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2023-10-31-accounts

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

TRUSTEES ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

FOR

HARROGATE INTERNATIONAL FESTIVAL LIMITED (A company Limited by guarantee)

Registered Charity Number: 244861

REGISTERED NUMBER: 00858029

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

Contents

Page
Charity Reference and Administrative Details 1
Trustees’ Annual Report 2-8
Independent Auditor’s Report 9-11
Consolidated Statement of Financial Activities (including Income and Expenditure Account) 12
Consolidated and Charity Balance Sheets 13
Consolidated Statement of Cash Flows 14
Charity Statement of Cash Flows 15
Notes to the Financial Statements 16-25

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED CHARITY REFERENCE AND ADMINISTRATIVE DETAILS YEAR ENDED 31 OCTOBER 2023

Charity registration number 244861 Company registration number 00858029 Honorary President Peter Blackburn CBE Trustees Joanna Fiona Armitage – Chairman Matthew Osbourne - Treasurer John Bywater Rod Findlay – appointed February 2024 Jenny Harris Lucy Hind Iain Jenkins Stan Lumley -appointed June 2023 Craig Ratcliffe Susan Rumfitt Secretary Sharon Canavar Registered office 32 Cheltenham Parade Harrogate North Yorkshire HG1 1DB Auditor TC Group Registered Auditors 6 Queen Street Leeds LS1 2TW Solicitor McCormicks Solicitors Wharfedale House 37 East Parade Harrogate HG1 5LQ Bankers HSBC 7 Prospect Crescent Harrogate HG1 1RN and Scottish Widows 67 Morrison Street Edinburgh EH3 8YJ Key Staffing Chief Executive Sharon Canavar Literature Festivals Manager Clemence Roux Music & Events Manager Rosie Gilbertson Digital & Comms Manager Lisa McKiddie Financial Controller Ruth Moody

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DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 OCTOBER 2023

The Trustees present their Annual Report (including the Strategic Report) and the audited financial statements of the charity for the year ended 31 October 2023. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Directors and Trustees of the charity

The Board of Directors is the governing body of Harrogate International Festival Limited. Members of the Board are also Trustees as defined by the Charities Act. The Board meets at least four times a year and it sets the policies of the Charity. It is also responsible for overseeing the sound management of the organisation and for ensuring that its policies are carried out by the staff through the Chief Executive.

The Board is made up of a maximum of thirteen trustees. The Board has the power to appoint additional Trustees as it considers fit to do so. The Board keeps under review its skills mix, with the current Board having a broad range of professional, business and educational skills and experience. The trustees who have served during the year and since the year end were as follows:

Joanna Fiona Armitage – Chairman Matthew Osbourne - Treasurer John Bywater Rod Findlay Jenny Harris Lucy Hind Iain Jenkins Stan Lumley Craig Ratcliffe Susan Rumfitt

All members of the Board have confirmed that they do not have and have not had any beneficial interest in any contract with Harrogate International Festival Limited. Board members receive no remuneration or other financial benefit. Harrogate International Festival Limited maintains a register of Trustees’ interests.

Harrogate International Festival Limited (“Harrogate International Festivals”) is a Registered Charity and a Registered Company limited by guarantee. In the event of the Company being wound up members are required to contribute an amount not exceeding £1.

Objectives and activities

Vision :

To be a leading portfolio of arts festivals with an evolving and innovative offer, changing lives through cultural experience.

Mission :

Delivering distinctive and inspiring cultural experiences for all.

Objectives :

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DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 OCTOBER 2023

We have referred to the public benefit guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our objectives and in planning our future activity.

The aims of Harrogate International Festival Limited are undertaken specifically to ensure the charitable objectives meet the public benefit requirement and the Charities Act 2011.

Directors and Trustees

The Board of Directors is the governing body of Harrogate International Festivals. Members of the Board are also Trustees as defined by the Charities Act. The Board meets at least four times a year and it sets the policies of the Charity. It is also responsible for overseeing the sound management of the organisation and for ensuring that its policies are carried out by the staff through the Chief Executive.

The Board is made up of a maximum of thirteen trustees. All of the Trustees named on page 2 served during the year. The Board has the power to appoint additional Trustees as it considers fit to do so. The Board keeps under review its skills mix, with the current Board having a broad range of professional, business and educational skills and experiences.

The Board interviews potential new Trustees prior to appointment. Each newly elected Board member receives guidance notes about their role and responsibilities as a charity Trustee and company Director as part of a comprehensive induction process. Training events are organised to update Trustees’ knowledge on general charity topics and specific matters regarding Harrogate International Festivals.

In accordance with Article 37 of the Articles of Association Matt Osbourne and Craig Ratcliffe retire from the Board and, being eligible, offer themselves for re-election.

All members of the Board have confirmed that they do not have and have not had any beneficial interest in any contract with Harrogate International Festivals. Board members receive no remuneration or other financial benefit. Harrogate International Festivals maintains a register of Trustees’ interests.

Remuneration of Key Management Personnel

The Resources sub-group determines the remuneration, benefits and pension arrangements of all staff including Key Management Personnel.

Subsidiary Company

The Company has a wholly owned subsidiary company, Harrogate Festival Development Ltd, which is engaged in fundraising activities.

STRATEGIC REPORT

Achievements in the year

Following a challenging number of years due to the pandemic and the delayed re-opening, Harrogate International Festivals was able to rebuild the programmes throughout 2023. For the first time post pandemic, there was the opportunity to produce a full season of events, rebalancing our work to retain our exciting outdoor activations whilst rebuilding our heritage, delivering classical programmes in innovative ways.

Despite the rebuilding of our own programmes there are a number of ongoing challenges within the sector including the cost of living crises and the ongoing audience challenge post pandemic, and with a number of cancellations across the festival landscape for 2024, we are pleased that a number of sponsors, partners and our audiences have continued their vital support for our organisation.

2023 saw the Festivals further rebuild the team and continue to deliver a wide variety of programmes across the year.

Our year at a glance:

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DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 OCTOBER 2023

Harrogate International Sunday Series and Harrogate Music Festival

Our classical music programme began in Spring 2023, inviting audiences to a full season of chamber concerts as part of the Harrogate International Sunday Series , including Ashley Wass, Trio Balthasar, Jeneba Kanneh-Mason and Coco Tomita. The programmes enticed our core classical audiences back into the concert hall and rebuilt confidence in attending live events for this particular audience demographic.

Our summer season of music with the Harrogate Music Festival welcomed Chineke! Orchestra ahead of their appearance at the Proms, as well as producing a series of Guest Curated events with Robin Green, producing a residency featuring 12 musicians in 10 concerts over 4 days. These events were, designed to attract new audiences to chamber music using mixed programmes, use of new and innovative spaces and musicians that engaged with the community for the duration of their season.

Premiers across the summer season included the first live performance of our lockdown commission Eclipse by Dr David Lancaster and the launch of Mike Lovatt’s Brass Pack, an innovative new ensemble featuring some of the best of the UK’s performers with new arrangements from Colin Skinner. Julian Lloyd Webber created a new show for the Festival with his wife Jiaxin Cheng and our featured young musicians continued to provide a platform for young artists from across the world, including awarding pianist Iwan Owen the Dorothy Parkinson Memorial Award for Young British Artists.

Literature

A host of literature events took place across the year, with the largest celebrating the very best in crime fiction with the Theakston Old Peculier Crime Writing Festival. Noted as a firm date in the literary calendar the 2023 Festival celebrated the 20[th] Anniversary of the event and featured a varied line up of special guests alongside new voices and diverse panels. The 2023 programme was curated by award winning novelist Vaseem Khan, the first British Asian crime writer to chair the Festival with a focus on embracing inclusivity in publishing. With the lineup including Val McDermid, Lisa Jewell with Ruth Ware, Ann Cleeves, SA Cosby with Chris Hammer and Jeffery Deaver. Lee and Andrew Child made their shared debut on the Harrogate stage with Lucy Worsley closing the weekend. The festival also produces the most prestigious award in crime fiction; the Theakston Old Peculier Crime Novel of the Year with MW Craven taking the crown in 2023, and Ann Cleeves awarded the Theakston Old Peculier Outstanding Contribution Award to Crime Fiction.

The Raworths Harrogate Literature Festival has become the host ticket on the national circuit. Hosted over a long weekend in the autumn and the 11[th] year faced new challenges with Storm Babet causing chaos on the road and rail network, recreating last minute programming challenges for the team. The 2023 line up included Sir Ranulph Fiennes, Gaby Roslin, Sir Vince Cable and Carrie & David Grant.

Berwins Salon North remains a key series across the year consisting of the most stimulating ideas in art, science and psychology designed to change your life for the better. Speakers imparting their knowledge in 2023 included a range of high profile speakers focussed on connection, decision making, and modern Britain. These six events feature three speakers each evening with those sharing knowledge across the year including Robin Ince, Gurdeep Loyal and Ian Dunt.

Theatre & Family

Oddsocks Theatre returned to the Festival once more with another high energy production of Shakespeare, whilst the specially curated Children’s Festival brought a diverse programme of fun to the programme including Northern Ballet Theatre and History’s Maid.

Outdoor and Immersive

Outdoor work once again was a big part of our outreach and opportunity for our community with the Carnival returning with a spectacular street parade and a free for all the family event across the town featuring global music and dance stages. Over 40,000 people attended the event and participated in a a host of workshops and participatory events, bringing diversity to the town from all over the world.

Our Taproom Sessions was a new addition to the programme in 2024 programming chamber music in unique settings to reach new audiences with our partners Lilypad, the premiere of Eclipse also took place with a free, live performance in the town centre featuring original soloist Mike Lovatt and young people from across the music networks in the town.

We also programmed a free Short Story Dispenser as part of the Raworths Festival, with old and young alike discovering new stories as part of their reading journey.

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DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 OCTOBER 2023

HIF+

Across the year the Harrogate International Festivals directly engaged with 100s of young people and underrepresented communities through our range of work under the umbrella of HIF+ which provides opportunities for learning and engagement throughout our programmes.

This year we offered over 150 days of projects and over 103,000 live arts experiences for our communities. 80% of all our events were free to access with costs for children subsidised by HIF and our partners. Our goal is to ensure provision of high quality live arts experiences for people of all ages across Harrogate and the north. Our HIF+ strand runs through everything that we do through an inclusive and accessible arts programme.

Our work is shaped by a number of priorities, many of which seek to negate issues highlighted by local health, education and governmental organisations as problems within our region.

Our work across the year included:

• Talking Heads Installation as part of the Raworths Harrogate Literature Festival
• PubLit Trail
town
• Family Literature Trail across the local parks and woods
• Schools literacy engagement programmes
• North Pole Post Office
• Big Read
in Residence and a host of free books
• Young Musicians platform for the rising stars of the future
• Open rehearsals to large scale outdoor events
• Masterclasses with Mike Lovatt
• New Blood platform for debut authors
• Creative Writing Days for aspiring authors
• Children’s Festival featuring a range of participatory events
• Carnival
• HIF@ Home Digital deliver which is free to access including a range of podcasts and
events for our at home audiences

HIF Player

A large part of our work over the last three years has taken the form of digital events within our online communities. From free to access and ad free podcasts to live and online events, HIF continues to attract a wide range of artists and audiences for this continued strand of our work. Our podcasts are downloaded thousands of times across the world and regularly chart in the podcast charts.

2023 continued to be a period of growth and challenge. The organisation demonstrated itself to be agile, to lead and continue during unknown times and to continue our work bringing arts to communities.

Despite the financial and resource challenges we are incredibly proud of the work we have done and our achievements over the last 12 months. We remain incredibly grateful to our many partners and supporters who have enabled us to continue our vital work including the Liz & Terry Bramall Foundation, Harrogate Borough Council, and our title sponsors Raworths, T&R Theakston and Berwins, along with the many sponsors and donors who have continued to support us over this period.

Future 50 Appeal

Harrogate International Festivals relies on the generous support of many funders, donors and sponsors. Each year HIF has to raise over 98% of its income to deliver our year-round programme. As a charity with no core funding it is a priority that these funds are raised annually in order to continue our vibrant programme of work.

In 2015, HIF launched our Future 50 Appeal to address this ongoing deficit of managing ambition against resource, launching an Appeal to raise £1m and create a secure future for the charity. The Appeal is critical to HIF being a sustainable organisation, with the ability to make full use of our artistic and cultural inheritance and create life changing opportunities in the arts. It will ensure that we continue to create access to the arts for the widest range of audiences and participants regardless of background and personal circumstance. The fundraising for the Appeal continues and is led by the Chairman of the Appeal; Fiona Movley. The Board thank her and the donors, for their support and generosity.

In line with the ambitions for the Future 50 Appeal, we intend to build on the success of large-scale outdoor arts delivery such as Carabosse programmed in 2016 which reached over 25,000 people, Luminarium from Architects of Air which reached a capacity audience of 5000 and commissions such as Museum of the Moon and the 1571 lighting installation.

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DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 OCTOBER 2023

Funds are traditionally set aside to support new work, live art installation and diverse and accessible programmes, and this fund supported the Talking Heads Installation and the Chineke! performance during 2023.

This financial resource is key in enabling the charity to deliver ambitious and financially challenging artistic projects and reflects our ambition to use the Future 50 funding to develop and deliver an arts festival that is fit for purpose in the 21[st] century, reflecting our charitable objectives.

Financial review

Following the pandemic this year continues to be a challenging period of planning and delivery against a number of unknowns. Ensuring that audiences remain confident of attending events remains a challenge and ensuring sufficient resource for the level of delivery has been difficult with competition to recruit the best candidates being fierce.

Ticket sales for classical music continue to be a challenge, whilst sponsorship remained steady. Operational costs have increased significantly across a range of suppliers across the year, further challenging budgets during delivery.

The outturn for the year is an operational surplus of £1,294.

The Future 50 Appeal continued and HIF was able to add £45,611 after expenses to this Appeal which aims to create £1m in order to secure a long term future for the charity.

General review of the Charity’s financial position

Total income of the Charity and its subsidiary for 2023 was £1,129,238 (2022: £1,232,803), of which £1,082,927 supported the year round operational delivery and £46,311 was raised towards the Future 50 Appeal.

Total resources used amounted to £1,082,333 (2022: £1,111,191) of which £1,081,633 was operational delivery, and £700 (2022:£NIL) supported costs to deliver and run events associated with the Future 50 Appeal. Across the operational funds there was a surplus of £1,294 (2022: £60,312) after transfers and across all funds there was a surplus of £46,905 (2022: £121,612).

At 31 October 2023 the Charity’s consolidated net assets were £779,924 (2022: £733,019).

Principal sources of funding

Voluntary income and incoming resources from charitable activities are as follows: 33% of income was generated through ticket sales (2022: 33%), 21% through corporate sponsorships (2022: 22%) and 21% from grants and donations (2022: 29%). Additional income is made up of income on accommodation packages associated with the Theakston Old Peculier Crime Writing Festival, and miscellaneous income from Friends of the Festival, bank interest and consultancy.

Reserves policy

The Festival is most reliant on ticket income and sponsorship which are recognised as the income streams most at risk and susceptible to public tastes and business strategies. Therefore, our cash reserves are an essential defence to the inevitably cyclical nature of Festival funding, enabling us to fund developmental work throughout the year to support artistic risk or marketing investment.

The Charity’s reserves policy is to build and maintain sufficient operating reserves to provide cover for the inevitable fluctuations in revenue income, thus ensuring continuity of the Charity’s services. The charity bases this on six months of overhead running costs which is in the range of £140,000 to £185,000 per annum.

As at 31 October 2023 total reserves were £779,924 (2022: £733,019) of which £196,534 (2022: £195,240) was free reserves excluding designated funds.

As a celebration and legacy of the 50th Anniversary celebrations the Festival launched a Future 50 appeal to raise £1m to support the ambition of the organisation and protect the Festivals during difficult financial times.

Whilst our approach of anticipating financial challenges with reserves has, so far, proven sustainable, the funding landscape in the north of England continues to shrink. The charity has no regular annual income to plan beyond six months ahead, and this has an impact on both the scale and reach of our delivery. In short, the Festival’s ambition is hindered by resource.

We are determined to invest in our strengths of raising aspirations, creating opportunity and nurturing excellence, and this Appeal funding will allow us to make full use of our artistic and cultural inheritance, take more artistic risks to create life changing opportunities in the arts.

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DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 OCTOBER 2023

As at 31 October 2023 the amount of Future 50 fund held as a separate designated reserve was £553,533 (2022: 507,922).

Restricted funds held at 31 October 2023 totalled £NIL (2022: £NIL).

Volunteers

The Board acknowledges with gratitude the work and commitment of the many volunteers who willingly give their time to the considerable benefit of the charity. The total number of hours donated to the Charity by its volunteers in the year estimated to be in excess of 3000 hours.

Risk Assessment

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity. The Trustees are satisfied that management and control systems are in place to mitigate the Charity’s exposure to the major risks and the Trustees undertake to review those risks and controls each year. Key principal risks and plans and strategies for managing were:

**Risk ** Management
Financial:
- Weak Budgetary Controls and finance reporting		 -Budget linked to business planning and objectives, with
timely & accurate monitoring & reporting, Management
accounts provided for all Trustee meetings, monthly meet
with FinancialController.
-System and controls not operating as intended -Financial control procedures, defined responsibilities and
authorisation limits.
-New programming strands and more sophisticated
marketing methods expose greater financial risk		 -Annual review of aims and objectives with budgets linked
to business planning and objectives.
-Inadequate insurance cover -Annual review of cover.
-Lack of financial supervision by the Board -Ongoing analysis and review, Treasurer’s report at Board
meeting + rigorous analysis within the Resources Sub-
group.
-Dependency on income sources -Trustee engagement and commitment to fundraising,
Regular identification of major dependencies and
diversification plans.
-Level of unrestricted reserves held by the charity
detrimental to obtaining voluntary income		 -Adequate disclosures made in the reserves policy.
-Pandemic related shutdown -Awareness of govt comms to keep staff/audiences safe
-Reflate reserves where possible to support long-term
healthofthe organisation
Reputational:
-Decline in public perception of the charity		 -Communication with supporters and beneficiaries,
Quality financial, annual report and review reporting, PR
training/procedures.
-Adverse publicity -Review complaints procedures, review procedures,
crises management strategy for handling consistency of
key messages, nominated spokesperson etc.
-Breakdown in relationships with key stakeholders and
supporters		 -Regular contact and briefings, meet T&F of funders,
ongoing sponsor comms beyond the agreed term of
support. Keep funders up to date on progress, issues and
build good understanding of and relationships with similar
organisations through collaborative working and sharing
good practice.
Talent:
-No succession planning for key Board or senior
management positions		 -Review succession planning to identify skills gap, early
anticipation of Trustees/staff stepping down, open
dialogue
-Loss of key members of staff or trustees -Effective HR policies and procedures. Acknowledge the
risk fororganisations the size of HIF.
-Dependents on key individuals -Knowledge transfer. Empowerment and delegation.
Political/Regulatory:
-Failure to comply with operational regulations (data, H&S,
Child Protection)		 -Monitor the legal and regulatory changes, membership of
umbrella bodes/partner organisations.
-Data breach -Appraise systems and revise as appropriate, appraise
security
and
authorisation
procedures,
implement
measure to secure and protect data including secure back
up and regular review of procedures.

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 OCTOBER 2023

TRUSTEES’ ANNUAL REPORT
YEAR ENDED31 OCTOBER 2023
-Change in political climate regarding culture/festivals &
funding		 -Regular review with partners and shared information
throughumbrella bodies andnationalorganisations.
-Failure to meet statutory report requirements -Identification and access to professional advice,
compliance reviews.
-Failure to operate within charitable objects of powers -Annual review of charitable objectives, access to
professional advice.
-Charity lacks direction, strategy and forward planning -Annual review of aims and objectives, timely and accurate
financial and project reporting, regular contact between
Board and staff.
-Trustees insufficiently aware of the charity’s objectives
andlegalpowers		 -Induction training and appraisals.
-Ineffective contribution from trustees -Attendance,
contribution
and
action
at
Board,
engagement in fundraising, annual appraisal, recruitment
and appointment process.

AUDITORS

In accordance with the Companies Act 2006 a resolution proposing the reappointment of TC Group as Auditor will be put to the members.

TRUSTEES’ RESPONSIBILITIES STATEMENT

The trustees (who are also the directors of Harrogate International Festival Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This report has been prepared in accordance with the special provisions of Part VII of the Companies Act 2006 relating to small companies.

On behalf of the board

Sharon Canavar, Secretary 7/5/2024 Date:

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HARROGATE INTERNATIONAL FESTIVAL LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF HARROGATE INTERNATIONAL FESTIVAL LIMITED YEAR ENDED 31 OCTOBER 2023

Opinion

We have audited the financial statements of Harrogate International Festival Limited (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 October 2023 which comprise the Consolidated Statement of Financial Activities (Including Income and Expenditure Account), the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows, the Charity Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable 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 Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:

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HARROGATE INTERNATIONAL FESTIVAL LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF HARROGATE INTERNATIONAL FESTIVAL LIMITED

YEAR ENDED 31 OCTOBER 2023

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees (who are also the directors of the charitable company for the purposes 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 group’s and parent charitable 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under section 151 of the Charities Act 2011, the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

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HARROGATE INTERNATIONAL FESTIVAL LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF HARROGATE INTERNATIONAL FESTIVAL LIMITED YEAR ENDED 31 OCTOBER 2023

We designed and executed procedures in line with our responsibilities to detect material misstatements in respect of irregularities, including fraud. These procedures, together with the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements. There are inherent limitations in the audit procedures performed not least due to the following:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: 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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and its trustees 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 charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Hunter FCA (Senior Statutory Auditor) for and on behalf of TC Group Statutory Auditors Office: Leeds, West Yorkshire

7/5/2024 Date:

11

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 OCTOBER 2023

Income:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investments
5
Total income
Expenditure on:
Raising funds
Charitable activities
6
Total expenditure
Net income
Transfer
Net movement in funds
Reconciliation of funds:
Total funds brought
forward
Total funds carried
forward
16		 Unrestricted
operational
funds
Restricted
funds
£
£
89,709
100,000
865,216
-
22,059
-
5,943
-		 Operational
total
£
189,709
865,216
22,059
5,943		 Unrestricted
designated
funds
Total
2023
£
£
40,000
229,709
120
865,336
160
22,219
6,031
11,974		 Total
2022
£
376,710
840,978
14,437
678
982,927
100,000
29,378
-
952,255
100,000		 1,082,927
29,378
1,052,255		 46,311
1,129,238
700
30,078
-
1,052,255		 1,232,803
33,938
1,077,253
981,633
100,000		 1,081,633 700
1,082,333		 1,111,191
1,294
-
-
-		 1,294
-		 45,611
46,905
-
-		 121,612
-
1,294
-
195,240
-		 1,294
195,240		 45,611
46,905
537,779
733,019		 121,612
611,407
196,534
-		 196,534 583,390
779,924		 733,019

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised during the year.

The notes on pages 16 to 25 from part of these financial statements.

12

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED CONSOLIDATED AND CHARITY BALANCE SHEETS YEAR ENDED 31 OCTOBER 2023

Note
Fixed assets
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within
one year
13
Net current assets
Total assets less current liabilities
Charity Funds
Restricted funds
16
Unrestricted funds
16
Total charity funds		 2023
Group
£
-
-
71,299
986,301
1,057,600
(277,676)
779,924
779,924
-
779,924
779,924		 2022
Group
£
-
-
37,072
940,065
977,137
(244,118)
733,019
733,019
-
733,019
733,019		 2023
Charity
£
2
2
71,299
986,301
1,057,600
(277,678)
779,922
779,924
-
779,924
779,924		 2022
Charity
£
2
2
37,072
940,065
977,137
(244,120)
733,017
733,019
-
733,019
733,019

The trustees have prepared consolidated financial statements in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The financial statements were approved and authorised for issue by the Board.

Signed on behalf of the board of trustees

…………………………..

Joanna Fiona Armitage, Trustee

7/5/2024 Date: ……………………..

The notes on pages 16 to 25 form part of these financial statements.

Company registration number: 00858029

13

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 31 OCTOBER 2023

Note
Net cash flow from operating activities
18
Cash flow from investing activities
Interest received
Net cash flow from investing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalents consists of:
Cash at bank and in hand		 2023
£
34,262
11,974
11,974
46,236
940,065
986,301
986,301		 2022
£
90,947
678
678
91,625
848,440
940,065
940,065

The notes on pages 16 to 25 form part of the financial statements.

14

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED CHARITY STATEMENT OF CASH FLOWS YEAR ENDED 31 OCTOBER 2023

Note
Net cash flow from operating activities
18
Cash flow from investing activities
Interest received
Loans with subsidiary undertaking
Net cash flow from investing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalents consists of:
Cash at bank and in hand		 2023
£
32,424
11,974
1,838
13,812
46,236
940,065
986,301
986,301		 2022
£
142,309
678
(51,362)
(50,684)
91,625
848,440
940,065
940,065

The notes on pages 16 to 25 form part of these financial statements.

15

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 OCTOBER 2023

1 Summary of significant accounting policies

(a) General information and basis of preparation

Harrogate International Festival Limited is a registered charity and a company limited by guarantee incorporated in England. The address of the registered office is given in the charity information in the Charity information section of these financial statements. The nature of the charity’s operations and principal activities are given in the Strategic Report.

The charity constitutes a public benefit entity. The accounts have been prepared in accordance with the Charities SORP (FRS 102): Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, and the Charities Act 2011.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Group financial statements

The group financial statements consolidate the results of the charitable company and its wholly owned subsidiary Harrogate Festival Development Ltd on a line by line basis. A separate statement of financial activities for the Charitable Company itself is not presented as allowed by section 408 of the Company’s Act 2006.

The parent company’s surplus for the financial year was £46,905 (2022: £121,612).

(c) Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

(d) Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

16

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 OCTOBER 2023

1 Summary of significant accounting policies (continued)

(d) Income recognition (continued)

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.

Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

The charity receives government grants. Income from government and other grants is recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

(e) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

(f) Support costs allocation

Support costs are those that assist the work of the Charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the Charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

The analysis of these costs is included in note 6.

(g) Investments

Investments in subsidiaries are measured at cost less impairment.

(h) Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(i) Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

17

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 OCTOBER 2023

1 Summary of significant accounting policies (continued)

(j) Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

(k) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(l) Going concern

In assessing the company’s ability to continue as a going concern, the directors are fully aware of their responsibilities with regard to maintaining a sufficient level of funds within the charity and the need to carefully manage cash flows. They have considered current cash availability and prepared high level cash flow forecasts that cover a period of 12 months from the date of sign off of these statements.

In the opinion of the directors, this information provides assurance that the company has sufficient available reserves and cash to continue to meet its liabilities as they fall due, even at existing levels of revenue – which are, in the opinion of the directors, a reasonable approximation of ‘worst case’.

On this basis, and after consideration of all other factors, the directors continue to adopt the going concern basis in preparing the financial statements.

(m) Financial instruments

The Group only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of financing transactions that do not qualify as concessionary loans, which are subsequently measured at amortised cost using the effective interest method.

2 Income from donations and legacies

Arts Council England - Cultural Recovery Fund
Harrogate Borough Council – Grants
Harrogate Borough Council - Carnival
Harrogate Borough Council - Light & Fire
Future 50 (including gift aid)
NYCC Councillor grants
Friends Subscriptions and Events
Other donations and legacies
UK Government Small Business Support Grant		 2023
£
-
24,000
100,000
-
40,000
-
49,517
16,192
-
229,709		 2022
£
96,000
24,000
100,000
25,000
60,313
9,000
46,404
13,326
2,667
376,710

Income from donations and legacies was £229,709 (2022: £376,710) of which £100,000 (2022: £125,000) was attributable to restricted, £40,000 (2022: £60,313) was attributable to unrestricted designated funds and £89,709 (2022: £191,397) was attributable to unrestricted funds.

18

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 OCTOBER 2023

3 Income from charitable activities

Ticket and programme sales
Income from commercial trading operation		 2023
£
360,770
504,566
865,336		 2022
£
400,605
440,373
840,978

Income from charitable activities was £865,336 (2022: £840,978) of which £120 (2022: £380) was attributable to unrestricted designated funds and £865,216 (2022: £840,598) was attributable to unrestricted funds.

4 Income from other trading activities

Income from commercial trading operation
Other trading		 2023
£
7,606
14,613
22,219		 2022
£
3,512
10,925
14,437

Income from other trading was £22,219 (2022: £14,437) of which £160 (2022: £227) was attributable to unrestricted designated funds and £22,059 (2022: £14,210) was attributable to unrestricted funds.

5 Income from investments

Interest – deposits
Interest - Future 50		 2023
£
5,943
6,031
11,974		 2022
£
298
380
678

Income from investments was £11,974 (2022: £678) of which £5,943 (2022: £298) was attributable to unrestricted funds and £6,031 (2022: £380) was attributable to unrestricted designated funds.

6 Analysis of expenditure on charitable activities

Direct costs
Support costs
Staff costs
Other support costs
Governance costs		 Festivals
and Events
Education
Total
2023
Total
2022
£
£
£
£
941,731
-
941,731
965,796
64,936
-
64,936
53,763
35,041
-
35,041
48,694
10,547
-
10,547
9,000
1,052,255
-
1,052,255
1,077,253

£100,000 (2022: £125,000) of the above costs were attributable to restricted funds. £952,255 (2022: £952,253) of the above costs were attributable to unrestricted funds.

19

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 OCTOBER 2023

7 Trading subsidiary

Harrogate Festival Development Ltd (Company number 02593892) is a wholly owned subsidiary incorporated in England and Wales. Its principal activity is that of providing advertising services. Its profit is gift aided to the Charity.

Harrogate Festival Development Ltd

Summary Profit and Loss Account

Turnover
Cost of sales
Gross profit
Administrative expenses
Profit on ordinary activities before taxation
Tax on profit on ordinary activities
Profit for the year
Turnover is disclosed as:
Turnover as above
Less other trading income
Income from charitable activities
Resources expended disclosed as:
Cost of sales
Trading subsidiary costs
The assets and liabilities of the subsidiary were:
Current assets
Current liabilities
Total net assets
Called up share capital
Profit and loss account
Shareholders’ funds		 2023
£
519,179
(130,769)
388,410
-
388,410
-
388,410
517,226
(14,613)
502,613
(130,769)
338,410
18,079
(18,077)
2
2
-
2		 2022
£
451,298
(91,632)
359,666
-
359,666
-
359,666
451,298
(10,925)
440,373
91,632
91,632
16,241
(16,239)
2
2
-
2

All of the profit for the years presented above were distributed to Harrogate International Festival Limited by means of Gift Aid.

20

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 OCTOBER 2023

8 Auditor’s remuneration

Auditor’s remuneration
2023 2022
£ £
Fees payable to the Charity’s auditor for the audit of the Charity’s annual 8,000 6,160
accounts

9 Trustees' and key management personnel remuneration and expenses

The trustees neither received nor waived any remuneration during the year (2022: £Nil).

The total amount of employee benefits received by key management personnel is £212,624 (2022: £152,968).

During the year expenses were reimbursed to the trustees amounting to £Nil (2022: £Nil).

10 Staff costs and employee benefits

The average monthly number of employees and full time equivalent (FTE) during the year was as follows:

Charitable activities
Raising funds
The total staff costs and employee benefits were as follows:
Wages and salaries
Social security
Other related staff costs		 2023
Number
8
-
8
2023
£
271,211
24,467
13,295
308,973		 2022
Number
8
-
8
2022
£
254,042
21,052
12,572
287,666

One employee received total employee benefits (excluding employer pension costs) between £70,000 and £80,000.

11 Investments

Investments held by the Charity amounted to £2 being its investment in the subsidiary at cost.

21

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 OCTOBER 2023

12 Debtors

Trade debtors
Other debtors
Prepayments and accrued income		 2023
2022
2023
2022
Group
Group
Charity
Charity
£
£
£
£
54,947
2,778
54,947
2,778
8,143
-
8,143
-
8,209
34,294
8,209
34,294
71,299
37,072
71,299
37,072

13 Creditors: amounts falling due within one year

Trade creditors
Amounts owed to subsidiary
Other tax and social security
Other creditors
Accruals and deferred income		 2023
2022
2023
2022
Group
Group
Charity
Charity
£
£
£
£
99,586
51,986
99,586
51,986
-
-
18,079
16,241
5,718
8,172
5,718
8,172
30,096
47,210
30,096
47,210
142,276
136,750
124,199
120,511
277,676
244,118
277,678
244,120

14 Operating leases

Total future minimum lease payments under non-cancellable operating leases are as follows:

Not later than one year
Later than one and not later than five years
eferred income
Amounts brought forward
Amounts released to income
Incoming resources deferred in the year
Deferred income at 31 October		 2023
£
211
-
211
2023
2022
2023
Group
Group
Charity
£
£
£
51,291
133,236
35,052
(51,291)
(133,236)
(35,052)
79,842
51,291
61,765		 2022
£
1,263
211
1,474
2022
Charity
£
65,635
(65,635)
35,052
79,842
51,291
61,765		 35,052

15 Deferred income

Deferred income relates to grants and ticket income received in advance.

22

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 OCTOBER 2023

16 Fund reconciliation

Unrestricted funds

Unrestricted
Designated - Future 50
Designated – Covid resumption		 Brought
forward
Income
Expenditure
Transfer
Carried
forward
£
£
£
£
£
188,834
982,927
(981,633)
-
190,128
507,922
46,311
(700)
-
553,533
36,263
-
-
-
36,263
733,019
1,029,238
(982,333)
-
779,924

Restricted funds

Restricted- Carnival Brought
forward
Income
Expenditure
Transfer
Carried
forward
£
£
£
£
£
-
100,000
(100,000)
-
-
-
100,000
(100,000)
-
-

Fund descriptions

a) Unrestricted funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

b) Designated funds

Harrogate International Festival Limited relies on the generous support of many funders, donors and sponsors. Each year Harrogate International Festival Limited has to raise over 98% of its income to deliver our year-round programme. As a charity with no core funding it is a priority that these funds are raised annually in order to continue our vibrant programme of work.

In our 50[th] year Harrogate International Festival Limited launched our Future 50 Appeal to address the ongoing challenge of managing ambition against resource, launching an Appeal to raise £1m and create a secure future for the charity. The Appeal is critical to Harrogate International Festival Limited being a sustainable organisation, with the ability to make full use of our artistic and cultural inheritance and create life changing opportunities in the arts. It will ensure that we continue to create access to the arts for the widest range of audiences and participants regardless of background and personal circumstance.

In addition to the Future 50 fund, the Trustees occasionally designate certain donations to fund the future costs of programmes.

c) Restricted funds

Funding was secured for one event; the Carnival in July 2023.

23

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 OCTOBER 2023

17 Analysis of net assets between funds

Fixed assets
Current assets
Cash and current investments
Current liabilities
Total		 Group
Restricted
Unrestricted
£
£
-
-
-
71,299
-
886,301
-
(177,676)
-
779,924		 Charity
Restricted
Unrestricted
£
£
-
2
-
71,299
-
886,301
-
(177,678)
-
779,924

18 Reconciliation of net income/(expenditure) to net cash flow from operating activities

Group
Net income for the year
Interest receivable
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash flow from operating activities
Charity
Net income for the year
Interest receivable
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash flow from operating activities		 2023
£
46,905
(11,974)
(34,227)
33,558
34,262
2023
£
46,905
(11,974)
(34,227)
31,720
32,424		 2022
£
121,612
(678)
1,087
(31,074)
90,947
2022
£
121,612
(678)
1,087
20,288
142,309

19 Related party transactions

Sharon Canavar is a director of Harrogate BID Limited. During the year Harrogate International Festivals received income of £8,900 (2022 - £Nil) from Harrogate BID Limited and made purchases of £524 (2022 - £Nil) from Harrogate BID Limited.

Sharon Canavar is a director of Hubert Swainson Funeral Services Limited. During the year Harrogate International Festivals received a donation of £4,000 (2022 - £2,000) from Hubert Swainson.

24

DocuSign Envelope ID: FA1F46E3-FD68-4BAB-927C-53A8172115F0

HARROGATE INTERNATIONAL FESTIVAL LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 OCTOBER 2023

20 Financial instruments

The carrying amounts of the group’s financial instruments are as follows:

Financial assets
Debt instruments measured at amortised cost:
- Trade debtors (note 12)
Financial liabilities
Measured at amortised cost
- Trade creditors (note 13)
- Other creditors (note 13)
-Accruals (note 13)
The carrying amounts of the charity’s financial instruments are as follows:
Financial assets
Debt instruments measured at amortised cost:
- Trade debtors (note 12)
- Amounts owed from group undertakings (note 12)
Financial liabilities
Measured at amortised cost
- Trade creditors (note 13)
-Amounts owed to group undertakings (note 13)
- Other creditors (note 13)
-Accruals (note 13)		 2023
£
54,947
54,947
99,586
30,096
76,111
205,793
2023
£
54,947
-
54,947
99,586
30,096
18,079
76,111
223,872		 2022
£
2,778
2,778
51,986
47,210
87,431
186,627
2022
£
2,778
-
2,778
51,986
47,210
16,241
87,431
202,868

25