**Registered number: 01329092 Charity number: 274803**
## **NORWICH ARTS CENTRE LIMITED**
**(A company limited by guarantee)**
## **UNAUDITED**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2021**
## **NORWICH ARTS CENTRE LIMITED**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the company, its Trustees and advisers**|1|
|**Trustees' report**|2 - 6|
|**Independent examiner's report**|7 - 8|
|**Statement of financial activities**|9|
|**Balance sheet**|10 - 11|
|**Statement of cash flows**|12|
|**Notes to the financial statements**|13 - 31|
## **NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021**
|**Trustees**|R Drury|
|---|---|
||L Farrant|
||M Figura|
||S Forster|
||G Tucker|
||M Uzor|
||K J Went|
||L Wright|
|**Company registered**
**number**
01329092
**Charity registered**
**number**
274803
**Registered office**
51 St Benedict's Street
Norwich
Norfolk
NR2 4PG
**Company secretary**
L Wright
**Accountants**
Larking Gowen LLP
Chartered Accountants
King Street House
15 Upper King Street
Norwich
NR3 1RB
**Bankers**
Barclays Bank plc
Small business banking
Leicester
LE87 2BR||
Page 1
## **NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021**
The Trustees present their annual report together with the financial statements of the company for the year 1 April 2020 to 31 March 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **Objectives and activities**
## **a. Policies and objectives**
The principal activity of the company is the promotion, improvement and advancement of the arts, with particular relevance to the community in Norfolk and Norwich, and the provision of facilities in the interest of social education for recreation or other leisure time occupation.
Norwich Arts Centre employs the Chief Executive, together with a number of full and part time staff involved in education, promotion, catering and administration.
The subsidiary, NAC Cafe Bar Limited, was dormant this year so made neither profit nor loss as the activities of the subsidiary have been incorporated into the activities of the parent charity.
## **Report from the Chair for the year ended 31 March 202** 1
The year was of course dominated internationally by the global pandemic that caused the venue to be closed for almost all of the year and endure very restricted trading when it was allowed to open. This was potentially the most challenging period that a venue such as ours could face but it is of immeasurable credit to Director Pasco-Q Kevlin, General Manager Bradley Glasspoole, Finance Manager Jayne Steward and their team that, for now at least, we are emerging in a strong financial and operational condition.
In many ways we were fortunate in that we had planned to close for a significant proportion of this financial year to complete the capital programme of improvements and refurbishments to the building, funded by Arts Council England’s Small Scale Capital Investment Grant scheme and a successful public fundraising campaign that realised the money needed to release the ACE grant.
As well as providing much improved sound and lighting rigs and complete redecoration of the building, the capital programme was specifically designed to make the building more accessible for both performers and audiences. It also reduced our carbon footprint and additionally aimed to make the organisation as a whole more sustainable by reducing energy usage.
The effects of Covid19 and anticipated expectations following the lifting of restrictions affected the capital project especially around the design and fitting out of bar and toilets to allow distancing and touch free operation where possible. We also used the project as an opportunity to invest in broadcast quality camera equipment. This enabled Norwich Arts Centre to stream events which were staged to distanced audiences and thus to continue to engage wider audiences in our shows. To date our YouTube channel has had around 3,000 views.
We ended the year with a building in much better shape to face the future, a building that offered unrivalled access for performers and audiences alike and one that was at the forefront of carbon footprint reduction. As a
Page 2
## **NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021**
## **Objectives and activities (continued)**
result we were awarded Gold Standard by Norfolk Carbon Charter and Bronze level from ‘Accessibility is Everything’ – although the latter is expected to be upgraded to at least Silver in the coming year.
The government furlough scheme was a considerable financial help as was our successful applications to ACE and Norwich City Council administrated cultural recovery grants. I’m pleased to say that we were able to apply responsibly for to these funds for amounts that realistically reflected our needs without inflating these.
Furlough allowed us to keep the bulk of the core staff team together who worked hard and flexibly on the days they were taken off furlough to contribute to the work of the organisation. Inevitably there was some restructuring when it became apparent that changed circumstances would dictate that certain roles would become redundant in a changing operational landscape but this was kept to a minimum. For furloughed staff we made up the difference between government funding and full salaries.
The effect of the pandemic on organisations such as ours caused us to review our reserves policy and reset it at a more realistic level to reflect a financial cushion that could cover three months of operation. I am happy to report that the new level of reserves have been met this year.
We also opened as a bar with outdoor seating on Friday and Saturday evenings in the summer, which as well as allowing people into the building and grounds to see the newly equipped and decorated venue provided employment for our bar staff.
As noted above we were only able to stage a selected number of events to a greatly reduced capacity of only 42 people but by streaming these we allowed many more people to see them. At the very end of the year our annual festival of performance, Tilted East, returned (mostly) digitally via our new streaming Home Service YouTube channel. From 26 to 28 March 2021 we showcased work from some of Norfolk’s very best performers.
- We were still able to support a diverse range of artists throughout the year and amongst those were
- poets Luke Wright and Piers Harrison-Reid,
- writers Mags Chalcraft-Islam, Molly Naylor and James McDermott
- painter Will Teather,
- nonbinary performer Liv,
- musicians Polly Wright, Sink Ya Teeth, The Birds of Hell/Pee Murdoch and Roger Eno
- multi-instrumentalist, actress, singer, writer and educator Anna Mudeka
Our partnerships with organisations such as Young Norfolk Arts Trust, Norwich Science Festival, Wild Paths Festival, Norwich Theatre, Cambridge Junction and Colchester Arts Centre have continued to prosper and benefit all parties.
Although it would have been imprudent in these difficult times to offer above inflation pay increases to staff the ground was prepared to adjust salaries for permanent staff at levels comparable to similar organisations when circumstances allow. Norwich Arts Centre maintains a strong commitment to what we see as our most valuable asset, tour committed, enthusiastic, knowledgeable and loyal workforce.
I should also like to thank my fellow trustees for their continued support, foresight and efforts in these difficult times.
Page 3
## **NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021**
## **Objectives and activities (continued)**
Norwich Arts Centre went into 2021/22 year strong in spirit and morale while aware of the challenges to come as the pandemic continued, challenges faced by all in the arts industry. The enviable reputation that has been generated over the past 40+ years has been significantly strengthened in recent years and the successful completion of the capital project showed a tangible outcome and a significant impact to greet returning audiences who were overwhelmingly enthusiastic and appreciative.
## **Stephen A Forster, Chair**
## **a. Fundraising activities and income generation**
Norwich Arts Centre does not undertake conventional charitable fundraising activities, it does not have any third-party fundraisers acting on its behalf and has not received any complaints about its fundraising activity over the last year.
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the Trustees are confident that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
## **b. Reserves policy**
The notes to the financial statements show the assets and liabilities attributable to the various funds by type.
The trustee's ongoing policy is to maintain a sufficient level of reserves so as to enable the Arts Centre to meet its commitments as they fall due. In addition the trustees have recognised that sufficient reserves need to be maintained to meet any potential redundancy payments that may be needed for employees should the Centre be forced to close. In the opinion of the trustees the current balance of unrestricted funds of £94,250 sufficient to meet these liabilities. The free reserves of the charity at 31 March 2021 (being the unrestricted current assets less unrestricted current liabilities) amount to £24,846 (2020: £5,576), as set out in note 17.
## **c. Financial review**
Total income for the year ended 31 March 2021 was £609,951 compared to £1,184,557 for the previous year. Included within income was £179,804 of COVID funding, largely being from the Coronavirus Job Retention Scheme (2020: £4,211). Expenditure of £519,173 was incurred in this financial year (2020: £825,922). This has increased the total funds held by the charity to £730,261 at 31 March 2021, compared to £639,483 at 31 March 2020.
## **Structure, governance and management**
Page 4
## **NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021**
## **Structure, governance and management (continued)**
## **a. Constitution**
Norwich Arts Centre Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 19 May 1977.
The company is constituted under a Memorandum of Association dated 19 May 1977 and is a registered charity number 274803.
## **b. Methods of appointment or election of Trustees**
The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.
The members of the Company appoint the Council of Management. One third of the board retires annually, on a rotation basis. Retiring members may stand for re-election.
## **c. Policies adopted for the induction and training of Trustees**
The charity trustees will make available to each new charity trustee, on or before his or her first appointment:
(a) a copy of the current version of the Articles of Association;
(b) a copy of the latest Trustees' Annual Report and statement of accounts; and
(c) are made aware of the guidance available at Charity Commission including CC3 'The essential trustee'.
## **d. Pay policy for key management personnel**
All permanent staff are subject to an annual pay review carried out by the Trustees.
## **e. Risk management**
The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
## **Plans for future periods**
As Covid restrictions allow, Norwich Arts Centre will continue to deliver an exciting programme of world class cultural events for the 2021/22 period and maintain our commitment to develop the best emerging artistic talent in the region and nationally. Norwich Arts Centre is also developing its reach and partnering with other organisations to deliver cultural activity in areas of low engagement, using its experienced programming and talent development teams to ensure that everyone has the best opportunity to experience great art.
Page 5
## **NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2021**
## **Independent examiner's report to the Trustees of Norwich Arts Centre Limited ('the company')**
I report to the charity Trustees on my examination of the accounts of the company for the year ended 31 March 2021.
## **Responsibilities and basis of report**
As the Trustees of the company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Since the company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
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.
Page 7
**NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021**
This report is made solely to the company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's Trustees as a body, for my work or for this report.
Joanne Fox FCA (Senior statutory auditor)
Larking Gowen LLP Chartered Accountants Norwich Date: 14 December 2021
Page 8
## **NORWICH ARTS CENTRE LIMITED**
## **(A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021**
|**Note**
**Income from:**
Donations and legacies:
3
Grants
_._ Other donations and legacies
Charitable activities
4
Other trading activities
5
Other income
6
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
7
**Total expenditure**
**Total transfers**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2021**
**£**
**286,415**
**6,279**
**19,190**
**2,746**
**179,804**
**494,434**
**53,837**
**375,028**
**428,865**
**-**
**65,569**
**28,681**
**65,569**
**94,250**|**Restricted**
**funds**
**2021**
**£**
**115,517**
**-**
**-**
**-**
**-**
**115,517**
**-**
**90,308**
**90,308**
**-**
**25,209**
**610,802**
**25,209**
**636,011**|**Total**
**funds**
**2021**
**£**
**401,932**
**6,279**
**19,190**
**2,746**
**179,804**
**609,951**
**53,837**
**465,336**
**519,173**
**-**
**90,778**
**639,483**
**90,778**
**730,261**|_Total_
_funds_
_2020_
_£_
_654,020_
_12,501_
_309,965_
_203,860_
_4,211_
_1,184,557_|
|---|---|---|---|---|
|||||_161,130_
_664,792_
_825,922_|
|||||_-_
_358,635_|
|||||_280,848_
_358,635_
_639,483_|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 13 to 31 form part of these financial statements.
Page 9
## **NORWICH ARTS CENTRE LIMITED (A company limited by guarantee) REGISTERED NUMBER: 01329092**
## **BALANCE SHEET AS AT 31 MARCH 2021**
|**Note**
**Fixed assets**
Tangible assets
12
Investments
13
**Current assets**
Stocks
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
**Net current assets**
**Total assets less current liabilities**
**Total net assets**|**4,390**
**32,983**
**114,350**
**151,723**
**(107,558)**|**2021**
**£**
**686,094**
**2**
**686,096**
**44,165**
**730,261**
**730,261**|_5,686_
_30,105_
_73,136_
_108,927_
_(81,577)_|_2020_
_£_
_612,131_
_2_
_612,133_
_27,350_
_639,483_|
|---|---|---|---|---|
|||||_639,483_|
Page 10
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## **NORWICH ARTS CENTRE LIMITED**
## **(A company limited by guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 13 to 31 form part of these financial statements|**2021**
**£**
**212,817**
**(171,603)**
**(171,603)**
**41,214**
**73,136**
**114,350**|_2020_
_£_
_387,777_
_(405,739)_
**(405,739)**
**(17,962)**
_91,098_
_73,136_|
|---|---|---|
Page 12
## **NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **1. General information**
The company is a company limited by guarantee, incorporated in England and Wales. The registered office is 51 St Benedict's Street, Norwich, Norfolk, NR2 4PG. The registered company number is 01329092. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Norwich Arts Centre Limited 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.
## **2.2 Company status**
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
## **2.3 Going concern**
The Trustees have considered the Charity's position at the time of signing the financial statements, and in particular the effects of Covid-19, as described in more detail in the Trustees' Report. Having considered a range of scenarios, together with the range of measures the Trustees could take to further manage costs should the need arise, the Trustees are confident that the Charity is well positioned to weather any further challenges presented by the pandemic and to continue to deliver its services.
Based on this, the Trustees have concluded that they are confident that the Charity will have adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of signing these financial statements, and they therefore continue to adopt the going concern basis of accounting in preparing these financial statements.
Page 13
## **NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **2. Accounting policies (continued)**
## **2.4 Income**
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustees' report for more information about their contribution.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the company which is the amount the company 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.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
Page 14
## **NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **2. Accounting policies (continued)**
## **2.5 Expenditure**
Expenditure is recognised on an accruals basis once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.
Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
## **2.6 Government grants**
Government grants are credited to the Statement of financial activities once the company has entitlement.
## **2.7 Tangible fixed assets and depreciation**
Tangible fixed assets costing £100 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities incorporating income and expenditure account.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Page 15
**NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **2. Accounting policies (continued)**
## **2.7 Tangible fixed assets and depreciation (continued)**
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
- Freehold property 31 years straight line - Long-term leasehold property 31 years straight line Freehold land - Not depreciated - General equipment 1-7 years straight line
## **2.8 Investments**
Investments in subsidiaries are valued at cost less provision for impairment.
## **2.9 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.10 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.11 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.
## **2.12 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
Page 16
**NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **2. Accounting policies (continued)**
## **2.13 Financial instruments**
The company 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.
## **2.14 Operating leases**
Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.
## **2.15 Pensions**
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
## **2.16 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **3. Income from donations and legacies**
|**Unrestricted**
**funds**
**2021**
**£**
Art Council England East
227,921
Donations
6,279
Local authority grants
58,494
**Total 2021**
292,694|**Restricted**
**funds**
**2021**
**£**
115,517
-
-
115,517|**Total**
**funds**
**2021**
**£**
**343,438**
**6,279**
**58,494**
**408,211**|
|---|---|---|
Page 17
## **NORWICH ARTS CENTRE LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **3. Income from donations and legacies (continued)**
|Arts Council England East
Donations
Local authority grants|_Unrestricted_
_funds_
_2020_
_£_
_189,507_
_12,501_
_37,000_
_239,008_|_Restricted_
_funds_
_2020_
_£_
_427,513_
_-_
_-_
_427,513_|_Total_
_funds_
_2020_
_£_
_617,020_
_12,501_
_37,000_
_666,521_|
|---|---|---|---|
## **4. Income from charitable activities**
|**Unrestricted**
**funds**
**2021**
**£**
Box office income
4,194
Premises hire
-
Insurance - loss of earnings
13,870
Other income
1,126
**Total 2021**
19,190
_Unrestricted_
_funds_
_2020_
_£_
Box office income
_260,361_
Premises hire
_22,263_
Other income
_27,341_
_Total 2020_
_309,965_|**Total**
**funds**
**2021**
**£**
**4,194**
**-**
**13,870**
**1,126**
**19,190**|
|---|---|
||_Total_
_funds_
_2020_
_£_
_260,361_
_22,263_
_27,341_
_309,965_|
Page 18
## **NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **5. Income from other trading activities**
## **Income from fundraising events**
|**Unrestricted**
**funds**
**2021**
**£**
Cafe Bar sales
1,846
Other fundraising income
900
2,746
_Unrestricted_
_funds_
_2020_
_£_
Cafe Bar sales
_203,860_|**Total**
**funds**
**2021**
**£**
**1,846**
**900**
**2,746**|
|---|---|
||_Total_
_funds_
_2020_
_£_
_203,860_|
## **6. Other incoming resources**
|Covid - 19 Grant
Coronavirus Job Retention Scheme income
**Total 2021**|**Unrestricted**
**funds**
**2021**
**£**
27,000
152,804
179,804|**Total**
**funds**
**2021**
**£**
**27,000**
**152,804**
**179,804**|
|---|---|---|
During the year, the Charity received exceptional government funding as part of the Coronavirus Job Retention Scheme. Funding represents the costs of employing certain staff unable to carry out their duties as a result of the coronavirus crisis.
Page 19
## **NORWICH ARTS CENTRE LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **6. Other incoming resources (continued)**
||_Unrestricted_|_Total_|
|---|---|---|
||_funds_|_funds_|
||_2020_|_2020_|
||_£_|_£_|
|Coronavirus Job Retention Scheme Income|_4,211_|_4,211_|
## **7. Analysis of expenditure by activities**
|Charitable activities
Governance
**Total 2021**
Charitable activities
Governance
_Total 2020_|**Activities**
**undertaken**
**directly**
**2021**
**£**
200,820
-
200,820
_Activities_
_undertaken_
_directly_
_2020_
_£_
_406,598_
_-_
_406,598_|**Support**
**costs**
**2021**
**£**
261,686
2,830
264,516
_Support_
_costs_
_2020_
_£_
_248,545_
_9,649_
_258,194_|**Total**
**funds**
**2021**
**£**
**462,506**
**2,830**
**465,336**|
|---|---|---|---|
||||_Total_
_funds_
_2020_
_£_
_655,143_
_9,649_
_664,792_|
Page 20
**(A company limited by guarantee)**
## **NORWICH ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **7. Analysis of expenditure by activities (continued)**
## **Analysis of direct costs**
|Staff costs
Technical costs
Equipment & materials
Security
Training
Travel & subsistence
Performer fees & expenses
Performer Rights Society
Bank charges
Online ticket sales expenses
Staff costs
Technical costs
Equipment & materials
Security
Training
Travel & subsistence
Performer fees & expenses
Performer Rights Society
Bank charges
Online ticket sales expenses|**Direct costs**
**2021**
**£**
151,194
5,788
1,818
8,797
1,146
1,115
20,805
4,800
3,365
1,992
200,820
_Direct costs_
_2020_
_£_
_146,639_
_4,656_
_10,478_
_22,198_
_2,259_
_11,457_
_181,821_
_6,449_
_9,556_
_11,085_
_406,598_|**Total**
**funds**
**2021**
**£**
**151,194**
**5,788**
**1,818**
**8,797**
**1,146**
**1,115**
**20,805**
**4,800**
**3,365**
**1,992**
**200,820**|
|---|---|---|
|||_Total_
_funds_
_2020_
_£_
_146,639_
_4,656_
_10,478_
_22,198_
_2,259_
_11,457_
_181,821_
_6,449_
_9,556_
_11,085_
_406,598_|
Page 21
**(A company limited by guarantee)**
## **NORWICH ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **7. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Staff costs
Cleaning
Rent and Rates
Insurances
Heat, Light and Water
Office costs and admin
Legal and professional
Advertising
Other building charges
Irrecoverable VAT
Depreciation
Staff costs
Cleaning
Rent and Rates
Insurances
Heat, Light and Water
Office costs and admin
Legal and professional
Advertising
Other building charges
Irrecoverable VAT
Depreciation|**Support**
**Costs**
**2021**
**£**
83,022
684
22,735
7,928
8,462
10,558
800
660
23,135
96,370
7,332
261,686
_Support_
_Costs_
_2020_
_£_
_91,931_
_9,042_
_27,154_
_7,314_
_12,260_
_11,092_
_1,338_
_7,123_
_11,306_
_61,784_
_8,201_
_248,545_|**Governance**
**2021**
**£**
-
-
-
-
-
-
2,830
-
-
-
-
2,830
_Governance_
_2020_
_£_
_-_
_-_
_-_
_-_
_-_
_-_
_9,649_
_-_
_-_
_-_
_-_
_9,649_|**Total**
**funds**
**2021**
**£**
**83,022**
**684**
**22,735**
**7,928**
**8,462**
**10,558**
**3,630**
**660**
**23,135**
**96,370**
**7,332**
**264,516**|
|---|---|---|---|
||||_Total_
_funds_
_2020_
_£_
_91,931_
_9,042_
_27,154_
_7,314_
_12,260_
_11,092_
_10,987_
_7,123_
_11,306_
_61,784_
_8,201_
_258,194_|
Page 22
**(A company limited by guarantee)**
## **NORWICH ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **8. Analysis of Expenditure by expenditure type**
|**Cost of raising funds:**
Expenditure on fundraising trading
**Cost of**
**Charitable activities:**
Charitable activities
Governance
**Cost of raising funds:**
Expenditure on fundraising trading
**Cost of charitable activities**
Charitable activities
Governance|**Staff costs**
**2021**
**£**
49,237
49,237
234,216
-
283,453
_Staff costs_
_2020_
_£_
_79,660_
_79,660_
_238,570_
_-_
_318,230_|**Depreciation**
**2021**
**£**
-
-
97,640
-||**Other costs**
**2021**
**£**
4,600
**4,600**
130,650
2,830||**Total**
**funds**
**2021**
**£**
**53,837**
**53,837**
**462,506**
**2,830**
**519,173**|
|---|---|---|---|---|---|---|
|||97,640||138,080|||
|||_Depreciation_
_2020_
_£_
_-_
_-_
_60,339_
_-_
_60,339_||_Other costs_
_2020_
_£_
_81,470_
_81,470_
_356,234_
_3,989_
_441,693_||_Total_
_funds_
_2020_
_£_
_161,130_
**161,130**
_-_
_-_
_820,262_|
||||||||
||||||||
||||||||
**9. Independent examiner's remuneration**
||**2021**|_2020_|
|---|---|---|
||**£**|_£_|
|Fee payable to the company's auditor for the audit of the company's|||
|annual accounts|**-**|_6,400_|
|Fees payable to the company's independent examiner for the independent|||
|examination of the company's annual accounts|**2,750**|_-_|
Page 23
**(A company limited by guarantee)**
## **NORWICH ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **10. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2021**
**£**
**259,969**
**18,452**
**5,032**
**283,453**|_2020_
_£_
_292,144_
_20,889_
_5,197_|
|---|---|---|
|||_318,230_|
The average number of persons employed by the company during the year was as follows:
||**2021**|_2020_|
|---|---|---|
||**No.**|_No._|
|Employees|**18**|_20_|
No employee received remuneration amounting to more than £60,000 in either year.
Key management personnel includes the Trustees, the Director, the General Manager and the Finance Manager. The total amount of employee benefits received by key management personnel for their services was £119,369 (2020: £107,936).
## **11. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2020 - £NIL)_ .
During the year ended 31 March 2021, no Trustee expenses have been incurred _(2020 - £NIL)_ .
Page 24
## **NORWICH ARTS CENTRE LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **12. Tangible fixed assets**
|**Cost or valuation**
At 1 April 2020
Additions
At 31 March 2021
**Depreciation**
At 1 April 2020
Charge for the year
At 31 March 2021
**Net book value**
At 31 March 2021
_At 31 March 2020_|**Freehold**
**property**
**£**
**381,034**
**-**
**381,034**
**258,122**
**12,292**
**270,414**
**110,620**
_122,912_|**Long-term**
**leasehold**
**property**
**£**
**254,384**
**-**
**254,384**
**195,808**
**5,857**
**201,665**
**52,719**
_58,576_|**Freehold**
**land**
**£**
**7,033**
**-**
**7,033**
**-**
**-**
**-**
**7,033**
_7,033_|**General**
**equipment**
**£**
**760,736**
**171,603**
**932,339**
**337,126**
**79,491**
**416,617**
**515,722**
_423,610_|**Total**
**£**
**1,403,187**
**171,603**
**1,574,790**
**791,056**
**97,640**
**888,696**
**686,094**|
|---|---|---|---|---|---|
||||||_612,131_|
Page 25
**NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **13. Fixed asset investments**
|**Cost or valuation**
At 1 April 2020
At 31 March 2021|**Shares in**
**group**
**undertaking**
**s**
**£**
**2**
**2**|
|---|---|
## **Principal subsidiaries**
The following was a subsidiary undertaking of the company:
|||**Company**|**Principal activity**|**Holding**|**Included in**|**Included in**|
|---|---|---|---|---|---|---|
|||**number**|||**consolidation**||
||NAC Cafe Bar Limited|03716749|Dormant|100% Yes|||
||The financial results of the subsidiary|for the year|were:||||
|||||||**Net assets**|
|||||||**£**|
||NAC Cafe Bar Limited|||||**2**|
|**14.**|**Debtors**||||||
||||||**2021**|_2020_|
||||||**£**|_£_|
||**Due within one year**||||||
||Trade debtors||||**5,544**|_15,430_|
||Other debtors||||**1,742**|_-_|
||Prepayments and accrued income|||**25,697**||_14,675_|
|||||**32,983**||_30,105_|
Page 26
## **NORWICH ARTS CENTRE LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **15. Creditors: Amounts falling due within one year**
|Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 April 2020
Resources deferred during the year
Amounts released from previous periods|**2021**
**£**
**11,692**
**6,631**
**1,188**
**88,047**
**107,558**|_2020_
_£_
_7,434_
_7,602_
_-_
_66,541_
_81,577_
**2021**
**£**
**61,719**
**29,840**
**(8,605)**
**82,954**|
|---|---|---|
Page 27
## **NORWICH ARTS CENTRE LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **16. Statement of funds**
## **Statement of funds - current year**
|**Balance at 1**
**April 2020**
**£**
**Unrestricted funds**
General funds
**28,681**
**Restricted funds**
Restricted funds
**610,802**
**Total of funds**
**639,483**
**Statement of funds - prior year**
_Balance at_
_1 April 2019_
_£_
_Income_
_£_
**Unrestricted funds**
General Funds - all funds
_45,421_
_752,833_
**Restricted funds**
Restricted Funds - all funds
_235,427_
_427,513_
Government grants
_-_
_4,211_
_235,427_
_431,724_
**Total of funds**
_280,848_
_1,184,557_|**Income**
**£**
**494,434**
**115,517**
**609,951**
_Expenditure_
_£_
_(773,784)_
_(52,138)_
_-_
_(52,138)_
_(825,922)_|**Expenditure**
**£**
**(428,865)**
**(90,308)**
**(519,173)**
_Transfers_
_in/out_
_£_
_4,211_
_-_
_(4,211)_
_(4,211)_
_-_|**Balance at**
**31 March**
**2021**
**£**
**94,250**|
|---|---|---|---|
||||**636,011**|
||||**730,261**|
||||_Balance at_
_31 March_
_2020_
_£_
_28,681_|
|
**Unrestricted funds**
General Funds - all funds
**Restricted funds**
Restricted Funds - all funds
Government grants
**Total of funds**||||
||||_610,802_
_-_
_610,802_
_639,483_|
Restricted funds represent funds received from the lottery and Arts Council for improvements to buildings and facilities.
Page 28
**(A company limited by guarantee)**
## **NORWICH ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **17. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|**Unrestricted**
**funds**
**2021**
**£**
Tangible fixed assets
69,402
Fixed asset investments
2
Current assets
132,404
Creditors due within one year
(107,558)
**Total**
94,250|**Restricted**
**funds**
**2021**
**£**
616,692
-
19,319
-
636,011|**Total**
**funds**
**2021**
**£**
**686,094**
**2**
**151,723**
**(107,558)**
**730,261**|
|---|---|---|
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
**Total**|_Unrestricted_
_funds_
_2020_
_£_
_23,103_
_2_
_87,153_
_(81,577)_
_28,681_|_Restricted_
_funds_
_2020_
_£_
_589,028_
_-_
_21,774_
_-_
_610,802_|_Total_
_funds_
_2020_
_£_
_612,131_
_2_
_108,927_
_(81,577)_
_639,483_|
|---|---|---|---|
Page 29
## **NORWICH ARTS CENTRE LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **18. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income for the year (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Decrease in stocks
Increase in debtors
Increase/(decrease) in creditors
**Net cash provided by operating activities**
**19.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**20.**
**Analysis of changes in net debt**
**At 1 April**
**2020**
**£**
Cash at bank and in hand
**73,136**
**73,136**|**2021**
**£**
**90,778**
**97,640**
**1,296**
**(2,878)**
**25,981**
**212,817**
**2021**
**£**
**114,350**
**114,350**
**Cash flows**
**£**
**41,214**
**41,214**|_2020_
_£_
_358,635_
_60,339_
_639_
_(3,951)_
_(27,885)_
_387,777_
_2020_
_£_
_73,136_
_73,136_
**At 31 March**
**2021**
**£**
**114,350**
**114,350**|
|---|---|---|
## **21. Pension commitments**
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £5,032 (2020: £5,197). Contributions totalling £Nil (2020: £Nil) were payable to the fund at the balance sheet date.
Page 30
## **NORWICH ARTS CENTRE LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **22. Operating lease commitments**
At 31 March 2021 the company had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years|**2021**
**£**
**17,627**
**17,313**
**34,940**|_2020_
_£_
_17,627_
_34,940_|
|---|---|---|
|||_52,567_|
## **23. Related party transactions**
During the year, the company paid amounts totalling £Nil (2020: £1,172) on behalf of the CEO in respect of moving expenses. The balance due to the company at the year end was £Nil (2020: £1,471).
During the year, the company paid £Nil (2020: £3,432) in respect of co-productions for True Stories Live and Balloon with LJ Hope Productions, of which Lucy Farrant is a Director. The balance due at the year end was £Nil (2020: £Nil).
During the year, the company paid commission of £2,100 (2020: £1,500) to Luke Wright, in respect of the new play 'The Remains of Logan Dankworth.' The balance due at the year end was £Nil (2020: £Nil).
During the year, the company paid £Nil (2020: £150) to Katy Jon Went, in respect of the Respectful Conversation series of events. The balance due at the year end was £Nil (2020: £Nil).
Page 31