2023-07-31-accounts - People's Theatre Arts Group Limited

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Draft Financial Statements at 22 September 2023 at 11:53:36

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 2023

Draft Financial Statements at 22 September 2023 at 11:53:36 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Chairman	A De'Ath
Trustees	S Appleby
	P Birleson	(Appointed 20 September 2022)
	P Bradley
	X Brouwer
	A Childs
	SE Cooper
	A Dalgliesh
	A De'Ath
	S Harrison
	M Hope
	T Swinton
	K Worswick
	J Wilson Craw	(Appointed 20 September 2022)
Secretary	H Birleson
Treasurer	K Scott
Charity number	220256
Company number	00242886
Registered office	Stephenson Road
	Newcastle upon Tyne
	NE6 5QF
Auditor	Sumer Auditco Limited
	The Beehive Beehive Ring Road
	London Gatwick Airport
	Gatwick
	United Kingdom
	RH6 0PA
Bankers	Barclays Bank plc
	49 - 51 Northumberland Street
	Newcastle upon Tyne
	NE1 7AF

Draft Financial Statements at 22 September 2023 at 11:53:36 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

Draft Financial Statements at 22 September 2023 at 11:53:36 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) TRUSTEE'S REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2023

The trustees present their report and financial statements for the year ended 31 July 2023.

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 [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

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

We've had another great year and our strength, community spirit and imagination have shone through. We have produced a wide range of challenging productions, we have displayed the work of a number of talented local artists in our Foyer Gallery and open mic nights, we now have established Wednesday coffee mornings and a monthly roleplay gaming group which are open to all, and we thank all our volunteers who give their time so generously to enable this to happen. We also continue to hire our venue for community ventures, such as dance schools, the Heaton Schools Shakespeare Festival, poetry readings and comedy nights, and parent and baby mornings. The People's Theatre is a very special place.

We have made some important improvements to our main stage rigging and this will enable our LED lighting project to get underway. The whole project will take a number of years to complete but we now have the right basis on which to build. The main stage work meant that 2 shows had to be moved to the studio and we do thank everyone for their help in making this change a successful one. Inevitably the move reduced the audience from these shows but we did the most that was possible in putting on extra performances and maximising the audience capacity.

We also want to thank our members, and other loyal followers, for their continued support in the form of donations. We are a strong and thriving community and look forward to next year with great anticipation.

Financial review

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

Draft Financial Statements at 22 September 2023 at 11:53:36 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2023

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 :-

It would give us time to readjust our working model to ensure that our future income did cover our costs.
It would enable us to cover most unexpected large expenses.
In the worst case scenario of the theatre having to close, we would have sufficient funds to continue to pay running costs on the building until such time as these would no longer be our responsibility. Additionally we would have funds to cover professional legal or financial advisors if they were needed.

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.

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 Birleson (Appointed 20 September 2022) P Bradley X Brouwer A Childs SE Cooper A Dalgliesh A De'Ath S Harrison L Heckels-Thompson (Resigned 20 September 2022) C Hope (Resigned 20 September 2022) M Hope M Smith (Resigned 20 September 2022) T Swinton K Worswick J Wilson Craw (Appointed 20 September 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:

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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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 Sumer Auditco Limited be reappointed as auditor of the company will be put at a General Meeting.

Draft Financial Statements at 22 September 2023 at 11:53:36 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2023

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: .........................

Draft Financial Statements at 22 September 2023 at 11:53:36 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 2023 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:

give a true and fair view of the state of the charitable company's affairs as at 31 July 2023 and of its incoming resources and application of resources, including its income and expenditure, 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 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:

the information given in the trustee's report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the trustee's report has been prepared in accordance with applicable legal requirements.
5 -

Draft Financial Statements at 22 September 2023 at 11:53:36 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:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustee's report and from the requirement to prepare a strategic report.

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.

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:

• Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law and Charity Law.

• Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the charity and therefore may have a material effect on the financial statements include compliance with charitable objectives, public benefit, fundraising regulations, safeguarding and health and safety legislation.

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 noncompliance 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 Sumer Auditco Limited Statutory Auditor The Beehive Beehive Ring Road Gatwick RH6 0PA

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

Draft Financial Statements at 22 September 2023 at 11:53:36 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2023

Current financial year

Unrestricted Restricted funds funds 2023 2023 Notes £ £ Income from: Donations and legacies 3 72,076 - Charitable activities 4 184,288 - Other trading activities 5 57,070 - Investments 6 306 - Total income 313,740 - Expenditure on: Raising funds 7 44,245 9,834 Charitable activities 8 222,490 55,726 Other 10 - 16,975 Total resources expended 266,735 82,535 Net income/(expenditure) for the year/ Net movement in funds 47,005 (82,535) Fund balances at 1 August 2022 214,018 1,172,883 Fund balances at 31 July 2023 261,023 1,090,348	Total 2023 £ 72,076 184,288 57,070 306 313,740 54,079 278,216 16,975 349,270 (35,530) 1,386,901 1,351,371	Total 2022 £ 65,007 196,889 30,514 8 292,418 51,938 227,972 17,359 297,269 (4,851) 1,391,752 1,386,901

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.

Draft Financial Statements at 22 September 2023 at 11:53:36 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 2023

Prior 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
10
-
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

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.

Draft Financial Statements at 22 September 2023 at 11:53:36 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) BALANCE SHEET

AS AT 31 JULY 2023

2023
Notes
£
£
Fixed assets
Tangible assets
14
1,634,868
Current assets
Debtors
15
23,087
Cash at bank and in hand
197,147
220,234
Creditors: amounts falling due within
one year
17
(72,519)
Net current assets
147,715
Total assets less current liabilities
1,782,583
Creditors: amounts falling due after
more than one year
18
(431,212)
Net assets
1,351,371
Income funds
Restricted funds
19
1,090,348
Unrestricted funds
Designated funds
3,310
General unrestricted funds
257,713
261,023
1,351,371
The financial statements were approved by the Trustees on .........................
..............................
A De'Ath
Trustee
Company Registration No. 00242886

2022
£
£
1,620,702
43,295
222,627
265,922
(54,666)
211,256
1,831,958
(445,057)
1,386,901
1,172,883
3,310
210,708
214,018
1,386,901

10 -

Draft Financial Statements at 22 September 2023 at 11:53:36 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

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 financial statements have been prepared in accordance with the company'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 company is a Public Benefit Entity as defined by FRS 102.

The company has taken advantage of the provisions in the SORP for charities 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.

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.

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Draft Financial Statements at 22 September 2023 at 11:53:36 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

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.

12 -

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.

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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.

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Draft Financial Statements at 22 September 2023 at 11:53:36 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2023

3 Donations and legacies

	Unrestricted	Unrestricted
	funds	funds
	2023	2022
	£	£
Donations and gifts	10,341	17,561
Legacies receivable	17,209	18,000
Grants	29,843	16,447
Membership subscriptions	14,683	12,999
	72,076	65,007

Grants receivable for core activities

Grants receivable for core activities
	Unrestricted	Unrestricted
	funds	funds
	2023	2022
	£	£
Coronavirus Job Retention Scheme	-	3,359
Other Government Grants	3,343	7,088
Charitable Trusts	26,500	6,000
	29,843	16,447

4 Charitable activities

	Unrestricted	Unrestricted
	funds	funds
	2023	2022
	£	£
Play tickets	172,102	193,179
Programme sales	4,031	3,710
Theatre tax relief	8,155	-
	184,288	196,889

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Draft Financial Statements at 22 September 2023 at 11:53:36 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2023

5 Other trading activities

	Unrestricted	Unrestricted
	funds	funds
	2023	2022
	£	£
Premises hire	36,733	16,049
Wardrobe and equipment hire	1,683	133
Green room	17,074	13,392
Sundry	1,580	940
Other trading activities	57,070	30,514

6 Investments

			Unrestricted	Unrestricted
			funds	funds
			2023	2022
			£	£
Interest receivable			306	8
Raising funds
	Unrestricted	Restricted	Total	Total
	funds	funds
	2023	2023	2023	2022
	£	£	£	£
Fundraising and publicity
Other fundraising costs	1,000	-	1,000	-
Support costs	43,245	9,834	53,079	51,938
	44,245	9,834	54,079	51,938
For the year ended 31 July 2022
Fundraising and publicity	42,131	9,807		51,938

7 Raising funds

16 -

Draft Financial Statements at 22 September 2023 at 11:53:36 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2023

8 Charitable activities

Royalties Stage expenses Water Wardrobe expenses Repairs and renewals Props Fees and expenses Other direct costs Programmes House expenses Publicity Irrecoverable VAT Share of support costs (see note 9) Share of governance costs (see note 9) Analysis by fund Unrestricted funds Restricted funds	2023 £ 13,975 19,560 2,603 1,347 15,834 826 - 1,767 960 4,361 14,394 31,571 107,198 162,056 8,962 278,216 222,490 55,726 278,216	2022 £ 8,601 8,819 1,178 2,181 12,493 1,321 400 2,221 1,309 5,470 15,091 6,408
		65,492 152,015 10,465
		227,972
		172,398 55,574
		227,972

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9 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 £ £ 61,570 - 67,831 - 36,797 - 12,581 - 28,392 - 3,303 - 1,546 - 3,115 - - 2,000 - 6,962 215,135 8,962 53,079 - 162,056 8,962 215,135 8,962	2023 £ 61,570 67,831 36,797 12,581 28,392 3,303 1,546 3,115 2,000 6,962 224,097 53,079 171,018 224,097	2022 Basis of allocation £ 60,026 Staff time 67,093 Use of premises 33,236 Use of premises 10,838 Use of premises 24,839 Use of premises 3,374 Use of premises 1,747 Use of premises 2,800 Use of premises 2,000 Governance 8,465 Governance 214,418 51,938 162,480 214,418

Governance costs includes payments to the auditors of £2,000 (2022: £2,000) for audit fees and £815 (2022: £815) for non audit services.

10 Other

	Restricted	Restricted
	funds	funds
	2023	2022
	£	£
Financing costs	16,975	17,359

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 £15,199 (2022: £15,400) during the year in respect of his position as theatre technician.

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12 Employees

The average monthly number of employees during the year was:

Operating of theatre Employment costs Wages and salaries Other pension costs	2023 Number 8 2023 £ 60,659 911 61,570	2022 Number 8
		2022 £ 59,334 692
		60,026

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

13 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

14 Tangible fixed assets

Tangible fixed assets
Leasehold improvements Computer equipment £ £ Cost At 1 August 2022 1,972,983 16,168 Additions 81,997 - At 31 July 2023 2,054,980 16,168 Depreciation and impairment At 1 August 2022 352,281 16,168 Depreciation charged in the year 67,831 - At 31 July 2023 420,112 16,168 Carrying amount At 31 July 2023 1,634,868 - At 31 July 2022 1,620,702 -	Total £ 1,989,151 81,997
	2,071,148
	368,449 67,831
	436,280
	1,634,868
	1,620,702

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Draft Financial Statements at 22 September 2023 at 11:53:36 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2023

15 Debtors

Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income Loans and overdrafts Debenture loans Other loans Payable within one year Payable after one year	2023 £ 9,585 2,767 10,735 23,087 2023 £ 397,057 44,000 441,057 9,845 431,212	2022 £ 10,603 2,767 29,925
		43,295
		2022 £ 406,501 48,000
		454,501
		9,444 445,057

16 Loans and overdrafts

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.

17 Creditors: amounts falling due within one year

Borrowings Other taxation and social security Trade creditors Other creditors Accruals and deferred income 18 Creditors: amounts falling due after more than one year Borrowings	2023 £ 9,845 8,403 5,912 12,246 36,113 72,519 2023 £ 431,212	2022 £ 9,444 11,910 5,096 11,356 16,860
		54,666
		2022 £ 445,057

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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
	2022				2023
	£	£	£	£	£
Restricted funds:
Redevelopment fund	1,172,883	-	(82,535)	-	1,090,348
Unrestricted funds:
General fund	214,018	313,740	(266,735)	-	257,713
	1,386,901	313,740	(349,270)	-	1,351,371

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
	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)	(31,817)	214,018
Technical equipment upgrades	-	-	-	3,310	3,310
	1,391,752	292,418	(297,269)	-	1,386,901

20 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.

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21 Analysis of net assets between funds

Unrestricted funds Restricted funds 2023 2023 £ £ Fund balances at 31 July 2023 are represented by: Tangible assets 120,932 1,513,936 Current assets/(liabilities) 184,091 (36,376) Long term liabilities (44,000) (387,212) 261,023 1,090,348	Total Unrestricted funds Restricted funds 2023 2022 2022 £ £ £ 1,634,868 41,318 1,579,384 147,715 220,700 (9,444) (431,212) (48,000) (397,057) 1,351,371 214,018 1,172,883	Total 2022 £ 1,620,702 211,256 (445,057
		1,386,901

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 parties 2023 £ Entities with common trustees 4,000 Trustees 18,000 22,000	related 2022 £ 4,000 18,000
	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
	2023	2022
	£	£
Entities with common trustees	1,710	1,710
	1,710	1,710

No guarantees have been given or received.

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