Charity number: 288309 Company number: 00888435
THE SIR JOHN HURT FILM TRUST LIMITED (FORMERLY CINEMA CITY LIMITED)
(A company limited by guarantee)
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
THE SIR JOHN HURT FILM TRUST LIMITED
(A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the charity, its trustees and advisers | 1 |
| Chairman's statement | 2 - 4 |
| Trustees' report | 5 - 8 |
| Independent examiner's report | 9 |
| Statement of financial activities | 10 |
| Balance sheet | 11 |
| Notes to the financial statements | 12 - 21 |
THE SIR JOHN HURT FILM TRUST LIMITED
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2021
Trustees
Philip Easter, Chair Michael Hutchinson Jaan Larner Julian Swainson Lady Anwen Hurt Andrew Newman Karen Buchanan (appointed 23 September 2021)
Company registered number
00888435
Charity registered number
288309
Registered office
Cinema City, St Andrew's Street, Norwich, Norfolk, NR2 4AD
Page 1
THE SIR JOHN HURT FILM TRUST LIMITED (A company limited by guarantee)
CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2021
The chairman presents his statement for the period.
Summary
The year 2020/21 (ending September 2021) was for the Sir John Hurt Film Trust – like most charities – an extremely challenging one, with the ongoing Covid pandemic seeing extended periods of lockdown and severe restrictions on the delivery of its charitable objectives.
Just nine days after the start of the year, our tenant Cineworld/Picturehouse – whose commercial activities provide the lion’s share of the Trust’s income – decided unilaterally to close Cinema City, for the (publicly-stated) reason of the delay to the release of the Bond movie ‘No Time To Die’. There was no government mandate for cinemas to close at this time. The Trust was not consulted about this closure, and learned of it through media reports (as did, we understand, the cinema’s staff).
Whilst we recognise that all cinemas were facing particular challenges as a result of the pandemic, the nature of Cinema City as an arthouse theatre (as prescribed in the Service Level Agreement between the Trust and Cineworld/Picturehouse) negates the publicly-stated reason for the closure. Cinema City is not, and never has been, about simply relying on the latest blockbuster which is already on screen at every multiplex.
The release of a number of films in the autumn of 2020, including Saint Maud, Kajillionaire, Herself and The War With Grandpa, Pixie, The Secret Garden, Luxor, Supernova and Dune (all before Christmas 2020) suggests that Cinema City should have been a viable concern, and that there was no need to close its doors simply because of the well-documented wider travails of Cineworld.
The Trust called on Cineworld/Picturehouse to rethink their decision; sadly – and not unexpectedly – they did not even reply to our communications.
Cineworld/Picturehouse also unilaterally decided not to pay any rent for the period the cinema was closed, despite there being a mechanism to reduce the rent payable based on reduction in turnover. Given that the cinema did not open again until May 2021, this decision has had a major impact on both the income of the Trust and its ability to deliver against its charitable objectives.
Much of the energy of the Trustees during the year in question has been expended endeavouring to ensure the Trust remained financially healthy, and in a position to resume delivery of its activities once both financial and Covid restrictions eased. At the end of the period being reported, plans were well advanced to achieve this.
Despite the issues we have faced, the Trust remains in a strong position, thanks in no small measure to the help of a small number of freelance consultants (some of whom have offered their services at a less than commercial rate, and even pro-bono) and a greater day-to-day input from Trustees, for which as Chairman I am very grateful.
Finance
Because of the refusal of our tenant to pay even the most basic rent to us during the Covid period (notwithstanding the mechanism within the lease agreement to adjust rent in relation to turnover), we ended the year with a deficit of £3,476. Although this is a reduction from the September 2020 figure of £25,000 surplus, it is still a considerably healthier financial position than the £55,000 deficit at the end of the year 2017/18.
The charity has no outstanding debts and so is in a position to resume delivering more fully against its charitable activities in the coming year, especially once the outstanding debt from our tenant is paid.
The accrued debt from Cineworld/Picturehouse at 30th September 2021 is £23,210, and the Trustees continue to pursue this vigorously.
Now that the Covid pandemic is receding, we are once again starting to see room hire income from the Sir John Hurt Centre, and we continue to market this proactively to both charitable and commercial organisations.
Page 2
THE SIR JOHN HURT FILM TRUST LIMITED
(A company limited by guarantee)
CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2021
In last year’s report we outlined discussions we were undertaking with another charity with a view to them basing their activities in the Sir John Hurt Centre, which would have provided another ongoing income. Unfortunately the Covid pandemic led to this charity reviewing its operations, and they have decided not to pursue this option. We continue to look for a suitable and appropriate partner to work with in this regard, in order to maximise our income and reduce our financial dependence on Cineworld/Picturehouse.
Picturehouse Cinemas (Norwich) Ltd
The commercial undertakings of the cinema operation, bar and restaurant are sub-contracted to Picturehouse Cinemas Limited (Norwich). The Trust receives a less-than-commercial rental income from Cineworld/Picturehouse.
Despite the low overhead costs it enjoys, and the fact that Picturehouse is a subsidiary of the global cinema giant Cineworld (the second largest cinema group in the world), the Trustees are disappointed to note once again that Cineworld/Picturehouse has failed to engage with the Trust, performed poorly when the cinema was open, and was less than proactive in reopening the cinema and attracting audiences once the Covid restrictions eased.
Both prior to the closure and since reopening, the company has performed poorly in terms of compliance with the artistic and cultural requirements of the SLA, in maintenance and investment in the cinema, and in a reluctance to engage constructively with the Trust.
During the cinema’s closure Cineworld/Picturehouse made it clear that they intended to default completely on the rent due. This is despite the arrangement we have whereby a small base rent is payable, and the remainder of their rent is based on the turnover of the cinema and its associated activities (e.g. bar and restaurant) – an arrangement which effectively provides a contingency for enforced closure. The Trustees do not accept Cineworld/Picturehouse’s position, and continue to pursue the outstanding rent due.
The continued lack of communication from Cineworld/Picturehouse and refusal to engage with the Trust in any way at all, despite repeated attempts by us to do so – leads us to question Cineworld/Picturehouse’s commitment to delivering the SLA for the long term.
We also note reports about the very large level of debt that Cineworld is carrying in its global business, and express concern about the company’s potential long-term viability. We have sought clarity from Cineworld/Picturehouse about what this means in practice, but have so far received no response.
We are concerned that Cineworld/Picturehouse is not actively seeking to maximise the income from the operation of Cinema City. A lacklustre marketing performance has seen considerably reduced admits since the reopening of the cinema, and the company has mothballed the restaurant at the cinema, which was a healthy contributor to the turnover of the cinema as a whole – and hence the charity’s income.
We continue to press Picturehouse and its parent company to fulfil their cultural brief under the terms of the Service Level Agreement, to pay the rent which is due, to engage with the Trust, and to act in a manner which would suggest they are committed to the sustainability and success of the cinema.
Activity
With the Covid pandemic continuing to restrict the activities we could deliver – coupled with the lack of income from Cineworld/Picturehouse’s refusal to pay the rent due – our charitable activities have once again been much reduced this year. However, some programmes were able to be delivered, both face-to-face where possible, and via online channels where this was not possible.
These included:
• Positive Cinema, a film project aimed at helping disadvantaged young people in Norfolk, which was launched in January 2020, and which was able to embrace Zoom and WhatsApp, as well as filming monologues using local actors. The project ran until January 2021.
Page 3
THE SIR JOHN HURT FILM TRUST LIMITED (A company limited by guarantee)
CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2021
• The charity supported financially the Met Film School in its production of a feature-length musical film.
• As the year ended, the easing of Covid restrictions saw the resumption of The Moving Memories project, working with people with dementia, including dementia-friendly screenings.
• The Trust worked with adult learning charity Workers Educational Association in the creation of a six week course, ‘Sound And Vision: The Role Of Music in Film’
Future Prospects
As we write, the easing of Covid restrictions, coupled with the resumption of rent payments by our tenant (although this does not include the back-rent still owing) means that we are restarting many of the charitable activities which have been suspended for Covid and financial reasons.
Despite the debt from Cineworld/Picturehouse, the Trust is in a strong financial position, due to prudent management and the hard work of its voluntary Board of Trustees.
A key priority will be to ensure the cinema becomes fully operational – and financially successful - once again, that the operator fulfils its artistic and operational obligations by delivering against the SLA, and that it fulfils its financial obligations by paying in full the overdue and ongoing rent.
Name Philip Easter Chairman
Date: 22/06/22
Page 4
THE SIR JOHN HURT FILM TRUST LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021
The Trustees present their annual report together with the financial statements of the charity for the 1 October 2020 to 30 September 2021. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required
Objectives and Activities
a. Policies and objectives
The objectives of the charity are to advance the education of the public in film and the moving image as an art and as a medium for information, education and social enlightenment. The charity seeks to provide the public of Norwich and the surrounding area with the opportunity to experience a wide ranging programme of cultural cinema and related activities with the aim of enhancing the audience’s appreciation, enjoyment and understanding of film.
The Sir John Hurt Film Trust Limited is a charitable organisation in Norfolk that uses the popular medium of moving image to engage, educate, enrich and inspire the Norfolk community.
The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.
Achievements and performance
a. Key financial performance indicators
See Chair's report.
Financial review
a. Going concern
The financial position of the charity has again been challenging for the last 12 months, however there are considerable reasons for optimism as to its financial sustainability for the coming year. Ongoing costs have continued to be almost eliminated. The charity runs almost entirely on a voluntary basis, with Trustees continuing to operate in roles which had in previous years been undertaken on a paid basis.
Whilst we are now entitled to 100% of the Turnover rent during this period, as already explained our Tenant, Cineworld/Picturehouse has refused to pay most of the base rents due. Notwithstanding this, we have no loans or outstanding debt incurring interest. Instead we have used our resources to repay all of the outstanding balances and accrued interest.
At the beginning of this period we were again optimistic we could finally expand the charity and use the facilities in the John Hurt Centre to enable the charity to meet its objectives and increase the ongoing income from these valuable resources. However, the cinema and its facilities were understandably drastically impacted by the pandemic and as the charity’s income is heavily reliant on the success of the cinema operations run by Cineworld/Picturehouse, this was out of our control and use of the John Hurt Centre was restricted.
Page 5
THE SIR JOHN HURT FILM TRUST LIMITED (A company limited by guarantee)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 30 SEPTEMBER 2021
The Trustees have eliminated many of the cost uncertainties, which means that the impact of the unpaid rental income from Cineworld/Picturehouse has largely been mitigated. The pandemic has also had a significant impact on grants from Trusts and Foundations, and Statutory Funds.
The trustees are of the view that the actions they have taken in recent years have secured the immediate future of the charity and that on this basis the charity is a going concern.
As we write, our operations, like so many others, have continued to be negatively impacted by the Coronavirus Pandemic. However, with the skillful management of the Board of Trustees, we remain in a robust financial position. Our projections show that we can continue as a going concern and remain solvent even in the unlikely event of no income at all, at least through to September 2024.
b. Financial risk management objectives and policies
Total incoming resources for the year were £68,920 compared to £103,818 for the 12 months ended 30 September 2020. Total resources expended, excluding depreciation, decreased by £6,650 from £69,768 in the 12 month period ended 30 September 2020 compared to £63,118 for the year.
The charity reports net outgoings resources from the pursuit of ordinary charitable activities of £3,476 for the year ended 30 September 2021 compared to net incoming resources of £24,772 in the period ended 30 September 2020.
The statement of funds in note 13 shows the movement in the Charity’s funds in the year. An explanation of the nature and purpose of each restricted fund is also give in note 13.
c. Reserves policy
Given the reasons explained above in the Chair’s report, the charity does not currently have surplus funds to maintain a reserve, but as explained the charity is addressing its financial situation and the Trustees are confident that they have sufficient resources to remain in a stable position.
d. Principal funding
The charity’s principal revenue funding resources for the year should have been the rental income from Cineworld/Picturehouse to manage the cinema operation, bar and restaurant at Cinema City on the charity’s behalf. As explained the charity is still pursuing outstanding rent from the Tenant.
Structure, governance and management
a. Constitution
The company is a registered charity and company limited by guarantee and was set up on 26 September 1966 as Norfolk and Norwich Film Theatre Limited. In August 2014, the charity changed its name to Cinema City Limited. In November 2019 the charity relaunched as The Sir John Hurt Film Trust Limited. Assuming a wider role in promoting great cinema right across Norfolk. It is governed by a Memorandum and Articles of Association.
The charitable company has no share capital and is limited by guarantee. Each member is liable to contribute £1 to the assets of the company in the event of its winding up and total members may not exceed 50. At 30 September 2021 the company has 6 such members.
Page 6
THE SIR JOHN HURT FILM TRUST LIMITED (A company limited by guarantee)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 30 SEPTEMBER 2021
In the event of the charitable company being wound up with surplus funds, no member shall be entitled to participate in the distribution of this surplus. The funds remaining after settlement of all debts and liabilities will be transferred to organisations pursuing similar objectives to those of this charity.
b. Method of appointment or election of Trustees
Trustees are appointed at a general meeting of the organisation in accordance with the Memorandum and Articles of Association.
c. Organisational structure and decision making
The charity delivers its charitable aims and objectives effectively and actively through the Board of Trustees, who operate on a voluntary basis. They are well supported by a small part-time administration team.
The cinema, restaurant and bar operations at Cinema City are undertaken on behalf of the Trustees by Cineworld/Picturehouse under a management contract. The Sir John Hurt Film Trust Limited Board monitors the performance of Cineworld/Picturehouse according to the terms of the Service Level Agreement and is responsible for seeing the agreed operating standards are met.
d. Risk management
The Board reviews the risks of the charitable company on a regular basis and has implemented policies and procedures to mitigate exposure to these risks. In addition, a review of all financial risks is undertaken on a regular basis.
Plans for future periods
a. Future developments
In a climate of ongoing cuts to funding and increasing competition for grants, the Board of Trustees are aware that in order to operate successfully and achieve educational aims and objectives, The Sir John Hurt Film Trust Limited must become less reliant on grants and increase its earned income. The development of The John Hurt Centre is a key factor in helping us to do this and, as stated in the Chair’s report, the Board continues to review its relationship with Cineworld/Picturehouse. As we move through this process, the organisation has used its skills and strengths to preserve a healthy financial position.
Trustees' responsibilities statement
The trustees (who are also directors of The Sir John Hurt Film Trust Limited for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
Page 7
THE SIR JOHN HURT FILM TRUST LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 30 SEPTEMBER 2021
-
make judgments and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report was approved by the Trustees, on 22/06/22 and signed on their behalf by:
................................................ Philip Easter
Chair of The Sir John Hurt Film Trust Ltd
Page 8
THE SIR JOHN HURT FILM TRUST LIMITED (A company limited by guarantee)
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021
Independent examiner's report to the Trustees of The Sir John Hurt Film Trust Limited (the 'charity')
I report to the charity Trustees on my examination of the accounts of the charity for the year ended 30 September 2021.
This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's Trustees as a body, for my work or for this report.
Responsibilities and basis of report
As the Trustees of the charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I can confirm that no other matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signed: Dated:
Julie Grimmer FCA DChA
Larking Gowen LLP Chartered Accountants King Street House 15 Upper King Street Norwich NR3 1RB
Page 9
THE SIR JOHN HURT FILM TRUST LIMITED
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2021
| Note Unrestricted funds 2021 £ Income from: Donations and legacies 2 48,000 Charitable activities 3 1,302 Other trading activities 4 19,618 Total income 68,920 Expenditure on: Charitable activities 70,121 Total expenditure 7 70,121 Net income / (expenditure) before other recognised gains and losses (1,201) Net movement in funds (1,201) Reconciliation of funds: Total funds brought forward 11,204 Total funds carried forward 10,003 |
Restricted funds 2021 £ - - - - 2,275 2,275 (2,275) (2,275) 343,193 340,918 |
Total funds 2021 £ 48,000 1,302 19,618 68,920 72,396 72,396 (3,476) (3,476) 354,397 350,921 |
Total funds 2020 £ 50,000 3,247 50,571 |
|---|---|---|---|
| 103,818 | |||
| 79,046 | |||
| 79,046 | |||
| 24,772 24,772 329,625 |
|||
| 354,397 |
The notes on pages 12 to 21 form part of these financial statements.
Page 10
THE SIR JOHN HURT FILM TRUST LIMITED
(A company limited by guarantee) REGISTERED NUMBER: 00888435
BALANCE SHEET AS AT 30 SEPTEMBER 2021
| Note Fixed assets Tangible assets 9 Current assets Debtors 10 Cash at bank and in hand Creditors:amounts falling due within one year 11 Net current assets Net assets Charity Funds Restricted funds 12 Unrestricted funds 12 Total funds |
£ 28,269 18,788 47,057 (18,449) |
2021 £ 322,313 28,608 350,921 340,918 10,003 350,921 |
£ 8,651 21,169 29,820 (7,014) |
2020 £ 331,591 22,806 354,397 343,193 11,204 354,397 |
|---|---|---|---|---|
The charity's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The Trustees consider that the charity is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the charity to obtain an audit for the year in question in accordance with section 476 of the Act.
The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees on 22/06/22 and signed on their behalf, by:
................................................
Philip Easter
The notes on pages 12 to 21 form part of these financial statements.
Page 11
THE SIR JOHN HURT FILM TRUST LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Sir John Hurt Film Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
1.2 Company status
The charity is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
1.3 Going concern
As detailed more fully on pages 5 and 6 of the Trustees' report, the trustees have considered the charity's ability to continue to operate despite the continuing restrictions imposed by the Coronavirus Pandemic. Taking into account of the measures taken to stabilise the position, detailed control exercised by Trustees and the cash resources available, the trustees remain confident that the charity remains solvent and can continue for the forseeable future, as such the Trustees conclude it remains appropriate for the financial statements to be prepared on a going concern basis.
Page 12
THE SIR JOHN HURT FILM TRUST LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
1. Accounting policies (continued)
1.4 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Voluntary income includes grants that provide core funding or are of a general nature. These are recognised when there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.
Income from activities for generating funds is recognised as earned (as the related goods and services are provided).
Investment income is recognised on a receivables basis.
Income from charitable activities is recognised as earned (as the related goods and services are provided).
Capital development grants and donations are credited to a restricted purpose capital fund within the statement of financial activities. They are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.
Rental income is recognised on a receivables basis.
Where services and gifts are provided to the charity as a donation that would normally be purchased from our suppliers, this contribution is included in the financial statements as an estimate based on the value of the contribution to the charity.
1.5 Volunteers
The value of services provided by volunteers is not incorporated into these financial statements. Cinema Plus has the assitance of one regular volunteer for school events.
1.6 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.
1.7 Tangible fixed assets and depreciation
Individual expenditure on tangible assets costing more than £250 or more is capitalised at purchase price. All fixed assets are used for charitable purposes.
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THE SIR JOHN HURT FILM TRUST LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
1. Accounting policies (continued)
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is not charged on freehold land. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Fixtures, fittings, cinema and - over 3-4 years office equipment Computer equipment - over 3 years
1.8 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
1.9 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.10 Cash at Bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.11 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
1.12 Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.13 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
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THE SIR JOHN HURT FILM TRUST LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
2. Income from donations and legacies
| Income from donations and legacies | |||||
|---|---|---|---|---|---|
| Unrestricted funds 2021 £ Donations 48,000 Grants - Total donations and legacies 48,000 Total 2020 50,000 Grants North Norfolk District Council Awards for All-Moving Memories National Lottery Awards for All Total grants |
Restricted funds 2021 £ - - - - |
Total funds 2021 £ 48,000 - 48,000 50,000 2021 £ - - - - |
Total funds 2020 £ 48,000 2,000 50,000 |
||
| 2020 £ 2,000 - - |
|||||
| 2,000 |
The donation from Norwich City Council and others related to in kind rent of the premises and venue hire. This is wholly dependent on the charitable activities being maintained.
3. Income from charitable activities
| Unrestricted funds 2021 £ Education courses and admission fees 1,302 Total 2020 3,247 |
Restricted funds 2021 £ - - |
Total funds 2021 £ 1,302 3,247 |
Total funds 2020 £ 3,247 |
|---|---|---|---|
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THE SIR JOHN HURT FILM TRUST LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
4. Fundraising income
| Fundraising income | Fundraising income | Fundraising income | |||||
|---|---|---|---|---|---|---|---|
| Unrestricted funds 2021 £ Sundry sales - Rent of cinema 19,618 19,618 Total 2020 50,571 Direct costs Education £ Cinema plus direct costs 7,779 Printing, stationery and postage 246 Press advertising and other 271 Consultancy 1,429 Overheads 81 Positive cinema project 2,275 Depreciation - 12,081 Total 2020 17,578 |
Restricted funds 2021 £ - - - - Norfolk At The Pictures £ - - - - - - 9,278 9,278 9,278 |
Total funds 2021 £ - 19,618 19,618 50,571 Total 2021 £ 7,779 246 271 1,429 81 2,275 9,278 21,359 26,856 |
Total funds 2020 £ 70 50,501 50,571 Total 2020 £ 4,751 730 125 3,455 5,053 3,464 9,278 26,856 |
||||
| 19,618 | |||||||
| 50,571 | |||||||
| Education £ 7,779 246 271 1,429 81 2,275 - 12,081 |
|||||||
| 17,578 |
5. Direct costs
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THE SIR JOHN HURT FILM TRUST LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
6. Support costs
| Governance £ In kind rent and venue hire - Insurances Legal and independent examination fees - 2,374 Loan interest - 2,374 Total 2020 2,763 |
Education £ 48,000 663 - - 48,663 49,427 |
Total 2021 £ 48,000 663 2,374 - 51,037 52,190 |
Total 2020 £ 48,000 648 2,763 779 52,190 |
|---|---|---|---|
Support costs are allocated on a basis consistent with the use of resources.
7. Analysis of Expenditure by expenditure type
| Depreciation 2021 £ Other costs 2021 £ Education - 60,744 Norfolk at The Pictures 9,278 - Charitable activities 9,278 60,744 Expenditure on governance - 2,374 9,278 63,118 Total 2020 9,278 69,768 |
Total 2021 £ Total 2020 £ 60,744 67,005 9,278 9,278 70,022 76,283 2,374 2,763 72,396 79,046 79,046 |
|---|---|
8. Net income/(expenditure)
This is stated after charging:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets: | ||
| - owned by the charity | 9,278 | 9,278 |
| Independent examination costs | 2,100 | 2,040 |
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THE SIR JOHN HURT FILM TRUST LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
9. Tangible fixed assets
| Cost At 1 October 2020 and 30 September 2021 Depreciation At 1 October 2020 Charge for the year At 30 September 2021 Net book value At 30 September 2021 At 30 September 2020 |
Fixtures, Fittings & Cinema Equipment £ 411,071 411,071 - 411,071 - - |
Computer & Office Equipment £ 100,541 100,541 - 100,541 - - |
Leasehold Improvements £ 371,116 39,525 9,278 48,803 322,313 331,591 |
Total £ 882,728 |
|---|---|---|---|---|
| 551,137 9,278 |
||||
| 560,415 | ||||
| 322,313 | ||||
| 331,591 |
All assets are used for charitable purposes.
The charity has a leasehold interest over the land on which the capital development stands under a 125 year lease.
Legal charges over the leasehold property are held by the Trustees of the National Heritage Memorial Fund and the Arts Council of England.
10. Debtors
11.
| Other debtors Creditors: Amounts falling due within one year Accruals and deferred income |
2021 £ 28,269 2021 £ 18,449 |
2020 £ 8,651 2020 £ 7,014 |
|---|---|---|
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THE SIR JOHN HURT FILM TRUST LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
12. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds - all funds Restricted funds Capital Development Fund Awards for All - Positive Cinema Project NNDC - Moving Memories Total of funds |
Balance at 1 October 2020 £ 11,204 335,431 6,187 1,575 343,193 354,397 |
Income £ Expenditure £ 68,920 (70,121) - - - (2,275) - - - (2,275) 68,920 (72,396) |
Balance at 30 September 2021 £ 10,003 |
|---|---|---|---|
| 335,431 3,912 1,575 340,918 |
|||
| 350,921 |
Statement of funds - prior year
| Statement of funds - prior year | ||||
|---|---|---|---|---|
| General Funds - all funds Restricted funds Capital Development Fund Awards for All - Positive Cinema Project NNDC - Moving Memories |
Balance at 1 October 2018 £ Income £ (15,084) 101,818 344,709 - - - - 2,000 344,709 2,000 |
Expenditure £ (65,879) |
Transfers in/out £ (9,651) |
Balance at 30 September 2020 £ 11,204 |
| (9,278) (3,464) (425) (13,167) |
- 9,651 - 9,651 |
335,431 6,187 1,575 343,193 |
Page 19
THE SIR JOHN HURT FILM TRUST LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
Summary of funds - current year
| General funds Restricted funds |
Balance at 1 October 2020 £ 11,204 343,193 354,397 |
Balance at 30 September Income £ Expenditure £ 2021 £ 68,920 (70,121) 10,003 - (2,275) 340,918 68,920 (72,396) 350,921 |
|---|---|---|
Summary of funds - prior year
| General funds Restricted funds |
Balance at 1 October 2018 £ (15,084) 344,709 329,625 |
Balance at 30 Transfers September Income £ Expenditure £ in/out £ 2020 £ 101,818 (65,879) (9,651) 11,204 2,000 (13,167) 9,651 343,193 103,818 (79,046) - 354,397 |
|---|---|---|
13. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2021 £ Restricted funds 2021 £ Tangible fixed assets - 322,313 Current assets 28,452 18,605 Creditors due within one year (18,449) - 10,003 340,918 |
Total funds 2021 £ 322,313 47,057 (18,449) 350,921 |
|---|---|
Page 20
THE SIR JOHN HURT FILM TRUST LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
13. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year
| Unrestricted funds 2020 £ Restricted funds 2020 £ Tangible fixed assets - 331,591 Current assets 18,218 11,602 Creditors due within one year (7,014) - 11,204 343,193 |
Total funds 2020 £ 331,591 29,820 (7,014) 354,397 |
|---|---|
14. Related party transactions
There were no related party transactions during the current year.
During the prior year, one trustee provided professional services to the charity totaling £1,875). All transactions were made on an arms length basis.
Page 21