HON. TREASURER’S REPORT FOR THE YEAR ENDED 30[TH] JUNE 2022
I am pleased to present the income and expenditure accounts that have been submitted to our independent examiner (Smailes Goldie, Chartered Accountants), for which there is an excess of income over expenditure of £11,091.71.
A very pleasing financial year which of course included the first half of our Centenary. The main contribution to income was from our production of ‘Shrek’ with a £11.7k surplus in the financial year and an £8.7k surplus overall. It was fantastic to be back performing on stage in front of live audiences again, and whilst there was understandably still some caution from the public in attending live events, a box office over 70% for Shrek was a great achievement.
Other main sources of income came from our panto, ‘Robinson Crusoe’, which generated a surplus of £1,716.01, and again we had a well-attended production given the challenges with Covid last December. There was notable income from the bar, raffle, merchandise and ice cream sales, so well done to all involved. In addition, membership subscriptions amounted to £3,120. We also received a donation of £1,000 from Jan Brumby for the HTC Centenary party and £500 from Lloyds Bank. Finally, Gift Aid income was £1,156.76 which covered the last 2 years, and also assisted by a larger number of members supporting this.
As for expenditure, the main costs were Regent’s House at £2,582, up from £2,438 last year, and our insurance costing £1455, partly due to extra costs for Shrek. There was also a deficit of £1,520.76 for the HTC Centenary Party that we had budgeted for, with a donation agreed for the event from HTC for this wonderful celebration night. Again, well done to all involved.
As a reminder, the management team will be reviewing the ‘Reserves Policy’ we established in 2013 and after the 2021/22 financial statements are finalised, an update will be sent out prior to and discussed at the AGM. Good housekeeping and a considerable team effort ensures our balance sheet remains strong. We must continue to look for additional income streams such as sponsorship and fundraising, in order to continue performing in the larger venues on a regular basis.
– Hessle Theatre Company (HTC) Reserves Policy (August 2022)
Introduction – Why a Reserves Policy?
As per communications from the Charity Commission and their ‘Statement of Recommended Practice’ (SORP), we formulated this policy in December 2012 (since revised and agreed at HTC Committee Meeting on Tuesday 30th August 2022). In putting this together, we have taken guidelines from a number of articles and information booklets written by the Charity Commission and various other professional bodies. We have also discussed and agreed the policy at length in HTC management committee meetings. By looking to identify risks and operational requirements, this has enabled us to determine the amounts of reserves required. This policy will form part of the ‘Treasurer’s Annual Report’ and the ‘Trustees Annual Report’, submitted annually to the Charities Commission for public viewing.
Reserves Policy for HTC
The guidelines on putting together a Reserves Policy state that “the level of reserves must be right for that charity”. HTC have decided on a range of reserves that are needed for the purposes described below, rather than a specific amount, due to the peaks and troughs we see in our type of business. The reserves we currently have enable us to perform at some of the region’s most prestigious venues, putting on quality, large scale productions with some financial confidence. Without these reserves, the likelihood is we wouldn’t have the resources or assurance to do this, due to the varied and often unknown amounts of income from productions, back into our business. This policy will be reviewed at least annually after our year end (June 30th) and before our AGM in September.
Covid update – The Charity Commission have given guidance and said that “reserves can be used to help with unexpected events like those unfolding at the present”. Organisations should carefully consider the wider and long-term impacts of using reserves and any such decision to use such funds must be taken collectively, and significant decisions and action points noted in writing.” At the time of writing (Aug 2022) HTC have not had to consider utilising our reserves and we will continue to monitor this.
Current Reserves
As at our last financial year-end (30/06/2022), the total reserves were £67,770.61, split as follows: National Savings = £31,955.50. Nat West Current Account = £35,185.01.
Nat West Reserve Account = £0.00 (**see Nat West Current & Reserves Accounts paragraph below).
Registered Charity No. 500483 Affiliated to NODA (National Operatic & Dramatic Association)
Range of Reserves and rationale
National Savings – reserves range of £30k to £35k (currently £31,955.50). These could probably be considered as ‘Designated Funds’ as the main purpose of these savings is primarily to replace lost income from any main theatrical production. The core cost of the New Theatre production usually ranges from £30k to £40k, so this covers us for any unforeseen event that is uninsurable, for example, very low box office for whatever reason. However, if this was needed for any other emergency, the funds are readily available.
Nat West Current & Reserve Accounts – reserves range of £10k to £35k (30/6/22 year-end £35,185.01 and £30,747.63 at 30/8/22). These accounts reserves vary in amount over the course of the year dependent on ongoing productions. The interestbearing Reserve Account feeds the Current account by transferring funds across as required depending on profit and loss projections for that production. It will usually pay for up-front costs of the production amounting to many thousands e.g. royalties, set, sound, costumes, props, orchestra etc. before any box office income is received. It will also fund any unforeseen day to day expenses that cannot be supported by funds in the current account and cover potential losses on productions. **Due to complexities of moving funds to the current account including monitoring of cash flow and the low interest rate in the Reserve account (0.1%), all Nat West funds have stayed in the current account during the last 12 months.
Richard Carmichael Hon. Treasurer 30th August 2022
Smailes Goldi¢ Group Charity number S483 Hessle Amateur OperaticlDramatic Society Financial Statements 30th June 2022 SD 0205901-1 6 ICAEW ACCOuNfAN7S
Hassle Amateur Operatic and Dramatic Society Contonts P4• Acoyjnianis. Tewt IrKcm•4twl SlaimntoFase* lithfth8
Unaudited Financlal Statèmènts lthrtheyvar•nW3QthJun•2022 Chartornd A¢¢ountant$' Report to Hessle Amateur Operatic and Dramatic Society In e0rd£e ¥fth our tsims of en9a98m8nt W8 hav8 Prépar yr a[Val the firA87 ¥tstetrths uf The He55le Arntstr 0petst DtsmaiK SwA8ty fw Ihe year vjwj 3thh JU[. 2022 on pau86 kn to th1 from tho r9 and fr nn2tion and oxrlanai1tyYQu glvgn us Aua wactlSin9 meMtrfirm the In¥bluleot¢hartWknntsThts In Eryiand and Wales IICAEWI.we21esub1& itsethul or0peS5jr84U1rnÉn1SwhharB8t3II•rs t ha[bk. Thls report is made soldy w you, In ardance 18rms dÈwagÈment. Our bEen undertaken to prepaie for your apprwal the flnan¢ial SleMen18 ol Tl es¥pAmawrOpviQd 0tiCSletYènSÈ m5&MlIer$iha11V¢hYe£greed to to YOU in thh report In arx%Ydan¢g wth thg guidanc8 ol ICAEW as detsilthl at eW.cutnlc(np1ry Tothe lullE51 eerni pemill by law. we do accepl Lwasw You havè ¥proved the fina[11 Slate3 Ihe year ed hJllne 2022 aj have knedged your reSwn$ibltyforlhem.lorlheapproprialfj¥ 01tanciaI rep(*tino IramÈwOrk 8thPtsd lor PIOVIJ9 all Informa1 and ex¥K)n5 n9¢9ssary for their IL4t. We ha¥e nolvre theawJraWorc4xnpl8t4nÈtsthÈ actntiO rtttrd&4rin1ormk ano exaratn5 YDU have gNen VS and we do not. iherefNe, exye6s any opiryw on ihe Smailos Gdd Chdrttt A¢cwnian Rèoenis co1 PritKxss Str8Ei Hdl EJ¥lYth¥hirF HU2 21st Sepbe1 2072
Hessle Amateur Operattc and Dramatic Society Incom• and EXndItUre Account ftth0iwwJ3(nB 2022 8,13(b 1045 fvndr Bank Intw.. Ir R*ènu8. tax rKoverdtle Sundrw(n•ti 1,1S7 11,746 8.611 'Rw"na Nknnc4ogueg' 'Ron60n CNèoo' 1.716 18.242 14, ExpvndtbJr• SubS(x1]ns-mOOA Iwr¥rKe Vewè Hlr6-UWt 172 Suf%lrleslnBtI ttc 124 1.$21 prodwbrTh.' 7.1&1 4.441 9)Ju$ for thèyttr 11,(2 10.927
Hessle Amateur Operatlc and Dramatic Society Statèmènt of Ass•ts and Liabilities 3(¥h JUM 2022 FiA•d aw4•ts Inv•¥trn•nts Nation31 seVin Bonk 1n¥estrntsALKVjllI 31, 31,8S2 83nk b3Lgn 35,815 24,727 67.771 56,67 CurrEntlillknliti Crodilats N¢t¢urr¢niaBMt6 67.7T1 56.679 Accurnul4tAd furtd At 1slJLly 2030 spIus tl o¥¢r¢¥pwdittstsltythoyear 56,679 11,(W 4e,3S2 1D.327 fj7,TT1 56,879 K. TodThk {Ch8imwnl R. caThha (Hon. TrwMr} M. 8•ouMont (Hon. Swetsy}
Smailes Goldi¢ Group Charity number S483 Hessle Amateur OperaticlDramatic Society Financial Statements 30th June 2022 SD 0205901-1 6 ICAEW ACCOuNfAN7S
Hassle Amateur Operatic and Dramatic Society Contonts P4• Acoyjnianis. Tewt IrKcm•4twl SlaimntoFase* lithfth8
Unaudited Financlal Statèmènts lthrtheyvar•nW3QthJun•2022 Chartornd A¢¢ountant$' Report to Hessle Amateur Operatic and Dramatic Society In e0rd£e ¥fth our tsims of en9a98m8nt W8 hav8 Prépar yr a[Val the firA87 ¥tstetrths uf The He55le Arntstr 0petst DtsmaiK SwA8ty fw Ihe year vjwj 3thh JU[. 2022 on pau86 kn to th1 from tho r9 and fr nn2tion and oxrlanai1tyYQu glvgn us Aua wactlSin9 meMtrfirm the In¥bluleot¢hartWknntsThts In Eryiand and Wales IICAEWI.we21esub1& itsethul or0peS5jr84U1rnÉn1SwhharB8t3II•rs t ha[bk. Thls report is made soldy w you, In ardance 18rms dÈwagÈment. Our bEen undertaken to prepaie for your apprwal the flnan¢ial SleMen18 ol Tl es¥pAmawrOpviQd 0tiCSletYènSÈ m5&MlIer$iha11V¢hYe£greed to to YOU in thh report In arx%Ydan¢g wth thg guidanc8 ol ICAEW as detsilthl at eW.cutnlc(np1ry Tothe lullE51 eerni pemill by law. we do accepl Lwasw You havè ¥proved the fina[11 Slate3 Ihe year ed hJllne 2022 aj have knedged your reSwn$ibltyforlhem.lorlheapproprialfj¥ 01tanciaI rep(*tino IramÈwOrk 8thPtsd lor PIOVIJ9 all Informa1 and ex¥K)n5 n9¢9ssary for their IL4t. We ha¥e nolvre theawJraWorc4xnpl8t4nÈtsthÈ actntiO rtttrd&4rin1ormk ano exaratn5 YDU have gNen VS and we do not. iherefNe, exye6s any opiryw on ihe Smailos Gdd Chdrttt A¢cwnian Rèoenis co1 PritKxss Str8Ei Hdl EJ¥lYth¥hirF HU2 21st Sepbe1 2072
Hessle Amateur Operattc and Dramatic Society Incom• and EXndItUre Account ftth0iwwJ3(nB 2022 8,13(b 1045 fvndr Bank Intw.. Ir R*ènu8. tax rKoverdtle Sundrw(n•ti 1,1S7 11,746 8.611 'Rw"na Nknnc4ogueg' 'Ron60n CNèoo' 1.716 18.242 14, ExpvndtbJr• SubS(x1]ns-mOOA Iwr¥rKe Vewè Hlr6-UWt 172 Suf%lrleslnBtI ttc 124 1.$21 prodwbrTh.' 7.1&1 4.441 9)Ju$ for thèyttr 11,(2 10.927
Hessle Amateur Operatlc and Dramatic Society Statèmènt of Ass•ts and Liabilities 3(¥h JUM 2022 FiA•d aw4•ts Inv•¥trn•nts Nation31 seVin Bonk 1n¥estrntsALKVjllI 31, 31,8S2 83nk b3Lgn 35,815 24,727 67.771 56,67 CurrEntlillknliti Crodilats N¢t¢urr¢niaBMt6 67.7T1 56.679 Accurnul4tAd furtd At 1slJLly 2030 spIus tl o¥¢r¢¥pwdittstsltythoyear 56,679 11,(W 4e,3S2 1D.327 fj7,TT1 56,879 K. TodThk {Ch8imwnl R. caThha (Hon. TrwMr} M. 8•ouMont (Hon. Swetsy}