**Charity registration number 276998**
**Company registration number 01393436 (England and Wales)**
## **WARE ARTS CENTRE LIMITED**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023**
## **WARE ARTS CENTRE LIMITED**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** John Davis Tina Goodman Darrell Hegerty Fiona Martin Sean Shaw Mark Wilkinson Jan Wing John Wing **Secretary** Jan Wing **Charity number** 276998 **Company number** 01393436 **Registered office** Southern Maltings Kibes Lane Ware Hertfordshire SG12 7DE **Independent examiner** Gary Howard FCA Howard Wilson Chartered Accountants 36 Crown Rise Watford Hertfordshire WD25 0NE **Bankers** CAF Bank 25 Kings Hill Avenue West Malling Kent ME19 4JQ
## **WARE ARTS CENTRE LIMITED**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees report|1 - 5|
|Independent examiner's report|6|
|Statement of financial activities|7|
|Balance sheet|8 - 9|
|Notes to the financial statements|10 - 20|
## **WARE ARTS CENTRE LIMITED**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
The Trustees present their annual report and financial statements for the year ended 28 February 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and "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)".
## **Objectives and activities**
The charitable company is established to promote, maintain, improve and advance public education particularly by the production of educational plays and the encouragement of the arts and crafts; including drama, mime, dance, singing, music, drawing, painting, graphics, printmaking, photography, ceramics, sculpture, carving and craft handiwork and to formulate, prepare and establish schemes therefore provided that all objects of the company shall be of a charitable nature.
The Southern Maltings is an artistic space dedicated to creating creative experiences that will enhance the health and well-being of the local and wider community. Through the provision of opportunities to learn, practice and experience creativity, we enable people of all ages and abilities to explore, experience and enjoy their own and other’s artistic achievements.
The aims of the charitable company are to provide a vibrant, contemporary, inclusive, accessible and creative environment, offering studio, exhibition, performance, and social spaces for people of all ages and abilities in which to experiment and discover, to produce and display, to collaborate and celebrate, giving a heart and home for the wider creative community. We aim to be diverse in our activities and proactively inclusive.
By giving the Southern Maltings a new purpose as an 'arts for all centre' we will bring cultural, social, and economic benefits to the whole area by creating new employment possibilities and providing opportunities for people and organisations to contribute time, skills, and enthusiasm to the wellbeing of the community through volunteering.
The objectives for the year under review were:
To continue to provide space for local groups to meet, learn and socialise at an affordable cost and to aid local community groups to recover from the impact of the Covid Pandemic.
To create a diverse programme of events, workshops for all ages and abilities widening the offer to new activities.
To create a hub of skilled craft people and artists to deliver workshops and provide space for their work to be celebrated and displayed.
To explore uses for the new downstairs space created during 2018-2020 and to run a series of pilot events to explore to benefits and limitations of the space.
The main activities undertaken in relation to those objectives were:
Room hire formed approximately 30% of income generation in 2019-20 with diverse groups from Poets, dance schools, singing, yoga and Pilates, alongside social gatherings though our Local Social Café. The year was a slow start due to the impact of Covid, particularly on younger people. The hires of rooms was significantly down until the latter part of 2022 but new groups have started to use our space, pleasingly some youth theatre.
- 1 -
## **WARE ARTS CENTRE LIMITED**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
Approximately 54 events have been hosted in the building in this financial year ranging from music events (Jazz, Acoustic and a Guitar Club) to local themed markets, Children’s events, film, craft workshops and a Christmas event involving local artists and a Christmas Experience was created, transforming our downstairs space into a Gingerbread House and magical storytelling space. Audiences recovered slowly but some regular events are now established with good audience turnout, particularly since late 2022.
During this year we were able to introduce some wellbeing activities and artists including Life Drawing, Gong Baths and African Drumming. Our trial events for the new space included our Christmas Experience (above), a “Ware’s the community” event involving local community groups to enable them to reconnect following a lack of face-to-face events, We partnered with Herts County Council to offer our building as a Warm Space during the colder months offering a free hot meal and drinks to all alongside crafts and games. This has allowed us to develop our plans to open a community café for our users and other local people who through cost-of-living pressures and high energy prices were struggling. We held a successful Easter drop in crafts for over 100 families with craft and gardening activities as a pilot to introduce craft sessions for pre-schoolers.
A Fun Palace for “Everyone an Artist, Everyone a Scientist’ to took place in October combined with a themed market focused on children.
## **Statement on compliance with Charity Commission guidance on public benefit**
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake. Going forward the Board will be working on the Code of Governance.
## **Strategic report**
The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the Trustees to present a strategic report.
## **Achievements and performance**
## **Charitable achievements**
Our investment in our building and creating events to support wellbeing and health, working with community groups supporting dementia sufferers and young people with learning difficulties and disabilities have increased and this year we have been pleased to work with an Inclusive Theatre Group.
Our programme has reflected the need for an emphasis on wellbeing during this year and we have partnered with other local groups to support our community, hosting community events including an afternoon tea in December for our local Ware U3A as a Christmas celebration.
Our activities are only possible through the generosity of our volunteers who give their time to support all of our many events. We now have over 40 regular volunteers regularly helping us and we were able to employ a volunteer co-ordinator to assist us. Our estimated value of our volunteers is calculated at approximately £90,000 if hours given were charged at a living wage.
A new initiative for 2023 is working in partnership with our local town council to introduce events in the town centre involving local producers and local musicians and choirs as part of the town centre strategy to regenerate the High Street and encourage people to come out and enjoy something local. To date we have had a Ukrainian Choir, food demonstrations and a circus workshop.
## **Fundraising achievements**
Our fundraising is generated via our events and volunteering plus we are members of the Local Authority “lottery” which raises 50% from each ticket purchased. All our fundraising is reinvested in our building maintenance and development of activities for the Community. We also have a talented group who assist us in keeping our building attractive and welcoming through work sessions. We also host “Volunteer days” when local companies spend a day with us undertaking a variety of tasks. Approximately 2,000 volunteer hours were provided by local business staff and our building team, which have an estimated value of £20,000.
- 2 -
## **WARE ARTS CENTRE LIMITED**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **Financial review**
The income for the year was £218,285 an increase of £17,585 on the previous year (£200,700). Major capital works on the building were held in abeyance whilst we rebuilt our business activities but the next year we plan to undertake some much needed work on the building to make it more useable and to undertake some major repair works requiring specialist skills. We are in the process of gaining Listed Building and Planning consent for our plans.
The expenditure for the year was £143,070, a decrease of £8,232 on the previous year (£151,302). Included in the previous year's expenditure was £18,611 relating to development work. The Capital Programme will be phased to enable our activities to continue with a minimum of disruption.
At the year end the charity's unrestricted reserves stood at £183,743, an increase of £71,389 on the previous year. Of this, £73,250 has been designated as contingency funds and for specific ongoing projects. In addition, the charity had restricted reserves of £40,994, these being funds with restrictions on use for particular projects.
## **Reserves policy**
The Trustees have assessed that we should maintain reserves of £30,000 being the estimated amount needed to ensure the Southern Maltings project can continue should a major issue be encountered as it would cover the fixed costs and maintenance costs needed to stay solvent.
At 28 February 2023 our reserves were in excess of £30,000. The additional funds were required to complete projects not yet finished and additional works required by the trustees to perform essential building improvements for health and safety purposes.
## **Principal sources of income**
There were three principal sources of income in the year:
Room hire for local community groups.
Events run by volunteers as paid performances.
Grants to assist with projects to trial community activities or for expanding the offer of creative workshops and cultural activities.
## **Investment policy**
Our cash reserves are the only form of investment we have. We currently earn low rates of interest on this. We have no other forms of investment. Trustees review the investments annually and aim to ensure that the charity's cash holdings are protected.
## **Risk review**
The Trustees have assessed the major risks to which the charitable company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Plans for future periods**
The organisation is moving into an investment mode to deliver some new ventures and make adaptations to the building to better support our programme of events:
Explore uses of new downstairs space – this will now focus on equipping the space for theatre and performances
and providing new lighting and flexible features to support multiple uses.
Rebuild our room hire usage and hirers – this is now underway, and our plans now involve offering more workshops and classes to increase our wish to develop more creative opportunities for our communities.
Increase the diversity of events including new ventures e.g. theatre performance, creative writing and establishing a community café to support our events and users.
Continue to develop our café and bar to support the events and bring the community in.
- 3 -
## **WARE ARTS CENTRE LIMITED**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **Structure, governance and management**
The Charitable Company was incorporated as a Company Limited by Guarantee on 10 October 1978 and as such has no share capital.
The Company was registered as a Charity on 21 March 1979 by the Charity Commission for England and Wales.
None of the Trustees has any beneficial interest in the company. The Trustees who are also the Members of the charitable company have undertaken to contribute a sum not exceeding £1 in the event of winding up.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
John Davis Tina Goodman Darrell Hegerty Fiona Martin Sean Shaw Mark Wilkinson Jan Wing John Wing
We advertise for Trustees and look for skills to support our Charity. Prospective Trustees are interviewed and attend a board meeting prior to joining. We are an equal opportunity organisation.
## **Organisational structure**
The organisational structure is a Board of eight Trustees who meet quarterly and operate through subcommittees to oversee procedures and planning.
## **Induction and training of Trustees**
The Board of Trustees is currently undertaking training through our Hertfordshire Community Foundation “Building Better Boards” series of workshops. During the year of report Trustees attended some elements of the Better Boards training virtually.
Induction is through a short meeting with senior Trustees at present, but this is now planned to be using a skills analysis and to ensure we have the right skills needed for the organisation. We propose to advertise to widen our reach. We have also some special advisors on matters of property and HR issues.
## **Relationship with the wider network**
We are actively involved with local groups in the town and work closely with many local groups who had adopted our building as their home.
## **Relationships with related parties**
East Herts Council is our landlord, we have regular review meetings with both East Herts and Ware Town Council on our progress and have received local grants from Ware Town Council and East Herts Community Grants Scheme. In early 2022 our landlord, East Herts Council deferred a rent increase to assist our recovery from Covid and allowed an additional year prior to begin repaying a loan until January 2023.
- 4 -
## **WARE ARTS CENTRE LIMITED**
## **TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **Statement of Trustees responsibilities**
The Trustees, who are also the directors of Ware Arts Centre Limited for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees report was approved by the Board of Trustees.
## **Fiona Martin**
Trustees Dated: 20 September 2023
- 5 -
## **WARE ARTS CENTRE LIMITED**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF WARE ARTS CENTRE LIMITED**
I report to the Trustees on my examination of the financial statements of Ware Arts Centre Limited (the charitable company) for the year ended 28 February 2023.
## **Responsibilities and basis of report**
As the Trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charitable 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 charitable company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
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 that in any material respect:
- 1 accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements 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 financial statements 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 financial statements to be reached.
## **Gary Howard FCA**
Howard Wilson Chartered Accountants 36 Crown Rise Watford Hertfordshire WD25 0NE
Dated: 27 September 2023
- 6 -
## **WARE ARTS CENTRE LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
6,452
2,290
Charitable activities
**4**
180,014
29,239
Investments
**5**
290
-
**Total income**
186,756
31,529
**Expenditure on:**
Raising funds
**6**
46,516
16,677
Charitable activities
**7**
68,851
11,026
**Total expenditure**
115,367
27,703
**Net incoming**
**resources before**
**transfers**
71,389
3,826
Gross transfers between
funds
-
-
**Net income for the year/**
**Net movement in funds**
71,389
3,826
Fund balances at 1
March 2022
112,354
37,168
**Fund balances at 28**
**February 2023**
183,743
40,994|**Total**
Unrestricted
Restricted
funds
funds
**2023**
2022
2022
**£**
**£**
**£**
8,742
22,087
-
209,253
108,639
69,970
290
4
-
218,285
130,730
69,970
63,193
33,080
19,319
79,877
38,794
60,109
143,070
71,874
79,428
75,215
58,856
(9,458)
-
11,710
(11,710)
75,215
70,566
(21,168)
149,522
41,788
58,336
224,737
112,354
37,168|Total
2022
**£**
22,087
178,609
4|
|---|---|---|
|||200,700|
|||52,399|
|||98,903|
|||151,302|
|||49,398
-|
|||49,398
100,124|
|||149,522|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 7 -
## **WARE ARTS CENTRE LIMITED**
## **BALANCE SHEET**
## _**AS AT 28 FEBRUARY 2023**_
|**Notes**
**Fixed assets**
Tangible assets
**11**
**Current assets**
Stocks
**12**
Debtors
**13**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**14**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**15**
**Net assets**
**Income funds**
Restricted funds
**16**
Unrestricted funds
Designated funds
**17**
General unrestricted funds|**2023**
**£**
1,854
22,535
233,360
257,749
(31,133)
73,250
110,493|**£**
19,982
226,616
246,598
(21,861)
224,737
40,994
183,743
224,737|**2022**
**£**
1,739
37,213
122,387
161,339
(4,886)
67,000
45,354|**£**
25,942
156,453
182,395
(32,873)
149,522
37,168
112,354
149,522|
|---|---|---|---|---|
- 8 -
## **WARE ARTS CENTRE LIMITED**
## **BALANCE SHEET (CONTINUED)**
## _**AS AT 28 FEBRUARY 2023**_
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 28 February 2023.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 20 September 2023
Janice I Wing Fiona Martin Jan Wing **Trustee Trustee**
## **Company Registration No. 01393436**
- 9 -
## **WARE ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **1 Accounting policies**
## **Charity information**
Ware Arts Centre Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Southern Maltings, Kibes Lane, Ware, Hertfordshire, SG12 7DE.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and "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 charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charitable company.
## **1.4 Income**
Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
## **1.5 Expenditure**
Resources expended are included in the Statement of Financial Activities on an accruals basis.
Support costs are allocated on the basis of time spent on each activity.
- 10 -
## **WARE ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **1 Accounting policies**
## **(Continued)**
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements over 10 years Plant and equipment over 4 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.7 Impairment of fixed assets**
At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.8 Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.10 Financial instruments**
The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
- 11 -
## **WARE ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **1 Accounting policies**
**(Continued)**
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.
## **1.11 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **2 Critical accounting estimates and judgements**
In the application of the charitable company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
- 12 -
## **WARE ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**£**
**£**
Donations and gifts
6,452
2,290
Grants receivable
-
-
6,452
2,290
**Grants receivable for core activities**
Covid 19 grants - East Herts Council
-
-
-
-|**Total Unrestricted**
**funds**
**2023**
**2022**
**£**
**£**
8,742
3,894
-
18,193
8,742
22,087
-
18,193
-
18,193|**Total Unrestricted**
**funds**
**2023**
**2022**
**£**
**£**
8,742
3,894
-
18,193
8,742
22,087
-
18,193
-
18,193|
|---|---|---|
|||22,087|
|||18,193|
|||18,193|
## **4 Charitable activities**
||**Arts Centre**|**Arts Centre**|
|---|---|---|
||**Operation**|**Operation**|
||**2023**|**2022**|
||**£**|**£**|
|Performance related grants|28,929|72,585|
|Events income|113,245|99,060|
|Hire income|67,079|6,964|
||209,253|178,609|
|Analysis by fund|||
|Unrestricted funds|180,014|108,639|
|Restricted funds|29,239|69,970|
||209,253|178,609|
|**Performance related grants**|||
|Culture Recovery Fund for Heritage|4,750|46,650|
|East Herts Council|559|10,100|
|Awards for All|-|10,000|
|Hertfordshire Community Foundation|16,200|3,220|
|Ware Town Council|5,170|-|
|Hertfordshire County Council|2,250|-|
|Other|-|2,615|
||28,929|72,585|
- 13 -
## **WARE ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **5 Investments**
|Interest receivable
**Raising funds**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**£**
**£**
Fundraising and publicity
Events costs
46,516
16,677
46,516
16,677|**Unrestricted Unrestricted**
**funds**
**funds**
**2023**
**2022**
**£**
**£**
290
4
**Total**
Unrestricted
Restricted
Total
funds
funds
**2023**
2022
2022
2022
**£**
£
£
£
63,193
33,080
19,319
52,399
63,193
33,080
19,319
52,399|**Unrestricted Unrestricted**
**funds**
**funds**
**2023**
**2022**
**£**
**£**
290
4
**Total**
Unrestricted
Restricted
Total
funds
funds
**2023**
2022
2022
2022
**£**
£
£
£
63,193
33,080
19,319
52,399
63,193
33,080
19,319
52,399|
|---|---|---|
|||Total
2022
£
52,399|
|||52,399|
## **6 Raising funds**
## **7 Charitable activities**
||**Arts Centre**|**Arts Centre**|
|---|---|---|
||**Operation**|**Operation**|
||**2023**|**2022**|
||**£**|**£**|
|Staff costs|17,975|20,375|
|Depreciation and impairment|10,540|8,768|
|Premises costs|17,206|19,501|
|Insurance costs|5,143|1,259|
|Repairs and maintenance costs|14,046|14,078|
|Office costs|1,118|2,678|
|Computer costs|271|5,586|
|Travel and subsistence costs|203|305|
|General expenses|2,267|2,697|
|Professional fees|9,138|2,825|
|Governance costs|1,970|2,220|
|Development costs|-|18,611|
||79,877|98,903|
|**Analysis by fund**|||
|Unrestricted funds|68,851|38,794|
|Restricted funds|11,026|60,109|
||79,877|98,903|
Governance costs comprise fees paid to the independent examiner.
- 14 -
## **WARE ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **8 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.
During the year expenses were reimbursed to 6 (2022: 8) Trustees for event, premises, office and fixed asset costs totalling £27,141 (2022: £26,973).
## **9 Employees**
## **Number of employees**
The average monthly number of employees during the year (including Directors/Trustees) was:
||**2023**|**2022**|
|---|---|---|
||**Number**|**Number**|
|Directors/Trustees|12|11|
|**Employment costs**|**2023**|**2022**|
||**£**|**£**|
|Wages and salaries|17,975|20,375|
There were no employees whose annual remuneration was £60,000 or more.
## **10 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 Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
- 15 -
## **WARE ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
|**11**
**Tangible fixed assets**
**Leasehold**
**improvements**
**Plant and**
**equipment**
**£**
**£**
**Cost**
At 1 March 2022
29,436
27,511
Additions
-
4,578
At 28 February 2023
29,436
32,089
**Depreciation and impairment**
At 1 March 2022
15,898
15,105
Depreciation charged in the year
2,944
7,596
At 28 February 2023
18,842
22,701
**Carrying amount**
At 28 February 2023
10,594
9,388
At 28 February 2022
13,537
12,405
**12**
**Stocks**
**2023**
**£**
Finished goods and goods for resale
1,854
**13**
**Debtors**
**2023**
**Amounts falling due within one year:**
**£**
Trade debtors
6,830
Other debtors
453
Prepayments and accrued income
15,252
22,535
**14**
**Creditors: amounts falling due within one year**
**2023**
**£**
Loan
12,000
Trade creditors
7,594
Other creditors
3,000
Accruals and deferred income
8,539
31,133|**Total**
**£**
56,947
4,578|
|---|---|
||61,525|
||31,003
10,540|
||41,543|
||19,982|
||25,942|
||**2022**
**£**
1,739|
||**2022**
**£**
1,232
2,438
33,543|
||37,213|
||**2022**
**£**
2,988
-
-
1,898|
||4,886|
- 16 -
## **WARE ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **15 Creditors: amounts falling due after more than one year**
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Loan|21,861|32,873|
The loan is from East Herts Council and is in respect of building works at the Centre which were paid for by the Council on the charity's behalf. The loan is due to be repaid over a three year period in equal instalments commencing January 2023.
- 17 -
## **WARE ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **16 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|||**Movement in funds**|**Movement in funds**|||**Movement in funds**|**Movement in funds**|||
|---|---|---|---|---|---|---|---|---|---|
||**Balance at**|**Incoming**|**Resources**|**Transfers**|**Balance at**|**Incoming**|**Resources**|**Transfers**|**Balance at**|
||**1 March 2021**|**resources**|**expended**||**1 March 2022**|**resources**|**expended**||**28 February**|
||||||||||**2023**|
||**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**|
|Power to Change|20,000|-|(17,947)|(2,053)|-|-|-|-|-|
|Culture Recovery Fund for Heritage|19,444|46,650|(36,929)|(1,000)|28,165|4,750|(323)|(18,500)|14,092|
|Culture Recovery Fund for Heritage -||||||||||
|Sustainability|-|-|-|-|-|-|-|18,500|18,500|
|Heritage Lottery Fund|16,075|-|(5,596)|(10,479)|-|-|-|-|-|
|Co-op Community Fund|1,417|-|(1,417)|-|-|-|-|-|-|
|Community Revenue Grant|1,400|1,600|(3,000)|-|-|-|-|-|-|
|Awards for All|-|10,000|(10,587)|587|-|-|-|-|-|
|Covid Recovery|-|7,500|(352)|-|7,148|-|(5,073)|-|2,075|
|HAPpy Programme|-|3,220|(3,454)|234|-|4,200|(4,200)|-|-|
|Healthy Hub|-|1,000|-|-|1,000|-|-|(1,000)|-|
|Arts Fundraising|-|-|(145)|1,000|855|-|-|(855)|-|
|Workshops|-|-|-|-|-|2,000|(2,007)|1,855|1,848|
|Warm Space Grant|-|-|-|-|-|2,000|(411)|-|1,589|
|Sound and Light Fund|-|-|-|-|-|4,000|(1,863)|-|2,137|
|Tudor Square Markets|-|-|-|-|-|3,130|(2,377)|-|753|
|Ware's the Community|-|-|-|-|-|1,449|(1,449)|-|-|
|Jubilee Arts Council|-|-|-|-|-|10,000|(10,000)|-|-|
||58,336|69,970|(79,427)|(11,711)|37,168|31,529|(27,703)|-|40,994|
- 18 -
## **WARE ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **16 Restricted funds**
**(Continued)**
Power to Change is funding from the Power to Change Trust to develop workshops, pay tutor fees and purchase equipment to allow us to reopen after the pandemic.
Culture Recovery Fund for Heritage is a grant to enable us to recover after the extended period of closure, protect our heritage and employ staff. We have transferred an amount of £18,500 to a separate fund for a resilience reserve to enable continued operations.
Heritage Lottery Fund is funding to enable us to reopen and to bring our newly developed ground floor space into use.
Co-op Community Fund is being used to develop use of our outdoor spaces.
Community Revenue Grant from East Herts Council was for digital inclusion and blended learning.
Awards for All is funding towards the Heritage Room Project.
Covid Recovery is a grant for volunteer development.
HAPpy Programme was funding for a Create and Craft Club to provide summer activities for families receiving Free School Meals.
Healthy Hub is funding to run wellbeing workshops.
Arts Fundraising is to support our ability to fundraise for our activities.
Workshops includes funding from Ware Town Council towards the cost of workshops.
Warm Space Grant is funding from Hertfordshire Community Foundation to provide a warm and welcoming space during the winter months.
Sound and Light Fund is funding from Hertfordshire County Council and Maverick Advertising to provide for sound and lighting equipment.
Tudor Square Markets is funding from Ware Town Council to put on markets.
Ware's the Community was funding for community projects from various sources.
Jubilee Arts Council was funding from Hertfordshire Community Foundation for events to celebrate the Jubilee and 70 years of history.
- 19 -
## **WARE ARTS CENTRE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **17 Designated funds**
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
|**Balance at**
**1 March 2021**
**£**
Contingency fund
30,000
Essential Works Fund
-
Grain Store Repair Fund
-
Rental reserve
-
30,000|**Transfers**
**Balance at**
**1 March 2022**
**£**
**£**
-
30,000
17,000
17,000
20,000
20,000
-
-
37,000
67,000|**Transfers**
**Balance at**
**28 February**
**2023**
**£**
**£**
-
30,000
20,000
37,000
(20,000)
-
6,250
6,250
6,250
73,250|
|---|---|---|
Contingency fund is the core level of reserves that the Trustees consider would be required to enable the Southern Maltings project to continue should a major issue be encountered.
Essential Works Fund and Grain Store Repair Fund relate to specific projects.
Rental reserve is to provide a contingency against rental negotiations failing.
## **18 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**Restricted**
**funds**
**2023**
**2023**
**£**
**£**
Fund balances at 28
February 2023 are
represented by:
Tangible assets
19,982
-
Current assets/(liabilities)
185,622
40,994
Long term liabilities
(21,861)
-
183,743
40,994|**Total Unrestricted**
**funds**
**Restricted**
**funds**
**2023**
**2022**
**2022**
**£**
**£**
**£**
19,982
25,942
-
226,616
119,285
37,168
(21,861)
(32,873)
-
224,737
112,354
37,168|**Total**
**2022**
**£**
25,942
156,453
(32,873)
149,522|
|---|---|---|
## **19 Related party transactions**
There were no disclosable related party transactions during the year (2022 - none).
- 20 -