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2022-03-31-accounts

BLACKPOOL GRAND THEATRE TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR

THE YEAR ENDED MARCH 31 2022

Company number 01323495 Charity number 506601

BLACKPOOL GRAND THEATRE TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

INDEX
Chair’s foreword 1
Administrative information 2
Trustees’ and Directors’ annual report 3 – 6
Auditors’ report 7 – 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 – 22

BLACKPOOL GRAND THEATRE TRUST LIMITED 2022

CHAIR’S FOREWORD

FOR THE YEAR ENDED MARCH 31 2022

In many ways 2021-22 was a rollercoaster of a year for everyone, not least Blackpool Grand Theatre.

With live performances ceasing on 17[th] March 2020, the focus of the Trust has remained on ensuring our heritage asset has remained safe and secure throughout the Covid enforced closure period.

The Grand’s team have worked tirelessly in exceptionally challenging circumstances to ensure the upkeep of the building, systems and services throughout has been maintained, a vitally important task given the additional challenges that lack of occupancy presents to heritage assets such as ours.

Blackpool Grand Theatre is grateful for the support of grant funding awarded to Arts & Entertainments Ltd through the Department of Digital, Culture, Media and Sport’s and Arts Council England’s distribution of Cultural Recovery Funds and Emergency Recovery Support Funding, enabling investment in the fabric of the building as well as support to the operation of the Theatre. The Grand also acknowledges the financial support of the government’s Coronavirus Job Retention Scheme, which have collectively protected employment and helped retain the skills and talent required to take The Grand forward into the future.

I am delighted that the curtain was able to rise again on live performances in September 2021. It is a fitting tribute to the hard work and commitment of everyone involved that the annual pantomime saw record attendances returning to enjoy Matcham’s masterpiece, even in the face of rising Covid cases and the emergence of the Omicron variant.

As we round off the 2021-22 financial year, it would be remiss of me not to recognise and thank Ruth Eastwood for her stewardship of The Grand as Chief Executive from 2013 until March 2022. It has been a pleasure to work with her and support the development of The Grand under her tenure. As one chapter ends, another starts and I am delighted to welcome our new Chief Executive, Adam Knight, who joined us in May 2022. We very much look forward to working closely with him over the months and years ahead. My fellow Trustees and I wish them both every success for the future.

My sincere thanks go to my fellow Trustees for their help and support in navigating our way through this crisis, to our colleagues on the Arts & Entertainments Ltd Board who have kept us informed and engaged throughout, to the incredible staff team of The Grand who have looked forward with faith and optimism in the face of adversity and to our community of supporters in Blackpool and beyond who have championed our return.

Roger Lloyd Jones - Chair

1

BLACKPOOL GRAND THEATRE TRUST LIMITED ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED MARCH 31 2022

DIRECTORS & TRUSTEES

R Lloyd Jones (Chair) R Baguley D Barnett (Appointed 10/09/22) M D J Cunliffe (Appointed 12/05/22) R Duke (Resigned 15/12/21) J Grady Z Hammond M Hill (Resigned 15/12/21) G Law (Resigned 15/12/21) B Lindop (Appointed 10/09/22) A K Macpherson M P J Price L Slack (Appointed 10/09/22) M J Wiseman

COMPANY SECRETARY

R Lloyd Jones

REGISTERED OFFICE AND The Grand Theatre PRINCIPAL PLACE OF BUSINESS 33 Church Street Blackpool Lancashire FY1 1HT

AUDITORS AND ACCOUNTANTS

HGA Accountants & Financial Consultants Ltd t/a Chittenden Horley

Chartered Accountants & Registered Auditors The Wesley Centre Royce Road, Hulme Manchester M15 5BP

BANKERS

National Westminster Bank plc 20 Corporation Street Blackpool FY1 1EJ

The trustees present their annual report together with the financial statements of the charity for the year ended March 31 2022 which are also prepared to meet the requirements for a directors’ report and accounts for Companies act purposes.

REPORTING FRAMEWORK

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019), referred to as the Charities SORP (FRS 102) (second edition – October 2019).

OBJECTIVES AND ACTIVITIES

Chartable objects

The charitable objectives are:

2

BLACKPOOL GRAND THEATRE TRUST LIMITED

TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR

THE YEAR ENDED MARCH 31 2022

Activities

To further these objectives, we:

Public benefit

The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 01 to have due regard to the public benefit guidance published by the Charity Commission.

The Grand Theatre plays a critical part in making Blackpool a great place to live, work and learn. As well as investing in the upkeep of the Grade II* Listed building, we have grown our commitment to increasing understanding and enthusiasm for the theatre through our programme of heritage tours, talks and work with schools and the community in Blackpool and beyond. This year however, many of these activities have been adapted for digital delivery or paused pending the return of in-person engagement and the live performance programme to resume.

ACHIEVEMENTS AND PERFORMANCE

The Grand Theatre, like all other theatres up and down the land, had been closed from March 2020 to June 2021 due to COVID-19 restrictions. While the theatre has been able to have an online presence, the work addressing the strategic aspirations of the Trust has been curtailed. Routine maintenance checks have been carried on a daily basis throughout the year to ensure ethe fabric of the building was maintained and electrical repairs undertaken including the rewiring of the houselights in the boxes.

Our sister company, Arts and Entertainments Limited (A&E), was successful in securing Cultural Recovery Funds and Emergency Response Support Funding from the DCMS and Arts Council England. These funds have enabled A&E to carry out work to further a COVID-19 secure and enhanced environment for audiences and staff alike, including investment in improved air handling within the auditorium and information communication technology infrastructure.

3

BLACKPOOL GRAND THEATRE TRUST LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

FINANCIAL REVIEW

Overview

We had a surplus on unrestricted general funds for the year of £19,932 (2020 - £4,542). This surplus, along with movements in designated and restricted funds and adjustments for non-cash items mean that actual cash balances have increased in the year by c£103k.

The decision has been made not to seek a new tenant for one of our shop units but instead to make this available to A&E, initially as additional office accommodation whilst the theatre was closed but for 21/22 to provide space for the box office and allow for greater social distancing. A&E was able to pay rent for this space in 21/22. Two of the kiosks are currently unlet, but we continue to be able to let the other units.

Risk management

The Trustees have a risk management strategy which comprises:

This work has identified that financial sustainability is a major risk for the charity. Mitigation is applied through the implementation of a reserves policy which is kept under review, closely managed and reported in the monthly management accounts. The annual Health & Safety inspection was completed in July 2018 and the Trust was commended for improvements made and sustained over the last four years.

Principal funding sources

The Grand Theatre Trust Ltd generates income through rent received, through the support of the Friends of the Grand and by fundraising from Trusts and Foundations.

Investment policy and review

The trustees, having regard to the liquidity requirements of the charity and its reserves policy, have operated a policy of keeping available funds in an interest-bearing deposit account and seek to achieve a rate on deposit which matches or exceeds inflation as measured by the retail prices index.

Reserves

Free reserves

Reserves are needed to bridge the gap between spending and receiving of resources; to sustain the charity over the next twelve months; and to cover emergency repairs and other expenditure. The trustees consider that the ideal level of free reserves (unrestricted funds not invested in fixed assets or otherwise designated) at the year-end would be in the region of £50,000.

Free reserves at the year-end were £48,018 (2021 - £28,086), just below the target figure.

Designated funds

The trustees have established a policy of designating a sum equivalent to the charge made for the use of equipment by A&E net of additions in the year, to create a fund to purchase future equipment for use by A&E. Although A&E can ask for specific equipment to be purchased the decision whether to do so or not remains with the trustees of this charity. At the year end the balance on this designated fund stood at £193,226 (2021 - £164,566), which the trustees judged would be adequate to meet any reasonable requests for assistance in the immediate future.

In accordance with the SoRP, the trustees have set up a designated fund to represent the investment of unrestricted funds in fixed assets (including heritage assets) and against which depreciation is being charged and additions credited. At the year end the balance on this designated fund stood at £1,894,575 (2021 - £1,991,104).

In total designated funds at the year end totalled £2,135,819 (2021 - £2,183,746).

Going concern

There are no issues to note and the Trustees believe that the accounts are properly prepared on the going concern basis.

FUTURE PLANS

4

BLACKPOOL GRAND THEATRE TRUST LIMITED

TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR

THE YEAR ENDED MARCH 31 2022

Following the re-opening of The Grand for live performances in September 2021, the Executive team will focus on the commission of the quinquennial review to inform the next steps in the realisation of our capital development masterplan. With resumption of activity and under the leadership of newly appointed Chief Executive, Adam Knight, we will begin to seek funding to deliver our ambitions to make our 126-year-old heritage theatre fit for the 21[st] century over the coming years.

STRUCTURE GOVERNANCE AND MANAGEMENT

Governing document

The charity is a company limited by guarantee governed by its memorandum and articles of association dated July 29 1977 as amended by special resolutions dated June 20 1993, November 27 2007 and November 7 2018. It is a registered charity with the Charity Commission.

Members of the company

The maximum number of members is currently set at forty but the Board may from time to time register an increase or decrease in the number. There are four classes of member in addition to a President or Vice President (if appointed):

Appointment of trustees/directors

Nominated trustees/directors

The Friends of the Grand have the right to nominate one director. The other Directors are appointed

Appointed trustees/directors

An appointments panel constituted in accordance with the Articles appoints up to 15 trustees/directors for a period of four years, the Board having the power to fill a casual vacancy for the remaining period that the person replaced would have served.

Co-opted trustees/directors

The Board may co-opt up to two persons to serve as directors/trustees for a period not exceeding four years and they may renew the appointment for a further period not exceeding four years.

A nominating body has the power to appoint a deputy but appointed and co-opted trustees/directors cannot appoint an alternate to act on their behalf.

Trustee induction and training

New trustees undergo an orientation day to brief them on their legal obligations under charity and company law, the Charity Commission guidance on public benefit, content of the Memorandum and Articles , the committee and decision-making process, the business plan and recent financial performance of the charity. During the induction day they meet key staff and other trustees.

Trustees are encouraged to attend appropriate external training events where these will facilitate the understanding of their role. All trustees will have the opportunity to attend an external “refresher” on an annual basis.

Organisation

The Board administers the charity and meets every two months. The charity does not employ any staff itself but has an agreement with A&E who provide the services of their General Manger and Finance Manager to who the trustees delegate responsibility for the day to day management of the charity.

Co-operation with other organisations/charities

In accordance with its objectives, the charity works closely with Blackpool Grand Theatre (Arts & Entertainments) Ltd (A&E) the charity to whom it rents the theatre under a formal lease. The Trustees seek to respond positively to requests to provide specific items of equipment for use in the theatre.

The charity is supported by the Friends of the Grand an unincorporated charity which raises funds through events and donations for the preservation of the building and the acquisition of equipment.

Related parties

None of the trustees receive any remuneration or other benefits for their services.

5

BLACKPOOL GRAND THEATRE TRUST LIMITED TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2022

Details of transactions with A&E and the Friends are given in the notes to the accounts.

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The trustees (who are also directors of Blackpool Grand Theatre Trust Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual 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, which 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:

The trustees are responsible for keeping adequate accounting records that 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.

STATEMENT OF DISCLOSURE TO AUDITORS

We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

SMALL COMPANY PROVISIONS AND APPROVAL

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Approved by the Board of Trustees and signed on its behalf by:

Roger Lloyd Jones – Director Date:

6

AUDITORS’ REPORT TO THE MEMBERS OF BLACKPOOL GRAND THEATRE TRUST LIMITED FOR THE YEAR ENDED MARCH 31 2022

Opinion

We have audited the financial statements of Blackpool Grand Theatre Trust Limited (the ‘charitable company’) for the year ended March 31 2022 which comprise Statement of Financial Activities, Balance Sheet and Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report[2] . Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006 In

our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

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

7

AUDITORS’ REPORT TO THE MEMBERS OF BLACKPOOL GRAND THEATRE TRUST LIMITED FOR THE YEAR ENDED MARCH 31 2022

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, set out in the Directors’ and Trustees’ Report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

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

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

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

No instances of material non-compliance were identified.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

8

AUDITORS’ REPORT TO THE MEMBERS OF BLACKPOOL GRAND THEATRE TRUST LIMITED FOR THE YEAR ENDED MARCH 31 2022

Use of our report

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

Peter Smith BA FCA DChA– Senior Statutory Auditor

For and on behalf of: HGA Accountants & Financial Consultants Ltd t/a Chittenden Horley Chartered Accountants and Statutory Auditors

The Wesley Centre Royce Road, Hulme

Manchester M15 5BP Date:

9

BLACKPOOL GRAND THEATRE TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED MARCH 31 2022
FOR THE YEAR ENDED MARCH 31 2022
Notes
INCOME
Donations
2
Charitable activities
3
Other trading activities
4
Investment income - bank interest
5
Other income
6
TOTAL INCOME
EXPENDITURE
Raising funds
7
Expenditure on charitable activities
8
TOTAL EXPENDITURE
Unrealised loss on current asset investments
NET INCOME/(EXPENDITURE) BEFORE
TRANSFERS
Transfers between funds
NET MOVEMENT IN FUNDS
TOTAL FUNDS:
BROUGHT FORWARD
18
CARRIED FORWARD
18
115,751
-
19,932
-
19,932
28,086
48,018
General
Funds
£
11,806
46,115
76,504
1,258
-
135,683
21,152
94,599		 Designated
Funds
£
-
40,000
-
-
-
40,000
-
112,511		 Unrestricted Funds
54,478
282,740
276,814
-
-
(6)
10,572
(42,007)
(88,165)
(4,652)
-
-
5,920
(42,007)
(88,165)
607,985
2,791,731
2,879,896
613,905
2,749,724
2,791,731
Restricted
Total
Total
Funds
2022
2021
£
£
£
65,050
76,856
37,995
-
86,115
64,250
-
76,504
69,772
-
1,258
1,900
-
-
14,738
65,050
240,733
188,655
-
21,152
16,813
54,478
261,588
260,001
115,751
-
19,932
-
19,932
28,086
48,018		 112,511
-
(72,511)
4,652
(67,859)
2,155,660
2,087,801		 54,478
-
10,572
(4,652)
5,920
607,985
613,905		 276,814
(6)
(88,165)
-
(88,165)
2,879,896
2,791,731

The notes on pages 13 to 22 form part of these financial statements. BALANCE SHEET

AS AT MARCH 31 2022

----- Start of picture text -----
Not 20 20 20 2021
es 22 22 21
FIXED £ £ £ £
ASSET
S
----- End of picture text -----

10

BLACKPOOL GRAND THEATRE TRUST LIMITED GRAND THEATRE TRUST LIMITED GRAND THEATRE TRUST LIMITED GRAND THEATRE TRUST LIMITED
Tangible 1 1,246,972
Assets 2 1,138,
404
Heritage 1
assets 3 1,202,
959
CURRE
NT		 2,341,
363
ASSET
S
Debtors 1
4
39,82		 44,87
4 2
Investm 1
ents 5
172		 172
Cash at
Bank 466,2 363,2
and in 76 13
Hand
CREDIT 506,2 408,2
ORS 72 57
Amount 1
s falling 6
47,91		 38,04
due in 1 7
one year
NET
CURRE
NT
ASSET 458,3
S 61 370,210
2,841,731
2,799,
CREDIT 724
ORS
Amount 1 50,000
s falling 7 50,00
due in 0
more
than one
year
NET 2,749,
ASSET 724
S
2,791,731
FUNDS
Unrestri
cted		 1
8
48,01 28,08
General 8 2,135, 6
funds 819
1 2,087, 613,9 2,155,
Designa 8
801		 05 660 2,183,746 607,985 2,791,731

BLACKPOOL GRAND THEATRE TRUST LIMITED ted 2,749, funds 724

Restrict ed

TOTAL FUNDS

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The notes on pages 13 to 22 form part of these financial statements.

Approved by the Board of Directors and authorised for issue on:

Roger Lloyd Jones – Director

Company registration number: 01323495

STATEMENT OF CASH FLOWS

AS AT MARCH 31 2022

notes
Cash generated from operating activities
20
Cashflows from investing activities
Interest and dividends
Purchase of tangible fixed assets
Proceeds of sale of investments
Cash provided by/(used in) investing activities
Cashflows from financing activities
Proceeds from new borrowings
Repayment of borrowing
Cash used in financing activities		 2022
2021
£
£
117,787
(25,881)
1,258
1,900
(15,982)
-
-
-
(14,724)
1,900
-
-
-
-
-
-

BLACKPOOL GRAND THEATRE TRUST LIMITED

Increase/(decrease) in cash & cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalents consist of:
Cash at bank and in hand		 103,063
363,213
466,276
466,276
466,276		 (23,981)
387,194
363,213
363,213
363,213

Movements in net debt

There were no movements in net debt in either year.

BLACKPOOL GRAND THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

1 ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared: under the historic cost convention; in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective January 1 2019 (second edition – October 2019); FRS102; and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS102.

The functional currency is £ sterling.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Income recognition

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. The following applies to particular types of income:

Grants , whether of a capital or revenue nature, are recognised when the charity has entitlement to the funds, any performance conditions have been met and it is probable that the income will be received.

Donations from individuals and other bodies (not being of the nature of a grant) are recognised when receivable.

Legacies are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the case of gifts that are neither cash nor financial assets tradable on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Earned income is measured at the fair value of the consideration received or receivable for services and goods supplied, net of discounts and VAT.

Investment income Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Deferred income

Income is only deferred and included in creditors when:

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds including those associated with fundraising activities, managing investments and commercial trading by the subsidiary company.

Charitable activities costs of undertaking the work of the charity.

The charity is registered for VAT and is able to recover some of the input tax charged as it relates to VATable supplies. Costs are stated net of VAT were charged and irrecoverable VAT is included as a separate charge either within direct costs or support costs as appropriate.

Allocation of support costs

Support costs are those functions which assist the work of the charity either by supporting the delivery of charitable activities or by supporting the generation of funds. They include management charges, office and other cost and professional fees. The basis of allocations is set out in note 8.

14

BLACKPOOL GRAND THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

1 ACCOUNTING POLICIES (continued)

Functional fixed assets

Individual fixed assets costing more than £1,000 are capitalised at cost and are depreciated over their estimated useful lives on a straight-line basis as set out below.

Heritage Assets

Assets held for their historical, architectural and constructional heritage contribution to culture, in accordance with objectives of the charity, are classified as heritage assets in the accounts.

The Trust capitalises heritage properties at their purchase price plus any restoration costs to restore them to their former condition and bring them back into use. Any further preservation costs are charged to the statement of financial activities when carried out.

Heritage assets consist of the Grade II* listed Blackpool Grand Theatre and associated buildings and fixtures & fittings.

Depreciation rates

All assets are depreciated on a straight-line basis at the following rates:

Freehold land and buildings 20 – 50 years
Fixtures & fittings 3 – 20 years
Stage equipment 10 – 20 years Other
equipment 4 – 10 years

The cost of the land, not subject to depreciation, included in the balance sheet is £100,000.

Debtors

Trade and other debtors are recognised at the settlement amount due and prepayments are valued at the amount prepaid.

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.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

Financial instruments

The charity has only basic financial instruments which are initially recorded at cost, and with the exception of investments (as set out above) subsequently measured at their settlement value.

2 DONATIONS
Donations:
Legacies
The Friends of the
Grand
125 donations -other
Individual donations		 2022
Unrestricted
Restricted
Total		 2022
Unrestricted
Restricted
Total
£
-
-
11,806
11,806		 £
-
65,000
50
-
65,050

15

BLACKPOOL GRAND THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022 3 INCOME FROM CHARITABLE ACTIVITIES 2022

INCOME FROM CHARITABLE ACTIVITIES
Capital project
Ministry of Housing, Communities & Local Government
Historic England
-
-
Other charitable income
Theatre rents
46,115
46,115
General
£		 General
£		 2022
Designated
Restricted
£
£		 2022
Designated
Restricted
£
£		 Total
£
-
-
40,000
40,000		 -
-
-
-
Capital
project
Historic
England
Other
charitable
income
Theatre
rents		 General
£		 2021
Designated
Restricted
£
£		 2021
Designated
Restricted
£
£		 Total
£
-
-
-
-		 -
-

40,000

40,000		 24,250
24,250
-
24,250		 24,250
24,250
40,000
64,250

----- Start of picture text -----
20 2021
Unrestricted Restr Unrestricted Restricted Total
4 £ £ £ £ £ £
OTHE
R
TRADI
NG
INCOM
E
Prop
erty
renta
l
inco 76,50
me 4 - 76,504 69,772 - 69,772
-
69,772 69,772
-
76,50 76,504
4
----- End of picture text -----

5 INVESTMENT
INCOME
Interest		 2022
Unrestricted
Restricted
Total

16

BLACKPOOL GRAND THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022 Dividends

6 OTHER INCOME

Insurance claim
7 COSTS OF RAISING FUNDS
Costs of rental and room hire
Establishment costs
Professional costs
Other costs
Support costs
Total
8 CHARITABLE EXPENDITURE
Establishment costs
Other charitable expenditure
Capital project
Depreciation
Support costs
Depreciation to restricted funds		 -
-		 -
-		 -
-
2,928
-
702
17,521
21,152
55,635
375
-
146,015
59,564
-
261,588		 14,738
14,738		 -
-		 14,738
14,738
2,928
-
702
17,521
21,152		 -
-
-
-
-		 1,469
4,422
1,228
9,694
16,813		 -
-
-
-
-		 1,469
4,422
1,228
9,694
16,813
39,921
-
-
146,015
54,804
(33,629)
207,110		 15,714
375
-
-
4,760
33,629
54,478		 27,916
-
-
142,392
51,958
(36,867)
185,399		 -
359
37,376
-
-
36,867
74,602		 27,916
359
37,376
142,392
51,958
-
260,001

No costs (2020/21 - none) have been charged to designated funds in respect of the provision of the theatre and equipment to A&E, this year. Deprecation of £112,511 (2020/21 - £105,525) was charged to designated funds.

SUPPORT & GOVERNANCE
OSTS
Support costs
Management charge
Office and other costs
Total support costs
Governance
Audit and accountancy fees
Consultancy and legal fees		 Fundraising 2022
Charitable		 £
66,566
736
67,302
4,225
5,558
9,783
Total		 2021
Fundraising
Charitable		 Total
£
12,262
368
12,630
2,113
2,779
4,892		 £
54,304
368
54,672
2,113
2,779
4,892		 £
£
6,977
49,242
231
231
7,208
49,473
2,063
2,063
423
422
2,486
2,485		 £
56,219
462
56,681
4,126
845
4,971

9 SUPPORT & GOVERNANCE COSTS

17

BLACKPOOL GRAND THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

17,521 59,564 77,085 9,694 51,958 61,652

Costs that can be wholly attributed to either support or governance are allocated directly to those functions, and other costs are allocated either on the basis of the estimation of time spent (by the external management team) or consumption of resources (office costs).

10 NET INCOMING RESOURCES AFTER TRANSFERS
This is stated after charging/(crediting):
Auditors fees
Report
Accountancy
Depreciation charged on functional fixed assets
Depreciation charged on heritage assets
Directors' remuneration & trustees' expenses		 2022
£
2,235
1,990
124,550
21,590
-		 2021
£
2,136
1,990
120,802
21,590
-

11 STAFF INFORMATION

a Staff costs

The charity does not employ its own staff. Management and administration services are provided by the charity Blackpool Grand Theatre (Arts & Entertainments) Ltd, for which it charges a management fee.

b Key management personal

The key management personal comprise the trustees, who do not receive any remuneration for their services.

12 TANGIBLE FIXED ASSETS

Cost
As at April 1 2021
Additions
Disposals
As at March 31 2022
Depreciation
As at April 1 2021
Provided
Disposals
As at March 31 2022Net
Book Value
As at March 31 2022
As at March 31 2021
13 HERITAGE ASSETS
Cost
As at April 1 2021
As at March 31 2022
Depreciation		 Land &
Buildings
£
1,711,671
-
-
1,711,671
729,855
57,622
-
787,477
924,194		 Land &
Buildings
£
1,711,671
-
-
1,711,671
729,855
57,622
-
787,477
924,194		 Land &
Buildings
£
1,711,671
-
-
1,711,671
729,855
57,622
-
787,477
924,194		 Furniture &
equipment
£
1,374,151
11,838
(129,820)
1,256,169
1,125,409
60,885
(129,820)
1,056,474
199,695		 Furniture &
equipment
£
1,374,151
11,838
(129,820)
1,256,169
1,125,409
60,885
(129,820)
1,056,474
199,695		 Stage
Equipment
£
323,932
4,144
-
328,076
307,518
6,043
-
313,561
14,515		 Stage
Equipment
£
323,932
4,144
-
328,076
307,518
6,043
-
313,561
14,515

Total
£
3,409,754
15,982
(129,820)
3,295,916
2,162,782
124,550
(129,820)
2,157,512
1,138,404













981,816
248,742
16,414
1,246,972
Land &
Buildings
£
1,428,146
1,428,146		 Total
£
1,428,146
1,428,146

18

BLACKPOOL GRAND THEATRE TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022
As at April 1 2021
Provided
As at March 31 2022Net
Book Value
As at March 31 2022
As at March 31 2021
The five year financial summary of heritage asset transactions is as follows;
2017/18
2018/19
2019/20
£
£
£
Land and buildings acquisitions
-
-
-
2022
14 DEBTORS
£
Trade debtors
23,850
Income receivable
-
Other debtor - Blackpool Grand Theatre (Arts & Entertainments) Ltd
-
VAT refundable
-
Prepayments
15,974
39,824
2022
15 CURRENT ASSET INVESTMENTS
£
Listed other shares
22
Unlisted investments
150
172		 BLACKPOOL GRAND THEATRE TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022
As at April 1 2021
Provided
As at March 31 2022Net
Book Value
As at March 31 2022
As at March 31 2021
The five year financial summary of heritage asset transactions is as follows;
2017/18
2018/19
2019/20
£
£
£
Land and buildings acquisitions
-
-
-
2022
14 DEBTORS
£
Trade debtors
23,850
Income receivable
-
Other debtor - Blackpool Grand Theatre (Arts & Entertainments) Ltd
-
VAT refundable
-
Prepayments
15,974
39,824
2022
15 CURRENT ASSET INVESTMENTS
£
Listed other shares
22
Unlisted investments
150
172		 BLACKPOOL GRAND THEATRE TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022
As at April 1 2021
Provided
As at March 31 2022Net
Book Value
As at March 31 2022
As at March 31 2021
The five year financial summary of heritage asset transactions is as follows;
2017/18
2018/19
2019/20
£
£
£
Land and buildings acquisitions
-
-
-
2022
14 DEBTORS
£
Trade debtors
23,850
Income receivable
-
Other debtor - Blackpool Grand Theatre (Arts & Entertainments) Ltd
-
VAT refundable
-
Prepayments
15,974
39,824
2022
15 CURRENT ASSET INVESTMENTS
£
Listed other shares
22
Unlisted investments
150
172		 BLACKPOOL GRAND THEATRE TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022
As at April 1 2021
Provided
As at March 31 2022Net
Book Value
As at March 31 2022
As at March 31 2021
The five year financial summary of heritage asset transactions is as follows;
2017/18
2018/19
2019/20
£
£
£
Land and buildings acquisitions
-
-
-
2022
14 DEBTORS
£
Trade debtors
23,850
Income receivable
-
Other debtor - Blackpool Grand Theatre (Arts & Entertainments) Ltd
-
VAT refundable
-
Prepayments
15,974
39,824
2022
15 CURRENT ASSET INVESTMENTS
£
Listed other shares
22
Unlisted investments
150
172		 BLACKPOOL GRAND THEATRE TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022
As at April 1 2021
Provided
As at March 31 2022Net
Book Value
As at March 31 2022
As at March 31 2021
The five year financial summary of heritage asset transactions is as follows;
2017/18
2018/19
2019/20
£
£
£
Land and buildings acquisitions
-
-
-
2022
14 DEBTORS
£
Trade debtors
23,850
Income receivable
-
Other debtor - Blackpool Grand Theatre (Arts & Entertainments) Ltd
-
VAT refundable
-
Prepayments
15,974
39,824
2022
15 CURRENT ASSET INVESTMENTS
£
Listed other shares
22
Unlisted investments
150
172		 203,597
21,590
225,187
1,202,959		 203,597
21,590
225,187
1,202,959		 203,597
21,590
225,187
1,202,959
2021/22
£
-
2021
£
17,634
13,431
121
-
13,686
44,872
2021
£
22
150
172
1,224,549

1,224,549
2020/21
£
-
2022
£
23,850
-
-
-
15,974
39,824
2022
£
22
150
172

19

BLACKPOOL GRAND THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

The listed investments are listed on a recognised stock exchange.

Values b/f
Disposals in year
Gains/loss on revaluations
Value at year end
Cost
16 CREDITORS falling due within one year
Trade creditors
Accruals
Other taxation and social security
Deferred income
17 CREDITORS due in more than one year
Debenture loan		 22
22
60
964
9,976
7,451
29,520
47,911
50,000
50,000
28
(6)
22
60
1,523
11,895
3,646
20,983
38,047
50,000
50,000

The debenture loan from Blackpool Council is secured by a first fixed charge over the freehold land and buildings and other assets of the company.

The loan is interest free, and is repayable if the theatre ceases to be used by the charitable company in accordance with its principal objectives, or if at any time the theatre or part of it is sold or leased to a company for a term exceeding twenty-one years.

17 STATEMENT OF FUNDS

20

BLACKPOOL GRAND THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

Designated funds

Equipment purchase fund for A&E

18 STATEMENT OF FUNDS (continued)

21

BLACKPOOL GRAND THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

The trustees have established a policy of designating a sum equivalent to the charge made for the use of equipment by A&E net of additions in the year, to create a fund to purchase future equipment for use by A&E. Although A&E can ask for specific equipment to be purchased the decision whether to do so or not remains with the trustees of this charity.

Investment in fixed assets

The value of fixed assets, including heritage assets, not represented by capital grants expended is transferred to the designated fund investment in other fixed assets, and depreciation on those assets is charged to this fund each year. periods.

Capital Grants expended

Restricted grants used to purchase fixed assets where there are continuing restrictions, but against which related depreciation is charged. When the restrictions have been met in full, the balance is transferred to unrestricted funds. Other restricted funds

Flower fund To provide flowers in the theatre Theatre Heritage fund To preserve and catalogue the archives 125 Appeal Funds raised for the next capital refurbishment marking the 125th anniversary.

19 ANALYSIS OF COMPANY NET ASSETS BETWEEN FUNDS

ANALYSIS OF COMPANY NET ASSETS BETWEEN FUNDS
Fund balances at March 31 2022 are represented by:-
Fixed assets (functional and heritage)
Net Current assets
Creditors falling due in more than one year
Fund balances at March 31 2021 are represented by:-
Fixed assets (functional and heritage)
Net Current assets
Creditors falling due in more than one year		 Unrestricted funds
General
Designated
£
£
-
1,894,575
98,018
193,226
(50,000)
-
48,018
2,087,801
-
1,991,104
78,086
164,556
(50,000)
-
28,086
2,155,660		 Restricted
Funds
£
446,788
167,117
-
613,905		 Total
£
2,341,363
458,361
(50,000)
2,749,724
-
78,086
(50,000)
28,086		 1,991,104
164,556
-
2,155,660		 480,417
127,568
-
607,985		 2,471,521
370,210
(50,000)
2,791,731

20 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES

Net income/(expenditure)
Add back depreciation
Deduct interest income shown in investing activities
Deduct profit/add back losses on disposals of FA
Add back unrealised loss on investments
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash generated from/(used in) operating activities		 2022
£
(42,007)
146,140
(1,258)
-
5,048
9,864
117,787		 2021
£
(88,165)
142,391
(1,900)
-
6
(16,602)
(61,611)
(25,881)

21 CONSTITUTION

The Company is limited by guarantee and does not have a share capital. In the event of the Company being wound up the members are committed to contributing £1 each.

22 TAXATION

22

BLACKPOOL GRAND THEATRE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

The Company is a registered charity and is entitled to claim annual exemption from UK corporation tax.

23 CAPITAL COMMITMENTS

There were no capital commitments authorised and contacted for at the end of the year (2021 £Nil).

24 RELATED PARTY TRANSACTIONS AND CONTROLLING PARTY

The charity has no controlling party. The members, who appoint the trustees, are independent of each other and no individual has a significant proportion of the voting rights.

The Friends of the Grand

The Friends of the Grand ( a registered charity) have the right to appoint one trustee and were represented during the year by Mr Grady. During the year they made donations to the Trust totalling £65,000 towards major repair costs as part of the ongoing capital project.

Blackpool Grand Theatre (Arts and Entertainments) Ltd (A&E)

A&E is a registered charity and is the company that operates the Grand Theatre. There is a lease in place between the Trust and A&E, in respect of the theatre. This provides for a basic rent of £40,000 pa with an additional payment based on 1% of the unrestricted surplus of A&E, after its free reserves reach £250,000 and after providing for a £20,000 allocation to its programme reserve.

For 20/21, the Trust has agreed that no additional rent will be payable by A&E on its surplus for that year even though the reserves exceed £250k, in order to allow A&E greater security as it builds back post COVID-19.

Additional during the year the Trust made one of the shops available to A&E as additional office and box office space for which rent of 46,1155 was paid.

In addition A&E provides management services to the Trust (which employs no staff of its own).

During the year Trust had the following transactions with the A&E:

Rent and hire charges to A&E
Management charges to the Trust
Amount due (to)/from the A&E at the year end		 86,115 40,000
66,566 66,566
- 121

There are no other related party transactions which are required to be disclosed.

23