DANCE_IHAYAMI - Accounts

The trustees present their report and financial statements for the year ended 31 December 2018.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Dance Ihayami is Scotland’s Indian classical dance company, dedicated to Indian classical dance in its purest form. Founded in 2003 by Priya Shrikumar, the company is based in Edinburgh and works throughout Scotland. Our vision is to enrich the Scottish national repertoire of dance with outstanding, meaningful and striking work, and with our education programme to engage people of all ages and abilities in Indian dance as audience, artists and participants.

OUR COMPANY HAS THREE MAIN STRANDS:

• Professional dance company – creating and touring productions both nationally and internationally

• Ihayami School – running three terms of Indian music, dance, yoga and martial arts classes in Edinburgh, Glasgow, Dundee, Livingston and Falkirk

• Community engagement programme – making Indian art forms more accessible to a wider audience, and using Indian arts as a tool of engagement of more vulnerable groups

Our community engagement programme brings Indian dance to local communities, where we seek to work with hard to reach groups, in particular children and young people, and elderly people, to develop skills and raise aspiration, creating imaginative and artistically inspiring projects for people of all ethnic origins, backgrounds and abilities. They take place in a wide range of settings - including schools, youth clubs, residential homes, hospitals and community centres, and are led by highly skilled and experienced professional artists.

In addition, and in furtherance thereof but not otherwise the Company shall seek:

• To offer training and education in music, dance and other forms of Indian culture and in particular, South Indian culture.

• To present high quality performances and productions.

• To promote co-operation between Indian and Western artists, art forms and the public.

• To develop innovative ways to attract non-participants and stimulate demand for learning from under-represented groups.

• To support education, research and training in all forms of Indian arts and to create a working environment for people of different cultures to meet and exchange theory and practice.

• To promote the application of new technologies to traditional art forms and create opportunities for the development of associated skills.

• To collaborate with cultural organisations in the cultivation, conservation and promotion of dance, customs, music and other Indian art forms.

• To increase young people's interest, access and participation in Indian art and culture.

• To seek funding from grant making bodies, organisations and other commercial or non-commercial sponsors in the pursuit of the objectives.

• To exercise the aforesaid objects and powers in Scotland, India and in any place in the world.

The trustees have paid due regard to guidance issued by the Scottish Charity Regulator in deciding what activities the charity should undertake.

After the very successful UTSAV, many different performances were delivered by the dancers and students. Some of the important ones are:

• Ullapool Dance Festival

• Scottish Indian Arts Forum

Throughout the year many workshops took place around Scotland. In particular sessions for the carers are still continuing at lifecare and have proven to benefit the participants.

We continued to provide classes across Scotland during the three terms. These were extremely successful and provided a creative outlet for the communities.

The new unique performance Ras Lila was created during the year by the artistic director where new physical movements in Bharatanatyam were experimented with. Introductory performances have been well received.

The school continued to have pure classical dance training and maintained grading for authenticity.

A surplus of £533 (2017 : deficit £11,576) arose during the year, leaving a deficit in unrestricted reserves of £7,401 carried forward at the year-end (2017 : deficit £3,904).

Reserves policy and going concern

Unrestricted funds represent the free reserves of the company arising from past operational results. The company continues to look forward to the future with confidence, with the continued participation in its plans for future years, as set out earlier in this report. The balance of restricted fund reserves as at 31 December 2018 was £10,178 (2017 - £6,148).

Principal funding sources

The principal funding sources for the Year under review were Creative Scotland, Awards for All, Foundation Scotland, Women's Fund for Scotland and Dr Guthrie's Association. We thank everyone who has contributed to the development of Dance Ihayami, and for their continued report.

Investment policy

Aside from retaining a prudent amount in reserves each year most of the charity’s funds are to be spent in the short term so there are few funds for long term investment. Therefore, the directors, having regard to the liquidity requirements of operating the charity and to the reserve policy, have operated a policy of keeping available funds in an interest bearing bank account.

Risk management

The Directors have conducted a review of the major risks to which the charity is exposed. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, advocates, partners (people with learning difficulties) and volunteers. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity.

Plans for the future

We are currently in receipt of local events funding of £5,000 which will be delivered between July and October collaborating with a wide variety of organisations and culminating in a performance at the Pentland Community Centre.

For 2019, multiple funding applications are in the process of being considered and hope to bring in significant grants to build on the previous success of the charity.

Background

Founded in 2003 by Priya Shrikumar, the company is based in Edinburgh and works throughout Scotland and beyond, regularly collaborating with different art forms and media. The work is rooted in strong classical Indian technique, with an edgy contemporary style. Dance Ihayami’s vision is to enrich the Scottish national repertoire of dance, and engage people of all ages and backgrounds in Indian classical and contemporary dance as audience, artists and participants.

Founder, Artistic Director, chief choreographer and principal dancer Priya Shrikumar leads our international company of dancers who have an eclectic mix of backgrounds, experience and training.

Governing Document

Dance Ihayami is a registered charity, incorporated on 4 August 2003. The company was established under a Memorandum of Association which established the objects and powers of the company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Appointment of trustees

The company is always looking for new trustees with the relevant skills, who will positively contribute to Dance Ihayami.

Trustee induction and training

New members to Dance Ihayami’s board of directors receive an induction pack, and have a series of meetings with the artistic director and other board members.

Reference and Administrative Information

Charity registration number    SC034810

Company registration number    SC253720

Registered Office            C/O Thomson Cooper Accountants, 22 Stafford Street

Edinburgh,EH3 7BD

Our Advisors

Independent Examiner        Fiona Haro, B Com (Hons), CA

Thomson Cooper Accountants    22 Stafford Street, Edinburgh, EH3 7BD

Bankers                The Co-Operative Bank, PO Box 250, Skelmersdale, WN8 6WT

Directors and Trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year end were as follows:

Dance Ihayami: Trustees and Directors

E MacInnes

J Reid

S Shrikumar

M Hopper

S Millar (appointed 25 September 2018)

Dance Ihayami: Key management personnel

K Watts                Dance Development Officer (resigned 18 January 2019)

P Shrikumar            Artistic Director

The trustees, who are also the directors of Dance Ihayami for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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;

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

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity 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 charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The trustees' report was approved by the Board of Trustees.

I report on the financial statements of the charity for the year ended 31 December 2018, which are set out on pages 6 to 17.

The charity’s trustees, who are also the directors of Dance Ihayami for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.

In connection with my examination, no matter has come to my attention:

to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2018.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

Dance Ihayami is a private company limited by guarantee incorporated in Scotland. The registered office is 22 Stafford Street, Edinburgh, EH3 7BD.

The financial statements have been prepared in accordance with the charity's [governing document], the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

Expenditure and irrecoverable VAT

Expenditure is recognised on an accrual basis as a liability is incurred. The company is not registered for VAT and accordingly irrecoverable VAT is charged against the category of resources expended to which it relates.

• Costs of generating funds are those costs incurred in attracting voluntary income and the costs incurred in trading activities that raise funds.

• Charitable expenditure comprises those costs incurred by the charitable company in the delivery of its activities and services to its beneficiaries. It includes both the direct costs and indirect costs necessary to support these activities.

• Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charitable company and include the audit fees and costs linked to its strategic management.

• Costs relating to a particular activity are allocated directly; others are apportioned on an appropriate basis e.g. estimated usage, staff costs by time spent.

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, and governance costs which support the charity. The basis on which each support cost has been allocated is set out in the associated note.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Legal status

The organisation is a charitable company limited by guarantee and has no share capital. In the event of the company being would up, members are required to contribute an amount not exceeding £1.

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Grant Income

Performance and Workshop Fees

Performance & Education

Dancers' fees

Costume costs

Exam fees

Venue hire

Equipment and materials

Performance & Education

Direct allocation

Membership

Direct allocation

Insurance

Direct allocation

Sundries

Direct allocation

Travel and subsistence

Direct allocation

Marketing and publicity

Direct allocation

PO Box

Direct allocation

Accountancy

Direct allocation

Storage hire

Direct allocation

Interest paid

Direct allocation

The average monthly number of employees during the year was:

The key management personnel comprise of the Artistic Director Priya Shrikumar and the Dance Development Officer, Karen Watts. The total employment costs for the key personnel was £57,022 (2017 : £56,745), there were no additional benefits of the key management personnel of the charity. The key personnel were reimbursed expenses of £5,926 (2017 : £3,260).

Creative Scotland

Funding was provided towards the cost of Ras Lila, Dance Ihayami's new Indian classical dance work.

CORRA

Funding was provided for the furtherance of Dance Ihayami’s outreach programme.

Children in Need

Funding was provided for the furtherance of Dance Ihayami’s outreach programme.

Robertson Trust

Funding was provided for the furtherance of Dance Ihayami’s outreach programme.

CEC Grant

Funding was provided for the furtherance of Dance Ihayami’s outreach programme.

Awards for All

Funding was provided for the furtherance of Dance Ihayami’s outreach programme.

Foundation Scotland

Funding was provided to contribute to the Ihayami Indian Arts Project.

Women's Fund for Scotland

Funding was provided towards the cost of running a programme of workshops and courses in 2018.

Dr Guthrie's Association

Funding was provided towards the cost of running a programme of workshops and courses in 2018.

Incoming resources

Resources expended

Unrestricted

Restricted

There were no disclosable related party transactions during the year (2017 - none).