DROITWICH THEATRE AND ARTS CLUB LIMITED (A Company Limited by Guarantee)
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
BOYDS ACCOUNTANTS LTD
Registered Charity no: 701631 Company no: 712542
Page 1
DROITWICH THEATRE AND ARTS CLUB LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Registered Office
: Droitwich Theatre and Arts Club Ltd Friar Street Droitwich WR9 8ED
Bankers
: HSBC Bank PLC 11 Victoria Square Droitwich WR9 8DH
Accountants
:
Boyds Britannia Court 5 Moor Street Worcester WR1 3DB
Council of Management All of whom are Directors
: Mrs P A Lane (Chairman) Mrs M A Brown Mrs C T Hartle B A Hooper G Sinclair B P Thompson J A Birchley Miss G F Duggan Mrs S K Luff Dr P Steele Miss E Waters
Page 2
DROITWICH THEATRE AND ARTS CLUB LIMITED REPORT OF THE COUNCIL OF MANAGEMENT For the year ended 31 March 2023
The members of the Council of Management, who form the Board of Directors for the purposes of Company law and trustees for the purposes of Charity law, present their report and the financial statements for the year ended 31st March 2023.
CONSTITUTION AND ORGANISATION
The company, which is limited by guarantee, is governed by its Memorandum and Articles of Association, and is a registered charity. The charity registration number is 701631. The charity’s operations are controlled by a “Council of Management” which reports to the members at the Annual General Meeting and holds a monthly meeting in order to run the affairs and to review the implementation of policies. Various sub-committees are established to deal with detailed operational aspects of the day to day running of the theatre.
OBJECTS
The charity was formed in order to advance the education and improvement of public taste through the medium of arts, in particular the arts of drama, dancing, singing and music.
REVIEW OF ACTIVITIES AND FURTHER DEVELOPMENTS
The principal means by which the company carries out its charitable objectives continues to be the running of a theatre and arts club. This is carried out by the staging of shows at the Norbury Little Theatre in Droitwich. Income is generated from the sale of tickets and refreshments at the productions along with subscriptions from members and the occasional donation.
The theatre is rented from Friar Street Arts Limited.
The Statement of Financial Activities for the year is set out on page 4.
COUNCIL OF MANAGEMENT
Members of the Council of Management who served during the year and up to the date of this report were as follows:
Mrs P A Lane A J Spearing-Brown Mrs M A Brown J A Birchley B Hooper B P Thompson Miss G F Duggan Mrs S K Luff G Sinclair Mrs C T Hartle Dr P Steele N Wilde (resigned) Miss E Waters
The Directors retiring by rotation in accordance with the Articles of Association are G Sinclair, Mrs S K Luff, J A Birchley and Miss G F Duggan, and who offer themselves for re-election at the forthcoming Annual General Meeting.
RESPONSIBILITIES OF THE COUNCIL OF MANAGEMENT
Company Law requires the Council of Management to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company as at the balance sheet date and of its incoming resources and application of those resources, including income and expenditure for that period. In preparing those financial statements the directors are required to:
select suitable accounting policies and then apply them consistently
make judgements and estimates that are reasonable and prudent
prepare the financial statements on the going concern basis unless it is inappropriate to presume the company will continue in business.
Page 2a
DROITWICH THEATRE AND ARTS CLUB LIMITED REPORT OF THE COUNCIL OF MANAGEMENT For the year ended 31 March 2023
The Council of Management is also responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the company and to enable it to ensure that the financial statements comply with the Companies Act 2006.
It is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
REPORTING ACCOUNTANTS
A resolution proposing the re-appointment of Boyds as reporting accountants will be put to the Annual General Meeting.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and was approved by the Board and signed on its behalf.
................................................. Mrs A Lane Chairman 14[th] July 2023
Page 3
ACCOUNTANTS’ REPORT TO THE COUNCIL OF MANAGEMENT ON THE UNAUDITED FINANCIAL STATEMENTS OF DROITWICH THEATRE AND ARTS CLUB LIMITED
In order to assist you to fulfill your duties under the Companies Act 2006, we have compiled the financial statements of the company which comprise the Statement of Financial Activities, the Balance Sheet and the related notes from the accounting records and information and explanations you have given to us.
This report is made to the Council of Management, as a body, in accordance with the terms of our engagement. Our work has been undertaken so that we might compile the financial statements that we have been engaged to compile, report to the Council of Management that we have done so, and state those matters that we have agreed to state to them in this 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 Company and the Council of Management, as a body, for our work, or for this report .
We have carried out this engagement in accordance with technical guidance issued by the Institute of Chartered Accountants in England and Wales and have complied with the ethical guidance laid down by the Institute relating to members undertaking the compilation of financial statements.
As described on page 2 you have acknowledged your duty to ensure that the company has kept proper accounting records and to prepare financial statements that give a true and fair view under the Companies Act 2006. You consider that the company is exempt from the statutory requirement for an audit for the year.
We have not been instructed to carry out an audit of the financial statements. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the financial statements.
Boyds 20 Sansome Walk Worcester
14[th] July 2023
Page 4
DROITWICH THEATRE AND ARTS CLUB LIMITED STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 March 2023
| Note INCOMING RESOURCES Activities in furtherance of the charity’s objects: - Production Proceeds Bar Sales Subscriptions Outside Company Production Proceeds Room and Equipment Hire Sale of Sweets, Ices and Coffee Income from Raffles and Donations Interest receivable Theatre Tax Relief Lottery Grants Loss Interruption Insurance Claims Government Grants TOTAL INCOMING RESOURCES RESOURCES EXPENDED Direct Charitable Expenditure 2 Management and Administration of the Charity 3 TOTAL RESOURCES EXPENDED NET INCOMING RESOURCES 4 Allocation General fund Restricted fund Funds brought forward at 1 April 2022 Funds carried forward as at 31 March 2023 |
2023 £ 71,569 8,915 3,430 40,689 3,610 7,755 672 126 10,977 - - - |
2022 £ 60,756 6,727 2,080 10,641 2,094 4,747 13,223 5 - 20,000 36,188 10,667 167,128 126,113 3,714 129,827 37,301 37,301 - 37,301 71,424 108,725 |
|
|---|---|---|---|
| 147,743 | |||
| 138,321 4,718 143,039 4,704 4,704 - 4,704 108,725 113,429 |
The notes on pages 6 to 9 form part of these financial statements.
Page 5
DROITWICH THEATRE & ARTS CLUB LIMITED BALANCE SHEET
As at 31 March 2023
| Note FIXED ASSETS Tangible Assets 5 CURRENT ASSETS Stocks 6 Debtors 7 Cash at Bank and In Hand CURRENT LIABILITIES Creditors - Amounts falling due within one year 8 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CAPITAL AND RESERVES General fund 11 Restricted fund 12 |
1,614 19,564 63,130 84,308 7,474 £ |
2023 £ 36,595 76,834 113,429 100,801 12,628 113,429 |
1,295 7,220 61,711 70,226 16,394 £ |
2022 £ 54,893 53,832 108,725 96,097 12,628 108,725 |
|---|---|---|---|---|
For the year ended 31 March 2023 the company was entitled to exemption under section 477(2) of the Companies Act 2006 relating to small companies.
No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibility for:
-
Ensuring the company keeps accounting records which comply with section 386; and
-
Preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year, and of its profit and loss for the financial year, in accordance with section 393, and which otherwise comply with the requirements of the Companies Act relating to accounts, so far as applicable to the company.
The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 applicable to small companies and were approved by the Board and signed on its behalf.
................................................. Mrs A Lane
14[th] July 2023
The notes on pages 6 to 9 form part of these financial statements.
Page 6
DROITWICH THEATRE AND ARTS CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023
1. ACCOUNTING POLICIES
-
(a) Basis of Preparation of Financial Statements
-
The financial statements have been prepared under the historical cost convention in accordance with the Statement of Recommended Practice (SORP) ”Accounting and Reporting by Charities” published in 2005 and in accordance with the Financial Reporting Standards for Smaller Entities (effective April 2008)
(b) Company Status
- The charity is a company limited by guarantee. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
(c) Incoming resources
-
All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income, and represents the proceeds of tickets and sales at various productions, members’ subscriptions and the proceeds of raffles and donations.
-
(d) Fund accounting
-
General funds are unrestricted funds which are available for the use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are funds to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income and gains are allocated to the appropriate fund.
-
(e) Tangible fixed assets and depreciation
-
Purchases of theatre equipment and improvements of a significant nature are capitalised and are stated at cost less depreciation. Depreciation of fixed assets is provided at rates estimated to write off the cost, less estimated residual value of each asset over its expected useful life as follows:
Audio Lighting and Switchboard Equipment 20% reducing balance Fixtures, Fittings and Other Equipment 25% straight line
-
(f) Stocks
-
Stocks are stated at the lower of cost and net realisable value.
-
(g) Headings The headings in the Statement of Financial Activities and in the Balance Sheet do not precisely follow those set out in the Companies Act l985. The Council of Management consider that the nature of the business is such that the headings adopted are both more informative and more accurately reflect the specific nature of the company's activities.
-
(h) Taxation As a charity, the company will usually be exempt from Corporation Tax and is able to reclaim tax deducted from its investment income. There may be a restriction on the amount of taxation that can be claimed where the company has any non-charitable expenditure. Provision is made for the amount of tax refund due.
Page 7
DROITWICH THEATRE AND ARTS CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023
1. ACCOUNTING POLICIES (Continued)
- (i) Leasing and hire purchase contracts
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the leaser are charged to profit and loss account as incurred.
2. DIRECT CHARITABLE EXPENDITURE Cost of Bar Sales Production Costs Outside Company Production Costs Cost of Sweets, Ices and Coffee Room hire for rehearsals Rent, Rates and Insurance Heat, Light and Water Printing, Stationery and Advertising Telephone and Postage Stage Equipment and Theatre Furnishing and Fittings Cleaning Expenses Repairs and Renewals Depreciation 3. MANAGEMENT AND ADMINISTRATION OF THE CHARITY Bank Charges Accountants’ Fee Professional Fees Incidental Expenses 4. NET INCOMING RESOURCES FOR THE YEAR This is stated after charging the following: Operating Lease Rentals – Property Depreciation Accountants' Remuneration |
2023 £ 4,180 44,387 26,567 4,818 587 8,259 10,826 6,887 1,269 1,268 4,301 6,674 18,298 138,321 2023 £ 203 1,200 1,560 1,755 4,718 2023 £ 7,764 18,298 1,200 |
2022 £ 1,781 46,757 7,810 3,362 - 11,059 10,979 6,870 972 1,928 3,176 12,843 18,576 126,113 2022 £ 277 1,200 - 2,237 3,714 2022 £ 7,764 18,576 1,200 |
|---|---|---|
The Directors receive no remuneration. No staff employed by the company.
Page 8
DROITWICH THEATRE AND ARTS CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023
5. TANGIBLE FIXED ASSETS
| COST At 1 April 2022 Additions At 31 March 2023 DEPRECIATION At 1 April 2022 Charge for the Year At 31 March 2023 NET BOOK VALUE At 31 March 2023 At 31 March 2022 6. STOCKS Bar and Other Stocks 7. DEBTORS Due within one year as follows: Other Debtors Tax 8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade Creditors and Accruals Deferred income from donations |
Fittings and Other Equipment £ 113,337 - 113,337 58,444 18,298 76,742 36,595 54,893 2023 £ 1,614 1,614 2023 £ 8,587 10,977 19,564 2023 £ 6,966 508 7,474 |
Fittings and Other Equipment £ 113,337 - 113,337 58,444 18,298 76,742 36,595 54,893 2023 £ 1,614 1,614 2023 £ 8,587 10,977 19,564 2023 £ 6,966 508 7,474 |
2022 £ 1,295 1,295 2022 £ 7,220 - 7,220 2022 £ 15,886 508 16,394 |
|---|---|---|---|
9. OPERATING LEASE COMMITMENTS
The company has a commitment under an operating lease relating to rent of the theatre which expires in over twenty years at an annual rental of £7,764 (2022 - £7,764).
10. CAPITAL AND RESERVES
Every member of the Club undertakes to contribute to the assets of the Club in the event of its being wound up while he is a member, or within one year afterwards, for payment of the debts and liabilities of the Club contracted before he ceases to be a member, and the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves, such amount as may be required not exceeding £1.
Page 9
DROITWICH THEATRE AND ARTS CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023
| 11. GENERAL FUND Net profit for the year General fund at 1 April 2022 General fund at 31 March 2023 12. RESTRICTED FUND Restricted fund brought forward Restricted fund carried forward |
2023 £ 4,704 96,097 100,801 2023 £ 12,628 12,628 |
2022 £ 37,301 58,796 96,097 2022 £ 12,628 12,628 |
|---|---|---|
Page 10
DROITWICH THEATRE AND ARTS CLUB LIMITED DETAILED INCOME AND EXPENDITURE ACCOUNT For the year ended 31 March 2023
| 2023 Income Costs Own Productions 71,569 44,387 Outside Productions 40,689 26,567 Bar 8,915 4,180 Sweets, Ices and Coffee 7,755 4,818 Subscriptions 3,430 - Room Hire and Equipment 3,610 587 Donations and Raffles 672 - Interest 126 - Loss Interruption Insurance claim - - Lottery Grant - - Theatre Tax Relief 10,977 - Government Grants - - 147,743 80,539 Theatre Running Costs Rent, Rates and Insurances 8,259 Heat, Light and Water 10,826 Printing, Stationery and Advertising 6,887 Telephone and Postage 1,269 Stage Equipment and Theatre Furnishings and Fittings 1,268 Bank Charges 203 Professional Fees 1,560 Accountancy Charges 1,200 Incidental Expenses 1,755 Cleaning Expenses 4,301 Repairs and Renewals 6,674 Depreciation of Fixed Assets 18,298 65,831 PROFIT FOR THE YEAR |
2023 Income Costs 71,569 44,387 40,689 26,567 8,915 4,180 7,755 4,818 3,430 - 3,610 587 672 - 126 - - - - - 10,977 - - - |
Profit/ (Loss) 27,182 14,122 4,735 2,937 3,430 3,023 672 126 - - 10,977 - 67,204 62,500 4,704 |
2022 Income Costs 60,756 46,757 10,641 7,810 6,727 1,781 4,747 3,362 2,080 - 2,094 - 13,223 - 5 - 36,188 - 20,000 - - - 10,667 - |
Profit/ (Loss) 13,999 2,831 4,946 1,385 2,080 2,094 13,223 5 36,188 20,000 - 10,667 |
|---|---|---|---|---|
| 167,128 59,710 11,059 10,979 6,870 972 1,928 277 0 1,200 2,237 3,176 12,843 18,576 |
107,418 | |||
| 65,831 | 70,117 | 70,117 | ||
| 37,301 |