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2021-12-31-accounts

Registered number: 02319269 Charity number: 801617

BATH FESTIVALS

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

BATH FESTIVALS

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Company, its Trustees and Advisers 1
Trustees' Report 2 - 10
Independent Auditor's Report on the Financial Statements 11 - 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 - 33

BATH FESTIVALS

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees S Ariaratnam
J Cullum DL, Chair
P Medlock
C Rogers
D Rogers
A Singleton
V Smith
R Turner
G Andrews (Resigned 16 February 2021)
S Taylor (Resigned 1 November 2021)
J Cusack (appointed 29 June 2022)
Company registered
number
02319269
Charity registered
number
801617
Registered office
1a Forum Buildings
St James Parade
Bath
BA1 1UG
Chief executive officer
I Stockley
Independent auditor
Crowe U.K. LLP
Fourth Floor
St James House
St James Square
Cheltenham
GL50 3PR
Bankers
National Westminster Bank Plc
24-25 Stall Street
Bath
BA1 1TG

Page 1

BATH FESTIVALS

(A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The directors, who are also trustees of the company for the purposes of charity law, present their annual report and the audited financial statements for the period ended 31 December 2021.

STATUS AND ADMINISTRATION

The company is a registered charity, number 801617, and is limited by guarantee, company registration 02319269. Details of the company’s registered office and advisers are given on page 1. The governing body of the company is the board of directors and the governing documents are the Memorandum and Articles of Association dated 22 August 1988 and last updated on 21 July 2006.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Bath Festivals is a company limited by guarantee and a registered charity. It is governed under its Memorandum and Articles of Association by a board of directors.

Directors meet at least five times a year. The board oversees, approves and monitors major issues of staffing and recruitment, organisational change, relationships and arrangements with major public funders, setting business plans and annual budgets and regular financial reporting. The day to day management of the company is delegated by the Directors to the Chief Executive. Remuneration of the Chief Executive is set by the board with reference to the role and the market.

The major risks facing the company are those of shortfalls in income generation for the festivals and education projects through ticket sales and funds raised from the private and trust sector, together with reductions in public funding. These issues, along with other risks, are quantified and assessed by the board through projections and risk assessments. Approval for any actions necessary to avert risk is determined by the board in liaison with the Chief Executive.

The directors of the company are as stated on page 1. All persons whilst serving as directors of the company are also members of the company.

Bath Festivals have a nominations and remuneration committee who assess the mix of skills, form the interview panel and recruit accordingly. Recruitment is managed through advertising, referencing and regular approaches made by interested candidates.

Directors are appointed by the existing members at director meetings as required by the company’s Articles of Association.

A process of induction for new board members is in place. The policy on induction and regular information for board members ensures that the directors receive the relevant training to ensure that they can fulfil their duties.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

The charity’s objects (“Objects”) as set out in the Memorandum of Association are to promote and assist in the advancement of education in the arts and crafts including the arts of music, drama, dancing, mime, painting, sculpture and the graphic arts and literature and poetry, and to extend and increase the public appreciation, knowledge and understanding of the arts and crafts in all their forms.

Page 2

BATH FESTIVALS

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Mission

To curate and produce community festivals across the glorious venues and open spaces of our world heritage city, that connect diverse communities through the power of the arts, promoting the impact that music, words, books and performance can have on people’s lives. At the heart of the festivals is excellence, accessibility, inclusivity and community. Our creative learning and outreach programme inspires and empowers children and young people through the arts, by providing creative opportunities and life enhancing experiences.

Aims and Intended Impact

Bath Festivals’ aims to:

To achieve its aims, Bath Festivals will:

Objectives for the Period

Bath Festivals agreed the following set of priorities for the 12 month period 1 January 2021 – 31 December 2021, which continued to be interrupted due to the ongoing uncertainty of the Covid19 pandemic following the National lock down in March 2020. These were affected as necessary dependent on the Covid19 government guidelines

Page 3

BATH FESTIVALS

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Objectives for the Period (Continued)

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

The Bath Festival – May 2021

There was a smaller socially distanced May 2021 Festival due to the ongoing restrictions caused by the pandemic; 60 rather than the normal 130+ events went on sale for the period 17 – 24 May 2021, including events originally scheduled for May 2020. Uncertainty led to tickets going on sale late and there was no printed brochure. The opening concert in Bath Abbey, featured the launch of Bath Festival Orchestra, which was recorded for broadcast later in the week on BBC Radio 3. The orchestra is a platform for young professional orchestral players, who have recently completed their training at leading music colleges and conservertoires, presenting orchestral classical music in new innovative and accessible ways, attracting new audiences whilst inspiring and engaging existing classical audiences. Beethoven’s complete String Quartets originally programmed in 2020 for the 250th anniversary of his death were rescheduled in the May 2021 Festival. Themed walks were introduced into the programme and a reduced level of literature events took place. Additionally, to increase accessibility, we recorded and streamed Festival events with a specially curated programmed titled Bath Festival at Home, explaining the history of the unique venues in which the events are held as we celebrated music and books in our beautiful city. The weekend on the Recreation Community Ground, originally scheduled for 23 – 24 May 2020 was moved to the 7 – 8 August 2021.

Page 4

BATH FESTIVALS

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The Bath Festival – May 2021 (Continued)

We staged additional May 2020 non socially distanced events through the final quarter of 2021, outside of the normal Festival period. These included Patti Smith and John Grant in the Forum and Charles Hazlewood with the Para Orchestra in Bath Abbey.

We re-opened our growing base of corporate sponsors, whilst retaining and growing relationships with new financial supporters from 2019. These included Novia, Agriframes, Bath Ales, and Wessex Water with the value of sponsorship, supporting the 7 – 8 August event on the Recreation Ground, growing on initial funding amounts in the first two years of this strategic festival development. New 2020 sponsors of the May 2020 Festival carried over to May 2021 including Bath Recreation, GWR, as our official Travel Partner, Scala Radio (Broadcast Partner), and Hallmark Care Homes.

Bath Children’s Literature Festival – October 2021

Although not socially distanced, like the May Festival, we reduced the number of events by circa 40% on a normal year. Events were spread across the last weekend in September and first weekend in October.

Reading is Magic Festival – October 2021

Following the success of the inaugural Reading is Magic Festival in 2020 and very positive feedback from the schools we curated the digital events again in 2021; five days of free, inclusive and engaging digital events for schools and families. In association with Cressida Cowell, we again set a daily theme drawing on specific points from her Waterstones Children’s Laureate Charter. The Festival promoted creativity and connection through stories and shared experiences, creating content for children and young people in primary and secondary schools. As in 2020, we created a partnership of national and international festival organisations. In the daily events Cressida Cowell was joined by an all star line up of leading authors and illustrators that were viewed either at point of broadcast or as on demand afterwards. Online materials and resources supported each event with book buying opportunities promoted via local independent bookshops.

Creative Learning

This all year programme expands the reach of the Bath Children’s Literature Festival, engaging a wide range of children in our projects, ensuring engagement from schools in areas where children wouldn’t ordinarily have the opportunity to attend the festival. We deliver a programme of music and literature projects that inspire and empower children and young people through the arts. The programmes:

We strive to ensure that the children and young people’s ideas, views and creative vision is at the heart of the projects we undertake, actively involving them in the creative process. The programme was significantly restricted in 2021 due to the pandemic.

Page 5

BATH FESTIVALS

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Schools’ Commission

Due to the pandemic there was no Schools’ Commission in 2021, as part of the May Festival

Young Producers

This is a three year project supported by the Andrew Lloyd Webber and Coles Medlock Trusts, originally scheduled for 2019-2021. Following a very successful project for Y9 students on pupil premium in academic year 2018/19, year 2 was begun at the start of 2019/20 but not possible to complete due to the pandemic. Trustees of the two trust funds agreed to defer funds into the 2022 May Schools Commission and October 2021 Reading is Magic Festival. The project enables young people to curate and create their own event, as part of the Bath Festival. We partnered with Mentoring Plus.

Routes Through Music

This is a partnership with Bath Music Hub delivering music with young people in Youth Hubs across B&NES. It focuses on children and young people making music in non-formal settings, learning through informal activities and with those who are not able to access musical learning opportunities. It is a three year project funded by Youth Music. Again, the progress has been affected by the pandemic.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

Total income for the period was £1,094,131 (2020: £588,783). The organisation generated a surplus of £77,549 on unrestricted funds, and a surplus of £63,845 on total funds (2020: surplus of £29,429 on unrestricted funds and surplus of £64,132 on total funds) which brings total reserves to a deficit of (£306,576) (2020: (£370,421)).

Income and Expenditure

The charity's main sources of income are grant funding from Arts Council England (2021: £150,000 via the ERF and CRF Grants for the Arts programme, 2020: £125,000), and ticket income from festival events, corporate sponsorship, trust income and private donations. Bath Festivals is grateful to its funders, customers, and supporters at all levels for their continuing support.

The organisation spends most of its funds on direct festival activities and staffing and aims to minimise support costs.

Bath Festivals plans on an ongoing basis for all types of funding change and carries out activity programmes matched to available resources, whilst aiming to retain at least the minimum level of reserves.

Total income in 2021 has increased when compared with prior year as a result of the impact of the Covid Pandemic on the organisation’s ability to host events in 2020

Net Liabilities

The charity had net liabilities of (£306,576) as at 31 December 2021 (2020: (£370,421)).

Cash Flow

Cash outflows from operating activities totalled £103,306 in 2021 (2020: Inflow of £114,186). The year end cash balance reduced from £141,236 to £55,908 accordingly.

Page 6

BATH FESTIVALS

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Reserves Policy

The directors have identified, via risk based analysis, the need to maintain an unrestricted reserve of between £50,000 and £150,000 as a contingency against unexpected variances from budget on activities. Whilst public funding can be planned further in advance, experience has shown that income can vary more from projections for both ticket sales and fundraising income. The directors believe that reserves should be within this range to ensure the organisation can continue to deliver its festivals and education programme, and meet the requirements of its core funders. The reserves policy is reviewed by the board periodically with respect to current risks, and adjusted accordingly.

In 2021, unrestricted reserves at year end improved to (£351,884) (2020: (£429,433)). The restricted reserves balance was £45,308 (2020: £59,012).

In recognition of the fact that unrestricted reserves are negative and outside of the acceptable range identified by the Board, the Board has taken a number of steps to ensure the organisation can continue to operate, and to build unrestricted reserves back to within the acceptable range.

A new operational process was introduced for the planning of 2020 May Festival which enabled greater control of both the programme and the costs with heightened awareness around the balance between the artistic and commercial rationale for programming of both literature and music events better reflected. Festival programmers had all been in place for the full planning period, which had not been the case in 2019. We worked with a new funding approach, developing year round relationships with strategic partners rather than just around specific festivals. Engagement and stability of funding has been clearly evident. Bath Recreation and Bath BID increased funding 56% (2022: £50,000) and 100% (2022: £20,000) respectively, on previous years. The early sales period of the May 2020 festival, prior to lockdown, was showing ticket sales dramatically up against comparative sales period of the first 3 years for both books and music. With the learnings and developments of the first three years of the transformation plan, this early high level of sales provided the additional credence to the high level of confidence held by Board of Trustees in the plans for 2020 – 2022. The pandemic has knocked the timings back to 2022 – 2024 but the confidence of the board remains high as the Festivals’ positioning statement continues to lead to a broadening range of corporate support and continued backing of Arts Council England (ACE). ACE have supported heavily through 2020 and 2021 with the Emergency Support and Cultural Recovery Fund. The delivery of a financially stable community arts festival for the city will now not be in place until 2024 but absolutely remains achievable. We are showing a small positive contribution in 2020, despite the pandemic, due to cost savings, government job retention schemes, public support and emergency funding sources. This is repeated in 2021 and expected to increase further in 2022 and 2023. As we evidence a return to showing small and increasing annual profits over 2021 - 2023, we also anticipate a proportion of the existing £240,000 loan, which continues to keep the organisation cash positive, being turned into donations to improve further the current negative reserves position.

Investment Policy

The Memorandum and Articles of Association of the company permit wide powers of investment without any restrictions. All cash reserves are swept nightly to a higher interest account.

Charity Governance Code

Bath Festivals are currently considering the new Charity Governance code. Reporting back to the Board of Trustees has been deferred to the next Board of Trustees meeting given the key focus of the Board on fundraising priorities.

Page 7

BATH FESTIVALS

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Going Concern

Negative reserves have improved on 2020 and cash flow continued to remain positive due to support from the Culture Recovery Fund administered by Arts Council England (ACE). We continue to develop and engage wider audiences returning to a full programme of events in May 2022. We will build ticket revenue sales in 2023, as audience return to live events at levels seen pre-pandemic. Philanthropic and Corporate funds continue to grow as a percentage of total revenues. The 2023 budget shows a further positive contribution to reserves.

The trustees are confident in the continuing support of ACE. Application is ongoing for a Project Grants Award for the 2023 calendar of events at the same value as successful applications submitted historically for all years 2017-19 and 2022 Across 2020-21 ACE were fully supportive of the Festivals through the Cultural Recovery Fund. We have established longer term funding partnerships and higher financial amounts for 2023 with key partners. Bath Recreation is providing a further 3 year funding support commitment 2023 - 25, Wessex Water have confirmed support for the core Festival programme, in addition to the Weekend on the Rec in 2013; our 75th Anniversary Year. New partners at advanced stages of discussion include Bath University and Mayden. In 2022 B&NES waived rental fees on council owned venues and parks, which they have confirmed will continue in 2023, significantly reducing the cost base of both May and October Festival activities. We continue to build venue partnerships with agreements where the venue takes a kick back on sales, as opposed to a rental fee, as we look to mitigate the risk of upfront fixed venue costs for Bath Festivals. Long term key funder support for the organisation’s core salary and overhead costs, continues with Bath Spa University, Bath BID, Coles Medlock Trust and Roper Charitable Trust. A new commercial partner for the ‘Weekend on the Rec’ reduces all risk of this event, whilst securing a fee passed back on all ticket sales as well as corporate sponsorship exclusively funding Festival salary and overhead costs, rather than artist fees and production costs.

On the basis of the above information, these accounts have been prepared on a going concern basis. However, given some current uncertainties, the Trustees acknowledge there is a material uncertainty as to whether Bath Festivals will be able to continue to operate as a going concern for the foreseeable future.

VOLUNTEERS

Bath Festivals works with approximately 2,000 volunteers each year, the majority of whom are performers at Party in the City, with the remainder acting as stewards at festival events. Since the organisational restructure, we contract a freelance Volunteer Co ordinator to manage the volunteer programme and provide full training before and support throughout each festival for all members of the volunteer team, many of whom have worked with us for many years. Bath Festivals is very grateful to all who act as volunteers and would not be able to run its festivals without them.

FUNDRAISING ACTIVITY

Board Trustees, CEO and Head of Development carry out the charity’s fundraising activities. Bath Festivals is aware of the requirement to agree appropriate standards of performance as well as the implementation of appropriate monitoring approaches to protect donors, supporters and indeed the organisation from poor practices. Bath Festivals supports the Fundraising Regulator by paying the relevant levy, and observes the standards laid out in their Code of Fundraising Practice.

We run a bucket collection each year at Party in the City – the buckets are held by employees and volunteers and the collection complies with local licensing requirements and Bath Festivals’ internal financial controls. In 2021 we introduced Tap to Donate.

We have not received any complaints about fundraising for the charity, and we do not make cold calls or send fundraising requests to those we have no connection with. We take our responsibility towards supporters in vulnerable circumstances with the utmost importance and would not approach anyone we considered to fall into this category.

Page 8

(A Company Limited by Guarantee)

BATH FESTIVALS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

FUTURE PLANS

The main drivers for future activities are as follows:

RISK MANAGEMENT

The organisation maintains a risk register which is reviewed regularly by the staff and annually by the Board. Identified risks are assessed for impact and likelihood, mitigating strategy is documented and an overall risk magnitude attributed. The most significant current risks are reductions in public funding and shortfalls in ticket sales and fundraised income. The mitigating strategies for these risks include building relationships with key funding partners, developing a new fundraising strategy for the new festival model involving higher bids to fewer organisations, and continuing to develop alternative sources of funding. Ticket sales shortfalls are mitigated by programming based on audience preferences, and an underwriting fund has been established to support potential losses on certain events.

AUDITOR

The board has decided to recommend Crowe U.K. LLP for re appointment as auditor and Crowe U.K. LLP has expressed their willingness to continue as auditor for the next financial year.

Page 9

(A Company Limited by Guarantee)

BATH FESTIVALS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

DIRECTORS’ REPORT

The report of the directors has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 relating to small entities.

PUBLIC BENEFIT

The directors confirm that they have complied with their duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission for England and Wales, and the Board is satisfied that our public benefit requirements have been met. Our Creative Learning work is extensive. Beyond this we continue to support young artists and performers as well as bringing artistic excellence and innovation to all festivals. We are mindful of ticket pricing and a range of ticket prices are on offer to ensure that people are not excluded from the cultural experience of a festival on cost grounds.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The directors (who are also trustees of Bath Festivals for the purposes of charity law) are responsible for preparing the Directors’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the directors to prepare financial statements for each financial year. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as each of the directors of the company at the date of approval of this report is aware there is no relevant audit information of which the company’s auditor is unaware. Each director has taken all steps that he/she ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the company’s auditor is aware of that information.

Approved by the board of directors on and signed on behalf of the board of directors. 23/11/2022

John Cullum

John Cullum DL Chair

Page 10

(A Company Limited by Guarantee)

BATH FESTIVALS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BATH FESTIVALS

Opinion

We have audited the financial statements of Bath Festivals (the 'charitable company') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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 the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

We draw attention to the disclosures made in note 2 to the financial statements concerning the charitable company's ability to continue as a going concern. The charitable company is forecasting surpluses for the 2022 and 2023 financial years and the 2022 and 2023 budgets show this being maintained with positive cashflows. The charitable company’s continued operations depends on whether the festival is able to be held as planned in 2023, the success of the three year plan 2022-24 and continued Arts Council for England funding. These conditions, along with other matters explained in note 2 to the financial statements indicate the existence of a material uncertainty which may cast significant doubt on the charitable company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other information

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

Page 11

(A Company Limited by Guarantee)

BATH FESTIVALS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BATH FESTIVALS (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

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

Responsibilities of trustees

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

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

Auditor's responsibilities for the audit of the financial statements

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

Page 12

(A Company Limited by Guarantee)

BATH FESTIVALS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BATH FESTIVALS (CONTINUED)

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

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, employment legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the within the timing of recognition of income and override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, designing audit procedures over income, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.

Use of our report

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

Guy Biggin (Senior Statutory Auditor)

for and on behalf of Crowe U.K. LLP Statutory Auditor Fourth Floor St James House St James Square Cheltenham GL50 3PR

Date:

Page 13

BATH FESTIVALS

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income from:
Donations and grants
4
Charitable activities
5
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
7
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
256,848
822,551
11
1,079,410
39,122
962,739
1,001,861
77,549
(429,433)
77,549
(351,884)		 Restricted
funds
2021
£
-
14,721
-
14,721
-
28,425
28,425
(13,704)
59,012
(13,704)
45,308		 Total
funds
2021
£
256,848
837,272
11
1,094,131
39,122
991,164
1,030,286
63,845
(370,421)
63,845
(306,576)		 Total
funds
2020
£
347,424
241,286
73
588,783
47,264
477,387
524,651
64,132
(434,553)
64,132
(370,421)

The notes on pages 17 to 33 form part of these financial statements.

Page 14

BATH FESTIVALS (A Company Limited by Guarantee) REGISTERED NUMBER: 02319269

BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Fixed assets
Intangible assets
12
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
17
Total net liabilities
Charity funds
Restricted funds
18
Unrestricted funds
18
Total funds		 72,423
55,908
128,331
(440,072)		 2021
£
2,238
2,925
2
5,165
(311,741)
(306,576)
-
(306,576)
45,308
(351,884)
(306,576)		 56,031
141,236
197,267
(315,705)		 2020
£
3,951
2,843
2
6,796
(118,438)
(111,642)
(258,779)
(370,421)
59,012
(429,433)
(370,421)

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

The financial statements were approved and authorised for issue by the Trustees on and signed on their behalf by:

John Cullum

John Cullum

Chair

The notes on pages 17 to 33 form part of these financial statements.

Page 15

BATH FESTIVALS

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Cash flows provided by/(used in) operating activities
Net cash provided by/(used in) operating activities
20
Cash flows from investing activities
Interest from investments
Purchase of intangible assets
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
21		 2021
£
(103,306)
11
-
(2,033)
(2,022)
20,000
20,000
(85,328)
141,236
55,908		 2020
£
114,186
73
(3,339)
(1,682)
(4,948)
10,000
10,000
119,238
21,998
141,236

The notes on pages 17 to 33 form part of these financial statements

Page 16

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Charity information

Bath Festivals is a registered charity (charity number: 801617) and is incorporated in England and Wales as a company limited by guarantee (company number: 02319269). The address of its registered office is 1a Forum Buildings, St James Parade, Bath, BA1 1UG9.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011. Bath Festivals meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared under the historical cost convention.

Bath Festivals owns the entire share capital of Bath Festivals Enterprises Limited (Company number: 02840853). The company has remained dormant throughout the financial year and therefore consolidated financial statements for Bath Festivals are not required.

2.2 Going concern

Negative reserves have improved on 2020 and cash flow continued to remain positive due to support from the Culture Recovery Fund administered by Arts Council England (ACE). We continue to develop and engage wider audiences returning to a full programme of events in May 2022. We will build ticket revenue sales in 2023, as audience return to live events at levels seen pre-pandemic. Philanthropic and Corporate funds continue to grow as a percentage of total revenues. The 2023 budget shows a further positive contribution to reserves.

The trustees are confident in the continuing support of ACE. Application is ongoing for a Project Grants Award for the 2023 calendar of events at the same value as successful applications submitted historically for all years 2017-19 and 2022 Across 2020-21 ACE were fully supportive of the Festivals through the Cultural Recovery Fund. We have established longer term funding partnerships and higher financial amounts for 2023 with key partners. Bath Recreation is providing a further 3 year funding support commitment 2023-25., Wessex Water have confirmed support for the core Festival programme, in addition to the Weekend on the Rec in 2013; our 75th Anniversary Year. New partners at advanced stages of discussion include Bath University and Mayden. In 2022 B&NES waived rental fees on council owned venues and parks, which they have confirmed will continue in 2023, significantly reducing the cost base of both May and October Festival activities. We continue to build venue partnerships with agreements where the venue takes a kick back on sales, as opposed to a rental fee, as we look to mitigate the risk of upfront fixed venue costs for Bath Festivals. Long term key funder support for the organisation’s core salary and overhead costs, continues with Bath Spa University, Bath BID, Coles Medlock Trust and Roper Charitable Trust. A new commercial partner for the ‘Weekend on the Rec’ reduces all risk of this event, whilst securing a fee passed back on all ticket sales as well as corporate sponsorship exclusively funding Festival salary and overhead costs, rather than artist fees and production costs.

Page 17

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Accounting policies (continued)

2.2 Going concern (continued)

On the basis of the above information, these accounts have been prepared on a going concern basis. However, given some current uncertainties, the Trustees acknowledge there is a material uncertainty as to whether Bath Festivals will be able to continue to operate as a going concern for the foreseeable future.

2.3 Income

Donations and other income

Donations and other income are included in the Statement of Financial Activities when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Where donations are received to fund activities scheduled for future financial years they are deferred until the relevant year.

Government grants

Grants receivable are credited to income as these become receivable, except in situations where they are related to performance, in which case these are accrued as the charitable company earns the right through performance.

Income from charitable activities

Charitable activity income is in the form of event ticket sales. This income is deferred up to the date of the event at which point it is recognised in the Statement of Financial Activities.

2.4 Expenditure

Allocation of expenditure incurred

Expenditure in the period is allocated as follows:

Direct charitable expenditure is considered to be expenditure which enables the charity to further its objects. Overhead expenditure is apportioned between direct charitable expenditure and other expenditure on the best estimate of management.

Costs of raising funds include those costs incurred in generating income from all sources other than from undertaking charitable activities, i.e. costs of generating voluntary income and costs of fundraising.

Donated services and gifts in kind

Donated services and gifts in kind are accounted for and included in the financial statements on the basis of the value of the gift to the charity, provided the value can be measured reliably.

Support costs

This represents the portion of management time and overheads which relate to administration costs, including the cost of compliance with laws and regulations, which in the opinion of the directors cannot be considered to further the objects of the charity directly.

Governance costs are included within support costs and are associated with the constitutional and statutory requirements of the charity.

Page 18

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Accounting policies (continued)

2.4 Expenditure (continued)

Expenditure on raising funds includes all expenditure incurred by the company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Intangible fixed assets and amortisation

Intangible fixed assets are capitalised and recognised when future economic benefits are probable and the cost of value of the asset can be measured reliably. Intangible assets are initially recognised at cost and are subsequently measured at cost net of amortisation and any provision for impairment.

Amortisation is provided on intangible fixed assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life, as follows:

Website development costs

2.6 Tangible fixed assets and depreciation

The charity capitalises assets that have a purchase cost in excess of £200. Depreciation is provided on the cost of fixed assets by the straight line method over the estimated useful life of the asset. The rates of depreciation are as follows:

2.7 Investments

The Investment in the subsidiary is held at cost.

2.8 Debtors

Short term debtors are initially measured at transaction price, less any impairment.

2.9 Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions.

Page 19

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Accounting policies (continued)

2.10 Creditors

Short term creditors are initially measured at the transaction price. Liabilities are recognised when the charity has an obligation to make payments to a third party. Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

2.11 Financial instruments

Bath Festivals only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.12 Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities on the straight line basis over the lease term.

2.13 Pensions

The charity makes contributions into the personal pension funds of employees and the pension charge represents the contributions payable by the charity to the funds in respect of the period.

2.14 Fund accounting

Unrestricted funds

As part of the fundraising initiative, donations, gifts and grants are received in connection with certain events on the festival programme. Without exception, these sources of income are fully expended on the named events and no unspent amounts are used for other purposes or carried forward in general funds. However, the directors believe the intention of the donors is to fund the relevant festival as a whole, and certain items on the programme are named purely to satisfy the documentation requirements of the organisations concerned. On this basis all income, assets and liabilities of the charity are shown as relating to unrestricted funds, with the exception of funds received in relation to specific projects as seen in note 18.

Restricted funds

These represent grants received for specific projects. Expenditure includes costs directly attributable to this activity, as well as a proportion of the support costs which can reasonably be allocated directly to those funds.

3. Critical accounting estimates and areas of judgement

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The items in the financial statements where estimates and judgements have been made include the following:

Page 20

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

3. Critical accounting estimates and areas of judgement (continued)

Useful economic lives of tangible and intangible assets

The annual depreciation charges for the tangible and intangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See notes 12 and 13 for the carrying amount of the assets and notes 2.5 and 2.6 for the useful lives for each class of asset.

Impairment of debtors

The Charity makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 16 for the net carrying amount of the debtors.

Deferred income

Income is recognised when there is evidence of entitlement, the amount can be measured and the receipt is probable. Where terms and conditions have not been met, or, uncertainty exists as to whether Bath Festivals can meet the terms and conditions otherwise within its control, the income is not recognised but deferred as a liability until it is probable that the terms and conditions imposed can be met.

4. Income from donations and grants

Unrestricted
funds
2021
£
Donations
143,893
Sponsorship
94,090
Government grants
18,865
Total donations
256,848
Total 2020
304,478		 Restricted
funds
2021
£
-
-
-
-
42,946		 Total
funds
2021
£
143,893
94,090
18,865
256,848
347,424		 Total
funds
2020
£
243,193
59,552
44,679
347,424

Government grants represent amounts received under the Coronavirus Job Retention Scheme.

Donations amounting to £42,946 were recognised as restricted income in the prior year.

Page 21

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

5. Income from charitable activities

Unrestricted Restricted Total Total
funds funds funds funds
2021 2021 2021 2020
£ £ £ £
Income from charitable activities - Promotion
of literature and music to the wider public 822,551 14,721 837,272 241,286
Total 2020 239,036 2,250 241,286
Analysis of income from charitable activities by type of income
2021 2020
£ £
Ticket sales 504,970 24,521
Merchandising/Commission 6,844 2,500
Grant income 150,000 125,000
Income from strategic partners 113,490 45,406
Other 61,968 43,859
837,272 241,286

6. Analysis of income from charitable activities by type of income

7. Analysis of expenditure on charitable activities Summary by fund type

Unrestricted
funds
2021
£
Promotion of literature and music to the wider
public
962,739
Total 2020
466,894		 Restricted
funds
2021
£
28,425
10,493		 Total
funds
2021
£
991,164
477,387		 Total
funds
2020
£
477,387

Page 22

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

8. Analysis of expenditure by activities

Promotion of literature and music to the wider
public
Total 2020
Analysis of support costs
Marketing/PR
Recruitment & training
Staff expenses
Insurance/professional fees
Premises costs
General office costs
IT equipment & maintenance
Bank charges
Bad & doubtful debts
Governance costs (note 9)
Loan interest		 Activities
undertaken
directly
2021
£
906,737
406,676		 Support
costs
2021
£
84,427
70,711		 Total
funds
2021
£
991,164
477,387
Total
funds
2021
£
14,128
288
1,607
4,997
21,892
6,384
10,941
870
80
16,040
7,200
84,427		 Total
funds
2020
£
477,387
Total
funds
2020
£
10,298
-
571
8,571
12,080
7,794
11,004
635
595
12,000
7,163
70,711

Page 23

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

9. Governance costs

Governance costs include the following:

Auditor's remuneration
Auditor's remuneration non-audit services
Other
Total		 2021
£
9,700
2,850
800
13,350		 2020
£
9,250
2,200
550
12,000

10. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2021
£
244,507
16,130
15,911
276,548		 2020
£
244,082
15,916
16,735
276,733

There were no redundancy or termination payments during this or the prior year.

The average number of persons employed by the company during the year was as follows:

2021 2020
No. No.
Average headcount 12 12

No employee received remuneration amounting to more than £60,000 in either year.

The remuneration of the Senior Management Team was £41,000 (2020: £40,725). The Senior Management Team who had day to day influence of the charity during the current period and the previous period was the Chief Executive Officer.

Page 24

BATH FESTIVALS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 December 2021, no expenses were reimbursed or paid directly to Trustees (2020: £Nil).

12. Intangible fixed assets

Cost
At 1 January 2021
At 31 December 2021
Amortisation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Website
Development
£
10,684
10,684
6,733
1,713
8,446
2,238
3,951

Page 25

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

13. Tangible fixed assets

Cost or valuation
At 1 January 2021
Additions
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Fixtures and
fittings
£
633
-
633
331
127
458
175
302		 Computer
equipment
£
4,033
2,033
6,066
1,492
1,824
3,316
2,750
2,541		 Total
£
4,666
2,033
6,699
1,823
1,951
3,774
2,925
2,843

14. Fixed asset investments

Bath Festivals owns the entire £2 ordinary share capital of Bath Festivals Enterprise Limited, a non-trading subsidiary (company number: 02840853). The registered office address of Bath Festivals Enterprise Limited is 1a Forum Buildings, St James Parade, Bath, BA1 1UG.

This company has remained dormant throughout the financial period and the aggregate share capital and reserves is £2.

Principal subsidiaries

The following was a subsidiary undertaking of the company:

The financial results of the subsidiary for the year were:

Page 26

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

15. Debtors

Trade debtors
VAT recoverable
Prepayments and accrued income		 2021
£
660
34,484
37,279
72,423		 2020
£
3,091
-
52,940
56,031

16. Creditors: Amounts falling due within one year

Unsecured bonds
Other loans
Trade creditors
Other taxation and social security
Advance patron fees
Accruals and deferred income
Deferred income at 1 January 2021
Resources deferred during the year
Amounts released from previous periods		 2021
£
240,000
20,000
29,675
5,882
6,250
138,265
440,072
2021
£
286,229
77,661
(286,229)
77,661		 2020
£
-
-
3,632
15,597
9,388
287,088
315,705
2020
£
187,500
149,050
(50,321)
286,229

Deferred income at 31 December 2021 represents income received in respect of The Bath Festival, including the Finale Weekend to be held in May 2022.

Page 27

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

17. Creditors: Amounts falling due after more than one year

Unsecured bonds
Advance patron fees
Accruals and deferred income		 2021
£
-
-
-
-		 2020
£
240,000
6,250
12,529
258,779

18. Statement of funds

Statement of funds - current year

Unrestricted funds
Unrestricted Funds
Restricted funds
B&NES Paper Nations
Young Producers
Share the Story
Routes Through Music
BCEP
Total of funds		 Balance at 1
January
2021
£
(429,433)
274
15,006
1,286
42,446
-
59,012
(370,421)		 Income
£
1,079,410
-
11,425
-
3,015
281
14,721
1,094,131		 Expenditure
£
(1,001,861)
-
(14,993)
(191)
(12,960)
(281)
(28,425)
(1,030,286)		 Balance at
31
December
2021
£
(351,884)
274
11,438
1,095
32,501
-
45,308
(306,576)

Page 28

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

18. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Unrestricted Funds
Restricted funds
B&NES Paper Nations
Young Producers
Share the Story
Routes Through Music
Total of funds		 Balance at
1 January
2020
£
(458,862)
601
22,422
1,286
-
24,309
(434,553)		 Income
£
543,587
-
2,250
-
42,946
45,196
588,783		 Expenditure
£
(514,158)
(327)
(9,666)
-
(500)
(10,493)
(524,651)		 Balance at
31
December
2020
£
(429,433)
274
15,006
1,286
42,446
59,012
(370,421)

Funds

Unrestricted funds included income during the 2021 financial year of £150,000 (2020: £125,000) from the Arts Council England.

Expenditure within restricted funds includes directly related expenditure, as well as a proportion of management and administration costs which can reasonably be allocated directly to those funds.

The purposes of the restricted funds are as follows:

B&NES Paper Nations

A project led by Bath Spa University and funded by Arts Council England is the Strategic Fund for Creative Writing in Schools, to foster creative writing in communities and schools for the benefit of children and young people everywhere, by establishing a creative writing hub.

Routes Through Music

This is a partnership with Bath Music Hub delivering music with young people in Youth Hubs across B&NES. It focuses on children and young people making music in non-formal settings, learning through informal activities and with those who are not able to access musical learning opportunities. It is a three year project funded by Youth Music. Again, the progress has been affected by the pandemic.

Page 29

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

18. Statement of funds (contined)

Young Producers

This is a three year project supported by the Andrew Lloyd Webber and Coles Medlock Trusts, originally scheduled for 2019-2021. Following a very successful project for Y9 students on pupil premium in academic year 2018/19, year 2 was begun at the start of 2019/20 but not possible to complete due to the pandemic. Trustees of the two trust funds agreed to defer funds into the 2022 May Schools Commission and October 2021 Reading is Magic Festival. The project enables young people to curate and create their own event, as part of the Bath Festival. We partnered with Mentoring Plus.

Share the Story

Share the Story is an opportunity for ticket buyers to donate money when they buy their tickets to create a fund which provides free tickets to families who would not normally be able to access the festival events.

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
2,925
Intangible fixed assets
2,238
Fixed asset investments
2
Current assets
83,023
Creditors due within one year
(440,072)
Total
(351,884)		 Restricted
funds
2021
£
-
-
-
45,308
-
45,308		 Total
funds
2021
£
2,925
2,238
2
128,331
(440,072)
(306,576)

Page 30

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

19. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2020
£
2,843
3,951
2
138,255
(315,705)
(258,779)
(429,433)		 Restricted
funds
2020
£
-
-
-
59,012
-
-
59,012		 Total
funds
2020
£
2,843
3,951
2
197,267
(315,705)
(258,779)
(370,421)
20.
Reconciliation of net movement in funds to net cash flow from operating activities
2021
£
Net income for the period (as per Statement of Financial Activities)
63,845
Adjustments for:
Depreciation and amortisation charges
3,664
Interest from investments
(11)
(Increase)/Decrease in debtors
(16,392)
(Decrease)/Increase in creditors
(154,412)
Net cash (used in)/provided by operating activities
(103,306)
21.
Analysis of cash and cash equivalents
2021
£
Cash at bank and in hand
55,908
Total cash and cash equivalents
55,908		 2020
£
64,132
5,191
(73)
4,561
40,375
114,186
2020
£
141,236
141,236

Page 31

(A Company Limited by Guarantee)

BATH FESTIVALS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

22. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1
January
2021
£
141,236
-
(240,000)
(98,764)		 Cash flows
£
(85,328)
(20,000)
-
(105,328)		 Other non-
cash
changes
£
-
(240,000)
240,000
-		 At 31
December
2021
£
55,908
(260,000)
-
(204,092)

23. Pension commitments

The Charity makes contributions into the personal pension funds of employees and the pension charge represent the contributions payable by the Charity to the funds in respect of the year and amounted to £15,911 (2020: £16,735) . These are unrestricted contributions.

24. Operating lease commitments

At 31 December 2021 the company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

The following lease payments have been recognised as an expense in the Statement of Financial Activities:

2021 2020
£ £
Operating lease rentals - 3,772

The charitable company ceased its operating lease during the year ended 31 December 2020.

Page 32

BATH FESTIVALS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

25. Related party transactions

Donations made by Trustees in aggregate during the period totalled £27,817 (2020: £36,230).

During the year ended 31 December 2021, Bath Festivals were loaned £20,000 by a Trustee of Bath Festivals. This was a short-term loan, with no interest being charged. The loan was repaid by Bath Festivals on 26 January 2022.

There were no other related party transactions during the current or prior period.

26. Guarantee

The Charity is a company limited by guarantee, with each member agreeing to pay £1 in the event of its being wound up. The members (who are also the directors of the charitable company) are listed on page 1.

Page 33