Eltham Little Theatre Limited - Charities report - 22.2

REGISTERED COMPANY NUMBER: 00410481 (England and Wales)

REGISTERED CHARITY NUMBER: 208710

ELTHAM LITTLE THEATRE LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

Page

Trustees' report

1

to

3

Independent examiner's report

4

Statement of financial activities

5

Balance sheet

6

to

7

Notes to the financial statements

8

to

16

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2023. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The purposes of the charity are as follows;

- Providing a home for the arts of the theatre, drama, music, the cinema and any cognate of allied arts, to make these available to the public and to develop the cultural welfare of the community.

- Maintaining the venue and providing facilities for the theatrical mounting of productions

Significant activities

The charity undertakes various fundraising activities in order to raise additional income to keep ticket prices to a minimum.

In order to achieve the objectives of the charity the trustees have employed the following strategies;

- presenting a range of in-house productions which can be enjoyed by wide population of the local community.

- offering opportunities for people to get involved with the theatre as volunteers in a wide range of activities

- making the theatre available to other theatrical organisations for a hire charge, which allows essential maintenance of the theatre.

Through our strategies we endeavour to encourage all within the local community to take part in and benefit from activities.

Public benefit

In reviewing our objectives for the current year the trustees have considered the Charity Commission's guidance on public benefit and fee charging. The theatre relies significantly on the income from ticket sales to cover its operating costs and maintenance of the theatre, however the trustees give careful consideration to those on low incomes when setting the level of ticket prices, concessions and all off peak discounts.

The Charity also undertakes various fundraising activities in order to raise additional income to keep ticket prices to a minimum.

Volunteers

The charity is totally dependant on the services of volunteers except for the clerical officer and cleaner.

FINANCIAL REVIEW

Investment policy and objectives

It is the policy of the charity to utilise a majority of the incoming resources in the short term for the furtherance of the charity's objectives, as a result there are a few funds for new long term investment. The charity does own the freehold of the theatre which ties up most of the available reserves of the charity. This is maintained to a high standard in order to preserve and enhance the value of this investment.

Results

During the year theatre production income amounted to £62,217 an increase of £1,974 from 2022. The surplus for the year amounted to £9,244 (2022: £8,854) after deducting depreciation charges of £38,093 (2022: £38,759).

Going concern

The trustees consider the charity to be a going concern due to the fact there is approximately £119,000 in the bank.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Eltham Little Theatre Limited is a company Limited by Guarantee (company number 410481) and a registered charity (charity number 208710). The company was incorporated on 14 May 1946 under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association, as amended 22 June 1949, 20 June 1988, 23 October 2000, 24 September 2003 and 3 October 2005.

Recruitment and appointment of new trustees

The directors of the charitable company (''the Charity'') are its trustees for the purpose of Charity Law and are represented by the Chairman, Treasurer and Secretary of the board of management. As set out in the Articles of Association, if there is at any time a vacancy in the membership a new member may be appointed by the members in a general meeting.

Organisational structure

The Charity's board of management is currently made up of 9 members who meet regularly and are responsible for deciding the strategic policy and direction of the charity.

There is a scheme of delegation in place whereby the day to day responsibility for the charity and the responsibility for ensuring the long term objectives are met rests with the Chairman, Treasurer and Secretary.

Induction and training of new trustees

Most new members of the board of management are already familiar with the practical work of the charity, having been involved with it for a number of years. They also undergo a short training session whereby they are familiarised with; the obligations of the board of management, the main documents which set out the operational framework of the charity including the memorandum and article, the current financial position and future plans and objectives.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

00410481 (England and Wales)

Registered Charity number

208710

Registered office

Wythfield Road

Eltham

London

SE9 5TG

Trustees

I C Hamilton Retired (resigned 20.10.22)

Mrs J M Sims Retired

Mrs C Williams Educationalist (resigned 20.11.23)

J F Goodwin Retired (appointed 20.10.22)

Company Secretary

J E Shepherd

Independent Examiner

Paul Allan BSocSc FCA

Berringers LLP

Chartered Accountants

Lygon House

50 London Road

Bromley

Kent

BR1 3RA

Members of Board of Management

J Sims Chair

I Hamilton

C Williams Secretary

J Shepherd

J Goodwin Treasurer

A Ingram

D Hinchley-Robson

D Barefoot

P Martin

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 9 March 2024 and signed on its behalf by:

Mrs J M Sims - Trustee

Independent examiner's report to the trustees of Eltham Little Theatre Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 July 2023.

Responsibilities and basis of report

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

Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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:

1.	accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts 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

4.

the accounts 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 accounts to be reached.

Paul Allan BSocSc FCA

Berringers LLP

Chartered Accountants

Lygon House

50 London Road

Bromley

Kent

BR1 3RA

9 March 2024

2023

2022

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

10,521

-

10,521

25,536

Charitable activities

5

Subscriptions

2,390

-

2,390

2,295

Charitable activities

118,147

-

118,147

106,133

Other trading activities

3

36,589

-

36,589

25,833

Investment income

4

1,012

-

1,012

19

Total

168,659

-

168,659

159,816

EXPENDITURE ON

Charitable activities

6

Charitable activities

94,694

-

94,694

87,645

Other

8

64,721

-

64,721

63,317

Total

159,415

-

159,415

150,962

NET INCOME

9,244

-

9,244

8,854

RECONCILIATION OF FUNDS

Total funds brought forward

1,231,621

-

1,231,621

1,222,767

TOTAL FUNDS CARRIED FORWARD

1,240,865

-

1,240,865

1,231,621

2023

2022

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

13

1,118,736

-

1,118,736

1,148,811

CURRENT ASSETS

Stocks

14

990

-

990

450

Debtors

15

15,488

-

15,488

59

Cash at bank and in hand

16

118,918

-

118,918

102,073

135,396

-

135,396

102,582

CREDITORS

Amounts falling due within one year

17

(13,267

)

-

(13,267

)

(19,772

)

NET CURRENT ASSETS

122,129

-

122,129

82,810

TOTAL ASSETS LESS CURRENT LIABILITIES

1,240,865

-

1,240,865

1,231,621

NET ASSETS

1,240,865

-

1,240,865

1,231,621

FUNDS

18

Unrestricted funds

1,240,865

1,231,621

TOTAL FUNDS

1,240,865

1,231,621

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2023 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each 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 charitable company.

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

The financial statements were approved by the Board of Trustees and authorised for issue on 9 March 2024 and were signed on its behalf by:

J M Sims - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

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 the 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 revision and future periods where the revision affects both current and future periods.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Going concern

The trustees have reasonable expectation, giving consideration to the worldwide coronavirus pandemic (COVID 19), that the charity has adequate resources to continue for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

Straight line over 50 years

Improvements to property

-

10% - 20% on cost

Plant and machinery

-

7.5% on reducing balance

Fixtures and fittings

-

7.5% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

2.	DONATIONS AND LEGACIES

2023

2022

£

£

Donations and grants

10,521

25,536

3.	OTHER TRADING ACTIVITIES

2023

2022

£

£

Bar, coffee, confectionary and merchandising income

36,589

25,833

4.	INVESTMENT INCOME

2023

2022

£

£

Investment income

1,012

19

5.	INCOME FROM CHARITABLE ACTIVITIES

2023

2022

Activity

£

£

Other income

Subscriptions

2,390

2,295

Theatre productions

Charitable activities

62,217

60,243

Other income

Charitable activities

55,930

45,890

120,537

108,428

6.	CHARITABLE ACTIVITIES COSTS

Direct

Costs

£

Charitable activities

94,694

7.	SUPPORT COSTS

Governance

Management

Finance

costs

Totals

£

£

£

£

Other resources expended

14,741

2,752

9,135

26,628

Support costs, included in the above, are as follows:

Management

2023

2022

Other

resources

Total

expended

activities

£

£

Insurance & licenses

10,295

10,646

Postage, Stationary & Phone

3,977

5,306

Sundries

283

437

Travel & subsistence

186

107

14,741

16,496

Finance

2023

2022

Other

resources

Total

expended

activities

£

£

Bank charges

2,752

2,117

Governance costs

2023

2022

Other

resources

Total

expended

activities

£

£

Accountancy and legal fees

9,135

6,845

8.

OTHER

2023

2022

£

£

Depreciation

38,093

38,759

Support costs

26,628

24,558

64,721

63,317

9.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2023

2022

£

£

Depreciation - owned assets

38,095

38,757

10.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 July 2023 nor for the year ended 31 July 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 July 2023 nor for the year ended 31 July 2022.

11.	STAFF COSTS

2023

2022

£

£

Wages and salaries

10,661

9,879

10,661

9,879

The average monthly number of employees during the year was as follows:

2023

2022

Administration

1

1

No employees received emoluments in excess of £60,000.

12.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

25,536

-

25,536

Charitable activities

Subscriptions

2,295

-

2,295

Charitable activities

106,133

-

106,133

Other trading activities

25,833

-

25,833

Investment income

19

-

19

Total

159,816

-

159,816

EXPENDITURE ON

Charitable activities

Charitable activities

87,645

-

87,645

Other

63,317

-

63,317

Total

150,962

-

150,962

NET INCOME

8,854

-

8,854

RECONCILIATION OF FUNDS

Total funds brought forward

1,222,767

-

1,222,767

TOTAL FUNDS CARRIED FORWARD

1,231,621

-

1,231,621

13.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

COST

At 1 August 2022

45,000

1,229,469

124,411

Additions

-

8,069

1,233

VAT adjustment

-

(7,387

)

-

At 31 July 2023

45,000

1,230,151

125,644

DEPRECIATION

At 1 August 2022

36,000

253,253

66,509

Charge for year

900

24,697

4,359

At 31 July 2023

36,900

277,950

70,868

NET BOOK VALUE

At 31 July 2023

8,100

952,201

54,776

At 31 July 2022

9,000

976,216

57,902

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 August 2022

156,009

17,167

1,572,056

Additions

649

5,456

15,407

VAT adjustment

-

-

(7,387

)

At 31 July 2023

156,658

22,623

1,580,076

DEPRECIATION

At 1 August 2022

65,005

2,478

423,245

Charge for year

6,866

1,273

38,095

At 31 July 2023

71,871

3,751

461,340

NET BOOK VALUE

At 31 July 2023

84,787

18,872

1,118,736

At 31 July 2022

91,004

14,689

1,148,811

The VAT adjustment is a result of the charity becoming VAT registered in 2019 and making pre-VAT registration claims.

14.

STOCKS

2023

2022

£

£

Stocks

990

450

15.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

208

59

VAT

7,324

-

Prepayments and accrued income

7,956

-

15,488

59

16.	CASH AT BANK AND IN HAND

2023

2022

Total

Total

funds

funds

£

£

Cash in hand

1,016

419

Bank account no. 1

2,522

3,621

Bank account no. 2

72,370

55,371

Bank deposit account

43,010

42,662

Total

118,918

102,073

17.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade creditors

10,200

16,713

Social security and other taxes

188

7

VAT

-

55

Other creditors

625

1,408

Accruals and deferred income

2,254

1,589

13,267

19,772