Charity registration number 1186136 CLWB IFOR BACH ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
CLWB IFOR BACH CONTENTS Pagg Trustees. report statement of trustees. responsibilities Independent auditorfs report 8-10 Stslemenl of financial activities Balance sheet 12 Stslemenl of cash flows Notes lo the financial ststemenls 14-29
CLWB IFOR BACH TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees present their annual report and financial statements for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with thè charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities." Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191. ObJectlves and actlvltles The principle objective of the charity is to 'advance the education of the public by encouraging the understanding and appreciation of contemporary music, including music of Welsh originllanguage in such ways as the trustees consider appropriate,. We are Committed lo In¢asIng audience engagement wlh new music, providing opportunities for arb'sls lo grow and develop, and support those looking for other potential pathways into the industry. We believe that everyone. of all backgrounds and abilities, should be able lo access music - be that on or off the stage- and focus our work on the following key areas to achieve our charitsble objectives.. Artists Development Audience Development Skills Development Community Engagemènt During the summer our trustees and stsff came together to create a 'Theory of Change, document for the charity. Facilitated by Richard Newton Consulting this piece of work will be the basis for the future development of our charitable objectives. As the year ended, we received confirmation fomi the Arts Council of Wales of revenue funding to support research to examine and explore best practise within the sector, lo develop a strategic framework for the delivery of our'Theory of Change,. Achievements and performance 2023 was a significant year for us as an organisation as il was both our 40th anniversary and our first full year operating as a charity. We successfully staged 438 events to a combined audience of just under 90,000, of which two-thirds 12821 were promoted by our in-house team, 35 of those being delivered in other venues in Cardiff and elsewhere in Wales. Average attendan¢e across all events was 202 and we saw a slight increase 19231 in total attendance Compared to 2022. Our signature event since 2018 is Swn Festival., a multi venue lebratiOn of new and emerging music staged over three days in mid-october. This year saw over 5,000 attendees and 122 artists play across 10 different venues. We were also able to expand our programme lo include a music industry Collferen to focus on the different pathways and opportunities available to those looking lo enter the music sector. Working in partnership with local further educational Colleges and universities we also provided volunteering opportunities for over 80 people during the event. The success of the festival in recent years has led lo funding by Welsh Govemmenl's through Event Wales, and in 2024 it is to be included in Cardiff Council's inaugural 'Cardiff Music City Festival,, a three week long celebration of music and culture. other notable activity for 2023 includes our work for the National Eisleddlod, Ta1 and a new project for the Welsh Government, which saw us stage our first overseas event. Stsged in a different location each year and delivered exdusively through the medium of Welsh, The National Eisteddfod is Wales, biggest arts festival. We have been responsible for the past three years for curating and promoting ils late night offering, Maes B, a festival in ils own right whose primary target audience is those aged 16-25. This is often the first festival experience for many attendees and is an important milestone in their continuing relationship with the Welsh language. We also provide programming support for other stages on the main Eisteddfod site.
CLWB IFOR BACH TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Tafwyl is another event whose primary focus is promoting the Welsh language and here again we provide our support to programme the festival's main music stages. Tthyl, which is held in the centre of Cardiff, is a free event and is open lo all. It now attracts over 50,000 people and has become a key focus for the city's wotk lo promote the language. Finally, we were asked to promote an event in Nantes as part of the Vvelsh Government's 'Wales in Fran, programme. Staged lo coincide wth the rugby Worfd Cup, the show featured artists from Cardiff and Nantes Iwhich is twinned with Cardiffl and proved lo be a great opportunity lo promote music from Wales lo a new audience. One of the featured artist5 from Nantes will play the 2024 edition of Swn Festival lo further strengthen the relationship between the two musical communities. Our work al the venue saw us increase the number of events featuring local artists. This has been a key focus for us in 2023 as we look to strengthen our relationship with the local music community, both on and off the stage. This led us to approach Creative Wales to help us curale a stsge at The Great Escape festival, a key milestone in the career development of new and emerging artists. Working in partnership with both Creative Wales and BBC'S Horizons initiative, we delivered a ho-daY programme featuring 8 Welsh artists. We worked with them before and after the showcase to ensure they maximised the opportunity, and we invited music industry professionals lo attend the event lo raise awareness of the artist performing. This work Is especially important due lo the lack of music industry infraslruclure in Wales as il aims to build relationships between Wales and the wider music industry, providing pathways and opportunities for both artists and industry professionals alike. Capital Redevelopment Project Our biggest project during 2023 remains the proposed capital redevelopment of our Womanby Street trRse. Following completion of RIBA 3 in 2022 we progressed to RIBA 4A in 2023. We also submitted the planring application for the project following completion of the agreement for lease process, the approval of which was still ongoing al the end of 2023. Our intention is lo redevelop our current home and the adjoining property lo create a new, fully accessible venue featuring two event spaces, which will address an identified gap in the current provision within the city. The smaller room will house new and emerging artists up lo a capacity of 200, while the bigger ground floor space will be able lo support an audience of up to 500. helping artists to progress towards the next step of their development. The larger overall capacity of the bLJilding will also enable us to fully realise the ambition of our charitable objectives as we look to broaden our scope of work lo increase opportunities for those looking to engage with the music sector- be it off or on the stage. With RIBA 4A completed and the planning approval due lo be finalised, we have taken the project as far as we can for now, the next stage requiring funding for the build itself before we can appoint the conlraclors. This is an ambitious project, and subslanlial funding is needed lo realise the work. 11 is also Currently a very challenging funding environment and we will need lo secure support from several sources to proceed. Flnanclal revlew Despite end of year turnover hitting the forecasted target, the cost of generating the income has increased post lockdown. A major contributing factor has been the changing make-up of our income over the course of the year.. with bar sales down and ticket income up, the amount we need to spend has risen sharply as a result. Coupled with our investment towards the next stage of our redevelopment project, which had been planned, end of year figures will show that our ServeS have decreased Compared lo our position al the end of 2022. Restricted fund income for the year are split across revenue and capital projects as follows.. Revenu9 Funding Creative Wales (Welsh Govemmentl.. The Great Escape Showcase Event Wales Iwelsh Govemmenll.. Swn Festival Arts Council of Vvales.. Theory of Change
CLWB IFOR BACH TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Capltal Fundlng Cardiff Council.. Redevelopment RIBA Stage 4A delivery Archrtectural Heritage Fund.. Redevelopment RIBA 4A delivery Charty Clwb Ifor Bach CIO continued lo invest in our core purpose and did so within a conlrDlled financial and operational framework, whilst meeting the expectations of our audiences, stakeholders and funders alike. Trading As outlined above turnover matched our forecast for the year, however, profilabilily decreased due lo the increase in our delivery costs. Trading conditions will need lo be continually reviewed through 2024 to ensure reserves remain al expected levels. Overheads Core expenditure was closely monitored and well controlled with some ongoing savings throughout the year, and we took every opportunity for support as provided by all the various government schemes and inilialives, to reduce costs and liabilities. Reserves pollcy The purpose of the unrestricted fund is lo provide funds for the day-lo-day running of the charity. Should a deficit be achieved on a specific project. a transfer of funds will be made from the unreslricled funds lo cover the deficit. Free reserves at the year totalled £66,621 12022.. £284,140) reflecting the investment in the capital redevelopment project. Plans for future perlods We continue lo focus on the followng core areas of business.. Clwb Ifor 8ach Clwb Ifor Bach, the venue, remains al the core of the organisalion's activity wlh the majority of our oulpul taking place within the spa$ available. Tourlng l Festlvals I Programmlng Touring and programming events outside Clwb Ifor Bach continues to be a strong area of business, enabling us lo maintain a longer term relationship with new and emerging artists as they build their audience in Wales, strengthen relationship with external partners within the creative sector and increase opportunities for those looking to gain a foothold in the industry as they progress in their career. Clwb Muslc We plan lo build on the work done lo strengthen our engagement with the wider music sector, improve the music industry infrastructure in Wales and increase engagement and opportunities for Welsh artists. Skills Development We are looking to create more opportunities, and develop more partnerships, lo increase engagement with the sector- both on and off the stage. structure, governance and management Governlng Document The charity is controlled by its governing document, a foundation conslilution, and is defined as a Charrtable Incorporated Organisalion and registered with the Charity Commission since 4 November 2019. Working name ofthe Charity The working name of the Charity is Clwb Ifor Bach. Recruitment and appointment of trustees New Iru5tee5 are elected by the Board in accordance with the charity's governing document.
CLWB IFOR BACH TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Trustee Inductlon and tralnlng The policy of Clwb Ifor Bach CIO is to provide each new trustee with a copy of the Charity Commission document 'The Responsible Trustee, and to provide background information about the work of the Charity at an induction session. Trustees are also encouraged to review prior documents, business and development plans, and encouraged lo attend training events about charity governan. Key management personnel Chief Executive.. Mr G Brychan Head of Music. MrA Williams Financial Manager.. Ms R Edwards Oryanisation The Trustees are responsible for the affairs of the charity. In particular they decide the strategic direction of the Charity and ensure that It IS solvent, well-run and fulfils the aims of the Charity. They delegate day-to-day operations and activities lo the Chief Executive Officer and Senior Management team. Vvhere there is a project of significant scale or risk - as with the ongoing Capital project - they lake professional advice, Including employing eXperIend consullanls and other specialists lo ensure that risks are minimised and the best possible result for the Charity is achieved. Their role as employers is also tsken seriously and time is given over to ensure compliance within all areas of employment law. staff seek lo implement the organisation's business plan currenuy in place, and report on progress on a regular basis lo the Board. Regular financial reports are provided to the Board and, when required, consultants, reports are commissioned. The 8oard has approved a procedure for online and olhei payments, and this is Implemented by thè Finance Manager, Technical Manager, Head of Music and CEO. Rlsk management The major risks lo which the organisation is exposed. as identified by the Trustees. have been reviewed and systems implemented to mitigate those risks. The management of cash flow during the period remained a priority and despite the challenges, creditors were paid as and when due. Core costs were well controlled throughout the year and systems established to manage risk. The business model always pre-supposed an expansion of activity outside of the building and the CIB staff now have systems well established lo manage events across Wales. Ajthough this has provided growth, il also comes with risk, and this has been noted by the Trustees.
CLWB IFOR BACH TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Reference and admlnlstratlve detslls Reglstered Charfty Name: Clwb Ifor Bach Registered Charity Number 118136 Principal Addresy 11 Womanby Street Cardiff CF10 18R Trustees Mr S Tudur (Chairl Ms C Rogers Ms L Squire MrA Elliott Ms T Marsh Ms L Price Mr M Phipps Ms L Herde Mr. L Jones (resigned 18 July 20241 Auditors Azels Audit Services Chartered Accounlanls & Ststulory Auditors Ty Drew Lime Tree Court Cardiff Gale Business Park Cardiff CF23 8AB Bankers Natvvest 96 Queen Street Cardiff CF10 2GR Solicitors Hugh James Two Central Sqaure Cardiff CF10 1FS
CLWB IFOR BACH TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees. report was approved by the Board of Trustees. T Marsh Trustee 29 October 2024
CLWB IFOR BACH STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The Iruslees are responsible for preparing the Trustees, Report and the financial slalements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view Df the slate of affairs of the charity and of the incoming resources and application of resources of the charity for that year. In preparing these financi81 stslemenls, the trustees are required to". select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP., make judgements and eslimales that are reasonable and prudent., slate whether applicable accounting stsndards have been followed, subject lo any material departures disclosed and explained in the financial slalements", and prepare the financial slalements on the going concern basis unless il is inappropriate to presunE that the charity will continue in operation. The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply wth the Charities Act 2011, the Charity IAccounls and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
CLWB IFOR BACH INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF CLWB IFOR BACH Oplnlon We have audited the finanaal statements of Clwb Ifor Bach (the 'charity'l for the year ended 31 December 2023 which comprise the slalement of financial aclivilies, the balance sheet, the statement of cash flcms and notes lo the financial stslemenls, including significant accounting policies. The finanaal reporting framework that has been applied in their preparation Is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial slatemenls". give a true and fair view of the slate of the charity's affairs as at 31 December 2023 and of its incoming resour¢es and appli¢alion of resources, for the year then ended.. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorts spOnSIbl1rt1eS for the audit ol the financial slalements 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 obtsined is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial slatemenls. we have concluded that the Iruslees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have nDI identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability lo continue as a going concern for a period of at least twelve rnonlhs from when the financial slalements are authorised for issue. Our responsibilities and the responsibilities of the trustees Imth respect lo going concern are described in the relevant sections of this report. Other inforniation The other information comprises the information induded in the annual report other than the finala1 statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opiniDn on the financial statements does not cover the other infomiation and we do not express any fomi of assurance conclusion Ihereon. Our responsibility is lo read the other Information and, in doing so, consider whether the other Information is materially inconsistent wth the financial slalements or our knoedge obtained in the course of the audit, 01 otherwise appears to be materially misstated. If we identify such malerral Inconsi51encies or apparent material misstslemenls, we are required lo determine whether this gives rise lo a material misstalemenl in the financial stslemenls themselves. If, based on the work we have performed, we conclude that there is a material misstslement of this other information, we are required lo report that fact. We have nothing to report in this regard. Matters on which wg ar& requirod to report by 8xception We have nothing to report in respect of the followng mallers in relation lo which the Charities (Accounts and Reports) Regulations 2008 require us lo report lo you if, in our opinion.. the informab'on given in the financial ststemenls is inconsistent in any material respect with the trustees, report., or sufficient accounting records have not been kept., or the financial slalements are not in agreement with the accounting records.. or we have not received all the information and explanations we reqLJire for our audit.
CLWB IFOR BACH INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CLWB IFOR BACH Responslbllltles of trustees As explained more fully in the ststement of trustees, responsibilities, the trustees are responsible for the preparation of the finanaal statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees delemiine is neSSary to enable the preparation of financial statements that are free from material misslalement, whether due lo fraud or error. In preparing the financial stalemenls, the trustees are responsible for assessing the charity's ability lo continue as a going concem, disclosing, as applicable, matters related lo going concern and using the going concem basis of accounting unless the trustees either intend to Cease operations, or have no realistic altemalive but to do so. Auditorfs responsibilities for the audit of the financial statements We have been appointed as auditor under se¢tion 144 of the Charities Act 2011 and report in accordan ¥Mth the Act and relevant regulations made or having effect thereunder. Our objectives are lo obtain reasonable assurance about whether the financial slalements as a whole are free from material misstatement, whelher dLJe to fraud or error, and to iSSLJe an auditorfs 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 IUKI will always detect a material misslalement when it exists. Misstatements can arise from fraud or error and are considered material rf, individually or In the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slatemenls. A further description of our responsibilities is available on the Financial Reporting Council's website al.. https.'Il www.frc.org.uklaudilorsresponsibilities. This description forms part of our auditor's report. Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, Induding fraud, are instances of non-compliance with laws and regulations. We design procedures in line wth our responsibilities, outlined above and on the Financial Reporting Council's website, lo delect material misslalements In respect of irregularities, including fraud. We obtain and update our understanding of the enlily, its activities, ils control environment, and likely future developments, including in relation lo the legal and regulatory framework applicable and how the entity is ¢omplying with that frameworf(. Based on this understanding. we identify and assess the risks of material misstatement of the financial stslements, whether due to fraud Dr error, design and perfomi audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary lo applicable laws and regulations, including fraud. In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which induded". Enquiry of management and those Charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud., Reviewng minutes Df meetings of those charged with governan., Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the enlily through enquiry and inspection,. Reviewing financial statement disclosures and testing to supporting documentation lo assess compliance with applicable laws and regulations", Performing audit work over thè risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness. evaluating the business rationale of significant Iransa¢lions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. Because of the inherent limitations of an audit, there is a risk that we will not delect all irregularities, including those leading to a material misslalement in the financial statements or non-compliance with regulation. This risk increases the more that compliance wlh a law or regulation 15 removed from the events and transactions reflècted in the financial stalemenls, as we will be less likely lo become aware of Instances of norpcomplian¢e. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentslions, or the override of internal control.
CLWB IFOR BACH INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CLWB IFOR BACH Other matters Under the Charities Act 2011, the charity was exempt from audit for the year ended 31 Dember 2022. As a consequen, the financial statements of the charity for the year ended 31 Dember 2022, which form the basis for the corresponding figures presented In the current period's financial stalemenls, were unaudited. For the year ended 31 Dernber 2023, the trustees were no longer able lo lake advantage of the exemption from audit available under the Charities Act 2011. Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities". Statement of Recommended Practice applicable to eharrties preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021" las amended) in preference to the Accounting and Reporting by Charities. Slalement of Recommended Practice issued on 1 April 2005 which is referred lo in the extant regulations bul has now been withdrawn. This has been done in order for the financial statements lo provide a true and fair view in accordance with current Generally Accepted Accounting Practice. Use of our report This report is made solely to the charity's trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reportsl Regulations 2008. Our audit wotk has been undertaken so that we might stale to the charity's trustees those matters we are required to slate lo them In an auditor'5 report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have fomied. Aw haF Azets Audit Services 30 October 2024 Charter9d A¢¢ountsnts statutory Auditor Ty Derw, Lime Tree Court Cardiff Gate Business Park Cardiff United Kingdom CF23 8AB Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 10-
CLWB IFOR BACH STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestrl¢ted Restrlcted funds funds 2023 2023 Total Unrestrlcted Restrlcted funds funds 2022 2022 Totsl 2023 2022 Notes Donations and legacies Charitable activities 5,480 176,632 5,480 1,872,788 430.597 485,957 430.597 561,957 1,696,156 76,000 Total Incomg 1,696,156 182,112 1,878,268 916.554 76,000 992,554 Charitable activities 1,799,736 126,632 1,926,368 470,577 76,000 546,577 Net loutgoingllincoming resources before transfers 1103,5801 55,480 148,1001 445,977 445,977 Gross transfers belween funds 55,480 {55,4801 Net lexpenditurellincome for the yearl Net movement In fund$ 148,1001 148,1001 445,977 445,977 Fund balances al 1 January 2023 840,977 840,977 395,000 395,000 Fund balances at 31 De¢ember 2023 792,877 792,877 840,977 840,977 The statement of financial activities indudes all gains and losses recognised in the year. All income and expenditure derive from continuing aclivilies.
CLWB IFOR BACH BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Flxgd assets Goodwll Other intangible assets 10 10 9,448 4,597 10,557 1,800 Total Intsngible assets Tangible assets 14,045 712,211 12,357 544,480 11 726,256 556,837 Currant assgts stocks Debtors Cash at bank and in hand 12 13 19,029 65,155 120,579 21,431 86,923 343,993 204,763 452,347 Creditors- amounts falling due within one year 14 1138,1421 1138,7001 Net current assets 66,821 313,647 Totsl assets less curront Ilabllltlo$ 792,877 870,484 Credltors: amounts falllng due after more than one year 15 129.5071 Net assets 792,877 840,977 Income funds nr Designated funds General unrestricted funds 18 726,256 66,621 556,837 284,140 792,877 840,977 792,877 840,977 The financial statements were approved by the Trustees on 29 October 2024 T Marsh Trustee 12-
CLWB IFOR BACH STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Cash flows from opgratlng actlvltlgs Cash generated fromllabsorbed by) operations 22 25,480 1127,9411 Investing activities Purchase of intangible assets Purchase of tangible assets 13,9841 1208,3121 Net cash used In Investlng actlvltles 1210,2961 Financing activities Transfer of bank loans Repayment of bank loans 76,934 {38,5981 Net cash (used inllgenerated from financing activities 138,5981 76,934 Net decroasa in cash and cash &quival8nts 1223,4141 151,0071 Cash and cash equivalents at beginning of year 343,993 395.000 Cash and cash equlvalents at end of year 120,579 343,993 13-
CLWB IFOR BACH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcles Charity infomiation Clwb Ifor Bach is a Charitable Incorporated Organisation whose principal office is 11 Womanby Street, Cardiff, CF10 1BR. 1.1 Accountlng conventlon The financial statements have been prepared in accordance wlh the charity's governing document, the Charities Act 2011, FRS 102 °The Financial Reporting Standard applicable in the UK and Republic of Ireland" l°FRS 102.1 and the Charities SORP 'Accounting and Reporting by Charrties.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021" leffective 1 January 20191. The charity is a Public Benefit Enlily as defined by FRS 102. The financial slalements have departed from the Charities IAccounls and Reportsl Regulations 2008 only lo the exlenl required lo provide a true and fair view. This departure has involved following the Statement of Recommended Practice for ¢harities applying FRS 102 rather than the version of the Stslemenl of Recommended practi which is referred to in the Regulations but which has since been withdrawn. The financial stslemenls are prepared in slerting, which is the functional currency of the charity. Monetary amounts in these financial stslements are rounded to the nearest £. The financial slalements have been prepared under the historical cost convention. The principal accounting policies adopted are sel out below. 1.2 Golny concern At the time of approving the financial stalemenls, the trustees have a reasonable expectation that the charity has adequate resources lo continue in operational existen for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting In preparing the financial stalemenls. 1.3 Charltable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Reslricled funds a subject to specific conditions by donors as lo how they may be used. The purposes and uses of the restricted funds are sel out in the notes to the financial slatemenls. Endowment funds are subject to specific Conditions by donors that the capitsl musl be maintained by the charity. 1.4 Income Income is recognised when the charity is legally entitled to it after any Performan Conditions have been met, the amounts be measured reliably. and il is probable that InMe will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount 14-
CLWB IFOR BACH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 A¢¢ounllng poll¢lg$ Icontlnugdl Income from grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has enlillemenl lo the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Capital grants are released lo the Statement of Financial Activities in the year of receipt. Fixed assets relating to capital grants are capilalised, and depreciation charged is offset against the grant Income, in a reslricled fund. Income from events is recognised at the dale the event tskes place. Match fundlng here a project has been undertaken on the condition that the grant funding will be matched by funding from the charity's resetves the income from the grant funder is shown as restricted income and only the expenditLJre redaimed by the grant funder is sho¥Nn as restricted expenditure. That part of the project expenditure which is met by the charity is induded within unrestricted expenditure. 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation lo transfer economic benefit lo a third paty, 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 classified by activity. The costs of each activity are made up of the total of dir1 cost5 and shared costs, Including support costs involved In undertaking each aclivily. Direct costs attributable lo a single activity are allocated directly lo that activity. Shared c051s which contribute lo more than one activity and support costs which are not attributable to a single a¢livily are apportioned between those activ1($ on a basis consistent with the use of resources. Central staff costs are allocated on the basis of lime spent. Costs associated with events are recognised at the date at which the event takes place. Expenditure on charitable activities includes all costs relating lo the furtherance of the charitys objectives as slated in the Iruslee's report and their associated support costs. Supt>ort costs have been allocated between governance costs and other support. Some direct eosls have been reclassified to support costs in the current year to beller reflect the underlying nature of the expenditure. This change in classification has no impact on the overall financial position and has been made lo hance clarity within the financial stslemenls. Govemance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice. 1.6 Intangible fixed assets - goodwill Goodwill represents the eXsS of the cost of acquisition of unincorporated businesses over the fair value of nel assets acquired. It is initially recognised as an asset at cost and is SLJbsequenlly measLJred at cost less accumulated amortisation and accumulated impairment losses. Goodwill shall be considered to have a finite useful life, and shall be amortised on a systematic basis over ils lrfe, being 10 years from 2018. 1.7 Intangible fixed assets other than goodwill Intangible assets acquired separately from a business are recognised al cost and are subsequently measured at cost less accumulated amortisation and accumulated impaimient losses. Intsngible assets acquired on business combinations are recognised separately from goodwill al the acquis11ion date where il is probable that the expected future economic benefits that are attributable lo the 855et wll flow to the enlily and the fair value of the asset can be measured reliably," the intangible asset arises from contractual or other legal rights,. and the intangible asset is separable from the entity. 15-
CLWB IFOR BACH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 A¢¢ounllng poll¢lg$ Icontlnugdl Amortisation 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.. Website 3 Years Straight Line 1.8 Tanglble fixed assets Tangible fixed assets are initially measured al cost and subsequently measured al cost or valuation, net of depreciation and any impaimient losses. Depreciation is recognised so as lo write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Freehold land and buildings Plant and equipment Fixtures and fittings Computers 2Qkn Straighl Line 25'h Reducing Balance 250/0 Reducing Balance 25% Reducing Balan Costs incurred lo dale associ8led with the redevelopment project that meet the criteria to be ¢apilalised are classified wthin tsngible fixed assets and are not depreaated. The gain or loss arising on the disposal of an asset is determined as the difference belween the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial acb'vities. 1.9 Impairment of fixed assets Al each reporting end dale, the charity reviews the carrying amounts of ils tangible and intangible assets lo 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 impaimient loss lif anyl. 1.10 Stocks Stocks are stated at the lower of cost and estimated selling pri less costs to complete and sell. Cost mprises direct materials and, where applicable. direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution al no or nominal consideration are measured the lower of replacement cost and cost. Nel realisable value is the èstimated selling price less all estimated costs of completion and costs to be incurred in marketing. selling and distribution. 1.11 Cash and cash equivalents Cash and cash equivalents indude cash in hand, deposits held at call with banks, other Short-lerm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 16-
CLWB IFOR BACH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 A¢¢ounllng poll¢lg$ Icontlnugdl 1.12 Flnancial instrum8nl$ The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Olher Financial Instruments Issues, of FRS 102 to all of ils financial inslrumenls. Financial instruments are recognised in the charity's balance sheet when the charity becomes party lo the contractual provisions of the inslrumenl. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to sel off the recognised amounts and there is an intention lo settle on a net basis or to realise the asset and setue the liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balan8, are initially measured at transaction price including transaction costs and are subsequently carried al amortised cost using the effective interest method unless the arrangement conslilules a financing Iransaclion, where the transaction is measured at the present value of the ftjlure receipts discounted al a market rale of interest. Financial assets classified as receivable within one year are not amortised. 8aslc flnanclal liabilities Basic financial liabilities, including creditors and bank loans are initially recognised al transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured al the present value of the future payments discounted at a market rale of interest. Financial liabilities classified as payable wthin one year are not amortised. Debt instruments are subsequently carried al amortised cost, using the effective interest rale method. Trade creditors are obligations to pay for goods or setvices that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially al transaction price and subsequenuy measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's contractual obligations expire or are dischaTged or cancelled. 1.13 Employee benefits The costs of short-temi employee benefits are re¢ognised as a liability and an expense, unless those costs are required to be recognised as part of the ¢ost of stock or fixed assets. The cost of any unused holiday enlilement is recognised in the period in which the employee's services are received. Teminalion benefits are recognised immediately as an expense when the Charity is demonstrably committed lo lerminale the employment of an employee or to provide termination benefits. 1.14 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 1.16 Leases Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease. 17-
CLWB IFOR BACH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Crltlcal accountlng estlmates and Judgements In the application of the charity's accounting policies, the Iruslees 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 eslimales and associated assumptions are based on historical experience and other factors that are ¢onsidered lo be relevant. Actual results may differ from these eslimales. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting eslimales are recognised in the period in which the estimate is revised where the revision affects cnly that period, or in the period of the revision and future periods where the revision affects both current and future periods. Donations and legacies Restricted Unrestricted funds funds 2023 2022 Donations and gnls 5,480 430,597 The net assets from Clwb Ifor Bach CIC (Company number 109089731 were transferred lo the Charilab incorporated organisalion on 1 October 2022. The net assets consisted of unrestricted net assets of £430,597. 18-
CLWB IFOR BACH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Charltable actlvltles 2023 2022 servIs and events Entrance fee income Grants Bar income Venue hire fees Other income 68,419 812,392 176,632 769,437 41,908 4,000 199,996 76.000 267,979 10,509 7,473 1,872,788 561,957 Analysis by fund Unrestricted funds Restricted funds 1,696,156 176,632 485,957 76,000 1,872,788 561,957 Government grants Welsh Government PRS Cardrff County Council Archileclural Heritage Fund 125,000 1,832 35,000 15,000 75,000 1,000 176,632 76,000 19-
CLWB IFOR BACH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Charltable actlvltles 2023 2022 staff costs Depreciation and impairment Stock Purchases Marketing Performers Event Costs Security Costs Insurance Premise costs Rèpairs & Maintenance Cleaning Hire of Equipment Telecommunications Office & Travelling Expenses Computer software, Consumables & Maintenance Entertainment licenses Bank Charges 346,039 40,877 295,740 121,827 10,169 109.405 28,612 112,677 66,775 25,820 2,951 4,208 7,483 14,083 671 1,546 7,548 1,951 11.182 5,295 452,501 193,921 80,861 11,351 23,749 27,074 53,914 22,916 6,051 34,739 15,111 22,053 17,526 1,844,423 532,2Q3 Share of support costs Isee note 61 Share of governance costs (see note 61 247,757 34,188 1,271 13,103 1,926,368 546,577 Analysis by fund Unrestricted funds Restricted funds 1,799,736 126,632 470,577 76,000 1,926,368 546,577 -20-
CLWB IFOR BACH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Support costs Support Governance costs costs 2023 Support Governance costs costs 2022 Staff costs Accounlacy and payroll Costs Marketing Memberships HR costs Sundry expenses 148,396 148,396 8,886 76,258 1,200 10,570 2,447 8,886 76,258 1,200 10,570 2,447 1,271 1,271 Audit fees Independent Examination fees Legal & Professional Fees Trustee Expenses 12,000 12,000 2,750 2,750 21,178 1,010 21,178 1,010 9,832 521 9,832 521 247,757 34,188 281,945 1,271 13,103 14,374 Analysed beeen Charitable adivilies 247,757 34,188 281,945 1,271 13,103 14,374 Governance costs includes payments lo the auditor of £12,000 in respect of audit fees {2022'. £2,750 for Independent examination). Trustees None of the Iruslees lor any persons connected with them) received any remuneration or benefits from the charity during the year. Two trustees were reimbursed for expenses during the year of £1,01012022." £5211. Employees The average monthly number of erllployees during the year was". 2023 Number 2022 Number 35 30 Employment costs 2023 2022 Wages and salaries Social security costs Olhei pension costs 459,374 28,039 7,022 111,257 8.363 2,207 494,435 121,827 21
CLWB IFOR BACH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Employ99$ Icontlnugdl Kgy managament personnel The key management personnel as detailed in the Iruslees report received benefits linduding gross salary, employers national Insuran and employers pension Contributions) totalling £139,85612022'. £35,413). There were no employees whose annual remuneration was more than £60,000. Taxallon The charity is exempl from lax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied lo ils charitable objects. 10 Intsnglble flxed assets GolYl11 Web$ite Totsl Cost Al 1 January 2023 Additions- separately acquired 11,085 2,213 3,984 13,298 3,984 Al 31 December 2023 11,085 6,197 17,282 Amortisation and impairment Al 1 January 2023 Amortisation charged for the year 528 1,109 413 1,187 941 2,296 Al 31 December 2023 1,637 1,600 3,237 Carrying amount Al 31 December 2023 9,448 4,597 14,045 Al 31 December 2022 10,557 1,800 12,357 -22-
CLWB IFOR BACH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 11 Tanglblg flx9d 0$$ots Icontlnugdl 12 Stocks 2023 2022 Raw materials and consumables 19,029 21,431 13 Debtors 2023 2022 Amounts falling due within one year- Trade debtors Other debtors Prepayments and accrued income 59,884 37 5,234 62,272 4,961 19,690 65.155 86,923 14 Creditors: amounts falling due within one year 2023 2022 Not9$ Bank loans Other taxation and social security Trade credilois Other creditors Accruals and deferred income 16 38,336 10,413 75,602 1,791 12,000 47,427 20,447 66,265 1,261 3,300 138,142 138,700 15 Creditots- amounts falling due after rnore than one year 2023 2022 Notes Bank loans 29,507 16 Loans and overdrafts 2023 2022 Bank loans 38,336 76,934 Payable wthin one year Payable after one year 38,336 47,427 29,507 -24-
CLWB IFOR BACH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 16 Loans and ovgrdrafts Icontlnugdl The bank loan is secured by a fixed charge over the property at 11 Womanby Street, Cardiff CF10 1 BR. -25-
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CLWB IFOR BACH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 18 Deslgnated funds The Income funds of the chaiily include the following designated funds which have been sel aside out of unrestricted funds by the Iruslees for specific purposes". Movement in funds InGoming Resource5 re50urGes expended Balance at 1 January 2022 Transfers BalanGe at 1 January 2023 Transfers Balan¢e at 31 December 2023 Intangible Fixed Assets Tangible Fixed Assets Redevelopme nt project 12,357 12,357 3,984 12,2961 14,045 544,480 544,480 24,031 138.5811 529,930 182,281 182,281 556,837 556,837 28,015 140,8771 182,281 726,256 Designated funds represent the investment in intangible and tsngible fixed assets. -27-
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CLWB IFOR BACH NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 20 Operatlng lease commltments At the reporting end date the charity had outstsnding commitments for ftjture minimum lease payments under non-cancellable operating leases, which fall due as follows.. 2023 2022 Within one year Between two and five years 24,384 11,090 35,474 21 Rglatgd party transa¢tlon$ The charity received a donation of £nil 12022.. £430.5971 from Clwb Ifor Bach CIC, which transferrred all its activities, assets and liabilities to the ¢harily on 1 October 2022. 22 Cash generated from operatlons 2023 2022 {Defiatllsurplus for the year 148,1001 445,977 Adjustments for.. Transfer ol goodw"Il Transfer ol intangible assets Transfer of tangible fixed assets Depreciation and impairment of tangible fixed assets {11,0851 12,2131 1553,7081 10,169 40,877 Movements in working capital". Decreasellincreasel in stocks Decreasellincreasel in debtors Incrèase in creditors 2,402 21,768 8,533 121,4311 186,9231 91,273 Cash generated fromllabsorbed by) operations 25,480 1127,9411 23 Anatysis of changes in net funds At 1 January 2023 Cash flows At 31 D8cemb8r 2023 Cash al bank and in hand 343,993 1223,4141 120,579 Loans falling due within one year Loans falling due after more than one year 147,4271 129,5071 9,091 29,507 138,3361 267,059 1184,8161 82,243 -29-