,Ftste eDts 53
THE BLACKHEATH HALLS For the year ended 31 July 2022
COMPANY INFORMATION FOR THE YEAR ENDED 31 JULY 2022 ……………………….…………………………….2 TRUSTEES’ REPORT………………………………………………………………………………………………………………………3–16 INDEPENDENT AUDITOR’S REPORT TO MEMBERS AND TRUSTEES OF THE BLACKHEATH HALLS….17–20 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES……………………………………………………………….…..21 CONSOLIDATED AND CHARITY BALANCE SHEETS…………………………………………….……………………………….22 NOTES TO THE FINANCIAL STATEMENTS……………………………………………………………………………….……23–35
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THE BLACKHEATH HALLS For the year ended 31 July 2022
COMPANY INFORMATION FOR THE YEAR ENDED 31 JULY 2022
| Trustees | Professor Anthony Bowne (Chair) |
|---|---|
| Havilland Willshire (appointed 11 November | |
| 2021) | |
| Mirella Bartrip OBE (until 1 November 2021) | |
| Philip Harding | |
| Peter Hearn | |
| Jonathan Peel MBE | |
| Francesca Robinson | |
| The Rt Hon Dame Joan Ruddock DBE | |
| Director of Blackheath Halls | Gemma Okell |
| Secretary | Dean Surtees |
| Company Number | 01747753 |
| Charity Number | 287589 |
| Registered Office | King Charles Court |
| Old Royal Naval College | |
| Greenwich | |
| London | |
| SE10 9JF | |
| Independent Auditor | BDO LLP |
| 2 City Place | |
| Beehive Ring Road | |
| Gatwick, West Sussex | |
| RH6 0PA | |
| Bankers | Lloyds Bank |
| PO Box 1000 | |
| Andover | |
| BX1 1LT | |
| Barclays Bank PLC | |
| 16 Tranquil Vale | |
| Blackheath | |
| London | |
| SE3 0AX |
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BLACKHEATH HALLS For the year ended 31 July 2022
TRUSTEES’ REPORT
The directors, who are also trustees of The Blackheath Halls, present their report and the audited financial statements of the Charity for the year ended 31 July 2022.
The trustees report has been prepared taking advantage of the exemptions available to small companies under the Companies Act 2006 and FRS102
Objectives and Activities
The Blackheath Halls is a registered Charity raising funds to advance education particularly by the encouragement of the arts of music and other related areas of the arts.
In pursuance of these objects, the Charity operates Blackheath Halls as a venue for the performing arts, providing public benefit through its whole programme of activities. Blackheath Halls presents a varied and high-quality year-round programme of professional performance including music, children’s theatre, comedy and literary events. Blackheath Halls is the primary rehearsal and performance venue for Trinity Laban music students, and the building is available for hire by local and national arts and community organisations, as well as individuals. Over the past year Blackheath Halls has transitioned back to predominantly staging live events as Covid restrictions have permitted.
Blackheath Halls runs a wide-ranging Community Engagement Programme for people of all ages and abilities, including workshops, taster sessions and community performances. Current projects include Blackheath Halls Orchestra, Blackheath Halls Chorus, Blackheath Goes Gospel and the celebrated Blackheath Halls Opera, which brings together a professional creative team with community participants to produce a fully staged annual opera. Blackheath Halls also works with the Greenwich and Lewisham Music Hubs and manages the Blackheath Halls Youth Choir, made up of outstanding young singers of all backgrounds, nominated by their schools.
Blackheath Goes Gospel 2021
The Directors of the Charitable Company are also Trustees of the Registered Charity as provided under the Charities Act 2011 and, in submitting their annual report and audited financial statements for the year ended 31 July 2022, confirm that they have complied with the duty of the Charity Commission Guidance to have due regard to the general guidance on public benefit.
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THE BLACKHEATH HALLS For the year ended 31 July 2022
TRUSTEES’ REPORT (CONTINUED)
Achievements and Performance
As throughout Covid-19, Blackheath Halls has continued to deliver as much of our charitable activity as restrictions have allowed. We started the year with socially-distanced and online rehearsals and performances, and quickly transitioned back to a full capacity, live, in-person programme from September onwards.
Events also continued as scheduled in December despite the rise in the Omicron variant. Whilst we saw substantial decreases in audience and participant numbers in the lead up to Christmas, those who did attend and perform gave very enthusiastic feedback about our decision to go ahead.
We therefore managed to offer a full programme throughout the whole of 2021/22. This in itself has felt like a considerable achievement, as there was continued uncertainty about regulations going into the start of the year, coupled with continued use of furlough for much of the staff team, alongside frequent absences later in the year due to quarantine and illness. This has also been our first full financial year of ‘normal’ operation since the building re-opened after refurbishment in November 2018.
The Wihan String Quartet, Hearn Recital Room, March 2022
Events and Attendance Figures
Overall it was an extremely busy year for Blackheath Halls, with a diverse programme consisting of 1,036 different performances, rehearsals and other in person activities, attended by 48,765 people.
This includes 158 performances (the majority of which were programmed directly by Blackheath Halls or Trinity Laban) with ticketed audiences of 26,533. Some of these were re-scheduled performances from previous years’ cancellations, but many were newly planned events. 1340 participants of all ages and backgrounds took an active part in the Community Engagement programme, as part of 231 participatory sessions run at Blackheath Halls, schools and other local venues.
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THE BLACKHEATH HALLS For the year ended 31 July 2022
TRUSTEES’ REPORT (CONTINUED)
Whilst our attention during the year has primarily been focused on transitioning back to live events, we have continued to offer some online activity and resources, reaching 33,651 people. Overall, we have welcomed into the building and engaged online or at other locations with 82,416 people during 2021/22.
Despite all the upheavals to the planning cycle and uncertainty due to Covid, these figures compare surprisingly favourably with previous years. This is partly because we have focused on a return to live events, but also benefited from ongoing engagement with artistic content developed online during lockdown.
We have also been reasonably fortunate with performance ticket sales. This is in part due to rescheduled events for which tickets had already been sold, partly due to frequent and positive communication with our audiences and providing online activity wherever possible during Covidclosure, and partly indicative of a general feeling of relief by local people keen to return to live events (ideally without having to travel into central London). This groundswell of interest was particularly apparent in our programme for children and families, and in our community engagement programme, where there was a huge appetite for meaningful in-person engagement, following on from solitary online activity during Covid.
To a certain degree this success was tempered by a sense of caution amongst some of our regular attenders (a number who have not yet returned at all), a pre-Christmas downturn due to Omicron, and some hirers who did not feel able to take the risk returning to promoting live events yet.
Artistic and Community Engagement Programme Highlights
Venus and Adonis, 2021
Perhaps the highlight of our annual programme, Blackheath Halls Opera, returned live in September 2021 with John Blow’s Venus and Adonis , directed by James Hurley with musical direction by Chris Stark . Despite singing by amateur musicians only being permitted shortly before the performances, we miraculously managed to complete eight planned performances, plus taster sessions for over a
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THE BLACKHEATH HALLS For the year ended 31 July 2022
TRUSTEES’ REPORT (CONTINUED)
hundred children in 3 schools. We hosted one British Sign Language interpreted event and one socially distanced performance, and received a 4* Observer review. The event was a critical, audience and participant success, with one performer commenting ‘Although it may sound a little far-fetched, this will go down as one of the best experiences of my life.’
Our year-round recital programme featured a large number of artists coming to Blackheath Halls for the first time including BBC Cardiff Singer of the World audience prize winner Claire Barnett-Jones with pianist Rebecca Cohen, Marta Fontanals-Simmons and Sholto Kynoch, Jonathan McGovern,
Josephine Goddard and Laurent Naouri (including works by Cecile Chaminade, who performed some of her own compositions at the Halls in 1896). Returning favourites included The Wihan Quartet, the Ubuntu Ensemble of South African musicians led by Leon Bosch, guitarists Ahmed Dickinson Cardenas & Eduardo Martin, and Singaporean/British mezzo-soprano Fleur Barron and pianist Jocelyn Freeman.
Huun-Huur-Tu, March 2022
A rare UK visit from internationally acclaimed Tuvan throat singers Huun-Huur-Tu received a standing ovation in the Great Hall, and our folk and popular music programme welcomed Kathryn Tickell and The Darkening, Kathryn Roberts & Sean Lakeman, The Blues Band on their final tour, Miranda Sykes, Salt House, John Illsley of Dire Straits, and Jackie Oates & John Spiers. Comments from audiences
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THE BLACKHEATH HALLS For the year ended 31 July 2022
TRUSTEES’ REPORT (CONTINUED)
included ‘ That was an evening to remember! It sounded wonderful, the audience was really interesting, and the event was so well run ’, ‘ A great venue with the most welcoming friendly staff imaginable ’, and ‘ A lovely intimate setting with great acoustics ’.
Lunchtime recitals continued with the Minerva Piano Trio’s world premiere of their arrangement of Stravinsky’s Puchinella Suite, Maya Irgalina, Blaze Ensemble, Marcelle Zahra, Limani Piano Trio, Prisma Collective, Evgenia Startseva, Matthias Wiesner and Peter Mallinson (performing works by Edwin Roxburgh and John Alexander in the presence of the composers), and Blackheath-based violinist Sabina Rakcheyeva. Three lunchtime performances included retiring collections in aid of Ukraine, raising £4,000 for the Disasters Emergency Committee fundraising campaign.
Friends events such as Virginia Woolf: Killing the Angel , a talk about 111 Places in Greenwich You Shouldn’t Miss, a poetry evening and a Burns Night evening were particularly special in the last year that the Friends of Blackheath Halls operated as a separate charity. A Friends Moving on Party gave staff and Board the opportunity to thank the Friends Trustees and supporters for their time, work and generosity over the years.
Highlights of the comedy programme included sets by Michael McIntyre, Stephen K Amos, Mark Watson, Suzi Ruffell, Ed Byrne, Danny Baker, Gary Delaney, Kerry Godliman and Ivo Graham. Family performances were very warmly received as some young people got their first taste of theatre postCovid, with shows including Sarah and Duck, Oldilocks and the Three Bears , Alice in Wonderland , Beastly Belle, The Elves and the Shoemaker , The Bag that went Boo! and four sold out performances of The Smartest Giant in Town and The Nutcracker in the Great Hall .
The Smartest Giant in Town, Great Hall, March 2022
Blackheath Goes Gospel! proved particularly popular this year, with 60 adult participants (many joining us for the first time) rehearsing and performing alongside 50 children from St Margaret’s School. One of the lockdown films made for last year’s schools gospel project gained international traction, with over 29k views to date. Blackheath Village Day was enjoyed by 500 people with free family craft activity kindly run by CraftA and volunteers, music from the London Joy Singers and the return of the annual Festive Family singalong.
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THE BLACKHEATH HALLS For the year ended 31 July 2022
TRUSTEES’ REPORT (CONTINUED)
Other community projects in 2021/22 included Blackheath Halls Chorus and Orchestra performing Bach’s St John Passion alongside Eltham Choral Society with Trinity Laban alum Nardus Williams taking a solo role, Blackheath Halls Orchestra’s performances of Massenet’s Scenes Alsaciennes and works by Liszt and Melanie Bonis. Hundreds of local school children performed as part of Live at the Halls and Live Dance, sharing music and dance as part of Lewisham Live.
Events marking the launch of Lewisham Borough of Culture funded by the Creative Change Fund were particularly enjoyable, as we took pleasure in our first major project outside since before
Covid, meeting new audiences, and making new connections. An oboe quartet made up of incredible community musicians from Blackheath Halls Orchestra played a commission by Trinity Laban student Emily de Gruchy at Blackheath Station, and Blackheath Halls Youth Choir and steel pan group Heart of Steel entertained hundreds of people outside the Crown in the centre of Blackheath. We also ran free family steel pan workshops, yoga to music in collaboration with Blackheath Conservatoire, and a family treasure hunt. In June, four Blackheath Halls choirs took part in the Beacon Lighting event to mark the Diamond Jubilee organised by The Blackheath Society, singing songs from each decade of the Queen’s reign, which attracted thousands of people to the Heath.
With thanks to funding from Arts Council Lottery fund we relaunched the Blackheath Halls Youth Choir and this – along with the support of the Youth Choir Family – helped us bring more young people from Lewisham into the choir, recruit a new youth choir leader and start a youth choir consultation panel. In addition to a number of public performances, the youth choir also took part in a musical theatre workshop led by Trinity Laban alum Hayley Huggett, developed a British Sign Language interpreted version of A Million Dreams from The Greatest Showman and learned both history and music for Russell Hepplewhite’s The History Express . Leia, a member of the choir since she was eight, was chosen to perform in Cavalleria Rusticana & Pagliacci as part of the Royal Opera House’s Youth Company in July.
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THE BLACKHEATH HALLS
For the year ended 31 July 2022
TRUSTEES’ REPORT (CONTINUED)
April saw a successful sold-out five-day easter holiday Musical Theatre course for 8-16 year olds in collaboration with Trinity Laban Musical Theatre department, culminating in performances both by them, and the adults who had been meeting weekly throughout the spring.
Nicky and Sarah Pring at the opera gala night
Plans for Blackheath Halls Opera 2022 are taking shape. The Opera Gala Night over the Jubilee weekend in June included fantastic performances from Ailish Tynan, Nicky Spence, Sarah Pring, Mary Bevan and Esme Bronwen-Smith amongst others, and their generosity helped to raise over £25,000 through tickets and donations. This will help to fund Blackheath Halls Opera 2022 Bernstein’s Candide in September and October . Auditions have taken place for the principal parts to be sung by professionals and Trinity Laban Conservatoire of Music and Dance students, a taster workshop at Mycenae House reached 40 new amateur adult participants, and rehearsals for the chorus, youth companies, special schools and orchestra are now in progress.
A packed Trinity Laban programme during the year included the Undergraduate Chorus and Musical Theatre Show Choir’s Songs of Dissent , the first performance at the Halls by the new BA Music Performance and Industry students, and Gold Medal winner Talia Erdal as soloist in Prokofiev’s Sinfonia Concertante with the Symphony Orchestra. CoLab showcases featured music and dance students alongside Streetwise Opera and Shobana Jeyasingh Dance, a Yoruba project, and the Solem Quartet. Other public performances included a Charlie Parker Big Band project, Jazz Studio Band and Afro-Cuban Band, Side by Side with the London Mozart Players, the Soloists Competition (won by pianist Kyle Nash-Baker), the String Ensemble’s version of Vivaldi’s The Four Seasons for schools and the second year Musical Theatre students’ production of Big Fish.
A new opera Strozzi! by Trinity Laban’s Head of Vocal Studies Jennifer Hamilton with music by Barbara Strozzi was described by Greenwich Visitor as ‘a wonderful tribute to a wonderful composer with whom we all need to become more familiar.’ They also described the premiere of Each one cancels the last (Hector) by Trinity Laban Junior Fellow Jack Sheen as ‘ an immersive mix of music, living art installation and audience involvement that is emotionally and intellectually satisfying’.
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THE BLACKHEATH HALLS For the year ended 31 July 2022
TRUSTEES’ REPORT (CONTINUED)
Hires of the building during the year included a number of parties and events by private individuals, as well as activities by local organisations such as The Age Exchange’s Christmas Fair, another fundraiser for the Age Exchange The Kaleidoscope of Love , The Hermes Experiment with the support of the Michael Cuddigan Trust, Alleyn’s School, Eltham College, the UK Soul Choir, and Lewisham Music. We also were fortunate to have the opportunity to host an evening as part of Lewisham Borough of Culture; Lewisham Connections, curated by Dave Okumu, and featuring Jessie Ware and Eska amongst others.
Professional orchestral rehearsals included the London Sinfonietta (for the world premiere of Laura Bowler’s Houses Slide with PA and lights powered by bicycle at the Barbican), the Orchestra of the Age of Enlightenment, Royal Philharmonic Orchestra, Philharmonia, Raymond Gubbay Orchestra, Britten Sinfonia, London Philharmonic Orchestra, and English National Opera rehearsing HMS Pinafore, Tosca and recording the first TikTok opera. It was also a pleasure to welcome back the London International Festival of Early Music in person after a Covid-enforced online festival the previous year.
During 2021/22 we gained over 600 additional subscribers to our Youtube channel in comparison with around 150 new subscribers the previous year. This has largely been due to the incredible success of a film made as part of the gospel project last year, made as a warm-up routine for teachers in Lewisham schools. It has been viewed over 29,000 times to date, with a high proportion of viewers in the US. We have also seen small increases in our followers and engagement on Facebook, Twitter and Instagram.
Development, capital work and future plans
One of the major organisational changes during the year was the Friends of Blackheath Halls coming to an end as a separate organisation. The Friends have been a pivotal organisation in the history of Blackheath in general and the Halls in particular. Huge thanks are due to Dame Joan Ruddock and all the Friends Trustees, committee members and supporters for their generosity of time, expertise and funding over the years. The Friends committee presented a cheque for £23k to Blackheath Halls towards purchasing a stage lift, as they brought the organisation to a close in its current form.
We plan to honour and continue the legacy of the Friends, with an in-house Friends and Patrons scheme. We currently have 175 Friends, as well as 33 higher level donors in the Platinum Patrons, Directors Circle and Patron categories, the income from which is supporting the artistic community engagement programme, including the community opera and youth choir. We look forward to launching a new Development Steering Committee shortly, to support the recruitment of new Friends as well as planning and delivering the events, projects and benefits offered to members.
Our parent company Trinity Laban submitted a Lewisham Arts Grant application for 2022 onward, from whom Blackheath Halls have historically received £12k annually towards community activity. Very disappointingly – particularly during Lewisham’s year as Borough of Culture - the application was not successful, as despite an excellent application they chose to focus on smaller grass-roots organisations. However, we extend our thanks to Lewisham for all their previous support and for funding activity as part of Lewisham Borough of Culture, to Arts Council England Lottery Grants, the Hearn Foundation, Greenwich Neighbourhood Growth Fund, The Friends of Blackheath Halls and all our individual donors.
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THE BLACKHEATH HALLS For the year ended 31 July 2022
TRUSTEES’ REPORT (CONTINUED)
Continuing our commitment to the upkeep and improvement of our Grade II listed building, in addition to ongoing maintenance and repair this year, we have replaced the old and malfunctioning house lighting system in the Hearn Recital Room with new LED lighting. Our Bosendorfer piano has also returned having been away for a rebuild during the spring and summer, Greenwich funding is enabling us to buy AV equipment meaning that we can film or stream future performances. We received planning permission for landscaping work at the front of the building during the year, and have gone out to tender with architects Walker Bushe. We also intend to install a stage lift to enable wheelchair and piano access to the Great Hall stage this year.
We have not returned to producing the season brochures and currently do not intend to do so – as overall ticket sales have not been noticeably impacted by this decision. We do intend to continue producing some smaller highlights flyers and print for specific activities, as we know from conversations through box office that there is a continued demand for some printed information. The savings generated from not producing a season brochure have enabled us to focus more on reaching new audiences through weekly and monthly paid advertising, along with advertorial features in local papers and publications across London, marketing opportunities with other local venues, and nationwide websites. We have continued to communicate with existing audiences through emails and social media channels, in a change that was enforced by Covid.
Working with Trinity Laban web developers Red Bullet we launched our newly redesigned website in August 2022, with the intention of improving the experience and site navigation for both users and hirers on desktop, laptop, tablet and all mobile devices. The enhanced ability to event market through video should assist in attracting younger and more diverse audiences, and cross promotion will enable increased sales. SEO marketing will also help with our marketing efforts with improved visibility of our digital assets, all ensuring that our external communications improve in line with the physical improvements to the building. Early feedback suggests the redesign has been welcomed by users and will help us achieve these ambitions.
Our thanks
The Board is enormously grateful to all who have given their time in support of the Halls and its programme this year. Staff, volunteers, artists, students, hirers, donors, audiences and partners have all continued to show flexibility, understanding and generosity during the ongoing uncertainty caused by Covid-19.
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THE BLACKHEATH HALLS For the year ended 31 July 2022
TRUSTEES’ REPORT (CONTINUED)
We gratefully acknowledge the support of Arts Council England through the Culture Recovery Fund, as well as support from Royal Borough of Greenwich.
We are also hugely appreciative of the generous donations made to the Blackheath Halls capital programme in particular Hearn Foundation, Arts Council England and The Friends of Blackheath Halls, which have provided a strong foundation for the in person activity that has been able to happen this year. The improved environment and resources this project made to the organisation remain key to our way out of the current situation into long term sustainability.
Particular thanks are due to Dame Joan Ruddock and all the Friends Trustees and committee members for their generosity of time and expertise over the years, as well as the additional work that wrapping up the Friends as a separate organisation has taken. We extend our thanks to Gill and Tom Butler for programming literary and music events at Blackheath Halls during the year.
We also wish to give our posthumous thanks to dedicated supporter and Board member Mirella Bartrip OBE, who worked tirelessly to further education in the arts.
Financial Review
At the end of the 2021/22 financial year, the Halls generated a deficit of £145,413 compared to an overall surplus of £133,865 in the previous year. This was broadly as budgeted for the year, as we saw the end of most government support for Covid impact, whilst returning to a full operation of the building and its associated overheads, without the return particularly of some commercial hirers.
Overall external hires income, bar contributions and ticket sales for own promotions all did slightly better than budgeted. Areas of increased cost were largely around the operation of the building, including higher utility bills and cleaning costs. The deficit in our community engagement budget was somewhat compensated for by increased income in 2020/21. This is because our opera planning cycle now crosses financial years (with a substantial proportion of our income raised at the end of one financial year, against the majority of the expenditure happening in the following financial year).
Reserves policy
Reserves are classified as restricted or unrestricted. Restricted reserves include balances where the donor has designated a specific purpose and therefore The Blackheath Halls is restricted in the use of these funds. A transfer of funds from restricted to unrestricted reserves is carried out once restriction has been discharged. Excluding the revaluation reserve there are currently unrestricted reserves of £1,983,155 (2021: £2,138,536).
Note 1a ii and iii shows the Charity has adequate resources to enable operations in the foreseeable future.
Reserves are maintained at a level that enables Blackheath Halls to manage financial risk and short term income volatility. They allow the Charity to ensure that financial commitments can be met as they fall due. In practice, this means the board considers that the Blackheath Halls should maintain cash reserves equivalent to 3 months’ expenditure, less depreciation. In 2021/22 the equivalent of three months’ expenditure equated to £245,887 whereas cash stood at £319,436 at 31 July 2022.
Risk management
The major risk exposures are as follows:
- Failure to achieve income targets, particularly for external hires, as well as performance and bar sales, including through the current and anticipated impact of inflation and the increased cost of living, and the ongoing pressure on bookings due to multiple demands on the same space during popular periods. This is managed to a certain extent by the recent and proposed future improvements to the facilities, and therefore our attractiveness to hires and audiences,
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THE BLACKHEATH HALLS For the year ended 31 July 2022
TRUSTEES’ REPORT (CONTINUED)
as well as new audience development, website and programming initiatives. Also monitoring pricing structures and performance closely throughout the year, encouraging flexibility in bookings and regular reviews of booking priorities.
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Failure to manage costs, particularly due to inflation and disruption to supply chains having an impact on capital and maintenance plans. Actions to mitigate this include close scrutiny of monthly management accounts, strong tender processes, and a relatively short-term planning cycle meaning that alterations can be made to our programme if essential.
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Failure to achieve fundraising targets including for community engagement projects and future capital development plans. This is managed to a certain extent by past successes resulting in existing relationships with funders, as well as scalability of projects, and the introduction of a new Friends and Patrons scheme.
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Loss of (and/or failure to recruit) key staff positions including due to uncompetitive salaries during a period of inflation, resulting in reduced ability to operate the building effectively, as well as failure to recruit staff who reflect the diversity of our local boroughs. This is managed to a certain degree by improving our recruitment processes and practices, the training and support we offer, consulting with other external organisations, and working in partnership.
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Major damage to the building or facilities, resulting in the inability to operate. This is managed by business continuity plans.
Plans for the future
The Board approved its Artistic and Strategic Plan in May 2019, articulating our ambition to build a reputation as a distinctive multi art-form organisation; a successful community venue with cutting edge artistic standards, inspired by – and serving – our local communities.
Strategic priorities over the period of the plan are to develop:
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1) a balanced, ambitious and artistically excellent programme;
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2) a broader range of audiences, participants, artists, supporters and partners;
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3) a strong identity and profile;
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4) the building, infrastructure and staff resources required to achieve the above priorities; and
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5) financial stability, to enable the scale of ambition to grow over the next five years.
The plan outlines key actions to achieve these priorities and continues to steer the organisation’s direction and plans.
A detailed review of progress against actions was undertaken by the staff and Board teams in June 2021. Whilst closure and disruption due to Covid-19 has had - and to a lesser extent continues to have - impact on our ability to achieve these ambitions, considerable progress has nevertheless been made. Agreement has been reached to continue these ambitions, as well as prioritise and more clearly articulate actions to improve the diversity of the organisation, and also make a commitment to ongoing online activity where appropriate.
There are a number of positives on the horizon for 2022/23, not least proposed landscaping work to the outside areas of the building supported by the Hearn Foundation, which has now received planning permission and tenders for the work. Our new website has been launched, the lighting in the Hearn Recital Room replaced, and we intend to install a stage lift to make the Great Hall fully
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THE BLACKHEATH HALLS For the year ended 31 July 2022
TRUSTEES’ REPORT (CONTINUED)
accessible. We are also continuing with plans to stream or make work available online, improve the visual quality of our café bar space, and welcome back hirers who paused their work during Covid.
The transition of the Friends to an inhouse function means that we have the potential to widen and diversify our group of donors, including major donors with the introduction of Patrons, Director’s Circle, and Platinum Patrons. We have also seen a huge outflowing of appreciation for our work online during Covid, our swift return to live in person performance, which combined with the desire for social connection the arts provides have resulted in excellent attendance figures this year.
Heart of Steel Steelpan Workshop Lewisham Borough of Culture Launch Day Jan 2022
Structure, Governance and Management
Governing Document
The Blackheath Halls is a company limited by guarantee governed by its Memorandum and Articles of Association, and registered as a charity with the Charity Commission. Blackheath Halls is a wholly owned subsidiary of Trinity Laban Conservatoire of Music and Dance.
Related parties
The Charity owns and operates a wholly owned trading subsidiary, BCH Enterprises Limited, which is registered in England, Registered No. 02642177.
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THE BLACKHEATH HALLS For the year ended 31 July 2022
TRUSTEES’ REPORT (CONTINUED)
Organisation
The Board of Trustees oversee the business of the Charity, delegating day to day management to the Director, to implement the adopted policy and strategy, within a budget approved by the Trustees and the parent company. The Director's role description outlines the extent of her authority. The Director reports regularly to the Trustees on the activities undertaken and the financial position of the Charity.
Effective resolutions
Elective resolutions have been passed for the purposes of:
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1) Dispensing with laying of accounts and reports before general meeting.
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2) Dispensing with the holding of an annual general meeting.
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3) Dispensing with the annual appointment of the auditor.
Appointment of Trustees/Directors
As set out in Articles of Association, there are seven trustees of the Blackheath Halls, four trustees are nominated by Trinity Laban Conservatoire of Music and Dance and three are nominated by the Hearn Foundation. Where a vacancy arises Trinity Laban or the Hearn Foundation will nominate a replacement to serve as a trustee.
Directors are also Trustees of the Charity. In 2016–17, following an agreement with Hearn Foundation to provide a grant of £1.85m, a new governance arrangement was put in place whereby The Blackheath Halls Board changed to four Trustees from Trinity Laban Conservatoire of Music and Dance and three Trustees who are either trustees of:
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a) the Hearn Foundation; and/or
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b) nominated by the Hearn Foundation.
As of 31 July 2022, the Board consisted of Havilland Willshire, Professor Anthony Bowne (chair), Philip Harding, Jonathan Peel (Trinity Laban representatives) and Peter Hearn, Francesca Robinson and Dame Joan Ruddock (Hearn Foundation representatives).
Director induction and training
New Directors meet the Chair of Blackheath Halls and key employees who brief them on:
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1) their role and responsibilities and legal obligations under charity and company law;
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2) the content of the Memorandum and Articles of Association and relationship with Trinity Laban (the parent undertaking); and
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3) the business plan and recent financial performance of Blackheath Halls.
Tours of the Halls and other Conservatoire facilities are arranged, and Trustees are invited to attend appropriate events and workshops where these may better facilitate the undertaking of their role.
Trustees' responsibilities statement
The Trustees (who are also directors of The Blackheath Halls for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year. Under that law, the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law),
15
THE BLACKHEATH HALLS For the year ended 31July 2022 TRUSTEES, REPORT ICONTINUEDI Generally Accepted Accounting Practice Iunited Kingdom At¢ounting Standards and applicable lawl, including FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law, the Trustees mvst not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to.. 5elert suitable accounting policies and then apply them consistently- obseNe the methods and principles in the Charities SORP IFRS1021,' make judgements and accounting estimates that are asonable and prudent,. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable compan5 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the preventlon and detettion of fraud and other irregularitie5. Statement of dlsclosure to the auditor The Trustees confirm that: so far as each Trustee is aware, there is no relevant audit Information of which the charitable company's auditor is unaware,. and the Trustees have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit inforniation and to establish thatthe charitable company's auditor is aware of that information. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable companws website. Legislation in the United Kingdom governing the preparation and dissernination of financial statements may differ from legislation in other jurisdictions. The report has been prepared in accordance with the provisions applicable to companies subject to the small companie5 regime and in accordance with the provisions of FRS102 Section IA- Small Entitie5. By Order of the Board Profe550r A. Bowne Chair of Trustees Date: 7/11/11 16
BLACKHEATH HALLS For the year ended 31 July 2022
INDEPENDENT AUDITOR’S REPORT TO MEMBERS AND TRUSTEES OF THE BLACKHEATH HALLS
Opinion on the financial statements
In our opinion, the financial statements:
-
give a true and fair view of the state of the Group’s and of the Parent Charitable Company’s affairs as at 31 July 2022 and of the Group’s incoming resources and application of resources for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of The Blackheath Halls (“the Parent Charitable Company”) and its subsidiary (“the Group”) for the year ended 31 July 2022 which comprise the consolidated statement of financial activities, the consolidated and charity balance sheets 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remain independent of the Group and the Parent Charitable Company in accordance with the ethical requirements 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.
Conclusions related 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 the Parent 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 and Financial Statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover
17
THE BLACKHEATH HALLS For the year ended 31 July 2022
INDEPENDENT AUDITOR’S REPORT TO MEMBERS AND TRUSTEES OF THE BLACKHEATH HALLS (CONTINUED)
the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 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.
Other Companies Act 2006 reporting
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic Report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Strategic Report and the Directors’ Report, which are included in the Trustees’ Report, have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Trustees’ 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;
-
adequate accounting records have not been kept by the Parent Charitable Company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the Parent Charitable Company financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of Directors’ remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report.
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 determines 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 Parent 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
18
THE BLACKHEATH HALLS For the year ended 31 July 2022
INDEPENDENT AUDITOR’S REPORT TO MEMBERS AND TRUSTEES OF THE BLACKHEATH HALLS (CONTINUED)
intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
Extent to which the audit was capable of detecting irregularities, including fraud
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:
As part of the audit we gained an understanding of the legal and regulatory framework applicable to the Group and the sector in which it operates, and considered the risk of acts by the Group that were contrary to applicable laws and regulations, including fraud. We considered the Group’s own assessment of the risks that irregularities may occur either as a result of fraud or error, the Group’s compliance with laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006, Charities Act 2011 and other laws and regulations applicable to the group such as employment law, taxation legislation, data protection, health and safety legislation. We considered financial performance, key performance indicators and other performance targets. We also considered the risks of non-compliance with requirements imposed by the Charity Commission, and other regulators, and we considered the extent to which non-compliance might have a material effect on the group financial statements.
We also communicated relevant identified laws and regulations, potential fraud risks and that there were no known matters of significant non-compliance with laws and regulations, to all engagement team members including internal specialists audit teams, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: donations and legacy revenue recognition.
Our tests included:
-
agreeing the financial statement disclosures complied with applicable legislation;
-
enquiries of the Audit Committee and Senior Management Team, review of minutes of meetings of those charged with governance;
-
reviewing correspondence with HMRC;
19
THE BLACKHEATH HALLS For the year ended 31 July 2022
INDEPENDENT AUDITOR’S REPORT TO MEMBERS AND TRUSTEES OF THE BLACKHEATH HALLS (CONTINUED)
-
challenging assumptions made by management in their significant accounting estimates in particular in relation to the recognition of grant and donation income;
-
enquiries of third parties, where information from that third party has been used by the Group in the preparation of the financial statements;
-
reviewed any Serious Incident Reports submitted to the Charity Commission, other correspondence with the Charity Commission and performed an assessment of any Whistleblowing matters; and
-
performed audit procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
As in all of our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluations, whether there was evidence of bias in accounting estimates by management or the Board that represented a risk of material misstatement due to fraud.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
James Aston MBE (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Gatwick, UK Date: 20 December 2022
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
20
THE BLACKHEATH HALLS
For the year ended 31 July 2022
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
----- Start of picture text -----
Unrestricted Restricted
Funds Funds Total Funds Total Funds
Notes 2022 2022 2022 2021
Income From: £ £ £ £
Donations and Legacies 2 129,387 65,208 194,595 620,983
Charitable Activities:
Operation of Blackheath Halls 3 554,269 - 554,269 215,141
Other Trading Activities 5/6 266,952 - 266,952 48,015
Total Income 950,608 65,208 1,015,816 884,139
Expenditure on:
Raising Funds 7 73,162 - 73,162 56,369
Charitable Activities:
Operation of Blackheath Halls 8 940,061 28,664 968,725 631,776
Other Trading Activities 9 119,342 - 119,342 62,129
Total Expenditure 1,132,565 28,664 1,161,229 750,274
Net (Expenditure)/Income (181,957) 36,544 (145,413) 133,865
- -
Capital Grants Utilised 18,284 (18,284)
Reconciliation of Funds
Total Funds Brought Forward 15 3,481,805 2,710 3,484,515 3,350,650
Total Funds Carried Forward 3,318,132 20,970 3,339,102 3,484,515
----- End of picture text -----
The notes on pages 23 to 35 form part of the financial statements.
21
THE BLACKHEATH HALLS For the year ended 31 July 2022 CONSOLIDATED AND CHARITY BALANCE SHEETS Company Registratlon no: 01747753 L>oup 2022 (>oup 2021 Charity 2022 Charty 2021 Note Axed Assets Tangible ltssets In*strnents 5.262.555 5,399,116 5,250.534 5,384,258 5,262,555 5,399,116 5,250,536 5,384,260 CurrentAssets Stock Debtors Cash at Bonk and in Hand 5.477 43.738 319.436 368.651 3.211 27.628 404,428 435,267 12 108.068 138.537 246,605 17,097 359,946 377,043 Crèditors: Amounts Falling Due Wbthin Ckne Year 13 816,544 821,530 691,845 758,980 Net Current LIablIleS 1447,8931 1386,2631 1445.2401 1381.9371 Totsl ksets less Currènt Liabilib"as 4.814.662 5.012.853 4.805.296 5,002.323 Cr•ditor#:Amount8 Falling After More Than One Year 14 11,475.5601 11,528,338) 11.475,5601 11.528,3381 Totsl Net Assets 3,339,102 3,484,515 3.329.736 3A73 985 Total Unreskncted Funds 15 3,318,132 3,481,805 3,308.766 3,471,275 Total Restricted Funds 20.970 2,710 20.970 2,710 Total Charlty Fund 3,339,102 3,484,515 3,329,737 3A73.985 The financial statements were authorised and approved by the lyjard on 7/11/ ii and signed on its behalf by- A. Bowne Tnjstee Date: 7112/%1 The notes on pages 23 to 35 form part of the financial statements. 22
BLACKHEATH HALLS
For the year ended 31 July 2022
NOTES TO THE FINANCIAL STATEMENTS
1. Accounting policies
The principal accounting policies, judgements and key sources of estimation uncertainty in the preparation of the financial statements are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year in dealing with items which are considered material in relation to the financial statements.
a) Basis of accounting
-
i) The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the special provisions of Part 15 of the Companies Act 2006 relating to small companies. The financial statements have been prepared on the historical cost basis.
-
ii) Amounts due to Trinity Laban Conservatoire of Music and Dance and BCH Enterprises Limited include £1,536,746 (2021: £1,682,630). The Directors have received written assurances from the Board of Trinity Laban Conservatoire of Music and Dance that it will not seek repayment of this outstanding balance before 30 November 2023.
-
iii) The Charity has taken advantage of the exemption permitted by FRS 102, whereby a cash flow statement need not be prepared by a small company, as defined in Companies Act 2006.
b) Going concern
With the letter of support provided by the parent entity, the Board do not consider there to be any material uncertainty over the ability of the charity to continue as a going concern for the foreseeable future, being for a period of at least twelve months after the date on which the report and financial statements are signed. The accounts have therefore been prepared on a going concern basis.
Excluding the revaluation reserve, currently there are £1,983,155 unrestricted reserves.
c) Basis of preparation
The consolidated accounts include the results of the Charity and its subsidiary, BCH Enterprises Limited. In the Charity's accounts the investment in the subsidiary is stated at cost. A separate Statement of financial activities and Income and Expenditure account for the Charity can be found in note 4. The Blackheath Halls is a charity and the financial statements are presented in Sterling (£).
d) Income
Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the Charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Grants, donations and other income are allocated to
23
THE BLACKHEATH HALLS For the year ended 31 July 2022
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
individual restricted funds if a restricted use is specified on receipt. If not specified, they are allocated to the unrestricted funds. Income received in advance of a performance or provision of other specified service it is deferred until the criteria for income recognition is met.
e) Fund accounting
Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Designated funds are unrestricted funds of the Charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Charity’s work or for specific projects being undertaken by the Charity.
f) Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
-
i) Costs of raising funds comprise the costs of generating voluntary income.
-
ii) Expenditure on Charitable activities includes the costs of performances, events and other educational activities undertaken to further the purposes of the charity and their associated support costs.
-
iii) Expenditure is apportioned on the basis of activities between raising funds, support activities, education and community projects and other charitable activities.
-
iv) Other expenditure represents those items not falling into any other heading.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
g) Fixed assets
Tangible fixed assets are stated at cost. Depreciation is provided at rates estimated to write off the costs of tangible fixed assets by equal instalments over their anticipated useful lives. The leasehold buildings and land were reapportioned in the year ended 31 July 2018 between freehold and leasehold land and buildings.
Depreciation rates are as follows:
-
i) Freehold buildings are amortised at the rate of 2% per annum.
-
ii) Leasehold buildings are amortised over the remaining term of the lease by equal instalments.
-
iii) Leasehold alterations and building improvements are depreciated between 10 and 50 years.
-
iv) On adoption of FRS 102, the Conservatoire followed the transitional provision to revalue its leasehold land and buildings and to include that fair value as its deemed cost as at the date of transition (that is, 1 August 2014) but not to adopt a policy of revaluations of these properties in the future. The valuation, completed by a firm of international property consultants Gerald eve, is retained subject to the requirement to test assets for impairment in accordance with FRS102.
-
v) Musical instruments are depreciated over their useful economic life deemed to be 5 years.
h) Stock
Stock is stated at the lower of cost and net realisable value.
24
THE BLACKHEATH HALLS For the year ended 31 July 2022
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
i) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
j) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
k) Creditors
Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
l) Employee benefits
Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the Charity. Any unused benefits are accrued and measured as the additional amount the Charity expects to pay as a result of the unused entitlement.
m) Accounting for retirement benefits
The Blackheath Halls participates in one pension scheme, the National Employment Savings Trust (NEST). The NEST is a defined contribution workplace pension scheme, run by a Trustee (NEST Corporation) on a not-for-profit basis. The Blackheath Halls pays fixed contributions to the scheme and will have no legal or constructive obligation to pay further amounts. The amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period. These amounts have been allocated between activities and funds on the same basis as the salary costs for the relevant employees.
n) Taxation
The Blackheath Halls is potentially exempt from taxation in respect of income or capital gains and is covered within the meaning of Part 3 of the Charities Act 2011. It is therefore a charity within the meaning of Paragraph 1 of schedule 6 to the Finance Act 2010 and accordingly, the Blackheath Halls is potentially exempt from taxation in respect of income or capital gains received within categories covered by section 478–488 of the Corporation Tax Act 2010 (CTA 2010) or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively charitable purposes.
The Blackheath Halls receives no similar exemption in respect of Value Added Tax. Irrecoverable VAT on inputs is included in the costs of such inputs. Any irrecoverable VAT allocated to fixed assets is included in their cost. The Blackheath Halls' subsidiary is liable to Corporation Tax in the same way as any other commercial organisation.
25
THE BLACKHEATH HALLS For the year ended 31 July 2022
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
o) Critical accounting judgements and estimates
In preparing the financial statements, the trustees are required to make estimates and judgements. The items in the financial statements where these judgements and estimates have been made include:
-
i. Accruals – The estimates for payables relates to the liabilities not settled at year end. A review is performed on an individual creditor’s basis to estimate the amount will be collected.
-
ii. Tangible fixed assets – A review is performed annually for indicators of impairment as well as an estimation of depreciation as per note 1g.
2 Income From Donations and Legacies
----- Start of picture text -----
||||||||
|---|---|---|---|---|---|---|
|2022|2022|2022|2021|2021|2021|
|£|£|£|£|£|£|
|Unrestricted|Restricted|Total|Unrestricted|Restricted|Total|
|Grants From Public|
|Authorities|19,340|-|19,340|299,407|26,220|325,627|
|Arts Council Grant|27,778|31,638|59,416|27,778|-|27,778|
|Unrestricted|
|Donations|82,269|-|82,269|180,398|-|180,398|
|Charitable Donations|-|33,570|33,570|-|87,180|87,180|
|129,387|65,208|194,595|507,583|113,400|620,983|
----- End of picture text -----
- 3 Income From Charitable Activities
----- Start of picture text -----
||||
|---|---|---|
|2022|2021|
|£|£|
|Box Office Income|323,363|35,734|
|Hall Hire by Trinity Laban|189,085|179,407|
|-|
|Management Fees|27,000|
|Other Income|14,821|-|
|554,269|215,141|
----- End of picture text -----
26
THE BLACKHEATH HALLS
For the year ended 31 July 2022
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
4 Charity Statement of Financial Activities
| Income From Donations and Legacies Charitable Activities Operation of Blackheath Halls Total Income Expenditure on: Raising Funds Charitable Activities Operation of Blackheath Halls Total Expenditure Net (Expenditure)/Income Capital Grants Utilised Reconciliation of Funds Total Funds Brought Forward Total Funds Carried Forward Donation From Subsidiary Made Under Deed of Covenant |
Unrestricted Restricted Total Funds Total Funds 2022 2022 2022 2021 £ £ £ £ 129,387 65,208 194,595 585,506 618,509 - 618,509 230,723 747,896 65,208 813,104 816,229 73,162 - 73,162 56,369 940,061 28,664 968,725 631,776 |
|---|---|
| 1,013,223 28,664 1,041,887 688,145 |
|
| (265,327) 36,544 (228,783) 128,084 18,284 (18,284) - - 84,534 - 84,534 - |
|
| 3,471,275 2,710 3,473,985 3,345,901 |
|
| 3,308,766 20,970 3,329,736 3,473,985 |
5. Income from Other trading activities
The wholly owned trading subsidiary, BCH Enterprises Limited ("BCH") is incorporated in the United Kingdom. The BCH company number is 02642177 and the registered office address is King Charles Court, Old Royal Naval College, Greenwich, London, SE10 9JF. BCH operates the bar and catering and organises all the commercial trading operations carried on at The Blackheath Halls. The charity owns the entire share capital comprising 2 ordinary shares of £1 each. BCH has adopted a policy of paying all taxable profits to its parent company Blackheath Halls by qualifying distribution under a deed of covenant.
27
THE BLACKHEATH HALLS
For the year ended 31 July 2022
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
6 Summary Profit and Loss Account
| Turnover Cost of Sales and Administrative Expenses Profit Before Taxation Taxation Qualifying Distribution (Loss)/Profit After Taxation Fixed Assets Current Assets Creditors: Amounts Falling Due Within One Year Total Net Assets Aggregate Share Capital and Reserves |
2022 2021 £ £ 266,952 83,492 (183,582) (77,711) 83,370 5,781 - - (84,534) - (1,164) 5,781 |
|---|---|
| 2022 2021 £ £ 12,016 14,853 208,503 102,993 (211,166) (107,329) |
|
| 9,353 10,517 |
|
| 9,353 10,517 |
7 Expenditure on Raising Funds
| Staff Costs Advertising Printing, Postage and Stationery |
Staff Costs Advertising Printing, Postage and Stationery |
2022 2021 £ £ 51,989 51,858 11,596 1,249 9,577 3,262 |
|---|---|---|
| 73,162 56,369 |
||
| 8 Expenditure on Charitable Activities - Operation of Blackheath Halls 2022 2022 2022 2021 £ £ £ £ Unrestricted Restricted Total Unrestricted 241,898 - 241,898 280,871 Other Activities 526,524 28,664 555,188 223,576 171,639 - 171,639 57,538 940,061 28,664 968,725 561,985 Support Costs Education & Community - Projects |
2021 2021 £ £ Restricted Total - 280,871 69,791 293,367 - 57,538 |
|
| 940,061 28,664 968,725 561,985 |
69,791 631,776 |
28
THE BLACKHEATH HALLS
For the year ended 31 July 2022
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
----- Start of picture text -----
Support Costs 2022 2021
£ £
House managers 6,013 15,618
Administration 110,281 130,469
Ushers 9,394 15,188
Management 71,407 70,030
Crew 3,993 12,902
Box Office 32,950 29,830
Audit Fees 7,860 6,834
241,898 280,871
----- End of picture text -----
Support costs are apportioned based on the number of staff employed in each activity.
9 Expenditure on Charitable Activities - Other Trading Activities
| This relates to BCH Enterprises Limited, the trading subsidiary Staff Costs Legal and Professional Audit Fees Repairs and Maintenance Sundry Expenses Depreciation Bar and Catering Purchases Accountancy Fees |
2022 2021 £ £ 65,341 46,845 29,414 2,451 465 225 4,984 4,140 75 1,246 1,960 1,843 14,266 2,773 2,837 2,606 |
|---|---|
| 119,342 62,129 |
These costs have been classified as charitable as they support the charitable activities of the organisation.
10 Staff Costs
| Wages and Salaries Social Security Other Pension Costs |
2022 2021 £ £ 371,062 363,398 15,371 15,994 10,038 10,893 |
|---|---|
| 396,471 390,285 |
29
THE BLACKHEATH HALLS
For the year ended 31 July 2022
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
The average monthly number of employees during the year:
| NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) The average monthly number of employees during the year: |
|
|---|---|
| Number Number |
|
| Administration | 4 4 |
| Box Office | 4 4 |
| Marketing and Fundraising | 2 2 |
| Crew & Ushers | 3 2 |
| House Management | 1 1 |
| Bar & Catering Support |
1 2 1 1 |
| 16 16 |
|
No employee received remuneration of more than £60,000.
None of the trustees received any emoluments from the Charity during the year (2021 - £Nil).
There have been no expenses paid to or on behalf of the trustees in 2022 (2021 - £Nil).
Key management personnel
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of Blackheath Halls. Staff costs includes remuneration paid to key management personnel. The key management personnel is the Director of Blackheath Halls.
----- Start of picture text -----
2022 2021
£ £
Remuneration 59,813 58,776
Pension Costs 11,595 11,254
71,408 70,030
----- End of picture text -----
30
THE BLACKHEATH HALLS
For the year ended 31 July 2022
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
11 Tangible Fixed Assets
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|---|---|---|---|---|---|---|---|
|Fixtures,|
|Freehold|Long|Fittings &|Assets in|
|Land and|Leasehold|Leasehold|Kitchen|Course of|Musical|
|Group|Buildings|Buildings|Improvements|Equipment|Construction|Instruments|Total|
|£|£|£|£|£|£|£|
|At 1 August 2021|1,270,245|1,413,005|3,250,741|335,454|30,186|14,570|6,314,201|
|Additions|-|-|3,900|14,279|16,682|6,258|41,119|
|At 31 July 2022|1,270,245|1,413,005|3,254,641|349,733|46,868|20,828|6,355,320|
|Depreciation|
|-|
|At 1 August 2021|38,190|58,526|481,041|322,758|14,570|915,085|
|Charge for year|5,905|8,361|156,010|6,152|-|1,252|177,680|
|At 31 July 2022|44,095|66,887|637,051|328,910|-|15,822|1,092,765|
|Net Book Value|
|At 31 July 2022|1,226,150|1,346,118|2,617,590|20,823|46,868|5,006|5,262,555|
|At 31 July 2021|1,232,055|1,354,479|2,769,700|12,696|30,186|-|5,399,116|
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The long leasehold buildings comprise the fabric of the halls with the freehold land and buildings comprising of the substation and the surrounding land.
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|---|---|---|---|---|---|---|---|
|Fixtures,|
|Freehold|Long|Fittings &|Assets in|
|Land and|Leasehold|Leasehold|Kitchen|Course of|Musical|
|Charity|Buildings|Buildings|Improvements|Equipment|Construction|Instruments|Total|
|£|£|£|£|£|£|£|
|At 1 August 2021|1,270,245|1,413,005|3,239,469|314,285|30,186|14,570|6,281,760|
|Additions|-|-|3,900|14,279|16,682|6,258|41,119|
|At 31 July 2022|1,270,245|1,413,005|3,243,369|328,564|46,868|20,828|6,322,879|
|Depreciation|
|-|
|At 1 August 2021|38,190|58,526|480,383|305,833|14,570|897,502|
|Charge for year|5,905|8,361|154,883|4,442|-|1,252|174,843|
|At 31 July 2022|44,095|66,887|635,266|310,275|-|15,822|1,072,345|
|Net Book Value|
|At 31 July 2022|1,226,150|1,346,118|2,608,103|18,289|46,868|5,006|5,250,534|
|At 31 July 2021|1,232,055|1,354,479|2,759,086|8,452|30,186|-|5,384,258|
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THE BLACKHEATH HALLS For the year ended 31 July 2022
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
| 12 Debtors Trade Debtors Other Debtors Prepayments and Accrued Income Due from Subsidiary Company |
Group Group Charity Charity 2022 2021 2022 2021 £ £ £ £ 25,729 10,218 4,386 - 14 6,475 4,761 6,475 17,995 10,935 17,214 10,622 - - 81,707 - |
|---|---|
| 43,738 27,628 108,068 17,097 |
|
13 Creditors: Amounts Falling Due Within One Year
| Due to Parent and Subsidiary Companies Trade Creditors Other Creditors Taxation and Social Security Accruals and Deferred Income |
Group Group Charity Charity 2022 2021 2022 2021 £ £ £ £ 638,614 636,120 551,198 590,375 50,633 20,571 50,320 20,481 4,068 8,301 4,080 8,311 598 5,762 - 5,762 122,631 150,776 86,247 134,051 |
|---|---|
| 816,544 821,530 691,845 758,980 |
Deferred Income
Included with accruals and deferred income are the following items of income which have been deferred until specfic performance related conditions have been met.
| Balance Brought Forward Income Released in Year Arts Council Grant Ticket Sales for Future Events Balance Carried Forward |
Group Group Charity Charity 2022 2021 2022 2021 £ £ £ £ 108,428 97,025 97,535 88,411 (108,428) (97,025) (97,535) (88,411) 27,778 27,778 27,778 27,778 35,901 80,650 18,415 69,757 |
|---|---|
| 63,679 108,428 46,193 97,535 |
14 Creditors: Amounts Falling Due After More Than One Year
| Long Term Interest Free Intercompany Loan Long Term Intercompany Loan Debenture Other Income |
Group Group Charity Charity 2022 2021 2022 2021 £ £ £ £ 560,000 560,000 560,000 560,000 507,255 532,255 507,255 532,255 250 250 250 250 408,055 435,833 408,055 435,833 |
|---|---|
| 1,475,560 1,528,338 1,475,560 1,528,338 |
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THE BLACKHEATH HALLS For the year ended 31 July 2022
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
15 Reserves
a) Group
| At 1 August 2020 Incoming Resources for Year Outgoing Resources for Year Capital Grants Utilised Transfer Between Reserves |
Unrestricted Funds Revaluation Reserve Total Unrestricted Funds Restricted Funds Unspent Capital Grants Total Restricted Funds Total £ £ £ £ £ £ £ 1,999,089 1,351,561 3,350,650 - - - 3,350,650 770,739 - 770,739 76,001 37,399 113,400 884,139 (680,483) - (680,483) (69,791) - (69,791) (750,274) 35,000 - 35,000 - (35,000) (35,000) - 14,191 (8,292) 5,899 (6,210) 311 (5,899) - |
|---|---|
| At 1 August 2021 Incoming Resources for Year Outgoing Resources for Year Capital Grants Utilised Transfer Between Reserves |
2,138,536 1,343,269 3,481,805 - 2,710 2,710 3,484,515 950,608 - 950,608 31,638 33,570 65,208 1,015,816 (1,132,565) - (1,132,565) (31,638) 2,974 (28,664) (1,161,229) 18,284 - 18,284 - (18,284) (18,284) - 8,292 (8,292) - - - - - |
| At 31 July 2022 | 1,983,155 1,334,977 3,318,132 - 20,970 20,970 3,339,102 |
| b) Charity At 1 August 2020 Incoming Resources for Year Outgoing Resources for Year Capital Grants Utilised Transfer Between Reserves |
Unrestricted Funds Revaluation Reserve Total Unrestricted Funds Restricted Funds Unspent Capital Grants Total Restricted Funds Total £ £ £ £ £ £ £ 1,994,340 1,351,561 3,345,901 - - - 3,345,901 715,228 - 715,228 76,001 25,000 101,001 816,229 (618,354) - (618,354) (69,791) - (69,791) (688,145) 22,601 - 22,601 - (22,601) (22,601) - 14,191 (8,292) 5,899 (6,210) 311 (5,899) - |
|---|---|
| At 1 August 2021 Incoming Resources for Year Outgoing Resources for Year Capital Grants Utilised Transfer Between Reserves Donations from Subsidiary Made Under the Gift Aid Scheme |
2,128,006 1,343,269 3,471,275 - 2,710 2,710 3,473,985 747,896 - 747,896 31,638 33,570 65,208 813,104 (1,013,223) - (1,013,223) (31,638) 2,974 (28,664) (1,041,887) 18,284 - 18,284 - (18,284) (18,284) - 8,292 (8,292) - - - - - 84,534 - 84,534 - - - 84,534 |
| At 31 July 2022 | 1,973,789 1,334,977 3,308,766 - 20,970 20,970 3,329,736 |
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THE BLACKHEATH HALLS For the year ended 31 July 2022
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
16 Group and Charity Restricted Funds
| Restricted Donations Restricted Capital Grants Total Restricted Funds |
At 1 August 2021 Income Expenditure Capital grants utilised At 31 July 2022 £ £ £ £ £ - 31,638 (31,638) - - 2,710 33,570 2,974 (18,284) 20,970 |
|---|---|
| 2,710 65,208 (28,664) (18,284) 20,970 |
Restricted donations are made by the Arts Council for the provision of education and community projects. Restricted capital grants have been received to fund various capital projects e.g. landscaping works, stage lift.
17 Analysis of Total Group Funds
| Fixed Assets Current Assets Current Liabilities Long Term Liabilities Total Funds 2021 Fixed Assets Current Assets Current Liabilities Long Term Liabilities Total Funds 2022 |
Unrestricted Funds Revaluation Reserve Restricted Capital Grants Total 2021 2021 2021 2021 £ £ £ £ 4,055,847 1,343,269 - 5,399,116 432,557 - 2,710 435,267 (821,530) - - (821,530) (1,528,338) - - (1,528,338) |
|---|---|
| 2,138,536 1,343,269 2,710 3,484,515 |
|
| Unrestricted Funds Revaluation Reserve Restricted Capital Grants Total 2022 2022 2022 2022 £ £ £ £ 3,927,578 1,334,977 - 5,262,555 347,681 - 20,970 368,651 (816,544) - - (816,544) (1,475,560) - - (1,475,560) |
|
| 1,983,155 1,334,977 20,970 3,339,102 |
18. Company limited by Guarantee
The limit of the total guarantees of the member of the Charity amounted to £1 at 31 July 2022 (2021– £1).
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THE BLACKHEATH HALLS For the year ended 31 July 2022
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
19. Related party transactions
Blackheath Halls had transactions with the following related parties during the year. The charity trustees had an interest in, or influence over these entities. All these related party transactions were held at “arm’s length”.
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(Expenditure)/ Debtor/(Creditor)
Trustee/ Nature of Income Balance
Related Party Director Relationship 2022 2021 2022 2021
£ £ £ £
Trinity College London Anthony Bowne Board Member - (98) - -
Friends of Blackheath Halls Joan Ruddock Trustee 9,013 7,548 - -
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20. Ultimate controlling party
The Charity is a wholly owned subsidiary of Trinity Laban Conservatoire of Music and Dance, a company registered in England and Wales and a registered charity. Trinity Laban’s charitable purposes as set out in its Memorandum of Association are to advance the art and science of music, dance and associated art forms generally for the public benefit and to improve the professional and technical education of music, dance and other students. The Board of Trinity Laban Conservatoire of Music and Dance has the power to appoint and remove the majority of Trustees from the board of the Blackheath Halls. Trinity Laban Conservatoire of Music and Dance registered office and company and charity number are as detailed below. Consolidated accounts for the group of which Blackheath Halls is a subsidiary can also be obtained here:
Trinity Laban Conservatoire of Music and Dance King Charles Court Old Royal Naval College Greenwich SE10 9JF Company No: 51090, Charity No: 309998
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