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2023-05-31-accounts

Nuneaton Arts CIO

Trustees’ Report and Financial Statements for the year ended 31 May 2023

Registered Charity number 1193774

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Index
Page
Report of the Trustees 3-6
Statement of Trustees responsibilities 7
Report of the Independent Examiner 8
Statement of Financial Activities 9
Balance sheet 10
Accounting policies and notes to the financial statements 11-18

2

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Report of the trustees

The trustees are pleased to present their annual report together with the financial statements of Nuneaton Arts CIO (‘Nuneaton Arts’) for the year ended 31st May 2023.

The financial statements comply with the Charities Act 2011, Nuneaton Arts’ Constitution and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (updated 1 January 2019).

OBJECTIVES AND ACTIVITIES

The Objects of Nuneaton Arts are “to advance education in the arts to those residing in the borough of Nuneaton and Bedworth and the surrounding areas in particular, but not exclusively, through the provision of public concerts, dramatic performances, recitals, art exhibitions, lectures, art festivals and any other art events that advances the education in the arts.”

Nuneaton Arts operates the Abbey Theatre, which provides performing and rehearsal facilities for local groups involved in presenting music and drama in Nuneaton. Hire costs are kept to an absolute minimum, and a tiered tariff is designed to favour local amateur groups over commercial enterprises and professional users. In addition to the basic facilities, we also offer training and assistance to user groups with production design, set design, set building, lighting and sound – these are all provided by our volunteers, mostly without charge. We have for many years been involved with other groups in hosting competitive events – the Nuneaton Festival of Arts is an example of this. We also promote events ourselves, to extend the variety of dramatic, comic and musical entertainment available locally. We run the Warwickshire One-Act Play Festival each year, which is an initial round of the All England Theatre Festival, and frequently host the regional quarter or semi-final rounds.

Public benefit

In shaping our objectives and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’. Nuneaton Arts relies on grants and the income from fees and charges to cover its operating costs. Affordability and access to our programme is important to us and is reflected in our pricing policy.

3

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Report of the trustees (continued)

ACHIEVEMENTS, PERFORMANCE AND FUTURE PLANS

We took over the assets and liabilities of The Nuneaton Arts Council, an Unincorporated Charity which had been operating since 1969 on 1 June 2021. We continue to carry out all the functions of the old charity but with an increased emphasis on education. As an Incorporated Charity we have a wider Board of Trustees, are able to employ staff, own or lease buildings, and have increased access to grant funding – previously staff were employed and buildings leased by the Trustees acting as individuals. We follow the Association model for charities, which means we are a membership organisation where the members appoint the Trustees, and the Trustees manage the Charity on behalf of the membership. We do not charge for membership at present.

The theatre auditorium was in use on 205 days during the year, there were 116 public performances on 103 days, with a further 88 days of rehearsals/set building and 14 days with educational activities. This was despite the cancellation of our main pantomime, which we had hoped would return after the Covid interruption. In addition many more activities took place in the rehearsal rooms, bar and the Courtyard outdoor performance space. The “Take a Bow” initiative, started during 2020 to increase involvement in Drama for primary school pupils, is now operating in 5 schools locally and has resulted in a number of school visits involving costume, props and backstage work. We have also introduced daytime activities (Yoga, Art and Calligraphy courses initially) to increase the diversity of our public offering and also to increase daytime use of the Abbey Theatre building.

Since August 2022 we have had a Development Officer in place on a part-time paid basis. This has improved our community involvement considerably and, following a successful funding bid to the National Lottery Community Fund, this post will continue into next year.

After several years of searching we have taken a lease on a 1000 sq ft storage and workshop building in Stockingford – this replaces the low and damp 700 sq ft building we previously leased from NBBC in The Parade. As well as giving us almost 50% more floor area than the old building it is also far higher, increasing the usable storage and workshop area to almost 1500 sq ft. We expect to surrender the lease on The Parade building at the end of June 2023 once we have cleared it completely.

Nuneaton and Bedworth Borough Council (NBBC), working in conjunction with the Transforming Nuneaton project team, submitted a bid under the Levelling Up 2 Government initiative – this was to create a new Theatre, Arts and Conference Centre in the centre of the town (on the current Bus Station site). Unfortunately this bid was not successful – it has since been indicated that there will be a Levelling Up 3 funding round but the timing and basis for this are uncertain. Since the announcement of the bid outcome we have been working with NBBC to secure the future of the existing theatre building – we lease the premises from NBBC but have not had a current lease for several years. As well as lacking certainty going forward this leaves us ineligible for virtually all building-related grants, as funding bodies normally require a minimum of 5 years outstanding on leased premises.

We updated and redecorated the bar area during the year, including changing the old sofas and coffee tables for easily moveable tables and chairs, This has made the area far more adaptable. We have also made substantial investments in the theatre lighting, sound and stage equipment, including our first purchase of LED moving lights. As well as reducing electricity usage this also reduces the necessity to use ladders to focus lighting for shows, resulting in both time savings on setup and also reduced working at height risk.

4

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Report of the trustees (continued)

FINANCIAL REVIEW

We have continued strict controls on day-to-day expenditure but have made significant investments in the theatre infrastructure following the return to more normal levels of revenue after the Covid pandemic. We are fortunate that we were largely insulated from energy price increases as we had negotiated fixed rate supply agreements with suppliers in 2020 and 2021. We have made provision in future budgets for the current electricity and gas charges.

Reserves policy and risks

The Trustees have set the required level of reserves to £50,000, and this level is kept under review. The level is considered adequate to replace any major item of equipment immediately should the need arise, or to sustain the Abbey Theatre for a sufficient period should normal business be interrupted. The building fabric is the responsibility of NBBC and the reserves do not therefore need to cover major building items. Current free reserves are £102,079. The remaining £52,079 still appears high compared to our target figure. If we do achieve a realistic lease we have a number of significant projects in mind, including provision of disabled access to the upper floor

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Nuneaton Arts CIO is a registered charity (No. 1193774) governed by its Constitution dated 11 March 2021.

Management structure

Membership of Nuneaton Arts is open to all persons with an interest in the arts and resident within 15 miles of Nuneaton centre. Voting is by simple majority, in person only, at the Annual General Meeting (‘AGM’) of Nuneaton Arts (or at any Extraordinary General Meeting of Nuneaton Arts).

Nuneaton Arts is managed on behalf of the membership by a Board of Trustees, who are elected by the membership. Nuneaton and Bedworth Borough Council may nominate two persons to the Board of Trustees who may not meet the residence requirement for Nuneaton Arts members. The Board of Trustees normally meets about 10 times each year. Specific operational functions are delegated by the Board to individual office holders, who are not necessarily Trustees. These office holders mostly work within delegated budgets and report to the Board at each meeting.

5

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Report of the trustees (continued)

Appointment of trustees, induction & training

Trustees are appointed annually at the AGM. They serve a fixed term of 3 years, so normally one third of the Board of Trustees will stand down each year. Those standing down are eligible to stand for re-appointment.

If vacancies remain after the appointment of Trustees at the AGM then the Board of Trustees may appoint further Trustees. Trustees are invited to undergo appropriate training at the Charity’s expense.

REFERENCE AND ADMINISTRATIVE INFORMATION

Trustees:

The Trustees are: David Adams Michael Colin Chappell (re-appointed 18 January 2023) Anthony Richard Deeming David John Griffith (Vice Chair) Nathan Mark Harvey (re-appointed 18 January 2023) Christopher David Hill (appointed 1 March 2023) Gemma Louise Johnson (appointed 18 January 2023) Rhian Margaret Luke Phillip James Malkin David Anthony Sedgwick (Chair) (re-appointed 18 January 2023)

Charity Number:

1193774

Registered Office:

The Abbey Theatre, Pool Bank Street, Nuneaton, Warwickshire, CV11 5DB

Independent Examiner:

Karen Hanlan Independent Examiner Ltd 1 Saracen Close, Ettington, Warwickshire, CV37 7SZ

Bankers:

Lloyds Bank plc

Approved by the Board and signed on its behalf by:

David Griffith Trustee

Date: 9[th] October 2023

6

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Statement of trustees’ responsibilities

The trustees are required to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity and of the surplus or deficit incurred by the charity for that year. In preparing those financial statements the trustees are required to:

The trustees have overall responsibility for ensuring that the charity has an appropriate system of controls, financial and otherwise.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy, at any time, the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011.

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 and to provide reasonable assurance that:

7

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Independent Examiner’s Report to the Trustees of Nuneaton Arts CIO

I report to the trustees on my examination of the accounts of Nuneaton Arts CIO (‘the Charity’) for the year ended 31 May 2023 which are set out on pages 9 to 18.

Responsibilities and basis of report

As the charity trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

2) the accounts do not accord with those records; or

3) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Karen Hanlan, Institute of Chartered Accountants, England & Wales Karen Hanlan Independent Examiner Limited

Date: 9 October 2023

1 Saracen Close Ettington Warwickshire, CV37 7SZ

8

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Statement of financial activities

Note
Income from:
Donations and legacies
1
Charitable Activities
2
Trading activities
3
Total income
Expenditure on:
Raising funds
4
Charitable activities
4
Total expenditure
Net (expenditure)/ income for
year and net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Restricted
Total
2023
Total
2022
£
£
£
£
3,377
9,800
13,177
25,897
76,768
-
76,768
63,634
61,758
-
61,758
40,873
141,903
9,800
151,703
130,404
28,603
-
28,603
18,176
114,829
2,880
117,709
90,251
143,432
2,880
146,312
108,427
(1,529)
6,920
5,391
21,977
132,508
-
132,508
110,531
130,979
6,920
137,899
132,508

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities and is unrestricted.

9

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Balance sheet
Notes
Fixed Assets
Tangible assets
6
Current Assets
Bar stock
Technical stock
Debtors
7
Cash at bank and in hand
Current Liabilities
Creditors: falling due within one year
8
Net current assets
Creditors: falling due after one year
Net assets
Funds of the Charity:
Restricted Funds
9
Unrestricted Funds
Total Charity Funds		 31 May
2023
31 May
2022
£
£
35,820
17,830
5,239
4,007
509
439
8,656
8,365
103,531
111,935
117,935
124,746
(15,856)
(10,068)
102,079
114,678
-
-
137,899
132,508
6,920
-
130,979
132,508
137,899
132,508

The accompanying accounting policies and notes form part of these financial statements.

The financial statements have been prepared in accordance with the requirements of the Charity Commission

Approved by the Trustees and signed on their behalf by:

David Griffith Trustee

Date: 9[th] October 2023

10

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Principal accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (updated 1 January 2019) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

In preparing these financial statements Update Bulletin 1 to the Charities SORP (FRS102) has been adopted and consequently a Statement of Cash flows has not been prepared.

Nuneaton Arts CIO meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Preparation of the accounts on a going concern basis

The financial statements have been prepared on a going concern basis which assumes that the Charity will continue to operate. The validity of this assumption is dependent upon the continuance of support from the charity's funders and in response to the progress made by the Charity in pursuing a viable budget. The Charity's current business plan shows that the Charity will be able to operate in the foreseeable future. Based on this understanding, the trustees believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments, which would result from the basis of preparation being inappropriate.

c) Funds

General accumulated funds are unrestricted funds available for general purposes and include funds designated for a particular purpose; the use of such funds remains at the discretion of the trustees.

Restricted funds are funds subject to conditions imposed by the donor or by specific terms of the appeal under which the funds are raised. The restrictive conditions are binding upon the Charity.

d) Income

Items of income are recognised and included in the accounts when all of the following criteria are met:

11

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

-

Principal accounting policies (continued)

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Income is deferred when monies are received in advance relating to performances or bookings commencing in the following financial year.

g) Tangible fixed assets

Depreciation is provided at a rate calculated to write off the cost on a straight line basis over a period of less than the estimated useful life of the assets as follows:

Property refurbishment – 10%pa

Fixtures, fittings and equipment – 25%pa

Fixed assets are capitalised depending on their value at the discretion of the trustees.

h) Stock

Stock is included at the lower of cost and net realisable value.

i) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.

j) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

12

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Principal accounting policies (continued)

k) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

l) Taxation

As a registered charity no provision is considered necessary for taxation.

Notes to the financial statements

1. Donations and legacies

Donations
Grants
-
Nuneaton & Bedworth BC Covid Support grant
-
Nuneaton & Bedworth Annual Grant
-
Nuneaton & Bedworth NDR payments
-
HMRC Job retention payments
-
Other
-
-
Restricted grant from Big Lottery Community Fund for
Coronation Celebration & legacy event		 Year ended
31 May 2023
Year ended
31 May 2022
£
£
727
1,052
-
4,000
2,650
2,650
-
17,000
-
345
-
850
3,377
25,897
9,800
-
13,177
25,897

There was no restricted income in 2021/22

13

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Notes to the financial statements (continued)

2. Charitable Activities

Nuneaton Arts productions & courses
Theatre hire
Room hire
Equipment rental and sales
Advertising sales
Ticket printing
Other
Trading activities
Bar and coffee bar takings		 Year ended
31 May
2023
Year ended
31 May
2022
£
13,601
20,311
42,419
25,594
10,658
8,833
9,746
8,034
-
160
344
400
-
302
76,768
63,634
Year ended
31 May
2023
Year ended
31 May
2022
£
£
61,758
40,873

3. Trading activities

14

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Notes to the financial statements (continued)

4. Expenditure

Raising funds:
Bar & coffee bar purchases
Bar equipment repairs & renewals
Cost of Theatre activities:
Hired-in equipment, recharged
Licence fees
Theatre equipment repairs & renewals
Nuneaton Arts productions & courses
Courtyard Theatre set up
Print, stationery and postage
Marketing
Educational support
Miscellaneous
Establishment expenses:
Rent
Heating & lighting
Rates & water
Cleaning materials & hygiene services
Maintenance contracts
Repairs & renewals
Insurance
Administrative expenses:
Accountancy costs/Professional fees
Telephone & internet
Staff costs
Bank charges
Depreciation of fixed assets
Governance costs:
Independent Examiner's fee
Total charitable expenditure		 Year ended
31 May 2023
Year ended
31 May 2022
£
£
27,850
18,176
1,023
-
28,603
18,176
1,786
2,278
3,968
3,372
5,801
3,789
12,754
19,716
-
234
1,526
1,001
4,128
785
7,592
405
1,310
1,157
38,865
32,737
2,448
1,448
10,816
4,659
3,303
2,626
21,316
15,883
2,292
2,542
3,366
432
7,360
6,672
50,901
34,262
-
1,746
2,203
8,817
7,749
721
269
15,658
12,031
26,942
22,252
1,000
1,000
1,000
1,000
117,709
90,251

15

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Notes to the financial statements (continued)

5. Staff costs, trustee remuneration and expenses

No employee earned more than £60,000 per annum. Gross salaries paid were £8,817 (2022: £7,761). No social security payments or pension contributions were made in the year (2022: £nil).

The average number of employees during the year was one (full-time equivalent 0.4) (2022: 0.4).

No remuneration was paid to trustees. During the year expenses totalling £2,382.41 were reimbursed to 6 Trustees for costs incurred on behalf of the charity relating mainly to the bar refurbishment, equipment and repairs (2022: £2,660.65).

6. Tangible fixed assets

Cost
At beginning of period
Additions
Disposals
At end of period
Depreciation
At beginning of period
Charge for the period
At end of period
Net Book Value
At 31 May 2023
At 31 May 2022		 Property
refurbishment
£
Fixture,
Fittings &
Equipment
£
Total
£
87,834
181,471
269,305
-
33,648
33,648
-
-
-
87,834
215,119
302,953
78,905
172,570
251,475
2,306
13,352
15,658
81,211
185,922
267,133
6,623
29,197
35,820
8,929
8,901
17,830

16

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Notes to the financial statements (continued)

7. Debtors

Accrued income
Prepayments
8. Creditors: amounts falling due within one year
Accruals
Deferred income (deposits received in advance)
Deferred income:
Balance brought forward
Transferred to statement of financial activities
Deferred in period
Balance at end of period		 31 May
2023
31 May
2022
£
£
1,838
3,625
6,818
4,740
8,656
8,365
31 May
2023
31 May
2022
£
£
9,824
7,244
6,032
2,824
15,856
10,068
31 May
2023
31 May
2022
£
£
2,824
2,744
(2,824)
(2,744)
6,032
2,824
6,032
2,824

9. Funds

Funds
Restricted funds
Big Lottery Community Fund – Coronation
Celebration & Legacy Event
Unrestricted funds
General fund
Total funds		 Balance at
beginning of
period
Income
Expenditure
Transfers
Balance
at end of
period
£
£
£
£
-
9,800
(2,880)
-
6,920
132,508
141,903
(143,432)
-
130,979
132,508
151,703
(146,312)
-
137,899

Big Lottery Community Funds – funds received in April 2023 towards a Coronation celebration event which was held in May 2023. Remaining funds will be spent during 2023 in supporting the development officer, running a number of diversity days and the Hope Festival.

17

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2023

Notes to the financial statements (continued)

10. Operating lease commitments

The following annual operating lease payments are committed to be paid:
Expiring:
Within one year
Between two and five years		 31 May
2023
31 May
2022
£
£
500
626
-
-

11. Controlling Interests

The charity is controlled by the trustees.

12. Transactions with related parties

Certain of the Trustees also run or are involved in the management of organisations who use the facilities of the Theatre or hire technical equipment from the Theatre. Such transactions are at the same rate as for other equivalent organisations and are detailed below:

Organisation Trustee Year ended Year ended
31 May 31 May
2023 2022
Abbey Players David Sedgwick (Manager/Principal) £1,595 £2,377
Michael Chappell (Committee Member)
Masqueraders David Adams (Committee Member, co-opted) £5,585 £3,696
NAODS Christopher Hill (Committee Member) £3,404 £1,630
Rabble David Adams (Manager/Principal) £2,122 £1,601
Simon Winterman (Manager)
Sudden Impulse Nathan Harvey (Trustee)
Production Company Philip Malkin (Trustee) £1,522 £4,906
Sudden Impulse Simon Winterman (Manager/Principal)
Theatre Academy £240 £1,445

There were no outstanding balances with related parties as at 31 May 2023 (2022: £nil)

18