DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** # **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** **Company registration number 12330027 (England and Wales)** **Charity registration number 1194599** DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|Mary Dowson| |---|---| ||Adeeba Malik| ||Sabbiyah Pervez| ||Nicola Greenan| ||Stuart McKinnon-Evans| ||Mohammed Kamran| ||Kersten England| |**Charity number**|1194599| |**Company number**|12330027| |**Principal address**|City Park| ||Bradford| ||BD1 1SN| |**Registered office**|Church Bank House| ||Schofield Sweeney| ||Church Bank| ||Bradford| ||BD1 4DY| |**Auditor**|Gavin Lamb FCA| ||Naylor Wintersgill Limited| ||Carlton House| ||Grammar School Street| ||Bradford| ||BD1 4NS| |**Bankers**|Barclays Bank| ||10 Market Street| ||Bradford| ||BD1 1EG| DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 3| |Statement of trustees' responsibilities|4| |Independent auditor's report|5 - 7| |Statement of financial activities|8| |Balance sheet|9| |Statement of cash flows|10| |Notes to the financial statements|11 - 19| DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ The trustees present their annual report and financial statements for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 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 (FRS 102)" (effective 1 January 2019). ## **Objectives and activities** The charity's objects are:- - To advance the education of the general public in the arts and artistic and cultural heritage of the City of Bradford and in particular the arts of performance, music, drama, poetry reading, sculpture, painting, handicrafts and all associated arts; - To advance the arts in particular the arts of performance, music, drama, poetry reading, sculpture, painting, handicrafts and all other associated arts, by encouraging public participation in the said arts and by the presentation of performances, exhibitions and festivals provided that the promotion of such festivals and events is undertaken solely for the public benefit; and - To promote the arts and heritage for the benefit of the public within the City of Bradford in particular but not exclusively by supporting the arts and heritage sector through promotion, representation and development. The charities activities include:- - Makes grants to individuals - Makes grants to organisations - Provides services - Provides advocacy, advice and information - Sponsors or undertakes research - Acts as an umbrella or resource body The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Achievements and performance** Bradford Culture Company was established to promote and encourage the development of arts, cultural, heritage and creative activities and promote access, education and appreciation of the widest possible range of cultural, and creative activities in the Bradford district and advancing arts, cultural and heritage activities by encouraging public participation solely for public benefit. The organisation supports and represents the arts, cultural and heritage sector through producing, promotion, education, representation and development. The primary focus of the organisation’s work in the period covered in this report was to secure the title of UK City of Culture 2025. Bradford Culture Company provides resources (including financial, administrative and advocacy support) to organisations and individuals at work in the cultural sector throughout the Bradford District. As well as the Board of Trustees, Bradford Culture Company is supported by a Steering Group that includes key stakeholders in the district consisting of representatives from Bradford University and Bradford City Council, representatives from the arts and heritage sector and local cultural leaders. - 1 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ In 2021 - 2022 we employed a small number of full-time staff who worked on day to day delivery of programmes and projects with expertise in marketing, project management, cultural programming and community engagement. The staff team were supported by the voluntary services of a wide range of individuals drawn from academia, social and community organisations, funding partners and other collaborators who share our values. We have clear Governance policies including but not limited to Risk Registers, operating policies and financial procedures. In May 2021, Bradford Culture Company secured charitable status. April 2021 to March 2022 was a defining year for Bradford 2025. The competition to become UK City of Culture was formally launched by the Government in May 2021. Twenty places from across the UK expressed an interest in the competition at this early stage. By October 2021 a longlist of eight places was revealed and in March 2022 four cities were left in the running for the title. Bradford’s ambition to become UK City of Culture 2025 had been several years in the making, this year would be the year that would define whether the district had the capacity, the imagination and the sheer passion to win the title. In developing the bid the 2025 team took to the road across the district to seek people’s views and ambitions and a series of technical reports were commissioned to help understand the economic, social and placemaking impacts of Bradford becoming UK City of Culture. In addition to the technical aspects of the bid, the team secured revenue funds to deliver a range of cultural activities across the district. Community arts, large scale interventions and partnership funding provided insight into what a full-scale year could potentially deliver both creatively with artists and encouraging community engagement. Highlights of this work included a programme of street art, a series of film premieres made by local film-makers and large scale light installations including Dan Archer’s Borealis and The Mills are Alive. We were able to support the creative work of a number of local producers including Cecil Green Arts, Common Wealth and South Asian Heritage Month amongst others. The Trust partnered with 18 primary schools to create real and digital panels for a quilt - Untold Stories, Hidden Communities - and the Rooting Project, a creative project with Black young people about their experiences of growing up in Bradford. Bradford Culture Company submitted an initial bid for the UK City of Culture 2025 title in May 2021 followed by a final bid in October 2021. The organisation hosted a visit from the Independent Advisory Panel before taking part in a final presentation in London to secure the title. Throughout this process the Trust continued its fundraising, cultural and business engagement work. On May 31 2022 Bradford district was named UK City of Culture 2025 and Bradford Culture Company is the lead agency involved in delivery of the year. Daniel Bates (Executive Director) and Shanaz Gulzar (Creative Director) have been appointed to lead the organisation going forward. ## **Financial review** The income for the year was £996,802 (2021 £396,819) with expenditure being £698,325 (2021 £396,819) resulting in a surplus of £298,477 (2021 £nil). Funds at 31 March 2022 were £298,477 (2021 £nil). It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. ## **Structure, governance and management** The charity is a company limited by guarantee incorporated on 25 November 2019 and registered as a charity on 26 May 2021 and is governed by its memorandum and articles of association. - 2 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mary Dowson Adeeba Malik Sabbiyah Pervez Nicola Greenan Stuart McKinnon-Evans Mohammed Kamran Shanaz Gulzar (Resigned 17 August 2022) Richarrd Emmott (Resigned 26 July 2022) Brendan Brown (Resigned 17 August 2022) Kersten England (Appointed 14 October 2022) Any person who is willing to act as a director, and is permitted by law to do so, may be appointed to be a director by ordinary resolution or by a decision of the directors. Directors are appointed for the skills and experience they bring to the charity. Training will be given if needed. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up. The Charity is registered with the fundraising regulator. The Charity has complied with the Code of Fundraising Practice throughout the year. There were no failures to comply with a scheme or fundraising standard during the year. The charity's decisions are made by the board of trustees, with the manager being responsible for the day to day running. ## **Auditor** In accordance with the company's articles, a resolution proposing that Naylor Wintersgill Limited be reappointed as auditor of the company will be put at a General Meeting. The trustees' report was approved by the Board of Trustees. Mary Dowson **Trustee** 25 November 2022 - 3 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ The trustees, who are also the directors of Bradford Culture Company Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law 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, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, 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 estimates that are reasonable and prudent; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate 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 Companies Act 2006. 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. - 4 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **INDEPENDENT AUDITOR'S REPORT** ## **TO THE TRUSTEES OF BRADFORD CULTURE COMPANY LIMITED** ## **Opinion** We have audited the financial statements of Bradford Culture Company Limited (the ‘charity’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial 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 in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees' report; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. - 5 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BRADFORD CULTURE COMPANY LIMITED** ## **Responsibilities of trustees** As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. ## **Capability of the audit in detecting irregularities, including fraud** Based on our understanding of the Company and its industry, we identified that the principal risks of noncompliance with laws and regulations related to breaches of UK law and we considered the extent to which noncompliance might have a material effect on the financial statements of the Company. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure or increase the capital position of the Company, and management bias in accounting estimates and judgmental areas of the financial statements such as · the recognition of income. Audit procedures performed by the engagement team included: - Discussions with directors including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - Reviewing relevant meeting minutes; - Reviewing of correspondence in so far as they related to non-compliance with laws and regulations and fraud; - Procedures relating to the recognition of income; - Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, posted on unusual days, posted by infrequent users, posted by senior management or posted with descriptions indicating a higher level of risk; Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing over immaterial liabilities and assets balances. · There are inherent limitations in the audit procedures described above and the further removed non-·compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. - 6 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BRADFORD CULTURE COMPANY LIMITED** ## **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 Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## **Gavin Lamb (Senior Statutory Auditor) for and on behalf of Naylor Wintersgill Limited** 25 November 2022 **Chartered Accountants Statutory Auditor** Carlton House Grammar School Street Bradford BD1 4NS Naylor Wintersgill Limited 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. - 7 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
892,231
104,571
**Expenditure on:**
Charitable activities
**4**
593,754
104,571
**Net income for the year/**
**Net movement in funds**
298,477
-
Fund balances at 1 April 2021
-
-
**Fund balances at 31 March 2022**
298,477
-|**Total Unrestricted**
**funds**
**2022**
**2021**
**£**
**£**
996,802
396,819
698,325
396,819
298,477
-
-
-
298,477
-|**Total Unrestricted**
**funds**
**2022**
**2021**
**£**
**£**
996,802
396,819
698,325
396,819
298,477
-
-
-
298,477
-| |---|---|---| |||396,819| |||-
-| |||-| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 8 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **BALANCE SHEET** ## _**AS AT 31 MARCH 2022**_ |**Notes**
**Fixed assets**
Tangible assets
**8**
**Current assets**
Debtors
**9**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**10**
Net current assets/(liabilities)
**Total assets less current liabilities**
**Income funds**
Unrestricted funds|**2022**
**£**
41,258
284,901
326,159
(28,152)|**2021**
**£**
**£**
470
2,412
501,742
504,154
(504,919)
298,007
298,477
298,477
298,477|**£**
765
(765)
-
-
-| |---|---|---|---| The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2022, although an audit has been carried out under section 144 of the Charities Act 2011. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 25 November 2022 Mary Dowson **Trustee** **Company registration number 12330027** - 9 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**Notes**
**Cash flows from operating activities**
Cash (absorbed by)/generated from
operations
**15**
**Investing activities**
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Net cash used in financing activities**
**Net (decrease)/increase in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
**£**
(216,841)
-
-
-
(216,841)
501,742
284,901|**2021**
**£**
(893)|**£**
502,635
(893)
-
501,742
-
501,742| |---|---|---|---| - 10 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** ## **Charity information** Bradford Culture Company Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Church Bank House Schofield Sweeney, Church Bank, Bradford BD1 4DY . ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income 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. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. - 11 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation 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: Computers 33% straight line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. ## **1.7 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to 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 impairment loss (if any). ## **1.8 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.9 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. - 12 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** **(Continued)** ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services 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 at transaction price and subsequently 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 discharged or cancelled. ## **1.10 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.11 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees 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 estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. - 13 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **3 Donations and legacies** |**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Donations and gifts
130,250
-
Listed below
761,981
104,571
892,231
104,571
**Grants receivable for core activities**
Bradford Metropolitan District Council
761,981
51,403
Emerald
-
-
Bradford Bid Street Art
-
-
Keighley Town Council
-
900
Morrisons Foundation
-
12,535
Fountains Church Bradford
-
400
DCMS
-
39,333
761,981
104,571|**Total**
Unrestricted
funds
**2022**
2021
**£**
£
130,250
-
866,552
396,819
996,802
396,819
813,384
373,019
-
20,000
-
3,800
900
-
12,535
-
400
-
39,333
-
866,552
396,819|**Total**
Unrestricted
funds
**2022**
2021
**£**
£
130,250
-
866,552
396,819
996,802
396,819
813,384
373,019
-
20,000
-
3,800
900
-
12,535
-
400
-
39,333
-
866,552
396,819| |---|---|---| |||396,819| |||373,019
20,000
3,800
-
-
-
-| |||396,819| ## **4 Charitable activities** |Staff costs
Research
Bid development
Marketing and website
Programme
Share of support costs (see note 5)
Share of governance costs (see note 5)
**Analysis by fund**
Unrestricted funds
Restricted funds|**2022**
**£**
210,852
-
125,941
81,385
244,708
662,886
33,039
2,400
698,325
593,754
104,571
698,325|**2021**
**£**
183,103
24,756
55,075
54,818
57,236| |---|---|---| |||374,988
21,831
-| |||396,819| |||396,819
-| |||396,819| - 14 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **5 Support costs** |Depreciation
Building costs
Insurance
Advertising
Payroll and bookkeeping
Office costs
Subscriptions
Staff training
Travel
Sundry
Legal and professional
Audit fees
Analysed between
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
295
-
4,624
-
1,061
-
-
-
4,015
-
15,532
-
590
-
1,300
-
5,369
-
253
-
-
-
-
2,400
33,039
2,400
33,039
2,400|**2022**Support costs Governance
costs
**£**
£
£
295
128
-
4,624
4,910
-
1,061
1,108
-
-
4,405
-
4,015
4,449
-
15,532
3,747
-
590
-
-
1,300
-
-
5,369
622
-
253
26
-
-
2,436
-
2,400
-
-
35,439
21,831
-
35,439
21,831
-|2021
£
128
4,910
1,108
4,405
4,449
3,747
-
-
622
26
2,436
-| |---|---|---|---| ||||21,831| ||||21,831| Governance costs includes payments to the auditors of £2,400 (2021- £nil) for audit fees. ## **6 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the current or prior year. ## **7 Employees** The average monthly number of employees during the year was: |**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2022**
**Number**
7
**2022**
**£**
194,545
14,442
1,865
210,852|**2021**
**Number**
3| |---|---|---| |||**2021**
**£**
171,890
10,301
912| |||183,103| - 15 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**7**
**Employees**
The number of employees whose annual remuneration was more than £60,000
is as follows:
£60,001 - £70,000
**8**
**Tangible fixed assets**
**Cost**
At 1 April 2021
At 31 March 2022
**Depreciation and impairment**
At 1 April 2021
Depreciation charged in the year
At 31 March 2022
**Carrying amount**
At 31 March 2022
At 31 March 2021
**9**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**10**
**Creditors: amounts falling due within one year**
**Notes**
Deferred income
**11**
Trade creditors
Other creditors
Accruals and deferred income|**(Continued)**
**2022**
**2021**
**Number**
**Number**
1
1
**Computers**
**£**
893
893
128
295
423
470
765
**2022**
**2021**
**£**
**£**
33,449
40
6,059
438
1,750
1,934
41,258
2,412
**2022**
**2021**
**£**
**£**
-
474,981
21,378
27,750
1,762
-
5,012
2,188
28,152
504,919|**(Continued)**
**2022**
**2021**
**Number**
**Number**
1
1
**Computers**
**£**
893
893
128
295
423
470
765
**2022**
**2021**
**£**
**£**
33,449
40
6,059
438
1,750
1,934
41,258
2,412
**2022**
**2021**
**£**
**£**
-
474,981
21,378
27,750
1,762
-
5,012
2,188
28,152
504,919| |---|---|---| |||893| |||128
295| |||423| |||470| |||765| |||**2021**
**£**
40
438
1,934| |||2,412| |||**2021**
**£**
474,981
27,750
-
2,188| |||504,919| - 16 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **11 Deferred income** Deferred income is included in the financial statements as follows: ||**2022**|**2021**| |---|---|---| ||**£**|**£**| |Deferred income is included within:||| |Current liabilities|-|474,981| |Deferred income at 1 April 2021|474,981|-| |Received in year||871,800| |Released to income|(474,981)|(396,819)| |Deferred income at 31 March 2022|-|474,981| Deferred income relates to grant income where the recognition criteria had not yet been met. ## **12 Restricted funds** The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: ||**Movement**||**Movement in funds**|**Movement in funds**|| |---|---|---|---|---|---| ||**in funds**||||| ||**Incoming**|**Balance at**|**Incoming**|**Resources**|**Balance at**| ||**resources**|**1 April 2021**|**resources**|**expended**
**31**|**March 2022**| ||**£**|**£**|**£**|**£**|**£**| |City of Culture 2025 Bid|-|-|71,215|(71,215)|-| |Bradford LIT Lights Festival|-|-|33,356|(33,356)|-| ||-|-|104,571|(104,571)|-| The City of Culture 2025 Bid was funded by Bradford Metropolitan District Council, Keighley Town Council, Emerald, CIOP, DCMS, Morrisons and Fountains Church Bradford. Bradford LIT Lights Festival was funded by Bradford Metropolitan District Council. - 17 - DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## ||**Movement in funds**|**Incoming**
**Resources**
**Balance at**|**resources**
**expended**
**31 March 2022**|**£**
**£**
**£**|104,571
(104,571)
-|892,231
(593,754)
298,477|996,802
(698,325)
298,477| |---|---|---|---|---|---|---|---| |||**Balance at**|**1 April 2021**|**£**|-|-|-| |||**Transfers**||**£**|-|-|-| ||**Movement in funds**|**Incoming**
**Resources**|**resources**
**expended**|**£**
**£**|-
-|396,819
(396,819)|396,819
(396,819)| |||**Balance at**|**1 April 2020**|**£**|-|-|-| |**Funds**|||||Restricted|Unrestricted|| |**13**|||||||| DocuSign Envelope ID: 92306FD6-F248-45F6-901E-F08999C34114 ## **BRADFORD CULTURE COMPANY LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **14 Related party transactions** ## **Remuneration of key management personnel** |The remuneration of key management personnel is as follows.
**2022**
**£**
Aggregate compensation
78,440
There were no further related party transactions requiring disclosure during the current or prior year.
**15**
**Cash generated from operations**
**2022**
**£**
Surplus for the year
298,477
Adjustments for:
Depreciation and impairment of tangible fixed assets
295
Movements in working capital:
(Increase) in debtors
(38,846)
(Decrease)/increase in creditors
(1,786)
(Decrease)/increase in deferred income
(474,981)
**Cash (absorbed by)/generated from operations**
(216,841)
**16**
**Analysis of changes in net funds**
The charity had no debt during the year.||**2021**
**£**
78,448
**2021**
**£**
-
128
(2,412)
29,938
474,981
502,635| |---|---|---| ||**2022**
**£**
78,440|| |||| - 19 -