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2022-07-31-accounts

Charity registration number 220256

Company registration number 00242886 (England and Wales)

PEOPLE'S THEATRE ARTS GROUP LIMITED

(LIMITED BY GUARANTEE)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Chairman A De'Ath
Trustees S Appleby
P Bradley
X Brouwer (Appointed 23 September 2021)
A Childs
SE Cooper (Appointed 23 September 2021)
A Dalgliesh (Appointed 23 September 2021)
A De'Ath
S Harrison
L Heckels-Thompson
C Hope
M Hope
M Smith (Appointed 23 September 2021)
T Swinton
K Worswick
Secretary H Birleson
Treasurer K Scott
Charity number 220256
Company number 00242886
Registered office Stephenson Road
Newcastle upon Tyne
NE6 5QF
Auditor RMT Accountants & Business Advisors Ltd
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
Bankers Barclays Bank plc
49 - 51 Northumberland Street
Newcastle upon Tyne
NE1 7AF

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) CONTENTS

Page
Trustee's report 1 - 4
Independent auditor's report 5 - 7
Statement of financial activities 8 - 9
Balance sheet 10
Notes to the financial statements 11 - 22

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) TRUSTEE'S REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 JULY 2022

The trustees present their report and financial statements for the year ended 31 July 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 company's Memorandum and Articles of Association, 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 2015)”

Objectives and activities

There have been no significant changes in the principal activities of the company since last year which are those of an arts group. The objective of the group is to promote the arts within Newcastle upon Tyne and the wider region. A summary of the aims of the organisation, from the theatre’s constitution, states that “The Company is established to promote, maintain and advance education by the encouragement of the Arts, including the Arts of drama, mime, dance, singing and music and to formulate, prepare and establish schemes therefore provided that all objects of the Company shall be of a charitable nature.”

How our activities deliver public benefit

The trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. The trustees consider that the activities undertaken by the charity provide a direct benefit to those who attend the performances staged during the year and to the wider community.

In addition by making the theatre facilities available to a wide range of school, dance, community and other charitable organisations we have given several thousand local residents access to facilities and experiences they would not otherwise enjoy.

Achievements and performance

Last year’s report finished with ‘The Phoenix is rising!’ and now, at the end of a very successful year, we are delighted to be able to say that we have definitely risen! We have run a full programme of plays since our reopening in September 2021 and our audiences have returned. All performances for our first production were socially distanced and we have continued to provide a socially distanced option for each production during the year other than the panto. Our programme of plays has been varied, the artistic appreciation of our productions has been high, and we have recently been able to include our studio theatre back into our full programme. We are continuing with socially distanced options for productions during the coming year.

A number of people have helped to make big improvements to our backstage areas, with a lot of work being done to improve the scene dock and our workshop and our props areas and archive being reorganised and improved. A huge thank you to everyone involved in this. Additionally, what we used to call People’s Lit restarted with our Northumbrian Evening and will continue, we have reopened for hires, we have established Wednesday coffee mornings and we have had some wonderful exhibitions in our Foyer Gallery.

We do have some challenges ahead, of course. We know we have a number of large expenses coming up during the Autumn but our finances are strong and we don’t see any need for alarm – we simply need to be careful.

We have again been supported generously by our members and a number of loyal supporters and your donations really do make a difference. Our future is looking good!

Financial review

The results for the year under review can be seen on page 8.

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2022

Reserves policy

The People’s Theatre Arts Group Limited reserves policy deals with our general fund. The purpose of the reserves is to ensure we are able to properly manage unusual situations – for example, where an unexpected large expense is incurred, or where our income fails on an ongoing basis to cover our costs or, in a worst case scenario, the theatre had to close.

We aim to hold in reserve sufficient money in our general fund to cover at least six-month’s expenditure. The reasons for this are :-

The Charity's total reserves amounted to £1,386,901 (2021: £1,391,752) at the year end. Of this £214,018 (2021: £167,946) is unrestricted and is held to finance future expenses and costs. £1,172,883 (2021: £1,223,806) is the restricted People’s Fund and the majority of this fund is now represented by tangible fixed assets, namely leasehold improvements.

Risk

The trustees meet on a regular basis to consider the major strategic and operational risks of the charity and act accordingly to mitigate those risks.

COVID-19 risk

The COVID-19 pandemic continues to generate a significant level of uncertainty in the global economy. The Trustees will regularly assess the likely effects on the company's operations in an attempt to mitigate the risk as far as possible.

Structure, governance and management

The company is a company limited by guarantee and does not have a share capital. The company is governed by its Memorandum and Articles of Association.

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:

S Appleby P Bradley X Brouwer (Appointed 23 September 2021) A Childs SE Cooper (Appointed 23 September 2021) A Dalgliesh (Appointed 23 September 2021) A De'Ath S Harrison C Heckels-Thompson (Resigned 23 September 2021) L Heckels-Thompson C Hope M Hope M Smith (Appointed 23 September 2021) T Swinton J Thompson (Resigned 23 September 2021) K Worswick

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2022

The Trustees are the Board of Directors who are elected by the Members at the Annual General Meeting. Candidates must hold full membership and are nominated by full members. They hold office for one year and are eligible for re-election. The theatre holds an AGM each year, in September or October, which is open to all members. As well as reporting on activities during the year, the accounts are presented and nominations for the Management Committee and Productions Committee are put considered and the members of these committees for the coming year are elected.

The Management Committee has overall responsibility for the theatre, and is composed of the Chairman, Secretary and Treasurer of the theatre, plus up to 9 trustees. They meet on a monthly basis and review all major activity at the theatre, review theatre governance as required, and review the theatre finances at each meeting.

The Productions Committee is responsible for the programme of plays put on each season – for choosing the programme, ensuring performance rights are secured, ensuring appropriate teams and cast are organised for each play, and reviewing the success of each play. They meet on a weekly basis.

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.

Statement of trustee's responsibilities

The trustees, who are also the directors of People's Theatre Arts Group Limited for the purpose of company law, are responsible for preparing the Trustee's 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 company 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:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the company 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that RMT Accountants & Business Advisors Ltd be reappointed as auditor of the company will be put at a General Meeting.

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2022

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustee's report was approved by the Board of Trustees.

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

H Birleson Secretary

Dated: .........................

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF PEOPLE'S THEATRE ARTS GROUP LIMITED

Opinion

We have audited the financial statements of People's Theatre Arts Group Limited (the ‘company’) for the year ended 31 July 2022 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including a summary of 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:

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 company 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 trustee's 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 company’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, except to the extent otherwise explicitly stated in our report, 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF PEOPLE'S THEATRE ARTS GROUP LIMITED

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustee's report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustee's responsibilities, the trustees, who are also the directors of the company 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 company’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

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.

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF PEOPLE'S THEATRE ARTS GROUP LIMITED

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charitable company and the sector in which it operates, we identified that the following laws and regulations are significant to the entity:

These matters were discussed amongst the engagement team at the planning stage and the team remained alert throughout the audit.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence and legal costs incurred; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Stephen Slater (Senior Statutory Auditor) for and on behalf of RMT Accountants & Business Advisors Ltd Statutory Auditor Gosforth Park Avenue Newcastle upon Tyne NE12 8EG

Date: .........................

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2022

Current financial year

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Donations and legacies
3
65,007
-
Charitable activities
4
196,889
-
Other trading activities
5
30,514
-
Investments
6
8
-
Total income
292,418
-
Expenditure on:
Raising funds
7
42,131
9,807
Charitable activities
8
172,398
55,574
Other
13
-
17,359
Total resources expended
214,529
82,740
Net incoming/(outgoing) resources before
transfers
77,889
(82,740)
Gross transfers between funds
(31,817)
31,817
Net income/(expenditure) for the year/
Net movement in funds
46,072
(50,923)
Fund balances at 1 August 2021
167,946
1,223,806
Fund balances at 31 July 2022
214,018
1,172,883		 Total
2022
£
65,007
196,889
30,514
8
292,418
51,938
227,972
17,359
297,269
(4,851)
-
(4,851)
1,391,752
1,386,901		 Total
2021
£
121,325
4,284
4,322
25
129,956
31,458
157,244
17,728
206,430
(76,474)
-
(76,474)
1,468,226
1,391,752

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.

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2022

Prior financial year

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
116,108
5,217
Charitable activities
4
4,284
-
Other trading activities
5
4,322
-
Investments
6
25
-
Total income
124,739
5,217
Expenditure on:
Raising funds
7
21,656
9,802
Charitable activities
8
101,700
55,544
Other
13
-
17,728
Total resources expended
123,356
83,074
Net incoming/(outgoing) resources before transfers
1,383
(77,857)
Gross transfers between funds
(24,514)
24,514
Net income/(expenditure) for the year/
Net movement in funds
(23,131)
(53,343)
Fund balances at 1 August 2020
191,077
1,277,149
Fund balances at 31 July 2021
167,946
1,223,806		 Total
2021
£
121,325
4,284
4,322
25
129,956
31,458
157,244
17,728
206,430
(76,474)
-
(76,474)
1,468,226
1,391,752

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.

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) BALANCE SHEET

AS AT 31 JULY 2022

2022
Notes
£
£
Fixed assets
Tangible assets
14
1,620,702
Current assets
Debtors
15
43,295
Cash at bank and in hand
222,627
265,922
Creditors: amounts falling due within
one year
16
(54,666)
Net current assets
211,256
Total assets less current liabilities
1,831,958
Creditors: amounts falling due after
more than one year
17
(445,057)
Net assets
1,386,901
Income funds
Restricted funds
19
1,172,883
Unrestricted funds
Designated funds
3,310
General unrestricted funds
210,708
214,018
1,386,901
The financial statements were approved by the Trustees on .........................		 2021
£
£
1,682,395
16,571
180,596
197,167
(28,309)
168,858
1,851,253
(459,501)
1,391,752
1,223,806
-
167,946
167,946
1,391,752

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

A De'Ath Trustee

Company Registration No. 00242886

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies

Charity information

People's Theatre Arts Group Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Stephenson Road, Newcastle upon Tyne, NE6 5QF.

1.1 Accounting convention

The accounts have been prepared in accordance with the company's Memorandum and Articles of Association, 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)” (as amended for accounting periods commencing from 1 January 2016). The company is a Public Benefit Entity as defined by FRS 102.

The company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. 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 company 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. This includes taking into account the potential impact of COVID-19 to ensure that cashflow is positively managed and the impact to the charity’s operations are mitigated. The Board has concluded that the going concern assumption is appropriate in preparing these 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.

1.4 Income

Income is recognised when the company 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 company 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 company 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.

All grant income is recognised gross when receivable.

Play tickets are deferred when bookings are received in advance of the play to which they relate.

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies

(Continued)

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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.

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to a category. Where costs cannot be directly attributed to a particular heading they have been allocated to activities on a basis consistent with the use of resources.

1.6 Tangible fixed assets

Individual fixed assets costing £100 or more are capitalised at cost including irrecoverable VAT.

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:

Leasehold improvements Over remaining term of lease Computer equipment 3 or 4 years 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 company 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.

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies

(Continued)

1.9 Financial instruments

The company 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 company's balance sheet when the company 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.

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 company’s contractual obligations expire or are discharged or cancelled.

1.10 Taxation

The company is a registered charity and no taxation is payable on its income.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13 Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expensed for which it was incurred.

1.14 Concessionary loans

Concessionary loans are initially recognised and measured at the amount received, with the carrying amount adjusted in subsequent years to reflect repayments and any accrued interest.

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

2 Critical accounting estimates and judgements

In the application of the company’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.

Critical judgements

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment of assets, the trustees have considered both external and internal sources of information such as market conditions and experience of recoverability.

Key sources of estimation uncertainty

Determining residual values and useful economic lives of tangible fixed assets

The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

Judgement is applied by trustees when determining the residual values for tangible fixed assets. When determining the residual value trustees aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

3 Donations and legacies

Unrestricted Unrestricted
Restricted
funds
funds
funds
2022
2021
2021
£
£
£
Donations and gifts
35,561
28,194
5,217
Grants
16,447
77,957
-
Membership subscriptions
12,999
9,957
-
65,007
116,108
5,217		 Total
2021
£
33,411
77,957
9,957
121,325

Grants receivable for core activities

Grants receivable for core activities
Unrestricted Unrestricted
Restricted
funds
funds
funds
2022
2021
2021
£
£
£
Coronavirus Job Retention Scheme
3,359
30,931
-
Other Government Grants
7,088
31,026
-
Charitable Trusts
6,000
16,000
-
16,447
77,957
-		 Total
2021
£
30,931
31,026
16,000
77,957

4 Charitable activities

Play tickets
Programme sales
Theatre tax relief		 2022
£
193,179
3,710
-
196,889		 2021
£
331
-
3,953
4,284

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

5 Other trading activities

Premises hire
Wardrobe and equipment hire
Green room
Sundry
Other trading activities		 2022
£
16,049
133
13,392
940
30,514		 2021
£
4,222
100
-
-
4,322

6 Investments

**Unrestricted ** Unrestricted
funds funds
2022 2021
£ £
Interest receivable 8 25
Raising funds
Unrestricted Restricted Total Total
funds funds 2022 2021
£ £ £ £
Fundraising and publicity
Support costs 42,131 9,807 51,938 31,458
42,131 9,807 51,938 31,458
For the year ended 31 July 2021
Fundraising and publicity 21,656 9,802 31,458

7 Raising funds

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

8 Charitable activities

2022
£
Royalties
8,601
Stage expenses
8,819
Water
1,178
Wardrobe expenses
2,181
Repairs and renewals
12,493
Props
1,321
Fees and expenses
400
Other direct costs
2,221
Programmes
1,309
House expenses
5,470
Publicity
15,091
Irrecoverable VAT
6,408
65,492
Share of support costs (see note 10)
152,015
Share of governance costs (see note 10)
10,465
227,972
Analysis by fund
Unrestricted funds
172,398
Restricted funds
55,574
227,972
9
Net movement in funds
2022
£
Net movement in funds is stated after charging/(crediting)
Fees payable to the company's auditor for the audit of the company's financial
statements
2,000
Depreciation of owned tangible fixed assets
67,093		 2021
£
2,766
4,761
1,181
-
25,543
-
-
1,807
81
1,640
42
4,427
42,248
109,681
5,315
157,244
101,700
55,544
157,244
2021
£
2,000
67,057

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

10 Support costs

Staff costs
Depreciation
Electricity and gas
Insurance
Cleaning
Printing, postage and
telephone
Sundry expenses
Bank charges
Audit fees
Legal and professional
Analysed between
Fundraising
Charitable activities		 Support
costs
Governance
costs
£
£
60,026
-
67,093
-
33,236
-
10,838
-
24,839
-
3,374
-
1,747
-
2,800
-
-
2,000
-
8,465
203,953
10,465
51,938
-
152,015
10,465
203,953
10,465		 2022
£
60,026
67,093
33,236
10,838
24,839
3,374
1,747
2,800
2,000
8,465
214,418
51,938
162,480
214,418		 2021 Basis of allocation
£
47,679
Staff time
67,057
Use of premises
11,724
Use of premises
10,066
Use of premises
632
Use of premises
1,582
Use of premises
796
Use of premises
1,603
Use of premises
2,000 Governance
3,315 Governance
146,454
31,458
114,996
146,454

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the company during the year in their capacity as trustee. T Swinton, a trustee during the year, received £15,400 (2021: £14,000) during the year in respect of his position as theatre technician.

12 Employees

The average monthly number of employees during the year was:

Operating of theatre
Employment costs
Wages and salaries
Other pension costs		 2022
Number
8
2022
£
59,334
692
60,026		 2021
Number
3
2021
£
46,883
796
47,679

There were no employees whose annual remuneration was £60,000 or more.

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

13
Other
2022
£
Financing costs
17,359
14
Tangible fixed assets
Leasehold
improvements
Computer
equipment
£
£
Cost
At 1 August 2021
1,967,583
16,168
Additions
5,400
-
At 31 July 2022
1,972,983
16,168
Depreciation and impairment
At 1 August 2021
285,188
16,168
Depreciation charged in the year
67,093
-
At 31 July 2022
352,281
16,168
Carrying amount
At 31 July 2022
1,620,702
-
At 31 July 2021
1,682,395
-
15
Debtors
2022
Amounts falling due within one year:
£
Trade debtors
10,603
Other debtors
2,767
Prepayments and accrued income
29,925
43,295		 2021
£
17,728
Total
£
1,983,751
5,400
1,989,151
301,356
67,093
368,449
1,620,702
1,682,395
2021
£
40
8,687
7,844
16,571

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

16 Creditors: amounts falling due within one year

Borrowings
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
17
Creditors: amounts falling due after more than one year
Borrowings
18
Loans and overdrafts
Debenture loans
Other loans
Payable within one year
Payable after one year		 2022
£
9,444
11,910
5,096
11,356
16,860
54,666
2022
£
445,057
2022
£
406,501
48,000
454,501
9,444
445,057		 2021
£
9,060
551
2,733
4,758
11,207
28,309
2021
£
459,501
2021
£
415,561
53,000
468,561
9,060
459,501

The above loans from members, are provided as concessionary loans for the purpose of furtherance of the charitable activates of the charity. The loans are repayable over 5 years, after a 3 year repayment holiday starting from the date of the loan. No interest is payable on these loans and no security has been given by the charity.

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

19 Analysis of movements in funds Current financial year

The income funds of the charity include the following funds comprising of unexpended resources:

Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at
1 August resources expended 31 July
2021 2022
£ £ £ £ £
Restricted funds:
Redevelopment fund 1,223,806 - (82,740) 31,817 1,172,883
Unrestricted funds:
General fund 167,946 292,418 (214,529) (35,127) 210,708
Technical equipment upgrades - - - 3,310 3,310
1,391,752 292,418 (297,269) - 1,386,901

A transfer has been made between General Funds and the Redevelopment Fund to reflect the expenditure on the theatre redevelopment associated liabilities.

Previous financial year

Previous financial year
Movement in funds
Balance at Incoming Resources Transfers Balance at
1 August resources expended 31 July
2020 2021
£ £ £ £ £
Restricted funds:
Redevelopment fund 1,277,149 5,217 83,074 24,514 1,389,954
Unrestricted funds:
General fund 191,077 124,739 (123,356) (24,514) 167,946
1,468,226 129,956 (206,430) - 1,391,752
Analysis of net assets between funds
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2022 2022 2022 2021 2021 2021
£ £ £ £ £ £
Fund balances at
31 July 2022 are
represented by:
Tangible assets 41,318 1,579,384 1,620,702 43,028 1,639,367 1,682,395
Current assets/(liabilities) 220,700 (9,444) 211,256 177,918 (9,060) 168,858
Long term liabilities (48,000) (397,057) (445,057) (53,000) (406,501) (459,501)
214,018 1,172,883 1,386,901 167,946 1,223,806 1,391,752

20 Analysis of net assets between funds

PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

21 Nature and purpose of funds

General fund

This fund is unrestricted and was set up by the company to fund the day-to-day running of the theatre.

Redevelopment fund

This fund is restricted and was set up in 2013 for the sole purpose of funding the theatre refurbishment and extension project.

The majority of this fund is now represented by tangible fixed assets, namely leasehold improvements.

22 Related party transactions

Transactions with related parties

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

Amounts owed to related
parties
2022 2021
£ £
Entities with common trustees 4,000 4,000
Trustees 18,000 18,000
22,000 22,000

All amounts outstanding are unsecured and interest free.

The amount due from entities with common trustees is repayable on demand, all other amounts are repayable equally over 5 years, after a remaining period of 2 years without repayment.

The following amounts were outstanding at the reporting end date:

Amounts owed by related
parties
2022 2021
£ £
Entities with common trustees 1,710 1,710
1,710 1,710

No guarantees have been given or received.