2024-07-31-accounts - People's Theatre Arts Group Limited

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Draft Financial Statements at 01 October 2024 at 10:26:17

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 2024

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Chairman	A De'Ath
Trustees	S Appleby
	P Willis
	X Burbridge
	A Childs
	S Cooper
	A Dalgliesh
	M Hope
	T Swinton
	J Wilson Craw
	M Burden	(Appointed 12 October 2023)
	K Corfield	(Appointed 12 October 2023)
	C Ellis	(Appointed 12 October 2023)
	L Heckels-Thompson	(Appointed 12 October 2023)
	C Mawston	(Appointed 12 October 2023)
	S Wallace	(Appointed 12 October 2023)
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
	Unit 2
	Gosforth Park Avenue
	Newcastle upon Tyne
	NE12 8EG
Bankers	Barclays Bank plc
	49 - 51 Northumberland Street
	Newcastle upon Tyne
	NE1 7AF

Draft Financial Statements at 01 October 2024 at 10:26:17 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 - 23

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) TRUSTEE'S REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2024

The trustees present their report and financial statements for the year ended 31 July 2024.

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

This year has been another wonderfully busy year in terms of our performances which have been well received and supported – in fact, other than the year we had to stage everything in the main theatre, we have played to our largest ever audience numbers overall. A great achievement and thanks to everyone involved in our productions, and congratulations to Prod Comm for choosing a wide variety of plays that have attracted so many people.

It has also been a year of challenges in terms of our building. It’s inevitable that a building dating from the 1930s will show its age now and again and the dreadful weather we have experienced hasn’t helped. A significant amount has had to be spent on roof repairs, drainage repairs, general maintenance on the building and so on. We are able to cope with this financially and it ratifies our reserves policy which states that we should aim to have 6 months expenditure in reserve. The fact that we had more than this is the reason we have been able to handle a significantly more expensive period than usual.

Thanks and congratulations are due to Xander and Alice for achieving a £15k grant towards our LED light replacement project. Looking to the future we have a significant amount of further work to continue the improvements to the building and to complete our LED project and the renewal of our SM environment. We will be looking for funding to assist with this.

And finally we want to take this opportunity to thank all our members for their continued support and commitment. Without you none of this could happen, and we look forward to another successful and exciting year to come.

Financial review

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

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2024

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 £1,233,715 (2023: £1,351,371) at the year end. Of this £210,501 (2023: £257,713) is unrestricted. £1,023,214 (2023: £1,090,348) is the restricted People’s Fund and the majority of this fund is now represented by tangible fixed assets, namely leasehold improvements.

The 'free reserves' of the charity (defined as those unrestricted funds not designated for specific purposes or tied up in fixed assets) stood at £94,638 at the year end (2023: £136,781).

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 Willis P Bradley (Resigned 12 October 2023) X Burbridge A Childs S Cooper A Dalgliesh A De'Ath (Resigned 12 October 2023) S Harrison (Resigned 12 October 2023) M Hope T Swinton K Worswick (Resigned 12 October 2023) J Wilson Craw M Burden (Appointed 12 October 2023) K Corfield (Appointed 12 October 2023) C Ellis (Appointed 12 October 2023) L Heckels-Thompson (Appointed 12 October 2023) C Mawston (Appointed 12 October 2023) S Wallace (Appointed 12 October 2023)

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 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2024

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 M Hope Secretary Chairman Dated: ......................... Dated:.........................

Draft Financial Statements at 01 October 2024 at 10:26:17 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 2024 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 2024 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 01 October 2024 at 10:26:17 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 Unit 2 Gosforth Park Avenue Newcastle upon Tyne NE12 8EG

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

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2024

Current financial year Unrestricted Unrestricted Restricted funds funds funds general designated 2024 2024 2024 Notes £ £ £ Income from: Donations and legacies 3 30,316 - 15,000 Charitable activities 4 241,745 - - Other trading activities 5 39,998 - - Investments 6 1,206 - - Total income 313,265 - 15,000 Expenditure on: Raising funds 7 46,416 - 9,834 Charitable activities 8 317,371 - 55,726 Other expenditure 10 - - 16,574 Total expenditure 363,787 - 82,134 Net expenditure (50,522) - (67,134) Transfers between funds 3,310 (3,310) - Net movement in funds (47,212) (3,310) (67,134) Reconciliation of funds: Fund balances at 1 August 2023 257,713 3,310 1,090,348 Fund balances at 31 July 2024 210,501 - 1,023,214	Total 2024 £ 45,316 241,745 39,998 1,206 328,265 56,250 373,097 16,574 445,921 (117,656) - (117,656) 1,351,371 1,233,715	Total 2023 £ 72,076 184,288 57,070 306 313,740 54,079 278,216 16,975 349,270 (35,530) - (35,530) 1,386,901 1,351,371

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

Draft Financial Statements at 01 October 2024 at 10:26:17 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 2024

Prior financial year
Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
designated
2023
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 expenditure
10
-
-
16,975
Total expenditure
266,735
-
82,535
Net income/(expenditure) and movement in funds
47,005
-
(82,535)
Reconciliation of funds:
Fund balances at 1 August 2022
210,708
3,310
1,172,883
Fund balances at 31 July 2023
257,713
3,310
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

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) BALANCE SHEET

AS AT 31 JULY 2024

Notes Fixed assets Tangible assets 14 Current assets Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 18 Net assets The funds of the company Restricted income funds 20 Unrestricted funds - general Unrestricted funds - designated	2024 £ £ 1,564,239 45,649 77,623 123,272 (46,847) 76,425 1,640,664 (406,949) 1,233,715 1,023,214 210,501 - 1,233,715	2023 £ £ 1,634,868 23,087 197,147 220,234 (72,519) 147,715 1,782,583 (431,212) 1,351,371 1,090,348 257,713 3,310 1,351,371

The financial statements were approved by the trustees on .........................

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

M Hope Chairman

Company registration number 00242886 (England and Wales)

10 -

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

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 or grantors 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.

11 -

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

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 -

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

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.

13 -

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

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.

14 -

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

3 Donations and legacies

Unrestricted Restricted funds funds 2024 2024 £ £ Donations and gifts 13,283 - Legacies receivable 285 - Grants 2,500 15,000 Membership subscriptions 14,248 - 30,316 15,000	Total Unrestricted funds 2024 2023 £ £ 13,283 10,341 285 17,209 17,500 29,843 14,248 14,683 45,316 72,076	Total Unrestricted funds 2024 2023 £ £ 13,283 10,341 285 17,209 17,500 29,843 14,248 14,683 45,316 72,076
		72,076

Grants receivable for core activities

Grants receivable for core activities
Unrestricted Restricted funds funds 2024 2024 £ £ Charitable Trusts 2,500 15,000 Other Government Grants - - 2,500 15,000	Total Unrestricted funds 2024 2023 £ £ 17,500 26,500 - 3,343 17,500 29,843
		29,843

4 Charitable activities

	Unrestricted	Unrestricted
	funds	funds
	2024	2023
	£	£
Play tickets	223,398	172,102
Programme sales	4,904	4,031
Theatre tax relief	13,443	8,155
	241,745	184,288

15 -

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

5 Other trading activities

	Unrestricted	Unrestricted
	funds	funds
	2024	2023
	£	£
Premises hire	18,547	36,733
Wardrobe and equipment hire	591	1,683
Green room	14,582	17,074
Sundry	6,278	1,580
Other trading activities	39,998	57,070

6 Investments

			Unrestricted	Unrestricted
			funds	funds
			2024	2023
			£	£
Interest receivable			1,206	306
Raising funds
	Unrestricted	Restricted	Total	Total
	funds	funds
	2024	2024	2024	2023
	£	£	£	£
Fundraising and publicity
Other fundraising costs	-	-	-	1,000
Support costs	46,416	9,834	56,250	53,079
	46,416	9,834	56,250	54,079
For the year ended 31 July 2023
Fundraising and publicity	44,245	9,834		54,079

7 Raising funds

16 -

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

8 Charitable activities

Royalties Stage expenses Water Wardrobe expenses Repairs and renewals Props 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	2024 £ 6,262 7,548 1,393 4,177 114,365 2,494 8,683 1,186 2,160 13,471 32,231 193,970 168,852 10,275 373,097 317,371 55,726 373,097	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

17 -

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

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 £ £ 64,744 - 70,629 - 36,473 - 13,364 - 30,713 - 3,172 - 4,508 - 1,499 - - 2,000 - 8,275 225,102 10,275 56,250 - 168,852 10,275 225,102 10,275	2024 £ 64,744 70,629 36,473 13,364 30,713 3,172 4,508 1,499 2,000 8,275 235,377 56,250 179,127 235,377	2023 Basis of allocation £ 61,570 Staff time 67,831 Use of premises 36,797 Use of premises 12,581 Use of premises 28,392 Use of premises 3,303 Use of premises 1,546 Use of premises 3,115 Use of premises 2,000 Governance 6,962 Governance 224,097 53,079 171,018 224,097

Governance costs includes payments to the auditors of £2,000 (2023: £2,000) for audit fees and £815 (2023: £815) for non audit services.

10 Other

	Restricted	Restricted
	funds	funds
	2024	2023
	£	£
Financing costs	16,574	16,975

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 a gross salary £17,293 (2023: £15,199) during the year in respect of his position as theatre technician.

18 -

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

12 Employees

The average monthly number of employees during the year was:

Operating of theatre Employment costs Wages and salaries Other pension costs	2024 Number 9 2024 £ 63,894 850 64,744	2023 Number 8
		2023 £ 60,659 911
		61,570

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

13 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

14 Tangible fixed assets

Leasehold improvements £ Cost At 1 August 2023 2,054,980 At 31 July 2024 2,054,980 Depreciation and impairment At 1 August 2023 420,112 Depreciation charged in the year 70,629 At 31 July 2024 490,741 Carrying amount At 31 July 2024 1,564,239 At 31 July 2023 1,634,868	Computer equipment £ 16,168 16,168 16,168 - 16,168 - -	Total £ 2,071,148
		2,071,148
		436,280 70,629
		506,909
		1,564,239
		1,634,868

19 -

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

15 Debtors

Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income	2024 £ 12,076 2,767 30,806 45,649	2023 £ 9,585 2,767 10,735
		23,087

16 Loans and overdrafts

Debenture loans Other loans Payable within one year Payable after one year	2024 £ 387,212 30,000 417,212 10,263 406,949	2023 £ 397,057 44,000
		441,057
		9,845 431,212

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	2024 £ 10,263 5,154 6,137 4,179 21,114 46,847 2024 £ 406,949	2023 £ 9,845 8,403 5,912 12,246 36,113
		72,519
		2023 £ 431,212

20 -

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

19 Retirement benefit schemes

Retirement benefit schemes
	2024	2023
Defined contribution schemes	£	£
Charge to profit or loss in respect of defined contribution schemes	850	911

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20 Restricted funds

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

	At 1 August	At 1 August	Incoming	Resources	At 31 July
		2023	resources	expended	2024
		£	£	£	£
Redevelopment fund		1,090,348	-	(82,134)	1,008,214
LED Lighting		-	15,000	-	15,000
		1,090,348	15,000	(82,134)	1,023,214
Previous year:	At 1 August		Incoming	Resources	At 31 July
		2022	resources	expended	2023
		£	£	£	£
Redevelopment fund		1,172,883	-	(82,535)	1,090,348

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

21 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used.

At 1 August 2023 Incoming resources Resources expended £ £ £ Technical equipment upgrades 3,310 - - General funds 257,713 313,265 (363,787) 261,023 313,265 (363,787)	Transfers At 31 July 2024 £ £ (3,310) - 3,310 210,501 - 210,501	Transfers At 31 July 2024 £ £ (3,310) - 3,310 210,501 - 210,501
		210,501

21 -

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

21 Unrestricted funds Previous year: At 1 August 2022 Incoming resources Resources expended £ £ £ Technical equipment upgrades 3,310 - - General funds 210,708 313,740 (266,735) 214,018 313,740 (266,735)	(Continued) Transfers At 31 July 2023 £ £ - 3,310 - 257,713 - 261,023

The designated fund for technical equipment upgrades was no longer required at the year end and has been transferred into general unrestricted funds.

22 Analysis of net assets between funds

Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
designated
2024
2024
2024
£
£
£
At 31 July 2024:
Tangible assets
115,863
-
1,448,376
Current assets/(liabilities)
124,638
-
(48,213)
Long term liabilities
(30,000)
-
(376,949)
210,501
-
1,023,214
Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
designated
2023
2023
2023
£
£
£
At 31 July 2023:
Tangible assets
120,932
-
1,513,936
Current assets/(liabilities)
180,781
3,310
(36,376)
Long term liabilities
(44,000)
-
(387,212)
257,713
3,310
1,090,348

Total
2024
£
1,564,239
76,425
(406,949)
1,233,715
Total
2023
£
1,634,868
147,715
(431,212)
1,351,371

23 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 -

Draft Financial Statements at 01 October 2024 at 10:26:17 PEOPLE'S THEATRE ARTS GROUP LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

24 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
	2024	2023
	£	£
Entities with common trustees	4,000	4,000
Trustees	10,000	18,000
	14,000	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
	2024	2023
	£	£
Entities with common trustees	1,710	1,710
	1,710	1,710

No guarantees have been given or received.

23 -