Charity Registration No. 701194 Company Registration No. 02332073 (England and Wales) THE MALTINGS (BERWICK) TRUST CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
THE MALTINGS (BERWICK) TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustees Jonalhan Lang Scoll Sherrard Benjamin Curthoys Helen Milner Wendy Barrett (Appointed 1 April 2023) Executive Director and Chlef Executive Rosanne Lamont Also known as The Maltings Se¢retary Rosanne Lamont Charlty number 701194 Company number 02332073 Règlstered offlce The Maltings Theatre & Cinema Eastern Lane Berwick upon Tweed TD15 1AJ Audltor Sumer Auditco Limited Unil 2. Gosforth Park Avenue Newcastle upon Tyne NE12 8EG Bankers CAF Bank Limited 25 Kings Hill Avenue West Malling Kent ME194JQ Accountsnt JH Greenwood & Company Limited Ava Lodge Castle Terrace Betwick upon Tweed TD15 1NP Solicitors Sander50n Mccreath & Edney 4 Quay Walls Berwick-upon-Tweed TD15 1HD
THE MALTINGS (BERWICK) TRUST CONTENTS Page Trustees, report Independent auditor's report Group Slalement of financial activities 14-15 Group Balance sheet 16-17 Charity Balance sheet 18-19 Group Slalement of cash flows 20 Notes lo the financial statements 21-42
THE MALTINGS (BERWICK) TRUST TRUSTEES, REPORT (CONTINUED) (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 The tru51ees present their report and together with the consolidated financial statement5 of the charily and its subsidiary for the year ended 31 March 2024. The financial statements have been prepared in accofdance with the accounting policies sel out in note 1 to the financial statements and comply with the charity's governing document, the Companies Acl 2006 and "Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021" (effective 1 January 2019). Objectives and activities The charity's objects are to "promote, maintain, improve and advance education particularly by the encouragement and provision of all forms of the Arts. Principally for. bul not restricted lo, everyone in the North East of England and the Scollish Borders" The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. The Iruslees, who are also the directors for the purpose of company law, and who Seed during the year and up lo the dale of signature of the financial statements were.. Scott Sherrard Jonathan Lang Laura Catterall Benjamin Curthoys Dean Jackson Helen Milner Wendy Barrett Matthew Runham (Resigned 11 January 2024) (Resigned 15 August 2024) (Appointed 1 April 20231 {Resigned 7 June 2023} Staff team as at 31 March 2024 Programme Managgr.. Venues tgam.. Daniel Cox Neil Davidson, Januario Espejo, Wendy Payn. Ross Graham Sarah Graham, Caitlin Mulch, Oliver Payn, Daniel Flannigan Shona Hammon Rosanne Lamont James Lowlher Cloudy Manningham James Manningham Anne Cranston Sally Wilson Val Tobias Vgnue Managor.. CEO.. Head of Visual Arts.. Admin.Assislant Technical Manager.. General Manager.. Hgad of Markgting Leaming & Engagement Manager (schools)
THE MALTINGS (BERWICK) TRUST TRUSTEES, REPORT (CONTINUED) (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 l. Chairman's statement 1.1 Introduction The Mallings (Bemick) Trust is the cultural heart of Berwick, and a key creative hub for North Northumberland. We are passionate about ensuring that exhibitions, cinema, live performances. and special events are available locally, delivered lo the very highest standard. and accessible to all. We operate across three venues {Ihe main venue al Eastern Lane, the Gymnasium Gallery in Bemick's historic Barracks and the Granary Gallery) as well as working off-site in the community. As an organisalion with social objectives, we have strong and active working partnerships with artists, community organisations, schools, higher education, our regional peers, and also a well-eslablished outreach and youth arts programme - community and audience engagement are al the core of what we do. We are the principal professional digital cinema serving a rural area of 1,000 square miles. Our visual arts programme is a major regional resource for visual arts development and learning, supports emerging artists and has an international reach for Ils artists residencies. Over the last 30 years, over 1,000 artists and companies have performed at The Mallings with over 1 million lickels sold. The annual programme is a rich and varied artistic mix arsd usually includes over 600 performances, events, screenings, and workshops. 1.2 The last year After the lingering trauma of the pandemic, il was refreshing to move steadily towards something more like 'business as usual" albeit in increasingly challenging economic limes. Confidence and audiences returned, especially for live performances, and particularly for the year's in-house production of Cinderella, our most successful pantomime ever. The breadth of our Visual Arts programme was ambitious and popular. Active community engagement continues to strengthen. 1.3 Thè futurè We look fOard with Optimism and purpose. Our pantomime will bring part of our history to a happy closè. Decant will then present an opportunity to build on our community engagement and activity. We shall continue to develop a fuller role in the town and Ihe region, playing our part as key partner in the Living Barracks and core contributor lo Create Betwick. The Trust will continue lo be central to the cullure-led regeneration of Berwick and the surrounding area, acting for as wide a cross-seclion of our community as possible, delivering additional projects that support well- being. address social isolation, engage early years and children both within and outwith formal education. We will face challenges. The coming year will be about transition as we prepare lo leave the theatre. Subject to planning approval, our cinema programme will be delivered through Ihe lemporary cinema al the Mob Store in the Barracks from March 2024. Change will be challenging for staff members as roles are redefined and for audiences as our programme inevitably changes. There will be some financial advantages to this exit timetable as the some of the effects of an anticipated fourfold increase in utililies costs will be mitigated. Nevertheless the continLfring high levels of inflation and an evident cost of living crisis are applying growing pressures on the commeicial operation al a lime when revenue funding is set to decline in real terms. Timely progress on the Iransformalion of Eastern Lane will be essential if we are to plan effectively for Ihe medium lo long term, and we are working with NCC lo ensure levels of appropriate support. With a strong business foundation, we are commilled lo confronting these challenges creatively and rigorously, recognising that our business model will of necessity require reinvention lo address operational and commercial reslraints.
THE MALTINGS (BERWICK> TRUST TRUSTEES, REPORT (CONTINUED) (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 1.4 Acknowledgements We are graleful for the continued support of our main funders Northumberland County Council and Arts Council England. The public's appelile and enthusiasm for our work continues to be a major asset and we continue lo be extremely grateful for their support. The Trust continues lo be indebted to all membeTS of staff and volunteers. led by CEO Ros Lamont, for their continuing enlhusiasm. commitment and loyalty. Finally. I musl thank my fellow Trustees for their enormous efforts, commitment and diligence throughout this year. Their experience, energy and wisdom have proven invaluable. Scott Sherrard Chalr of Trustees
THE MALTINGS (BERWICK) TRUST TRUSTEES, REPORT (CONTINUED) (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 2. Structure, governance and management 2.1 Governing Instruments The Trust is governed by a Trust Deed dated 2nd May 1989, and Memorandum and Articles of Association dated 12th October 2010 and as amended by Special Resolution 4th December 2017. 2.2 Organlsation of the charlty The Mallings {Betwickl Trust was established in 1989 as a company limited by guarantee and a re9lStered charity. The company has no share capilal. Every member of the charily promises. if the charity is dissolved while he or she a member or within e1ve months after he or she ceases lo be a member, lo contribute such sum (nol exceeding £10) as may be demanded of him or her lowards the payment of the debts and liabilities of the charity incurred before he or She ceases lo be a member, and the costs charges and expenses of winding up, and the adjustment of Ihe rights of the Gonlribulories among themselves. 2.3 Trustèes l Dlrectors The maximum number of TrusleeslDirectors is unlimited. Al each annual general meeting. the third of elected Trustees who have been longest in office are required to retire. A retiring elected Trustee is eligible for re- election for one additional term. The Board of Trustees meat formally èvery thrèe monlhs, with an annual general meeting held every autumn and further informal meetings as required. The Finance and General Purposes Sub Committee meets on a quarterly cycle beteen Board meetings and further as required. Policy decisions, risk management, fundraising, capital development and financial issues are regularly referred lo the Trustees. All programming, external affairs, resource and operational decisions are delegated to the Executive Director, who may consult the Trustees as required. The Trustees serving during the year ended 31 March 2024 as Directors of the company are noted above. 2.4 Trustees, Interests The Trustees. as Directors of the company, have subscribed lo guarantee the sum of up lo £10 each to the debts of the Trust in the event of a winding up. The Trustees have no other financial inleresls in The MaS1ings and all of their lime and services are provided on an entirely voluntary basis. 2.5 Risk statement The Board of Trustees lakes the risks to which The Mallings IBerwick} Trust is exposed very seriously. With additional emphasi5 on risk within SORP FRS 102, the Board has eslablished a rolling risk register. which is reviewed regularly by the full Board.
THE MALTINGS (BERWICK) TRUST TRUSTEES. REPORT (CONTINUED) (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 3. Achievements and performance 3.1 Cinema Cinema is an important revenue stream for us and one of our most universally appealing and accessible programme strands. The return of audiences to a local cinema a programme in Berwick has built steadily over the last year, but in common with the wider UK cinema sector- is slill negatively impacted by supply-side changes as film dislribulors, continue to release films on streaming channels at the same time as Big Screen cinema release. Some stand-oul film titles have proved very popular. and we are optimistic that our audiences will continue to build over time. We offer digital quality films in both our Main House and the Sludio, showing mainstream film titles throughout the year. Our Programme Manager also works closely with Berwick Film Society lo promote art house and foreign language films in Berwick. Our event broadcast progfamme ensures our community has easy access to the work of the National Theatre, Royal Opera House. and Royal Ballet, as well as live streams of popular music and visual arts events. We are also the home base for the Berwick Film and Media Arts Festival. 3.2 Performlng arts Our live programme continue5 to deliver a diverse mix of theatre, dance, music, family shows, community productions, popular entertainment and events across the performing arts, and has sold strongly throughout the year. We strengthened our partnership with the Bewick Literary Festival in 2023, hosting three near-5ell-put evening events in our Main House. The 2023 Pantomime ha5 broken all previous box office records, with 7,404 tickets sold (including 1,67410 schools) and £113,587 in gross revenues. 3.3 Visual Arts Through April 2023, we hosted a new exhibition Smoke and Drawings by Brazilian artist Lucia Nogueira al The Granary Gallery. Nogueira's practice encompassed sculptures and installations, video works and drawings and her work often alluded to the body and was concerned with the relationship between objects and language. Alongside her drawings is Nogueira's film Smoke, which was part of a sile-specific performance work presented for the Berwick Ramparts Project in 1996. The film explores the Iransilions between sea and sky, sky and land, night and day, the town's ramparts, and Berwick as the ultimate border town. 976 people visited the exhibition. In May, we opened our summer exhibition al The Granary Gallery. Anne Redpalh and Her Circle. curated in partnership with the Fleming Collection of Scollish Art. celebrates the life and work of one of Scotland's finest mid- 20th century artists. It includes 25 of Anne Redpalh's richly coloured landscapes, still lives and church interior5 alongside works from fellow Edinburgh School artists including Elizabeth Blackadder, William Crozier. David Michie, and Sir Robin Philipson. It also includes loans from Hawick Museum, Laing Art Gallery, MIMA and the Ruth Borchard Collection. We launched the exhibition with a sold-oul lecture in the Henry Travers Studio by curator and art historian Alice Strang, who explored Redpath's work in more detail and a preview of Ihe exhibilion which was allended by Anne Redpalh's granddaughter. We also partnered with Berwick Educational Association who will deliver a programme of exhibition tours, practical art workshops and lectures throughout the summer. The exhibition received five-slar Teview in The Scotsman, which said that 'This is a small show, bul because il is well selected and carefully hung it makes il very clear that she was one of the outstanding British painters of her generation. We also appointed artist Sneha Solanki lo undertake a Northern Bridge Consorlium Collaborative Doctoral Award (CDA) lo work with The Mallings and Newcastle University to examine the complexities of access to the countryside for global majority communities. Starting in September 2023. Sneha has been work collaboratively, alongside researchers and academics at Newcastle University, to develop creative methodologies and research that increase understanding of how cultural organisations can support and increase diversity in rural areas. In July. we launched a new exhibition al the Gymnasium Gallery by Glasgow based action research group Durty Beanz. The group were OUT artists in residence during 2022 and worked with Newcastle University's Centre for Rural Economy to examine rural food production, its consumption and how ils value is constructed by producers and consumers. The resulling film followed a fictional television presenter and her crew as they travelled across Northumberland, apparently shooting some kind of documentary about the region's food and farms. However, the presenter's confusion in the face of everything she encounters offered both a comedic and poignant space for reflection and an invitation lo think twice about some of the language, values and ideas commonly associated wilh contemporary issues of food, environment and technology.
THE MALTINGS {BERWICK) TRUST TRUSTEES. REPORT (CONTINUED) (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Swedish based sculptor and musician Mats Wikslrom visited Berwick for 3 weeks as part of our ongoing partnership with Swedish Lapland AIR in Ihe Norbotten region of North Sweden. 3.4 Learning & engagement Lucia Nogueira: Smoke and Drawings exhibition sGhool visits and workshops 3 Berwick school classes had a guided visit lo the exhibition prior lo Easter which have been followed by a kile-making and dance workshop in school in early May led by artists Chloe Smith and Greer Pester. We attended the LCEP North East regional meetings for LCEPS held in Newcastle, which clarified the closure of Culture Bridge North East and brought reps from LCEPS across the North East together to discuss progress and challenges with the LCEP model of working. 18 animations have been created inspired by Ihe rellective Talk Time journals thal pupils create as part of their PHSE curriculum. Animator, Robin Webb worked with each Year 7 pupil al Tweedmoulh Middle School190 pupils) for 3 days. Pupils also used their Art and English lessons to create the narralive. images and videos, so their assets wère ready for each day they worked directly with him. With a focus on using drama and theatre skills lo build pupil confidence and oracy skills. 10 sessions have taken place al Berwick Academy since Christmas working with 18 x Year 9 students, the sessions were delivered by Wendy Payn and Ross Graham and the pupils were selected by staff as needing support. The pupils had a chance to use Mallings costumes and their last session included a performance from Peter Pan. A follow-up meeting with staff to discuss how to take this work forward is being organised. Both programmes are designed lo build pupil ¢onfiden¢e and assist with pupils, health and wellbeing and have been evaluated using the PERMA Framework Toolkit and are part of a wider Northumberland LCEP programme. The Northumberland LCEP group will be taking the data collected from above activity and collate wilh finding5 from the other programmes taking place across Northumberland led by Mortal Fools, Music Partnership North and Queens Hall Arts. Inspired by their Ugly Duckling production which came to The Maltings al Easter, Northern Ballet delivered workshops al Berwick St Mary's First School with 68 pupils and adapted sensory workshops in The Grove Special School with 48 pupils in mid-march. We have since had a conversation with The Grove School to find out how Maltings could provide arts activity for additional needs pupils. they were keen to feed into the design of the new building. Tweedmoulh Middle School are again using quilling as part of Ihe Design and Technology curriculum for year 7 and year 8 cohorts this year, this is continuing the learning from the quilting project ran in the school last year inspired by our Quilling.. Resurgence exhibition visits and workshops. They are also preparing to submit 33 pupils for their Arts Award Explore award, this is Ihe highest number submilled since 2017 when we started supporting them with NAD Visual Arts funding and our workshops for the award. We also worked closely and successfully wilh Northumberland Libraries for October 2023's The Big Draw Festival, including sensory workshops for Early Years and young people with special educational needs. 3.5 Trading subsidiary Trading income for the Maltings Betwick Catering Company has built through the year. and the café in particular remains a popular destinalion for locals and visitors throughout the year.
THE MALTINGS (BERWICK) TRUST TRUSTEES. REPORT (CONTINUED) (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 3.6 Plans for the future We will, in common with the wider cultural sector, continue lo work in a context of escalating economic challenges - wage expectations in line with inflation, escalating cost of living and so less disposable income. significanl increases in utilities and overheads costs, slandslill I decreasing revenue funding. We are committed to a creative and rigorous approach lo managing our operations and programme, lo the streamlined and efficient use of all our resources going forward, and lo revising our business model and approach in line with operating conslrainls and challenges as required. Our goal is to ensure a solid business foundation for an on-going period of significant transition and change as we work with NCC on the Eastern Lane capital development. However, project slippage has impacted negatively on our short to medium term operations, and our ability to plan long term. and this continues to be a significant challenge and source of frltslralion. We are working closely with NCC to ensure we are adequately supported through this protracted period of change. A5 ever. we will strive to deliver a finely judged balance between delivering against financial, social and artistic objectives in all our endeavours. Growing our engagement with new audiences continues to be central lo our future planning. 4. Engaging wlth the Community We will continue lo cultivate productive ils working relationships with all the local organisalions and partners who use our resources and facilities, including Berwick Academy. Berwick Creative Guild, Berwick Community Trust, Beick Educational Association. Berwick Film Society, Berwick Film and Media Arts Festival, Berwick Literary Festival, Berwick Middle School, Betwick Operatic Sociely, Holy Trinity First School, Longridge Towers School, Mallings Youth Theatre, North Northumberland Voluntary Forum. Northumberland Arts Development, Thursday Singers, and Tweedmoulh Middle School. 5. Flnanclal revlew 5.1 Reslricted fundlng grants 2022123 Restricted funds continue lo support initiatives and projects which are ongoing. 5.2 Inveslment policy and performance The Board's investment powers are sel out in the Trustee Act 2000. The Mallings (Berwick) Trust can invesl until needed any part of its capital or income nol required for the immediate running of the organisalion. Interest rates remained relatively low resulting in minimal earnings from interest for 2023124.11 is the Board's objective to provide the best possible return from investments, as well as conforming lo the Trusl's policy on ethical investments. 5.3 Reserves The statement of financial activilies shows lolal incoming resources lo be £1,168,152 (2023.. £1,170,158). The deficit on the unrestricted funds for the year before transfers amounted to £8,732. Unrestricted funds at the end of Ihe period amounted lo £189,656 12023.. £198,388}. Restricted funds al the end of the period amounted to £66,868 (2023.. £79,517). The Trust had sufficient liquid funds Ihis year to meet obligations and did not require to draw down from the Endowment Fund. It is the policy of the charity that we aim to ensure that unrestricted funds which have not been designated for a specific use should be maintained at a minimum level equivalent lo three month's operating costs. Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able lo continue the charity's current activities while consideration is given lo ways in which additional funds may be raised. The current economic silualion is challenging bul Ihe Trustees believe that the actions taken lo control cosls and conserve resources will mean an adequate level of reseNes can been maintained throughout the year to assisl with working capital needs.
THE MALTINGS (BERWICK) TRUST TRUSTEES, REPORT (CONTINUED)(INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 As can be seen in note 28, the 'free reserves, of the charity (defined as those unrestricted funds not designated for specific purposes or tied up in fixed assets) stood al £92,497 at the year end12023'. £84,923). 5.4 Fixed assets Movement in fixed assets are shown in note 17 to Ihe accounts. 5.5 Publlc benefit In considering the operation, achievements and performance and finances of the charity, the direclor51truslees are satisfied that public benefit has been provided in accordance with the Charities Act 2011 and guidanGe provided by the Charities Commission. 5.6 Golng Concern The Trustees have determined that the charity has sufficient liquidity lo continue its charitable activities for al least twelve months. Therefore, the Tfustees are of the opinion that the financial statements should be prepared on a 90ing concern basis. Statement of trustees, responslbilitles The trustees, who are also the directors of The Maltings (Berwickl Trust for the purpose of company law, are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally A¢¢epted Accounting Practice). Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for Ihal year, In preparing these financial slatemenls, the Iruslees are requiréd to.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles in the Charities SORP., make judgements and eslimales that are reasonable and prudent., stale whether applicable UK Accounting Standards have been followed, subjecl to any malefial departures disclosed and explained in the financial statements., and prepare Ihe financial slalemenls on the going concern basis unless il is inappropriate lo presume Ihal the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any lime the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are a150 responsible for safeguarding Ihe assets of the charity and hence for laking reasonable steps for the prevention and detection of fraud and other irregularities.
THE MALTINGS (BERWICK) TRUST TRUSTEES. REPORT (CONTINUED){INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Small company exemptions This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of Ihe Companies Act 2006. Auditor In accordance with the company's articles, a resolulion proposing that Sumer Auditco Limited be reappointed as auditor of the company will be pul al a General Meeting. Disclosure of Information to auditor Each of the Iruslees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and lo establish that the auditor is aware of such information. The Iruslees, report was approved by the Board of Trustees. Scott Sherrard Chalr of Trustees Dated:
THE MALTINGS (BERWICK) TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MALTINGS (BERWICK) TRUST Opinion We have audited the financial statements of The Mallings (Betwick) Trust (the 'parenl company'l and il's subsidiary (the 'group) for the year ended 31 March 2024 which comprise the group slalemenl of financial activities, the group balance sheet, the charitable company balance sheet, the group statement of cash flows and the notes lo the financial slatements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in rhe UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice In our opinion, the financial slalements.. give a true and fair view of the state of the parent charitable company's affair5 as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in a¢¢ordance with United Kingdom Generally Ac¢epied A¢counting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. 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 slalements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including Ihe 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. Concluslons relatlng to golng concern In auditing the financial slalements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial slalemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainlie5 relating to events or conditions that, individually or collectively. may cast significant doubt on the charity's ability lo continue as a going concern for a period of at least twelve months from when the financial 51alemenls are aulhorised for issue. Our responsibilities and the responsibililies of Ihe Iruslees with respect lo going concern are described in the relevant sections of this report. Other Infomiatlon The other information comprises the information included in the annual report other than the financial statements and our audilo¢s report Ihereon. The Iruslees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except lo the exlenl otherwise explicitly slated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether Ihe other irbformation is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears lo be materially mis5taled. If we identify such material inconsistencies or apparent material misslalemenls. we are required lo determine whether Ihis gives rise to a material misstatement in the financial slatemenls themselves. If, based on the work we have performed. we conclude that there is a material misstalemenl of this other information. we are required lo 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 our audil.. the information given in the trustees, report for the financial year for which Ihe financial statements are prepared, which includes Ihe directors, report prepared for Ihe purposes of company law, is consistent with the financial slalemenls., and the directors, report included within the trustees, report has been prepared in accordance with applicable legal requirements. -10-
THE MALTINGS (BERWICK) TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MALTINGS (BERWICK) TRUST Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and the parent charilable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report included within the trustees, report. We have nothing to report in Tespecl ofthe following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us,. or the financial statements are not in agreement with the accounting records and reluTns', or certain disclosures of Iruslees, remuneration specified by law are not made., or we have not received all the information and explanations we require for OUT audit., or the Iruslees were not enlilled to prepare the financial slalemenls in accordance with the small companies regime and lake advantage of Ihe small companies, exemptions in prèparing the Iruslees, report and from the requirement to prepare a strategic report. Responsibilities of trustees As explained more fully in the slalemenl of trustees, responsibilities, Ihe Iruslees, who are also the directors of the charity for the purpose of company law, are responsible for Ihe preparalion of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Iruslees determine is necessary to enable the preparation of financial statements that are free from material misslalemenl, whether due lo fraud or error. In preparing the financial slalemenls, the trustees are responsible for assessing the group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Iruslees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but lo do so. Audltor's responslbllities for the audit of the flnanclal statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due lo fraud or error, and to Issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance bul is not a guarantee that an audit conducted in accordance with ISAS (UK) will always delect a material misstatement when it exisls. Misslalemenls 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 slalements. The extent lo which our procedures are capable of delecling irregularities. including fraud, is detailed below. Capability of the audlt In detecting irregularities, Including fraud Based on our understanding of the charitable company and the sector in which it operales, we identified that the following laws and regulations are significant lo the entity.. Those laws and regulations considered lo have a direct effect on the financial statements including UK financial reporting standards. Company Law and Charity Law. Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the charity and therefore may have a material effect on Ihe financial statements include compliance with charitable objectives, public benefit, fundraising regulations, safeguaTding and health and safety legislation. These mallers were discussed amongst the engagemenl team al the planning stage and the team remained alert Ihroughout the audit. Audit procedures undertaken in response to Ihe potential risks relating lo irregularities (which include fraud and non-compliance with laws and regulations) comprised of.. inquiries of management and the Trustees as to whether the entity complies with such laws and regulations,. enquiries with the same concerning any actual or potential litigation or claims,. inspection of relevant legal correspondence and legal costs incufred., review of Trustee meeting minutes., testing the appropriateness of journal entries., and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities,
THE MALTINGS (BERWICK) TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MALTINGS {BERWICK) TRUST including fraud. is limited by the inherent difficully in delecling irregularilies, the effectiveness of the entity's controls, and the nature. timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult lo detect than irregularities that result from error. As explained above, there is an unavoidable risk that maleiial misslalemenls may not be delecled. even though the audit has been planned and performed in accordance with ISAS (UK). A further description of our responsibilities is available on the Financial Reporting Council's website at.. https.'lthww.frc.org.uklauditorsresponsibililies. This descflption forms part of our auditor's report. Use of our report This report is made solely lo the company's members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might slate lo the company's members those matters we are required to state lo them in an auditor's report and for no other purpose. To the fullesl extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. Mr Stephen Slater (Sonior Statutory Auditor) for and on behalf of Sumer Audltco Llmlted Statutory Auditor Unlt 2, Gosforth Park Avenue Newcastle upon Tyne NE12 8EG Dated.. -12-
THE MALTINGS (BERWICK) TRUST GROUP STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Current financlal year Unreslricted Restricted Total Tolal funds funds 2024 2023 Notes Income and endowments from: Donations and legacies Chafltable activities Other trading activities Investments other income 318,404 485,447 341,123 1,208 2,260 16.210 3,500 334,614 488,947 341,123 1,208 2,260 283,352 467,736 337,212 894 80,964 Total income 1,148,442 19.710 1,168,152 1,170,158 Expenditure on: Raising funds Trading subsidiary Charitable activities Olhei 81,095 285,167 783,293 7,619 2,490 83,585 285,167 803,546 17,235 83,999 287,823 795,606 59,202 10 16 20,253 9,616 Total resources expended 1,157,174 32,359 1,189,533 1,226,630 Net Incomel{expenditur8} for the yearl Net movement In funds {8,732) (12,6491 121,381) (56,472) Fund balance5 at 1 April 2023 198,388 79,517 277,905 334,377 Fund balances at 31 March 2024 189,656 66,868 256,524 277,905 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing aclivilies. The slalemenl of financial activities also complies with the requirements for an income and expenditure accounl under the Companies Act 2006. -13-
THE MALTINGS (BERWICK) TRUST GROUP STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Prior financial year Unrestricted Restrlcted Total funds Funds 2023 Notes Income and endowments from: Donations and legacies Charitable aclivities other trading activities Investments Other income 274,732 436.938 337.212 894 18,000 8,620 30,798 283,352 467,736 337,212 894 80,964 62.964 Total income 1.067.776 102.382 1,170,158 Expenditure on: Raising funds Trading subsidiary Charitable activities Other 64,385 287,823 741,658 11,427 19.614 83.999 287,823 795.606 59,202 10 16 53.948 47,775 Total resources expended 1,105,293 121,337 1,226,630 Net Incomelléxpèndlturèl for the yearl Net movèment In funds (37,517) (18,955) (56,472) Fund balances al 1 April 2022 235.905 98,472 334.377 Fund balan¢è$ at 31 March 2023 198.388 79,517 277,905 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing aclivilies. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. -14-
THE MALTINGS (BERWICK) TRUST GROUP BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Notes Fixed assets Tangible assets Heritage assets Goodwill 17 18 19 70,917 55.300 107,386 55,300 2.580 126,217 165.266 Current asset8 Stocks Debtofs Cash al bank and in hand 21 22 8,295 172.657 122,029 7,244 107,628 135,866 302,981 250.738 Credltors: amounts falllng duè wlthln one year 23 <170,290) (135,935) Nel current assets 132,691 114.803 Total assets loss current liabilitles 258,908 280.069 Provlslons for Ilabllities (2,3841 (2,164) Net assets 256,524 277,905 Income funds Restricted funds Unrestricted funds - general 28 66.535 189.989 79,517 198.388 256.524 277,905 -15-
THE MALTINGS (BERWICK) TRUST GROUP BALANCE SHEET AS AT 31 MARCH 2024 The trustees acknowledge their responsibilities for ensuring Ihat the charily keeps accounting records which comply wilh section 386 of the Act and for preparing financial stalemenls. These financial statements have been prepared in accordance with Ihe provisions applicable to companies subject to the small companies regime. The financial slalements were approved by the Trustees on tli |,.r Scott Sherrard Chalr of the Board of Trustees Company Reglstratlon No. 02332073 -16-
THE MALTINGS (BERWICK) TRUST CHARITY BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Notes Fixed assets Tangible assets Heritage assets Investments 17 18 20 61,382 55,300 100 95,671 55,300 100 116.782 151.071 Current assets Stocks Debtors Cash at bank and in hand 21 22 901 172,402 103,327 1,100 117,252 119,328 276,630 237.680 Credltors: amounts falllng due withln one year 23 (142,174) {112,721J Net current assets 134,456 124,959 Net a88et8 251,238 278,030 Income funds Restricted funds Unrestricted funds 27 66,868 184,370 79,517 196.513 251,238 276,030 -17-
THE MALTINGS (BERWICK) TRUST CHARITY BALANCE SHEET AS AT 31 MARCH 2024 As permitted by s408 of the Companies Act 2006, the charity has not presented its own income and expenditure account and related notes. The charity's nel lexpenditurellincome for the year was (£24.792} (2023.. expenditure £59,704) The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The financial slalemenls were approved by the Trustees on <(11202f co Sher ard CThair of the Board of Trustees Company Registration No. 02332073 -18-
THE MALTINGS (BERWICK) TRUST GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operating activitles Cash generated from operations 30 (6,122) (138,781) Investing activities Purchase of tangible fixed assets Interest received (1,064) 1,208 16,475) 894 Net cash used In Investing activities 144 (5,5811 Financing activities Repayment of bank loans (7,859) {45,704} Net cash used In financing actlvltles (7,8591 (45,7041 Net (decreasellincrease In cash and cash equivalents 113,837) (190,0661 Cash and cash equivalents al beginning of year 135.866 325,932 Cash and cash equivalents at end of year 122,029 135,866 -19-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Charity informatlon The Maltings (Berwick) Trusl is a private company limited by guarantee incorporatèd in England and Wales. The registered office is The Mallings Theatre & Cinema. Eastern Lane, Berwick upon Tweed, TD15 1AJ. 1.1 Accounting convention The financial slalements have been prepared in accordance with the charity's memorandum and articles of association. the Companies Act 2006, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" I'FRS 102.1 and the Charities SORP ' Accounting and Reporting by Charities.. Stalemenl 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 1021" leffectiv8 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling. which is the functional currency of the charity. Monetary amounts in thesè financial statements are rounded to the nearesl £. The financial statements have been prepared under the histori¢al cosl convention, modified to include the revaluation of heritage assels at fair value. The principal accounting policies adopted are set out below. 1.2 Golng concern The financial slalemenls have been prepared on the going concern basis. The Board has a reasonable expectation Ihal the charity has adequate resources lo continue in operational existence for the foreseeable future. The Board has concluded that the goin9 concern assumption is appropriate in preparing these financial statements. The going concern basis assumes the on-going support of the Charity's bankers and principal grant providers into the foreseeable future. On thi5 basi5 the Board continues to prepare the accounts on the basis that The Mallings remains a going concern. In the event of wilhdrawal or major reduction in funding, the use of this basis may need lo be Teviewed. 1.3 Charltable fund8 Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designat8d for olher purposes. Restricted funds are subject lo specific conditions by donors as lo how they may be used. The purposes and uses of the reslricted funds are set out in the noles to the financial slalements. Restricted funds comprise'.- The Third Age Project.. for the provision of free theatre tickets and transport for the elderly only. Awards For All.. Projection Equipment.. for the purchase of a projector only. Communily FoundationlBusiness EnleTprise.' for funding improvements to the charitable companies web site. Arts Council Visual Arts Study.. for the visual arts study only. Berwick Visual Arts.. lo develop and promote visual arts wilhin the region. Borderlands.. for the provision of feasibility and planning work in relation to a new venue. NCC Branding: for developing new branding and visual identity for The Maltings (BeIckl Trust. -20-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies 1.4 Incoming resources PTe-produclion costs of events are recognised on the production dale. Income from productions is recognised on the production date. Donalions and grants are recognised when receivable, unless donors specify Ihat grants musl be used in future accounting periods, in which case the grant is deferred until those periods. Grants for the purchase of fixed assets are deferred and released in line with the depreciation on the fixed asset. When donors specify that donation5 and grants are for particular restricted purposes, which do nol amounl lo pre-conditions regarding enlillemenl. the income is included as reslricled income when receivable. Subsidiary income represents amounts receivable for goods and services net of VAT and trade discounts. Subsidiary income is atlribulable to the continuing principal activity of the catering subsidiary being a licensed restaurant and arose wholly within the United Kingdom. Programme Income Tepresents income which is derived from the Trust's own promotions or derived from hire of the venue. Governmènt grants Government grants are re¢ogni5ed al the fair value of the asset received or receivable when there is reasonable assurance that the grant condilions will be mel and the grants will be received A grant that specifies perlormance conditions is recognised in income when the perfoTman¢e conditions are mel. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. 1.S Resources expended Expenditure is recognised once there is a legal or conslruclive obligation lo transfer economic benefit lo a third party, it is probable that a transfer of economic benefits will be required in selllement, and the amount of the obligation can be measured reliably. Expenditure is classified by aclivily. The costs of each activity are made up of the total of direct costs and shared costs. including support costs involved in undertaking each aclivily. Direct costs allribulable to a single activity are allocated directly to that activity. Shared costs which contribute lo more than one activity and support cosls which are not allribulable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of lime spent, and depreciation charges are allocated on the portion of the asset's use. Resources expended are included on an accruals basis. Certain expenditure is directly allributable to specific aclivilies and has been included in those expenditure categories. Other costs, which are altribulable to more than one activity, are apportioned on the basis of an estimate of the proportion of lime spent by staff on those aclivilies. Governance costs are those incurred in the Trust and primarily associated with constitutional and slatutory requirements. Irrecoverable VAT is allocated to expenditure on charilable aclivilies which is disclosed in note 10 to the accounts. Programming expenditure only includes expenditure paid out artists engaged to undertake promotions on the Trust's behalf. -21-
THE MALTINGS {BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies 1.6 Tangible fixed assets Tangible fixed assets are inilially measured al cost and subsequently measured al cost or valuation. nel of deprecialion and any impairment losses. Depreciation is recognised so as lo write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. General equipment Office equipment & furnishings Computer equipment Studio refurbishment 50A 1100/0 Straight line 150kn reducing balance 25 /0 Straight line 100/0 Straight line The gain or loss arising on the disposa5 of an asset is determined as the difference between the sale proceeds and the carrying value of the assel and is recognised in nel incomel(expenditure} for the year. Fixed Assels purchased prior lo 31 March 2000 were capilalised al nel cost after deduction of donations and grants toward their cost. Grants towards capital items are now treated as income to a designated fund and amortised over the capital life of the assets acquired. Fixed Assets are reviewed regularly for impairment and written down lo their recoverable amount where necessary. 1.7 Herltage assets The Mallings holds a 1950 Model D Sleinway Piano which was donated by The Friends in 1990. Ils value al acquisition was £16,445 but, in accordancè with thè accounting treatment al the time, was held al £nil net book value in the ac¢ounls. Trustees recognise Ihat this asset has appreciated in value since acquisition and will do so further. The Steinway is held and maintained principally for ils contribution to culture within the 'communily and has significant historical and artistic qualities. Therefore. trustees have considered Ihal the Steinway should be accounted for as a heritage asset which, under accounting standard FRS 102, should be recognised on the balance sheet al ils current value. Independent market valuation at March 2014 has been formally obtained from Besbrodes and a figure of £50,000 placed on the asset. In 2011 The Mallings was donated an Ollo Schwartz Baby Grand Piano GP 142. This was purchased by the donor for £3,300 and has therefore subsequently been valued at this amount. This has also been valued by Besbrodes in 2014 al a value of £5,000 and so has been revalued to this amount in these accounts. In 2012 The Mailings was donated a Danemann Library Grand Piano. This has been included at an independent valuation by Besbrodes as al 31 sl March 2014 of £300. In the opinion of the Irustees, the value of these items has not significantly changed. The policy for receiving, accounting for, managing, preserving and disposing of such assels is held by Iruslees. The Maltings currently does not hold any other assets considered to be heritage assets but would account for these in the same way upon acquisition. Trustees regularly review the value of these assets. Following guidance laid down in the provisions of FRS 102. Trustees do not consider that depreciation is appropriate for this class of assets. -22-
THE MALTINGS {BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies 1.8 Goodwill Goodwill represents the excess of the cosl of acquisition of unincorporated businesses over the fair value of net assets acquired. 11 is initially recognised as an asset at cost and is subsequently measured al cost less accumulated amortisation and accumulated impairment losses. Goodwill shall be considered to have a finite usefLJI life and shall be amortised on a systematic basis over its life, bèing 5 years. 1.9 Fixed asset investments Fixed asset investments are initially measured al transaction price excluding transaction costs and are subsequently measured at fair value at each reporting dale. Changes in fair value are recognised in net incomel(expendilure) for the year. Transaction Gosts are expensed as incurred. A subsidiary is an enlily controlled by the charity. Conlrol is the power to govern the financial and operating policies of the entity so as lo obtain benefits from its activities. 1.10 Impairment of flxed a88ets At each reporting end date, the charity reviews the carrying amounts of ils tangible assets lo determine whether Ihere is any indication Ihal those assets have suffered an impairmenl loss. If any such indication exists, the recoverable amount of the asset is eslimaled in order lo determine the exlenl of the impairment loss lif any). Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the eslimaled future cash flows are discounted to their present value using a pre-tax discount rale that reflects current market assessments of the time value of money and the risks specific lo the assel for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced lo ils recoverable amount. An impairment loss is recogni5ed immediately in incomel{expendilure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment Ioss 15 Ireated as a revaluation decrease. Recognised impairment losses are reversed if, and only if. the reasons for the impairmenl loss have ceased lo apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of ils recoverable amount. but so Ihal the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in al a revalued amount, in which case the reversal of the impairment10s5 is treated as a rèvaluation increase. 1.11 Stocks Stocks include items for resale and are slated at the lower of cost and eslimaled selling price less costs to complete and sell. Nel realisable value is the estimated selling price less all eslimaled costs of completion and costs lo be incurred in marketing, selling and distribution. 1.12 Cash and cash equivalents Cash and cash equivalenls include cash in hand, deposils held at call with banks, other short-lerm liquid investments with original maturities of three months or less, and bank overdrafis. Bank overdrafts are shown within borrowings in current liabilities. -23-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies 1.13 Financial instruments The charity has elected to apply the provisions of Seclion 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial inslrumenls. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the nel amounts presented in the financial slatemenls, when there is a legally enforceable right lo sel off the recognised amounts and there is an intention to settle on a net basis or lo realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement conslilules a financing transaction. where the Iransaclion is measured at the present value of the future recèipts discounted al a market rate of interest. Financial assets classified as receivable within one year are not amortised. Baslc flnanclal liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured al the present value of the future payments discounted al a market rate of interest. Financial liabilities classified as payable within one year are not amortisèd. Debt inslruments are subsequently Carried at amortised cost, using the effective interest rate method. Trade creditors are obligations lo pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, Ihey are presented as non-currenl liabilities. Trade credilors are recognised initially at Iransaclion price and subsequently measured at amortised cost using the effective interest method. Derecognltlon of flnanclal Ilabllltles Financial liabilities are derecognised when the charity's conlraclual obligations expire or are discharged or cancelled. 1.14 Employee beneflts The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the charity is demonslrabSy committed to terminate Ihe employment of an employee or lo provide termination benefits. 1.15 Retirement benefits Payments lo defined conlribulion retirement benefit schemes are charged as an expense as they fall due. Eligible staff are admitted lo the NEST Auto Enrolment pension scheme with the employer's conlribution currenlly confirmed at 30/0 of salary. 1.16 Leases Rentals payable under operating leases, including any lease incentives received. are charged as an expense on a straight line basis over the term of the relevant lease. -24-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollcies 1.17 Legal status of the charity The company is limited by guarantee and has no share capital. In the evenl of a winding up, every member undertakes to contribute to the payment of liabilities such amount as may be required not exceeding the total of£1. Criti¢al accounting estimates and judgements In the application of the charity's accoltnling policies, the trustees are required to make judgements, estimates and assumptior15 about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimales. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which Ihe estimalo is revised where Ihe revision affects only that period, or in the period of Ihe revision and future periods where the revision affects both current and future periods. Crltlcal Judgements The following judgements (apart from those involving estimates> have had the most significant effect on amounts recognised in the financial slatements. Assesslng Indlcators of impalrmenl In assessing whether there have been any indicators of impairment of assets, the trustees have considered both external and internal sources of information such as market conditions and experience of recoverability. There have bèen no valuations carried out by external surveyors lo report. Kèy sources of estlmatlon un¢ertalnty The eslimales and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities arè as follows. Determining residual values and useful economlc Ilves of tangible fixed assets The company depreciates tangible fixed assets over their estimaled useful lives. The estimation of the useful live5 of assets is based on historic performance as well as expectations about future use and therefore requires eslimales and assumptions to be applied by managemenl. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. Judgement is applied by trustees when determining the residual values for tangible fixed assets. When detefmining the residual value Iruslees aim lo assess the amount thal the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of ils useful economic life. Where POS5ible this is done with reference lo external market prices. The carrying amount of tangible fixed assèts of the group at the reporting end dale was £70.917 {2023.' £107.386} -25-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Donations and legacies Unrestricted Restricted funds funds Totsl 2024 Total 2023 Donations and gifts Grants received 16.397 302,007 16.397 318,217 13,408 269,944 16,210 318.404 16.210 334,614 283,352 For the year ended 31 Marth 2023 274.732 8.620 Grants recelvable for core activities Northumberland County Council Arts Council England. North East Charitable Trusts 122,373 179,634 122,373 179,634 16,210 80.691 179,633 9,620 16,210 302,007 16,210 318,217 269,944 Charltable actSvlties Current flnanclal year Theatre Clnema Vlsual Arts and Dance Classes Total Total 2024 2024 2024 2024 2024 2023 Sales within charitable activities Theatre tax relief Performance related grants Other income 227,071 61.475 131,278 3,102 25,487 386,938 61.475 38,744 311,522 78,000 69,932 38,744 1,790 1,790 8,282 288,546 131,278 43,636 25,487 488,947 467,736 Analysis by fund Unrestricted funds Reslricted funds 288,546 131.278 40,136 3,500 25.487 485,447 3,500 436,938 30,798 288,546 131,278 43,636 25,487 488,947 467,736 -26-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Charitable activities (continued) Prior financial year Theatre Cinema Visual Arts and Dance Classes Total 2023 2023 2023 2023 2023 Sales within charitable activities Theatre tax relief Performance related grants Other income 186,460 78,000 101,119 12,623 11,320 311.522 78.000 69,932 8,282 69,932 8,282 264,460 101,119 90,837 11,320 467,736 Analys18 by fund Unreslricled funds - general Reslricled funds 264,460 101,119 60,039 30.798 11.320 436.938 30,798 264.460 101,119 90,837 11,320 467,736 Other trading activities Unrestrlcted Unrèstrlcted funds funds 2024 2023 Subsidiary income (note 7) Bar & confectionery sales Letting 312,578 23,337 5.208 317,055 14,174 5,983 Other trading activities 341.123 337,212 Investment8 Unrestricted Unrestricted funds funds 2024 2023 Interest receivable 1,208 894 -27-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED> FOR THE YEAR ENDED 31 MARCH 2024 Commerclal trading operations and investment in trading subsidiary The wholly owned trading subsidiary, The Maltings {Betwick) Caterin9 Limited (company number 11853135), which is incorporated in the United Kingdom will pay ils entire available profils to the charity by gifi aid. The Mallings (Berwick) Catering Limited provides the trading services of the charity. The charity owns the entire share capital of 100 ordinary £1 shares. A summary of the trading results is shown below:. 2024 2023 Turnover C051 of sales 312,578 (84.954) 317,055 (81.753} Gross profit 227,624 235,302 Administration expenses 1222.101) 1229.906) Profit on ordinary activities before taxalion 5,523 5,396 Taxation 2,112 2.164 Profil after taxation 3,411 3,232 The assets and liabilities of the subsidiary were.. Fixed assets Current assets Creditors due within one year Credilors falling due after more than one year Net assets 9,535 26,787 128,5521 (2,3841 14,295 23,058 (33,214) (2,164) 5,386 1.975 Aggregate share capilal and reserves 5,386 1,975 Other Income Unrestricted Restricted funds funds 2024 2024 Total Vnrestricted Restricted funds funds 2023 2023 Total 2024 2023 Borderlands Live Barracks Access to work 62.964 62,964 18,000 18,000 2,260 2,260 2,260 2,260 18,000 62,964 80,964 -28-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Ralslng funds Unrestricted Restricted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Bar & confectionery costs Support and governance costs 10,506 10.506 7,959 7,959 70,589 2,490 73,079 56.426 19.614 76,040 Trading costs 81,095 2,490 83.585 64.385 19,614 83,999 10 Charitsble actlvltle8 Current financial year Theatre Clnoma Visual Arts and Dance 2024 Classe8 Tolal Total 2024 2024 2024 2024 2023 Staff costs Operating costs 696 68,049 15,182 7,553 15,878 193.111 72,881 223,118 55,776 61,733 68,745 55,776 61,733 22,735 208,989 295,999 Share of support costs (see note 111 Share of governance costs (see note 111 306,736 177,335 58,945 34.430 577,446 480,441 9,089 5,255 1,747 1.020 17,111 19,166 384,570 238,366 122,425 58.185 803,546 795,606 Analysls by fund Unrestricted funds Restricted funds 373.812 10,758 232,146 6.220 120,358 2,067 56,977 1,208 783,293 20,253 741,658 53,948 384.570 238,366 122.425 58,185 803,546 795,606 -29-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 10 Charitable activities {continuedl Prior financlal year Theatre Cinema Visual Arts and Dance 2023 Classes Total 2023 2023 2023 2023 Staff costs Operating costs 3,000 72.770 62.259 104.195 7.622 72,881 223,118 46,153 75.770 46,153 166.454 7.622 295,999 Share of 511PPOrt costs (see note 11) Share of governance ¢osls (see notè 11) 229,856 124,653 111,978 13,954 480,441 9,189 4,973 4,467 557 19,166 314,795 175,779 282,899 22,133 795,606 Analysls by fund Unreslricled funds Restricted funds 303,719 169,773 11.076 6,006 246,705 36,194 21,461 672 741,658 53,948 314,795 175,779 282,899 22,133 795,606 11 Support costs 2024 2023 Staff costs Depreciation and impairment Box office Premises & office costs Markeling General expenses GovernanGe costs 387,028 35,154 22,471 162,584 28,815 12,369 19,215 328.069 41,944 18,287 105.487 43,709 16,716 21,435 667,636 575,647 Analysed between: Fundraising Thealre Cinema Visual Arts and Dance Classes 73,079 315,825 182,590 60,692 35,450 76,040 239,025 129,626 116,445 14,511 667,636 575,647 -30-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 11 Support costs l¢ontinued} Governance costs comprise: Audit fees Accountancy 3,000 16,215 3,000 18,435 19,215 21,435 12 Net movement In funds The nel movement in funds is stated after chargingl(creditingl'. 2024 2023 Fees payable to the charily's auditor.. For the audit of the charity s financial statements For other financial services Depreciation of owned tangible fixed assels Amortisalion of intangible assets 3,000 3,500 35,154 2,580 3,000 3,600 41,944 2.580 13 Audltor remuneratlon The analysis of auditor's remuneration is as follows.. 2024 2023 Audit of the charily's annual accounts 3,000 3,000 Non-audit serrflces All other non-audil services 3,500 3,600 14 Employees Number of employees The average monthly number of employees during ihe year was.. 2024 Number 2023 Number Full time Part time 22 22 28 31 -31-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 14 Employees Icontinued) Employment costs 2024 2023 Wages and salaries Social security costs Other pension costs 545,628 26,560 9,629 551,583 22.120 8,699 581,817 582.402 The full lime equivalent of staff was 16 (2023.. 20). The number of employees whose annual remuneration was more than £60.000 is as follows., 2024 Number 2023 Number £60,000 to £69.999 Remuneratlon of key management personnel Key personnel is the CEO of the charity. The Temuneration of key management personnel is as follows. 2024 2023 Aggregate compensalion 60,781 56,708 15 Trustees None of the Iruslees (or any persons connected with them) received any remuneration or benefits from the charity during the year. -32-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 16 Other Unrestrlcted Restricted funds funds 2024 2024 Totsl Unrestrlcted Restricted funds funds 2023 2023 Totsl 2024 2023 Financing costs Borderlands expenditure Live Barracks expenditure 7,619 7,619 9,616 6,427 6,427 47,775 9,616 47,775 5,000 5,000 7,619 9.616 17,235 11,427 47,775 59.202 17 Tangible fixed assets - Group General Offlce Computer studlo equlpment oqulpment & equipmentrefurblshment furnishlngs Total Cost At 1 April 2023 Additions 181,756 30,705 1,064 51,195 333,407 597,063 1,064 Al 31 March 2024 181,756 31,769 51,195 333,407 598,127 Depre¢lation At 1 April 2023 Depreciation charged in the year 142,237 4,952 13.420 3,312 41,749 4.661 292,271 24,608 489.677 37,533 Al 31 March 2024 147,189 16,732 46,410 316,879 527,210 Carrying amount At 31 March 2024 34,567 15,037 4,785 16,528 70,917 At 31 March 2023 39,519 17,285 9,446 41,136 107,386 -33-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 17 Tanglble fixed assets - Charlty General Office Computer Studio equipment equipment & equipment refurbishment furnishings Total Cost Al 1 April 2023 Additions 181,756 13,058 865 50,332 333,407 578,553 865 Al 31 March 2024 181,756 13,923 50,332 333,407 579,418 Depreciation Al 1 April 2023 Depreciation charged in the year 142,237 4,952 7,138 1,003 41,236 4,591 292,271 482,882 24,608 35,154 At 31 March 2024 147,189 8,141 45,827 316,879 518,036 Carrylng amount At 31 March 2024 34,567 5,782 4,505 16,528 61,382 At 31 March 2023 39,519 5,920 9,096 41,136 95,671 18 Herltage assets- Group and Charlty Al 1 April 2023 and al 31 March 2024 55,300 19 Intanglble Flxed assets - Group Goodwill Cost or valuation At 1 April 2023 & 31 March 2024 12,900 Amortisation At 1 April 2023 Amortisalion charged in the year 10,320 2.580 Al 31 March 2024 12.900 Carrylng amount Al 31 March 2024 At 31 March 2023 2,580 -34-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 20 Fixed asset investments - Charity Other Investments Cost or valuation At 1 April 2023 & 31 March 2024 100 Carrying amount Al 31 March 2024 100 At 31 March 2023 100 2024 2023 Other investments comprise.. Investments in subsidiaries 100 100 21 Stocks Group 2024 Charlty 2024 2023 2023 Shop stock 8.295 7,244 901 1,100 22 Debtors Group 2024 Charlty 2024 2023 2023 Amounts falllng due within one Trade debtors Amounts owed by subsidiary undertakings Other debtors Prepayments and accrued income 15,662 10,713 15,407 10.337 10,000 92,995 3,920 151,352 5,643 92,995 3.920 151,352 5,643 172,657 107.628 172,402 117,252 -35-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 23 Creditors: amounts falling due wlthin one year Group 2024 Charity 2024 2023 2023 Notes Bank and other loans Other laxalion and social security Corporation tax Deferred income Trade creditors Other creditors Accruals 24 7,859 12,984 7,859 16,185 1,892 62,447 58,591 143 31,032 26 81,097 17,848 62.447 50,052 143 29,532 81,097 9,068 16,147 14,697 170,290 135,935 142,174 112,721 24 Loans and overdrafts Group 2024 Charlty 2024 2023 2023 Bank and other loans 7,859 7,859 Payable within one year 7,859 7,859 The charity entered into a loan agreement with Northumberland County Council on the 20 March 2015 for an amounl of £150,000. The term of this loan was for 10 years al a commercial interest of 3.870A and with repayments of £5,250 quarterly, commencing on 1 July 2016. The loan was fully repaid in the year. 25 Retlrement benefit schemes Defined contribution schemes The charity operates a defined contTibution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. The charge to the statement of financial activitie5 in respect of defined contribution schemes was £9,62912023'. £6,013). Al the balance sheet dale a pension liability of £nil (2023.. £nil) was outstanding. -36-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 26 Deferred income Group 2024 Charity 2024 2023 2023 Other deferred income 62,447 81,097 62.447 81,097 Deferred income is included in the financial statements as follows.. £45.426 for events planned and held later in 2024 {2023'. £57,933). £17,023 for unredeemed vouchers sold (2023. £22,717). Group 2024 Charity 2024 2023 2023 Deferred income is included wilhin.. Current liabilities 62,447 81,097 62,447 81,097 Movements in the year.. Deferred income al 1 April 2023 Released from previous periods Resources deferred in the year 81,097 130,751 (81,097) 1130,751) 62,447 81.097 81,097 130,751 {81,097) {130,7511 62,447 81,097 Deferred income at 31 March 2024 62,447 81.097 62,447 81,097 -37-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 27 Movement in funds Current financial year Movement In funds Incoming Resources resources expended Balance at 1 Aprll 2023 Transfers Balance at 31 March 2024 Unrestrlcted funds General funds 198,388 1.148,442 (1,157,174) 189.656 Restricted funds Artistic development Visual Arts StLsdy Awards For All - Projection Equipment Community FoundationlBusiness Enterprise Third Age Project Heather Sutherland Exhibition Margaret Dickinson Exhibition Borderlands NCC Branding National Heritage Newcastle University Scarborough Museums 49,351 720 122,2921 27.059 720 2,450 {451) 1.999 8,993 1,290 7,260 16,253 1.290 11.713 5,000 (9.616) 2.097 5,000 8,950 3,000 500 8.950 3,000 500 Total restrlcted funds 79,517 19,710 (32,359) 66,868 Total funds 277,905 1,168,152 (1.189.533) 256,524 The Thlrd Age ProJe¢t: This represents funding for the provision of free theatre tickets and transport for the elderly only. Awards For All: Projection Equipment.. This represents funding for the purchase of a projector only. Community FoundationlBusiness Enterprise.. This represents funding for improvements lo the charitable company's web site and also the Lowry in Berwick Volunteer Guide programme. Arts Council Visual Arts Study: This represents funding for the visual arts stLtdy only. Bepwick Visual Arts: This represents funding to develop and promote visual arts within Ihe region. Borderlands: This represents funding for the provision of fea5ibilily and planning work in relation to a new venue. NCC Branding This represents funding for developing new branding and visual identity for The Maltings (Bemick) Trusl. National Heritsge.. This represents funding for the Lowry in BeICk Volunteer Guide programme. -38-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 27 Movement in funds (contlnued) Newcastle University.. This represents funding for the Artist residency programme. Scarborough Museums.. This represents funding for the Artist residency programme. Prior financlal year Movèment In funds Incomlng Resources re8ourcos expended Balance at 1 April 2022 Transfers Balance at 31 March 2023 Unrestrlcted funds General funds 235,905 1,067,776 {1,105,293} 198,388 Restricted funds Artistic development Visual Arts Study Awards For All - Projection Equipment Community FoundationlBusiness Enterprise Third Age Project Heather Sutherland Exhibition Margaret Dickinson Exhibition Borderlands NCC Branding 71,642 720 (22,291) 49,351 720 6,051 (3,601) 2,450 373 1,290 8,620 8,993 1,290 24,778 6,020 62,964 124,7781 {6,020) 164,6471 13,396 5.000 11,713 5,000 Total restrlcted funds 98,472 102,382 1121,337) 79,517 Total funds 334,377 1,170,158 (1,226,630) 277,905 28 Analysis of net assets between funds Current financial year Unrestrlcted Restrlcted Total Group Fund balances al 31 March 2024 are represented by.. Tangible assels Heritage assets Goodwill Current assetsl(liabilitiesl Long term liabilities 41,859 55,300 29,058 70,917 55,300 94,881 (2,384) 37,810 132,691 (2,384) 189,656 66,868 256,524 -39-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 28 Analysis of net assets between funds (continued) Unrestricted Restrlcted Total Charity Fund balances at 31 March 2024 are represented by- Tangible assels Heritage assets Investments Current asselsl{liabilities) 32.324 55,300 100 96.646 29,058 61,382 55,300 100 134,456 37,810 184.370 66,868 251,238 Prlor flnanclal year Unre8trlcted Restrlcted Total Group Fund balances at 31 March 2023 are represented by.. Tangible assets Heritage assets Goodwill Current assetsl{liabilities) Long term liabilities 55,585 55,300 2,580 87,087 (2,164) 51,801 107,386 55.300 2,580 114,803 (2,164) 27,716 198,388 79,517 277,905 Charlty Fund balances at 31 March 2023 are represented by.. Tangible assets Heritage assets Investments Current asselsllliabilities) 43,870 55,300 100 97,243 51,801 95,671 55,300 100 124,959 27,718 196.513 79,517 278,030 29 Related party transactions During the year the charity entered into the following transactions wilh Telaled parties.. In the prior year, the charity engaged the services of Outland Archilecls Ltd of which Susan Hallsworth (Former Truslee) 15 a director. The fee was for revised planning io support the capital bid for the Gymnasium building. The Iransaction was carried out al arms length. 40-
THE MALTINGS (BERWICK) TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 30 Cash generated from operatlons 2024 2023 Deficit for the year (21.381) (56.472) Adjustments for.. Investment income recognised in slalemenl of financial aclivilies Deprecialion and impairment of tangible fixed assets Amortisalion of Goodwill (1,208) 37.533 2,580 (8941 44,277 2,580 Movements in working capital.. Ilncreaselldecrease in slocks Decrease in debtors Increase in creditors Increase in provisions IDecrease)lincrease in deferred income 11,051) {65,029) 60.864 220 (18.6501 (8801 (83,520} 3,618 2,164 (49,654) Cash generated from operations (6,122) (138,7811 41-