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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 01409066 (England and Wales) REGISTERED CHARITY NUMBER: 277415

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

THE RIO CENTRE (DALSTON) LIMITED

Brindley Millen Ltd Chartered Accountants and Statutory Auditors

167 Turners Hill Cheshunt Hertfordshire EN8 9BH

THE RIO CENTRE (DALSTON) LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 March 2021

Page
Report of the Trustees 1 to 4
Report of the Independent Auditors 5 to 6
Statement of Financial Activities 7
Balance Sheet 8
Cash Flow Statement 9
Notes to the Cash Flow Statement 10
Notes to the Financial Statements 11 to 18
Detailed Statement of Financial Activities 19 to 20

THE RIO CENTRE (DALSTON) LIMITED

REPORT OF THE TRUSTEES for the Year Ended 31 March 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of 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

Objectives and aims

The Rio is a registered charity incorporated as a Company Limited by Guarantee. The organisation's day-to-day activities are carried out by a staff team led by Executive Director Oliver Meek and his Operations Manager Yoan Segot. The Rio does not make use of "zero hours" contracts.

The Charity's core activity is to run the Rio Cinema, an independent cinema with two screening rooms, and a unique policy of community access and local involvement. The cinema is traditionally open 364 days of the year (except during the recent pandemic years), and its wide-ranging and varied programme typically presents approximately 1300 screenings annually incorporating: main feature films, programmes for children and the elderly, special events, festivals and independent films. The Rio provides a focal point for the area and also convenient and economical access to cinema for a wide range of Londoners, regularly offering discounted tickets both to the general public and targeted at specific groups.

Public benefit

The Directors have considered the Charity Commission guidance on public benefit and consider that the activities of the charity provide public benefit within the following charitable purposes:

THE ADVANCEMENT OF THE ARTS, CULTURE, HERITAGE OR SCIENCE

The Rio promotes an appreciation of the best of world cinema for the local community in the London Borough of Hackney and neighbouring boroughs. Through participation in film festivals showcasing work from around the world, the Rio demonstrates its commitment to providing local residents with as diverse a programme of high-quality cinema as possible.

THE ADVANCEMENT OF CITIZENSHIP OR COMMUNITY DEVELOPMENT

Cinema itself is a communal experience, an accessible art form that attracts a diverse and wide range of people. The Rio provides a home to film festivals that reflect the diversity of the local population, featuring films that may otherwise go unseen in the UK. These screenings provide an opportunity to learn about one another's cultures and heritage, aiding and developing community relations. The Rio also provides an outlet for local community organisations and charities to promote their causes, both through public screenings and our education programme.

THE ADVANCEMENT OF EDUCATION

The Rio Centre's extensive programme of schools screenings provides an invaluable adjunct to the classwork of local schools and is viewed by teachers as a significant educational resource. Filmmaking and animation workshops provide children with an introduction to the principles of both art forms. Using the recently digitised archive of photographs, the Rio collaborates on educational projects with local schools and museums.

THE RELIEF OF THOSE IN NEED, BY REASON OF YOUTH, AGE, ILL-HEALTH, DISABILITY, FINANCIAL HARDSHIP OR OTHER DISADVANTAGE

The Rio is determined to make film as accessible as possible to the local community, and therefore seeks to provide low-cost access to the cinema for people on benefits and for children to facilitate the widest possible access to its services. The Rio's monthly Classic Matinee aims to reduce feelings of isolation for older people and enrich life of those in care, providing local older people with an opportunity to socialise, enjoy a film and also free tea and biscuits. A community discount is available to appropriate organisations and individuals looking to hire out the cinema for their projects.

Page 1

THE RIO CENTRE (DALSTON) LIMITED

REPORT OF THE TRUSTEES

for the Year Ended 31 March 2021

ACHIEVEMENT AND PERFORMANCE

Building Improvements

With the support of the Architectural Heritage Fund, we have started a feasibility study for a potential Screen 3 in unused space above Screen 1. We have also ringfenced funds to refurbish the lobby and Screen 1 bar area. We believe this will better serve our members who might otherwise go to other nearby venues for refreshments before seeing a film. The projected increase in bar spend per head will add to the long-term viability of the cinema and provide an investment for future generations.

Staffing

Transparency and communication between trustees and staff are key and a new Staffing Sub-committee has established to take on staff ideas, improve processes, review the staff handbook and arbitrate on any issues. All staff have been retained despite challenging economic conditions. Where staff have left of their own accord, recruitment has taken place to ensure enough skills are in place to operate the cinema. Staff have been consulted before responding to government easing of pandemic-related restrictions to ensure we operate at levels with which they are comfortable.

Independent Cinema Community

The success and experience of the Rio during difficult conditions have led to other independent cinemas seeking our help and advice. In two cases, this has led to 12-month service agreements signed with other cinemas where we provide services by sharing existing staff and charging a modest profit margin on our costs. This additional regular income has been a key addition to our revenue and one we believe we can grow in future for the benefit of our charitable activities.

Technology

Whilst audiences were mandated to stay at home, the Rio reached out to them by implementing and then upgrading an online streaming service called The Rio Player. We will continue this service during normal conditions as it provides an extra source of income whilst providing another way to reach and serve our members and community. The next step is to upgrade the box office system and website. We have been working with a number of providers to progress with this for implementation in the next year.

Sustainability

The engagement with our new Sustainability Sub-Committee has been very encouraging. Staff and trustees have showed great passion in making a real difference in all areas from the materials we use, the suppliers we deal with and how we generate our electricity. We believe this will lead to significant progress within the next year including powering our new lower-energy projector from solar panels.

Community Outreach

Andrew Woodyatt has taken on a new, dedicated role for community and educational work at the Rio. Andrew continues to build upon the success of The Rio Tape/Slide Archive, by working with Hackney Museum and local schools on a number of projects. Tours covering our architectural history and Jewish history have proved successful. The Rio continues to be a key venue for community and educational festivals such as Fringe! and Into Film. A number of special events involving LGBTQ+ artists and collectives have been popular during times the Rio has been open to audiences.

FINANCIAL REVIEW

Financial position

The figures to March 2021 cover an exceptional period and are not indicative of a usual year of trading. Income from member donations, grants from supporting organisations, furlough payments, and a substantial insurance pay-out have provided key sources of income this year. In addition, steps have been taken to diversify income to improve resilience. These include new sources of revenue from online streaming, book and merchandise sales, advertising, providing services to other cinemas as well as maintaining regular income from private events and hires. The income from collaborations with other cinemas is being hypothecated to raise staff salaries to the London Living Wage in stages with wage increases for all staff implemented in September. The box office from big films during the periods between lockdowns were encouraging as they show audiences are very eager to return when conditions are safe.

DCMS Culture Recovery Fund

During the multiple lockdown periods of the on-going Covid pandemic, cinemas have had to comply with a series of new restrictions often with little notice. Venues in the arts sector have had to either close or operate at significantly reduced capacity, thereby incurring losses. On 5 July 2020, the then Secretary of State for the Department for Digital, Culture, Media and Sport (DCMS) announced a £1.57 billion Culture Recovery Fund rescue package for cultural organisations to help the sector survive, and when possible, reopen. The Rio Cinema successfully applied during all three rounds of the Culture Recovery Fund providing us with enough funds to retain all staff, invest in necessary equipment upgrades and cover losses for reduced capacity and closure.

Reserves policy

The trustees deem it prudent to hold three months running costs in current assets. With the support of the DCMS Culture Recovery Fund, we are in a position of maintaining full reserves as of 15 December 2021.

Page 2

THE RIO CENTRE (DALSTON) LIMITED

REPORT OF THE TRUSTEES

for the Year Ended 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document - a deed of trust - and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The charity owns a subsidiary limited company that is used to provide services (consultancy, programming, accounting, marketing) to other independent cinemas. This allows us to support our community of fellow independent cinemas in London whilst generating additional income to subsidise the operation and improvement of the Rio Cinema.

During the financial year 2020 to 2021, the members called for and voted in a change of trustees holding governance positions to better cope with the challenges of the pandemic. Full details of this change of governance were provided in last year's trustees' report.

Key management remuneration

The charity carries out an annual pay review by the Executive Director and Executive Committee, to ensure that our pay levels are fair, competitive and an effective use of charitable funds. The Rio has an agreement with the trade union BECTU, with whom it negotiates yearly on pay, hours and holiday in respect of certain employees. The Rio aspires to become Living Wage employer.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

01409066 (England and Wales)

Registered Charity number

277415

Registered office

107 Kingsland High Street London E8 2PB

Trustees

A Brooke (resigned 4.7.20) C Casciani (resigned 13.5.20) M Reinink (resigned 4.7.20) N Ransley (resigned 4.7.20) G Binette Deputy Chair (appointed 4.7.20) F Johnston (appointed 4.7.20) R S Ruprai Chair (appointed 4.7.20) A Clark Treasurer (appointed 4.7.20) A Andrews (appointed 9.8.20) T Andrews (appointed 9.8.20) C Bolam (appointed 15.4.20) (resigned 4.7.20) S Boavida (appointed 15.4.20) (resigned 4.7.20) P Broughton (appointed 13.5.20) (resigned 4.7.20) S Chorley (appointed 9.8.20) R Kirwan (appointed 9.8.20) S Robertson (appointed 9.8.20)

Company Secretary

P Lyons

Auditors

Brindley Millen Ltd Chartered Accountants and Statutory Auditors 167 Turners Hill Cheshunt Hertfordshire EN8 9BH

Page 3

THE RIO CENTRE (DALSTON) LIMITED

REPORT OF THE TRUSTEES

for the Year Ended 31 March 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Solicitors

Bristows LLP (until July 2020) 100 Victoria Embankment London EC4Y 0DH

Dechert LLP (from July 2020) 160 Queen Victoria Street London EC4V 4QQ

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

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 period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

In so far as the trustees are aware:

AUDITORS

The auditors, Brindley Millen Ltd, were re-appointed at the Annual General Meeting held on Sunday 3rd November 2019.

Jan 7, 2022 Approved by order of the board of trustees on ............................................. and signed on its behalf by:

Anna Clark

..............................................................................Anna Clark (Jan 7, 2022 22:26 GMT)

A Clark - Trustee

Page 4

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE RIO CENTRE (DALSTON) LIMITED

Opinion

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

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE RIO CENTRE (DALSTON) LIMITED

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant are those covered by the Statement of Recommended Practice for Charities (SORP 2019) and the Charities Act 2011. We assessed the risk of material misstatement in respect of fraud by making enquiries of management and trustees and by testing the implementation of accounting controls in place.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above by making enquiries with key personnel and reviewing relevant documentation such as minutes of Trustee meetings and correspondence with regulatory bodies. We considered the risk of fraud through management override by incorporation testing of journal entries and reviewing any requirements to meet performance targets. We also considered, and tested for, the possibility of unauthorised payments to related parties.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

mwbrindley

mwbrindley (Jan 21, 2022 16:38 GMT)

Maurice Brindley BSc FCA (Senior Statutory Auditor) for and on behalf of Brindley Millen Ltd Chartered Accountants and Statutory Auditors 167 Turners Hill Cheshunt Hertfordshire EN8 9BH Jan 21, 2022 Date: .............................................

Page 6

THE RIO CENTRE (DALSTON) LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the Year Ended 31 March 2021

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
182,460
Charitable activities
4
Cinema
156,667
Investment income
3
35
Other income
214,615
Total
553,777
EXPENDITURE ON
Raising funds
5
81,846
Charitable activities
6
Cinema
497,153
Total
578,999
NET INCOME/(EXPENDITURE)
(25,222)
RECONCILIATION OF FUNDS
Total funds brought forward
122,857
TOTAL FUNDS CARRIED FORWARD
97,635		 Restricted
funds
£
-
-
-
-
-
-
18,365
18,365
(18,365)
245,541
227,176		 31.3.21
31.3.20
Total
Total
funds
funds
£
£
182,460
69,473
156,667
897,530
35
24
214,615
4,511
553,777
971,538
81,846
343,906
515,518
622,213
597,364
966,119
(43,587)
5,419
368,398
362,979
324,811
368,398		 31.3.21
31.3.20
Total
Total
funds
funds
£
£
182,460
69,473
156,667
897,530
35
24
214,615
4,511
553,777
971,538
81,846
343,906
515,518
622,213
597,364
966,119
(43,587)
5,419
368,398
362,979
324,811
368,398
971,538
343,906
622,213
966,119
5,419
362,979
368,398

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 7

THE RIO CENTRE (DALSTON) LIMITED (REGISTERED NUMBER: 01409066)

BALANCE SHEET

31 March 2021

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
12
117,893
CURRENT ASSETS
Stocks
13
1,835
Debtors
14
9,453
Cash at bank and in hand
126,692
137,980
CREDITORS
Amounts falling due within one year
15
(93,149)
NET CURRENT ASSETS
44,831
TOTAL ASSETS LESS CURRENT LIABILITIES
162,724
CREDITORS
Amounts falling due after more than one year
16
(65,089)
NET ASSETS
97,635
FUNDS
18
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
227,176
-
-
-
-
-
-
227,176
-
227,176		 31.3.21
Total
funds
£
345,069
1,835
9,453
126,692
137,980
(93,149)
44,831
389,900
(65,089)
324,811
97,635
227,176
324,811		 31.3.20
Total
funds
£
378,220
11,025
42,920
93,485
147,430
(128,306)
19,124
397,344
(28,946)
368,398
122,857
245,541
368,398

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

Jan 7, 2022 The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

Anna Clark

Anna Clark (Jan 7, 2022 22:26 GMT)

.............................................

A Clark - Trustee

The notes form part of these financial statements

Page 8

THE RIO CENTRE (DALSTON) LIMITED

CASH FLOW STATEMENT

for the Year Ended 31 March 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Net cash provided by financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 31.3.21
£
9,549
(1,303)
8,246
(16,321)
35
(16,286)
50,000
(8,753)
41,247
33,207
93,485
126,692		 31.3.20
£
22,115
(2,356)
19,759
(20,430)
24
(20,406)
20,000
(17,083)
2,917
2,270
91,215
93,485

The notes form part of these financial statements

Page 9

THE RIO CENTRE (DALSTON) LIMITED

NOTES TO THE CASH FLOW STATEMENT for the Year Ended 31 March 2021

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
31.3.21 31.3.20
£ £
Net (expenditure)/income for the reporting period (as per the Statement of
Financial Activities) (43,587) 5,419
Adjustments for:
Depreciation charges 49,471 49,468
Interest received (35) (24)
Interest paid 1,303 2,356
Decrease in stocks 9,190 3,633
Decrease/(increase) in debtors 33,470 (13,570)
Decrease in creditors (40,263) (25,167)
Net cash provided by operations 9,549 22,115
  1. ANALYSIS OF CHANGES IN NET FUNDS
At 1.4.20 Cash flow At 31.3.21
£ £ £
Net cash
Cash at bank and in hand 93,485 33,207 126,692
93,485 33,207 126,692
Debt
Debts falling due within 1 year (13,400) (5,106) (18,506)
Debts falling due after 1 year (28,946) (36,143) (65,089)
(42,346) (41,249) (83,595)
Total 51,139 (8,042) 43,097

The notes form part of these financial statements

Page 10

THE RIO CENTRE (DALSTON) LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 March 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements and assessment of going concern

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

The financial statements are presented in sterling (£).

Critical accounting judgements and key sources of estimation uncertainty

In preparing financial statements it is necessary to make certain judgements, estimated and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have most significant effect on amounts recognised in the financial statements.

Useful economic life of tangible fixed assets:

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income from Ticket Sales, Bar & Confectionary is recognised on the receipt of the takings. Income from other activities is recognised on the date invoices.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold - at varying rates on cost Fixtures and fittings - 10% on cost

Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is calculated using a first in, first out method.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash, current bank accounts and deposit bank accounts with no withdrawal limitations.

Creditors

Creditors are recognised where then charity has a present obligation resulting from a past event that will 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 are recognised at their settlement amount.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

continued...

Page 11

THE RIO CENTRE (DALSTON) LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021

1. ACCOUNTING POLICIES - continued

Fund accounting

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Going concern

The accounts have been prepared on a going concern basis.

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 settled 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. DONATIONS AND LEGACIES

3.

DONATIONS AND LEGACIES
31.3.21 31.3.20
£ £
Donations 30,756 11,285
Friends of Rio 13,405 32,050
Gift aid 3,580 3,441
Grants 132,994 19,064
Miscellaneous 1,725 3,633
182,460 69,473
Grants received, included in the above, are as follows:
31.3.21 31.3.20
£ £
Architectural Heritage Fund 7,500 -
British Film Institute 66,178 -
Film London 17,794 8,480
London Borough of Hackney 41,522 -
The Energy Saving - 10,584
132,994 19,064
INVESTMENT INCOME
31.3.21 31.3.20
£ £
Deposit account interest 35 24

continued...

Page 12

THE RIO CENTRE (DALSTON) LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021

4. INCOME FROM CHARITABLE ACTIVITIES

Activity
Film ticket sales
Cinema
Bar, confectionery & misc sales
Cinema
Screen advertising
Cinema
Hire
Cinema
School screenings
Cinema
Expired Vouchers
Cinema
5.
RAISING FUNDS
Other trading activities
Purchases
6.
CHARITABLE ACTIVITIES COSTS
Cinema
7.
SUPPORT COSTS
Cinema
8.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets
Hire of plant and machinery		 31.3.21
£
90,802
48,783
4,134
12,531
417
-
156,667
31.3.21
£
81,846
Support
Direct
costs (see
Costs
note 7)
£
£
506,981
8,537
Governance
Finance
costs
£
£
4,732
3,805
31.3.21
£
3,805
49,472
3,377		 31.3.20
£
591,856
209,875
30,108
48,262
6,019
11,410
897,530
31.3.20
£
343,906
Totals
£
515,518
Totals
£
8,537
31.3.20
£
4,566
49,467
3,871

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Key management remuneration

The trustee's consider the Key Management to consist of Executive Director, Assistant General Manager, Venue Manager, Marketing & Development Manager, Programmer, Finance Officer and Technical Manager.

During the year the Key Management received remuneration including gross pay of £140,038 and employer's NI of £12,052 (2020: £160,862 in total) as well as £2,889 in employer's pension contributions (2020: £2,855)

continued...

Page 13

THE RIO CENTRE (DALSTON) LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021

10. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
All Staff
No employees received emoluments in excess of £60,000.
11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
69,473
Charitable activities
Cinema
897,530
Investment income
24
Other income
4,511
Total
971,538
EXPENDITURE ON
Raising funds
343,906
Charitable activities
Cinema
603,849
Total
947,755
NET INCOME/(EXPENDITURE)
23,783
RECONCILIATION OF FUNDS
Total funds brought forward
99,074
TOTAL FUNDS CARRIED FORWARD
122,857		 31.3.21
£
346,271
14,402
8,372
369,045
31.3.21
25
Restricted
funds
£
-
-
-
-
-
-
18,364
18,364
(18,364)
263,905
245,541		 31.3.20
£
363,837
17,864
8,665
390,366
31.3.20
27
Total
funds
£
69,473
897,530
24
4,511
971,538
343,906
622,213
966,119
5,419
362,979
368,398		 31.3.20
£
363,837
17,864
8,665
390,366
31.3.20
27
Total
funds
£
69,473
897,530
24
4,511
971,538
343,906
622,213
966,119
5,419
362,979
368,398
971,538
343,906
622,213
966,119
5,419
362,979
368,398

continued...

Page 14

THE RIO CENTRE (DALSTON) LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021

12. TANGIBLE FIXED ASSETS

COST
At 1 April 2020
Additions
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for year
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 Short
leasehold
£
389,580
-
389,580
193,781
11,400
205,181
184,399
195,799		 Fixtures
and
fittings
Totals
£
£
691,076
1,080,656
16,321
16,321
707,397
1,096,977
508,655
702,436
38,072
49,472
546,727
751,908
160,670
345,069
182,421
378,220		 Fixtures
and
fittings
Totals
£
£
691,076
1,080,656
16,321
16,321
707,397
1,096,977
508,655
702,436
38,072
49,472
546,727
751,908
160,670
345,069
182,421
378,220
702,436
49,472
751,908
345,069
378,220

If leasehold property has not been revalued it would have been included at its historical cost of £9,000.

Leasehold property was valued at open market value on 31 March 2005 by the management committee on the basis of the annual rent due over the remaining period of the lease. On transition to FRS102 in the preparation of the financial statements the deemed cost option was applied in respect of freehold property.

The Net Book Value of the assets are subject to an Impairment Review each year and written down if impairment has occurred.

The leasehold is depreciated at the rate of the annual rent. The lease ends in 2037.

Plant & Equipment items are initially included at cost and then depreciated as stated. The carrying values are reviewed at the year end for impairment if circumstances indicate that the fully carrying value may not be recoverable.

13. STOCKS

13. STOCKS
31.3.21 31.3.20
£ £
Confectionery 1,835 11,025
14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.21 31.3.20
£ £
Trade debtors 1,827 22,606
Sundry debtors 3,102 9,001
Prepayments 4,524 11,313
9,453 42,920

Page 15

continued...

THE RIO CENTRE (DALSTON) LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 March 2021

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.21 31.3.20
£ £
Bank loans and overdrafts (see note 17) 18,506 13,400
Trade creditors 28,864 63,992
Social security and other taxes 7,698 12,634
VAT 25,740 32,393
Other creditors 8,536 5,887
Accrued expenses 3,805 -
93,149 128,306
16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.3.21 31.3.20
£ £
Bank loans (see note 17) 65,089 28,946
17. LOANS
An analysis of the maturity of loans is given below:
31.3.21 31.3.20
£ £
Amounts falling due within one year on demand:
Loans 18,506 13,400
Amounts falling between one and two years:
Bank loans - 1-2 years 18,506 7,857
Amounts falling due between two and five years:
Bank loans - 2-5 years 21,195 11,756
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instal 25,388 9,333
The Charities' loans are unsecured and have principal terms as follows:
Loan of £20,000 repayable over 10 years from October 2019 at nil interest
Loan of £25,000 repayable over 5 years for 2018 with interest at 5.71% above bank rate.
Bounce Back Loan of £50,000 repayable (after a 12 month repayment holiday) over 6 years from September 2020 with
interest at 2.5% p.a.

Loan of £35,000 repayable over 3 years from 2017 with interest at an average of 5.5% p.a. has now been fully repaid.

18. MOVEMENT IN FUNDS

Unrestricted funds
General fund
RioGeneration
Restricted funds
Revaluation reserve
RioGeneration fund
TOTAL FUNDS		 Net
movement
At 1.4.20
in funds
£
£
22,996
(12,115)
99,861
(13,107)
122,857
(25,222)
195,799
(11,400)
49,742
(6,965)
245,541
(18,365)
368,398
(43,587)		 At
31.3.21
£
10,881
86,754
97,635
184,399
42,777
227,176
324,811

Page 16

continued...

THE RIO CENTRE (DALSTON) LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021

18. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
RioGeneration
Restricted funds
Revaluation reserve
RioGeneration fund
TOTAL FUNDS		 Incoming
resources
£
553,777
-
553,777
-
-
-
553,777		 Resources
Movement
expended
in funds
£
£
(565,892)
(12,115)
(13,107)
(13,107)
(578,999)
(25,222)
(11,400)
(11,400)
(6,965)
(6,965)
(18,365)
(18,365)
(597,364)
(43,587)

Comparatives for movement in funds

Net
movement
At 1.4.19
in funds
£
£
Unrestricted funds
General fund
(13,590)
36,887
RioGeneration
112,664
(13,104)
99,074
23,783
Restricted funds
Revaluation reserve
207,199
(11,400)
RioGeneration fund
56,706
(6,964)
263,905
(18,364)
TOTAL FUNDS
362,979
5,419
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
971,538
RioGeneration
-
971,538
Restricted funds
Revaluation reserve
-
RioGeneration fund
-
-
TOTAL FUNDS
971,538		 Transfers
between
At
funds
31.3.20
£
£
(301)
22,996
301
99,861
-
122,857
-
195,799
-
49,742
-
245,541
-
368,398
Resources
Movement
expended
in funds
£
£
(934,651)
36,887
(13,104)
(13,104)
(947,755)
23,783
(11,400)
(11,400)
(6,964)
(6,964)
(18,364)
(18,364)
(966,119)
5,419

continued...

Page 17

THE RIO CENTRE (DALSTON) LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021

18. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
RioGeneration
Restricted funds
Revaluation reserve
RioGeneration fund
TOTAL FUNDS		 Net
movement
At 1.4.19
in funds
£
£
(13,590)
24,772
112,664
(26,211)
99,074
(1,439)
207,199
(22,800)
56,706
(13,929)
263,905
(36,729)
362,979
(38,168)		 Transfers
between
funds
£
(301)
301
-
-
-
-
-		 At
31.3.21
£
10,881
86,754
97,635
184,399
42,777
227,176
324,811

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 1,525,315 (1,500,543 ) 24,772
RioGeneration - (26,211) (26,211)
1,525,315 (1,526,754 ) (1,439)
Restricted funds
Revaluation reserve - (22,800) (22,800)
RioGeneration fund - (13,929) (13,929)
- (36,729) (36,729)
TOTAL FUNDS 1,525,315 (1,563,483 ) (38,168)

RioGeneration funds represent monies raised for redevelopment and the building of the second screen.

19. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2021.

20. GUARANTEE STATUS

The company is limited by guarantee, which means that every member undertakes to contribute to the assets of the company in the event of a winding up, including any member up to one year after ceasing to be a member, such amounts as may be required not exceeding one pound.

Page 18