ROYALTY THEATRE SUNDERLAND (Charity Number 258246)
ANNUAL STATEMENT OF ACCOUNTS
YEAR ENDED 31 MARCH 2022
ROYALTY THEATRE SUNDERLAND
ANNUAL STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
| 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 – 14 |
| The following page does not form part of the | |
| statutory accounts | |
| Bar profit and loss account | 15 |
,
ROYALTY THEATRE SUNDERLAND
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022
______________ Reference and Administration Details
Patron : D. Parfitt BAFTA and Oscar Winning Film Producer
Trustees : P. Reynolds J. Elphinstone (resigned 23/07/2021) M. Waine C. Kilvington
Chair:
M. Fletcher (died 08/06/2022 – Andrew Barella acting as chair until AGM on 22/07/2022)
Artistic Director : H. Bowie 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 2022
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, Vice Chairman, Secretary, Treasurer, Artistic Director, three Trustees, and seven 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.
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:
-
Select suitable accounting policies and apply them consistently;
-
Make judgements and estimates that are reasonable and prudent;
-
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
-
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 2022
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, the theatre remained closed until August 2021 when we held a four-night musical extravaganza which raised a significant amount of revenue by way of tickets and bar sales.
We have had an influx of new acting talent which is always welcome, and we look forward to seeing them in future plays. We would always like more members to join to help backstage with set building, lighting and front of house, as without these people the show would not go on.
Audiences for the music nights and Pantomime were excellent, however the audiences for the main shows have been low. We know people are more reluctant to venture out for entertainment following Covid, however we do provide a safe environment and welcome everyone to the theatre. We hope that next year we will see more people returning, we have missed you and we need you.
Our next season starting on September 2022 promises to be varied and enjoyable and we look forward to seeing everyone again.
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 2022 show a profit on unrestricted reserves of £33,750 (2021: Loss £9,425. Income received on restricted funds related to the funding from SUEZ regarding the refurbishment of the kitchen.
Due to Covid-19 under Government guidelines, the theatre remained closed until August 2021. Any membership fee previously paid was held over again for the season September 2021 to June 2022.
Sunderland City Council paid us £15,934 over the financial year in the form of Covid grants. We also received loss of earnings from Hiscox insurance (due to a High Court ruling) amounting to £23,905. These two sums have carried us through this financial year together with a successful Pantomime and Music nights which provided us with approximately £23,000 profit overall.
The last quarter of the year saw the start of the increase in gas prices so we are fully aware that heating costs will rise significantly in the coming year.
The bank reserves at the end of March 2022 were £133,952 (2021: £101,515) and total reserves to carry forward were £322,755 (2021: £270,215). The Royalty Theatre reserves policy is well met with the reserves.
Page 3
ROYALTY THEATRE SUNDERLAND
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022
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.
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 2022.
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:
-
accounting records were not kept in respect of the charity as required by section 130 of the Act; or
-
the financial statements do not accord with those records; or
-
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.
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 2022
| Unrestricted Restricted Notes Funds Funds £ £ INCOME Donations, legacies and similar incoming resources 2 3,203 19,997 Income from charitable activities Theatre receipts 4 27,865 - Bar sales 14,043 - Other income 5 41,012 - Income from investments 3 11 - _ _ TOTAL INCOME 86,134 19,997 EXPENDITURE Expenditure on charitable activities Theatre running costs 6 40,718 - Cost of running bar 7 9,738 - Other expenditure 8 1,928 - Expenditure on raising funds 9 - - Kitchen Refurbishment 10 - 1,207 _ __ TOTAL EXPENDITURE 52,384 1,207 Net income/(expenditure) 33,750 18,790 Transfer between funds 19,997 (19,997) _ _ Net movement in funds 53,747 (1,207) Funds brought forward at 1 April 2021 209,021 61,194 _ ____ FUNDS CARRIED FORWARD AT 31 MARCH 2022 262,768 59,987 |
Total Funds 2022 £ 23,200 27,865 14,043 41,012 11 _ 106,131 40,718 9,738 1,928 - 1,207 _ 53,591 52,540 - _ 52,540 270,215 _ 322,755 |
Total Funds 2021 £ 59,200 1,230 164 22,400 22 _ 83,016 28,277 803 1,661 2,500 - _ 33,241 49,775 - _ 49,775 220,440 _ 270,215 |
|---|---|---|
The notes set out on pages 8 to 14 form part of these accounts
Page 6
ROYALTY THEATRE SUNDERLAND
BALANCE SHEET AT 31 MARCH 2022
| _________ Notes FIXED ASSETS Tangible assets 14 CURRENT ASSETS Stock Debtors and prepayments 15 Cash at bank 16 Cash in hand 17 CURRENT LIABILITIES: amounts falling due within one year Creditors and accruals 18 NET CURRENT ASSETS TOTAL ASSETS FUNDS 19 Restricted Unrestricted - designated - general |
________ 2022 £ £ 184,532 949 6,420 133,952 341 141,662 3,439 138,223 322,755 59,987 184,532 78,236 262,768 322,755 |
___ 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 |
|---|---|---|
The accounts were approved by the Trustees on and signed on their behalf by:
…………………………………………….. A. Barella
……………………………………………..
M. Waine
Vice Chair Secretary Treasurer
……………………………………………..
C. R. J. Chapman
The notes set out on pages 8 to 14 form part of these accounts
Page 7
ROYALTY THEATRE SUNDERLAND
NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
1. ACCOUNTING POLICIES
Basis of Preparation
These accounts have been prepared under the historical cost convention and in accordance with:
-
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)
-
ii) the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)
-
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 accrual’s 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 2022
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 due to being closed for 4 months of the financial year, however from August 2021 onwards the charity was able to operate as normal.. The charity has received funding from Sunderland Council throughout the first portion of the year to contribute towards general expenditure and upkeep of the premises.
2. DONATIONS, LEGACIES AND SIMILAR INCOMING RESOURCES
3.
4.
| Restricted | Unrestricted | Unrestricted | |
|---|---|---|---|
| Funds | Funds | ||
| 2022 | 2022 | 2021 | |
| £ | £ | £ | |
| Donations | - | 536 | 59,200 |
| SUEZ Kitchen Refurbishment Grant | 19,997 | 2,667 | - |
| ______ | ______ | _ | |
| 19,997 | 3,203 | 59,200 | |
| Unrestricted | Unrestricted | ||
| Funds | Funds | ||
| INVESTMENT INCOME | 2022 | 2021 | |
| £ | £ | ||
| Bank interest (gross) | 11 | 22 | |
| Unrestricted | Unrestricted | ||
| Funds | Funds | ||
| THEATRE RECEIPTS | 2022 | 2021 | |
| £ | £ | ||
| Membership subscriptions | 355 | - | |
| Ticket sales (net of commission) | 25,710 | 1,230 | |
| Hire of main theatre | 1,800 | - | |
| 27,865 | 1,230 |
Page 9
ROYALTY THEATRE SUNDERLAND
NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| Funds | Funds | ||
| 5. | OTHER INCOME | 2022 | 2021 |
| £ | £ | ||
| Sunderland County Council- Covid Support | 15,934 | 22,400 | |
| Hiscox Insurance Income | 23,905 | - | |
| Net income from sale of sweets | |||
| Coffees, ice creams and raffle tickets etc | 1,173 | - | |
| ____ | _ | ||
| 41,012 | 22,400 | ||
| 6. | THEATRE RUNNING COSTS | 2022 | 2021 |
| £ | £ | ||
| Production costs | 1,389 | 127 | |
| Royalties | 2,650 | 69 | |
| Publicity (net of grants) | 1,402 | 102 | |
| Wages and cleaning | 9,846 | 9,480 | |
| Repairs and renewals | 1,364 | 552 | |
| Theatre Canopy Repair (net of insurance) | 158 | - | |
| Insurance | 3,980 | 4,349 | |
| Printing, postage and stationery | 86 | 139 | |
| Rates and council tax | 437 | 232 | |
| Heat, light and water | 6,870 | 4,000 | |
| Telephone | 457 | 356 | |
| Depreciation | 9,627 | 7,191 | |
| LTG conference costs | 88 | - | |
| Bank charges | 330 | 94 | |
| Sum up charges | 160 | - | |
| Website | 694 | 160 | |
| Scripts net of sales | 612 | - | |
| Donations | 216 | - | |
| Irrecoverable VAT | - | 264 | |
| Maintenance and tech consumables | - | 780 | |
| TV licence and software | 289 | 307 | |
| Worldpay charges | 63 | 75 | |
| 40,718 | 28,277 |
Theatre running costs were £40,718 (2021: £28,277) of which £40,718 was unrestricted (2021: £28,277) and £nil was restricted (2021: £nil).
| £nil was restricted (2021: £nil). | |||
|---|---|---|---|
| Unrestricted | Unrestricted | ||
| Funds | Funds | ||
| 7. | COSTS OF RUNNING BAR | 2022 | 2021 |
| £ | £ | ||
| Cost of bar sales | 9,571 | 216 | |
| Expenses | 34 | - | |
| Depreciation of fixtures and fittings | 133 | 115 | |
| Covid – write off of out of date stock | - | 472 | |
| 9,738 | 803 |
Page 10
ROYALTY THEATRE SUNDERLAND
NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| Funds | Funds | ||
| 8. | OTHER EXPENDITURE | 2022 | 2021 |
| £ | £ | ||
| Subscriptions and licences | 440 | 574 | |
| Sundries | 149 | 3 | |
| Professional fees | 1,300 | 1,084 | |
| AGM/Christmas refreshments | 39 | - | |
| 1,928 | 1,661 | ||
| Unrestricted | Unrestricted | ||
| Funds | Funds | ||
| 9. | EXPENDITURE ON RAISING FUNDS | 2022 | 2021 |
| £ | £ | ||
| Fundraising costs | - | 2,500 | |
| 10. | KITCHEN REFURBISHMENT | 2022 | 2021 |
| £ | £ | ||
| Kitchen Refurbishment | 1,207 | - |
11. 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 (2021: £nil).
12. TRUSTEES
No Trustee received or is due to receive any remuneration or reimbursement of expenses directly or indirectly from the charity funds.
13. 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.
Page 11
ROYALTY THEATRE SUNDERLAND
NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
| 14. TANGIBLE FIXED ASSETS Freehold Theatre New Bar £ £ Cost At 1 April 2021 193,434 7,784 Additions - - Disposals - - At 31 March 2022 193,434 7,784 Depreciation At 1 April 2021 45,005 7,783 Charge for year 3,869 - Disposals - __ - At 31 March 2022 48,874 7,783 Net Book Value At 31 March 2022 144,560 1 At 31 March 2021 148,429 1 15. DEBTORS AND PREPAYMENTS Other debtors VAT Prepayments 16. CASH AT BANK Royal Bank of Scotland plc 17. CASH IN HAND Theatre float Bar Entertainment committee 18. CREDITORS: Amounts falling due within one year Other creditors and accruals VAT |
Technical Theatre Equipment £ £ 89,506 10,446 28,394 1,792 (4,517) - 113,383 12,238 80,605 4,590 4,544 1,214 (4,517) - 80,632 5,804 32,751 6,434 8,901 5,856 |
Bar £ 2,638 182 - 2,820 1,901 133 - 2,034 786 737 2022 £ - 1,408 5,012 6,420 2022 £ 133,952 2022 £ 100 58 183 341 2022 £ 3,236 203 _ 3,439 |
Total £ 303,808 30,368 (4,517) 329,659 139,884 9,760 (4,517) 145,127 184,532 163,924 2021 £ - - 5,478 5,478 2021 £ 101,515 2021 £ - 110 183 293 2021 £ 1,176 348 _ 1,524 |
Total £ 303,808 30,368 (4,517) |
|---|---|---|---|---|
329,659 |
||||
139,884 9,760 (4,517) |
||||
145,127 |
||||
184,532 |
||||
163,924 |
||||
Page 12
ROYALTY THEATRE SUNDERLAND
NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
| 19. FUNDS @ 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 01.04.21 163,924 45,097 209,021 61,194 270,215 B/fwd 01.04.20 170,550 47,896 218,446 1,994 220,440 |
Income Expenditure Transfers @ - (9,760) 30,368 86,134 (42,624) (10,371) 86,134 (52,384) 19,997 19,997 (1,207) (19,997) 106,131 (53,591) - Income Expenditure Transfers @ - (7,306) 680 23,816 (25,935) (680) 23,816 (33,241) - 59,200 - - 83,016 (33,241) - |
Balance 31.03.22 184,532 78,236 |
|
|---|---|---|---|---|
262,768 |
||||
59,987 |
||||
322,755 |
||||
Balance 31.03.21 163,924 45,097 |
||||
209,021 |
||||
61,194 |
||||
270,215 |
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 and grants received from fundraising undertaken specifically for refurbishment plans.
22. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Restricted Unrestricted General Designated £ £ £ Fixed assets - - 184,532 Net current assets 59,987 78,236 - _ _ ____ 59,987 78,236 184,532 |
Total £ 184,532 138,223 _ 322,755 |
|---|---|
Page 13
ROYALTY THEATRE SUNDERLAND
NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
22. ANALYSIS OF NET ASSETS BETWEEN FUNDS (continued)
ANALYSIS OF NET ASSETS BETWEEN FUNDS- prior year
| 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 |
|---|---|
Page 14
ROYALTY THEATRE SUNDERLAND
BAR PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022
| SALES DEDUCT: COST OF SALES Stock at 1 April 2021 Add:Purchases Less:Stock at 31 March 2022 GROSS PROFIT / (LOSS) DEDUCT: EXPENSES Cleaning & stationery DEDUCT: DEPRECIATION Fixtures and fittings NET PROFIT / (LOSS) |
2022 £ 358 9,821 10,179 608 (31.8%) |
2021 £ £ 14,043 830 216 1,046 9,571 358 4,472 (-320%) 34 4,438 133 ______ 4,305 |
£ 164 688 (524) - (524) 115 ______ (639) |
|---|---|---|---|
Page 15