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2021-03-31-accounts

1

Battersea Arts Centre

Annual Report and Financial Statements 31 March 2021

Company Limited by Guarantee Registration Number 01569115 (England and Wales) Charity Registration Number 282857

Contents

Reports

Reference and administrative information 1
Chair’s review of 2020/21 3
Artistic Director: Looking ahead 4
Trustees’ report 5
Independent auditor’s report on the financial statements 22
Financial statements
Consolidated statement of financial activities 27
Comparative consolidated statement of financial activities 28
Balance sheet 29
Consolidated statement of cash flows 30
Principal accounting policies 31
Notes to the financial statements 35

Battersea Arts Centre

Reference and administrative information

Trustees David Bryan (Chair BAC Board of Management)
Christopher Cabot
Cllr. Kim Caddy
Rachel Coldicutt
Marsha De Cordova
Liz Fosbury (Chair Finance Group)
Patrick Harrison (Chair Enterprises Board)
Henrietta Imoreh
Sunita Pandya
Justin Shinebourne
Bruce Thompson
Susie Thornberry
Chief Executive Officer Tarek Iskander
Company secretary Rebecca Holt
Charity registration number 282857
Company registration number 01569115
Registered address Battersea Arts Centre
Lavender Hill
London
SW11 5TN
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers Lloyds Bank
25 Gresham Street,
London
EC2V 7HN

Battersea Arts Centre 1

Reference and administrative information

Solicitors Osborne Clarke One London Wall Barbican London EC2Y 5EB

Battersea Arts Centre 2

Chair’s and Artistic Director & CEO’s review of 20/21

Chair’s Review

It is of course impossible to look back on 20/21 without focusing on the severe impact of Covid19. Like organisations across the country and beyond, the pandemic disrupted Battersea Arts Centre’s (‘BAC’) activities and finances significantly. In response, the organisation found new and entrepreneurial approaches to serving its communities and generating income. As a result, BAC finishes the year in a healthy financial position and with much to celebrate in terms of achievements, including:

Across the UK, BAC continued to deliver sector-leading work such as:

And so much more, which you can read about in this report.

There is still much for us to achieve – including ensuring our workforce and programme is truly representative of the community that we’re here to serve; and further adaptations to the old Town Hall building to make it fully fit for the breadth of beneficiaries who come through its doors.

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Chair’s and Artistic Director & CEO’s review of 20/21

Chair’s Review (continued)

I would like to express my sincere thanks to all the trustees and staff of Battersea Arts Centre for their hard work and commitment over the last 12 months. Renewed thanks go to all our funders and supports, with particular thanks to Arts Council England for their ongoing support of us as a National Portfolio Organisation and to the Department for Digital, Culture, Media & Sport for their support via the Culture Recovery Fund.

David Bryan, Chair

Artistic Director & CEO’s Review

BAC has faced a number of moments of ‘existential challenge’ in its rich history, not least the Grand Hall fire of 2015 that destroyed much of its iconic building.

Like every cultural organisation in the country, the pandemic has been an incredibly difficult time for BAC. The numbers in this report tell the story of these brutal collective challenges. Such a sudden and dramatic disruption to our normal ways of working, coupled with a precipitous drop in income… of course these had a very real and painful effect on the organisation.

But within those numbers there is also a remarkable story of resilience, fleet-footedness and creative dynamism. BAC has always been a nimble and can-do organisation and these qualities, (embodied by our dedicated and capable staff team), mean we can look back at this period with pride. BAC only exists to serve its many communities: the young people, audiences, local residents and artists that are at the core of our work. And during the pandemic BAC never missed a beat, and found ways to be a vital resource when those communities needed us most.

We never stopped continuing to programme new work, pivoting easily into digital activity, including seven new pieces for the BBC. Our young people programmes, like our Beatbox Academy and the Agency also moved online, providing invaluable wellbeing support to those participants. With local partners, we designed, packaged and circulated over 35,000 play-kits to local children starved of creative stimulation while in lockdown. We helped fundraise over £35,000 to support freelancers who had seen their livelihoods badly damaged by the pandemic.

Further afield, BAC continued to run our national programmes like the Co-Creating Change Network and our Moving Roots project, bringing creative activity to communities with historically low cultural engagement. We converted all our activities to a Pay What You Can Model smashing down yet one more barrier to access to the Arts. And our ever adaptive Enterprises business successfully pivoted to filming and rehearsals to keep the lights on for the rest of the organisation. And we even played our bit in Covid recovery, converting our building to Wandsworth’s main vaccination site, getting 75,000 jabs into local arms.

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Chair’s and Artistic Director & CEO’s review of 20/21

Artistic Director & CEO’s Review (continued)

So, looking back, this feels like a true success story. It was never easy, and very difficult decisions were needed to maintain the organisation’s long-term health, including streamlining our activities, a staffing restructure and extensive use of the Job Retention Scheme. But thanks to these decisive actions, and the superb performance of our fundraising, marketing and Enterprises functions, we can look forward to the future with real confidence and ambition.

At moments of crisis, an organisation gets a chance to live its values. And with our staff team’s never-ending commitment to genuine access and inclusion in the arts, to generosity and relevance in our communities, to connecting with partners nationally and internationally, and to fulfilling our mission as a ‘home for radical artistic ideas’ – we have had the chance to embody the very best of BAC and its rich and glorious history.

Tarek Iskander, Artistic Director & CEO

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Trustees’ report 31 March 2021

The Trustees, who are also referred to as the Board of Management and are the directors for the purposes of company law, present their report together with the financial statements of Battersea Arts Centre for the year ended 31 March 2021. The report has been prepared in accordance with Part 8 of the Charities Act 2011, and constitutes a directors' report for the purpose of company legislation.

The financial statements have been prepared in accordance with the accounting policies set out on pages 31 to 34 of the attached financial statements and comply with the charitable company's memorandum and articles of association, applicable laws, the Charities Act 2011 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 United Kingdom and Republic of Ireland (FRS 102).

OBJECTIVES AND ACTIVITIES

About Battersea Arts Centre

Battersea Arts Centre is a home for radical artistic ideas. We believe in the power of performance and collective imagination to spark positive change.

We host welcoming and inclusive spaces where communities, artists and audiences can connect and be creative, and we give people the resources to develop artistic ideas that are bold and unconventional.

All shows at Battersea Arts Centre have been available on a Pay What You Can basis in 2021, as part of our ongoing commitment to finding new ways to break down barriers to engagement.

We thank all our funders and supporters. Special note of thanks goes to Arts Council England, who support us as a National Portfolio Organisation and who have provided additional support in 2021 via the Culture Recovery Fund, which distributed funds from the Department of Digital, Culture, Media and Sport. A special note of thanks also goes to our landlord Wandsworth Borough Council.

Battersea Arts Centre’s Purpose

Vision: BAC is a home for radical artistic ideas. We believe in the power of performance and collective imagination to spark positive change: Not for you, not for me, but for us.

Mission

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Trustees’ report 31 March 2021

OBJECTIVES AND ACTIVITIES (continued)

Principles

Our main aims in achieving this purpose are listed below, along with the strategies that were adopted to achieve them:

Developing and staging innovative and engaging theatre

Supporting people’s creativity, confidence and developing the skills and capability to make their ideas a reality

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Trustees’ report 31 March 2021

OBJECTIVES AND ACTIVITIES (continued)

Principles (continued)

Extending the reach and impact of our work to varied audiences and beneficiaries

Create a welcoming environment in which the local community and diverse visitors

can come together

STRATEGIC REVIEW OF THE YEAR

Battersea Arts Centre’s Cultural and Creative Programme

Despite the challenges presented by the Coronavirus pandemic, Battersea Arts Centre (BAC) had a significant year in relation to its charitable objective to advance and promote education of the arts and heritage for the benefit of the public locally, nationally and internationally.

Whilst opportunities for live programming were severely limited in 20/21 due to the pandemic – we delivered digital and hybrid performances; sought to support artists and freelancers; and carried out activities with our local community.

Live Programme

We seized on opportunities to provide cultural content, both in live formats and digital, including:

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Trustees’ report 31 March 2021

STRATEGIC REVIEW OF THE YEAR (continued)

Live Programme (continued)

BAC also prepared for the Spring 2021 season, which included a strong digital offer such as The Motherhood Project led by Paula Varjack and a digital version of Hofesh Shecter’s Political Mother Unplugged. Preparations were undertaken for live shows in different formats under the new regulations, including a week of socially-distanced live shows in the Grand Hall by Lucy McCormick and classical concerts by Nicola Benedetti in summer 2021. We also worked towards launching the Pay What You Can ticketing scheme as part of a commitment to welcoming back audiences in 2021. Our commitment to be a Relaxed Venue remained a critical part of the organisation’s aim to ensure the building and performances are as accessible as possible.

Artist Support

BAC used the period of the pandemic to review how we support artists and as a result remodelled its creative development to improve the support offered through increasing fees, commissions, access to space and other resources.

We also offered creative surgeries to support artists during the uncertainties of the pandemic, providing 121 meetings with members of BAC’s producing team, where artists were offered practical support on funding applications, budgeting, risk assessments, accessibility and rethinking work for a digital context.

As part of BAC’s commitment to supporting diverse artists and platforming new voices, we also supported the first Migrants in Theatre Town Hall together with other organisations across the UK.

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Trustees’ report 31 March 2021

STRATEGIC REVIEW OF THE YEAR (continued)

Community Programmes

BAC also continued delivering activities with the local community – responding to the new needs presented by the pandemic. These included:

National Programmes

BAC also continued to be a sector-leader by delivering national projects with partners across the UK. These included:

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Trustees’ report 31 March 2021

STRATEGIC REVIEW OF THE YEAR (continued)

National Programmes (continued)

Risk Management

Battersea Arts Centre’s Risk Register is one of the key documents in our organisational business plan. This is an essential tool for the senior management team – made up of BAC’s Team Heads and Shapers, who meet fortnightly to strategically manage the organisation, oversee organisational finances, assess risks and measure progress against our objectives.

This Risk Register captures the biggest risks facing the organisation across a variety of areas. On the basis that all the risks captured in this Risk Register are business critical, it then uses a traffic-light system of Red, Amber, Green to assess the likelihood of each risk becoming realised. Each risk has a series of mitigating actions, and a senior person within the team allocated to it who is responsible for carrying out these actions and monitoring that risk. This risk register goes to Battersea Arts Centre’s Board of Management at quarterly Board meetings.

In addition, Trustees oversee the risk management strategy that comprises:

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Trustees’ report 31 March 2021

STRATEGIC REVIEW OF THE YEAR (continued)

Risk Management (continued)

Lower impact, project specific risks are monitored by Project Managers and Shapers through their Project Objectives and Risks document, which is reviewed and updated quarterly.

The main risks being managed concern the ongoing financial health of the organisation and programme risks, the key areas are:

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Trustees’ report 31 March 2021

FINANCIAL REVIEW

The Charity’s total net expenditure, including the results of its trading subsidiary, BAC Enterprises Limited, for the year ended 31 March 2021 amounted to £1.1m (2020 – net income of (£0.7m)). When all commercial trading ceased and BAC closed to the public in March 2020, the Board of Trustees moved quickly to establish revised agile governance arrangements to respond to what was to become unpredictable, fast moving and extremely challenging circumstances, the most significant of which was to be how long the building would have to remain closed.

Responsibility for managing cash flow, risk analysis and management, and continuous assessment of the financial implications of closure and the potential impact on reserves, was delegated to the Finance and Governance Committee by the Trustees, who of course continued to discharge their statutory responsibilities as ultimate decision makers. The immediate priority was to take action to reduce costs and to access Government and other financial support, primarily from the Coronavirus Job Retention Scheme.

The Arts Council England also provided an Emergency COVID-19 grant. Without this action, unrestricted reserves, which at 1 April 2020 stood at £226,722, would have quickly been extinguished and the Charity would have been at risk of closure.

In July 2020, BAC was successful in bidding for funding from Round One of the Cultural Recovery Fund (CRF) (a Department for Culture, Media and Sport fund administered by Arts Council England) which provided financial sustainability until 30 September 2020. Sustainability funding was also received from the Esmee Fairbairn Foundation. During the financial year BAC received a total of £2.24m which can be classified as “COVID-19 support funding”. In round terms this offset income from arts activities and the contribution from the trading company which had been forgone.

Funding allowed BAC to reinflate its unrestricted reserves above board approved levels of £735,000 in unrestricted reserves at 31 March 2021. The objective of maintaining unrestricted reserves had been achieved. BAC’s unrestricted reserves of £815,000 at 31 March 2021 were already in the process of being rebuilt as the Charity was in the process of recovery from the 2015 fire and subsequent capital works, with the full estate in its early stages of being fully open. Fundraising and significant cost reduction have allowed the Charity to reinflate its unrestricted reserves to a safe and Board approved level.

Income

Total income for the Charity amounted to £5.79m (2020 - £5.73m) which was a £60,000 increase from 2019/20. The Charity’s core activities generated income of £5.01m in 2020/21 (2020 – £5.73m), with the variance of £713,000 from CVJRS support.

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Trustees’ report 31 March 2021

FINANCIAL REVIEW (continued)

Income (continued)

Grants and donations

Grants and donations represented 76% (2020 – 62.3%) of the Charity’s total income in 2020/21. Of the total of £4.37 million (2020 – £3.57 million) generated in the year, funding received from ACE NPO grant of £706,665 (2020 – £689,000) remains Battersea Arts Centre’s single main source of non-emergency voluntary income – 12% (2020 – 12%) of total noncapital voluntary income.

Wandsworth Borough Council continues to provide Battersea’s Old Town Hall as a home on a peppercorn rent until 2028, worth an additional £150,000 of support in kind. We have also been successful in raising funds from many other sources to fund the Charity’s charitable activities and theatre projects.

Earned income from theatre and arts centre activities

Box Office and fee income declined significantly due to the building closure. Total earned income amounted to £94,000 (2020 - £97,000) of which £34,000 was generated through admission fees.

Also important is our Service Level Agreement with Wandsworth Borough Council worth £60,000 (2020 – £60,000) which funds specific aspects of our work in the local community. The Wandsworth Borough Council SLA ends on 31 March 2022, with replacement Project based funds being developed which BAC will have eligibility to apply for.

Earned income from other activities

BAC Enterprises Limited, Battersea Arts Centre’s trading subsidiary generated a turnover of £549,000 (2020 – £1,118,000). An overall profit of £85,000 (2020 – profit of £277,000) was achieved which reflects the organisations agility and responsiveness, with 49% of turnover compared with 2019/20 the company achieved 74% of prior year net contribution.

Insurance income

We set up a designated capital fund in 2014/15 to manage the income and expenditure which resulted from the fire damage on 13 March 2015. The Charity recognises the income from insurers within this fund on a receivables basis, No further insurance monies were received in 2020/21. With no further monies expected or outstanding.

Expenditure

The Charity’s total expenditure was £4.68 million (2020 – £6.40 million) which was a decrease of £1.72 million on 2019/20.

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Trustees’ report 31 March 2021

FINANCIAL REVIEW (continued)

Expenditure (continued)

£1.06 million of the total costs arose from expenditure within the Charity’s designated and restricted capital funds, being depreciation and other building development costs. £4.26 million of total expenditure related to the Charity’s core activities (2020 – £6.4million).

Total charitable expenditure on the operation of the theatre and arts centre was £4.26million (2020 – £5.43m) reflecting savings made within the organisation. Within the costs of charitable activities, support costs increased to £3.31million (2019 – £2.67million); £1.1million related to the depreciation charge in 2020/21 following the opening of the renovated building.

Balance sheet position at 31 March 2021

The Charity increased its balance on unrestricted general funds to £815,000 (2020 – £226,722) and reduced its designated capital funds to £20,261,554 (2020 - £20,977,854) through depreciation of the building assets. The latter was designated specifically for spend on restoring our building and operations after the fire, now represented by the carrying value of fixed assets and a building reserve fund of £200,000 at 31 March 2021. Restricted funds increased to £1,235,668 (2020 – £nil). Cash holdings increased to £2,595,195 (2020 – £662,000) reflecting the increase to reserves.

Reserves policy

Battersea Arts Centre’s reserves policy reflects the organisation’s ongoing wish to strike a balance between three financial objectives. Firstly, the need for financial stability, secondly, fulfilling the contracted agreement to invest income from revenue funders in achieving the charitable aims of the organisation, and thirdly, to take advantage of opportunities to invest in Battersea Arts Centre’s creative mission that may arise but which are unlikely to be able to be met solely out of operating income.

The Trustees reviewed the policy in May 2020 in line with the operational guidance CC19 (Charities and Reserves) issued by the Charity Commission, and confirmed the following objectives:

  1. To establish a General Fund reserve to maintain financial stability on an on-going basis in the event of a shortfall in income or unexpected operating expenditure;

  2. To establish a designated Programme Fund to support the investment of Battersea Arts Centre sponsored productions; and

  3. To establish a Building and Equipment Fund to ensure that sufficient money is set aside so that Battersea Arts Centre is able to meet any major maintenance costs not likely to be able to be met out of income if and when they arise.

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Trustees’ report 31 March 2021

FINANCIAL REVIEW (continued)

Reserves policy (continued)

The Trustee’s aim was to build up and maintain a minimal level of unrestricted general funds following Battersea Arts Centre’s capital redevelopment period and the period of recovery after the fire, on consultation the aim is to hold a balance of 8 weeks’ income (£750,000) as unrestricted general reserves, with an additional £200,000 in designated capital reserves for unforeseen post capital work expenditure as warranties become end of life. The balance of these funds at 31 March 2021 was £815,000 (2020 - £227,700).

PLANS FOR THE FUTURE

Pre-COVID, BAC was in the final phase of a six-year business plan of BAC’s recovery postfire. The fully rebuilt building had been completed in 18/19, and 19/20 represented the first fullyear of operation. Central to this business plan was the growth of the commercial arm of the business – primarily through events and catering activity – in order to generate a greater level of earned income that could be reinvested back into the organisation’s charitable activities.

COVID-19 has impacted this trajectory, however as outlined above, we assess that we are in a strong position due to the organisational changes and fundraising carried out in 20/21. We have minimal impact for the remainder of 21/22 and have ambitions have been set as below for 22/23 onwards:

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Trustees’ report 31 March 2021

PLANS FOR THE FUTURE (continued)

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

Battersea Arts Centre (BAC) is a company limited by guarantee and a registered Charity. It is governed by its Memorandum and Articles of Association dated 19 June 1981, amended by special resolutions dated 30 November 1981, 19 July 1982 and revised 28 May 2004 to allow the Charity to engage with wider art forms, to permit its activities to benefit the public beyond the UK, and to allow for current governance arrangements; and 25 February 2009 to permit the Directors to deal with conflicts of interest, to modernise communications methods and to increase the maximum number of Trustees from 15 to 20 in recognition of the additional expertise required to fulfil the Charity’s new lease responsibilities. New Articles of Association were approved by the Board on 12 July 2018 which updated the Articles to reflect the organisation’s development as a civic space. The terms of office for Trustees was also altered from five years to three years. The members of the Company are the members of the Board of Management and also the Trustees of the Charity. Each agrees to contribute £1 in the event of the Charity winding up.

Organisation

The business of the Charity is supervised by the Board of Trustees, which meets four times each year, or more frequently if required. Battersea Arts Centre’s Board has four formal subcommittees, each with clear terms of reference:

The Creative Partners Sounding Board continued as an informal sub-committee of the main Board. This consists of a focus group of ten artists appointed through application to represent the wider artists’ community and support the producing team and Artistic Director with issues relating to the organisation’s relationship with artists.

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Trustees’ report 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Organisation (continued)

The Trustees review and approve the Charity’s main policies and strategic objectives, and delegate the day to day management and operation of the Charity to its salaried staff. Decisions on remuneration for key management personnel are taken by the Finance Group, based on advice from the Executive Board and taking sector norms into account. The Artistic Director & Chief Executive, Tarek Iskander, is a salaried member of staff appointed by the Trustees. The organisation is managed by the Directors which consist of the Artistic Director & CEO, Executive Director & Deputy CEO (Rebecca Holt), Director of Creativity & Social Change (Liz Moreton) and Director of Finance (Dave Jenkins).

Recruitment and appointment of new Trustees

As set out in the Articles of Association, the Chair of the Board of Management is elected by its members and presides as Chair at General Meetings of the Charity. Under the new articles of association there are a maximum of 16 Trustees elected to the Board of Management at any time, with an ambition to hold this number at around 12. Trustees appointed in this way are elected as members of the Company at the subsequent annual general meeting. Trustees are obliged to resign every three years but are eligible for re-election if willing, up to a maximum of three terms, but ideally no more than two. Representatives of Arts Council England receive copies of Board papers and attend one meeting annually but do not serve as Trustees. When considering appointing new Trustees, the Board has regard both to the organisation’s need for any specialist skills and to the diversity of the Board’s membership.

Induction and training of new Trustees

New Trustees are invited to a welcome briefing by key members of staff. An information pack is sent to all new Trustees, including the Charity’s Memorandum and Articles of Association, recent audited and management accounts, the business plan, minutes of recent Board meetings, a full list of the members of the Board and its subcommittees, and the Charity Commission’s information on Responsibilities of Trustees.

FUNDRAISING PRACTICES

The Charity aims to achieve best practice in the way in which it communicates with supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. The Charity is registered with the Fundraising Regulator and adheres to the Code of Fundraising Practice. It applies best practice to protect supporters’ data, it never sells or swaps data with other organisations, and ensures that its communication preferences can be changed at any time. The Charity manages its own fundraising activities and also employs the services of professional fundraisers from time to time. The Charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During 20/21, the Charity received no complaints about its fundraising activities.

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Trustees’ report 31 March 2021

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and 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 group and of the income and expenditure of the group 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 group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

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Trustees’ report 31 March 2021

STATEMENT OF TRUSTEES’ RESPONSIBILITIES (continued)

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This report was approved by the Trustees and signed on their behalf by:

Chair of Trustees

Date:

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Acknowledgements 31 March 2021

THANKS

Thank you to all the following trusts and foundations, statutory and corporate funders and individuals for supporting activity in 20/21. In particular we would like to thank the Treasury, the Culture Secretary, the Department for Culture, Media & Sport and Arts Council England for their significant support through the Culture Recovery Fund that enabled us to continue our mission in a year of such challenging circumstances.

Our supporters

Thank you to all our hugely generous individual supporters, Hive Members and Friends who support us every year

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Independent auditor’s report Year to 31 March 2021

Independent auditor’s report to the members of Battersea Arts Centre

Opinion

We have audited the financial statements of Battersea Arts Centre (the ‘charitable parent company’) and its subsidiary company (the ‘group’) for the year ended 31 March 2021 which the comprise the group statement of financial activities, the group and charitable parent company balance sheets, the group statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

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Independent auditor’s report Year to 31 March 2021

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report including the strategic report.

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

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Independent auditor’s report Year to 31 March 2021

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, 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 group’s and the charitable parent 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 group or the charitable parent company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

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Independent auditor’s report Year to 31 March 2021

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

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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Independent auditor’s report Year to 31 March 2021

Use of our report

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

Date: 31 January 2022

Katharine Patel (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Battersea Arts Centre 26

Consolidated statement of financial activities

(including income and expenditure account)

statement of financial activities
come and expenditure account)
Notes		 Un-
restricted
general
£		 Designated
capital
£		 Year to 31 March 2021
Restricted
revenue
£
Total
2021
£
Total
2020
£
1,904,838
4,376,653
3,572,523
60,000
154,245
1,031,212
—
548,543
1,126,240
—
288
2,446
1,964,838
5,079,729
5,732,421
—
713,208
—
1,964,838
5,792,937
5,732,421
—
81,392
166,191
—
342,773
804,392
713,537
4,260,776
5,428,122
—
—
2,255
713,537
4,684,941
6,404,434
1,251,301
1,107,996
(669,013)
(15,633)
—
—
1,235,668
1,107,996
(669,013)
—
21,204,576
21,873,589
1,235,668
22,312,572
21,204,576
Income from:
Grants and donations
2
Charitable activities – Theatre and
arts centre operations and projects
3
Other trading activities
4
Investments
5
Coronavirus Job Retention Scheme
Total income
Expenditure on:
Raising funds
. Raising grants and donations
6
. Other trading activities
4
Charitable activities
. Theatre and arts centre
operations and projects
7
. Post-fire recovery activities
Total expenditure
Net income (expenditure)
Transfers between funds
17
Net movement in funds
19
Balances brought forward at
1 April 2020
Balances carried forward at
31 March 2021		 2,471,815
94,245
548,543
288		 —
—
—
—		 1,904,838
60,000
—
—		 4,376,653
154,245
548,543
288		 3,572,523
1,031,212
1,126,240
2,446
3,114,891
713,208		 —
—		 1,964,838
—		 5,079,729
713,208		 5,732,421
—
3,828,099 — 1,964,838 5,792,937 5,732,421
81,392
342,773
2,608,748
—		 —
—
938,491
—		 —
—
713,537
—		 81,392
342,773
4,260,776
—		 166,191
804,392
5,428,122
2,255
3,032,913 938,491 713,537 4,684,941 6,404,434
795,186
(206,558)		 (938,491)
222,191		 1,251,301
(15,633)		 1,107,996
—		 (669,013)
—
588,628
226,722		 (716,300)
20,977,854		 1,235,668
—		 1,107,996
21,204,576		 (669,013)
21,873,589
815,350 20,261,554 1,235,668 22,312,572 21,204,576

All of the Charity’s activities derived from continuing activities during the above financial year.

The statement of financial activities includes all gains and losses recognised during the year.

Battersea Arts Centre 27

Comparative consolidated statement of financial activities (including income and expenditure account )

me and expenditure account)
Notes
Un-
restricted
general
£		 Designated
capital
£
Restricted
revenue
£		 Year to 31 March 2020
Restricted
capital
£
Total
2020
£
491,955
3,572,523
—
1,031,212
—
1,126,240
—
2,446
491,955
5,732,421
—
166,191
—
804,392
1,153,595
5,428,122
—
2,255
1,153,595
6,401,434
(661,640)
(669,013)
(7,029,336)
—
(7,690,976)
(669,013)
7,690,976
21,873,589
—
21,204,576		 Year to 31 March 2020
Restricted
capital
£
Total
2020
£
491,955
3,572,523
—
1,031,212
—
1,126,240
—
2,446
491,955
5,732,421
—
166,191
—
804,392
1,153,595
5,428,122
—
2,255
1,153,595
6,401,434
(661,640)
(669,013)
(7,029,336)
—
(7,690,976)
(669,013)
7,690,976
21,873,589
—
21,204,576
Income from:
Grants and donations
2
Charitable activities – Theatre
and arts centre operations and
projects
3
Other trading activities
4
Investments
5
Total income
Expenditure on:
Raising funds
. Raising grants and donations
6
. Other trading activities
4
Charitable activities
. Theatre and arts centre
operations and projects
7
. Post-fire recovery activities
24
Total expenditure
Net (expenditure) income
Transfers between funds
Net movement in funds
19
Balances brought forward at
1 April 2019
Balances carried forward at
31 March 2020		 1,408,845
971,212
1,126,240
2,446		 12,801
—
—
—		 1,661,922
60,000
—
—		 491,955
—
—
—		 3,572,523
1,031,212
1,126,240
2,446
3,505,743 12,801 1,721,922 491,955 5,732,421
166,191
804,392
2,552,605
—		 —
—
—
2,255		 —
—
1,721,922
—		 —
—
1,153,595
—		 166,191
804,392
5,428,122
2,255
3,523,662 2,255 1,721,922 1,153,595 6,401,434
(17,919)
—		 10,546
7,029,336		 —
—		 (661,640)
(7,029,336)		 (669,013)
—
(16,694)
244,641		 7,038,657
13,937,972		 —
—		 (7,690,976)
7,690,976		 (669,013)
21,873,589
226,722 20,977,854 — — 21,204,576

All of the Charity’s activities derived from continuing activities during the above financial year.

The statement of financial activities includes all gains and losses recognised during the year.

Battersea Arts Centre 28

Balance sheet 31 March 2021

Notes Group
2021
£		 Charity
2021
£		 Group
2020
£		 Charity
2020
£
Fixed assets
Tangible fixed assets
12
Investments
13
Current assets
Stock
14
Debtors
15
Cash at bank and in hand
Liabilities
Creditors: amounts falling due
within one year
16
Net current assets/(liabilities)
Total net assets
The funds of the Charity:
Restricted funds
17
Designated capital fund
19
Unrestricted general funds
18
Total funds		 20,063,644
—		 20,063,644
2		 21,137,019
—		 21,137,019
2
20,063,644 20,063,646 21,137,019 21,137,021
4,797
570,332
2,595,195		 —
623,130
2,292,227		 8,046
801,537
661,914		 —
661,679
491,100
3,170,324 2,915,357 1,471,497 1,152,779
(921,396) (750,049) (1,403,940) (1,358,913)
2,248,928 2,165,308 67,557 (206,134)
22,312,572 22,228,954 21,204,576 20,930,887
1,235,668
20,261,554
815,350		 1,235,668
20,261,554
731,733		 —
20,977,854
226,722		 —
20,977,854
(46,967)
22,312,572 22,228,954 21,204,576 20,930,887

The financial statements were approved by the board of the Battersea Arts Centre, Company Registration No. 01569115 (England and Wales) and signed on its behalf by:

Chair of Trustees Date:

Battersea Arts Centre 29

Consolidated statement of cash flows Year to 31 March 2021

Notes
2021
£		 2020
£
Cash flows from operating activities:
Net cash provided by operating activities
A
Cash flows from investing activities:
Investment income
Disposals/(Purchases) of property, plant and equipment
Net cash provided by (used in) investing activities
Change in cash and cash equivalents in the year
Reconciliation of net cash flow to movement in net funds:
Cash and cash equivalents at 1 April 2020
Cash and cash equivalents at 31 March 2021
B
1,926,288		 447,097
288
6,705		 2,446
(734,989)
6,993 (732,543)
1,933,281 (285,446)
661,914 947,360

2,595,195		 661,914

Notes to the statement of cash flows for the year to 31 March 2021

A Reconciliation of net income to net cash provided by (used in) operating activities

2021
£		 2020
£
Net income (expenditure) for the reporting period (as per the
statement of financial activities)
Adjustments for:
Depreciation charges (note 12)
Investment income
Capital income (grants, donations and insurance)
Decrease in stocks
Decrease in debtors
Decrease in creditors
Net cashprovided by operating activities		 1,107,995
1,066,669
(288)
—
3,252
231,205
(482,546)		 (669,013)
1,079,839
(2,446)
—
29
92,740
(54,052)
1,926,288 447,097

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents

2021
£
2020
£
Cash at bank and in hand
Total cash and cash equivalents		 2,595,195 661,914
2,595,195 661,914

C Analysis of changes in net debt:

Analysis of changes in net debt:
1 April
2020
£
Cash flows
£		 31 March
2021
£
Cash at bank and in hand
Total		 661,914
1,933,281
2,595,195
661,914
1,933,281
2,595,195

Battersea Arts Centre 30

Principal Accounting Policies Year to 31 March 2021

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 March 2021.

These financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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

The financial statements are presented in sterling and are rounded to the nearest pound.

These financial statements consolidate the results of the Charity and its wholly owned subsidiary BAC Enterprises Ltd on a line by line basis.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the Trustees and management to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

Battersea Arts Centre 31

Principal Accounting Policies Year to 31 March 2021

Assessment of going concern

The Trustees have considered the effect of the ongoing disruption from the pandemic on the going concern position. They believe the Charity will continue to operate for a period of at least 12 months from the date of signing these accounts, due to the strong level of funding already secured, together with grants from a number of major trusts and foundations.

While BAC was closed in 2020/21, the cost base was reduced and BAC was successful in obtaining emergency and other funding, as detailed elsewhere. At the balance sheet date, the Charity held significant cash balances. The Charity also has a significant level of reserves, enough of which are unrestricted and available to absorb short-term deficits, if required during the transition to more normal operating patterns. As detailed earlier, Arts Council England has confirmed NPO funding through until 31 March 2023.

BAC proactively manages cash flow; for much of BAC’s income it is paid in advance or on the day. Much of our operating cost is spread evenly across the year apart from payment for capital projects. The Trustees have considered the charitable company’s business planning in the context of known resources and have reviewed the operating basis of the group’s operations. A formal business plan for the period to March 2022 has been prepared and Draft budgets approved to March 2023, which demonstrate the Charity retaining Unrestricted reserves to target levels at March 2023. These detailed financial forecasts assume that BAC remains open with activity levels increasing as the year progresses and restrictions ease. They have been considered by the Trustees who continue to be satisfied that the charitable company remains a going concern.

Income recognition

Voluntary income comprises all incoming resources from sponsorships, donations and grants. Income from donations and grants, including capital grants, is included in incoming resources when these are receivable, except as follows:

Income from commercial trading activities is recognised on a receivable basis.

Investment income comprises interest receivable on cash balances held on deposit.

Battersea Arts Centre 32

Principal Accounting Policies Year to 31 March 2021

Income recognition (continued)

Income from charitable activities comprises admission fees, fees earned from hire of theatre spaces for performances and rehearsals, income received under Public Authority service agreements in support of performance and participatory activities and commissioning contributions from co-production partners. Income is included in the period in which the relevant activity takes place.

Intangible income, which comprises donated services, is included in income at a valuation which is an estimate of the financial cost borne by the donor where such cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by a third party.

Expenditure recognition

Expenditure is accounted for on an accruals basis and is recognised when there is a legal or constructive obligation to pay.

Costs of raising funds are those costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Expenditure on charitable activities includes expenditure associated with developing and commissioning new work, staging productions, supporting artists and creative producers and participatory activities for young people and adults. It also includes the costs of the programme to develop the building as a 21st Century arts facility within a Victorian town hall. Costs include both direct costs and support costs relating to these activities.

Support costs include central functions and governance costs and have been allocated to activity cost categories on a basis consistent with the use of resources as set out in Note 9. Governance costs comprise those incurred in the governance of the Charity and its assets and are primarily associated with constitutional and statutory requirements.

Operating leases

Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred over the term of the lease.

Tangible fixed assets

Individual fixed assets are capitalised at cost. Tangible fixed assets are depreciated so as to write off the cost, less estimated residual values, of the assets over their expected useful lives at the following rates:

Long leasehold property 4% to 15%
Fixtures and fittings 15% to 25%
Plant and equipment 15% to 33.3%

Assets within work in progress are not depreciated until they are brought into use.

Battersea Arts Centre 33

Principal Accounting Policies Year to 31 March 2021

Stock

This is stated at the lower of cost and net realisable value.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Creditors

Creditors are recognised when the Charity has a present legal or constructive obligation resulting from a past event to make payment to a third party, it is probable that settlement will be required and the amount due to settle the obligation can be measured or estimated reliably.

Fund structure

Funds held by the Charity are either:

 Unrestricted

General funds - these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.

 Designated

Designated funds - these are funds set aside by the Trustees out of unrestricted funds for specific future purposes or projects.

 Restricted Funds

These are funds that 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 Notes 17 to 19.

Pension contributions

Contributions in respect of the Charity’s defined contribution pension scheme are charged to the statement of financial activities when they are payable to the scheme. The Charity’s contributions are restricted to the contributions disclosed in the staff costs note. The Charity has no liability beyond making its contributions and paying across the deductions for the employees’ contributions.

Financial instruments

The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. These are initially recognised at transaction value and subsequently valued at their settlement value.

Battersea Arts Centre 34

Notes to the Financial Statements Year to 31 March 2021

1 Legal status of the Charity

The Charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

2 Grants and donations

Grants
£		 Sponsor-
ships &
donations
£		 In kind
£		 Total
2021
£		 Grants
£
Sponsor-
ships &
donations
£
In kind
£		 Total
2020
£
Unrestricted general:
Arts Council England –
NPO
Arts Council England –
Recovery Grant

Wandsworth Borough
Council rent and charges
in kind (see below)
General activity

Designated capital
Donations
Restricted: project
income
Developing and staging
theatre
Supporting theatre
creators
Participate
Other


Capital income
Heritage Lottery Fund
Total
 706,665
1,490,381
—
—		 —
—
—
124,769		 —
—
150,000
—		 706,665
1,490,381
150,000
124,769		 689,332
—
—
—

—

566,513		 —
150,000
—		 689,332
150,000
566,513
2,197,046 124,769 150,000 2,471,815 689,332
566,513		 150,000 1,405,845
— — — — —
12,801		 — 12,801
—
—
—
1,904,838		 —
—
—
—		 —
—
—
—		 —
—
—
1,904,838		 704,444
80,000
297,892
579,586
—

—

—

—		 —
—
—
—		 704,444
80,000
297,892
579,586
1,904,838 — — 1,904,838 1,661,922
—		 — 1,661,922
— — — — 491,955
—		 — 491,955
— — — — 491,955
—		 — 491,955
4,101,884 124,769 150,000 4,376,653 2,843,209
579,314		 150,000 3,572,523

The Charity is provided with rent free premises by Wandsworth Borough Council. The value placed on this contribution by the Trustees is £150,000 per annum. An equivalent charge is included within premises costs.

Battersea Arts Centre 35

Notes to the Financial Statements Year to 31 March 2021

3 Income from charitable activities – Theatre and arts centre

Income from charitable activities – Theatre and arts centre
2021
£		 2020
£
Unrestricted
Admission fees and programmes
Hire fees
Other income
Restricted
Wandsworth Borough Council – Service Level Agreement
Total		 34,245
—
—		 733,539
11,616
226,057
34,245
60,000		 971,212
60,000
94,245 1,031,212

4 Other trading activities

The wholly-owned trading subsidiary, BAC Enterprises Ltd, which is incorporated in the United Kingdom, pays all its profits to the Charity by Gift Aid. BAC Enterprises Ltd operates the venue hire business, as well as the café-bar and all commercial trading operations carried on at Battersea Arts Centre. The Charity owns the entire issued share capital of 2 shares of £1 each. A summary of the trading results are shown below.

2021
£		 2020
£
Summary of profit and loss account
Turnover
Cost of sales and administrative expenses
Net profit
Amount gifted to Charity
Retained in the subsidiary
Current assets
Creditors: amounts falling due within one year
Total net assets
Aggregate share capital and reserves		 548,543
(463,773)		 1,118,327
(841,321)
84,769
(230,002)		 277,006
—
(145,223) 277,006
301,168
(217,551)		 316,890
(88,041)
83,617 228,849
83,617 228,849
5 Investment income 2021
£		 2020
£
Total:CCLA Investment Management Ltd (interest bearing deposit
account)		 288 2,446

Battersea Arts Centre 36

Notes to the Financial Statements Year to 31 March 2021

6 Costs of raising funds

Costs of raising funds
Staff costs
Other direct costs
Fundraising events
Support costs
Total		 2021
£		 2020
£
63,481
—
—
17,911		 63,176
2,109
—
101,380
81,392 166,665

7 Expenditure on charitable activities

Developing &
staging
theatre
£		 Supporting
theatre
creators
£		 Participation
£
Building
development
£		 Total
2021
£
Producing costs
Theatre operations
Marketing and press
Building development
Production and technical
Artists’ share of box office
Programme development
Governance (note 8)
Support costs (note 8)
Total		 255,761
—
9,723
—

4,516

—

—
43,455
1,122,643		 325,514
—
12,374
—
5,748
—
—
55,306
1,371,752		 193,758
—
7,366
—
3,421
—
—
32,920
816,520		 —
—
—
—
—
—
—
—
—		 775,033
—
29,463
—
13,685
—
—
131,681
3,310,915
1,436,098 1,770,694 1,053,985 — 4,260,776
Developing &
staging
theatre
£		 Supporting
theatre
creators
£		 Participation
£
Building
development
£		 Total
2020
£
Producing costs
Theatre operations
Marketing and press
Building development
Production and technical
Artists’ share of box office
Programme development
Governance (note 8)
Support costs (note 8)
Total		 710,997
305,538
107,598
—

8,945

—

—
65,138
722,668		 381,915
—
101,843
—
122,979
157,333
49,879
46,793
519,129		 571,551
—
4,032
—
(1,181)
—
—
33,021
366,349		 —
—
—
73,756
—
—
—
—
1,079,839		 1,664,463
305,538
213,473
73,756
130,743
157,333
49,879
144,952
2,687,985
1,920,884 1,379,871 973,772 1,153,595 5,428,122

Support and governance costs are analysed further in note 8.

Battersea Arts Centre 37

Notes to the Financial Statements Year to 31 March 2021

8 Analysis of support costs

Analysis of support costs
Charitable
activities
£		 Fundraising
£
Governance
£		 Total
2021
£
Support costs
Support staff costs
Office and equipment
Legal and professional
Premises costs
Depreciation
Total		 1,715,413
224,340
—
259,655
1,066,669		 63,481
8,302
—
9,609
—
50,034

6,543

67,531

7,573

—		 1,828,928
239,185
67,531
276,837
1,066,669
3,266,077 81,392
131,681		 3,479,150
Charitable
activities
£		 Fundraising
£
Governance
£		 Total
2020
£
Support costs
Support staff costs
Office and equipment
Legal and professional
Premises costs
Depreciation
Total		 1,031,966
344,357
—
329,718
981,944		 63,176
21,081
—
20,185
60,114
39,706

13,249

41,530

12,686

37,781		 1,134,848
378,687
41,530
362,589
1,079,839
2,687,985 164,556
144,952		 2,997,493

Support costs are allocated between activities on the basis of the ratio of direct expenditure in each area.

9 Staff costs and Trustees’ remuneration

Group Charity Group Charity
2021 2021 2020 2020
£ £ £ £
Wages and salaries 1,896,216 1,686,962 1,575,952 1,375,115
Social security costs 131,209 115,754 119,338 102,766
Pension costs 29,992 26,211 26,987 21,724
Freelancers 21,512 21,512 13,495 13,495
2,078,929 1,850,439 1,736,772 1,513,100

No employee earned more than £60,000 per annum (2020: none).

The Trustees were not paid or reimbursed for their expenses during the current year or previous year.

Battersea Arts Centre 38

Notes to the Financial Statements Year to 31 March 2021

The average number of full-time equivalent employees (including casual and part-time staff) during the year was as follows:

2021
No.		 2020
No.
Producing
Theatre management and Front of House
Management and administration
Café-bar and Halls bars
Production and technical
Venue hire
Communications
Development
Total		 17
14
14
3
3
5
5
2		 21
13
12
3
4
6
7
2
63 68

The average monthly number of employees, calculated on an average headcount basis, during the year was 164 (2020 – 91). The average was affected by the furlough scheme and its effect on casual staff payments.

Redundancy

BAC had identified a need to restructure the projects and team structure to ensure future and long term resilience and to adapt in changes to the organisations changing needs prior to the emergence of the COVID-19 pandemic and the process continued through the period the organisation was closed, the situation was closely assessed and finalised in the 2020/21 financial year. The redundancy process included the reduction of 16 members of the team, statutory and final pay elements totalled £41.7k with a further £18.6k of agreed settlement payments.

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activity of the entity, directly or indirectly, including any Director (whether executive or otherwise) of that entity. The key management personnel of BAC are the Artistic Director & CEO, the Executive Director & Deputy CEO and the Head of Finance. Aggregate compensation paid to key management personnel in the year amounted to £165,449 (2020 – £135,816). These amounts include employer’s NIC and employer’s pension contributions.

Pension commitments

The Charity operates a defined contribution work place pension scheme through NEST, with contributions being made by both the employer and employees at variable rates. The assets of the scheme are held separately from those of the Charity. Pension costs charged represent contributions payable by the Charity to the scheme.

Total pension costs in the current year amounted to £29,992 (2020 – £26,987). At the yearend £5,861 was payable to the scheme (2020 – £3,595).

Battersea Arts Centre 39

Notes to the Financial Statements Year to 31 March 2021

10 Taxation

The company is a registered Charity, and no provision is considered necessary for payment of tax. The trading subsidiary, BAC Enterprises Limited, passes profits on which tax would be payable to the Charity under Gift Aid.

11 Auditor’s remuneration

The auditor’s remuneration of £14,000 (2020 – £10,300) related solely to the audit and includes an amount of £2,500 (2020 – £2,575) relating to BAC Enterprises Ltd.

12 Tangible fixed assets

Long leasehold
property
£		 Fixtures and
fittings
£		 Plant and
equipment
£		 Total
£
Cost
At 1 April 2020
Disposals
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		 24,558,117
(6,706)		 372,242
—		 826,807
—
25,757,517

(6,706)
24,551,762 372,242 826,807
25,750,811
3,758,771
938,491		 157,187
70,277		 704,540
57,901
4,620,498

1,066,669
4,697,262 227,464 762,441
5,687,167
19,854,500 144,778 64,366
20,063,644
20,799,697 215,055 122,267
21,137,019

13 Investments - Charity

14 2021
£		 2020
£
Investment in subsidiaryundertaking,at cost 2 2
Stock Group
2021
£		 Charity
2021
£		 Group
2020
£		 Charity
2020
£
Stock ofpurchasedgoods: bar catering 4,797 — 8,046 —

Battersea Arts Centre 40

Notes to the Financial Statements Year to 31 March 2021

15




 Debtors Group
2021
£		 Charity
2021
£		 Group
2020
£
236,307
494,222
31,811
39,197
—
801,537		 Charity
2020
£
Accrued income
Other debtors
Prepayments
VAT recoverable
Amounts due from group undertakings		 40,711
510,218
40
19,363
—		 40,711
467,718
40
68,457
46,204		 240,423
352,076
31,811
37,369
—
570,332 623,130 661,679

16 Creditors: amounts falling due within one year

Group
2021
£		 Charity
2021
£		 Group
2020
£		 Charity
2020
£
Trade creditors
Taxes and social security
Other creditors
Accruals
Deferred income (see below)
Amounts due to group undertakings
Deferred income:
Balance brought forward
Future Box Office and grant income
received in year
Released to revenue during the year
Balance carried forward		 309,680
110,240
16,909
14,930
469,637
—		 303,821
110,240
15,409
7,906
312,673
—		 326,917
60,054
2,224
284,521
730,224
—		 292,483
60,054
568
281,521
574,468
149,819
921,396 750,049 1,403,940 1,358,913
730,224
334,647
(595,234)		 574,468
276,552
(541,317)		 619,545
656,139
(545,460)		 437,249
559,629
(422,410)
469,637 312,673 730,224 574,468

Battersea Arts Centre 41

Notes to the Financial Statements Year to 31 March 2021

17 Restricted funds

The income funds of the Charity include restricted funds comprising the following unexpended balances of donations and grants to be applied for specific purposes:

Balance
at 1 April
2020
£		 Income
£		 Expenditure
£		 Transfers
£		 Balance
at 31 March
2021
£
Project funds — 1,964,838 (713,537) (15,633) 1,235,668
— 1,964,838 (713,537) (15,533) 1,235,668
Balance
at 1 April
2019
£		 Income
£		 Expenditure
£		 Transfers
£		 Balance
at 31 March
2020
£
Building improvement grants
Project funds		 7,690,976
—		 491,955
1,721,922		 (1,153,595)
(1,721,922)		 (7,029,336)
—		 —
—
7,690,976 2,213,877 (2,875,517) (7,029,336) —

Building improvement grants related to capital grants received to carry out improvements to Battersea Old Town Hall. Expenditure comprises revenue expenditure and depreciation on capital funded assets. Following the completion of the redevelopment works, the balance was transferred from restricted capital funds to the designated fund.

Project funds are specifically used to support individual elements of the artistic and participatory programmes. Project funds are spread across 14 projects with the notable balances being Moving Roots (£359,000 – Garfield Weston / Esmee Fairburn), Horizon Showcase (£235,000 – Arts Council England), and Co-Creating Change (£230,000 – NLCF). Restricted Fund revenue is released on an ongoing basis through 2021/22 and 2022/23 onwards in line with project expenditure.

18 Unrestricted general funds

The income funds of the Charity include unrestricted general funds comprising the following:

General fund Balance
at 1 April
2020
£		 Income
£		 Expenditure
£		 Transfers
£		 Balance
at 31 March
2021
£
226,722 3,828,099 (3,032,913) (206,558) 815,350
General fund Balance
at 1 April
2019
£		 Income
£		 Expenditure
£		 Transfers
£		 Balance
at 31 March
2020
£
244,641 3,505,743 (3,523,662) — 226,722

Battersea Arts Centre 42

Notes to the Financial Statements Year to 31 March 2021

19 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 April
2020
£
20,777,854
200,000
20,977,854		 Income
£
—
—
—
Income
£		 Expenditure
£		 Transfers
£		 Balance
at 31 March
2021
£
Designated capital fund
Designated building reserve		 938,491
—		 222,191
—		 20,061,554
200,000
938,491 222,191 20,261,554
Designated capital fund
Designated building reserve		 Balance
at 1 April
2019
£
13,737,972
200,000
13,937,972		 Expenditure
£		 Transfers
£		 Balance
at 31 March
2020
£
12,801
—		 (2,255)
—		 7,029,336
—		 20,777,854
200,000
12,801 (2,255) 7,029,336 20,977,854

The Designated Capital Fund is a designated fund set aside to represent the carrying value of tangible fixed assets.

The Designated Building Reserve has been set aside by the Board to assist with the future costs of maintenance of the Charity’s building.

Battersea Arts Centre 43

Notes to the Financial Statements Year to 31 March 2021

20 Analysis of net assets between funds

Analysis of net assets between funds
General
funds
£		 Restricted
funds
£		 Designated
funds
£		 2021
Total
funds
£
Tangible fixed assets
Net current assets		 2,090
813,260		 —
1,235,668		 20,061,554
200,000		 20,063,644
2,248,928
815,350 1,235,668 20,261,554 22,312,572
General
funds
£		 Restricted
funds
£		 Designated
funds
£		 2020
Total
funds
£
Tangible fixed assets
Net current (liabilities) assets		 359,165
(132,443)		 —
—		 20,777,854
200,000		 21,137,019
67,557
227,947 — 20,976,629 21,204,576

21 Operating lease commitments

At 31 March 2021, the Charity’s future minimum lease payments under non-cancellable operating leases were as follows:

Office equipment Office equipment
2021
£		 2020
£
Amounts due:
Within one year		 3,414 3,975
3,414 3,975

22 Related party transactions

Subsidiary

The Charity’s wholly owned subsidiary, BAC Enterprises Ltd, was established to carry out commercial activities including hire of spaces at Battersea Arts Centre for community and business purposes and the operation of ancillary trading in Battersea Arts Centre’s café-bar (see note 4).

Other Related Parties

Battersea Arts Centre has a multi-faceted relationship with Wandsworth Borough Council which is the landlord of the Old Town Hall building, contracts Battersea Arts Centre through a Service Level Agreement, and grants Battersea Arts Centre’s public entertainment licence. During the year, Councillor Paul Ellis was a Trustee of Battersea Arts Centre whilst sitting in the Cabinet of Wandsworth Borough Council.

2021 2020
£ £
Wandsworth Borough Council:
Service Level Agreement 60,000 60,000
Rent in-kind (note 3) 150,000 150,000
210,000 210,000
Amounts outstandingas at 31 March Nil 32

Battersea Arts Centre 44

Notes to the Financial Statements Year to 31 March 2021

22 Related party transactions (continued)

BAC has a relationship with Arts at the Mill CIC T/A The Old Courts as a partner on the Moving Roots project, Managing Director of Arts at the Mill CIC (David Jenkins) is the Director of Finance at BAC, a total of £20,000 was paid to Arts at the Mill CIC as partner fees in 2020/21 in line with the partner agreement.

Battersea Arts Centre 45