**Company Registration No. 02328810 Charity Registration No. 801637** 

## **JUNCTION CDC LIMITED** 

**(t/a Cambridge Junction)** 

**Trustees’ Report and Financial Statements** 

**Year ended 31 March 2022** 



## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **ANNUAL REPORT AND FINANCIAL STATEMENTS 2022** 

|**CONTENTS**||
|---|---|
||**Page**|
|**Reference and administration details**|**1**|
|**Trustees’ Report**|**2**|
|**Auditor’s Report**|**11**|
|**Consolidated statement of financial activities**|**14**|
|**Consolidated balance sheet**|**15**|
|**Charity balance sheet**|**16**|
|**Statement of cash flows**|**17**|
|**Notes to the financial statements**|**18**|





**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **ANNUAL REPORT AND FINANCIAL STATEMENTS 2022** 

## **REFERENCE AND ADMINISTRATION DETAILS** 

## **TRUSTEES** 

Richard Arnold Dr Othman Cole Nicola Buckley, Chair Dr Lucy Mills (appointed 18 July 2022) Jonathan Payne, Treasurer (resigned 26 Sep 2022) Mark Reddy, Treasurer (appointed 18 July 2022) Dr Merav Rosenfeld Godric Smith (resigned 26 Sep 2022) Julius Stobbs (resigned 26 Sep 2022) Gabrielle Sumner Zoe Svendsen 

## **COMPANY REGISTERED NUMBER** 

02328810 

## **CHARITY REGISTERED NUMBER** 

801637 

## **REGISTERED OFFICE** 

Clifton Way Cambridge CB1 7GX 

## **BANKERS** 

HSBC Bank plc Vitrium St John’s Innovation Park Cambridge CB4 0DS 

## **AUDITOR** 

Price Bailey Chartered Accountants Tennyson House Cambridge Business Park Cambridge CB4 0WZ 

1 



## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **TRUSTEES’ REPORT** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022** 

## **OUR PURPOSE AND ACTIVITIES** 

Cambridge Junction is the trading name of Junction CDC Ltd. 

Our purpose is to share the power of live performance and creativity. 

To do this we provide & encourage: 

- a welcoming home of original arts, entertainment, and creativity 

- opportunities for audiences and communities to experience, create and share, and a platform for emerging and establish artists 

- audiences, participants, and artists to be confident and curious. 

## Our vision is to: 

- be the most inspiring centre for the performing arts 

- grow a risk-taking audience through an engaging programme 

- support artists and their development, foregrounding artists and producers who are Deaf/Disabled, LGBTQIA+ and artists and producers who experience racism 

- be a centre for excellence for our work with young people with complex needs 

- communicate with passion, connect with our communities, and commit to change 

## We do this by: 

- commissioning and presenting an ambitious, original, engaging, entertaining and high-quality programme 

- delivering creative learning and community programmes 

- supporting artist and producer development 

Our cornerstones are: 

- Welcome, Creativity, Equity, Diversity, Inclusivity and Belonging Cambridge Junction is twenty minutes’ walk from the centre of the city and is located at the Cambridge Leisure Park.  Each year we hold over 350 events in our three spaces: 

   - J1, a large versatile performance and social space with a standing capacity of 850. 

   - J2, a 220-seat theatre. 

   - J3, a light-filled multipurpose space excellent for learning, rehearsal, residencies and talks. 

The goals of Cambridge Junction are to: 

- have more people experience and value arts, popular culture and creative learning. **GOAL 1** 

- support excellence in arts, popular culture and creative learning. **GOAL 2** 

- be a forward-thinking arts centre responsive to changes in the arts and community. **GOAL 3** 

- be rooted in Cambridge, contributing to the life of the city and its residents. **GOAL 4** 

- have a stable and adaptive business structure with diverse income streams. **GOAL 5** 

At Cambridge Junction we are: 

- **Committed** to art, entertainment and learning, which are experience-led, including new forms of performance, contributing to the creation of art through participation, access to popular music, and learning through creativity. 

- **Inclusive and welcoming** : of artistic ideas, forms and contexts, and the diversity and difference of our artists and audiences. 

- **Collaborative** : with artists, arts organisations, communities, government authorities and other stakeholders in pursuit of mutual goals. 

- **Strategic** : in business; balancing day-to-day management, entrepreneurial opportunities and long-term aspirations. 

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## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **TRUSTEES’ REPORT** 

## **ACHIEVEMENTS AND PERFORMANCE** 

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing their aims and objectives and in planning their future activities. This section of the Trustees’ Report identifies and explains the various activities undertaken. 

For these financial statements, the activities of Cambridge Junction may be classified as: 

- Programming 

   - a. Popular Culture 

   - b. Arts 

   - c. Family 

- Creative Learning: Open Access 

- Creative Learning: Targeted Projects 

- Creative Learning: Skills & Employability 

- Community Projects 

- Artist Development 

- Producer Development 

- Commissioning & Co-production 

Throughout 2021/22, the business and activities of Cambridge Junction continued to be impacted on significantly by the COVID-19 pandemic and necessary restrictions on activities. For at least a third of the year, public performances at full capacity were not possible, cancellations and rescheduling of performances and tours continued due to a combination of artist illness, travel restrictions, and lack of audience confidence in returning to live performances (leading to low sales nationally and the cancellation of tours), and new COVID variants (notably Omicron in November 2021 – January 2022) led to further cancellations and disruption. 

In the context of these ongoing and significant challenges, the achievements this year, in producing and presenting a high-quality, engaging and entertaining programme, delivering a series of projects for communities and young people with complex needs, attracting audiences of nearly 70,000, and delivering a surplus on unrestricted funds at year-end are testament to a resilient and dynamic business model, excellent financial management, the strength and professionalism of our teams, the loyalty of our audiences and the ongoing support of our stakeholders. 

Cambridge Junction has maintained strong relationships with its key funders and stakeholders, Arts Council England and Cambridge City Council. 

We were successful in two large applications to Arts Council England. Firstly, for an extension to our National Portfolio Organisation funding for £649,146 to cover the year 2022/23 (2021/22 £649,146), and to their Capital Investment Fund (£461,678) to support new AV equipment (specifically a complete overhaul of sound systems in J1 and J2), and improvements to the accessibility of the building for community use. 

We continue to be grateful for the vital support offered by Arts Council England, HM Revenue and Customs, and the Culture Recovery Fund, which allowed Cambridge Junction to continue operating and replace income lost due to our closure to the public (between April-July 2021) and cancellations due to ongoing impacts including through Omicron in December 2021 – January 2022). Covering periods in 2021/22, we received funding in rounds two and three of the Culture Recovery Fund, with awards of £248,083 and £115,631 respectively. 

In addition to funding from statutory organisations, we continue to grow income from private sources, from Trusts & Foundations, individuals and companies. In 2021/22, we secured the largest gift from a Trust in our history, with an award of £176,000 from the Paul Hamlyn Foundation to support a three-year Creative Learning project – Take Two – through which we will work with four education settings and deliver a programme of creative workshops, skills & employability work and engagement with young people with complex needs. We also secured funding from the following Trusts & Foundations, other statutory/project and international funds; Red Hill Trust, Cambridgeshire Community Foundation - Warwick & Dominey Fund, Cambridgeshire Community Foundation - Arm Community Fund, Children in Need, Norfolk and Norwich Festival Bridge, Cambridgeshire Music, and the Canadian High Commission. 

We have grown our individual giving with 490 members, supporters and patrons as of 31 March 2022. This is a strong position for a scheme that has only been in operation for five years, and we are in the process of further developing this work to ensure ongoing engagement with members through a year-round programme of events (including 

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## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **TRUSTEES’ REPORT** 

## **ACHIEVEMENTS AND PERFORMANCE (CONTINUED)** 

cultivation opportunities, season launches and press nights) and will in future years launch corporate, community and youth membership schemes to continue to build on the loyalty and ownership of audiences, participants and supporters. 

## **Programming** 

Our presentation programmes returned to full strength from the end of July 2021. The rescheduling and postponement of tours from the previous two years required Cambridge Junction’s teams to operate at full capacity, with a large volume of activity particularly February – March 2022. This programme was particularly strong with nationally and internationally acclaimed bands and companies, artists, performers, and musicians bringing highquality, engaging and entertaining new work to Cambridge and for audiences from the city, county and region. 

In 2021/22 we presented 443 performances (2019/20: 681), with 79 of these for children, young people, and families. 69,206 people attended events (2019/20: 93,878), with 4,443 people attending family shows (2019/20: 9,568). 2019/20 figures used for comparison as due to the pandemic, we presented only 5 physical/live performances with a total in-person audience of 233 in 2020/21. 

Highlights of the Popular Culture programme included standout comedy performances from Sarah Millican, Sofie Hagen, Rich Hall, Ahir Shah, and Bill Bailey. Our diverse music programme continues from strength to strength with many big events selling out in record time. Highlights included Tom Jones, Beabadoobee, Declan McKenna, The Vaccines, John Grant, DJ Marky, Grace Petrie, Cavetown, Nick Cope, Black Midi, shame, Trials of Cato, Carl Barat, Andy C, and Warmduscher. 

We continue to commission, produce and deliver a distinctive, contemporary Arts programme, which foregrounds artists who experience racism, and LGBTQIA+ and Disabled artists. To ensure access to this disruptive and lingering work, created by local, national and international artists, we offer tickets on a Pay What You Feel model with tickets from £2.50. It is worthy of note that in 2021/22, the average price paid per ticket was £6.51, an increase of 20% on 2018/2019 when tickets were offered at fixed prices. 

Arts programme highlights included Ontroerend Goed and Rhiannon Faith – as online/digital presentations during lockdown – Anna Brownsted, METIS, Figs in Wigs, New Art Club, Emma Frankland, Sh!t Theatre, Symone, Complicite & Fehinti Balogun, Emma Spearing, Charmaine Childs, Urban Foxes, Bertrand Lasca & Nasi Voutsas, Dan Daw, Luca Rutherford, Club Urania (collaboration with Wysing Arts Centre and local independent producers and curators), and Pagrav Dance. 

Our Christmas show is a highlight of our year and often a young audience member’s first experience of theatre. We co-produced our Christmas show again with New International Encounter this year, completing The Snow Queen and the work begun as a digital project in 2020. The show was delivered in the most challenging of circumstances, with one review describing it as ‘ _the cleverest children’s play I’ve seen in decades’_ . Sales were down on target due to the pandemic. However, against the odds we successfully presented the majority of the run with only the last five shows being cancelled due to cast illness. With many shows being cancelled before Christmas this was fantastic luck and testament to safe working and commitment from both NIE and our team. 

We also filmed and produced a live digital recording of the show which was viewed by many people who couldn’t make it to the theatre, including NHS staff and patients, school groups who watched from their classrooms and nursing home residents, for which we received positive feedback. 

## **Creative Learning** 

We continue to work to become a centre of excellence for our work with young people with complex needs. In 2021/22, our Creative Learning programme and projects engaged 4,329 children and young people, many of whom have complex needs. 

Our Creative Learning programme is comprised of Open Access, Targeted and Skills & Employability projects. Open Access projects include Junction Young Company, Total Arts and Total Arts Mini-Bytes, and our new Contemporary Youth Choir. Targeted projects focus on work with young people with complex needs, and marginalised young people, and include Paul Hamlyn Foundation funded multi-year projects Act One (which was completed in 2021/22) and Take Two (for which we made a successful application to PHF in 2021 that will run until 2024). Skills & Employability 

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## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **TRUSTEES’ REPORT** 

## **ACHIEVEMENTS AND PERFORMANCE (CONTINUED)** 

projects include our Apprenticeships, Industry Days and intensive workshops such as Big Bang Theory (developing sound engineering skills for 14+ year olds). 

In 2021, our youth theatre, Junction Young Company (JYC) created the Impossible Show working with Breach Theatre, under lockdown restrictions and filmed in an evocatively empty building https://www.junction.co.uk/impossibleshow. Breach Theatre continued to work with JYC through 2021/22 to create a new show that premiered in April 2022. 

Total Arts met online throughout lockdowns and we welcomed this longstanding group of Disabled young creatives back to the building in September 2021. Our provision of workshops and activities online was invaluable to participants, many noting the importance to their mental health, confidence and well-being. In autumn 2021, we launched a new project - Total Arts Mini-bytes – for children aged 9+, with this project being fundraised for by Total Arts participants themselves led by long-term member Irving McCormack. 

Contemporary Youth Choir, led by local musician Yvonne Hercules, was established at the beginning of 2022 with funding from Children in Need and Cambridgeshire Community Foundation. This project is inclusive of disabled and non-disabled young people, free to participants and open to people with no previous singing experience. The project has been one of our most popular with parents/guardians/carers and young people and is already noted for its positive impact on the confidence and well-being of participants. 

My Illness – a film supported as part of Paul Hamlyn Foundation funded project Act One, was released to mark Mental Health Awareness week and to support a call for more resources for young people and mental health. This was made just prior to lockdown in 2020 but only released in 2021 and was made by theatremaker Gavin Dent and filmmaker Pete Harmer, and young people at the Darwin Centre / Pilgrim PRU. https://vimeo.com/542106463 

Also as part of Act One in 2021/22 we worked with Red Balloon, with the project led by spoken word artist Desree, and with Olive AP Academy, led by HighRise Theatre. Through these projects we developed our creative relationship with young people, building skills and confidence, and improving mental health and well-being, created high-quality, professionally produced films, and grew our partnerships with Red Balloon and Olive AP towards our bigger, more ambitious multi-year project Take Two, for which we were awarded funding by PHF in November 2021. 

With support from Festival Bridge’s Digital R&D fund, our Creative developed our first virtual industry days, building on the success of our in-person Industry Days and delivering vital creative industries skills & employability work for schools. These were successful in finding innovative solutions to a range of technical issues and in ensuring access for young people for whom in-person activities were at that stage restricted. A digital/remote delivery approach allowed us to share the breadth of opportunities for young people to access and follow careers in the arts and creative industries. These included virtual tours of the building with a specially commissioned spoken word narration from Desree, with film made by Peter Harmer, short introductory workshops from artists and our technical team, virtual lighting workshops and spoken word masterclasses. 

## **Community** 

Cambridge Junction received £55,000 from Cambridge City Council’s Community Fund to deliver community projects in six neighbouring wards – Coleridge, Queen Edith, Trumpington, Cherry Hinton, Romsey and Petersfield. Each of these projects responded to community need and sought to tackle inequality, across the UK’s most unequal city. We worked with artists including Hunt & Darton, HighRise Theatre, Unfinished Business and Luca Rutherford and worked with marginalised young people to create high-quality film work, gave new visibility to progressive and radical women across the city through a series of large-scale photography portraits, delivered sourdough baking workshops, and hosted a TV chat show on the streets of Queen Edith as part of their Skip Day. We were also successful in a further application to Cambridge City Council’s Community Fund for £50,000 to support the continuation of this community programme in 2022/23. 

As part of our Community programme, and delivered by our Creative Learning team, Cambridge Junction, in partnership with HighRise Theatre and Romsey Mill, worked with young people at risk of exclusion or excluded from education and employment in Trumpington. Detached work unearthed a thirst for music provision in the area, creating the project, Beats, Trials and Tribulations, which enabled young people to work with industry professionals to unlock their lyrical, production and filmmaking talents. It provided a safe space for them to express themselves, 

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## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **TRUSTEES’ REPORT** 

## **ACHIEVEMENTS AND PERFORMANCE (CONTINUED)** 

explore their creativity, and to learn new skills and grow in confidence. It also brought together a supportive community and led to ten incredible music videos/freestyles being created based on their experiences. 

## **Artist & Producer Development** 

We continue to provide a regional leading role on artist development. Our artist development network Troop (which currently has 67 members) received training, workshops, advice sessions, mentoring, work-in-progress opportunities and space and time in our building to make work. In 2021/22 we commissioned and supported the development of 21 new pieces of work and offered 45 weeks of residency time across the building. 

Artists and companies supported with residencies in the building have included Anna Brownsted, METIS, Collusion, Josie Dale-Jones, Menagerie, Sam Plumb, Figs in Wigs, Luca Rutherford & Lizzie Klotz, Louise Orwin, Emma Spearing, Urban Foxes, New Art Club, Fatt Projects, Yshee Black, Vijay Patel, Katy Baird, Harry Clayton-Wright, Subira Joy, Bar Groisman, Dan Daw, Pink Suits, Anna Malender and Frozen Light. 

Commissions were awarded to Tamara Micner, Josie Dale-Jones, Subira Wahogo, New Queers on the Block, Rising Tide, Marisa Carnesky, Harry Clayton-Wright, Chanje Kunda, Luca Rutherford, Dais Hale / Spaces of Joy, Action Hero, Yewande 103, Fatt Projects, Liz Counsell & Linda Rocco (I’m Here Where Are You?), H2 Dance (Fest en Fest), Alice Holland (Powerhouse), Sam Ross, Krishna Zivraj-Nair, Hester Stefan Chillingworth, Rachel Mars and Selina Thompson 

We also began a collaboration with Producer Gathering, that brought together theatre, dance, live art and cabaret producers from across the UK to discuss issues around the state of the sector, equity, inclusivity, precarity and career development. 

Ensuring Cambridge Junction’s resilience, now and in the future, remains a priority, particularly considering the impacts of COVID-19, gas and electricity prices and cost of living increases. In 2021/2022 we increased our free reserves to £186,260 (2021: £162,774) and established a designated fund to mitigate against increases in utility costs. We continue to operate as a social enterprise with surplus reinvested into our charitable activity. [ **KPI5** ] 

## **FINANCIAL REVIEW** 

Overall, the group had net expenditure for the year of £136,202 (2021: net income £285), including net surplus of £92,289 (2021: £208,982) on unrestricted funds. 

The net expenditure on restricted funds in the year was £228,491 (2021: £208,697). 

Included within the group’s results are those of the charity’s wholly owned trading subsidiary, The Junction Promotions Limited, which earned £122,625 profit for the year (2021: loss £11,333), £113,560 of which was giftaided to the charity. **[KPI15]** 

We continue to maintain excellent relationships with our principal funding bodies, Arts Council England and Cambridge City Council.  Arts Council England supports our core activity with annual funding of £649,146 (2021: £649,146) through its National Portfolio funding programme. We received project funding of £55,000 (2021: £27,500) from Cambridge City Council to support our community engagement programme during the pandemic. [ **KPI5** ] 

The Charity understands its duty to protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches, and undue pressure to donate but does not currently fundraise from the public or use any internal fundraisers or external fundraising agencies for either telephone or face to face campaigns and received no fundraising complaints during the year.  The charity is registered as a small charity with the Fundraising Regulator. 

## **RESERVES POLICY** 

Cambridge Junction carries out a diverse range of activities, including short term, externally funded projects and longterm business development.  The trustees have examined the requirement for free reserves, i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed.  The trustees consider that, given the scale of the organisation and the nature of its work, the level of free reserves should be approximately £230,000 at any one time. 

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## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **TRUSTEES’ REPORT** 

## **RESERVES POLICY (CONTINUED)** 

The trustees are of the opinion that this provides: 

- Sufficient flexibility to cover temporary shortfalls in income due to timing differences in income flows; 

- Adequate working capital to cover core costs; and 

- An allowance to enable the organisation to cope and respond to unforeseen emergencies whilst specific action plans are implemented. 

In determining the reserves policy, the trustees have considered the fixed costs required to maintain the Company for three months stands at approximately £230,000.  The trustees have also considered the impact of any funding loss and the timescale in which this might occur. 

The balance sheet shows total funds of £2,462,353 at 31 March 2022 (2021: £2,598,555). 

These funds included restricted funds of £1,780,201 (2021: £2,028,009). This comprises grants and other income and assets subject to donor-imposed conditions.  The restricted funds include a Tickets in Advance Reserve of £120,000, which is a reserve equivalent to a prudent value of tickets sold in advance of events.  Full details of restricted funds can be found in note 17 to the financial statements together with an analysis of movements in the year.  The trustees note that the Tickets in Advance Reserve provides risk mitigation around ticket sales. 

Unrestricted funds of the organisation at 31 March 2022 were £682,152 (2021: £570,546). These funds include £119,475 (2021: £81,975) relating to designated funds for a repair and renewal contingency, £50,088 (2021: £28,393) relating to designated funds for remuneration contingency, £21,000 (2021: £12,000) relating to designated funds for website optimisation, £43,855 (2021: £43,855) relating to designated funds for philanthropy and development, £40,000 (2021: nil) relating to designated funds for international projects delayed due to COVID-19, £40,000 relating to designated funds to mitigate against increased utility costs.  The free reserves of the group are £186,260 (2021: £162,774) after taking out fixed assets of £181,474 (2021: £169,390). 

At 31 March 2022, the free reserves fell short of the desired level as set out in the reserves policy, above. 

## **PLANS FOR FUTURE PERIODS** 

While necessary restrictions due to the pandemic have been lifted on activities, the pandemic is not over and continues to impact on our programmes and lives, through staff, artist and audience illness and audience confidence to attend public spaces. We will continue to work to develop audiences and programmes and identify new sources of income (both donated and earned) to ensure we increase attendance, grow income, are dynamic in our development of strategy and actions, and further strengthen our resilience to this ongoing situation and similar challenges in the future. 

Supply chain issues as a result of Brexit and the ongoing Russian invasion of Ukraine, have impacted on lead times for upgrading our AV equipment and vital repairs, such as to the lift in J2. The dramatic and unforeseen increases to energy prices are affecting our operations on a day-to-day basis and we have created a designated fund to counter this in the short term. Energy prices, inflation and the crisis in cost of living is and will further impact on our staff and all those with whom we work, and will require action on pay or balancing cost-of-living payments. We will explore with our Board how best to manage salaries and payments to ensure we maintain our financial sustainability while considering the needs of our teams. 

We continue to be concerned about the future of public funding of the arts and will continue to lobby central government to properly support both local government and Arts Council England effectively. The recent cuts to arts provision in Higher Education are of great concern and it does not bode well for future government decisions on funding for the sector. It is vital that central government understands the huge range of benefits as well as the significant economic impact, both locally and nationally, that the arts and cultural sector provide. We are one of the UK’s largest industrial sectors returning billions to the Treasury each year. The sector has made this argument long and hard and we will continue to do so. 

In May 2022, we submitted our application to Arts Council England’s National Portfolio, for funding for the years 2023-26. The Board and whole organisation were included in this process and gave valuable input and guidance. Our application clearly represents the embedding and implementation of Arts Council England’s Let’s Create strategy 

_7_ 



## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **TRUSTEES’ REPORT** 

## **PLANS FOR FUTURE PERIODS (CONTINUED)** 

2020-2030 and responds fully to its new Investment Principles and gives a detailed action plan to deliver to Let’s Create Outcomes. We will hear whether our application was successful in October 2022. 

The capital redevelopment of the site we currently lease from Cambridge City Council remains an urgent concern and major ambition for Cambridge Junction’s senior leadership and Board. Since 2014, we have worked with our partners at Cambridge City Council on a series of feasibility studies and proposals, including writing the brief and procurement of a lead design team in November 2019. Cambridge Junction’s senior leadership and Board were deeply disappointed by Cambridge City Council’s decision to cancel the planned project in October 2021, albeit in the difficult post-pandemic context. We seek to work with them and local partners to develop a proposal that can succeed in this changed context. 

The business case for the development of our site - to provide Cambridge Junction and the city with a significant cultural complex - has been fully detailed in previous studies. These will be reviewed as the local and wider economic, political, social and cultural operating context becomes more clearly defined. Our need for far greater capacity is brought into ever sharper relief by the first release of data from Census 2021 which shows that Cambridge’s population has increased by 43% since we opened in 1990 and will have increased by 54% by 2031. Arts Council England have identified delivery of capital plans and delayed engagement with key partners on the project as currently the greatest risk to our plans and success. In the meantime, we are delivering smaller capital improvements for which we have gained support from Arts Council England and other funders. This smaller programme of access and facility improvements will be delivered in 2023 with the larger capital project becoming our priority for the medium and longer term. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

The trustees constitute directors of the charitable company for the purpose of the Companies Act 2006. 

The trustees serving during the year and since the year end, are shown on page 1. 

## _**Governing document**_ 

Cambridge Junction is incorporated as a company limited by guarantee with no share capital, registered in England and Wales (Company registration no. 02328810), and is set up as a registered Charity (Charity registration no. 801637). 

Cambridge Junction’s Memorandum and Articles of Association were incorporated on 15 December 1988 and amended by special resolution on 23 May 1989; 31 March 1998; 6 March 2000; 10 May 2000 and 22 February 2006. 

## _**Appointment of Trustees**_ 

There can be up to 17 trustees, elected to the Board.  Each trustee is elected for a term of three years and can be reelected for consecutive periods not exceeding nine years.  After serving for nine years, a board member is not eligible for re-election until one year after retirement.  New trustees are identified through personal recommendation, local networks and recruitment advertising.  The trustees undertake a regular skills audit to ensure a suitable balance of skills and experience is achieved. 

## _**Trustee induction and training**_ 

On appointment, new trustees meet with the chair of the board and with senior management.  These meetings include in-depth discussions regarding the structure, management and aims of the organisation and the responsibilities of the board as a whole and of individual trustees.  New trustees are provided with a pack of relevant policies and other background information (including copies of budgets and financial statements) and are informed about the general information available on the Charity Commission website. 

## _**Group structure**_ 

The charity’s wholly owned trading subsidiary, The Junction Promotions Limited, which is incorporated in the United Kingdom and registered in England and Wales, pays all its profits to the charity by gift aid, under a deed of covenant. The Junction Promotions Limited operates the bars, refreshments and all commercial trading operations carried out at Cambridge Junction.  The charity owns the entire issued share capital of 2 ordinary shares of £1 each. 

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## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **TRUSTEES’ REPORT** 

## _**STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)**_ 

The Board of trustees has overall control of the charity and is responsible for ensuring it fulfils its charitable aims and objectives.  The Board appoints the CEO who in turn appoints the staff team responsible for the day to day running of the charity and trading subsidiary. 

## _**Related parties and co-operation with other organisations**_ 

Cambridge Junction had no formal partnership agreements in place during 2021/22. 

## _**Key management personnel**_ 

Matt Burman is the Artistic Director and Chief Executive Officer.  Helen Chamberlain is the General Manager. 

## _**Pay policy for senior staff**_ 

Pay levels are agreed annually by the Board.  All pay levels, including those of senior staff, are based on an understanding of fair and equitable pay within the arts sector and within peer National Portfolio Organisations. 

Cambridge Junction is committed to pay all permanent staff the Living Wage (as set by the Living Wage Foundation) or better.  All casual staff are paid the National Minimum Wage for 23+ or better.  The organisation aspires to pay all staff the Living Wage or better. 

Cambridge Junction does not pay performance related bonuses. 

## _**Risk management**_ 

The trustees have assessed the major risks to which Cambridge Junction is exposed, in particular those related to the strategic, business, operations and finances of Cambridge Junction, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. 

Key risks and the trustees’ approach to mitigating these risks are outlined in Cambridge Junction’s business plan. However, the primary risks remain the failure to achieve audience levels/income (particularly in J1) and the reduction/cessation of ongoing financial support from Arts Council England and/or Cambridge City Council.  COVID19 has and will have a major and negative impact on audience levels, income and our funding relationships with Arts Council England and Cambridge City Council. 

The trustees’ approach to mitigating these risks is to: reforecast budgets at quarterly intervals and to ensure the budget reflects actual trading and funding outcomes; revise budgets to reduce core costs; and, where necessary, to draw on the free reserves. Additionally we will work closely with funders and lobby for additional financial support from government to support our continued operation across 2022/23. 

## **TRUSTEES’ QUALIFYING THIRD PARTY INDEMNITY PROVISIONS** 

The company has granted an indemnity to one or more of its trustees against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006.  Such qualifying third-party indemnity provision remains in force as at the date of approving the Trustees’ report. 

_9_ 



## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **TRUSTEES’ REPORT** 

## **TRUSTEES’ RESPONSIBILITIES STATEMENT** 

The trustees (who are also directors of Junction CDC Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the trustees to prepare financial statements for each financial year.  Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP 2019 (FRS 102); 

- make judgements and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. 

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

## **AUDITOR** 

Each of the persons who is a trustee at the date of approval of this annual report confirms that: 

- so far as the trustee is aware, there is no relevant audit information of which Cambridge Junction’s auditor is unaware; and 

- the trustee has taken all the steps that he/she ought to have taken as a trustee to make himself/herself aware of any relevant audit information and to establish that Cambridge Junction’s auditor is aware of that information. 

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. 

Price Bailey has expressed its willingness to continue in office as auditor and reappointment as auditor will be considered at the forthcoming Annual General Meeting. 

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

Approved by the Board of Directors and signed on behalf of the Board 

Jon Pa ne y 

Jon Payne (Oct 7, 2022, 12:51pm)J Payne J Payne 

Trustee 

> Date: 26 September 20227 October 2022. 07 Oct 2022 

_10_ 



## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF JUNCTION CDC LIMITED** 

## **Opinion** 

We have audited the financial statements of Junction CDC Limited (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the statement of consolidated cash flows and notes to the financial statements, including significant accounting policies.  The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 March 2021, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting 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 statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

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

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

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

## **Other information** 

The other information comprises the information included in the trustees 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. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

_11_ 



## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF JUNCTION CDC LIMITED** 

- the information given in the trustees' report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the directors’ report has been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

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

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

- adequate and proper 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 parent charitable company’s financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees (who are also the directors of the parent 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 group and 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 trustees either intend to liquidate the group or parent 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** 

We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act. 

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

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

We gained an understanding of the legal and regulatory framework applicable to the group and charitable company and how it operates and considered the risk of the group and charitable company not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements.  This included those regulations directly related to the financial statements.  In relation to the group and charitable company this included data protection, health and safety, employment law, licences to run venues and bar licences and financial reporting. 

_12_ 



## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF JUNCTION CDC LIMITED** 

The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit.  We carried out specific procedures to address the risks identified. These included the following: 

- Management override: We reviewed systems and procedures to identify potential areas of management override risk. In particular, we carried out testing of journal entries and other adjustments for appropriateness.  We also assessed management bias in relation to the accounting policies adopted and in determining significant accounting estimates. 

- Reviewing minutes of Trustee Board meetings and correspondence with the Charity Commission, agreeing the financial statement disclosures to underlying supporting documentation, making enquiries of management including those responsible for the key regulations, review of the risk management processes and procedures in place maintained by the group and charitable company.  We have also reviewed the procedures in place for the reporting of any incidents to the Trustee Board including serious incident reporting of these matters as necessary with the Charity Commission. 

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidancefor-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. 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 the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. 

## **Helena Wilkinson BSc FCA DChA (Senior Statutory Auditor) for and on behalf of Price Bailey LLP** 

Chartered Accountants Statutory Auditors 

Tennyson House Cambridge Business Park Cambridge CB4 0WZ 

Date:  19 October 2022 

_13_ 



## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including consolidated income and expenditure account) Year ended 31 March 2022** 

|**Note**<br>**INCOME:**<br>**_Donations and legacies_**<br>3<br>**_Income from charitable activities:_**<br>Main projects and participation programme<br>4<br>Projects including arts development<br>**_Other Income:_**<br>Coronavirus Job Retention Scheme<br>**_Income from other trading activities:_**<br>Commercial trading operations<br>5<br>**_Investments – bank interest_**<br>6<br>**Total income**<br>**EXPENDITURE:**<br>**_Costs of raising funds:_**<br>Commercial trading operations<br>5<br>**_Expenditure on charitable activities:_**<br>Main projects and participation programme<br>7<br>Projects, including arts development<br>7<br>**Total expenditure**<br>**Net income/(expenditure)**<br>Transfer between funds<br>17<br>**Net movement in funds in the year**<br>Total funds brought forward<br>17<br>**TOTAL FUNDS CARRIED FORWARD**<br>17|**Unrestricted**<br>**funds**<br>**2022**<br>**£**<br>1,200,190<br>836,378<br>-<br>119,994<br>378,138<br>455<br>**2,535,155**<br>255,513<br>2,067,359<br>119,994<br>**2,442,866**<br>**92,289**<br>19,317<br>**111,606**<br>**570,546**<br>**682,152**|**Restricted**<br>**funds**<br>**2022**<br>**£**<br>**Total funds**<br>**2022**<br>**£**<br>137,416<br>1,337,606<br>-<br>836,378<br>-<br>-<br>119,994<br>-<br>378,138<br>-<br>455<br>**137,416**<br>**2,672,571**<br>-<br>255,513<br>55,000<br>2,122,359<br>310,907<br>430,901<br>**365,907**<br>**2,808,773**<br>**(228,491)**<br>**(136,202)**<br>(19,317)<br>-<br>**(247,808)**<br>**(136,202)**<br>**2,028,009**<br>**2,598,555**<br>**1,780,201**<br>**2,462,353**|**Total funds**<br>**2021**<br>**£**<br>1,298,259<br>41,418<br>7,995<br>559,172<br>815<br>584<br>**1,908,243**<br>12,148<br>1,043,458<br>852,352<br>**1,907,958**<br>**285**<br>-<br>**285**<br>**2,598,270**<br>**2,598,555**|
|---|---|---|---|



There were no other items of comprehensive income other than those listed above and the net income for the year. All income and expenditure derive from continuing activities. 

The deficit of the parent charity for the year for Companies Act purposes is £136,202 (2021: surplus £285).  As permitted by Section 408 of the Companies Act 2006, no separate Statement of Financial Activities is presented in respect of the parent charity. 

See note 17 for comparative Consolidated Statement of Financial Activities analysed by funds. 

The notes on pages 18 to 35 form part of these financial statements. 

_14_ 



## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **CONSOLIDATED BALANCE SHEET Year ended 31 March 2022** 

|**Note**<br>**FIXED ASSETS**<br>Tangible assets<br>11<br>**CURRENT ASSETS**<br>Stocks<br>13<br>Debtors<br>14<br>Cash at bank and in hand<br>**CREDITORS: amounts falling due**<br>**within one year**<br>15<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**NET ASSETS**<br>**CHARITY FUNDS**<br>Restricted funds<br>17<br>Unrestricted funds<br>17<br>**TOTAL FUNDS**|**2022**<br>**£**<br>1,768,481<br>23,707<br>149,916<br>1,133,738<br>1,307,361<br>(613,489)<br>**693,872**<br>**2,462,353**<br>**2,462,353**<br>1,780,201<br>682,152<br>**2,462,353**|**2021**<br>**£**<br>1,980,563<br>6,170<br>146,318<br>907,839<br>1,060,327<br>(442,335)<br>**617,992**<br>**2,598,555**<br>**2,598,555**<br>2,028,009<br>570,546<br>**2,598,555**|
|---|---|---|



The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. The notes on pages 18 to 36 form part of these financial statements. 

The financial statements of Junction CDC Limited, registered number 02328810 were approved by the Board of Trustees and authorised for issue on _________________________. 26 September 20227 October 2022. 07 Oct 2022 

Signed on behalf of the Trustees 

Jon Pa ne y 

J Payne Jon Payne (Oct 7, 2022, 12:51pm) J Payne Trustee 

_15_ 



## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **CHARITY BALANCE SHEET Year ended 31 March 2022** 

|**Note**<br>**FIXED ASSETS**<br>Tangible assets<br>11<br>Investments<br>12<br>**CURRENT ASSETS**<br>Debtors<br>14<br>Cash at bank and in hand<br>**CREDITORS: amounts falling due**<br>**within one year**<br>15<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**NET ASSETS**<br>**CHARITY FUNDS**<br>Restricted funds<br>17<br>Unrestricted funds<br>17<br>**TOTAL FUNDS**|**2022**<br>**£**<br>1,768,481<br>2<br>1,768,483<br>746,765<br>530,255<br>1,277,020<br>(583,150)<br>**693,870**<br>**2,462,353**<br>**2,462,353**<br>1,780,201<br>682,152<br>**2,462,353**|**2021**<br>**£**<br>1,980,563<br>2|
|---|---|---|
|||1,980,565|
|||538,271<br>526,668|
|||1,064,939<br>(437,884)|
|||**627,055**|
|||**2,607,620**|
|||**2,607,620**|
|||2,028,009<br>579,611|
|||**2,607,620**|



The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. The notes on pages 18 to 36 form part of these financial statements. 

The financial statements of Junction CDC Limited, registered number 02328810 were approved by the Board of Trustees and authorised for issue on _________________________. 26 September 20227 October 2022. 07 Oct 2022 

Signed on behalf of the Trustees 

Jon Pa ne y J PayneJ Payne Jon Payne (Oct 7, 2022, 12:51pm) 

Trustee 

. 

_16_ 



## **JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **STATEMENT OF CONSOLIDATED CASH FLOWS** 

## **Year ended 31 March 2022** 

|**Note**<br>Cash generated from operating activities<br>22<br>**Cash flows from investing activities**<br>Interest income<br>Purchase of tangible fixed assets<br> <br>**Cash flows used in investing activities**<br>Increase in cash and cash equivalents in the year<br>Cash and cash equivalents at beginning of the year<br>**Total cash and cash equivalents at the end of the year**||**2022**<br>**£**<br>251,551<br>455<br>(26,107)<br>225,899<br>225,899<br>907,839<br>1,133,738||**2021**<br>**£**<br>266,372<br>584<br>(7,781)<br>259,175<br>259,175<br>648,664<br>907,839<br>**2021**<br>**£**<br>259,175<br>648,664<br>907,839|
|---|---|---|---|---|
||||||
|**RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT**|||||
|**Note**<br>Increase in cash in the year being<br>movement in net funds in the year<br>23<br>Net funds at 1 April<br>**Net funds at 31 March**||**2022**<br>**£**<br>225,899<br>907,839<br>1,133,738|||



The notes on pages 18 to 35 form part of these financial statements. 

_17_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **1. ACCOUNTING POLICIES** 

## **Company and charitable status** 

Junction CDC Limited meets the definition of a public benefit entity under FRS102 and is incorporated in the United Kingdom and registered in England and Wales as a company limited by guarantee not having a share capital. There are currently eight (2021: nine) Trustees who are also the members of the company. Each member has undertaken to contribute to the assets in the event of winding up a sum not exceeding £1. The charity is a registered charity.  The registered office is given on page 1. 

## **General information and basis of accounting** 

The financial statements are prepared under the historical cost convention, in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2019)” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), effective 1 September 2018; and the Companies Act 2006. 

The financial statements are presented in Sterling and are rounded to the nearest £. 

The principal accounting policies are set out below _._ 

## **Preparation of financial statements - going concern basis** 

Cambridge Junction’s activities, together with the factors likely to affect its future development, performance and position are set out in the Trustees’ Report. The Trustees’ Report also describes the financial position of Cambridge Junction; its risk management objectives and policies; its free reserves policy and statutory funding position. 

The trustees have prepared forecasts which show that Cambridge Junction will be able to meet its liabilities as they fall due, for a period of at least 12 months from the date of approval of these financial statements. 

The trustees have a reasonable expectation that Cambridge Junction has adequate resources to continue in operational existence for the foreseeable future and, therefore, continue to adopt the going concern basis in preparing these financial statements. 

## **Basis of consolidation** 

Group financial statements have been prepared in respect of the Charity and its wholly owned subsidiary undertaking Junction Promotions Limited. These financial statements have been consolidated on a line-byline basis and the results of the subsidiary undertaking are disclosed in note 5. 

## **Income** 

Income is recognised when the Group and 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. Income relating to events including ticket sales, bar income and cloakroom income is recognised at the date of performance. 

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. 

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. 

## **Government grants** 

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income. 

_18_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **1. ACCOUNTING POLICIES (CONTINUED)** 

## **Expenditure** 

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

Expenditure on raising funds includes the costs incurred in commercial trading operations. 

Expenditure on charitable activities includes the costs of performances and other educational activities undertaken to further the purposes of the charity and their associated support costs. 

## **Allocation of support costs** 

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Trust’s artistic programmes and activities.  These costs have been allocated between cost of raising funds and expenditure on charitable activities. Irrecoverable VAT is charged as an expense and shown within support costs 

The bases on which support costs have been allocated are set out in note 8. 

## **Fund accounting** 

General funds are unrestricted funds which are available for 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 for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. 

Restricted funds are funds subject to specific restrictions imposed by the funding authorities and donors. These funds are not available for the Trustees to apply at their discretion. The purpose and use of the restricted funds is set out in the notes to the financial statements. 

## **Taxation** 

The parent company is a registered charity and has no liability to corporation tax on its charitable activities under the Corporation Tax Act 2010 (chapters 2 and 3 of part ii, section 466 onwards) or Section 256 of the Taxation for Chargeable Gains Act 1992, to the extent surpluses are applied to its charitable purposes. 

Current tax for the subsidiary company, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. No corporation tax is payable (or receivable) for the current or previous financial year. 

## **Tangible fixed assets** 

Fixtures and equipment are stated at cost less accumulated depreciation and any recognised impairment loss. 

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows: 

Long term leasehold property Period of lease Fixtures and fittings 20-33% 

Residual value is calculated on prices prevailing at the date of acquisition. Useful lives and residual values are reviewed at the end of every reporting period. 

## **Investments** 

In the parent charity balance sheet, investments in subsidiary undertakings are measured at cost less impairment. 

_19_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **1. ACCOUNTING POLICIES (CONTINUED)** 

## **Stock** 

Stocks are stated at the lower of cost and net realisable value.  Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and costs to be incurred in marketing, selling and distribution.  Cost is based on the cost of purchase on a first in, first out basis. Provision is made for obsolete, slow-moving or defective items where appropriate. 

## **Leases** 

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis.  Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term. 

## **Financial instruments** 

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs). 

The charity and group only have 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. Fixed assets are recorded at depreciated historical cost and all other assets and liabilities are recorded at costs which is their fair value. 

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.  Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.  Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. 

## **Pensions** 

For defined contribution schemes the amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the contributions payable in the year.  Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet. 

## **2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY** 

In the application of the Group’s accounting policies, which are described in note 1, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts 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 estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. 

The Trustees do not consider there are any critical accounting judgements or key sources of estimation uncertainty requiring disclosure. 

_20_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **3. ANALYSIS OF INCOME FROM DONATIONS AND GRANTS** 

|**Donations:**<br>Rent and rates in kind<br>Individual Donations<br>Corporate Sponsorship<br>Trusts & Foundations<br>**Grants:**<br>Cambridge City Council1<br>Canadian Commission2<br>Arts Council England3<br>Arts Council England – Cultural Recovery Fund4<br>Cambridgeshire County Council5<br>Future Arts Centres6<br>Arts Admin7<br>Arts Council England – Ambition For Excellence8<br>National Heritage Lottery Grant9<br>BBC Children in Need10<br>Paul Hamlyn Foundation (Take Two)11|**2022**<br>**£**<br>Unrestricted<br>Funds<br>105,840<br>70,480<br>5,853<br>-<br>**182,173**<br>-<br>-<br>649,146<br>368,871<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**1,018,017**<br>**1,200,190**|**2022**<br>**£**<br>Restricted<br>Funds<br>-<br>-<br>-<br>14,999<br>**14,999**<br>55,000<br>417<br>-<br>-<br>4,750<br>-<br>-<br>-<br>-<br>4,500<br>57,750<br>**122,417**<br>**137,416**|**2022**<br>**£**<br>Total<br>Funds<br>105,840<br>70,480<br>5,853<br>14,999<br>**197,172**<br>55,000<br>417<br>649,146<br>368,871<br>4,750<br>-<br>-<br>-<br>-<br>4,500<br>57,750<br>**1,140,434**<br>**1,337,606**|**2021**<br>**£**<br>105,840<br>46,906<br>3,510<br>31,137|
|---|---|---|---|---|
|||||**187,393**|
|||||27,500<br>-<br>649,146<br>358,613<br>2,165<br>12,000<br>29,188<br>24,091<br>2,663<br>5,500<br>-|
|||||**1,110,866**|
|||||**1,298,259**|



1. Community grant which supports the community and creative learning programmes. The grant is awarded annually. 

2. Grant to support marketing costs for Tamara Micner's _Old Friends_ 

3. National Portfolio Organisation triannual funding awarded up to 2023. 

4. Cultural Recovery Fund grant to support cultural organisations during COVID-19 pandemic. 

5. Grant to support youth music initiatives. 

6. Grant to support commissioning of _Here and Now_ -by Scottee and Friends 

7. Grant to support commissioning of _Love Letters to a Liveable Future_ by Metis 

8. Strategic fund to support Diverse Actions, a three-year initiative championing BAME artists and arts workers. 

9. Grant to support Cambridge Junction 30[th] year celebrations. 

10. Grant to support creative learning activity. 

11. Grant to support creative learning activity. 

2021 figures include restricted funds of £103,988 consisting of £42,069 restricted donations and £61,919 restricted grants. 

There are no unfulfilled conditions or other contingencies relating to the above grants. 

_21_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **4.         ANALYSIS OF INCOME FROM CHARITABLE ACTIVITIES** 

|**Unrestricted**<br>**funds**<br>**2022**<br>**£**<br>**_Earned income from performance, classes and public events:_**<br>Ticket sales<br>555,775<br>Event hire fees<br>140,201<br>Cloakroom sales<br>8,861<br>Creative learning sales<br>9,540<br>Other sales<br>122,001<br>**Total**<br>**836,378**|**Total**<br>**2022**<br>**£**<br>555,775<br>140,201<br>8,861<br>9,540<br>122,001<br>**836,378**|
|---|---|



|**2021– Comparative**<br>**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>**_Earned income from performance, classes and public events:_**<br>Ticket sales<br>22,542<br>Event hire fees<br>7,275<br>Cloakroom sales<br>Creative learning sales<br>510<br>Other sales<br>11,091<br>**Total**<br>**41,418**|**Total**<br>**2021**<br>**£**<br>22,542<br>7,275<br>510<br>11,091<br>**41,418**|
|---|---|



_22_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **5. ANALYSIS OF INCOME AND EXPENDITURE ON RAISING FUNDS** 

The wholly owned trading subsidiary, The Junction Promotions Limited, is incorporated in the United Kingdom (company number 03437774) and pays all of its profits to the charity under a deed of covenant. The Junction Promotions Limited operates the bars at the Cambridge Junction premises. A summary of the trading results is shown below: 

|**Turnover**<br>Cost of sales<br>Staff costs<br>Support costs (note 8)<br>**Net Profit**<br>Retained earnings at the beginning of the year<br>Deed of covenant/gift aid<br>**Retained in subsidiary**<br>**SUMMARY BALANCE SHEET**<br>**CURRENT ASSETS**<br>Stocks<br>Debtors<br>Cash at bank and in hand<br>**CREDITORS: amounts falling due**<br>**within one year**<br>**NET CURRENT ASSETS**<br>**NET ASSETS**<br>**CAPITAL**<br>Share capital<br>Retained earnings<br>**SHAREHOLDERS’ FUNDS**|**2022**<br>**£**<br>378,138<br>(176,402)<br>(25,339)<br>(53,772)<br>122,625<br>(9,065)<br>(113,560)<br>-<br>**2022**<br>**£**<br>23,707<br>1,082<br>603,484<br>628,273<br>(628,271)<br>2<br>2<br>2<br>-<br>2|**2021**<br>**£**<br>815<br>(4,398)<br>-<br>(7,750)<br>(11,333)<br>-<br>(11,333)<br>**2021**<br>**£**<br>6,170<br>2,412<br>381,171<br>389,753<br>(398,816)<br>(9,063)<br>(9,063)<br>2<br>(9,065)<br>(9,063)|
|---|---|---|



. 

_23_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **6. ANALYSIS OF INCOME FROM INVESTMENTS** 

||**2022**|**2021**|
|---|---|---|
||£|£|
|Bank interest|455|584|



## **7. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES** 

|**Cost of main performance and participation programme**<br>**Costs of projects, including arts development**<br>**Total**<br>**Cost of main performance and participation programme**<br>Artists’ fees and commissions<br>Licences<br>Security costs<br>Technical costs<br>Box Office Costs<br>Marketing costs<br>Property costs<br>Salaries<br>National insurance<br>Depreciation<br>Support costs (note 8)<br>**Costs of projects, including arts development**<br>Pru Project/Total Arts Film Festival<br>Staff Costs/Job Retention Scheme<br>Access The Arts Fund<br>PHF: Take Two<br>Canadian Commission re Old Friends<br>BBC CiN Act One<br>Other:<br>Building depreciation|**Unrestricted**<br>**funds**<br>**2022**<br>**£**<br>**Restricted**<br>**funds**<br>**2022**<br>**£**<br>2,067,359<br>55,000<br>119,994<br>310,907<br>**2,187,353**<br>**365,907**<br>560,796<br>26,486<br>22,964<br>-<br>79,855<br>-<br>69,906<br>-<br>29,646<br>-<br>44,034<br>600<br>311,558<br>-<br>431,936<br>26,751<br>42,506<br>1,163<br>14,022<br>-<br>460,135<br>-<br>**2,067,358**<br>**55,000**<br>-<br>52,103<br>119,994<br>-<br>-<br>10,932<br>-<br>13,288<br>-<br>417<br>-<br>10,000<br>-<br>224,167<br>**119,994**<br>**310,907**|**Total**<br>**2022**<br>**£**<br>2,122,359<br>430,901<br>**2,553,260**<br>587,282<br>22,964<br>79,855<br>69,906<br>29,646<br>44,634<br>311,558<br>458,687<br>43,669<br>14,022<br>460,135<br>**2,122,358**<br>52,103<br>119,994<br>10,932<br>13,288<br>417<br>10,000<br>224,167<br>**430,901**|
|---|---|---|



_24_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **7. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES (continued)** 

## **2021 – Comparative** 

|**Cost of main performance and participation programme**<br>**Costs of projects, including arts development**<br>**Total**<br>**Cost of main performance and participation programme**<br>Artists’ fees and commissions<br>Licences<br>Security costs<br>Technical costs<br>Marketing costs<br>Property costs<br>Salaries<br>National insurance<br>Depreciation<br>Support costs (note 8)<br>**Costs of projects, including arts development**<br>Pru Project/Total Arts Film Festival<br>Staff Costs/Job Retention Scheme<br>Arts Council England Diverse Actions<br>National Lottery 30thbirthday celebrations<br>Other:<br>Building depreciation|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>**Restricted**<br>**funds**<br>**2021**<br>**£**<br>1,015,958<br>27,500<br>559,172<br>293,180<br>**1,575,130**<br>**320,680**<br>245,714<br>16,378<br>9<br>-<br>(190)<br>-<br>1,537<br>-<br>14,469<br>-<br>251,122<br>-<br>155,579<br>10,644<br>26,093<br>478<br>8,388<br>-<br>313,237<br>-<br>**1,015,958**<br>**27,500**<br>-<br>26,413<br>559,172<br>-<br>-<br>39,937<br>-<br>2,663<br>-<br>224,167<br>**559,172**<br>**293,180**|**Total**<br>**2021**<br>**£**<br>1,043,458<br>852,352<br>**1,895,810**<br>262,092<br>9<br>(190)<br>1,537<br>14,469<br>251,122<br>166,223<br>26,571<br>8,388<br>313,237<br>**1,043,458**<br>26,413<br>559,172<br>39,937<br>2,663<br>224,167<br>**852,352**|
|---|---|---|



_25_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **8. ANALYSIS OF SUPPORT COSTS** 

|**_Support costs:_**<br>Recruitment<br>Staff training<br>Staff welfare<br>Travel and subsistence<br>General administration<br>Legal fees<br>Consultancy fees<br>Bank and credit card charges<br>Irrecoverable VAT<br>Bad and doubtful debts<br>Exchange rate variance<br>Wages and salaries<br>National insurance<br>Pension<br>**_Governance costs:_**<br>Auditor’s remuneration|**Main**<br>**performance**<br>**and**<br>**participation**<br>**programme**<br>**2022**<br>**£**<br>824<br>5,501<br>8,033<br>4,511<br>83,061<br>4,070<br>8,055<br>24,326<br>98,872<br>3,393<br>(36)<br>146,180<br>15,067<br>45,848<br>12,430<br>**460,135**|**Commercial**<br>**trading**<br>**operations**<br>**2022**<br>**£**<br>-<br>35<br>265<br>-<br>9,979<br>555<br>1,098<br>11,867<br>-<br>-<br>-<br>21,557<br>2,843<br>1,673<br>3,900<br>**53,772**|**Total**<br>**2022**<br>**£**<br>824<br>5,536<br>8,298<br>4,511<br>93,040<br>4,625<br>9,153<br>36,193<br>98,872<br>3,393<br>(36)<br>167,737<br>17,910<br>47,521<br>16,330|
|---|---|---|---|
||||**513,907**|



Governance and support costs are allocated to the different activities on the basis of a department allocation and the functions for which the resources are used. 

_26_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **8. ANALYSIS OF SUPPORT COSTS (continued)** 

## **2021 – Comparative** 

|**_Support costs:_**<br>Recruitment<br>Staff training<br>Staff welfare<br>Travel and subsistence<br>General administration<br>Legal fees<br>Consultancy fees<br>Bank and credit card charges<br>Irrecoverable VAT<br>Bad and doubtful debts<br>Exchange rate variance<br>Wages and salaries<br>National insurance<br>Pension<br>**_Governance costs:_**<br>Auditor’s remuneration|**Main**<br>**performance**<br>**and**<br>**participation**<br>**programme**<br>**2021**<br>**£**<br>-<br>3,937<br>1,664<br>184<br>48,253<br>4,208<br>225<br>7,618<br>40,613<br>(1,947)<br>(137)<br>139,868<br>14,437<br>45,814<br>8,500<br>**313,237**|**Commercial**<br>**trading**<br>**operations**<br>**2021**<br>**£**<br>-<br>-<br>-<br>-<br>3,985<br>-<br>-<br>520<br>-<br>-<br>-<br>-<br>-<br>-<br>3,245<br>**7,750**|**Total**<br>**2021**<br>**£**<br>-<br>3,937<br>1,664<br>184<br>52,238<br>4,208<br>225<br>8,138<br>40,613<br>(1,947)<br>(137)<br>139,868<br>14,437<br>45,814<br>11,745|
|---|---|---|---|
||||**320,987**|



Governance and support costs are allocated to the different activities on the basis of a department allocation and the functions for which the resources are used. 

## **9. NET EXPENDITURE FOR THE YEAR** 

||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|**This is stated after charging:**|||
|Depreciation of tangible fixed assets:|||
|Owned|238,189|232,554|
|Fees payable to the charity’s auditor for audit|12,430|8,500|
|Fees payable to the charity’s auditor for other services to the|||
|group:|||
|The audit of the charity’s subsidiary|3,900|3,245|



_27_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **10. STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL** 

|**The average monthly number of employees was:**<br>Commercial trading<br>Main performance and participation programme<br>Projects including arts development<br>Support<br>**The aggregate staff costs were as follows:**<br>Wages and salaries<br>Social security costs<br>Pension costs|**2022**<br>**No**<br>9<br>62<br>-<br>2<br>73<br>970,466<br>62,530<br>47,521<br>1,080,517|**2021**<br>**No**<br>-<br>65<br>1<br>2<br>68<br>**£**<br>875,731<br>55,514<br>46,159<br>977,404|
|---|---|---|



No Group employees had emoluments, excluding pension contributions but including benefits in kind, that were in excess of £60,000 in either the current year or preceding year. 

The key management personnel of the parent Charity and its wholly owned subsidiary, The Junction Promotions Ltd are listed on page 11.  The total remuneration (including pension contributions and employer’s NI) of the key management personnel for the year totalled £114,727 (2021: £111,406). 

## **Trustees’ Remuneration** 

No trustees received remuneration or travel and subsistence expenses during the current or prior year. The Group holds Charity Management Liability Insurance at a cost of £1,234 (2021: £2,200) plus 12% Insurance Premium Tax making £1,383 (2021: £2,464) in total. 

_28_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **11. TANGIBLE FIXED ASSETS** 

|**Group and charity**<br>**Cost**<br>At 1 April 2021<br>Additions<br>At 31 March 2022<br>**Depreciation**<br>At 1 April 2021<br>Charge for the year<br>At 31 March 2022<br>**Net book value**<br>At 31 March 2022<br>At 31 March 2021<br>**12.**<br>**FIXED ASSET INVESTMENTS**<br>**Charity**<br>**_Shares in subsidiary undertakings_**<br>At 1 April 2021 and 31 March 2022|**Long term**<br>**leasehold**<br>**property**<br>**£**<br>**Fixtures and**<br>**fittings**<br>**£**<br>5,738,137<br>593,902<br>-<br>26,107<br>5,738,137<br>620,009<br>3,772,055<br>579,421<br>224,167<br>14,022<br>3,996,222<br>593,443<br>**1,741,915**<br>**26,566**<br>**1,966,082**<br>**14,481**|**Total**<br>**£**<br>6,332,039<br>26,107<br>6,358,146<br>4,351,476<br>238,189<br>4,589,665<br>**1,768,481**<br>**1,980,563**<br>**£**<br>2|
|---|---|---|



The fixed asset investment comprises 100% of the issued ordinary share capital of The Junction Promotions Limited, a company incorporated in the United Kingdom and registered in England and Wales. The Junction Promotions Limited (Company Registration No. 03437774) is the main trading arm, in support of the Charity. See balance sheet at note 5. 

|**13.**|**STOCKS**|||
|---|---|---|---|
||**Group**|**2022**|**2021**|
|||**£**|**£**|
||Bar and catering stock|23,707|6,170|



There is no material difference between the balance sheet value of stocks and their replacement cost. 

_29_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **14. DEBTORS** 

|**Debtors falling due within one year:**<br>Trade debtors<br>Amounts due from subsidiary undertakings<br>Prepayments and accrued income|**Group**<br>**2022**<br>**£**<br>**2021**<br>**£**<br>38,386<br>6,854<br>-<br>-<br>111,530<br>139,464<br>**149,916**<br>**146,318**|**Charity**<br>**2022**<br>**£**<br>**2021**<br>**£**<br>38,386<br>5,524<br>597,930<br>394,365<br>110,449<br>138,382<br>**746,765**<br>**538,271**|**Charity**<br>**2022**<br>**£**<br>**2021**<br>**£**<br>38,386<br>5,524<br>597,930<br>394,365<br>110,449<br>138,382<br>**746,765**<br>**538,271**|
|---|---|---|---|
||||**538,271**|



## **15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Trade creditors<br>Other taxation and social security<br>Deferred ticket income<br>Other creditors<br>Accruals and deferred income|**Group**<br>**2022**<br>**£**<br>**2021**<br>**£**<br>129,539<br>122,092<br>42,665<br>13,811<br>297,537<br>248,981<br>27,755<br>12,892<br>115,993<br>44,559<br>**613,489**<br>**442,335**|**Charity**<br>**2022**<br>**£**<br>**2021**<br>**£**<br>106,661<br>121,060<br>42,665<br>13,811<br>297,537<br>248,981<br>27,755<br>12,892<br>108,532<br>41,140<br>**583,150**<br>**437,884**|**Charity**<br>**2022**<br>**£**<br>**2021**<br>**£**<br>106,661<br>121,060<br>42,665<br>13,811<br>297,537<br>248,981<br>27,755<br>12,892<br>108,532<br>41,140<br>**583,150**<br>**437,884**|
|---|---|---|---|
||||**437,884**|



## **16. DEFERRED TICKET INCOME RECONCILIATION** 

|Balance at 1 April 2021<br>Amount deferred in the year<br>Amount released in the year<br>Balance as at 31 March 2022|**2022**<br>£<br>248,981<br>970,427<br>(921,871)<br>**297,537**|**2021**<br>**£**<br>184,133<br>121,127<br>(56,279)<br>**248,981**|
|---|---|---|



_30_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **17. MOVEMENTS OF FUNDS** 

4 

|<br>**Unrestricted funds:**<br>General reserves<br>**Unrestricted funds total**<br>**Designated funds:**<br>Repair and renewal fund<br>Remuneration contingency<br>Website Optimisation Fund<br>International Projects<br>Philanthropy Fund<br>Utilities Reserve<br>Cultural Recovery Fund<br>**Designated funds total**<br>**_Unrestricted and designated funds total_**<br>**Restricted funds:**<br>Building redevelopment<br>Tickets in advance reserve<br>Cambridge City Council<br>Canadian Commission<br>Access The Arts Fund<br>Paul Hamlyn Foundation (Take Two)<br>Red Hill<br>BBC Children in Need<br>Total Arts<br>**Restricted funds total**<br>**TOTAL FUNDS**|**At 1 April**<br>**2021**<br>**£**<br>332,164<br>**332,164**<br>81,975<br>28,398<br>12,000<br>-<br>43,855<br>-<br>72,154<br>**238,382**<br>**_570,546_**<br>1,811,174<br>120,000<br>-<br>-<br>10,932<br>-<br>-<br>5,500<br>80,403<br>**2,028,009**<br>**2,598,555**|**Income**<br>**£**<br>**Expenditure**<br>**£**<br>2,535,155<br>(2,442,866)<br>**2,535,155**<br>**(2,442,866)**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**-**<br>**-**<br>**_2,535,155_**<br>**_(2,442,866)_**<br>-<br>(224,167)<br>-<br>-<br>55,000<br>(55,000)<br>417<br>(417)<br>-<br>(10,932)<br>57,750<br>(8,288)<br>5,000<br>(5,000)<br>4,500<br>(10,000)<br>14,749<br>(52,103)<br>**137,416**<br>**(365,907)**<br>**2,672,571**<br>**(2,808,773)**|**Transfers**<br>**£**<br>**At 31 March**<br>**2022**<br>**£**<br>(56,719)<br>367,734<br>**(56,719)**<br>**367,734**<br>37,500<br>119,475<br>21,690<br>50,088<br>9,000<br>21,000<br>40,000<br>40,000<br>-<br>43,855<br>40,000<br>40,000<br>(72,154)<br>-<br>**76,036**<br>**314,418**<br>**_19,317_**<br>**_682,152_**<br>-<br>1,587,007<br>-<br>120,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>49,462<br>-<br>-<br>-<br>-<br>(19,317)<br>23,732<br>**(19,317)**<br>**1,780,201**<br>**-**<br>**2,462,533**|
|---|---|---|---|



Transfers between funds represent reallocation of income or expenditure to funds, while remaining consistent with any restriction in relation to these funds. The transfer of £19,317 out of Total Arts is for costs previously unallocated in the year. 

**General funds** represent the funds generated from voluntary, charitable and trading operations of the charity to support the charity on a day-to-day basis and to fulfil the objectives of the charity. 

## **Designated funds:** 

_**Repair and renewal fund**_ represents the amount allocated for small capital repair, replacement, and renewal. _**Remuneration contingency**_ represents an amount allocated for salary and wage increases. _**Website Optimisation Fund**_ represents an amount allocated to redesign the company’s website _**International Projects**_ represents an amount allocated to international projects (UK-Australia) delayed due to COVID-19 

_**Philanthropy Fund**_ represents an amount allocated for Development department salaries. _**Utilities Reserve**_ represents an amount allocated to mitigate the impact of increasing utilities costs _**Cultural Recovery Fund**_ represents a fund to support cultural organisations forced to restrict activities because of COVID-19. 

_31_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **17. MOVEMENTS OF FUNDS (continued)** 

## **Restricted funds:** 

_**Building Redevelopment**_ represents grants and costs related to the redevelopment of the Cambridge Junction site. 

_**Tickets in advance reserve**_ represents a grant from Arts Council England to reimburse ticket purchasers due to event cancellations, postponements or other unforeseen events. 

_**Cambridge City Council**_ represents funds received from Cambridge City Council to support the community engagement programmes. 

_**Canadian Commission**_ represents funds received towards artistic projects. 

_**Access The Arts Fund**_ represents funds raised by Total Arts participants to support cultural access for young people with complex needs. 

_**Paul Hamlyn Foundation (Take Two)**_ represents a multi-year grant supporting projects with young people 

_**BBC Children in Need represents a grant towards costs of a project supporting local young people. Red Hill**_ represents a grant towards costs of a project supporting local young people _**. Total Arts**_ represents funds received to support work for and by disabled young people. 

## _**Analysis of movement in free reserves**_ 

|**At 1 April**<br>**2021**<br>**£**<br>Unrestricted funds<br>**570,546**<br>Less - tangible fixed assets<br>**(169,390)**<br>Less - designated funds:<br>Repair and renewal fund<br>**(81,975)**<br>Remuneration contingency<br>**(28,398)**<br>Website Optimisation Redesign<br>**(12,000)**<br>Philanthropy Fund<br>**(43,855)**<br>International Projects<br>**-**<br>Utilities Fund<br>**-**<br>Cultural Recovery Fund 1<br>**(72,154)**<br>**Free reserves**<br>**162,774**|**Income**<br>**£**<br>2,535,155<br>-<br> <br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**2,535,155**|**Expenditure**<br>**£**<br>**Transfers**<br>**£**<br>(2,442,866)<br>19,317<br>(12,084)<br>-<br>-<br>(37,500)<br>-<br>(21,690)<br>-<br>(9,000)<br>-<br>-<br>-<br>(40,000)<br>-<br>(40,000)<br>-<br>72,154<br>**(2,442,866)**<br>**(56,719)**|**At 31**<br>**March**<br>**2022**<br>**£**<br>**682,152**<br>**(181,474)**<br>**(119,475)**<br>**(50,088)**<br>**(21,000)**<br>**(43,855)**<br>**(40,000)**<br>**(40,000)**<br>**-**<br>**186,260**|
|---|---|---|---|



_32_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **17. MOVEMENT OF FUNDS (continued)** 

**2021 - Comparative** 

||**At 1 April**||||||||**At 31 March**|
|---|---|---|---|---|---|---|---|---|---|
||**2020**||**Income**||**Expenditure**||**Transfers**||**2021**|
||**£**||**£**||**£**||**£**||**£**|
|**Unrestricted funds:**||||||||||
|General reserves|193,521||<br>1,237,088||<br>(1,028,106)||(70,339)||332,164|
|**Unrestricted funds total**|**193,521**||<br>**1,237,088**||<br>**(1,028,106)**||**(70,339)**||**332,164**|
|**Designated funds:**||||||||||
|Repair and renewal fund|61,975|||-||-|20,000||81,975|
|Remuneration contingency|16,398|||-||-|12,000||28,398|
|Website Optimisation Fund|12,000|||-||-||-|12,000|
|Philanthropy Fund|43,855|||-||-||-|43,855|
|Job Retention Scheme||-|<br>559,172||<br>(559,172)|||-|-|
|Cultural Recovery Fund 1||-||-||-|72,154||72,154|
|**Designated funds total**|**134,228**||<br>**559,172**||<br>**(559,172)**||**104,154**||**238,382**|
|**Restricted funds:**||||||||||
|Building redevelopment|2,035,340|||-|<br>(224,167)|||-|1,811,174|
|Tickets in advance reserve|120,000|||-||-||-|120,000|
|Cambridge City Council||-|<br>27,500||<br>(27,500)|||-|-|
|Heritage Lottery 30thbirthday project||-|<br>2,663||<br>(2,663)|||-|-|
|BBC Children in Need||-|<br>5,500|||-||-|5,500|
|ACE Catalyst Evolve|33,816|||-||-|(33,815)||-|
|Access The Arts Fund||-|<br>10,932|||-||-|10,932|
|Total Arts|73,514||<br>33,302||<br>(26,413)|||-|80,403|
|ACE Diverse Actions|7,851||<br>32,086||<br>(39,937)|||-|-|
|**Restricted funds total**|**2,270,521**||<br>**111,983**||<br>**(320,680)**||**(33,815)**||**2,028,009**|
|**TOTAL FUNDS**|**2,598,270**||<br>**1,908,243**||<br>**(1,907,958)**|||**-**|**2,598,555**|
|**of movements in free reserves**||||||||||
||**At 1 April**||||||||**At 31 Mar**|
||**2020**||**Income**||**Expenditure**||**Transfers**||**2021**|
||**£**||**£**||**£**||**£**||**£**|
|Unrestricted funds|**327,749**||1,796,260||(1,587,278)||33,815||**570,546**|
|Less - tangible fixed assets|**(169,997)**||-||607|||-|**(169,390)**|
|Less - designated funds:||||||||||
|Repair and renewal fund|**(61,975)**||-||-||(20,000)||**(81,975)**|
|Remuneration contingency|**(16,398)**||-||-||(12,000)||**(28,398)**|
|Website Optimisation Redesign|**(12,000)**||-||-|||-|**(12,000)**|
|Philanthropy Fund|**(43,855)**||-||-|||-|**(43,885)**|
|Job Retention Scheme|**-**||559,172||(559,172)|||-|**-**|
|Cultural Recovery Fund 1|**-**||-||-||(72,154)||**(72,154)**|
|**Free reserves**|**23,524**||**2,355,432**||**(2,145,843)**||**(73,969)**||**162,774**|



## **Analysis of movements in free reserves** 

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**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **18. ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS** 

|**Group**<br>**Unrestricted**<br>**funds**<br>**£**<br>**Designated**<br>**funds**<br>**£**<br>Tangible fixed assets<br>181,474<br>Current assets<br>799,749<br>314,418<br>Current liabilities<br>(613,489)<br>**At 31 March 2022**<br>**367,734**<br>**314,418**<br>**2021– Comparative**<br>**Group**<br>**Unrestricted**<br>**funds**<br>**£**<br>**Designated**<br>**funds**<br>**£**<br>Tangible fixed assets<br>169,390<br>-<br>Current assets<br>673,273<br>166,228<br>Current liabilities<br>(442,335)<br>-<br>**At 31 March 2021**<br>**400,328**<br>**166,228**|**Restricted**<br>**funds**<br>**£**<br>1,587,007<br>193,194<br>**1,780,201**<br>**Restricted**<br>**funds**<br>**£**<br>1,811,174<br>216,836<br>-<br>**2,028,010**|**Total**<br>**2022**<br>**£**<br>1,768,481<br>1,307,361<br>(613,489)<br>**2,462,533**<br>**Total**<br>**2021**<br>**£**<br>1,980,564<br>1,056,337<br>(442,335)<br>**2,598,556**|
|---|---|---|



## **19. EMPLOYEE RETIREMENT BENEFITS** 

The group operates a defined contribution retirement benefit scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable to the scheme in the year and amounted to £45,848 (2021: £46,159). Contributions totalling £4,381 (2021: £3,887) were payable to the scheme at the balance sheet date and are included in creditors. 

## **20. FINANCIAL COMMITMENTS** 

## **Operating lease commitments** 

The estimated annual value of rent and rates waived by Cambridge City Council in respect of the Cambridge Junction site is £105,840 (2021: £105,840), which is included in donations income and property costs. 

## **21. RELATED PARTY TRANSACTIONS** 

## **Other related party transactions** 

In the year ended 31 March 2022, trustees and associated companies made payments totalling £22,447 (2021: £1,693) to Cambridge Junction for donations, corporate memberships and sponsorship. 

The total remuneration for key management personnel for the period is set out in note 10. The company has taken advantage of the exemption in section 33 of FRS 102 ‘Reduced disclosure framework’ not to disclose transactions and balances with its wholly owned subsidiary, The Junction Promotions Limited.  There are no other related party transactions. 

_34_ 



**JUNCTION CDC LIMITED (t/a Cambridge Junction)** 

## **NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022** 

## **22. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES** 

|Net(expenditure)/income for the year<br>Adjustments for:<br>Depreciation charge<br>Interest income<br>Operating cash flow before movement in working<br>capital<br>(Increase)/decrease in stock<br>(Increase)/decrease in debtors<br>Increase/(decrease) in creditors<br>**Net cash provided by operating activities**|**Group**<br>**2022**<br>**£**<br>**2021**<br>**£**<br>(136,202)<br>285<br>238,189<br>232,555<br>(455)<br>(584)<br>101,532<br>232,255<br>(17,537)<br>4,668<br>(4,929)<br>15,396<br>172,485<br>14,052<br>251,551<br>266,372|**Group**<br>**2022**<br>**£**<br>**2021**<br>**£**<br>(136,202)<br>285<br>238,189<br>232,555<br>(455)<br>(584)<br>101,532<br>232,255<br>(17,537)<br>4,668<br>(4,929)<br>15,396<br>172,485<br>14,052<br>251,551<br>266,372|
|---|---|---|
|||232,255<br>4,668<br>15,396<br>14,052|
|||266,372|



## **23. ANALYSIS OF CHANGES IN NET DEBT** 

|Cash at bank and in hand<br>Net funds|**31 March**<br>**2021**<br>**£**<br>907,839<br>**907,839**|**Cash flow**<br>**£**<br>225,899<br>**225,899**|**31 March**<br>**2022**<br>**£**<br>1,133,738|
|---|---|---|---|
||||**1,133,738**|



## **24. OPERATING LEASE COMMITMENTS** 

Total future minimum lease payments under non-cancellable operating leases are as follows: 

|**Expiry date:**<br>Not later than 1 year<br>Later than 1 but not later than 5 years|**2022**<br>**£**<br>210<br>-<br>210|**2021**<br>**£**<br>2,152<br>210|
|---|---|---|
|||2,362|



## **25. CONTINGENT LIABILITY** 

The company is part of a group VAT registration and therefore is potentially liable for VAT liabilities of its trading subsidiary.   As at 31 March 2022 the company had a creditor relating to value added tax of £22,503 (2021- £743). 

_35_