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 the notes to the Financial Statements and comply with the Charity's Memorandum and Articles of Association, 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).
Tobacco Factory Arts Trust (TFAT) operates under the working name of Tobacco Factory Theatres (TFT) and its principal charitable object is the advancement of the education of the public in the appreciation and understanding of performing and visual arts in all of their forms. TFAT achieves this objective through the operation and management of its theatre spaces supported by its education activities.
In shaping its objectives for the year and planning its activities, the trustees have considered the Charity Commission guidance on public benefit, including the guidance on public benefit and fee charging. The theatre relies on grants and the income from fees and charges to cover its operating costs. In setting the level of fees, charges and concessions, the trustees give careful consideration to the accessibility of the theatre for those on low incomes.
The strategies employed to achieve these aims and objectives are to:
present a broad range of theatre productions for the enjoyment and education of its local community and further afield:
concentrate on involving young people in the arts to help encourage a culture in which different age ranges play a complementary part:
offer opportunities for a broad range of people to get involved in arts activity exploring their own creative powers; and
celebrate the diversity of cultures in its society by programming presentations by, and with artists of different cultural backgrounds.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
TFT presented 268 performances by 32 different companies - taking place in our South Bristol home as well as outdoors throughout the UK and cross continents.
The Christmas production, Snow Queen (co-produced with NIE and Cambridge Junction), was shared with audiences of 13,677 in our Factory Theatre and directly into people’s homes through a professionally produced and streamed video. Pleasingly, 24% of ticket bookers were new to TFT and the show received high praise from reviewers “you couldn’t find a better way to start your Christmas than this.” by StageTalk Magazine.
Revealed was our first Autumn in house production following the pandemic – a bold and dynamic piece of Black story telling. As well as a bespoke audience development campaign, TFT launched a public drive around the show called ‘Share the Story’, which encouraged audiences to support tickets for young people who couldn’t otherwise afford to attend the show:
Revealed achieved 70% of the seating capacity across the run with 2851 tickets sold.
The production achieved 115% of its revenue target, reaching £34,396.
The Share The Story fundraising campaign resulted in 577 free tickets being issued to young people who don’t currently access live theatre.
37% of bookers were new to TFT.
19% of bookers were from counties outside of Bristol (North Somerset, South Gloucestershire, Bath & North East Somerset and Somerset County).
The Wall was a second in house production, in partnership with Fundación Teatro de La Abadia Madrid, funded by The British Council. Working internationally with contributors from Palestine, Lebanon, El Salvador, Rwanda and elsewhere, the piece interrogated experiences and understanding of borders and their non-freedom of movement. Many of these artists worked and performed remotely via video screen, joined by local actors who interpreted their words on stage, ‘a riveting and thought-provoking live encounter and an intriguing example of multi-country collaboration’ (Bristol 24/7 Review).
Finally, we housed BS3 Santa in the Spielman Theatre in December, a commissioned piece which welcomed 1,334 audience members with an age range of 2-102. The show was an evolution of a piece of street performance designed with pandemic audiences in mind.
Highlights of our visiting programme were:
The Owl and The Pussycat by local company Hammerpuzzle Theatre Company
Daniel Kitson performed Outside, a four night run at Windmill Hill City Farm
Rashdash’s Oh Mother, co-commissioned alongside MAYK and Soho Theatre
Sell-out stand-up comedy from Tim Key, Jen Brister, Mike Wozniak, Josh Pugh & Chloe Petts amongst others
Ad Infinitum brought their high-energy one-woman show, Beautiful Thing
We welcomed Frozen Light with their show 2065, a futuristic sensory extravaganza for audiences with profound and multiple learning disabilities
Local favourites Living Spit performed Adolf and Winston in The Factory Theatre
Mama Told Me Not To Come a company keen to reflect on what it means to be brown British women performed Brown Girls Do It Too in The Factory Theatre
We housed Bigger Than Lyrics and We’re Here To Share, two scratch nights produced by South West global majority company Beyond Face.
Big Boys Don't Cry by generous and skilled Bristol company Opposable Thumb
Tink a piece developed directly from our Spring 2022’s Artist Development event, led by two independent female Bristol Artists.
Bristol Old Vic Theatre Schools first return since the pandemic with This House
The overall performance programme (including hires of the theatres and our Get Involved programme) attracted an audiences of over 40,000. This represented a significant increase from just over 20,000 in the previous year but remains lower than our pre-Covid annual audiences of 60,000-70,000. This is partly to do with a commitment to maintain socially distant performances, a decline of quality work available to programme during this period and a smaller staff team in place to ensure organisational stability.
ARTIST AND PROFESSIONAL DEVELOPMENT
One to one meetings/ mentoring was offered to more than 30 local artists, supporting them as they embarked on the development of new projects and ideas.
The free monthly Artist Membership programme, offering meet-ups, discussions, reduced price tickets and free rehearsal space, grew to over 350 members an increase from 250 members the year before.
HIGHER EDUCATIONAL RELATIONSHIP(S)
We continued strong relationship with Bristol School of Acting, University of Bristol and Bristol Old Vic Theatre School. From full-time weekly workshops held in The Spielman, to writing classes, large-scale productions to bespoke workshops. TFAT worked with emerging performers, writers and directors; allowing learning and professional practice.
Plans continue to be explored around options for a further degree course on Technical Theatre in partnership with Bristol School of Acting.
GET INVOLVED
Over the course of 2022- 23 TFAT’s Get Involved (Participation) team launched a series of new projects and groups. As well as sustaining, much loved core offers.
The Young Theatre Makers programme runs throughout our year and is TFAT’s regular core offer for young people providing weekly sessions for ages 4 – 19. This activity welcomes over 100 participants (and their families) into the building each week. Many groups are oversubscribed however; with this we are also observing an increase in participants requesting subsidised places. We are monitoring this closely.
In August 2022 three Summer Schools were delivered, working with children and young people aged 7 – 19 to create a play in a week and perform to family and friends. This is a popular programme, which reaches young people who do not take part in our youth theatre companies. Over 80 young people engaged with this programme – with 10% given full bursaries to attend.
Schools Take Over is an annual project that is delivered in partnership with New Fosseway School. A professional creative team collaborate with students with profound and multiple needs. Over the course of two school terms they write, rehearse and stage an original play on the stage of the Factory Theatre. Pre and post activity assessments revealed an increase of 25% on participants confidence and 20% in concentration; team works, social skills and self-esteem all noticeably improved.
The Factory Singers enjoyed regular weekly sessions lead by Choir Leader, David Hewson. Rehearsals remain an uplifting experience for everyone who takes part with the activity being shaped and informed by the interests, ambitions and direction of the group. The performance of Factory Tapes in July 2022, played to 239 audience members and was a fresh offer to these participants.
Acting Lab, TFAT’s adult acting offer, continued to attract a wealth of participants. In these sessions our adult company enjoy a rigorous training as well as a strong community spirit and bond, that has been a life changing experience for many taking part. Working with Tom Brennan from The Wardrobe Ensemble, the group created the show Made In Checkov, which was presented in our Factory Theatre to a sell out audience.
We continued our 6 month writing project for students from Bristol University, an initiative we have run every year since 2018. Bristol based playwright Mike Akers mentored 10 students in a bespoke and nourishing project, which worked towards a final presentation in our spaces.
Blueprint (formally known as Young Producers) is a refreshing and empowering training programme for young/ emerging producers. Lead by Graham Johnson (who identifies as queer and disabled) this progressive project builds and establishes confidence, producing skills and the importance of wellbeing practice. The 2022-2023 cohort successfully produced Spark, a festival housed at TFT across The Factory Theatre, Spielman Theatre and public spaces, which welcomed 138 audience members through the door, 48% of these were new attendees. Initial evaluation suggests the programme provides a positive, lasting and impactful legacy to its cohort, many of whom have no background in the arts.
Organisation
2022-23 has been a year of growth for TFT both in terms of the physical capacity of its theatres and subsequently numbers through the doors, but also in its staffing structure, with key personnel moving on and with plans put in place to form a team that will see the organisation into its next chapter.
A key achievement in the year was a successful application to continue as an Arts Council Funded National Portfolio Organisation between April 2023 – March 2026. A standstill grant of £61,458 per annum was awarded which will provide stability as TFT builds a sustainable future following the pandemic.
Thanks to a grant from the Foyle Foundation, a key capital project was achieved in August 2022 as additional ventilation was installed in the Factory Theatre. This has allowed capacities to be increased back to pre Covid levels giving the opportunity for income growth from ticket sales. The works were project managed in house and completed on schedule and to budget.
Audience attendance increased 100% from the previous year and this looks likely to grow again next year. Attendance for The Snow Queen, TFT’s 2022 Christmas production saw 13,500 people attend. 26% of these were new bookers to TFT, the highest for a Christmas show since 2017.
The hire partnership with Bristol School of Acting continued to grow with a new cohort of first year students starting on the BA Degree for Stage and Screen held in the Spielman Theatre, and the second year students presenting their final year shows in the Factory and Spielman Theatres. The new first year students were inducted into the theatre in the first term with several of them now employed on the Theatre Bar outside of their studies.
There were several key staffing changes in the year. Most notably Mike Tweddle resigned from his role as Artistic Director and CEO at the start of the year. Mike left his position in September 2022 and following a comprehensive recruitment process, Heidi Vaughan was appointed as his replacement. Heidi started in post in January 2023 with Morag Massey appointed as support in the interim. Jamie Rees also joined the organisation as Communications and Fundraising Director in May 2022 to lead TFT’s Sales and Fundraising team.
As the organisation dealt with the ongoing challenges faced with a cost-of-living crisis, the potential of a recession and the changes that are still being felt as we come out of the pandemic, there was a need to revisit and review the structure of each staffing department to ensure it is fit for purpose to deliver TFT’s strategic business plan going forward. An organisational restructure was undertaken towards the end of the year looking at roles, responsibility levels and rates of pay across the whole organisation. A new staffing and pay structure was agreed by trustees and recruitment commenced in the Summer of 2023.
Environmental Sustainability continues to be central to TFT’s plans. An environmental policy and action plan is created each year and agreed by the board. Data is captured, analysed and reported to Julie’s Bicycle to obtain a carbon footprint. As footfall through the building has risen since the pandemic we have seen increases in energy, water, waste and travel usage in 2022-23, however these are still below pre Covid levels and the mitigations in our action plan are working. The PV panels on the roof of the building continued to provide excellent results, generating 23,312kwh supplied back to the grid in 2022-23. The new position of Head of Operations will lead our Environmental Group which will involve representation from each department within the organisation.
Total income for the year was £1,251,000 (2022: £1,532,000), representing a decrease of 18%. Last year’s higher income figure was primarily due to the granting of a 999-year lease at a peppercorn rent by the owner of the Tobacco Factory, which was treated as a gift in kind of £500,000 ( see note 3). Last year's income had recovered some of the reduction in income since 2019-20 but still represented a fall of 12.5% from the 2019-20 total income of £1,752,000.
Re-opening the theatre, albeit on a more limited scale than pre-pandemic, has enabled an increase in earned income, which increased substantially to £895,000 from £448,000 in 2021-22.
Operating costs continue to be well controlled, increasing to £1,339,000 (2022: £986,000) in line with the increase in the size of the programme of shows delivered, as compared with 2022.
Consequently, general (non-designated) funds have decreased to £180,000 This is the same as the organisation's free reserves, which forms the basis of the organisation's reserves policy.
The Charity's reserves policy is to hold three months' worth of non-attributable overhead expenditure as defined by internal management accounts in liquid unrestricted funds (i.e. free reserves). Current projections suggest this is about £171,000. At 31 March 2023 free reserves totalled £180,000.
Risk management
The trustees have a risk management strategy which comprises:
an annual review of the principal risks and uncertainties that the charity and its subsidiary face with monitoring at each board meeting;
the establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and
the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
This work has identified that financial sustainability is the major financial risk for the charity. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, and active management of trade debtors and creditors balances to ensure sufficient working capital by the Trust The impact of non-liquidity would be to reduce significantly the opportunities for TFT to put on shows or otherwise meet its charitable aims.
Attention has also been focused on non-financial risks arising from fire, health and safety of artists and audience, management of performing rights and food hygiene. These risks are managed by ensuring accreditation is up to date. having robust policies and procedures in place and regular awareness training for staff working in these operational areas.
Plans for the future
Recruitment of 6 new positions at the start of the year will see TFT’s core staffing team grow to 13 staff who will work the equivalent of approx. 9.5 FTE roles, and will provide a balanced staffing structure to ensure TFT’s activity will be delivered efficiently.
A year round progamme of work will be presented in the Factory Theatre with more one night performances taking place in the Spielman Theatre as the year goes on. For the first time since the pandemic TFT will return to presenting three Christmas shows. In the Spielman Theatre a touring show for 3+ and an evening cabaret show for adults. In the Factory Theatre TFT will present a new in-house production of Oliver Twist which will be directed by Heidi Vaughan and adapted by Adam Peck.
A regular programme of activity from TFT’s Get involved department will continue in the Spielman Theatre. 200 young people will participate weekly in Young Theatre Makers classes and 75 adults per week will take part in Acting Classes or TFT’s community choir. A New Writing workshop will be trailed in the Spielman Theatre which is hoped will fill a gap in the city for creative writers.
THANK YOU!
TFAT would not be here without the dedication and support of the many trusts and individuals that have given us their time and support this year. The trustees and staff of TFAT wish to express their heartfelt thanks to you all.
Thank you also to Arts Council England and to Bristol City Council for their ongoing support and investment in the future of the Theatres’ work.
Tobacco Factory Arts Trust is a company limited by guarantee and is a registered charity. The charitable company's Memorandum and Articles of Association are the primary governing documents of the company. The trustees of Tobacco Factory Arts Trust are also the directors of the charitable company for the purposes of company law.
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:
Appointment and induction of trustees
Members of the Board of trustees are appointed in accordance with the company's Articles of Association and usually for a term of three years. After retiring a trustee may seek reappointment to the Board on one further occasion, resulting in a maximum term which each trustee may serve of six years.
Trustees are invited to join the Board when it is felt that they will add to the range of skills and experience necessary for the management and promotion of the Trust's activities.
Members liability
Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before they ceased to be a member. The trustees are also members of the company.
Trustees' Indemnities
Professional indemnity insurance is paid on behalf of the trustees and officers.
Organisational structure
The management structure consists of two levels: the trustees and the executive team. The aim of the management structure is to devolve responsibility and encourage involvement in decision making at all levels.
Nominated trustees are appointed at meetings of the TFAT board of trustees. The composition of the board is specified in the Articles of Association. which are available for inspection at the registered office.
The trustees are responsible for setting policies, adopting budgets. monitoring financial performance against agreed budgets and making major decisions about the company's strategic direction including its programme, the development of the theatres, and the welfare of staff. The Board meets bi-monthly.
Day to day management is delegated to the executive team.
Policies and procedures adopted for the induction and training of trustees
The training and induction provided for new trustees will depend on their existing experience. Where necessary induction will provide training on charity and educational legal and financial matters. All new trustees will be given a tour of the Theatres and the chance to meet with staff. All trustees are provided with copies of policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role as trustees. As there will normally only be two or three new trustees a year, induction will be done informally and will be tailored specifically to the individual.
New trustees are introduced to the staff and functions of the trust at informal meetings.
Pay policy for senior staff
None of the trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee or senior manager of the charity with a production company or contracted freelancers must be disclosed to the Board in the same way as any other contractual relationship with a related party. Details of trustees' expenses and related party transactions are disclosed in note 9 to the accounts.
The remuneration of all staff, permanent and casual, is reviewed annually by the executive team, chair and treasurer. The review considers a number of factors including the TFAT’s financial position, changes in the responsibilities of the post holders, general inflation rate and pay rates for similar positions in other organisations.
Volunteers
TFAT has a small pool of supportive volunteers who assist in the theatre, front of house, and in many other ways. Other volunteers who have less time to offer also represent a great asset and support for the work of the Theatre. TFAT welcomes applications from people who wish to volunteer.
Going concern
The trustees have reviewed the company’s financial prospects for the forthcoming 12 – 18 months, and are confident the government funding received during the pandemic, followed by its financial results for the year ended 31 March 2023, justifies the board’s view that the charity is a going concern.
TC Group were appointed as auditor to the company and a resolution proposing that they be re-appointed will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees on the 15 November 2023.
Opinion
We have audited the financial statements of Tobacco Factory Arts Trust (the 'Charity') for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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.
the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Charity'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.
Other information
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 auditor’s 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors’ report included within the trustees’ report has been prepared in accordance with applicable legal requirements.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
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; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of trustees' responsibilities, the Trustees, who are also the directors of the charitable company for the purpose 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 determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements the Trustees are responsible for assessing the Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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 auditor's 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: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general sector experience, and through discussion with the trustees and other management (as required by auditing standards), and discussed with the trustees and other management the policies and procedures regarding compliance with laws and regulations (see below);
We identified the following areas as those most likely to have such an effect: health and safety; General Data Protection Regulation (GDPR); fraud; bribery and corruption, and employment law. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any. The identified actual or suspected non-compliance was not sufficiently significant to our audit to result ín our response being identified as a key audit matter.
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102, the Companies Act 2006 and the Charities Act 2011) and the relevant tax compliance regulations in the UK;
We considered the nature of the charity's operations, the control environment and financial performance.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the charity has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
Use of our 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 the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
designated
Support costs
General funds
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Tobacco Factory Arts Trust is a private charitable company limited by guarantee incorporated in England and Wales. The registered office is Tobacco Factory, Raleigh Road, Southville, Bristol, BS3 1TF.
Tobacco Factory Arts Trust is a public benefit entity.
The financial statements have been prepared in accordance with the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice 2019 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 is a Public Benefit Entity as defined by FRS 102.
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 £1,000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Consolidation
These financial statements do not incorporate the financial statements of TFAT's subsidiary, TFAT Trading Limited, as it is immaterial within the context of TFAT's operations. The trading subsidiary was dormant throughout the year.
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. The validity of this assumption depends on the raising of sufficient financial support from third parties. The financial statements do not include any adjustments that would result if insufficient funds were received. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Fund accounting
TFAT has various types of funds for which it is responsible, and which require separate disclosure. these are as follows:
Restricted Funds
Restricted funds may only be used for particular restricted purposes within the objects of TFAT. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Unrestricted Funds
Unrestricted funds are those which are expendable at the discretion of trustees in furtherance of the objects of TFAT. Those funds earmarked for particular projects are designated as separate funds. However, trustees' discretion to apply such funds is not legally restricted.
Designated Funds
TFAT may at its discretion set aside funds for specific purposes, which would otherwise form part of the general reserves of the organisation.
Income is recognised when the is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Charitable trading activities
Income from theatre admission fees is included in income in the period in which the relevant production takes place. Income from ticket sales in advance of productions is deferred and released in the period in which the production falls.
Donations and grants
Income from donations and grants, including capital grants, is included as soon as legal entitlement arises, their amount is known with sufficient reliability and their economic benefit is probable, except as follows:
when donors specify that donations and grants given to TFAT must be used in future accounting periods, the income is deferred until those periods.
when donors impose conditions which have to be fulfilled before TFAT becomes entitled to use such income, the income is deferred and not included until the pre-conditions for use have been met.
or,
when donors specify that donations and grants are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in restricted funds when receivable.
Gifts in kind are recognised at fair value for tangible assets or for services and facilities their estimated value to TFAT, in both cases, at date of gift.
Interest receivable
Interest is included when receivable.
Legacies
Legacies are recognised on receipt or otherwise if the has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings the have been allocated to activities on a basis consistent with the use of resources. All expenditure includes irrecoverable VAT where applicable. Charitable activity costs include governance costs, which are those incurred in the governance of TFAT and its assets and are primarily associated with constitutional and statutory requirements.
Expenditure on raising funds comprise the costs associated with attracting voluntary income.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation subject to impairment review annually, and calculated at rates intended to write off the excess of the cost over the anticipated residual value (estimated by reference to current market price) of individual assets over their estimated useful lives.
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.
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
TFAT only has financial assets and 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 loans which are subsequently measured at the carrying value plus accrued interest less repayments. The financing charge to expenditure is at a constant rate using the effective interest method.
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any discounts due.
Creditors and provisions
Creditors and provisions are recognised where TFAT has a present obligation resulting from a past event that will probably result in the transfer of funds so a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts due.
TFAT operates a defined contributions pensions scheme. The assets of the scheme are held separately from those of TFAT and are independently administered. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
In the application of the charity's accounting policies, the charity is 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.
designated
Grants from public bodies
Donated goods and service for 2022 included a £500k gift in kind placed in the designated funds which related to a new property lease for the first floor premises at The Tobacco factory which was entered into on 26 May 2021. The term for which the property has been leased is for 999 years at a peppercorn rate. As substantially all the risks and rewards are held by Tobacco Factory Arts Trust and the lease term is for the major part of the asset economic life, the property has been recognised as a leasehold property asset, initially at fair value due to it being a gifted asset.
All donations and gifts from 2022 were unrestricted except for £121,000 of restricted grants and donations.
Unrestricted Funds
Income from productions
Theatre hire and events
Provision of services
Education project income
All fundraising and publicity costs from 2022 were unrestricted general funds except for £6,000 of restricted marketing costs and £5,000 of designated depreciation costs.
Support costs
Operation of theatre
Cost of visiting productions
Box office costs
Education project costs
Other property costs
Insurance
Light and heat
Printing, postage and stationery
Finance costs
Travel, subsistence and entertainment
Sundries
Governance costs includes payments to the auditors of £7,300 (2022- £8,000) for audit fees.
Trustees' received no remuneration or other benefits from the charitable company or its subsidiary during the year (2022: £Nil)
Trustees' expenses
No trustees claimed expenses during the year (2022: £Nil). No expenses were waived in either year.
The average monthly number of employees during the year was:
No employee received emoluments of more than £60,000.
The senior management team salaries and employee benefits totalled £103,000 (2022: £101,000)
TFAT is exempt from corporation tax as all of its income is charitable and applied for charitable purposes.
Shares in
group
undertakings
£
Market value
100
At 1 April 2022 and 31 March 2023
There were no investment assets outside the UK. The company's investments at the balance sheet date are entirely the share capital of the TFAT Trading Limited.
The subsidiary was primarily involved in the rental and hire of studios and rooms and donated all its taxable profits to TFAT however, it is now dormant.
Class of share: %holding
Ordinary 100
Bank loans comprise £185,000 advanced in 2020 under the UK Government CBILS Loan scheme. The loan is for a 60 month period with an annual rate of interest of 3.11% p.a. £130,000 (2022: £167,000) was outstanding at the year end.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £11,000 (2022: £9,000)
Fixed asset fund
This fund represents the net book value of the fixed assets included in the balance sheet.
Get Involved
Get Involved is a project run by TFT which is aimed at giving access to the arts to those (particularly young children and young people) who have no experience of theatre activities, by taking part in workshops and participating in performances. It is supported by this fund, which receives funding from trusts including St James's Place Foundation, The Spielman Charitable Trust and the Real Ideas Organisation.
The British Council
The British Council has provided this fund to enable the production of performances to be staged in collaboration with a Spanish theatre company, and involving performance from many other countries.
Development team
This fund was provided by the Backstage Trust to support the creation of a development team at TFT, to facilitate improved fundraising activities.
RTYDS
The Regional Theatre Young Director's Scheme supports the employment of a young director for a period of 18 months.
Air conditioning fund
During the year the Foyles Foundation provided a grant to replace the air conditioning system in the building. This money was used to pay for the equipment and installation plus other costs associated with the system. Once completed the asset is then transferred to the unrestricted fund.
Unrestricted funds
Designated funds
Restricted funds
There were no disclosable related party transactions during the year (2022 - none).
TFAT is controlled by its trustees.