Company registration number: 01279900 Charity registration number: 505656
Wyeside Arts Centre Limited
(A company limited by guarantee)
Annual Report and Financial Statements
for the Year Ended 31 March 2022
Wyeside Arts Centre Limited
Contents
| Reference and Administrative Details | 1 to 2 |
|---|---|
| Trustees' Report | 3 to 9 |
| Statement of Trustees' Responsibilities | 10 |
| Independent Examiner's Report | 11 |
| Statement of Financial Activities | 12 |
| Balance Sheet | 13 |
| Notes to the Financial Statements | 14 to 26 |
Wyeside Arts Centre Limited
Reference and Administrative Details
Trustees C J Lancaster D T Lloyd J R M Walker S J Best D R Price H A S Chance L G Roberts F R J Banks M S Wooldridge J R Andrews A R Kaur-Dhaliwal C E L Kenyon-Wade D A Childs Secretary C J Lancaster J Mustafa, General Manager T R Ferrett, Building/Technical Manager Senior Management / Leadership Team R A Warlow, Finance Manager C E Spencer, Marketing Manager Registered Office Castle Street Builth Wells Powys LD2 3BN Company Registration Number 01279900 Charity Registration Number 505656
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Wyeside Arts Centre Limited
Reference and Administrative Details
Solicitors: H Vaughan Vaughan & Co 50 High Street Builth Wells LD2 3AD Bankers HSBC Bank Plc Llandrindod Wells Branch Middleton Street Llandrindod Wells Powys LD1 5EU Independent Examiner Mitchell Meredith Ltd Chartered Accountants The Exchange Fiveways Temple Street Llandrindod Wells Powys LD1 5HG
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Wyeside Arts Centre Limited
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2022.
Structure, governance and management
The Charity is a company limited by guarantee.
Its organisational structure is that of a corporate entity which is governed by a Board of Management.
The trustees are the members of the Council of Management ("the Council") which is the Board of Directors of the Company. They are elected by the members of the Company at the Annual General Meeting, or co-opted by the existing Council members from time to time, as required, to fill vacancies. Trustees receive training on the job and from time to time courses are offered. The board continues to review its needs and to attempt to strengthen any areas of weakness.
The Charity's decision-making process operates through meetings of the Council, which is supplemented in its activity by Sub Committees as required: currently these are the Executive & Finance, Buildings, Future Proofing & Friends, the Jonathan Morgan Memorial Fund and Creativity. These Sub Committees are responsible to the Council, and are authorised to take decisions between meetings of the Council and refer back to it.
In particular:-
The Charity is governed by its Memorandum and Articles of Association.
In addition to elected or co-opted Council members, the Articles of Association provide for two Council members to be appointed by Powys County Council, one by Builth Wells Town Council and one by the Friends of Wyeside.
On induction, new trustees are informed of the Charity’s corporate structure, of its governance and procedures, and of the principles of good governance and the responsibilities of trustees. A Trustee induction pack is available for this purpose.
Decisions are made by the Council. Some authority to take decisions is delegated to appropriate Sub Committees or appropriate senior staff members.
The Charity is not part of a wider network. The Charity has continued to participate in a very successful funding and resource arrangement with Theatr Mwldan, an ACW revenue funded arts centre based in Cardigan. This relationship has provided additional support and collaboration in dealing with the complex situation over the period of the Covid-19 closure and related budget discussions
Major risks (which are essentially financial risks) are reviewed regularly by the Council and kept under close review by the Executive and Finance Committee.
Objectives and activities
The objectives and activities of the Charity are set out in its Memorandum and Articles of Association. The objects may be broadly summarised as the promotion and advancement of education and the Arts. The Charity’s activities are the operation of Wyeside Arts Centre to provide and promote a broad spectrum of artistic activity in accordance with its objects.
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Wyeside Arts Centre Limited
Trustees' Report
Our mission statement is:
Wyeside seeks to be an innovative driving force working to develop the cultural health of the people of Mid Wales. Reaching out to all in the community, we seek to create a warm and welcoming environment, with a quality and breadth of creative programming that will entertain, educate and excite. As we do this, we will also strive to generate the financial and environmental sustainability that will ensure the well-being of Wyeside for generations to come.
The core aims of the Charity are:
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To provide a wide array of quality programming for our audience.
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To offer a warm welcome to all.
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To contribute to our thriving communities.
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To nurture creativity. - To secure the future of the organisation.
The Covid-19 virus has had an impact on activities over a long period and recovery is still continuing. The arts centre closed to the public on 17 March 2020 for nearly 17 months and reopened on 6 August 2021. The Executive trustee team met regularly throughout this closure period and working with the key core staff team the Charity to successfully secure emergency funding for the arts centre from the Arts Council of Wales Cultural Recovery Funds to support operations from closure through reopening up until mid-February 2022.
The Charity also suffered a major flooding event in the February 2020 storms just before the Covid-19 crisis began. Fundraising initiatives following the flood was sufficient to replace some items and improvements to the flood defences were carried out during the period when the building was closed to the public. In addition, this provided an opportunity for redecoration of the foyer and main corridors by the staff team prior to reopening. Final work following the flood damage included replacing the damaged speakers for live shows during this year.
The trustees believe that all its activities are of significant public benefit. The Charity's primary objects include the maintenance, improvement and advancement of education by encouragement of the Arts. It aims to achieve this by operating the Wyeside Arts Centre, which includes the provision of an extensive programme of live shows, broadcast screenings, exhibitions, a varied programme of mainstream and specialist film, and specialist workshops for all ages covering diverse topics and including special inclusive film screenings - details of these activities are set out in other sections of this Report. An important part of Wyeside's activity involves the provision of performance venues for local theatre and other groups, and gallery exhibition and craft shop offering opportunities for visual and other artists. In exercising their powers and duties, the trustees have complied with the requirement to have due regard to the guidance on public benefit published by the Charity Commission.
A second post Covid online public survey was carried out in February 2022 to assess the public’s feelings about returning to the arts centre after almost 2 years of living in a pandemic. 271 households completed this survey and the reason for people not visiting the arts centre was still nearly entirely for Covid related reasons. Since that time regular post visit surveys are being carried out enabling regular feedback from customers and this is compiled into ongoing marketing reports.
The Charity is not a grant-making organisation.
The Arts Centre has two auditoria (the Market Theatre and the Castle Cinema), an art gallery, the ‘Window on the Wye’ artists' working space, and a separate workshop/office unit. The centre is open to the public on six or seven days a week and presents live shows, 'Satellite Live!' and film screenings, visual arts exhibitions as well as offering community arts activities and workshops.
The Charity's strategies include providing a welcoming and inspiring focus of artistic activity for performers, creators, local residents of all ages, and visitors to mid Powys; and demonstrating to funding bodies that Wyeside is a strategically valuable regional Arts Centre providing good value for money.
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Wyeside Arts Centre Limited
Trustees' Report
From 17 March 2020 until 6 August 2021 the Charity was unable to open to the public due to Covid-19. In the period since reopening until 31 March 2022 the Charity promoted 5 live shows (5 performances), 469 film screenings, 6 ‘Satellite Live!’ screenings, 5 workshops, 2 exhibitions, and 2 private hires. There were no community events in this period due to various Covid restrictions. By comparison in the year 2019/20 pre-Covid the Charity promoted 17 live shows and community events (18 performances), 1019 film screenings, 55 ‘Satellite Live!’ screenings, 105 workshops, 2 exhibitions, 15 new public ‘games nights’ and 7 conferences or private hires.
The Charity is based in a Grade 2 listed building which formerly housed the town's Assembly Rooms, a market hall, and possibly Wales's earliest cinema. The building was bequeathed to the Charity for the purpose of founding an Arts Centre, but there was no endowment to maintain the fabric, so the Charity is responsible for raising funds for any necessary conservation and improvements.
Volunteer ushers and bar staff are of significant value to the Charity's operations. The Charity currently has a team of 27 active volunteers, who are carefully selected, trained and supervised by the Arts Centre's staff, and agree with the Charity their commitment in terms of hours in advance. During the year these volunteers worked a total of 1,658 hours - an average of 32 hours per week. The board is very grateful to these individuals and for their continuing support now that the arts centre is open again. The Executive & Finance team with three board trustees has spent a considerable amount of time during the period of closure to support Wyeside operations, in total approximately 250 hours - an average of 5 hours per week of volunteer time throughout this year.
Support to the general manager and other key management staff is provided by the Exec team comprising members of the Board. In addition, the chief executive of Theatr Mwldan, usually holds quarterly review meetings with the Board and staff teams to review the artistic programme and other related issues and provides invaluable further mentoring support to the general manager. During the closure period the Executive team was active in the future planning of the Charity on behalf of the board, and weekly virtual meetings have been held with key staff when available. Virtual board meetings were held successfully from closure up until October 2021 when face to face meetings resumed. The Charity’s statement of financial activities is set out in the accounts for the year, which accompany this Report.
Achievement and Performance
The Charity was able to re-open to the public following the Covid-19 public health restrictions in August 2021. The staff team returned to work in June 2021 in preparation for this. The staff team wages were supported by the Coronavirus Job Retention Scheme while staff were furloughed and unable to work and then under the ACW Wales Cultural Recovery Fund 2 and 3 grants when staff returned to work. Some renovation work has been carried out during the closed period which meant that when the arts centre was able to reopen the premises were in a good state of repair and the operations were quickly up and running.
The initial re-opening of the arts centre was for 3 days a week with a limited film offering and social distancing. Wyeside attracts an elderly audience and numbers attending indicated that customer confidence was still low. Our usual 6 days a week opening was resumed in October 2021, although due to continued social distancing the audience capacity was limited to seating 50 in our Castle cinema and 45 in our Market Theatre, normal capacity would be 183 & 158 respectively.
With the introduction of the covid pass entry requirement in November 2021 there was again a large decline in attendance and the decision was taken to cancel the live programme as this was not financially viable for either Wyeside or the visiting companies to proceed. There was also a large amount of disruption in the film release schedule which caused extra administration work over this period and a reluctance of regular workshops to return to onsite offerings. Our gallery was fully operational again from reopening.
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Wyeside Arts Centre Limited
Trustees' Report
We aim to offer a comprehensive range of professional and community live shows and a screened programme comprising both film and Satellite Lite are presented at Wyeside Arts Centre. We include a special inclusive film schedule including relaxed screenings in association with the Thumbs Up Club, sub titled screenings and Tea & Biscuits matinees for our older audiences. Wyeside’s art gallery hosts a series of exhibitions and events.
The Charity’s professional live, ‘Satellite Live!’ and film programmes are booked on its behalf in collaboration with Theatr Mwldan, to offer efficiencies of operation and dual venue opportunities for live artists. The programme is devised in consultation with Wyeside, and the events are marketed and run directly by Wyeside. The CEO of Theatr Mwldan and specialist staff there provide advice and support to Wyeside staff and Wyeside's board of trustees. These bookings commenced again from August 2021. The trustees wish to express their appreciation to Dilwyn Davies, the CEO of Theatr Mwldan for the expertise and commitment that he brings to his work with Wyeside, in particular in his support throughout this difficult period of closure and planning for the future continuation of the operation of the arts centre.
A programme of workshops and classes are normally run through the year and a series of evening board games are held following the “Gaming in the Gallery” project designed for adults who are neurodivergent so their needs are prioritised.
The Arts Centre offers the following accommodation:
The Castle Cinema is a dedicated Cinema space that is equipped to screen both 2D and 3D films, as well as to receive ‘Satellite Live’ relay broadcasts. It offers a mixed programme of popular, family and specialist films.
The Market Theatre (refurbished in early 2012) is a flexible space that offers an ideal setting for Live Shows, Comedy Club and 'Satellite Live!' screenings, but can also double as a second cinema space, and as a conference/meeting venue. It is equipped with retractable seating, allowing it also to be used for dance and drama classes, an alternative cabaret style seating for live acts with smaller audiences, workshops, etc.
The Gallery at Wyeside (refurbished in 2012) houses visual art displays throughout the year in a versatile space that can also be used as a meeting venue. There is also an artists' working space - 'Window on the Wye' - that offers views of the River Wye, which is used for visual arts activities by local schools and is promoted to local artists and visitors.
These spaces are housed within the main Arts Centre building, and complemented by a Foyer/Ticket office, bars, toilets, dressing rooms, technical stores, etc. A lift gives disabled access to all parts. The foyer area also includes a newly enhanced Welsh crafts corner to support local artists.
The Workshop/office space comprises 4 separate units which are suitable for workshops and office purposes. One unit houses an extensive costume store, designed to support local community drama/dance productions. The other main unit is available as rehearsal or meeting place.
The Charity has been adapting to the continuing reduction in revenue funding over many years. The trustees are grateful to the staff team led by the Centre’s General Manager - Jill Mustafa - for their continued hard work and dedication. The Charity’s ability to raise extra funding both to finance its capital works programme, special project work and its day-to-day operations has once again depended on significant fund raising by its trustees, and by the Friends of Wyeside. The Chair takes this opportunity to record the Centre’s appreciation of these efforts.
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Wyeside Arts Centre Limited
Trustees' Report
Financial review
The Charity’s revenue funding source during the year from Powys County Council (PCC) was £15,095, a significant reduction from the previous year’s funding of £25,133 in 2020/21 and £34,361 in 2019/20. This funding has decreased over the last 8 years from £47,000 in 2012/13 due to general reductions in the local council’s arts budget.
The Charity is delighted to continue with the collaborative programme agreement with Theatr Mwldan for the booking of Wyeside Arts Centre’s programme of professional live shows and ‘Satellite Live!’ and film screenings, and to provide mentoring to Wyeside staff. This arrangement is supported by the Arts Council of Wales (ACW). A grant of £19,448 was provided from Theatr Mwldan under this agreement for the year, the same amount as the previous year.
An amount of £17,984 (2020/21 £16,661) has been raised from the Friends of Wyeside scheme and other donations including gift aid totalled £7,034 (2020/21 £7,112) which is a substantial contribution towards funding the operations of the arts centre as well as providing match funding for capital projects.
The arts centre was still closed due to Covid-19 at the start of this year. Most staff had been at some stage furloughed under the HMRC Coronavirus Job Retention Scheme (CJRS) until the reopening in August 2021. Income from CJRS towards the wage costs of £14,406 was received in the year (2020/21 £46,827). Due to ongoing future uncertainties for the arts centre, the difficult decision was made by the trustees in liaison with the staff team to move all staff onto new zero hour based contracts from May 2021.
Vital funding to the arts centre from the start of this period up until 30 September 2022 was provided under the ACW Cultural Recovery Fund (2) of £49,000, as well as supporting staff and operational costs this included £5,000 of capital funding towards the replacement live speakers. Further funding to support operations in the reopening period was awarded under ACW Cultural Recovery Fund (3) of £57,335 for the period 1 October 2021 to 15 February 2022.
Capital grants from the Church Fund in Wales of £10,000 and from the PCC Covid Community Recovery Fund also of £10,000 were awarded towards the cost of the new live speakers to replace those lost in the February 2020 flood, and these were purchased in the year.
A fundraising initiative “Sponsor a seat” is available for all kinds of supporters - individuals, families, businesses and organizations, to sponsor a seat in one of our auditoriums.
In total Grants and Donations amounted to £207,652, this was 69% of the Charity's total incoming resources of £300,587. This ratio is higher than pre Covid periods as the arts centre had been closed for part of the year and grants were received to support operations restricted due to Covid.
The Charity’s financial results for the year show total net income of £48,456. For 2021/22 two six-month emergency budget periods were used to monitor costs and limited activities as the arts centre reopened. The trustees recognised it would be some time before activity levels will be back to those pre Covid-19.
Costs are carefully monitored on a monthly basis during the year against the operating and capital project budgets.
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Wyeside Arts Centre Limited
Trustees' Report
The principal financial management policies are:
• To set a balanced budget for each financial year in accordance with the Charity’s aims and objectives and the resources expected to be available for the period.
• To ensure via monthly analysis that current activity is operating at budgeted levels (allowing for seasonal and other variations).
• To review any capital project expenditure against budget on a regular basis over the life of such projects.
• To arrange and promote live show, Satellite Live!, film and community/workshop bookings so as to meet the budgeted overall position by carefully structuring contractual arrangements with promoters, artists and visiting companies, and to pursue marketing policies designed to increase audience and user numbers attending programme events.
• To maintain regular contact and consultation with existing and potential funding bodies for the purpose of persuading them to maintain or increase funding, and to provide them with full information about the Centre’s policies and ambitions.
• To develop and maximise the opportunities for fundraising within the Charity's capabilities, and for earnings from ancillary activities.
The Charity has a Reserves policy that specifies that if and when circumstances allow, the trustees can pursue a policy of accruing reserves of up to £80,000 to cover unexpected large repair bills, match funding for asset purchases and capital project work and contingency funding of three months’ operational costs (including wages). This is desirable in order to alleviate many recurring operational difficulties arising from annual uncertainty concerning funding levels.
The Charity has no current policy on investments because it has insufficient reserves to hold investments.
The Charity has no subsidiaries.
Future developments
The trustees recognised that the financial plan for 2022/23 needed to take account of the continuing impact of reduced attendance compared to the pre Covid-19 levels of 2019/20. In April 2022 a budget was adopted by the board that anticipated on average a 25% reduction in attendance levels for the year ended 31 March 2022/23 and an amount of £45,000 from available funds was at that time designated by the board to cover the deficit that was expected to result from this reduction.
Work is currently being carried out on a new Business Plan to apply for years 2023-26.
The Charity's aims and key objectives for future development are to continue to provide high quality live shows, 'Satellite Live!' and cinema screenings and for a programme of community arts activities and educational workshops, so far as its budget allows, as well as to raise funds sufficient to allow it to develop future activity in accordance with its budget, business plan, programme ambitions and capital project requirements.
Since completion of the Wyeside Works feasibility study project in December 2018, fundraising opportunities are still to be identified for the Charity to be able to carry out the RIBA Stage 3 work and subsequent capital developments recommended by this study. The study sets out detailed feasibility plans for the strategic development and sustainability of Wyeside’s premises and activities to serve the needs and aspirations of the arts centre and our local communities for the future.
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Wyeside Arts Centre Limited
Trustees' Report
In the current economic climate, the Charity continues to face reductions in the revenue funding available to support its activities, and this is a major concern for the trustees, particularly with the ongoing impact of Covid-19. Wyeside Arts Centre is the main focus for arts and entertainment for mid Powys and is identified in the PCC arts strategy as one of the four main venues that (in combination with some venues in adjacent counties) deliver equitable access to professional arts events across Powys. The trustees are aware of the pressures on public funds and continue to work hard to reduce the Charity’s reliance on them, to grow the income from its activities and to diversify its income streams.
In addition, the Charity faces substantial increases in energy costs from November 2022 when the existing fixed rate for electricity costs ends. This has to some extent been mitigated by a new future arrangement and government support that was announced in September 2022.
The annual report was approved by the trustees of the charity on 5 October 2022 and signed on its behalf by:
F R J Banks Trustee
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Wyeside Arts Centre Limited
Statement of Trustees' Responsibilities
The trustees (who are also the directors of Wyeside Arts Centre Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
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 its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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.
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Wyeside Arts Centre Limited
Independent Examiner's Report to the trustees of Wyeside Arts Centre Limited ("the Company")
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2022.
Responsibilities and basis of report
As the charity’s trustees of the Company (and also 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 Wyeside Arts Centre Limited 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 your charity’s accounts as 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
Since Wyeside Arts Centre Limited's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of Wyeside Arts Centre Limited 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 draw attention to note 2 to the financial statements which describes uncertainties arising as a result of the worldwide pandemic caused by Covid 19 and the Charity's ability to continue as a going concern. I confirm there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached.
T Richardson Mitchell Meredith Limited Chartered Accountants The Exchange Fiveways Temple Street Llandrindod Wells Powys LD1 5HG
5 October 2022
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Wyeside Arts Centre Limited
Statement of Financial Activities for the Year Ended 31 March 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 3 Charitable activities 5 Investment income Total Income Expenditure on: Charitable activities 6 Total Expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 16 |
Unrestricted £ 182,652 92,909 26 275,587 (236,044) (236,044) 39,543 39,543 211,454 250,997 |
Restricted £ 25,000 - - 25,000 (16,087) (16,087) 8,913 8,913 113,210 122,123 |
Total 2022 £ 207,652 92,909 26 300,587 (252,131) (252,131) 48,456 48,456 324,664 373,120 |
Total 2021 £ 236,875 18,872 29 |
|---|---|---|---|---|
| 255,776 | ||||
| (211,403) | ||||
| (211,403) | ||||
| 44,373 | ||||
| 44,373 280,291 |
||||
| 324,664 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 16.
The notes on pages 14 to 26 form an integral part of these financial statements. Page 12
Wyeside Arts Centre Limited
(Registration number: 01279900) Balance Sheet as at 31 March 2022
| Note Fixed assets Tangible assets 12 Current assets Stocks Debtors 13 Cash at bank and in hand Creditors: Amounts falling due within one year 14 Net current assets Net assets Funds of the charity: Restricted income funds Restricted funds 16 Unrestricted income funds Unrestricted funds Total funds 16 |
2022 £ 241,156 2,862 37,535 123,023 163,420 (31,456) 131,964 373,120 122,123 250,997 373,120 |
2021 £ 228,857 1,026 33,586 81,397 |
|---|---|---|
| 116,009 (20,202) |
||
| 95,807 | ||
| 324,664 | ||
| 113,210 211,454 |
||
| 324,664 |
For the financial year ending 31 March 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
The financial statements on pages 12 to 26 were approved by the trustees, and authorised for issue on 5 October 2022 and signed on their behalf by:
F R J Banks Trustee
The notes on pages 14 to 26 form an integral part of these financial statements. Page 13
Wyeside Arts Centre Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
1 Charity status
The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The address of its registered office is: Castle Street Builth Wells Powys LD2 3BN
These financial statements were authorised for issue by the trustees on 5 October 2022.
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Basis of preparation
Wyeside Arts Centre 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 notes.
Going concern
The financial statements have been prepared on a going concern basis.
The Trustees assess whether the use of going concern is appropriate i.e whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.
The worldwide pandemic Covid 19 and the subsequent lockdown and restrictions had serious implications for the charity. Funding from the local authority continued and advantage has been taken of all financial support to which it is eligible. The Arts Centre reopened at the start of August 2021 and the charity received support from the ACW Cultural Recovery Funds in the year. Forecasts and budgets are regularly prepared and updated.
Taking all these factors into account the Trustees believe it is appropriate to prepare the accounts on a going concern basis.
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Wyeside Arts Centre Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Exemption from preparing a cash flow statement
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Income and endowments
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 the income receivable can be measured reliably.
Donations and legacies
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
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Wyeside Arts Centre Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Tangible fixed assets
Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate Freehold property over 50 years Specialist fixtures etc between 7 and 12 years Computers and similar equipment over 4 years Furniture over 7 years
Stock
Stock is valued at the lower of cost and net realisable value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price .
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Page 16
Wyeside Arts Centre Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Hire purchase and finance leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term.
3 Income from donations and legacies
| Donations and legacies; Friends & Supporter Scheme Donations Other Donations, Gift Aid etc Donations Grants receivable (note 4) |
Unrestricted funds £ 17,984 7,034 25,018 157,634 182,652 |
Restricted funds £ - - - 25,000 25,000 |
Total 2022 £ 17,984 7,034 25,018 182,634 207,652 |
Total 2021 £ 16,661 7,112 |
|---|---|---|---|---|
| 23,773 213,102 |
||||
| 236,875 |
Page 17
Wyeside Arts Centre Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
4 Grants
| Unrestricted Funds £ PCC Arts Service - Annual grant 15,905 PCC Community Development grant - ACW - Website grant - ACW - Wales Cultural Recovery Fund (1) 6,500 PCC Coronavirus Rates Relief Grants - Builth Wells Town Council - Theatr Mwldan/ACW - Programming and support grant 19,488 Business Wales Flood Relief grant - HMRC Coronavirus Job Retention Scheme 14,406 ACW - Wales Cultural Recovery Fund (2) 44,000 ACW - Wales Cultural Recovery Fund (3) 57,335 Church Fund in Wales grant - PCC Covid Community Recovery Fund - 157,634 |
Restricted Funds £ - - - - - - - - - 5,000 - 10,000 10,000 25,000 |
Total Funds 2022 £ 15,905 - - 6,500 - - 19,488 - 14,406 49,000 57,335 10,000 10,000 182,634 |
Total Funds 2021 £ 25,133 8,250 5,445 58,500 45,000 2,000 19,447 2,500 46,827 - - - - 213,102 |
|---|---|---|---|
5 Income from charitable activities
| Live show income Film income Exhibition income Satellite live income Bar and ices sales Sundry income |
Unrestricted funds General £ 4,335 55,578 23 2,706 21,584 8,683 92,909 |
Total 2022 £ 4,335 55,578 23 2,706 21,584 8,683 92,909 |
Total 2021 £ - - - - - 18,872 |
|---|---|---|---|
| 18,872 |
Page 18
Wyeside Arts Centre Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
6 Expenditure on charitable activities
| Wages Employers NIC Employers pension contributions Rercuitment costs Training costs Rent and rates Bar purchases and vending supplies Licences Ticket office refunds and write offs Live show costs Film costs Satellite live costs Insurance Light and heat Cleaning Exhibition costs Equipment and property upkeep Telephone Printing, postage and stationery Gaming in the Gallery costs Subscriptions Office contracts etc Sundry and petty cash expenses Motor and travelling expenses Marketing Accountancy Website costs Legal and professional Bank interest and charges Depreciation |
Charitable activities £ 111,453 14 1,204 60 2,504 1,533 10,406 1,314 - 3,475 26,779 1,451 7,897 14,809 1,802 - 19,095 1,713 801 437 659 9,310 72 145 2,918 - - 1,699 4,106 19,475 245,131 Page |
Governance £ 2,600 - - - - - - - - - - - - - - - - - 400 - - - - - - 4,000 - - - - 7,000 19 |
Total 2022 £ 114,053 14 1,204 60 2,504 1,533 10,406 1,314 - 3,475 26,779 1,451 7,897 14,809 1,802 - 19,095 1,713 1,201 437 659 9,310 72 145 2,918 4,000 - 1,699 4,106 19,475 252,131 |
Total 2021 £ 100,782 - 999 13 260 504 1,571 295 2,332 - 804 - 7,779 9,561 3,520 20 38,896 1,428 875 1,448 257 6,850 80 - 4,647 4,000 4,560 1,506 1,453 16,963 |
|---|---|---|---|---|
| 211,403 | ||||
Wyeside Arts Centre Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
£236,044 (2021 - £175,250) of the above expenditure was attributable to unrestricted funds and £16,087 (2021 - £36,153) to restricted funds.
7 Net incoming/outgoing resources
Net incoming resources for the year include:
| Net incoming resources for the year include: | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Depreciation of fixed assets | 19,475 | 16,963 |
8 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
9 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries Social security costs |
2022 £ 114,053 14 114,067 |
2021 £ 100,782 - |
|---|---|---|
| 100,782 |
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
| 2022 | 2021 | |||
|---|---|---|---|---|
| No | No | |||
| Charitable activities | 13 | 13 |
8 (2021 - 8) of the above employees participated in the Defined Contribution Pension Schemes.
Contributions to the employee pension schemes for the year totalled £1,204 (2021 - £999).
No employee received emoluments of more than £60,000 during the year.
The total employee benefits of the key management personnel of the charity were £60,056 (2021 - £41,614).
Page 20
Wyeside Arts Centre Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
10 Independent examiner's remuneration
| 10 Independent examiner's remuneration | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Examination of the financial statements | 4,000 | 4,000 |
11 Taxation
The charity is a registered charity and is therefore exempt from taxation.
12 Tangible fixed assets
| Cost At 1 April 2021 Additions At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Freehold property & specialist fixtures & fittings £ 534,042 27,700 561,742 305,424 18,217 323,641 238,101 228,618 |
Furniture & office equipment £ 150,728 4,075 154,803 150,489 1,259 151,748 3,055 239 |
Total £ 684,770 31,775 |
|---|---|---|---|
| 716,545 | |||
| 455,913 19,476 |
|||
| 475,389 | |||
| 241,156 | |||
| 228,857 |
Included in cost or valuation of Freehold property & specialist fixtures & fittings is freehold land of £72,500 (2021 - £72,500) which is not depreciated.
Revaluation of fixed assets
In September 2002 following major refurbishment at the Arts Centre, the Trustees instructed the valuers, Messrs McCartneys, to provide an updated valuation of the buildings, etc. This was undertaken on the basis of open market value for existing use as a fully operational Arts Centre and included specialist fixtures and fittings necessary for the continuation of its existing use. The valuation of the workshops was on the basis of open market value. The valuation of the Arts Centre was £300,000 and the workshops £80,000. As the book value of these assets were considerably in excess of the above valuations, adjustments were made in order to reduce the relevant assets to their current values. Specialist fixtures and equipment purchased since the valuation have been included at cost.
Page 21
Wyeside Arts Centre Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
13 Debtors
| Debtors and prepayments | 2022 £ 37,535 |
2021 £ 33,586 |
|---|---|---|
14 Creditors: amounts falling due within one year
| Creditors & accruals Taxation and social security Box office income in advance |
2022 £ 26,425 537 4,494 31,456 |
2021 £ 20,189 13 - |
|---|---|---|
| 20,202 |
15 Obligations under leases and hire purchase contracts
Operating lease commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
| Other Between one and five years |
2022 £ 23,296 |
2021 £ 12,719 |
|---|---|---|
Page 22
Wyeside Arts Centre Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
| 16 Funds Unrestricted funds General Unrestricted income fund Restricted funds ACW Transitional Funding Aggregate Levy Funds for Wales Grant ERDF Grants Arts Council of Wales Lottery Grants PCC Community Enablement Grant Wales Tourist Board Capital Grant Garfield Weston Foundation Builth Wells Town Council Cinema Grant ACW - Equipping Wyeside for a sustainable future PCC Regeneration & Development Capital Grant Jonathon Morgan Memorial Fund PCC and CFIW Equipment Project National Lottery Awards for All Wyeside Flooding Fund Church Fund in Wales ACW - Wales Cultural Recovery Fund (2) PCC Covid Community Recovery Fund Total restricted funds Total funds |
Balance at 1 April 2021 £ 211,454 343 8,683 6,954 65,469 5,394 1,040 921 921 1,217 548 11,577 3,150 2,087 4,906 - - - 113,210 324,664 |
Incoming resources £ 275,587 - - - - - - - - - - - - - - 10,000 5,000 10,000 25,000 300,587 |
Resources expended £ (236,044) - (4,343) (290) (2,727) (225) (43) (39) (39) (1,217) (548) - (1,050) (1,205) (789) (1,429) (714) (1,429) (16,087) (252,131) |
Balance at 31 March 2022 £ 250,997 343 4,340 6,664 62,742 5,169 997 882 882 - - 11,577 2,100 882 4,117 8,571 4,286 8,571 |
|---|---|---|---|---|
| 122,123 | ||||
| 373,120 |
Page 23
Wyeside Arts Centre Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
| Unrestricted funds General Unrestricted income fund Restricted ACW Transitional Funding Aggregate Levy Funds for Wales Grant ERDF Grants Arts Council of Wales Lottery Grants PCC Community Enablement Grant Wales Tourist Board Capital Grant Garfield Weston Foundation Builth Wells Town Council Cinema Grant ACW - Equipping Wyeside for a sustainable future PCC Regeneration & Development Capital Grant Jonathon Morgan Memorial Fund PCC and CFIW Equipment Project National Lottery Awards for All Wyeside Flooding Fund PCC Community Development grant ACW Website grant Total restricted funds Total funds |
Balance at 1 April 2020 £ 148,327 343 13,026 7,244 68,196 5,619 1,083 960 960 2,435 1,094 11,577 6,392 4,239 8,796 - - 131,964 280,291 |
Incoming resources £ 238,377 - - - - - - - - - - - - - 3,704 8,250 5,445 17,399 255,776 |
Resources expended £ (175,250) - (4,343) (290) (2,727) (225) (43) (39) (39) (1,218) (546) - (3,242) (2,152) (7,594) (8,250) (5,445) (36,153) (211,403) |
Balance at 31 March 2021 £ 211,454 343 8,683 6,954 65,469 5,394 1,040 921 921 1,217 548 11,577 3,150 2,087 4,906 - - |
|---|---|---|---|---|
| 113,210 | ||||
| 324,664 |
Page 24
Wyeside Arts Centre Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
The specific purposes for which the funds are to be applied are as follows:
Arts Council of Wales Transitional Funding is towards professional and other costs following loss of ACW revenue funding.
Aggregate Levy Fund for Wales (ALFW) Grant was towards the project to modernise and refurbish the Market Theatre completed in previous years. The balance remaining represents capital expenditure incurred and is being written off at the same rate as the asset is depreciated.
Arts Council Wales grant was part funding towards equipping Wyeside for a sustainable future. The balance remaining represents capital expenditure incurred and is being written off at the same rate as the asset is depreciated.
Powys County Council Community Regeneration & Development Fund Capital Grant was towards capital works. The balance is being written off at the same rate as the asset is depreciated.
The Jonathon Morgan Memorial Fund supports the programme of Wyeside Arts Centre and community based arts activities supported by Wyeside Arts Centre with a focus on promoting all aspects of the work of William Shakespeare.
The Equipment project was for the purchase of a new IT system, sound deck and other technical equipment with funding from Powys County Council via a Community Regeneration & Development Fund Capital Grant for £8,484 and a Community Foundation in Wales Grant for £8,957. The balance is being written off at the same rate as the assets are depreciated.
National Lottery Awards for All grant was funding towards 'Gaming in the Gallery' - to provide a welcomimg space for people with a keen interest in board games.
The Wyeside Flooding Fund was a fundraising appeal set up for flood damage repair costs after Storm Dennis in February 2020. The balance is being written off against the depreciation of capital assets purchased with this fund.
The Church Fund in Wales grant, the PCC Covid Community Recovery Fund grant and the ACW - Wales Cultural Recovery Fund (2) grant were funding towards the speaker replacement project. The balances remaining represent capital expenditure incurred and are being written off at the same rate as the asset is depreciated.
All other funds have been towards the general refurbishment and updating of the Arts Centre and to assist with the purchase of equipment and to support running costs.
Page 25
Wyeside Arts Centre Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
17 Analysis of net assets between funds
| 17 Analysis of net assets between funds | |||
|---|---|---|---|
| Tangible fixed assets Current assets Current liabilities Total net assets |
Unrestricted funds General £ 131,834 150,619 (31,456) 250,997 |
Restricted funds £ 109,322 12,801 - 122,123 |
Total funds at 31 March 2022 £ 241,156 163,420 (31,456) |
| 373,120 |
18 Related party transactions
There were no related party transactions in the year.
Page 26