OpenCharities

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

2022-03-31-accounts

Company number 1303657 Charity number 273527

I.O.U. Limited

(Limited by Guarantee)

Report and Financial Statements for the year ended 31 March 2022

Breckman & Company Ltd Chartered Certified Accountants 49 South Molton Street London W1K 5LH

I.O.U. Limited

(Limited by Guarantee)

Contents

Page
Reference and Administrative Details 1 - 2
Chair's Report 3 - 7
Trustees' Report 8 - 22
Independent Examiner's report 23
Statement of Financial Activities (including Income and Expenditure Account) 24 - 27
Balance Sheet 28
Cash Flow Statement 29
Notes to the Financial Statements 30 - 39

I.O.U. Limited

(Limited by Guarantee)

Reference and Administrative Details

Constitution

The company is a private company limited by gaurantee regsitered in EW - Engalnd and Wales, company number 1303657, incorporated under the Companies Act and its governing document is its Memorandum and Articles of Association. The company is a registered charity, number 273527.

Directors and trustees

The directors of the charitable company ("the charity") are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees.

As set out in the Articles of Association the number of the members of the board shall not be less than 2 nor more than 50. The company may, by special resolution, from time to time appoint any person to be a member of the board.

Policies and procedures adopted for the induction and training of trustees are ongoing and incorporated indirectly into the regular trustees meetings.

The trustees during the year and since the year end, were :

David Wheeler Philip Boyes Nancy Ellis Imran Ali - resigned 26 April 2022 Tudor Gwynn Laurence Walker Ben Wilson - resigned 26 April 2022 Shirley May Sarah Coulson - appointed 26 October 2021 Shazia Khadim - appointed 26 April 2022 Catherine Wright - appointed 26 April 2022

Secretary

David Wheeler

Executive (day to day management)

Executive Director - Joanne Wain

Independent Examiners

Breckman & Company Ltd, Chartered Certified Accountants, 49 South Molton Street, London W1K 5LH.

Bankers

Lloyds TSB Bank Plc, 75 Commercial Street, Batley, West Yorkshire WF17 5EQ.

Solicitors

Harbottle & Lewis, 7 Savoy Court, London WC2R 0EX.

1

I.O.U. Limited

(Limited by Guarantee)

Reference and Administrative Details

Operation address

IOU, Dean Clough Mills, Halifax HX3 5AX.

Registered office

49 South Molton Street, London W1K 5LH.

2

Independent Examiner's Report to the Trustees of I.O.U. Limited

I report on the accounts of the charity for the year ended 31 March 2022, which are set out on pages 24 to 39.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The charity's gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of The Association of Chartered Certified Accountants.

Having satisfied myself that the charity is not subject to an audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner's statement

My examination was carried out in accordance with general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a "true and fair view" and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention

  1. which gives me reasonable cause to believe that in, any material respect, the requirements:

  2. ꞏ to keep accounting records in accordance with section 386 of the Companies Act 2006; and

  3. ꞏ to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities

have not been met; or

  1. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Graham Berry FCCA Breckman & Company Ltd Chartered Certified Accountants

49 South Molton Street London W1K 5LH

1 November 2022

23

I.O.U. Limited

(Limited by Guarantee)

Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 March 2022

Unrestricted
Restricted
Notes
funds
funds
£
£
Income and endowments from:
2
Donations and legacies - page 25
188,409
-
Charitable activities
Theatre - page 25
24,882
209,690
Investments
26
-
Other
3
120,044
-
Total
333,361
209,690
Expenditure on:
Charitable activities:
Theatre - page 26
273,727
209,690
Total
273,727
209,690
Net income / (expenditure)
4
59,634
-
Transfers between funds
14, 15
15,902
)
(15,902
Net movement in funds:
75,536
)
(15,902
Reconciliation of funds:
Total funds brought forward
161,000
143,123
Total funds carried forward
14, 15
236,536
127,221		 2022
Unrestricted
Restricted
Total
funds
funds
£
£
£
188,409
200,904
-
234,572
570
90,690
26
41
-
120,044
5,114
-
543,051
206,629
90,690
483,417
205,459
109,325
483,417
205,459
109,325
59,634
1,170
)
(18,635
-
15,902
)
(15,902
59,634
17,072
)
(34,537
304,123
143,928
177,660
363,757
161,000
143,123		 2021
Total
£
200,904
91,260
41
5,114
297,319
314,784
314,784
)
(17,465
-
)
(17,465
321,588
304,123

The notes on pages 30 to 39 form an integral part of these financial statements.

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

24

I.O.U. Limited

(Limited by Guarantee)

Year ended 31 March 2022

Income from donations and legacies
Grants
Arts Council England
Revenue / NPO
Calderdale small business relief
-
University of York - emergency COVID fund
-
Donations
Friends and Patrons
Incoming resources from charitable activities
Theatre income
Box office/fees/sales
Other income/donations
Project specific funding
Grants
ACE Culture Recovery Fund
CFFC - flood fund
CFFC - hostel accessability
Donation - hostel accessability
Sponsorship/donations
Dean Clough Ltd - rent
LCEP
STTA
First Group West Yorkshire - bus maintenance
Volunteers
Cultural destinations - PR/marketing
University of Sheffield - interns		 2022
£
188,404
-
188,404
5
188,409
23,549
1,333
24,882
56,000
-
5,000
5,000
77,290
37,000
6,000
2,400
5,000
10,000
6,000
209,690
234,572		 10,000
2,500		 2021
£
188,404
12,500
200,904
-
200,904
570
-
570
-
1,000
-
-
77,290
-
-
2,400
-
10,000
-
90,690
91,260

25

I.O.U. Limited

(Limited by Guarantee)

Year ended 31 March 2022

Expenditure on charitable activities
Theatre
Production / R & D costs
Rent
Light/heat
Equipment/hire/maintenance
Salaries/fees
Social security costs
Artists fees
Other fees
Sets/props/costumes
Bus prop
Travel/transport/accommodation
Publicity
Marketing/fundraising salaries/fees
PR/marketing in kind learning
LCEP
STTA
Volunteers
Interns
Sundry
Support and governance costs - page 27		 2022
£
72,678
3,832
22,457
101,752
5,813
26,782
1,425
30,232
2,400
222
22,894
12,400
10,000
37,000
6,000
5,000
6,000
1,315
368,202
115,215
483,417		 2021
£
72,711
3,668
944
101,388
10,806
2,300
-
5,668
2,900
-
5,600
15,655
10,000
-
-
-
-
)
(1,820
229,820
84,964
314,784

26

I.O.U. Limited

(Limited by Guarantee)

Year ended 31 March 2022

Support and governance costs
Office overheads
Rent/rates
Telephone/internet
Insurance
Repairs/renovations/renewals
Amortisation of short leasehold
Depreciation of motor vehicles
Depreciation of fixtures/fittings/equipment
Administration costs
Salaries
Social security costs
Staff pension costs
Fees
Training/recruitment/H & S
Travel/accommodation
Printing/postage/stationery
Subscriptions/journals
Sundry
Professional/financial
Consultancy fees
Bank charges
Governance costs
Legal/professional
Board expenses
Accountancy/consultancy
Accountancy - grant certfication
TTR
Secretarial		 2022
£
10,383
4,518
6,785
23,925
17,909
-
766
16,070
1,004
17,656
3,600
3,928
1,275
26
1,848
1,527
-
193
26
226
2,750
500
-
300		 £
64,286
46,934
193
111,413
3,802
115,215		 2021
£
10,387
3,998
6,383
4,018
17,909
200
1,376
15,986
1,578
9,795
3,600
1,147
-
163
2,115
160
400
176
13
1,960
2,550
-
750
300		 £
44,271
34,544
576
79,391
5,573
84,964

27

I.O.U. Limited

(Limited by Guarantee)

Balance Sheet 31 March 2022

2022 2021
Notes £ £ £ £
Fixed assets
Tangible assets 9 143,885 162,560
Current assets
Debtors 10 14,228 13,529
Cash at bank and in hand 229,342 265,067
243,570 278,596
Liabilities
Creditors: amounts falling
due within one year 11 )
(23,698		 )
(137,033
Net current assets 219,872 141,563
Total assets less current
over total assets 363,757 304,123
The funds of the charity
Unrestricted funds 14
- General fund 38,609 32,621
- Designated funds 197,927 128,379
236,536 161,000
Restricted funds 15 127,221 143,123
Total charity funds 363,757 304,123

For the year ending 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

ꞏ The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476;

ꞏ The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the provisions of the Companies Act 2006 applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees on 1 November 2022 and signed on its behalf by

Tudor Gwynn Trustee

The notes on pages 30 to 39 form an integral part of these financial statements.

28

I.O.U. Limited

(Limited by Guarantee)

Cash Flow Statement for the year ended 31 March 2022

Notes
Cash flows from operating activities
19
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of property, plant and equipment
Net cash provided by investment activities
Change in cash and cash equivalents in the reporting
period
Cash and cash equivalents at the beginning of the
reporting period
Cash at bank and in hand at the end of the
reporting period		 2022
£
)
(35,751
26
-
26
)
(35,725
265,067
229,342		 2021
£
136,870
41
)
(1,057
)
(1,016
135,854
129,213
265,067

29

I.O.U. Limited

(Limited by Guarantee)

1. Accounting policies

1.1. Basis of preparing the financial statements

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 (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

1.2. Incoming resources

All incoming resources are included in the Statement of Financial Activities when:

- Donations and legacies

Grants/donations are recognised in incoming resources in the year in which they are receivable, except as follows:

- Charitable activities

Theatre income - income from box office, performance fees and sundry other theatrical income is included in incoming resources in the period in which the relevant show takes place.

Project specific funding - when donors specify that donations and grants are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.

- Donated services and facilities

Donated services or facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

30

I.O.U. Limited

(Limited by Guarantee)

- Investment income

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.

1.3. Resources expended

All expenditure is included on an accruals basis inclusive of any VAT which cannot be recovered and is recognised when:

- Costs of raising funds

Costs incurred in attracting donations, and those incurred in trading activities that raise funds.

- Charitable activities

Theatre production costs - costs incurred in production and running of productions toured in the year.

- Support costs

The administrative and overhead costs associated with running the office from which the company operates as well as governance costs. Support costs are wholly attributable to theatre production costs.

- Governance costs

Costs associated with the constitutional and statutory requirements of the charity.

1.4. Tangible fixed assets and depreciation

Individual fixed assets costing £500 or more are capitalised at cost.

Depreciation is provided at annual rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

1.5. Production costs in advance

Costs incurred in respect of a theatre production which opens in the following accounting period, and which are to be paid out of general unrestricted funds, are carried forward at the balance sheet date.

1.6. Pensions

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are recognised as expenditure when due.

31

I.O.U. Limited

(Limited by Guarantee)

1.7. Fund accounting

Funds held by the charity are either:

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

1.8. Debtors

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

1.9. 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.

1.10. 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.

1.11. 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).

1.12. Significant Accounting Estimates and Judgements

In determining the carrying amounts of certain assets and liabilities, the charity makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The charity's estimates and assumptions are based on historical experience and expectation of future events and are reviewed annually.

2. Incoming resources

The total incoming resources for the year have been derived from the principal activity undertaken wholly in the UK.

32

I.O.U. Limited

(Limited by Guarantee)

3.
Other income
Flood insurance
Theatre/Film Tax Relief
4.
Net income/(expenditure) for the year is
stated after charging:
Depreciation of tangible fixed assets
Independent examiners fees
- independent examination
- other services		 2022
£
120,044
-
2022
£
18,675
2,750
800		 2021
£
-
5,114
2021
£
19,485
2,550
1,050

5. Trustees' emoluments and reimbursed expenses

The trustees received no remuneration during the year (2021 £nil).

The aggregated amount reimbursed to trustees during the year was £nil (2021 - £nil).

Indemnity insurance to cover the management and trustees was taken out during the year. Premiums paid during the year amounted to £101 (2021 £440)

33

I.O.U. Limited

(Limited by Guarantee)

6.
Staff costs and numbers
Staff costs
Salaries and wages
Social security costs
Pension costs		 2022
£
135,223
6,817
17,656
159,696		 2021
£
124,501
12,384
9,795
146,680

No employee earned £60,000 or more during the year (2021 - nil).

The key management personnel of the charity comprise the Trustees and the Senior Management Team. The total employee benefits of the key management personnel of the charity were £76,339 (2021 - £76,061).

Staff numbers

The average numbers of employees (including casual and part time staff) during the year was made up as follows:

up as follows:

Production
Support		 2022
Number

3
1
4		 2021
Number
4
1
5

7. Pension costs

The company operates a defined contribution pension scheme in respect of its employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £17,656 (2021 - £9,795).

8. Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

34

I.O.U. Limited

(Limited by Guarantee)

9.
Fixed assets - tangible assets
Short
Fixtures/
Motor
leasehold
fittings/
vehicles
property
equipment
£
£
£
Cost
1 April 2021 /
31 March 2022
297,616
89,349
800
Depreciation
1 April 2021
136,429
87,976
800
Charge for year
17,909
766
-
31 March 2022
154,338
88,742
800
Net book values
31 March 2022
143,278
607
-
31 March 2021
161,187
1,373
-
10.
Debtors
2022
£
Other debtors
6,805
Prepayments
7,423
14,228
11.
Creditors: amounts falling due
2022
within one year
£
Trade creditors
13,113
Other taxation/social security
3,878
Other creditors
1,496
Accruals
5,211
Deferred income (note 12)
-
23,698		 Total
£
387,765
225,205
18,675
243,880
143,885
162,560
2021
£
-
13,529
13,529
2021
£
4,932
1,764
120,961
3,376
6,000
137,033

35

I.O.U. Limited

(Limited by Guarantee)

12. Deferred income

Deferred income
Balance at 1 April 2021
Amount released to incoming resources
Balance at 31 March 2022
Deferred income relates to fees received in advance.		 £
6,000
)
(6,000
-

13. Limited by guarantee

The company is limited by guarantee, registered in EW - Engalnd and Wales, and does not have a share capital. Each member gives a guarantee to contribute a sum, not exceeding £1, to the company should it be wound up. At 31 March 2022 there were 9 members.

14. Unrestricted funds Brought Incoming Outgoing Transfers Carried
forward resources resources forward
£ £ £ £ £
General fund 32,621 333,361 )
(273,727		 )
(53,646		 38,609
Designated funds:
Capital Programme 16,123 - - )
(2,492		 13,631
Theatre Tax Relief 22,180 - - - 22,180
Loss of core funding 64,000 - - 7,000 71,000
Marketing 5,000 - - - 5,000
Sea to Sea prototype 15,300 - - )
(15,300		 -
IOU archive 4,363 - - - 4,363
Workshop roof repairs 1,413 - - - 1,413
Flood insurance monies - - - 80,340 80,340
161,000 333,361 )
(273,727		 15,902 236,536

Capital Programme

This fund represents an amount transferred from general funds to cover additional short leasehold costs. The funds are transferred to the general fund over the expected useful life of the asset.

Theatre Tax Relief

This fund represents an amount transferred from the general fund from theatre tax relief receipts to cover the ongoing general costs of new projects, wage increases, bus maintenance and new website.

36

I.O.U. Limited

(Limited by Guarantee)

Loss of core funding

This fund represents a reserve in the event of the loss of core funding.

Marketing

This fund represents an amount transferred from general funds to cover the development of promotional materials including website.

Sea to Sea prototype

This fund represents the matched underspend for filming the complete route, due to cancellations and the pandemic. It will be held in this fund until a time when the project can be delivered with further funding or transfers to the General Fund.

IOU archive

This fund represents the amount received in Film Tax Credit, to be spent on the IOU archive.

Workshop roof repairs

This fund represents an allocation from the General Fund for roof repais required to the workshop.

Flood insurance monies

This fund respresents the funds secured after a significant flood event in January 2020 which will be used to support future porjects.

15. Restricted funds Brought Incoming Outgoing Transfers Carried
forward resources resources forward
£ £ £ £ £
Capital funding 143,123 - - )
(15,902		 127,221
Studio space - 77,290 )
(77,290		 - -
Arts Council - Culture Recovery Fund
-		 56,000 )
(56,000		 - -
Volunteers - 5,000 )
(5,000		 - -
Hostel accessability - 10,000 )
(10,000		 - -
LCEP - 37,000 )
(37,000		 - -
Bus Prop - 2,400 )
(2,400		 - -
STTA - 6,000 )
(6,000		 - -
Interns - 6,000 )
(6,000		 - -
Cultural Destinations - 10,000 )
(10,000		 - -
143,123 209,690 )
(209,690		 )
(15,902		 127,221

Capital funding

This fund represents grants received for capital expenditure. The funds are transferred to unrestricted general funds over the expected useful life of the assets.

The balance at 31 March 2022 is attributable to:

£

Short leasehold property

127,221

37

I.O.U. Limited

(Limited by Guarantee)

Studio space

This fund represents sponsorship and a donation in kind towards the running costs of IOU's studio space from Dean Clough Industrial Park Limited, who are the company's landlords.

Arts Council - Culture Recovery Fund

This fund represents amounts received from the Arts Council Cultural Recovery Fund to assist the company with the loss of income from COVID.

Volunteers

The fund represents the value of supporters in kind benefits.

Hostel accessability

This fund represents amounts received to make the Hebden Bridge hostel accessable to all.

LCEP

This fund represents the value of funds raised with the Calderdale Consortium group to support the Local Cultural and Education Partnership.

Bus Prop

This fund represents donations in kind received in relation to the Bus prop used in Rear View.

STTA

This fund represents the in-kind value of STTA projects supported by IOU.

Interns

This fund represents the value of staff support from University of Sheffield for two interns working full time for three weeks.

Cultural Destinations

This fund represents the value of a marketing consortium group that IOU is a partner in.

16. Analysis of net assets between funds

General
Designated
Restricted
funds
funds
funds
£
£
£
Fund balances at 31 March 2022
are represented by:
Tangible fixed assets
3,033
13,631
127,221
Net current assets
6,975
212,897
-
10,008
226,528
127,221		 Total
£
143,885
219,872
363,757

38

I.O.U. Limited

(Limited by Guarantee)

17. Financial commitments

At 31 March 2022 the company had total future commitments under non-cancellable operating leases as follows:

as follows:
Due:
Within one year
Between one and five years		 2022
£
5,000
-
5,000		 2021
£
-
10,000
10,000

The company has a commitment of £5,000 per annum to Dean Clough which runs for the length of the lease. There is a break clause every time Arts Council England NPO funding agreements end, the current agreement was to run to 2022 but due to COVID has been extended to 2023.

18. Related party transactions

During the year the following trustee received payments as detailed below. No payments were made in respect of their services as a trustee and all transactions were subject to normal trading terms.

David Wheeler

£39,941 received as salary and pension contributions for services as artistic director.

19. Reconciliation of net income/(expenditure) to net cashflow from operating activities

Net income/(expenditure) for the
reporting period (as per the
statement of financial activities)
Depreciation
Dividends, interest and rents from investments
(Increase) in debtors
(Decrease) in creditors
Net cash outflow from operating activities		 2022
£
59,634
18,675
)
(26
)
(699
)
(113,335
)
(35,751		 2021
£
)
(17,465
19,485
)
(41
14,999
119,892
136,870

39