Company registered number:
Charity registered number:
1108613
(A Company Limited by Guarantee)
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
CONTENTS
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The Trustees present their Annual Report together with the audited financial statements of the Charity for the 1 April 2021 to 31 March 2022. The Annual Report serves the purposes of both a Trustees' Report and a Directors' Report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Arcola Theatre Production Company is also known as Arcola Theatre. Public performances restarted in the main (indoor) theatre in May 2022 and have continued to run throughout the summer and Autumn months. There are plans ahead to open the smaller Studio Two theatre in early 2023.
Objectives and activities
a. Policies and objectives
Charitable objectives
The objectives for which the Charity is formed are to promote, maintain, improve and advance the education and appreciation of the public in the Arts and Sciences. In pursuing these objects, the Trustees have considered the Charity Commission's guidance on public benefit, including that related to fee charging. Vision Arcola Theatre's vision is of a genuinely radical theatre constantly reinventing itself to respond to, interpret and have relevance to an ever changing contemporary Britain.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
b. Strategies for achieving objectives
Mission
Arcola Theatre's mission is to imagine and build a theatre that flourishes within a cultural and scientific centre for its diverse local community. One that builds new audiences, generates its own powerful productions, and creates a home for the very best of UK and international theatre companies to visit; whilst simultaneously developing, demonstrating and deploying technologies for a sustainable future.
c. Activities undertaken to achieve objectives
In putting the above mission into action we have four major areas of activity (discussed in more detail below), which are professional theatre, talent development, promotion of environmental sustainability and venue operations.
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
Objectives and activities
(continued)
d. Main activities undertaken to further the Charity's purposes for the public benefit
The main activities undertaken can be described in more detail as follows:
Off West End Professional Theatre This activity includes the producing and receiving of theatre shows in our 200 and 100 seat studios, plus selected off-site locations, with a strong focus on socially and politically relevant works and diversity of voices. Talent Development This is an extensive programme that includes working with specific groups such as young people, older people, Turkish speaking, BAME and LGBTQ communities, as well as the development of specific skills areas such as new writing, facilitator training and general skills development. Environmental Sustainability We continue to make environmental considerations central to our venue operations, and to disseminate our learning. Venue Operation Comprising the wide range of work required to provide a cultural and social space for the local community as well as rehearsal and performance spaces for a wide variety of professional and community uses.
Achievements and performance
a. Key performance indicators
Planned turnover for 2021/22 was £908k with an unrestricted deficit of £109k, reflecting the reduced capacity to generate income, and the investment in Arcola Outside necessary to continue operations during Covid-19 restrictions.
Income for the year was £987,851 (2021 - £1,407,838). This included £207,661 from charitable activities (2021 - £18,279) and £80,645 of donations (2021 - £101,386). Earned income was 21% (2021 - 1%). Arts Council England regular (NPO) funding provided £307,290 (2021 - £307,290) (31% of income, 2021 - 22%). Due to on-going restrictions caused by the pandemic, financial support was received in the form of the second round of the DCMS ‘Culture Recovery Fund’ (£148,080) and the Job Retention Scheme (£102,248 - ending 30 September 2021). Expenditure for the year was £1,320,542 (2021 - £977,108) including £121,853 (2021 - £121,853) of depreciation funded by allocation to the capital fund. Direct spending on professional theatre amounted to £680,162 (2021 - £601,638), with a further £265,615 (2021 - £204,003) spent on support costs. Direct spending on Talent Development amounted to £17,204 (2021 - £16,092) with a further £13,872 (2021 - £12,873) spent on support costs. The year-end unrestricted funds of £245,101 (2021 - £467,991) include fixed assets of £150,714, leaving £94,387 as free reserves. This represents 38% of the target level of £250k.
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
Achievements and performance
(continued)
b. Review of activities
For the past 22 years Arcola Theatre has been widely lauded for its ambition and quality; striving always for the highest artistic quality in a programme which is relevant to its diverse local community, as well as being a notable contribution to the wider UK (and international) arts ecosystem.
In light of COVID19, we have reframed our ambition to focus on creating an organisation which is able to deliver a compelling programme in a manner which is resilient in the face of great uncertainty and likely financial austerity. Reopening Arcola Outside The new, outdoor performance space, Arcola Outside was completed in June 2021, ready for the programmed Today I’m Wiser festival. As an outdoor venue, it has excellent airflow and its larger footprint allows for more seats with social distancing than can be achieved in our main building. Designed by award winning theatre designer, Jon Bausor, and built by our freelance venue technicians, the space was celebrated on its opening by audiences and critics alike with FT saying Arcola’s ‘fresh-air vision spells hope for the future’ (Sarah Hemming). Arcola Outside has planning permission to continue for a further two years which will provide an exciting new space in the warmer months, to capitalise on the renewed interest in outdoor entertainment created by COVID. Today I’m Wiser Festival After the hiatus caused by Covid-19, in June 2021 Today I’m Wiser was launched: Arcola’s outdoor festival, inspired by the present and fuelled by our collective desire for change. Following a wide call-out for proposals, the festival supported and platformed emerging intersectional artists to create work post-pandemic: 64% of the artists and creative teams identify as Black and Global Majority; 30% as LGBTQ; 33% as disabled or with a long term health condition. Across six months, Arcola Outside played host to 38 shows from 31 visiting companies with over 10k tickets booked. Two in-house productions were programmed in the festival, demonstrating our commitment to world theatre and new writing: - A modern adaptation of French comedy, The Game of Love and Chance by Pierre de Marivaux, directed by Jack Gamble (four week run with 69% average capacity) was nominated for the Off West End Award for Best Company Ensemble and received 4 and 5 star reviews. The Hackney Gazette called it ‘A glorious opening production... an absolute belter’. - A world premiere of Broken Lad, supporting freelance playwright, Robin Hooper and directed by Richard Speir, had an average 60% capacity across a three week run and made “great use of the theatre's new tented space” (The Stage). For Today I’m Wiser, Arcola partnered with Hackney Council to deliver Arcola for Free, offering 300 free theatre tickets to those who are disadvantaged and marginalised in our local community. We worked with local partners, Immediate Theatre, Routes (supporting refugee and asylum seeking women), Age UK Hackney, Hackney CVS and Black Books Matter, to involve underserved communities in high-quality culture and develop an ongoing relationship. Flyers and leaflets were also distributed in the local area, such as in community centres, to reach those unconnected with our partners. In addition, 100 free tickets were distributed to NHS key workers through Tickets for Good. Grimeborn 2021 This year we produced our biggest Grimeborn project to date, Wagner’s Die Walkure at Hackney Empire. The increased audience capacity of the 1,200 seat auditorium allowed us to develop new audiences while building a lasting relationship with our closest neighbouring venue. Developed by the creative team behind Das Rheingold,
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
Achievements and performance
(continued)
the show received rave reviews and provided a second instalment of the ‘Grimeborn Ring Cycle’.
Aside from Die Walkure, the Grimeborn 2021 festival was staged at Arcola Outside with a mix of established and up-and-coming opera companies playing to audiences averaging 74% capacity. The festival is now well established in the opera calendar and critically acclaimed (Fourth in ‘The top 10 classical music performances of 2021’ - Fiona Maddocks, The Guardian). Renovation of Arcola Main Building As it had been nearly 10 years since the last major renovation programme, during the winter period, we undertook improvements to our main building including progressing with the install of a new fire alarm system, refurbishment to the dressing rooms and improving the visitor journey from the street into the foyer, with a new levelled floor which now provides much safer access for our audience. Arcola Participation Arcola Participation delivered a reduced engagement program in 2021/22 due to the impacts of Covid 19 and the lockdowns imposed on such activities. Arcola provided 200 places in our community engagement project for this period. Over this period we were able to engage with the three Arcola Youth Theatre groups ages 9-16 years and the Arcola 50+ community theatre company, and hosted 162 audience members to Covid secure outdoor performances. In January 2022 we were awarded £14,671 from Westfield Foundation for Future London, Westfield East Bank, Creative Futures Fund, to run the summer 2022 mental health project.
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
Financial review
a. Going concern
The financial statements have been prepared on a going concern basis. The Trustees have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment.
Arts Council of England investment and future activity In November 2022 the charity received the news that the theatre would remain as a National Portfolio Organisation (NPO) and receive regular Arts Council of England (ACE) financial support for the next three successive years, at the same investment level as previous years. Plans for the year ahead include: The presentation of a world class, international programme of diverse and socially engaged theatre presenting a mix of in-house shows and visiting companies in Studio 1 alongside a season of new work & emerging companies in Studio 2, with enhanced access provision The return of the successful opera festival Grimeborn to take place for eleven weeks over the summer months. A new programme of Associate Companies to support migrant-led companies reach their full potential. Offering rehearsal space, mentoring and networking; enhanced skills in professional theatre making, participation & outreach and funding & finance. Community companies - currently Mental Health Company, Turkish Speaking company, Arcola 50+ with a new refugee company introduce in 2023 (in partnership with refugee specialists). Companies will stage their work at Arcola Outside and on tour. Popular Arcola Youth Theatre will run current 3 youth theatre groups plus add two extras - Young AYT (ages 9-12) & Younger AYT (ages 7-11). Sessions run weekly during term time. Each group will devise and perform in Studio 2 twice a year. Arcola Academy - professional level training for 16-25 year olds - prioritise NEET applicants - incl. training in lighting, set, stage design, SM, acting, directing & writing - will devise and perform 2 touring plays for local schools Based on these assessments and having regard to the resources available to the Charity, the Trustees have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the Annual Report and financial statements.
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
Financial review
(continued)
b. Reserves policy
The Trustees believe the most appropriate level of free reserves required by the Charity to sustain it in the event of the Charity not receiving grants and other incoming resources is £250,000. This will not allow standard-scale productions to be staged and would require skeleton (cost-neutral) programming.
The year-end unrestricted funds of £245,101 (2021 - £467,991) include fixed assets of £150,714, leaving £94,387 as free reserves. This represents 38% of the target level of £250k. Part of the drop in unrestricted funds is due to increasing and converting the prior year designated fund (of £123,594) to a doubtful debt provision against funds advanced to Arcola Theatre Limited (primarily to support staff). This measure has been taken in light of the slow and uncertain recovery of the hospitality industry in the wake of the COVID pandemic. Whilst free reserves are well below the target level, risk will be mitigated by tight control of fixed costs (particularly staffing) and conservative budgeting of variable costs (namely show-costs). Trustees aim to rebuild reserves over the next 3 years as the theatre industry recovers from the COVID pandemic.
c. Material investments policy
The Charity has no financial investments. Under the Memorandum and Articles of Association, the Charity has the power to invest in any way the Trustees wish.
d. Principal funding
Arcola Theatre is a National Portfolio Organisation of Arts Council England, providing circa 30% of income.
There are no other significant funders, with the majority of the balance of funds being earned from charitable activities.
e. Pricing policy
Tickets are priced to maximise revenues without losing access for all. This was achieved through competitive pricing, with a wide range of discounts for target and under-represented groups. Charges are applied for Participation programme participants with bursaries for those less able to pay.
f. Fundraising
The Trustees have considered the implications of the Charities (protection and social investment) Act 2016 in relation to fundraising activities. The Act aims to protect the public, particularly the vulnerable, from inappropriate fundraising approaches. The primary scope of the Act is "commercial participators" and "professional fundraisers", which refers to commercial organisations engaged by larger charities to engage in direct fundraising from individuals via for example mail, phone and face to face. Since Arcola Theatre does not engage any of these types of organisation there is no direct impact. We have however reviewed our in-house activities in the spirit of the Act and concluded that there are no issues which we need to address.
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
Structure, governance and management
a. Constitution
Arcola Theatre Production Company Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.
b. Methods of appointment or election of Trustees
The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association.
c. Organisational structure and decision-making policies
The Board of Trustees administers the Charity. Board normally meets quarterly, addressing all aspects of the charitable operations including programming, development, quality & safety, finance and audit.
Until restructuring in November 2021, an Executive Director was appointed by the Trustees to manage the day to day operations of the Charity. From December 2021 the organisation was led by the Artistic Director and Executive Producer, with a new General Manager role introduced in February 2022. To facilitate effective operations, the Executive Director, and subsequently the Executive Producer, had/have delegated authority, within terms of delegation provided by the Trustees, for operational matters including finance, employment and artistic performance related activity. Charitable activities are structured into departments, each having a Manager, working to a Business Plan which includes detailed plans for all business activities. These plans cascade organisational objectives and Key Performance Indicators through departments to individual staff job descriptions. Plans are developed with input from all staff, Trustees, artists, participants, volunteers and advisors. Plans and associated budgets are reviewed and approved by the Board of Trustees through regular meetings. Additional advice and oversight is provided via Arts Council England National Portfolio management systems.
d. Policies adopted for the induction and training of Trustees
Upon declaration of their interest to be a Trustee, a new Trustee receives the Charity's governing documents, most recent Financial Report and Management Accounts. They meet with the Chair and Senior Management Team for briefing on the organisation and the responsibilities of Trustees.
New Trustees are provided with the Charity's governing documents, minutes of previous meetings and current business plans. They meet the Chair and senior managers for briefing on the objectives, values, ethos, programme and day-to-day activities of the organisation. New Trustees and existing Trustees are provided with up-to-date information on the responsibilities of Trustees and associated best practice, drawing resources provided by Charity Commission and other professional organisations supporting charities.
e. Pay policy for key management personnel
Senior staff pay is approved by Trustees. Rates of pay are benchmarked against peer organisations.
f. Financial risk management
The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
Plans for future periods
With the severity of the COVID-19 pandemic declining in 2022, we were able to reopen the main theatre studio in May 2022, whilst continuing with a seasonal programme in the new Arcola Outside space.
The financial impact of COVID-19 and other global events in 2022 resulted in a slow and volatile recovery of audience attendance in 2022 which, like many others, has put the organisation under significant financial pressure. Going forwards we will operate with a reduced staff team and carefully risk-managed artistic programme, which includes more visiting companies than pre-pandemic. We will also consolidate the Theatre Bar operations with the Theatre front of house team to realise efficiencies. Fortunately we were successful in securing Arts Council NPO funding for the period 2023-26 and thus will deliver a plan of work agreed with and supported by Arts Council
Small company exemptions
The Trustees Report has been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:
∙
so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
∙
that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Approved by order of the members of the Board of Trustees and signed on their behalf by:
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 MARCH 2022
Approved by order of the members of the Board of Trustees and signed on its behalf by:
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARCOLA THEATRE PRODUCTION COMPANY
We have audited the financial statements of Arcola Theatre Production Company
(the 'charity') for the year ended
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARCOLA THEATRE PRODUCTION COMPANY (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
∙
the Trustees' Report has been prepared in accordance with applicable legal requirements.
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
∙
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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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 Trustees' Report and from the requirement to prepare a Strategic Report.
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARCOLA THEATRE PRODUCTION COMPANY (CONTINUED)
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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 Auditors' 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:
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Review of actual and potential litigation claims;
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Enquiries of entity staff to identify any instances of non-compliance with laws and regulations;
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Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
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Reviewing minutes of meetings of those charged with governance and
∙
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
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, 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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARCOLA THEATRE PRODUCTION COMPANY (CONTINUED)
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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
2 London Wall Place
London
EC2Y 5AU
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
REGISTERED NUMBER:
05242988
BALANCE SHEET
AS AT 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
REGISTERED NUMBER:
05242988
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2022
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Arcola Theatre Production Company is a Charitable Company limited by guarantee and is registered with the Charity Commission (Charity Registered Number 1108613) and Registrar of Companies (Company Registered Number 05242988) incorporated in England and Wales.
The address of the registered office is given in the Charity information on page 1 of these accounts. The Members of the Charity are the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per Member of the Charity.
2.
Accounting policies
The financial statements are presented in Sterling which is the functional currency of the Charity and rounded to the nearest £1. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.
Accounting policies (continued)
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the Charity's accounting policies.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.
Accounting policies (continued)
Tangible fixed assets costing £
500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.
Accounting policies (continued)
Debtors - trade and other debtors (including accrued income) are basic financial instruments and a debt instruments measured at amortised cost as detailed in Note 13. Prepayments are not financial instruments. Cash at bank - is classified as a basic financial instrument and is measured at cost. Liabilities - trade creditors, accruals and other creditors will be classified as financial instruments and are measured at amortised cost as detailed in Notes 14 and 15. Taxation and social security are included in the financial instruments disclosure. Deferred income is not deemed to be a financial liability, as in the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument.
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates or assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
5.
Income from charitable activities
(continued)
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
8.
Analysis of expenditure by activities
(continued)
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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ARCOLA THEATRE PRODUCTION COMPANY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge for the year was £14,140 (2021 - £14,644) and at the year end £1,470 (2021 - £1,335) was payable to the fund and have been included in Creditors falling due within one year - Other creditors.
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