre, Liberty Way, Sunderland, SR6 0GL
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
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). They also comply with the Companies Act 2006 and Charities Act 2011.
Basis of preparation
Sunderland Culture Limited 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 notes.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The charity’s forecasts and projections for the next twelve months show that the charity should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the charity of possible future scenarios arising from the impact of COVID-19. This also considers the effectiveness of available measures to assist in mitigating the impact. The charity has strong positive cash balances and is forecasting for this to continue to be the case. The trustees have stress tested their forecasts, taking into account various scenarios, and remain confident that the uncertainties do not cast significant doubt on the company’s ability to continue as a going concern.
16
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Estimation uncertainty and judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Accruals
Accruals are calculated where a service has been provided but the company has not yet been invoiced.
Prepayments
Prepayments are calculated where an invoice has been provided in advance of the service taking place.
Depreciation
Depreciation is calculated on tangible fixed assets at a rate to write off the cost of the asset over its expected useful life.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Income includes amounts received under contract or where entitlement to grant funding is subject to specific performance conditions is recognised as earned.
Donations and grant income included is recognised where there is entitlement, the receipt is probable and the amount can be measured with sufficient reliability.
In the event that a donation or grant is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
Donations and legacies
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Gifts in kind
Where a gift in kind is given to the charity and it can be reliably measured, the gift is shown in both voluntary income and charitable activities.
17
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Investment income
Bank interest received is recognised once it has been received.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
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
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £300.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate IT equipment 33.33% straight line
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price.
18
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Hire purchase and finance leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term.
Funds managed on behalf of others
The charity manages (on behalf of the landlord) a property which is let to multiple parties. The charity records only the income in relation to those management tasks, for which it receives a management charge income from the landlord for doing so. All other transactions are held by the charity on the balance sheet as part of monies owed to the landlord.
19
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
3 Income from donations and legacies
| Donations Coronavirus Job Retention Scheme Grants Gifts in kind |
Unrestricted General £ 2,090 60,080 66,173 79,939 208,282 |
Total 2021 £ 2,090 60,080 66,173 79,939 208,282 |
Total 2020 £ 14,598 - 45,707 79,939 |
|---|---|---|---|
| 140,244 |
Gifts in kind total £79,939 (2020: £79,939). The income is shown as voluntary income and the expenditure is included as costs within Charitable Activities expenditure. This represents space used within the National Glass Centre and the Chief Executive's time which is not recharged by the University of Sunderland.
4 Income from charitable activities
| National Portfolio Organisation Great Places Venue Programme Coastal Communities National Partners Programme Citywide National Portfolio Organisation Great Places Venue Programme Coastal Communities National Partners Programme Citywide |
Unrestricted funds General £ 509,200 - 3,493 - - - 512,693 Unrestricted funds General £ 508,000 - 28,323 - - - 536,323 |
Restricted funds £ - 316,320 812,993 127,923 225,612 3,600 1,486,448 Restricted funds £ - 442,623 - 73,585 161,420 113,545 791,173 |
Total 2021 £ 509,200 316,320 816,486 127,923 225,612 3,600 |
|---|---|---|---|
| 1,999,141 | |||
| Total 2020 £ 508,000 442,623 28,323 73,585 161,420 113,545 |
|||
| 1,327,496 |
20
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
5 Investment income
| Interest receivable and similar income; Interest receivable on bank deposits Interest receivable and similar income; Interest receivable on bank deposits 6 Other income MAC Trust Tickets, workshops and learning visits 7 Expenditure on raising funds a) Costs of trading activities Fire station expenditure |
Unrestricted General £ 9,128 5,036 14,164 |
Unrestricted funds General £ 124 124 Unrestricted funds General £ 664 664 Total 2021 £ 9,128 5,036 14,164 Total 2021 £ - - |
Total 2021 £ 124 |
|---|---|---|---|
| 124 | |||
| Total 2020 £ 664 |
|||
| 664 | |||
| Total 2020 £ 37,900 162,451 |
|||
| 200,351 | |||
| Total 2020 £ 1,057 |
|||
| 1,057 |
21
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
8 Expenditure on charitable activities
| Ambition for Excellence Venue Programme Great Places Citywide Programme National Partners Programme Coastal Communities Governance costs (note 9) Ambition for Excellence Venue Programme Great Places Citywide Programme National Partners Programme Coastal Communities Governance costs (note 9) |
Unrestricted funds General £ - 373,295 - - - - 143,029 516,324 Unrestricted funds General £ - 930,604 - - - - 183,538 1,114,142 |
Restricted funds £ 89,062 254,715 342,136 47,736 134,586 95,035 - 963,270 Restricted funds £ 85,366 - 474,266 67,217 102,899 61,830 13,198 804,776 |
Total 2021 £ 89,062 628,010 342,136 47,736 134,586 95,035 143,029 |
|---|---|---|---|
| 1,479,594 | |||
| Total 2020 £ 85,366 930,604 474,266 67,217 102,899 61,830 196,736 |
|||
| 1,918,918 |
22
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
9 Analysis of governance and support costs
Governance costs
| Staff costs Wages and salaries Audit fees Audit of the financial statements Other fees paid to auditors Marketing and publicity Depreciation, amortisation and other similar costs Other governance costs Staff costs Wages and salaries Audit fees Audit of the financial statements Other fees paid to auditors Legal fees Marketing and publicity Depreciation, amortisation and other similar costs Other governance costs |
Unrestricted funds General £ 59,939 3,750 8,573 28,625 7,068 35,074 143,029 Unrestricted funds General £ 59,939 3,250 6,175 - 66,053 5,045 43,076 183,538 |
Restricted funds £ - - - - - - - Restricted funds £ - - - 13,198 - - - 13,198 |
Total funds 2021 £ 59,939 3,750 8,573 28,625 7,068 35,074 |
|---|---|---|---|
| 143,029 | |||
| Total 2020 £ 59,939 3,250 6,175 13,198 66,053 5,045 43,076 |
|||
| 196,736 |
23
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
10 Net incoming/outgoing resources
Net incoming/(outgoing) resources for the year include:
| Audit fees Depreciation of fixed assets |
2021 £ 3,750 7,068 |
2020 £ 3,250 5,045 |
|---|---|---|
11 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
12 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries Social security costs Pension costs |
2021 £ 423,714 33,540 8,078 465,332 |
2020 £ 366,423 29,707 7,022 |
|---|---|---|
| 403,152 |
The monthly average number of persons (including senior management team) employed by the charity during the year was as follows:
| Managerial Officers |
2021 No 1 14 15 |
2020 No 1 10 |
|---|---|---|
| 11 |
No employee received emoluments of more than £60,000 during the year.
Payroll costs above include £59,939 (2020: £59,939) relating to the 'gift in kind' value of staff numbers made available to the charity during the year, but where no actual charge was made.
24
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
13 Auditors' remuneration
| 13 Auditors' remuneration | ||
|---|---|---|
| Audit of the financial statements Other fees to auditors All other non-audit services |
2021 £ 3,750 8,573 |
2020 £ 3,250 |
| 6,175 |
14 Taxation
The charity is exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
15 Tangible fixed assets
| Cost At 1 April 2020 Additions At 31 March 2021 Depreciation At 1 April 2020 Charge for the year At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 |
IT Equipment £ 19,155 2,428 21,583 6,341 7,068 13,409 8,174 12,814 |
Total £ 19,155 2,428 |
|---|---|---|
| 21,583 | ||
| 6,341 7,068 |
||
| 13,409 | ||
| 8,174 | ||
| 12,814 |
25
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
16 Debtors
| Trade debtors Prepayments Accrued income VAT recoverable Other debtors |
2021 £ 24,912 18,475 396,967 21,969 1,358 463,681 |
2020 £ 77,297 17,864 224,558 16,177 43,146 |
|---|---|---|
| 379,042 |
17 Creditors: amounts falling due within one year
| 17 Creditors: amounts falling due within one year | ||
|---|---|---|
| Trade creditors Other taxation and social security Other creditors Accruals and deferred income Deferred income at 1 April 2020 Amounts released from previous periods Deferred income at year end |
2021 £ 126,557 - 83 135,574 262,214 2021 £ - - - |
2020 £ 278,262 9,429 4,515 201,227 |
| 493,433 | ||
| 2020 £ 856 (856) |
||
| - |
18 Obligations under leases and hire purchase contracts
Operating lease commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
| Other Within one year |
2021 £ - |
2020 £ 9,913 |
|---|---|---|
26
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
19 Pension and other schemes
Defined contribution pension scheme
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £8,078 (2020 - £7,022).
Contributions totalling £Nil (2020 - £1,647) were payable to the scheme at the end of the year and are included in creditors.
20 Funds
| Unrestricted General General Restricted Glass Exchange Great Place Programme Citywide Programme Coastal Communities Programme National Partners Programme Venue Programme Total restricted Total funds |
Balance at 1 April 2020 £ (10,377) 120,300 32,452 62,453 (23,245) 38,521 - 230,481 220,104 |
Incoming resources £ 735,263 - 316,320 3,600 127,923 225,612 812,993 1,486,448 2,221,711 |
Resources expended £ (516,324) (89,062) (342,136) (47,736) (95,035) (134,586) (254,715) (963,270) (1,479,594) |
Balance at 31 March 2021 £ 208,562 31,238 6,636 18,317 9,643 129,547 558,278 |
|---|---|---|---|---|
| 753,659 | ||||
| 962,221 |
27
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Unrestricted funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds, where the trustees, at their discretion, have created a fund for a specific purpose.
The basis for calculating 'free reserves' are after allowing for all designated funds, fixed assets and other non-current assets and liabilities.
General funds
General funds comprise those funds which the trustees are free to use for any purpose in furtherance of charitable objects.
Ambition for Excellence
This fund represents grants made by Arts Council England through the Ambition for Excellence Programme to the Glass Exchange project to enable Sunderland Culture to commission five contemporary artists to make new work in glass in partnership with Durham Cathedral.
Great Places
This fund represents a programme of work across the entire city working to increase opportunities for young people, support health and wellbeing, increase community cohesion and support artists and creative programme is received from National Lottery Heritage Fund, Arts Council England, Sunderland City Council, Sir James Knott Trust, Cultural Spring, Culture Bridge North East, Nexus, Sunderland Bid and Hays Travel.
Citywide Programme
This fund represents a programme of performances and events held in locations across the city and includes the artistic programme that accompanied the visit of the Tall Ships Races to Sunderland as well as commissions delivered as part of the commemoration events to mark the centenary of World War 1. Funds were received from Sunderland City Council and Imperial War Museum (14-18Now).
Coastal Communities
This fund represents grants secured in partnership with Sunderland City Council from the Ministry of Housing, Communities and Local Government for the delivery of activity which supports artists and creative businesses in Sunderland.
National Partners Programme
This fund represents a programme of exhibitions of work from the Arts Council Collection and associated learning, community engagement and digital projects. It is funded by grants from Arts Council England.
Governance costs
These costs represent funds expended on the set up and development of Sunderland Culture funded by Arts Council England and National Lottery Heritage Fund.
28
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
21 Analysis of net assets between funds
| Tangible fixed assets Net current assets/(liabilities) Total net assets Tangible fixed assets Net current assets/(liabilities) Total net assets |
Unrestricted General £ 8,174 200,388 208,562 Unrestricted General £ 12,814 (23,191) (10,377) |
Restricted £ - 753,659 753,659 Restricted £ - 230,481 230,481 |
Total funds 2021 £ 8,174 954,047 |
|---|---|---|---|
| 962,221 | |||
| Total funds at 31 March 2020 £ 12,814 207,290 |
|||
| 220,104 |
22 Related party transactions
During the year the charity made the following related party transactions:
Pub Culture Limited
Pub Culture Limited is related to the charity via virtue of common officers. The charity has incurred costs from Pub Culture Limited of £nil (2020: £1,340). At the balance sheet date the amount due to/from from Pub Culture Limited was £Nil (2020 - £5,946).
Sunderland Business Ltd
Sunderland Business Ltd is related to the charity via virtue of common officers. The charity has incurred costs from Sunderland Business Ltd of £5,000 (2020: £6,000). At the balance sheet date the amount due to/from Sunderland Business Ltd was £Nil (2020 - £Nil).
University of Sunderland
University of Sunderland is related to the charity via virtue of common officers. The charity has incurred costs from University of Sunderland of £340,512 (2020: £406,943). University of Sunderland has made contributions to incoming resources of £440 (2020: £250). The University of Sunderland have provided key staff members to the charity and this has been reflected as a gift in kind within the financial statements. The University of Sunderland also provide two office spaces for use by Sunderland Culture Limited which they do not charge for, this has been shown as a gift in kind of £20,000 (2020: £20,000) for the year. At the balance sheet date the amount due to University of Sunderland was £95,761 (2020 - £189,846).
Sunderland Music, Arts and Culture Trust
Sunderland Music, Arts and Culture Trust is related to the charity via virtue of common officers. Sunderland Music, Arts and Culture Trust made contributions to incoming resources of £9,128 (2020: £52,000) in the year for the management of the Fire Station. In relation to the management of the Fire Station the charity has incurred costs from Sunderland Music, Arts and Culture Trust of £nil (2020: £5,621). The charity has incurred other charitable costs from Sunderland Music, Arts and Culture Trust of £nil (2020: £2,083). At the balance sheet date the amount due to/from from Sunderland Music, Arts and Culture Trust was £Nil (2020 - £5,256).
29
Sunderland Culture Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Leighton Management Limited
Leighton Management Limited is related to the charity via virtue of common officers. They hold the head lease from Sunderland Music, Arts and Culture Trust for the Fire Station which Sunderland Culture Ltd were the management agent. The charity has collected and paid over rental income of £nil (2020: £25,224). At the balance sheet date the amount due to/from Leighton Management Limited was £Nil (2020 - £Nil).
Yorkshire Film Archive
Yorkshire Film Archive is related to the charity via virtue of common officers. The charity has incurred costs from Yorkshire Film Archive of £6,000 (2020: £125). At the balance sheet date the amount due to/from Yorkshire Film Archive was £Nil (2020 - £Nil).
The Customs House Trust Limited
The Customs House Trust Limited is related to the charity via virtue of common officers. The Customs House Trust Limited made contributions to incoming resources of £nil (2020: £100) in the year. At the balance sheet date the amount due to/from The Customs House Trust Limited was £Nil (2020 - £Nil).
Cultural Spring
Cultural Spring is related to the charity via virtue of common officers. Cultural Spring made contributions to incoming resources of £nil (2020: £1,000) in the year. At the balance sheet date the amount due to/from from Cultural Spring was £Nil (2020 - £1,000).
30