2021-03-31-accounts

Chipping Norton Theatre Limited (The)

Registered Company Number: 1179918 Registered Charity Number: 268154

Accounts

For the year ended 31st March 2021

Wenn Townsend

Chartered Accountants

Oxford

Chipping Norton Theatre Limited (The)

Contents

	Page
Legal and Administrative Information	1
Report of the Council of Management	2 - 6
Report of the Auditors	7 - 9
Statement of Financial Activities	10
Balance Sheet	11
Statement of Cash Flows	12
Notes	13 - 21

Chipping Norton Theatre Limited (The)

Legal and Administrative Information

Company Number:	1179918 (England and Wales)
Registered Charity Number:	268154
Trustees:	A Brander
	R Greaves (Chair)
	K Grive (known as F Grive)
	C Peake
	S Sheppard
	T Sumner
	P Wilson
	L Whordley-Hughes
Secretary:	J Robinson
Registered Office:	2 Spring Street
	Chipping Norton
	Oxfordshire
	OX7 5NL
Accountants:	Wenn Townsend
	Chartered Accountants
	30 St Giles
	Oxford
	OX1 3LE
Bankers:	Barclays Bank Plc
	Financial Services Section
	P O Box 11
	Oxford
	OX3 9YD
Theatre Artistic Director:	J Terry
General Manager:	J Robinson

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Chipping Norton Theatre Limited (The)

Report of the Council of Management for the year ended 31st March 2021

Members of the Council of Management present their report with the financial statements of the charitable company for the year ended on 31st March 2021.

The financial statements comply with the current statutory requirements, the Memorandum and Articles of Association and the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

References and Administration Details

Constitution

The Chipping Norton Theatre Ltd is a company limited by guarantee and a registered charity Number 268154, Company Number 1179918 (England and Wales).

Directors and Trustees

The members of the Council of Management, who are directors for the purposes of Company Law and trustees for the purposes of Charity Law, are referred to interchangeably as such.

As set out in the Articles of Association, the Chair of Council is elected by its members. After three years’ service members of Council retire by rotation at annual general meetings and may, if willing to act, be reappointed. The members of the charitable company may by ordinary resolution appoint a person who is willing to act, to be a member of Council, either to fill a vacancy or as an additional member.

The members of Council who served during the year and since the year end were as shown on page 1 and that page also provides the legal and administrative information.

Day to day management, under the direct control of the Council of Management, is delegated to The Theatre’s Artistic Director.

Structure, Governance and Management

The Chipping Norton Theatre Limited was incorporated on 6th August 1974 as a private company, limited by guarantee and not having a share capital, under a Memorandum of Association dated 15th July 1974.

Members of Council must be a member of the charitable company. Prospective members of Council may be invited

The present membership of Council represents a wide range of the necessary knowledge and experience – theatre management, finance, fundraising, legal matters – and continuity of relevant experience is regarded as important, combined with a regular audit of skills.

On appointment, new members of Council are provided with an information pack and a full briefing from the Chair, the Theatre’s Artistic Director and the General Manager. Members of Council are regular attendees at the various events that are put on in The Theatre.

Council meetings are also attended, as observers, by representatives of The Theatre’s regular statutory funding bodies, including local authority bodies.

The Council of Management administers the charity. The Council normally meets quarterly and there are subcommittees covering fundraising, finance and audits which also meeting quarterly. A Director is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Director has delegated authority, within terms of delegation approved by the trustees, for some operational matters to members of the Senior Management Team.

All member of the Council of Management give of their time freely and no trustee received remuneration in the year. Details of directors’ expenses and related party transactions are disclosed in note 11 to the accounts. The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the charity, the levels are benchmarked against pay levels in other provincial theatres of a similar size run on a voluntary basis. The remuneration benchmark is on the lower end of the range paid for similar roles. If recruitment has proven difficult in the recent past a market addition is also paid with the pay maximum no greater than the highest benchmarked salary for a comparable role. Senior staff were paid a total of £104,868.67 (2020: £95,069).

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Chipping Norton Theatre Limited (The)

Report of the Council of Management for the year ended 31st March 2021

Structure, Governance and Management (continued)

The Theatre benefits from the support of over 1,200 Friends and The Chipping Norton Theatre and Friends Trust, two of whose trustees are appointed by Council. They provide significant and invaluable financial support to The Theatre. It is worth noting that without significant additional fundraising in each year, the resources of the Trust will be depleted; The Theatre therefore has an important fundraising function to deliver in the short to medium term.

With regard to risk, insurance cover is in place for the normal risks of operating The Theatre. Beyond this the principal uninsurable risks are:

• the loss of, or significant reduction in total revenue funding from statutory and local authority bodies and from private trusts and individuals;

• short-term adverse trading conditions affecting the locality;

• the building is particularly old and could at any time require significant funds to be spent, of which the Theatre currently does not have enough reserves to cover;

• failure to raise sufficient charitable donations to maintain liquid asset levels.

The occurrence of the first of these risks would necessitate major changes to the ways in which the Theatre operates and would almost certainly lead to a reduction in the range of activities in the medium term. Against the second category of risk, the strategy is to constitute an appropriate general reserve divided between the charitable company itself and the associated Theatre and Friends Trust. The relevance of these strategies is kept under review by the Council.

Objectives, Activities and Public Benefit

The Company is established to promote, maintain, improve, and advance education, particularly by the promotion and production of educational plays and concerts and the encouragement of the Arts. Alongside a live and film programme The Theatre aims to support the community through an extensive Take Part programme of workshops and participatory activities. In doing so it normally welcomes more than 53,000 people each year to around 500 events. The past year has been significantly affected by the COVID pandemic, but The Theatre has continued to provide as many and as varied a programme as possible, but was closed to in person activities for the majority of the year. This has inevitably changed the delivery of work to a huge extent. The Theatre's focus has been on long term survival and re-introducing the most socially impactful aspects of its work as soon as possible. The Trustees have had regard to the Charity Commission’s guidance on public benefit.

The Theatre and the Trustees felt it was vital to keep providing the social benefits and charitable objectives that The Theatre is established to provide despite the uncertain climate it was operating in.

During the year under review, the Theatre set out to:

• provide accessible, popular programming (received and produced)

• offer innovative and challenging work (received and produced)

• provide participatory activities and workshops across all art forms, often in a digital format, but moving back in person as and when safe and legal to do so.

• encompass equality and diversity in all areas

In this it was supported by the following resources and strategies:

• audience development and marketing

• resources - people and places

• continuing development and funding partnerships

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Chipping Norton Theatre Limited (The)

Report of the Council of Management for the year ended 31st March 2021

Objectives, Activities and Public Benefit (continued)

Activities included:

• The Theatre received 8 live performances, and screened 39 films and live streamings along with 9 private hire screenings.

• The annual pantomime was not financially or logistically viable this year, but was replaced by a shorter and smaller Christmas show A Christmas Carol , Starring David Bradley and one musician. It played for 4 weeks leading up to Christmas eve and was conducted in a fully socially distance auditorium.

• A series of outdoor, sell out, socially distanced theatre performances were put on at Asthall Manor called In the Footsteps of the Mitfords.

• The Theatre was funded to record a previously devised piece of theatre called The Contagion Cabaret in collaboration with Oxford University. This was recorded and made available free of charge on You Tube. It has currently been watched more than 1300 times.

• The standard programme of Take Part activities including weekly Youth Theatre groups, Creative Writing, Adult Drama, Dance 50, Youth Musical Theatre, Saturday Drama, were all held digitally and in person when possible. Chipping Norton Singers was at no point legal to run due to restrictions on singing and an online series of workshops and final recording/performance were offered instead.

• A project called Speak as One , was offered in response to the first lockdown, where people at home were invited to write short radio plays about their lockdown experiences. 14 of the best entries were recorded by professional actors as podcasts and played on BBC Radio Oxford.

• With the support of Cottsway Housing, Christmas Window Lantern Packs were created and delivered around Chipping Norton.

• 7 bursaries for Take Part activities were offered during the year to those on low incomes or experiencing hardship

The Theatre would like to thank all of its sponsors and funders that have supported activities throughout the year, and all of the individuals, Friends and Patrons for their ongoing support:

• The Theatre was Sponsored by:

Cleenol Group Ltd (A Christmas Carol - Community Tickets) Kingham Hill School (A Christmas Carol)

Owen Mumford (Owen Mumford Gallery and Cinema Bambino) Postal Advertisers

Wise Investment (The Theatre)

• The Theatre was funded by the following:

The National Lottery through Arts Council England HM Government through the Culture Recovery Fund Chipping Norton Town Council Patrons and Friends of The Theatre Chipping Norton West Oxfordshire District Council

Albion Trust Aird Clabon Charitable Trust Backstage Trust Doris Field Charitable Trust Goyder Family Trust Julia & Hans Rausing Charity Survival Fund Lennox Hannay Charitable Trust Michael Bishop Foundation Michael & Clara Freeman Charitable Trust Mr & Mrs JA Pye’s Charitable Trust

Oak Investment Charity Parker Family Parish Councils (Kingham, Churchill & Sarsden) PF Charitable Trust Schuster Charitable Trust Stella Symonds Charitable Trust Tesco Bags of Help Walter Higgs Charitable Trust Ward Trust

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Chipping Norton Theatre Limited (The)

Report of the Council of Management for the year ended 31st March 2021

Objectives, Activities and Public Benefit (continued)

The Theatre benefits from the invaluable support of around 75 volunteers as theatre ushers and also has volunteers within archiving, fundraising, general admin and costume. The Theatre would be unable to function in its current form without the support of our volunteers and their time and contribution is hugely appreciated.

The Theatre would like to thank the team of permanent and casual staff amounting to 35 individuals and its team of freelance Take Part practitioners; all of whom have work incredibly hard to provide as much activity as possible during the year, focussing on those with the most impact on the community around it.

Fundraising

Members of The Theatre’s fundraising department organise events and carry out fundraising activities in order to generate funds for the charity. The Theatre does not use professional fundraisers or involve commercial participators. There have been no complaints about fundraising activity this year.

All the charity’s marketing activities are undertaken directly to ensure that is not unreasonably persistent or intrusive. Marketing materials contain clear details of how to unsubscribe to future communications and care is taken to limit the level of communications being sent out.

Financial Review

This year The Theatre generated a surplus of £154,964 (2020: deficit of £24,772). There have been a few significant donations and grants received on top of the government support. This support, although not spent this year, will be going into supporting the theatre in the challenging year to come as government support starts to come to a close.

The COVID pandemic beginning in March 2020 played a defining role on the year and The Theatre remained closed for most of the year to any in-person activities. All government support schemes have been used to support the Theatre's finances. In order to protect the staff and finances The Theatre has used the governments Job Retention Scheme and furloughed all but necessary staff until such time that activities could restart. Many customers whose shows have been cancelled have chosen to donate their ticket money to The Theatre to a 'Head Above Water' campaign

The Council of Management has an agreed Reserves Policy in place and as at 31st March 2021 total funds were £1,115,796 including restricted funds of £915,824. The Theatre’s free reserves were £199,972 (2020: £65,707). A successful bid to the Culture Recovery Fund for £144,000 during the financial year has ensured The Theatre's continued stability.

The Chipping Norton Theatre Trust, an independent charity providing grant support to The Theatre, made funding payments of £12,000 to The Theatre. The Friends of The Theatre raised £30,219 (2020: £40,927) in membership income, which has supported the core costs of the theatre and various repairs of the building.

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Chipping Norton Theatre Limited (The)

Report of the Council of Management for the year ended 31st March 2021

Statement of the Council of Management’s responsibilities

The Council of Management are required by law to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the charitable company’s activities for that period. In preparing those financial statements the Council of Management are required to follow best practice and:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The Council of Management are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the charitable company’s assets and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far the Trustees are aware:

• there is no relevant information of where the charitable company’s auditor is unaware; and

• the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of the information.

Auditors

A resolution will be proposed at the Annual General Meeting that Wenn Townsend be re-appointed auditors to The Theatre for the ensuing year.

This report was approved by the Board of Directors and the Council of Management on ……………………… 2021.

………………………………… R Greaves Trustee

2 Spring Street Chipping Norton Oxfordshire OX7 5NL

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Chipping Norton Theatre Limited (The)

Report of the Independent Auditors To The Members of Chipping Norton Theatre Limited (continued)

Opinion

We have audited the financial statements of The Chipping Norton Theatre Limited (the ‘charitable company’) for the year ended 31st March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31st March 2021, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The 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.

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Chipping Norton Theatre Limited (The)

Report of the Independent Auditors To The Members of Chipping Norton Theatre Limited (continued)

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Trustees’ Annual Report (incorporating the Directors’ Report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Directors’ Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the 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 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 5, 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

• Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims;

• Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;

• Reviewing minutes of meetings of those charged with governance;

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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Chipping Norton Theatre Limited (The)

Report of the Independent Auditors To The Members of Chipping Norton Theatre Limited (continued)

Auditor’s responsibilities for the audit of the financial statements (continued)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

…………………………………….

Mr Andrew Rodzynski FCA Senior Statutory Auditor For and on behalf of Wenn Townsend Statutory Auditor Oxford

Date : ……………………….. 2021

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Chipping Norton Theatre Limited (The)

Statement of Financial Activities (including income and expenditure amount) for the year ended 31st March 2021

	Note	Unrestricted	Restricted		Unrestricted	Restricted
		Funds	Funds	2021	Funds	Funds	2020
		£	£	£	£	£	£
Income and endowments
Donations and legacies	4	636,957	80,000	716,957	188,964	13,625	202,589
Activities for raising funds	5	26,724	-	26,724	192,717	-	192,717
Investment income	6	199	-	199	429	-	429
		───────	───────	───────	───────	───────	───────
		663,880	80,000	743,880	382,110	13,625	395,735
Income from charitable activities	7	82,353	-	82,353	878,306	-	878,306
		───────	───────	───────	───────	───────	───────
Total income		746,233	80,000	826,233	1,260,416	13,625	1,274,041
		───────	───────	───────	───────	───────	───────
Expenditure
Costs of raising funds:
Costs of raising voluntary income	8	37,585	593	38,178	28,646	97	28,743
Costs of activities for raising funds	9	60,679	1,779	62,458	161,098	292	161,390
Expenditure on charitable activities	10	513,704	56,929	570,633	1,085,746	22,934	1,108,680
		───────	───────	───────	───────	───────	───────
Total expenditure		611,968	59,301	671,269	1,275,490	23,323	1,298,813
		───────	───────	───────	───────	───────	───────
Net movement of funds in year		134,265	20,699	154,964	(15,074)	(9,698)	(24,772)
Total funds brought forward at 1st April 2020		65,707	895,125	960,832	80,781	904,823	985,604
		───────	───────	───────	───────	───────	───────
Total funds carried forward at 31st March 2021		199,972	915,824	1,115,796	65,707	895,125	960,832
		═══════	═══════	═══════	═══════	═══════	═══════

The charitable company has made no acquisitions nor discontinued any operations during either of the above two financial years, therefore incoming resources and net outgoing resources derive entirely from continued operations.

The annexed notes form part of these financial statements.

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Company Number: 1179918

Chipping Norton Theatre Limited (The)

Balance Sheet at 31st March 2021

	Note		2021		2020
		£	£	£	£
Tangible fixed assets
Tangible assets	13		887,489		890,489
Current assets
Stocks	14	2,614		5,292
Debtors	15	145,476		147,394
Bank accounts		341,153		108,412
Cash accounts		967		2,288
		───────		───────
		490,210		263,386
Current liabilities
Creditors: Amounts falling due
within one year	16	(261,903)		(193,043)
		───────		───────
Net current assets / (liabilities)			228,307		70,343
			───────		───────
Net assets			1,115,796		960,832
			═══════		═══════
Represented by:-
Capital funds
Restricted funds	17		915,824		895,125
Unrestricted funds	17		199,972		65,707
			───────		───────
Total funds			1,115,796		960,832
			═══════		═══════

The financial statements have been prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies.

Approved by the Council of Management on ……………………… 2021 and signed on their behalf by:

…………………………..

R Greaves Trustee

The annexed notes form part of these financial statements.

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Chipping Norton Theatre Limited (The)

Statement of Cash Flows for the year ended 31st March 2021

Note Cash used in operating activities 20 Cash flows from investing activities Interest income Purchase of equipment Cash provided by investing activities Increase/(decrease) in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Total cash and cash equivalents at the end of the year	2021 £ 231,221 _ 199 - _ 199 _ 231,420 110,700 _ 342,120 ═════	2020 £ 3,141 _ 429 - _ 429 _ 3,570 107,130 _ 110,700 ═════

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Chipping Norton Theatre Limited (The)

Notes to the financial Statements for the year ended 31st March 2021

1. Accounting policies

Basis of preparation

These accounts have been prepared on an accruals basis and include income and expenditure as they are earned or incurred, rather than as cash is received or paid. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Accounting Practice.

The accounts include all the transactions, assets and liabilities for which the Charity is responsible in law.

The Charity constitutes a public benefit entity as defined by FRS 102.

Income

Voluntary income, including donations, gifts and grants are recognised where there is entitlement, certainty of receipt and the amount can be reliably measured. Voluntary income is deferred where the donor has specified that the donation or grant must be used in a future accounting period.

Investment income is recognised on a receivable basis.

Income from charitable activities is recognised as earned through the provision of goods and services.

All income is stated net of VAT.

Income is deferred where admission fees or performance related grants are received in advance of the performances or events to which they relate.

Depreciation and diminution in value of assets

Tangible fixed assets are stated at cost less depreciation.

Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold buildings	None
Theatre equipment	25%	reducing balance basis
Vehicles	25%	reducing balance basis

No depreciation is provided on the freehold buildings to the extent that they are maintained in a high state of repair and there is no evidence of impairment to their value.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Leasing

Rentals paid under operating leases are charged to the income and expenditure account on straight line basis over the term of the lease.

Accounting disclosures

In common with many other companies of our size and nature we use our auditors to assist with the preparation of the accounts.

Irrecoverable VAT

The Charity is treated as partially exempt for VAT purposes and as such is not able to reclaim all of its input VAT. The amount of irrecoverable VAT is included within support costs.

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Chipping Norton Theatre Limited (The)

Notes to the financial Statements (continued) for the year ended 31st March 2021

1. Accounting policies (continued)

Expenditure

Expenditure is recognised when a liability is incurred.

Costs of generating funds are those costs incurred in attracting voluntary income in the form of donations and gifts.

Charitable activities include all direct costs and support costs associated with the staging of performances and participation or education activities.

Governance costs represent those costs incurred in the overall governance of the charities and are primarily associated with the cost of complying with constitutional and statutory requirements.

Support costs represent central function costs and overheads. These costs have been allocated to a category using a suitable apportionment percentage based on the costs directly attributable to each category.

Pension costs

The charity operates a defined contribution scheme for the benefit of qualifying employees. The costs of contributions are recognised in the year in which they become payable.

Fund accounting

Unrestricted funds consist of a general fund which the Trustees may use at their discretion for the furtherance of the objects of the Charity.

Restricted funds are subject to specific conditions imposed by the donor or by the terms of an appeal, those conditions being legally binding upon the Trustees.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

Operating leases

The charity classifies the lease of printing, specialist lighting and audio equipment as operating leases; the title to the equipment remains with the lessor and the equipment is replaced every 5 years whilst the economic life of such equipment is normally 10 years. Rental charges are charged on a straight line basis over the term of the lease.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial instruments

The Charity only has financial assets and financial 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 bank loans which are subsequently measured at amortised cost using the effective interest method.

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Chipping Norton Theatre Limited (The)

Notes to the financial Statements (continued) for the year ended 31st March 2021

1. Accounting policies (continued)

Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements, including a revision of expectations for the potential impact of the ongoing COVID-19 pandemic on the charity. In addition to its own free reserves, the Charity has the pledged support of Chipping Norton Theatre Trust, an independent charity whose principal activity is supporting The Chipping Norton Theatre Limited.

The Trustees have concluded that the budgeted income and expenditure is sufficient with the level of reserves held for the charity to be able to continue as a going concern.

2. Legal status of the charity

The Charity is a company limited by guarantee, incorporated in England and Wales. The liability of the members in the event of a winding up is limited to an amount not exceeding £1 per member.

3. Net movement of funds

		2021	2020
		£	£
This is stated after charging:
Auditors’ remuneration	– audit of the financial statements	4,500	4,400
	– tax compliance services	300	300
	– accountancy services	11,614	11,400
Depreciation of owned	assets	3,000	3,000
		═════	═════

4. Donations and legacies

Donations and legacies
	Unrestricted	Restricted	2021	2020
	£	£	£	£
Fundraising and donations	120,139	75,000	195,139	108,889
Chipping Norton Theatre and Friends Trust	12,000	-	12,000	23,873
Friends’ Committee Funds	30,219	-	30,219	40,927
Revenue grants	76,548	5,000	81,548	3,000
Government grants
- JRS income (furlough)	157,753	-	157,753	-
- Small business grants	41,007	-	41,007	-
- WODC annual support funding	26,170	-	26,170	25,900
- Arts Council England - CRF	173,121	-	173,121	-
	──────	──────	──────	──────
	636,957	80,000	716,957	202,589
	═════	═════	═════	═════
Activities for raising funds
	Unrestricted	Restricted	2021	2020
	£	£	£	£
Sponsorship	11,308	-	11,308	25,788
Front of house trading	6,651	-	6,651	112,861
Lettings	8,510	-	8,510	47,251
External services provision	255	-	255	6,817
	──────	──────	──────	──────
	26,724	-	26,724	192,717
	═════	═════	═════	═════

5. Activities for raising funds

-15-

Chipping Norton Theatre Limited (The)

Notes to the Financial Statements (continued) for the year ended 31st March 2021

6. Investment income

All of the investment income arises from interest received on interest-bearing deposit and current accounts.

7. Income from charitable activities

				Unrestricted	Restricted	2021	2020
				£	£	£	£
	Pantomime			24,820	-	24,820	331,830
	Live programme			6,646	-	6,646	163,218
	External events			17,361	-	17,361	34,274
	Cinema			8,031	-	8,301	81,371
	Take Part programme			16,937	-	16,937	74,026
	Productions and projects			-	-	-	99,705
	Booking fee and other income			1,649	-	1,649	41,189
	Theatre tax relief		- Current year	6,909	-	6,909	45,676
			- Previous year	-	-	-	7,017
				──────	──────	──────	──────
				82,353	-	82,353	878,306
				═════	═════	═════	═════
8.	Costs of raising voluntary	income
				Unrestricted	Restricted	2021	2020
				£	£	£	£
	Fundraising	-	staff	29,798	-	29,798	16,400
		-	other costs	3,946	-	3,946	7,264
	Support costs (see note 12)			3,841	593	4,434	5,079
				──────	──────	──────	──────
				37,585	593	38,178	28,743
				═════	═════	═════	═════
9.	Costs of activities for raising		funds
				Unrestricted	Restricted	2021	2020
				£	£	£	£
	Front of house	-	staff	41,118	-	41,118	84,854
		-	other costs	7,984	-	7,984	40,137
	Lettings			49	-	49	21,158
	Support costs			11,528	1,779	13,307	15,241
				──────	──────	──────	──────
				60,679	1,779	62,458	161,390
				═════	═════	═════	═════

-16-

Chipping Norton Theatre Limited (The)

Notes to the Financial Statements (continued) for the year ended 31st March 2021

10. Expenditure on charitable activities

			Unrestricted	Restricted	2021	2020
			£	£	£	£
Pantomime	-	staff	-	-	-	-
	-	other	19,576	-	19,576	169,442
Live programme	-	staff	-	-	-	-
	-	other	5,021	-	5,021	115,856
External and collaborative	events		10,944	-	10,944	25,251
Productions and projects			2,295	-	2,295	120,207
Special projects (seating)			-	-	-	-
Take Part	-	staff	24,701	-	24,701	29,037
	-	other	19,405	-	19,405	42,686
Cinema	-	staff	-	-	-	-
	-	other	5,973	-	5,973	39,197
Box office	-	staff	45,521	-	45,521	55,460
	-	other	11,351	-	11,351	23,821
Support costs			368,917	56,929	425,846	487,723
			──────	──────	──────	──────
			513,704	56,929	570,633	1,108,680
			═════	═════	═════	═════

11. Staff costs

The average number of persons employed by the company during the year was as follows:

	2021	2020
Production	3	3
Administration and management	13	13
	──────	──────
	16	16
	═════	═════
The aggregate payroll costs were as follows:
	2021	2020
	£	£
Wages and salaries	359,911	427,071
Social security	18,589	20,481
	──────	──────
	378,500	447,552
	═════	═════

No member of staff received total employee benefits of more than £60,000 during the current or previous financial year.

No remuneration was paid, nor any expenses reimbursed, to any Trustee during the current or previous financial year.

-17-

Chipping Norton Theatre Limited (The)

Notes to the Financial Statements (continued) for the year ended 31st March 2021

12. Support costs

	Costs of	Costs of
	raising voluntary	activities for	Charitable	Total	Total
	income	raising funds	activities	2021	2020
	£	£	£	£	£
Advertising	64	193	6,180	6,437	23,099
Audit	45	135	4,320	4,500	3,000
Bank charges	2	7	228	237	1,817
Depreciation	30	90	2,880	3,000	3,000
Irrecoverable VAT	188	565	18,069	18,822	33,946
Legal and professional	165	496	15,879	16,540	15,869
Other staff costs	12	35	1,131	1,178	2,325
Premises costs	1,412	4,237	135,577	141,226	110,529
Printing, postage and stationery	105	316	10,127	10,548	44,012
Subscriptions and licenses	36	108	3,464	3,608	4,612
Travel and entertaining	1	4	123	128	4,032
Wages and salaries	2,374	7,121	227,868	237,363	261,802
	4,434	13,307	425,846	443,587	508,043
Fund allocation
Unrestricted	3,841	11,528	368,917	384,286	498,300
Restricted	593	1,779	56,929	59,301	9,743
	4,434	13,307	425,846	443,587	508,043

-18-

Chipping Norton Theatre Limited (The)

Notes to the Financial Statements (continued) for the year ended 31st March 2021

13. Tangible fixed assets

13.	Tangible fixed assets
		Freehold
		Land and	Theatre
		Buildings	Equipment	Total
		£	£	£
	Cost:
	At 1st April 2020	880,000	294,897	1,174,897
		──────	──────	──────
	At 31st March 2021	880,000	294,897	1,174,897
		──────	──────	──────
	Depreciation:
	At 1st April 2020	-	284,408	284,408
	Charge for the year	-	3,000	3,000
		──────	──────	──────
	At 31st March 2021	-	287,408	287,408
		──────	──────	──────
	Net book value:
	At 31st March 2021	880,000	7,489	887,489
		═════	═════	═════
	At 31st March 2020	880,000	10,489	890,489
		═════	═════	═════
14.	Stocks
			2021	2020
			£	£
	Goods for resale		2,614	5,292
			═════	═════
15.	Debtors and prepayments
			2021	2020
			£	£
	Amounts falling due within one year:
	Trade debtors		9,408	27,469
	Prepayments and accrued income		77,665	28,909
	Theatre tax relief recoverable		52,585	91,016
	VAT Debtor		5,818	-
			──────	──────
			145,476	147,394
			═════	═════
16.	Creditors
			2021	2020
			£	£
	Amounts falling due within one year:
	Trade creditors		22,255	28,286
	Accruals and deferred income		176,814	100,043
	VAT creditor		-	12,839
	Other creditors		62,834	51,875
			──────	──────
			261,903	193,043
			═════	═════

-19-

Chipping Norton Theatre Limited (The)

Notes to the Financial Statements (continued) for the year ended 31st March 2021

17. Reserves

2021 Unrestricted Restricted Air Handling Audio Description Foundation Stones Building Refurbishments Improving Access Property Fund Stage Floor Theatre’s Trust Wet Room Total Restricted 2020 Unrestricted Restricted Oxfordshire Theatre Company Property Fund Wet Room Foundation Stones Air Handling Awards For All Improving Access Stage In-Fill Blocks Stage Floor Audio Description Total Restricted	Balance at Balance at 31st 1st April 2020 Income Expenditure March 2021 £ £ £ £ 65,707 746,233 (611,968) 199,972 11,725 - (11,725) - 500 - - 500 900 - - 900 - 75,000 (44,000) 31,000 500 - - 500 880,000 - - 880,000 500 - - 500 - 5,000 (3,576) 1,424 1,000 - - 1,000
	895,125 80,000 (59,301) 915,824
	960,832 826,233 (671,269) 1,115,796
	Balance at Balance at 31st 1st April 2019 Income Expenditure March 2020 £ £ £ £ 80,781 1,260,416 (1,275,490) 65,707 13,580 - (13,580) - 880,000 - - 880,000 - 1,000 - 1,000 - 900 - 900 - 11,725 - 11,725 8,743 - (8,743) - 500 - - 500 1,000 - (1,000) - 500 - - 500 500 - - 500
	904,823 13,625 (23,323) 895,125
	985,604 1,274,041 (1,298,813) 960,832

The Oxfordshire Theatre Company fund represents the value of assets transferred from OTC to The Theatre under an Agreement in which Oxfordshire Theatre Company Limited donated all its assets to the charity. Its use is restricted to the delivery of a live touring theatre programme to rural venues in Oxfordshire and throughout the country. The remaining balance is expected to be used in the next financial period.

The Property fund represents the net book value of the theatre building.

During the current and previous financial years, a number of other restricted funds were received in respect of specific projects that have either been completed or will be completed in the 2020/21 financial year. These are clearly named above and include; Wet Room, Foundation Stones, Building Refurbishments, Air Handling, Awards for All, Improving Access, Stage Infill Blocks, Stage Floor, Audio Description.

-20-

Chipping Norton Theatre Limited (The)

Notes to the Financial Statements (continued) for the year ended 31st March 2021

18. Analysis of net assets between funds

	Unrestricted	Restricted	Total
	funds	funds	funds
2021	£	£	£
Tangible fixed assets	7,489	880,000	887,489
Current assets	454,386	35,824	490,210
Current liabilities	(261,903)	-	(261,903)
	──────	──────	──────
Net assets at 31st March 2021	199,972	915,824	1,115,796
	══════	══════	══════
	Unrestricted	Restricted	Total
	funds	funds	funds
2020	£	£	£
Tangible fixed assets	10,489	880,000	890,489
Current assets	248,261	15,125	263,386
Current liabilities	(193,043)	-	(193,043)
	──────	──────	──────
Net assets at 31st March 2020	65,707	895,125	960,832
	══════	══════	══════

19. Related party transactions

There were no related party transactions during the year (2020: Nil).

20. Reconciliation of net movement in funds to net cash flow from operating activities

	2021	2020
	£	£
Net movement in funds	154,964	(24,772)
Add back depreciation charge including loss on disposal	3,000	3,000
Deduct interest income shown in investing activities	(199)	(429)
Decrease / (increase) in stock	2,678	(1,370)
Decrease in debtors	1,918	59,233
Decrease / (increase) in creditors	68,860	(32,521)
	──────	──────
Net cash used in operating activities	231,221	3,141
	═════	═════

-21-