Registered number:
Charity number:
273345
(A Company Limited by Guarantee)
for the year ended
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Contents
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Reference and Administrative Details of the Company, its Trustees and Advisers
for the year ended 31 August 2019
Page 1
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Trustees' report
for the year ended 31 August 2019
The Trustees present their annual report together with the audited financial statements of the Company for the year 1 September 2018 to 31 August 2019. 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 2015) as amended by Update Bulletin 1 (effective January 2015).
Since the Company 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.
Objectives and activities
a. Strategies for achieving objectives
Royal Exchange Theatre Trustees Limited is governed by its Memorandum and Articles of Association and is registered as a charity with the Charity Commission. The charity is engaged principally in the promotion of, education in and encouragement of the arts by holding properties for use by the Royal Exchange Theatre Company Limited. New trustees are recruited and appointed as and when required in order to maintain or enhance the balance of skills and expertise of the Board and all new Trustees are given induction into the Royal Exchange.
Achievements and performance
a. Review of activities
Income for 2019 represents the gain on the disposal of a property of £109,761 (2018: £nil).
The net incoming resources for the year amounted to £41,388 (2018: net outgoing resources of £71,030).
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Financial review
(continued)
b. Reserves policy
It is the policy of the charity to hold reserves in its unrestricted income funds which have not yet been designated for any particular purpose. At 31 August 2019 the reserves in the unrestricted income funds amounted to £143,469 (2018: £33,708).
Restricted funds relate to freehold and leasehold properties acquired for use by the Royal Exchange Theatre. At 31 August 2019 these funds amounted to £296,661 (2018: £365,034). Principal funding The Trustees are satisfied that the charity’s assets attributable to restricted funds are available and adequate to fulfil its obligations in relation to those funds.
Structure, governance and management
a. Governing document
Royal Exchange Theatre Trustees Limited, whose registered office is situated at St Ann’s Square, Manchester is a charitable company limited by guarantee and governed by its Memorandum and Articles of Association. The company has no share capital and is limited by guarantee, whereby each member undertakes to contribute £1 to the assets of the company in the event of a winding up.
b. Trustees
The trustees in office during the year are listed below:
Ben Caldwell Jennifer Raffle Caroline Roberts-Cherry (resigned 16 April 2019) All trustees are members of the charity
c. Public benefit
The Trustees have taken into consideration the Charity Commission guidance on public benefit.
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Company for the purposes 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. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
∙
select suitable accounting policies and then apply them consistently;
∙
observe the methods and principles of the Charities SORP (FRS 102);
∙
make judgements and accounting estimates that are reasonable and prudent;
∙
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
Auditors
The auditors, Hurst Accountants Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Royal Exchange Theatre Trustees Limited
We have audited the financial statements of Royal Exchange Theatre Trustees Limited
(the 'charitable company') for the year ended
In our opinion the financial statements:
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.
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
∙
the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Royal Exchange Theatre Trustees Limited (continued)
The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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
∙
the financial statements are not in agreement with the accounting records and returns; or
∙
certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
∙
the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Royal Exchange Theatre Trustees Limited (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.
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.
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
Statutory Auditors
Chartered Accountants
Lancashire Gate
21 Tiviot Dale
Stockport
SK1 1TD
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Statement of financial activities (incorporating income and expenditure account)
for the year ended 31 August 2019
Page 8
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Registered number:
1093363
Balance sheet
as at 31 August 2019
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Notes to the financial statements
for the year ended 31 August 2019
Royal Exchange Theatre Trustees Limited is a company limited by guarantee. The members of the company 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
After making appropriate enquiries, the trustees have a reasonable expectation the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
The lease for the Royal Exchange Theatre which is used by Royal Exchange Theatre Company Limited expires in June 2022.
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
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.
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. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Notes to the financial statements
for the year ended 31 August 2019
2.
Accounting policies (continued)
A review for impairment of fixed assets carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are not recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities incorporating Income and Expenditure Account.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following basis.
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount the company anticipates it will pay to settle the debt or the amount it has received as advanced payment for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Notes to the financial statements
for the year ended 31 August 2019
2.
Accounting policies (continued)
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical areas of judgement: Accruals Accruals are based on management expectations, taking into account various factors relevant to each individual item. The charity recognised no accruals at 31 August 2019 (2018: £Nil) Depreciation The charity exercises judgement in estimating the useful economic life of its tangible fixed assets.
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Notes to the financial statements
for the year ended 31 August 2019
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Notes to the financial statements
for the year ended 31 August 2019
6.
Analysis of expenditure on charitable activities
(continued)
The Auditors' remuneration amounts to an auditor fee of £500 (2018-£500) and is borne by Royal Exchange Theatre Company Limited. No other fees were payable to the auditors in respect of non-audit services in the year (2018: £nil).
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Notes to the financial statements
for the year ended 31 August 2019
Page 15
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Notes to the financial statements
for the year ended 31 August 2019
Page 16
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Notes to the financial statements
for the year ended 31 August 2019
Page 17
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Royal Exchange Theatre Trustees Limited
(A Company Limited by Guarantee)
Notes to the financial statements
for the year ended 31 August 2019
14.
Analysis of net assets between funds
(continued)
The Arts Council of England has a charge over one leasehold property of this company in relation to any amounts due to that body in respect of grants made by Arts Council of England to the Royal Exchange Theatre
At 31 August 2019, no amounts fall due to be repaid in respect of the grants.
Royal Exchange Theatre Company Limited is the charity's controlling party by virtue of the charity being a branch of Royal Exchange Theatre Company Limited. The consolidated financial statements of this company are available to the public and may be obtained from St Ann's Square, Manchester, M2 7DH.
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