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2022-04-05-accounts

Charity registration number: 1191068

Sky full of stories

Annual Report and Financial Statements for the Year Ended 31 March 2022

Sky full of stories

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 3
Statement of Trustees' Responsibilities 4
Accountants' Report 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Financial Statements 8 to 14

Sky full of stories

Reference and Administrative Details

Trustees Mr A Ronchetti Mr P Arlborough Reverend H E Sherman Charity Registration Number 1191068 Principal Office 2 Western Terrace West Street Sompting Lancing BN13 0AU

Page 1

Sky full of stories

Trustees' Report

The trustees present the annual report together with the financial statements of the charity for the year ended 31 March 2022.

Objectives and activities

Public benefit

For the benefit of the public, to promote social inclusion of those who are in need by reason of physical or mental disability, age, social or economic position or some other disadvantage by: - The advancement of education and participation in the performing arts, in particular but not exclusively through music and multi-sensory storytelling and practitioner training workshops; - The active promotion of social inclusion for the public benefit by deterring people from becoming socially excluded, assisting the needs of those people who are socially excluded and supporting them to integrate with society.

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

The work of SFOS had continued for much of this year through continuing pandemic restrictions with online sessions. Whilst social encounters had become somewhat easier, the particular vulnerabilities of participants and the safety assessments of residential care settings meant that shielding and caution in face to face encounters remained firmly in place.

However, following the challenges of lockdown and despite continuing pandemic uncertainty, SFOS was eventually able to re-commence face to face groups with sessions spread over 4 rather than 5 sessions each week. The number of participants in each group were of necessity smaller than previously. The level of interest in attendance by the end of this financial year was more than capacity to find times and days to ‘fit’, and the logistics were somewhat challenging.

In one respect the smaller numbers per groups had helped to enable ‘gateway moments’ by persistently being able to try new sensory ‘windows’ to discover how to engage participants with a range of different sensory aspects until individuals are able to develop their social interaction to a greater extent. When the storyteller is able to find a way into the world of a participant who at first appears to be ‘closed off’ to engagement it brings great encouragement, not only to that individual but also to their carers and the ongoing work of SFOS.

Paul Tyldesley, Creative Director, commenced a Diploma course with the British Academy of Sound Therapy in order to make use of the skill and insights gained through this to apply specifically to working with people with special needs.

The Trustees note Paul’s persistence and commitment to enlarging and deepening the engagement of participants with the wider world and affirm the work he has continued to do through another difficult year. They recognize a need for developing the public-facing aspect of the work, including website development, greater social media presence and more promotional material.

Financial review

Policy on reserves

Sky full of stories requires a level of free reserves to safeguard the operation of the charity from unexpected delays in the receipt of grants, donations and other funding and unforeseen expenditure.

The Trustees, having reviewed the risks to which the charity might be subject to, have decided that the current level of reserves are sufficient.

Page 2

Sky full of stories

Trustees' Report (continued)

Going concern

There are currently no uncertainties about the charity continuing as a going concern.

Structure, governance and management

Nature of governing document

Sky Full of Stories was registered with the Charity Commission as a Charitable Incorporated Organization (CIO) on 28 August 2020. This report covers the period from 01 April 2021 until the end of the financial year 31 March 2022.

Organisational structure

The charity is registered as a Charitable Incorporated Organisation and its Governing Document is filed with the Charity Commission.

The day-to-day provision and management of services is in the hands of the Creative Director. The charity trustees, through regular meetings to receive reports from the Creative Director, exercise critical support and ensure due diligence in the charity’s affairs. They jointly have responsibility for seeking trustees with appropriate skills as and when the services provided by the charity expand.

Major risks and management of those risks

  1. Risk of break in the charity’s services due to sickness or absence of the Creative Director and small number of paid workers/volunteers

  2. Risk of drop in income due to reduced financial circumstances of participants, thus preventing the charity from fulfilling its aims and objectives.

Good communication with the trustees, together with networking and relationships with others working in the field, provide potential to draw on support if needed

The annual report was approved by the trustees of the charity on 17 January 2023 and signed on its behalf by:

Reverend H E Sherman

Page 3

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Statement of Trustees' Responsibilities

The trustees 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.

The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper 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 with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the constitution. The trustees 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.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the trustees of the charity on 17 January 2023 and signed on its behalf by:

......................................... Reverend H E Sherman Trustee

Page 4

Chartered Accountants' Report to the Trustees on the Preparation of the Unaudited Statutory Accounts of Sky full of stories for the Year Ended 31 March 2022

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Sky full of stories for the year ended 31 March 2022 as set out on pages 6 to 14 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW) we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/ members/regulations-standards-and-guidance/.

This report is made solely to the board of directors of Sky full of stories, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Sky full of stories and state those matters that we have agreed to state to the board of directors of Sky full of stories, as a body, in this report, in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Sky full of stories and its board of directors as a body for our work or for this report.

It is your duty to ensure that Sky full of stories has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and of Sky full of stories. You consider that Sky full of stories is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Sky full of stories. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Hodson & Co Wiston House 1 Wiston Avenue Worthing West Sussex BN14 7QL

17 January 2023

Page 5

Sky full of stories

Statement of Financial Activities for the Year Ended 31 March 2022

Note
Income and Endowments from:
Donations and legacies
Charitable activities
Total income
Expenditure on:
Charitable activities
Total expenditure
Net (expenditure)/income
Gross transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
14
Note
Income and Endowments from:
Donations and legacies
Charitable activities
Total income
Expenditure on:
Charitable activities
Total expenditure
Net (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds carried forward
14
Unrestricted
funds
£
-
16,674
16,674
(19,064)
(19,064)
(2,390)
3,369
979
(1,474)
(495)
Unrestricted
funds
£
2,703
-
2,703
(4,177)
(4,177)
(1,474)
(1,474)
(1,474)
Restricted
funds
£
4,500
-
4,500
(1,531)
(1,531)
2,969
(3,369)
(400)
1,615
1,215
Restricted
funds
£
-
1,615
1,615
-
-
1,615
1,615
1,615
Total
2022
£
4,500
16,674
21,174
(20,595)
(20,595)
579
-
579
141
720
Total
2021
£
2,703
1,615
4,318
(4,177)
(4,177)
141
141
141

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 14.

The notes on pages 8 to 14 form an integral part of these financial statements. Page 6

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(Registration number: 1191068) Balance Sheet as at 31 March 2022

Note
Fixed assets
Tangible assets
11
Current assets
Cash at bank and in hand
12
Creditors: Amounts falling due within one year
13
Net current (liabilities)/assets
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
14
Unrestricted income funds
Unrestricted funds
Total funds
14
2022
£
1,467
2,019
(2,766)
(747)
720
1,215
(495)
720
2021
£
-
141
-
141
141
1,615
(1,474)
141

The financial statements on pages 6 to 14 were approved by the trustees, and authorised for issue on 17 January 2023 and signed on their behalf by:

Reverend H E Sherman

The notes on pages 8 to 14 form an integral part of these financial statements. Page 7

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Notes to the Financial Statements for the Year Ended 31 March 2022

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

Sky full of stories meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. These accounts have been prepared on a receipts and payments basis.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised on a receipts basis.

Grants receivable

Grants are recognised on a receipts basis.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

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.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Page 8

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Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.

Government grants

Government grants are recognised on a receipts basis and are measured at the fair value of the asset received. Grants are classified as relating either to revenue or to assets.

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 £100.00 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:

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.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees 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.

Page 9

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Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)

Financial instruments

Classification

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2 Income from donations and legacies

Grants, including capital grants;
Government grants
Grants from other charities
3
Income from charitable activities
Primary purpose trading
Restricted
funds
£
-
4,500
4,500
Unrestricted
funds
General
£
16,674
16,674
Total
2022
£
-
4,500
4,500
Total
2022
£
16,674
16,674
Total
2021
£
1,423
1,280
2,703
Total
2021
£
1,615
1,615

Total for period ended 31 March 2022

Total funds £ -

Page 10

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Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)

5 Expenditure on charitable activities

Note
Music sessions
Staff costs
Allocated support
costs
Governance costs
Unrestricted
funds
General
£
10,849
-
5,940
2,275
19,064
Restricted
funds
£
1,376
-
105
50
1,531
Total
2022
£
12,225
-
6,045
2,325
20,595
Total
2021
£
1,152
1,745
1,280
-
4,177

6 Analysis of governance and support costs

Governance costs

Staff costs
Other staff costs
Legal fees
Marketing and publicity
Depreciation, amortisation and other similar costs
Other governance costs
Unrestricted
funds
General
£
1,107
770
5
287
106
2,275
Restricted
funds
£
-
-
50
-
-
50
Total
2022
£
1,107
770
55
287
106
2,325

7 Net incoming/outgoing resources

Net incoming resources for the year include:

Depreciation of fixed assets

2022 £ 287

8 Trustees remuneration and expenses

9 Staff costs

The aggregate payroll costs were as follows:

Page 11

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Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)

Staff costs during the year were:
Wages and salaries
Other staff costs
No employee received emoluments of more than £60,000 during the year
2022
£
-
1,107
1,107
2021
£
1,745
-
1,745

10 Taxation

The charity is a registered charity and is therefore exempt from taxation.

11 Tangible fixed assets

Cost
Additions
At 31 March 2022
Depreciation
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
12 Cash and cash equivalents
Cash on hand
Cash at bank
13 Creditors: amounts falling due within one year
Other creditors
Accruals
Furniture and
equipment
£
1,754
1,754
287
287
1,467
2022
£
-
2,019
2,019
Furniture and
equipment
£
1,754
1,754
287
287
1,467
2022
£
-
2,019
2,019
Total
£
1,754
1,754
287
287
1,467
2021
£
141
-
1,754
287
287
1,467
2022
£
-
2,019
2,019
141
2022
£
2,346
420
2,766

Page 12

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Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)

14 Funds

Balance at 1
April 2021
£
Unrestricted funds
General
General Fund
(1,474)
Restricted funds
Restricted Fund
1,615
Postcode Society Trust
-
Sussex Community
Foundation
-
National Lottery Community
Fund
-
Total restricted funds
1,615
Total funds
141
Unrestricted funds
General
General Fund
Restricted
Restricted Fund
Total funds
15 Analysis of net assets between funds
Tangible fixed assets
Current assets
Total net assets
Incoming
resources
£
Resources
expended
£
Transfers
£
Balance at
31 March
2022
£
16,674
(19,064)
3,369
(495)
-
-
(1,615)
-
1,775
(305)
(1,470)
-
1,575
(76)
(284)
1,215
1,150
(1,150)
-
-
4,500
(1,531)
(3,369)
1,215
21,174
(20,595)
-
720
Incoming
resources
£
Resources
expended
£
Balance at 31
March 2021
£
2,703
(4,177)
(1,474)
1,615
-
1,615
4,318
(4,177)
141
Unrestricted
funds
Restricted
Total funds at
31 March
General
£
funds
£
2022
£
1,467
-
1,467
(1,962)
1,215
(747)
(495)
1,215
720
Incoming
resources
£
Resources
expended
£
Transfers
£
Balance at
31 March
2022
£
16,674
(19,064)
3,369
(495)
-
-
(1,615)
-
1,775
(305)
(1,470)
-
1,575
(76)
(284)
1,215
1,150
(1,150)
-
-
4,500
(1,531)
(3,369)
1,215
21,174
(20,595)
-
720
Incoming
resources
£
Resources
expended
£
Balance at 31
March 2021
£
2,703
(4,177)
(1,474)
1,615
-
1,615
4,318
(4,177)
141
Unrestricted
funds
Restricted
Total funds at
31 March
General
£
funds
£
2022
£
1,467
-
1,467
(1,962)
1,215
(747)
(495)
1,215
720
Balance at
31 March
2022
£
(495)
-
-
1,215
-
1,215
720
141
Total funds at
31 March
2022
£
1,467
(747)
720

Page 13

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Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)

Current assets
16 Analysis of net funds
Cash at bank and in hand
Net debt
Net debt
Unrestricted
funds
General
£
(1,474)
At 1 April
2021
£
141
141
Restricted
funds
£
1,615
Financing cash
flows
£
1,878
1,878
At 28 August
2020
£
-
Total funds at
31 March
2021
£
141
At 31 March
2022
£
2,019
2,019
At 31 March
2021
£
-

Page 14