The Trustees present their annual report and financial statements for the year ended 31 October 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 governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
The charity's objects are:
The promotion and advancement of the aesthetic education of the townsfolk of, and the visitors to, Upton-upon-Severn and the Midlands, by the performance of blues music of a high artistic calibre; and one or more of the following as the Trustees think fit
To advance the aesthetic education of the townsfolk of Upton-upon-Severn and the public of the Midlands generally in the subject of music, including the appreciation of music and the playing of music generally;
To advance the aesthetic education of the public in general in the subject of blues music of a high artistic calibre, including the appreciation of such blues music and the playing of such blues music generally; and/or
To promote for the benefit of the inhabitants of Upton-upon-Severn and the surrounding area the provision of facilities and funding of activities for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances, or for the public at large and for other registered charities in the interest of social welfare and with the object of improving the condition of life of the said inhabitants.
Main activities undertaken in relation to those purposes during the year
This year was the 21st Birthday of Upton Blues Festival, not withstanding the years when floods prevented us holding a festival and of course the Pandemic, which put the whole world on hold!
So this year we as a Committee wanted to bring something different to make our festival as memorable as it could be for our visitors, for the town, for the performers and as always to honor our objectives as a charity, to bring great blues based, live music to the people !
Some of the innovations, were very popular ! A road train which took passengers back & forth through the town was a huge success for all.
The other great addition was our joining up with the American Vintage Car Club, who had over a hundred cars on display and despite the bad weather was really well supported and enjoyed by the public.
As always, we produced a really good Program of events, with lots of interesting articles, adverts that support the town businesses, and details of the 150 bands plus, that were performing during the weekend.
Our performers were all of a high quality, with three main stages, and bands in the local pubs and venues, which all adds to the variety and scope of music on offer.
Our campers continue to be our main income stream. This year’s numbers were similar to previous years and we constantly try to improve their experience by providing excellent facilities and a Campsite Village exclusive to them, with a bar, food, traders and a smaller stage with performances and jam sessions.
Main activities undertaken to further the charity's purpose for public benefit
The festival continues to offer 'Blues to All' by continuing the policy of not charging to attend the festival, introducing blues to the widest possible audience which is especially important for the longevity of the appeal of the music through introducing it to many more people. In addition, the increasing role of the educational workshops and performance opportunities opens the genre up to younger people.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Grant making policies and how they contribute to the charity's aims and objectives
The vast majority of our income is spent delivering the festival, our primary vehicle for delivering our objects of bringing quality blues music to the widest possible audience within our geographic area. When there is an excess of funds over and above that needed to deliver the festival and maintain our festival war chest we do undertake giving grants to other organisations that meet our objects.
On these occasions our grant making policies are as follows:
That the monies go specifically to a use that is in keeping with our objects
That the monies, its use and activities are fully documented
That the monies go to organisations rather than individuals
That grant applications are made direct to the organisation and the Trustees select those that are successful
We are proud to be the winner of the UK Blues Federation ‘Best UK Festival’ 2023 award for the third time. This is all down to the commitment of our committee, who work tirelessly to put on a festival of this standard.
The net movement in funds this year amounted to a surplus of £78,521 (2022 surplus of £19,386). The total funds of the charity as at 31 October 2023 amounted to £215,909 (2022 £137,388) which are all unrestricted funds and also represents the charity's free reserves.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to the fundamental costs of the following year's festival in order to allow for contingencies caused by external factors. The Board of Trustees consider that reserves at this level will ensure that, in the event of a significant drop in revenue, they will be able to continue that charity's activities while consideration is given to ways in which additional funds may be raised.
Plans for the future
Our goal as a charity continues to fulfil all of our objectives and where surplus funds exist, to make donations and support local activities. This year we were able to buy an electric Piano for the local Primary School, who we also support when they have a Blues Workshops and then perform on our Meadow Main Stage.
We have donated to the local Rugby Club, and built a stage for performances for any event in the town, at our local Parish Church. The Trustees also agreed to a capital expenditure to build a trailer to ferry campers to and from on the campsite.
We continue to act prudently to protect our funds, the brand and status that we have built up over the 21 years. I am pleased to report that we have made a reasonable profit margin, which as costs continue to rise, means that we can look towards putting on next years festival, with all the health and safety, security and good management required to do this.
The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charity is a company limited by guarantee, registered under the Companies Act. The governing document of the charity is the Memorandum and Articles of Association establishing the company under company legislation.
There are no restrictions in the governing documents on the operation of the Charity or on its investment powers other than those imposed by Charity 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:
The management of the company is the responsibility of the Directors who are also the Trustees and who are elected and co-opted under the terms of the Articles of Association and are responsible for setting the remuneration of key personnel.
We have recruited no additional Trustees over the last twelve months.
The charity is under the control of its legal members. Every member of the charity is obliged to contribute such amount as may be required not exceeding £10 to the assets of the company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.
The Trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Upton Festival of Blues Limited (the charity) for the year ended 31 October 2023.
As the Trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Upton Festival of Blues Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 1 Church Cottages, Church Street, Upton upon Severn, Worcester, WR8 0HX.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The charitable activities are entirely dependent on the continuing success of the annual festival. As a consequence, the going concern basis is dependent on the future flow of these uncertain funding streams. Accordingly, the Trustees have obtained forecasts, and after reviewing the financial forecasts for the 2024 festival, the Trustees are satisfied that, at the time of approving the financial statements, it is appropriate to adopt the going concern basis in preparing the financial statements. Other than these matters, the Trustees are not aware of any material uncertainties about the charity's ability to continue as a going concern.
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.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
A liability, and the related expenditure, is recognised when a legal or constructive obligation exists as a result of a past event, and when it is more likely than not that a transfer of economic benefit will be required in settlement, and when the amount of the obligation can be measured or reliably estimated.
Liabilities arising from future funding commitments and constructive obligations, including performance related grants, where the timing of the amount of the future expenditure required to settle the obligation are certain, give rise to a provision in the accounts, which is reviewed at the accounting year end. The provision is increase to reflect any increases in liabilities, and is decreased by the utilisation of any provision within the period, and reversed if any provision is no longer required. These movements are charged or credited to the respective funds and activities to which the provision relates.
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 the statement of financial activities.
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.
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 Trustees consider that the charity satisfies the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income and capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively on the specific charitable objects of the charity and for no other purpose. Value Added Tax is not recoverable by the charity, and is therefore included in the relevant costs in the Statement of Financial Activities.
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.
Volunteers
In accordance with the SORP, and in recognition of the difficulties in placing a monetary value on the contribution from volunteers, the contribution of volunteers is not included within the income of the charity.
However, the Trustees value the significant contribution made to the activities of the charity by unpaid volunteers.
The role of volunteers within the charity's activities has become more important, with a carefully introduced programme of 'Festival Champions' to improve the visitors experience. The financial success o the festival has enabled the organisation to buy in more professional services to ensure the event runs smoothly, copes with the greater number of visitors and operates within clear professional guidelines.
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.
Festival organisation
Administrative expenses
Publicity
Sundry
Independent examiners
Governance costs includes payments to the independent examiner of £660 (2022- £600) for independent examination fees.
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
Mrs R H Etheridge received an honorarium of £nil (2022 £nil) and a salary of £5,000 (2022 £2,498) in her capacity as Festival Administrator.
Mr G J Bunn received an honorarium of £nil (2022 £nil) and a salary of £10,000 (2022 £nil) in his capacity as Festival Director.
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
There were no disclosable related party transactions during the year except with regards to payments to Trustees, which are fully disclosed in note 8 (2022 - none).