The trustees present their report and financial statements for the year ended 31 March 2023.
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 and articles, 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) (effective 1 January 2019)".
Founded as West Lothian Youth Theatre in 1990, Firefly Arts is a Scottish Charity with a long history of providing youth theatre, film-making, creative writing, music, dance and visual arts activity for children and young people aged 5 to 25 years across West Lothian.
Firefly’s workshop, school, community and training programmes provide young people with a safe, supportive environment to explore their world, challenge themselves, build creative and resilient futures. We specialise in developing transformative and inclusive arts experience for young people who are socially and economically marginalised, and all Firefly activity is underpinned by the following five key principles:
1. Creativity: Firefly are committed to generating fun, creative and life-transforming arts experience for all.
2. Young People: While many Firefly projects run in successful partnership with adult groups, our core purpose is to transform and enrich young lives.
3. Place: Firefly programmes are rooted in West Lothian, with commitment to, and in partnerships with, our local communities.
4. Partnership: Firefly’s strategic and community partners play a key role in our capacity to engage effectively with hard-to-reach groups, new participants and the wider community.
5. Equality: Firefly activity is committed to addressing social, economic and cultural inequality.
The lingering effects of the covid pandemic, particularly on the mental health and isolation of many children and young people across West Lothian was very apparent this year. The services we provide were invaluable in supporting these young people.
Helen Rashad, our newly appointed CEO provided focus and stability to the organisation throughout the year, initiating effective development sessions for both staff and Board.
We embarked upon a major consultation project looking at marketing strategy, planning, messaging, fundraising, digital collateral, and having a recognisable visual identity. This culminated in a new logo, improves marketing, and a fabulous Firefly at 33 event where past and present employees, board members and participants were brought together.
Some highlights of our programme:
An extensive programme of community based workshops
School based contract and project work
Invited to participate in the National Festival of Youth Theatre with our show When This is Over
Performed When This is Over in a showcase event on the main auditorium at Howden Park Centre
Site Specific Winter show in Armadale leading to new regular workshops in the town.
Our National Lottery funded PACT project
The Creative Scotland funded ARC project
HYPE continues to be a rewarding partnership with Council
Our Voyagers where chosen to take part in the Positive Stories festival In Perth
We Rebels continued to challenge and empower.
We continued to develop and improve our local and national partnerships throughout the year. Firefly continues to be well regarded and well placed to support children and young people through these challenging times of austerity.
Firefly completed the financial year with a fund balance of £320,351, made up of £127,895 in restricted funds, and £192,456 in unrestricted funds. In the light of ongoing economic uncertainty, the accounts reflect an unrestricted reserve of £99,602 (equating to 6 months operating costs) and a designated fund of £92,854 to meet continuity and match funding commitments.
Risk Management
Firefly trustees regularly review major risk to which the charity is exposed and are satisfied that systems have been established to mitigate those risks. The principal risks and uncertainties facing the charity relate to future funding, and this is managed by preparation of budgets and regular review by the Directors.
Governance
Firefly Arts Limited is a charitable company limited by guarantee. Formerly known as West Lothian Youth Theatre it was incorporated on 15 March 1990. The Company was established under a Memorandum of Association which established the objects and the powers of the charitable company and is governed under its Articles of Association. These documents were updated in line with legislation and best practice with the change of company name. Firefly Arts Ltd is registered with the office of the Scottish Charity Regulator (OSCR).
The company is governed by a Board of Directors, who meet 6 times a year, this year consisting of ten members plus a number of observers from our major funder, West Lothian Council.
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:
Recruitment and retention of Board Members is planned to secure a range of skills amongst the Board of Directors to ensure the aims and objectives of Firefly are well informed and fulfilled. All Board Members are encouraged to become familiar with the practical work of the charity, and supported to attend Board development training sessions offered by external providers.
None of the Directors has any beneficial interest in the company. All of the Directors are members of the company and guarantee to contribute £1 in the event of a winding up.
I report on the financial statements of the charity for the year ended 31 March 2023, which are set out on pages 4 to 14.
The charity's trustees (who are also directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006, and they consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under section 44(1)(c) of the Act and to state whether particular matters have come to our attention.
My examination was carried out in accordance with the Statement of Standards for Reporting Accountants and Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, 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 accounts.
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 accounts which accord with the accounting records and comply with the accounting requirements of Regulation 8 of the 2006 Accounts Regulations and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;
have not been met; or
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts 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.
Firefly Arts Limited is a private company limited by guarantee incorporated in Scotland. The registered office is Howden Park Centre, Howden, Livingston, West Lothian, EH54 6AE.
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) (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, 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.
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.
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.
Charitable activity expenditure includes all expenditure directly incurred in furthering the objectives of the charity.
Governance costs consists of the costs of financial services, accounts preparation, mandatory legal and professional fees, and any other expenditure incurred in compliance with legal requirements of the charity.
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).
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Core Grants
Rent and venue hire
Travel costs
Materials
Freelancers
Publicity and Marketing
Other project costs
Rent
Insurance
Repairs
Postage and stationery
Telephone
Travel expenses
Sundries
Subscriptions
Bank charges
Bookkeeper
During the year no trustees received remuneration in respect of consultancy services (2022 - £nil). These transactions were at arms length and on normal commercial terms. None of the other trustees (or any persons connected with them) received any remuneration during the year.
The average monthly number of employees during the year was:
The key management personnel of the charity, comprise the Chief Executive Officer. The total employee benefits of the key management personnel of the charity were £33,734 (2022: £43,470).
Creative Scotland Small Anthems is an amount received for a youth music initiative project.
The funds in respect of William Syson Foundation are towards production activity costs in respect of the project AlterEgo.
Creative Scotland/Open Fund is an amount received for Ingenious Nation a project with partnership, environmental and intergenerational aspect.
Creative Scotland/Youth Arts Access Fund is an amount received for WareHouse a site-responsive performance, digital and installation project.
Creative Scotland/Culture Collective is an amount received for West Lothian ARC for coordinator and artist costs for cultural provision partnership programme.
Funding was received from First Port/Adapt and Thrive for IT and communications improvements.
YS Pact is an amount received for a youth arts and media skills programme to equip young people with the confidence and skills to speak out and take action on issues that affect them and their communities.
The charity has designated an amount of £92,854 as a Continuity Fund.
There were no disclosable related party transactions during the year (2022 - none).