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2024-05-31-accounts

Nuneaton Arts CIO

Trustees’ Report and Financial Statements for the year ended 31 May 2024

Registered Charity number 1193774

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2024

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 11-19

2

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2024

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 2024.

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 2024

Report of the trustees (continued)

ACHIEVEMENTS, PERFORMANCE AND FUTURE PLANS

We have had a successful, busy year. The Abbey Theatre has been well used, we have extended our daytime activities and we completed the move of our stored items to our warehouse in Priory Street and surrendered the lease on the old store in The Parade. We have received several small grants for specific purposes and we have been awarded a much larger grant (£81,470) from Warwickshire County Council’s Social Fabric Fund – no funds have been received so far, so this will appear in detail in next year’s Trustees Report and Accounts

The theatre auditorium was in use on 239 days during the year and there were 171 public performances of 86 different shows. Daytime activities have increased and ran 2 days/week during school term times. Our main Pantomime returned 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, resulted in several school visits involving costume, props and backstage work.

The work of our Development Officer has continued, though hampered by lack of funding. This was reduced to 1 day/week from August which has been done on a voluntary basis by Simon Winterman after previous grant funding was exhausted. The Social Fabric Fund grant which we have just been awarded will secure funding for a Development Officer for 2 days/week for 2 years, and we will be starting the recruitment process shortly. Simon has agreed to continue in a supervisory role on a voluntary basis until further funding can be sourced, as he has been leading the development work from its start.

Despite discussions with Nuneaton and Bedworth Borough Council we still do not have a lease in place for the Abbey Theatre building, which severely limits the grant funding we can attract for essential improvements such as improved access for disabled users and visitors. We have no wheelchair access to the upper floor and our main doors are not easy to negotiate in a wheelchair or using a mobility scooter. Nuneaton and Bedworth Borough Council did appoint two Trustees to the Board (as permitted under our Constitution) – however as the Council changed control from Conservative to Labour in May 2024 we are unsure of the incoming group’s priorities. We will continue to press for a long-term lease to allow us to plan effectively.

We had a quiet summer shutdown where we concentrated on essential maintenance and did not undertake any major expenditure. Our costs remain uncertain going forward – we negotiated new energy price contracts to cover the remainder of the year but these were at significantly higher rates than the previous contract (which had fixed prices in 2020). Other costs also rose significantly during the year. We had to register for VAT, as our nonexempt turnover exceeded the registration threshold. We took professional advice and were told that some of what we had previously considered exempt turnover was now considered by HMRC to attract VAT. This meant that we should have registered for VAT back in the summer of 2022. Agreement was reached with HMRC and the back-VAT paid. VAT registration increases our annual costs by about £10,000 (the difference between the output VAT we pay and the input VAT we can reclaim), which has a considerable bearing on the charges we need to make for theatre hire. The result is that an increase in all charges of around 10% has been agreed, to take effect from 1[st] September 2024. Bar prices have already been increased.

4

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2024

Report of the trustees (continued)

We have refurbished the entrance foyer during the year – this was part-funded by a Warwickshire County Council Community Fund grant. We now have increased digital advertising whilst retaining conventional flyer holders for printed material.

FINANCIAL REVIEW

We have continued strict controls on day-to-day expenditure. We have planned for significant capital and refurbishment expenditure in 2024/25, the largest item being replacement of our Sound Desk at about £20,000. We have allocated £25,000 from our reserves for the summer 2024 work

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. Our income pattern is not level throughout the year – as we close in August our income that month is close to zero, but we still need to cover around £10,000 overheads. Current free reserves are £117,530. The remaining £67,530 still appears high compared to our target figure but as detailed above £25,000 of this has been allocated for specific 2024/5 capital expenditure. We also need to fund the difference between the Social Fabric Fund grant (£81,470) and the total project cost (£118,020) – much of this should come from earned income and sponsorship, but we need to make provision for any shortfalls in these income streams. If we do achieve a realistic lease we have a number of significant projects in mind, including disabled access provisions.

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 2024

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 (re-appointed 31 January 2024) Michael Colin Chappell (re-appointed 18 January 2023) Anthony Richard Deeming Michael James Green (NBBC appointee – appointed 14 December 2023) David John Griffith (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 (re-appointed 31 January 2024) Phillip James Malkin re-appointed 31 January 2024) Susan Jean Markham (NBBC appointee, appointed 14 December 2023) Callum Monaghan (appointed 27 March 2024) David Anthony Sedgwick (re-appointed 18 January 2023) Nathaneal Smith (appointed 31 January 2024)

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 2024 Trustee

Date: 25[th] September

6

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2024

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 2024

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 2024 which are set out on pages 9 to 19.

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: 25[th] September 2024

1 Saracen Close Ettington Warwickshire, CV37 7SZ

8

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2024

Statement of financial activities

Note
Income from:
Donations and legacies
1
Charitable Activities
2
Trading activities
3
Investment income – bank interest
Total income
Expenditure on:
Raising funds
4
Charitable activities
4
Total expenditure
Net income/(expenditure) for year
and net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Restricted
Total
2024
Total
2023
£
£
£
£
3,116
3,700
6,816
13,177
104,887
-
104,887
76,768
71,392
-
71,392
61,758
1,640
-
1,640
-
181,035
3,700
184,735
151,703
33,540
-
33,540
28,603
131,468
5,356
136,824
117,709
165,008
5,356
170,364
146,312
16,027
(1,656)
14,371
5,391
130,979
6,920
137,899
132,508
147,006
5,264
152,270
137,899

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 2024

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
2024
£
29,476		 31 May
2023
£
35,820
4,706
925
8,629
137,282		 5,239
509
8,656
103,531
151,542 117,935
(28,748) (15,856)
122,794
-		 102,079
-
152,270 137,899
5,264
147,006		 6,920
130,979
152,270 137,899

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: 25[th] September 2024

10

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2024

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 2024

- 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.

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 2024

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 and legacies
Donations
Grants
-
Nuneaton & Bedworth BC Annual Grant
Total unrestricted
-
Nuneaton & Bedworth BC Lottery grant
-
Warwickshire County Council Development Grant
-
Warwickshire County Council Baby Change Grant
-
Restricted grant from Big Lottery Community Fund for
Coronation Celebration & legacy event
Total restricted
Total		 Year ended
31 May 2024
Year ended
31 May 2023
£
£
466
727
2,650
2,650
3,116
3,377
1,000
-
2,000
-
700
-
-
9,800
3,700
9,800
6,816
13,177

13

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2024

Notes to the financial statements (continued)

2. Charitable Activities

Nuneaton Arts productions & courses
Theatre hire
Room hire
Equipment rental and sales
Storage hire
Ticket printing
Other
Trading activities
Bar and coffee bar takings		 Year ended
31 May
2024
Year ended
31 May
2023
£
28,088
13,601
44,943
42,419
18,297
10,658
11,593
9,746
884
-
454
344
628
-
104,887
76,768
Year ended
31 May
2024
Year ended
31 May
2023
£
£
71,392
61,758

3. Trading activities

14

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2024

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
Print, stationery and postage
Marketing
Educational support
Miscellaneous
Establishment expenses:
Rent
Heating & lighting
Rates & water
Cleaning & hygiene services
Maintenance contracts
Repairs & renewals
Insurance
Administrative expenses:
Accountancy costs/Professional fees
Telephone & internet
Staff costs
Volunteer costs
Bank charges
Depreciation of fixed assets
Governance costs:
Independent Examiner's fee
VAT due on registration re prior years
Total charitable activities		 Year ended
31 May 2024
Year ended
31 May 2023
£
£
32,303
27,580
1,237
1,023
33,540
28,603
3,883
1,786
5,666
3,968
3,557
5,801
21,341
12,754
873
1,526
2,144
4,128
1,440
7,592
44
1,310
38,948
38,865
6,913
2,448
18,043
10,816
3,159
3,303
18,355
21,316
3,520
2,292
4,608
3,366
4,282
7,360
58,880
50,901
800
-
430
1,746
10,479
8,817
1,142
-
1,538
721
16,023
15,658
30,412
26,942
1,200
1,000
1,200
1,000
7,384
-
136,824
117,709

15

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2024

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 £10,208 (2023: £8,817). Employers National Insurance contributions of £175.80 were paid during the year but no pension contributions were made (2023: £nil).

The average number of employees during the year was one (full-time equivalent 0.4) (2023: 0.4).

No remuneration was paid to trustees. During the year expenses totalling £4,5245were reimbursed to 4 Trustees for costs incurred on behalf of the charity relating mainly to the entrance foyer refurbishment, equipment and repairs (2023: £2,382.41 to 6 Trustees).

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 2024
At 31 May 2023		 Property
refurbishment
£
87,834
-
-		 Fixture,
Fittings &
Equipment
£
Total
£
215,119
302,953
9,679
9,679
-
-
87,834 224,798
312,632
81,211
1,871		 185,922
267,133
14,152
16,023
83,082 200,074
283,156
4,752 24,724
29,476
6,623 29,197
35,820

16

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2024

Notes to the financial statements (continued)

7. Debtors

Debtors
31 May 31 May
2024 2023
£ £
Accrued income 4,469 1,838
Prepayments 4,160 6,818
8,629 8,656
Creditors: amounts falling due within one year
31 May 31 May
2024 2023
£ £
Accruals 13,642 9,824
Deferred income (money received in advance) 14,161 6,032
VAT due 945 -
28,748 15,856
31 May 31 May
Deferred income: 2024 2023
£ £
Balance brought forward 6,032 2,824
Transferred to statement of financial activities (6,032) (2,824)
Deferred in period 14,161 6,032
Balance at end of period 14,161 6,032
Funds
Balance at Income Expenditure
Transfers
Balance
beginning at end of
of period period
Restricted funds £ £ £ £
Big Lottery Community Fund – Coronation
Celebration & Legacy Event 6,920 - (2,656) (314)
3,950
Nuneaton & Bedworth Borough Council –
Hope Festival 2025 - 1,000 - 314
1,314
Warwickshire County Council – Development
grant for Foyer Refurbishment - 2,000 (2,000) -
-
Warwickshire County Council – Lottery
grants for Baby change unit - 700 (700) -
-
6,920 3,700 (5,356) -
5,264
Unrestricted funds- General fund 130,979 181,035 (165,008) -
147,006
Total funds
137,899 184,735 (170,364) -
152,270

8. Creditors: amounts falling due within one year

9. Funds

17

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2024

Notes to the financial statements (continued)

Big Lottery Community Fund – funds received in April 2023 towards a Coronation celebration event which was held in May 2023. Part of the remaining funds were spent during the 2023/24 year in supporting the development officer and the Hope Festival in 2024. The balance will mainly be used for the planned Diversity Days, which we were unable to run during this year.

Nuneaton BC Borough Lottery Grant – this is allocated to the 2025 Hope Festival.

All other grants were spent during the 2023/4year for the purposes detailed in the grant award.

10. Operating lease commitments

31 May 31 May
The following annual operating lease payments are committed to be paid: 2024 2023
Expiring: £ £
Within one year 500 500
Between two and five years - -

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
2024 2023
Abbey Players David Sedgwick (Manager/Principal) £5,454 £1,595
Michael Chappell (Committee Member)
Masqueraders David Adams (Committee Member, co-opted) £6,503 £5,585
NAODS Christopher Hill (Committee Member) £5,405 £3,404
Rabble David Adams (Manager/Principal) £2,410 £2,122
Sudden Impulse Nathan Harvey (Trustee)
Production Company Philip Malkin (Trustee) £6,568 £1,522

There were no outstanding balances with related parties as at 31 May 2024 (2023: £nil).

18

Nuneaton Arts CIO Financial Statements for the year ended 31 May 2024

13. Statement of Financial Activities for the prior year

Income from:
Donations and legacies
Charitable Activities
Trading activities
Total income
Expenditure on:
Raising funds
Charitable activities
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
£
£
£
3,377
9,800
13,177
76,768
-
76,768
61,758
-
61,758
141,903
9,800
151,703
28,603
-
28,603
114,829
2,880
117,709
143,432
2,880
146,312
(1,529)
6,920
5,391
132,508
-
132,508
130,979
6,920
137,899

19