THEATR_CLWYD_DEVELOPMENT_ - Accounts

The trustees present their report and financial statements for the year ended 31 March 2020.

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 constitution, the Companies Act 2006 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 2019).

The principal objects of the charity are to promote, maintain, and improve and advance the education of the public in general, but particularly in Wales, in the art of drama and other arts by encouraging and fostering the study, performance, knowledge, understanding, appreciation, and development of drama and other arts through the medium of drama productions, educational programmes and other activities in particular but without prejudice to the generality of the foregoing, which are associated with or provided by Theatr Clwyd and its partners.

The main activities undertaken to further the charity's purpose for the public benefit will be fundraising events,

static donation points including digital giving, direct and digital marketing. These will both provide opportunities

for the public to become invested supporters of the Theatre and become aware about community engagement

and the wider impact the Theatre has on the cultural landscape, health, wellbeing and society through the arts

and partnership.

During the year the work of the Trust has been concentrated on developing potential resources of funding.

The trustees have paid due regard to guidance issued by the Charity Commission on Public Benefit in deciding what activities the charity should undertake.

Philanthropic and sponsorship income raised from private sources including individuals, corporates and trusts & foundations. Individual income will be in the form of regular giving, major gifts and legacy gifts. The focus is on capital funding towards the capital redevelopment programme between 2017 and 2021 as well as establishing a sustainable regular giving programme to provide revenue funding in the long term.

The Trustees have considered the level of reserves they wish to retain, appropriate to the charity’s needs, based on the level of financial commitments that will enable the charity to continue to fulfill its charitable objectives. The Trustees consider that reserves of £1,000 would satisfy this objective. The level of free reserves at the year end were £16,789 (2019: £16,652).

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

In the year ended 31 March 2020 the Trust had a surplus of £82,267 (2019 - deficit £32,215) incoming resources over resources expended.

Total voluntary income received this year was £212,752 (2019 - £109,064).

The total fund balance at the year end was £149,492 (2019 - £67,225), of which £16,789 (2019 - £16,652) were unrestricted funds.

The company was incorporated and commenced its activities on 30 March 2004. The charity is registered as a charitable company limited by guarantee and was set up on 13 July 2004.

The company changed its name on 12th December 2019 from Theatr Clwyd Trust to Theatr Clwyd Development Trust Ltd.

The charity is constituted and is a registered charity number 1104878. The board is governed by its Memorandum and Articles of Association dated 18 February 2004.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Members of the Board of Trustees are appointed or removed by resolution of the Members of the Company in General Meeting. Members of the Board of Trustees retire by rotation at the Annual General Meeting and maybe re-elected.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

New trustees are given a briefing on the work of the Board and the individual projects of the Board as part of their induction. When appropriate, training sessions are open to the Board members where the training is considered useful to their role.

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

I report to the trustees on my examination of the financial statements of Theatr Clwyd Development Trust Limited (the charity) for the year ended 31 March 2020.

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

the financial statements do not accord with those records; or

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report 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 March 2020.

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.

Theatr Clwyd Development Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Raikes Lane, Mold, CH7 1YA.

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 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) (effective 1 January 2019)". 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. 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.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

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.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; it is normally upon notification of the interest paid or payable by the bank.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Charitable expenditure comprises those costs incurred by the charity in the delivery of all its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the accountants' fees and costs linked to strategic management of the charity.

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.

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

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.

Grants receivable

Grants paid

Legal and professional

Accountancy fees

Bank charges

Theatr Clwyd Development Trust Ltd works with the Theatr Clwyd to further the objects of the charity.

During the year, income received from Theatr Clwyd was £14,688 (2019: £16,528) and total expenditure paid was £130,214 (2019: £140,970).

Included within creditors is an amount in the sum of £26,187 (2019: £35,970) owed to Theatr Clwyd.

Included within debtors is an amount in the sum of £14,688 (2019: £16,528) owed from Theatr Clwyd.