ROYALTY THEATRE SUNDERLAND (Charity Number 258246)
ANNUAL STATEMENT OF ACCOUNTS
YEAR ENDED 31 MARCH 2021
ROYALTY THEATRE SUNDERLAND
ANNUAL STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021
| Contents | Pages |
|---|---|
| Trustees’ report | 1 – 4 |
| Independent examiner’s report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the annual statement of accounts | 8 – 13 |
| The following page does not form part of the | |
| statutory accounts | |
| Bar profit and loss account | 14 |
,
ROYALTY THEATRE SUNDERLAND
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021
Reference and Administration Details
Patron : D. Parfitt BAFTA and Oscar Winning Film Producer
Trustees : P. Reynolds J. Elphinstone M. Waine C. Kilvington (appointed 08/10/2020)
Chair: M. Fletcher
Artistic Director : L. Breeze (resigned 25/09/2020) H. Bowie (appointed 25/09/2020)
Secretary : M. Waine
Treasurer : C. R. J. Chapman, FCA
Registered Address & Place of Business : 25 The Royalty Sunderland SR2 7PP Bankers : Royal Bank of Scotland plc 1 Redheughs Avenue Edinburgh EH12 9JN
Solicitors : Peter Dunn & Co 20 Athenaeum Street Sunderland SR1 1DH
Independent Examiner : A. M. Henshaw FCCA Torgersens Chartered Accountants Somerford Buildings Norfolk Street Sunderland SR1 1EE
Status :
The Charity is registered with the Charity Commissioners as number 258246.
Page 1
ROYALTY THEATRE SUNDERLAND
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021
Structure, Governance and Management
Constitution :
The Royalty Theatre Sunderland (“the Charity”) is incorporated under a Constitution which sets out the objectives and purposes of the Charity. The accounts comply with current statutory requirements and the requirements of the Constitution. The ultimate responsibility for the management is vested in the Trustees who delegate the management to the Executive Committee.
Trustees :
The Constitution provides for a maximum of four Trustees, such Trustees to be nominated by a resolution of members at an Annual or Special General Meeting of the Charity. Trustees hold office until death, resignation, or removal from office.
Executive Committee :
The Executive Committee, to whom the Trustees delegate the day to day management of the Charity, comprises the Chairman, Secretary, Treasurer, Artistic Director, two Trustees, and nine other members all of whom, with the exception of the Trustees, are elected annually at the Annual General Meeting.
The Executive Committee meets once a month throughout the year to review, monitor and discuss the affairs of the Charity. Sub-Committees deal with certain aspects such as play selection, casting, production, and marketing reporting to the Executive Committee.
The Trustees would like to take this opportunity to thank all the members of the Executive Committee and the Sub Committees for their efforts during the year.
Related Parties :
There are no formal links between the Charity and any other charities or organisations. However, the Charity does donate the tickets for the first night of each main theatre production (except the pantomime) to some 9 or so charities with local representation. Due to shows being cancelled there have been no beneficiaries during the year.
Statements of Trustee’s Responsibilities for the Accounts :
The Charities Act 2011 requires the Trustees to keep proper books of account with respect to the affairs of the Charity, and to prepare statements of account for each accounting period consisting of an income and expenditure account and a balance sheet. The Trustees are also responsible for safeguarding the Charity’s assets, and hence for taking reasonable steps for the prevention and detection of error, fraud and other irregularities.
In preparing the accounts the Trustees are expected to:
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Select suitable accounting policies and apply them consistently;
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Make judgements and estimates that are reasonable and prudent;
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Follow the recommendations of the Charity Commission and of the accounting profession with regard to form and content of the accounts or to disclose and explain any departures therefrom; and
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Prepare the accounts on the going concern basis unless it is inappropriate to assume that the charity will be able to continue to meet its objectives.
Page 2
ROYALTY THEATRE SUNDERLAND
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021
Objectives and Activities
The objectives of the Charity are to promote the art of drama and to develop the public appreciation therein, and towards these purposes, to accept subscriptions, donations, and gifts of all kinds. So as to achieve its objectives the Charity, through its members, performs several amateur drama productions during the year either in the main theatre (capacity 216) or the studio theatre (capacity 60).
Income arises from membership subscriptions, ticket sales, sponsorship, donations, external hires of both the main theatre and the studio theatre, raffles, entertainment and social evenings, sales of coffee, ice creams, sweets and from bar profits.
The Charity continually seeks sponsors for its productions and opportunities for the external hire of both theatres.
Achievement and Performance
Due to COVID-19 we, like everyone else, have been closed for over a year, but thanks to a grant from Suez we are able to have a commercial grade kitchen fitted which will provide a resourceful revenue in the future.
Our hope is to introduce a host of new writing from local writers, as well as plenty of new young and older actors to bring lots of brilliant talent to our theatre.
Unfortunately due to COVID-19 a lot of the charitable trusts have not been meeting so therefore progress in getting our new entrance and frontage has been severely delayed.
Public Benefit Statement
The trustees have had regard to the Charity Commission guidance on their legal duty on public benefit, and are satisfied that the charity delivers public benefit, and due regard is paid to the guidance on public benefit when deciding on what new projects the charity should undertake.
Financial Review
Reserves :
The financial results for the year to 31 March 2021 show a loss on unrestricted reserves of £9,425 (2020: Loss £5,016) and restricted reserves profit of £59,200 (2020: £1,994). Income received on restricted funds related to donations received towards the refurbishment of the theatre.
Due to Covid 19 The Theatre was closed in March 2020 under Government guidelines. Unfortunately The Theatre remained closed and is not due to reopen until August 2021 all being well.
A musical night and pantomime performed on line were one source of income but thankfully Sunderland County Council paid £22,400 over the financial year to support us in the shutdown. They have continued to provide income following the year end with £8,000 restart grant to which we are grateful.
The bank reserves at the end of March 2021 were £101,515 (2020: £45,209) and total reserves to carry forward were £270,215 (2020: £220,440). The Royalty Theatre reserves policy means that we have sufficient funds to cover at least a six to eight month closure however we received £22,400 from Sunderland County Council as Covid support which has kept us going until we can hopefully reopen in August 2021 and look forward to seeing our theatre busy again.
Page 3
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021
ROYALTY THEATRE SUNDERLAND
Risk Assessment:
The Trustees assess the major risks to which the Charity is exposed on a continual basis and are satisfied that the administrative, investment and financial procedures which are in place minimise the risk of any loss to the Charity.
Plans for future periods
The theatre bar will be open for our Friday social evenings from 21[st] May 2021 strictly following government guidelines to hopefully get members returning with confidence to support the theatre.
We will again open in August with our annual show of A Night at the Musicals followed in September with the first main stage production of the season Gaslight by Patrick Hamilton.
Signed on behalf of the Trustees
M. Waine Secretary
Date:
Page 4
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF ROYALTY THEATRE SUNDERLAND
I report to the trustees on my examination of the financial statements of The Royalty Theatre Sunderland ('the Charity') for the year ended 31 March 2021.
Responsibilities and basis of report
As the trustees of the charity, you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the financial statements do not accord with those records; or
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the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.
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I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
A. M. Henshaw FCCA Torgersens Chartered Accountants Somerford Buildings Norfolk Street Sunderland SR1 1EE
Date:
Page 5
ROYALTY THEATRE SUNDERLAND
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021
| Unrestricted Restricted Notes Funds Funds £ £ INCOME Donations, legacies and similar incoming resources 2 - 59,200 Income from charitable activities Theatre receipts 4 1,230 - Bar sales 164 - Other income 5 22,400 - Income from investments 3 22 - _ _ TOTAL INCOME 23,816 59,200 EXPENDITURE Expenditure on charitable activities Theatre running costs 6 28,277 - Cost of running bar 7 803 - Other expenditure 8 1,661 - Expenditure on raising funds 9 2,500 - _ __ TOTAL EXPENDITURE 33,241 - Net income/(expenditure) (9,425) 59,200 Funds brought forward at 1 April 2020 218,446 1,994 _ ____ FUNDS CARRIED FORWARD AT 31 MARCH 2021 209,021 61,194 |
Total Funds 2021 £ 59,200 1,230 164 22,400 22 _ 83,016 28,277 803 1,661 2,500 _ 33,241 49,775 220,440 _ 270,215 |
Total Funds 2020 £ 2,094 35,750 22,072 1,429 90 _ 61,435 46,467 13,116 845 4,029 _ 64,457 (3,022) 223,462 _ 220,440 |
|---|---|---|
The notes set out on pages 8 to 13 form part of these accounts
Page 6
ROYALTY THEATRE SUNDERLAND
BALANCE SHEET AT 31 MARCH 2021
| _________ Notes FIXED ASSETS Tangible assets 13 CURRENT ASSETS Stock Debtors and prepayments 14 Cash at bank 15 Cash in hand 16 CURRENT LIABILITIES: amounts falling due within one year Creditors and accruals 17 NET CURRENT ASSETS NET ASSETS FUNDS 18 Restricted Unrestricted - designated - general The accounts were approved by the Trustees on and signed on their behalf by: …………………………………………….. Chair M. Fletcher …………………………………………….. Secretary M. Waine |
________ 2021 £ £ 163,924 529 5,478 101,515 293 107,815 1,524 106,291 270,215 61,194 163,924 45,097 209,021 270,215 |
_ |
|---|---|---|
Treasurer
…………………………………………….. C. R. J. Chapman
The notes set out on pages 8 to 13 form part of these accounts
Page 7
ROYALTY THEATRE SUNDERLAND
NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021
1. ACCOUNTING POLICIES
Basis of Preparation
These accounts have been prepared under the historical cost convention and in accordance with:
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i) the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2015 (SORP 2015)
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ii) the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)
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iii) the Charities Act 2011.
The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these accounts are rounded to the nearest £.
The principal accounting policies adopted are:
a)
Accounting for income
Cash donations, legacies, income from productions in terms of ticket sales, bar income, membership subscriptions and other income are treated as income in the year in which they are received. Income from the sale of coffees, ice creams, sweets, raffles and theatre and studio hire are included in the statement of financial activities, net of directly related expenditure, in the year to which they relate.
Income from Investments
Bank interest is included in the Statement of Financial Activities on the accruals basis.
b)
Expenditure
All revenue expenditure is accounted for when incurred. Expenditure relating to specialist activities or projects is shown under Charitable Activities. Expenditure relating to the general running of the charity and to adhere to laws and regulations is shown under other costs.
c)
Fixed assets
Fixed assets are stated at cost less depreciation.
Depreciation is provided on the tangible fixed assets, at the following rates, based on the estimated useful life of these fixed assets and their anticipated residual value:
| Freehold theatre | 2% | straight line |
|---|---|---|
| New bar | 10% | straight line |
| Bar fixtures and fittings | 10% | straight line |
| Theatre fixtures and fittings | 10% | straight line |
| Technical fixtures | 10% | straight line |
d) Bar stocks
Bar stock is valued at the lower of cost and net realisable value. Cost is determined on a first-in, first-out basis. Net realisable value is based on estimated selling price, less any further cost of realisation.
Page 8
ROYALTY THEATRE SUNDERLAND
NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021
1. ACCOUNTING POLICIES (continued)
- e) Funds
Funds held by the charity are used for:
Unrestricted funds comprise those funds which the trustees are free to use in accordance with the charitable objectives.
Designated funds are unrestricted funds earmarked by the trustees for particular purposes.
Restricted funds are funds which are to be used for specific purposes as laid down by the donor or by specific terms of the appeal under which the funds are raised. Expenditure which meets this criteria is charged to the fund, with a fair allocation of management and support costs.
f) Going concern
The trustees consider that there are no material uncertainties over the charities ability to continue as a going concern. The Covid-19 pandemic has had an impact on the charities income from ticket sales and hire of the main theatre and studio due to being closed for the financial year. The charity has received funding from Sunderland Council throughout the year to contribute towards general expenditure and upkeep of the premises. The trustees believe this will help keep the theatre ticking over until they able to re-open, which they are hopeful will be in August 2021. Where licenses had been paid for upcoming plays which had to be rescheduled due to Covid-19, these licences have been carried over or refunded and the plays carried over, plus additional, are planned to go ahead when able to do so.
2. SPONSORSHIP AND DONATIONS
3.
4.
| SPONSORSHIP AND DONATIONS | |||
|---|---|---|---|
| Restricted | Unrestricted | Unrestricted | |
| Funds | Funds | ||
| 2021 | 2021 | 2020 | |
| £ | £ | £ | |
| Sponsorship | - | - | 1,994 |
| Donations and legacies | 59,200 | - | 100 |
| _ | ______ | _ | |
| 59,200 | - | 2,094 | |
| Unrestricted | Unrestricted | ||
| Funds | Funds | ||
| INVESTMENT INCOME | 2021 | 2020 | |
| £ | £ | ||
| Bank interest (gross) | 22 | 90 | |
| Unrestricted | Unrestricted | ||
| Funds | Funds | ||
| THEATRE RECEIPTS | 2021 | 2020 | |
| £ | £ | ||
| Membership subscriptions | - | 4,979 | |
| Ticket sales (net of commission) | 1,230 | 27,667 | |
| Hire of main theatre | - | 2,200 | |
| Hire of studio theatre | - | 720 | |
| Entertainment and social committees | - | 184 | |
| 1,230 | 35,750 |
Page 9
ROYALTY THEATRE SUNDERLAND
NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| Funds | Funds | ||
| 5. | OTHER INCOME | 2021 | 2020 |
| £ | £ | ||
| Sunderland County Council- Covid Support | 22,400 | - | |
| Net income from sale of sweets | |||
| Coffees, ice creams and raffle tickets etc. | - | 1,429 | |
| 22,400 | 1,429 | ||
| 6. | THEATRE RUNNING COSTS | 2021 | 2020 |
| £ | £ | ||
| Production costs | 127 | 3,229 | |
| Royalties | 69 | 2,445 | |
| Publicity (net of grants) | 102 | 2,396 | |
| Wages and cleaning | 9,480 | 7,149 | |
| Repairs and renewals | 552 | 2,380 | |
| Insurance | 4,349 | 1,354 | |
| Printing, postage and stationery | 139 | 1,604 | |
| Rates and council tax | 232 | 2,004 | |
| Heat, light and water | 4,000 | 7,578 | |
| Telephone | 356 | 578 | |
| Depreciation | 7,191 | 7,472 | |
| LTG conference costs | - | 82 | |
| Bank charges | 94 | 416 | |
| Flowers for bar/foyer | - | 179 | |
| Website | 160 | 1,081 | |
| Scripts net of sales | - | 545 | |
| Donation to Macmillan | - | 1,631 | |
| Loss on disposal of asset | - | 367 | |
| Irrecoverable VAT | 264 | 1,736 | |
| Maintenance and tech consumables | 780 | 685 | |
| TV licence and software | 307 | 155 | |
| Programmes net of sales | - | 358 | |
| Worldpay charges | 75 | 148 | |
| Sponsorship | - | - | |
| Training for first aid | - | 320 | |
| Bad debt written off | - | 575 | |
| 28,277 | 46,467 |
| Theatre running costs were £28,277 (2020: £46,467) of which £28,277 was unrestricted (2020: | Theatre running costs were £28,277 (2020: £46,467) of which £28,277 was unrestricted (2020: | £46,467) and | |
|---|---|---|---|
| £nil was restricted (2020: £nil). | |||
| Unrestricted | Unrestricted |
||
| Funds | Funds |
||
| 7. | COSTS OF RUNNING BAR | 2021 | 2020 |
| £ | £ |
||
| Cost of bar sales | 216 | 12,559 |
|
| Expenses | - | 242 |
|
| Depreciation of fixtures and fittings | 115 | 115 |
|
| Covid – write off of out of date stock | 472 | 200 |
|
| 803 | 13,116 |
Page 10
ROYALTY THEATRE SUNDERLAND
NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| Funds | Funds | ||
| 8. | OTHER EXPENDITURE | 2021 | 2020 |
| £ | £ | ||
| Subscriptions and licences | 574 | 738 | |
| Sundries | 3 | 56 | |
| Professional fees | 1,084 | 35 | |
| AGM/Christmas refreshments | - | 16 | |
| 1,661 | 845 | ||
| Unrestricted | Unrestricted | ||
| Funds | Funds | ||
| 9. | EXPENDITURE ON RAISING FUNDS | 2021 | 2020 |
| £ | £ | ||
| Fundraising costs | 2,500 | 4,029 |
10. EMPLOYEES
During the current and preceding year The Royalty Theatre employed no key management personnel. During the current and preceding year the Royalty Theatre employed one member of staff. The employee has had no employee benefits in excess of £60,000 (2020: £nil).
11. TRUSTEES
No Trustee received or is due to receive any remuneration or reimbursement of expenses directly or indirectly from the charity funds.
12. TAXATION
The charity considers its activities to be exempt from corporation tax by virtue of Section 505 of the Income and Corporation Taxes Act 1988.
13. TANGIBLE FIXED ASSETS
| TANGIBLE FIXED ASSETS | |||
|---|---|---|---|
| Freehold Theatre New Bar £ £ Cost At 1 April 2020 193,434 7,784 Additions - - Disposals - - At 31 March 2021 193,434 7,784 Depreciation At 1 April 2020 41,136 7,783 Charge for year 3,869 - Disposals - __ - At 31 March 2021 45,005 7,783 Net Book Value At 31 March 2021 148,429 1 At 31 March 2020 152,298 1 |
Technical Theatre Equipment £ £ 88,826 10,446 680 - - - 89,506 10,446 78,322 3,551 2,283 1,039 - - 80,605 4,590 8,901 5,856 10,504 6,895 |
Bar £ 2,638 - - 2,638 1,786 115 - 1,901 737 852 |
Total £ 303,128 680 - 303,808 |
132,578 7,306 - |
|||
| 139,884 | |||
163,924 |
|||
170,550 |
Page 11
ROYALTY THEATRE SUNDERLAND
NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021
| 14. DEBTORS AND PREPAYMENTS Other debtors VAT Prepayments 15. CASH AT BANK Royal Bank of Scotland plc 16. CASH IN HAND Theatre float Bar Entertainment committee 17. CREDITORS AND ACCRUALS Other creditors and accruals VAT 18. FUNDS B/fwd @ 01.04.20 Unrestricted Funds Designated Capital account 170,550 General fund 47,896 Total Unrestricted Funds 218,446 Restricted Funds Refurbishment fund 1,994 Total Funds 220,440 |
Income Expenditure - (7,306) 23,816 (25,935) 23,816 (33,241) 59,200 - 83,016 (33,241) |
2021 £ - - 5,478 5,478 2021 £ 101,515 2021 £ - 110 183 293 2021 £ 1,176 348 1,524 Transfers @ 680 (680) - - - |
2020 £ 588 76 4,931 5,595 2020 £ 45,209 2020 £ 600 22 183 805 2020 £ 2,720 - 2,720 Balance 31.03.21 163,924 45,097 |
|---|---|---|---|
209,021 |
|||
61,194 |
|||
270,215 |
Page 12
ROYALTY THEATRE SUNDERLAND
NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021
18. FUNDS (continued)
| FUNDS – prior year @ Unrestricted Funds Designated Capital account General fund Total Unrestricted Funds Restricted Funds Refurbishment fund Total Funds |
FUNDS – prior year @ Unrestricted Funds Designated Capital account General fund Total Unrestricted Funds Restricted Funds Refurbishment fund Total Funds |
B/fwd 01.04.19 167,216 56,246 223,462 - 223,462 |
Income Expenditure Transfers @ - (7,587) 10,921 59,441 (56,870) (10,921) 59,441 (64,457) - 1,994 - - 61,435 (64,457) - |
Balance 31.03.20 170,550 47,896 218,446 1,994 220,440 |
|---|---|---|---|---|
The capital account represents the net book value of tangible fixed assets held at the balance sheet date. Transfers represent the movement in assets during the year.
The restricted refurbishment fund represents donations received from fundraising undertaken specifically for refurbishment plans.
18. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Restricted Unrestricted General Designated £ £ £ Fixed assets - - 163,924 Net current assets 61,194 45,097 - _ _ _____ 61,194 45,097 163,924 |
Total £ 163,924 106,291 _ 270,215 |
|---|---|
ANALYSIS OF NET ASSETS BETWEEN FUNDS- prior year
| Restricted £ Fixed assets - Net current assets 1,994 _____ 1994 |
Unrestricted General Designated £ £ - 170,550 47,896 - _ _ 47,896 170,550 |
Total £ 170,550 49,890 _ 220,440 |
|---|---|---|
Page 13
ROYALTY THEATRE SUNDERLAND
BAR PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021
| 2021 £ SALES DEDUCT: COST OF SALES Stock at 1 April 2020 830 Add:Purchases 216 1,046 Less:Stock at 31 March 2021 358 GROSS PROFIT / (LOSS) (-320%) DEDUCT: EXPENSES Glasses - Cleaning & stationery - Plastic cups, members coffee, ice & straws - Wastages - DEDUCT: DEPRECIATION Fixtures and fittings _ NET PROFIT / (LOSS) |
2021 £ SALES DEDUCT: COST OF SALES Stock at 1 April 2020 830 Add:Purchases 216 1,046 Less:Stock at 31 March 2021 358 GROSS PROFIT / (LOSS) (-320%) DEDUCT: EXPENSES Glasses - Cleaning & stationery - Plastic cups, members coffee, ice & straws - Wastages - DEDUCT: DEPRECIATION Fixtures and fittings _ NET PROFIT / (LOSS) |
2020 £ £ 164 1,072 12,317 13,389 688 830 (524) (43.1%) 25 130 87 - 200 (524) 115 _____ _ (639) |
£ 22,072 12,559 9,513 442 9,071 115 ______ 8,956 |
|---|---|---|---|
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