The Directors present their annual report and financial statements for the year ended 31 December 2023.
The charity's objectives are:
- to present, promote, organise, provide, manage and produce dramas, dance, operas, films, broadcasts, concerts, musical pieces, entertainments, exhibitions, tutorials, seminars, courses and workshops, whether on any premises of the Charity or elsewhere
- to procure to be written, printed, published and issued gratuitously or otherwise such papers, books, pamphlets or other documents as shall further the above objects
AIM: Cutting Edge Theatre Productions exists "to make a difference" and to work with marginalised people in a variety of circumstances. Our aims are to:
Enable people to realise their potential through drama
Open doors and create opportunities
Promote positive representation within the performing arts
Cutting Edge Theatre is based on Christian values, having been founded by our current Artistic Director in 1995 [constituted in 2001] with an express aim to "make a difference in society through the use of theatre". Some of our work is Christian in content, such as the annual Passion play, but the rest of our work is not overtly Christian, simply aiming to make a positive difference, especially enabling marginalised people to have equal access to the performing arts through transformative theatre
The strategies used to achieve these objectives are:
1. The Artistic Director works with local communities, enabling them to produce Theatrical productions. This involves the Artistic Director not only working on a creative level with community actors, but working alongside volunteers to set up committees to produce the plays and training the volunteers during the production. This brings new levels of expertise to local communities, provides work for other professionals such as Stage Managers, Costume Designers etc.
2. Working with other professional actors/performers, the Charity creates and delivers high quality theatre productions and projects.
3. Working with other professionals, the Charity undertakes work with disabled people. This work aims to help people increase confidence, self-esteem and improve their communication skills. We currently run:
a. INSPIRE Fife – two drama groups for disabled adults
b. Young Company – a young company of learning disabled adults aged 18-25 based in Edinburgh
c. Youth Theatre – a youth theatre for learning disabled young people aged 13-17 in Edinburgh
d. Drop in classes – informal sessions for disabled adults and disabled children in Edinburgh
e. Online sessions – informal sessions for disabled adults
4. Working with other professionals, the Charity complements the work in Musical Theatre and creates/ develops productions.
5. Commissioning and developing new projects that use Drama.
6. Teaching/working with others both in the UK and abroad.
OBJECTIVES:
Enabling disabled people through our INSPIRE projects to discover their talents and learn new skills by using drama techniques, all designed to boost confidence, self-esteem and improve vocal issues. Our INSPIRE projects include developing employment skills and furthering creative opportunities.
Engaging with grass-roots communities through our annual PASSION plays set in outdoor spaces by encouraging them to become part of a community play. We believe that the process of gaining self-confidence and learning new skills is as important as the play itself and the recognition for their achievements in the wider community.
Developing the creative potential of offenders through our regular mentorship drama projects set in prisons in Scotland and beyond (USA, Italy and Brazil). These projects are aimed at increasing offenders’ confidence and empathy, improving their wellbeing and bringing recognition and sense of achievement. Participation in the arts has shown to help reduce the likelihood of re-offending behaviour.
Increasing the diversity of people accessing the creative industries in Scotland by staging and touring a fully inclusive professional theatre production every two years and by addressing contemporary issues through theatre relevant to our audiences and artists including disabilities, stigma, suicide and mental health issues.
ACTIVITIES DURING THE YEAR:
During 2023, we achieved the following;
- INSPIRE Fife welcomed back Associate Artist, Katie Milne after maternity leave. The classes go from strength to strength and presented a Christmas celebration of their skills and talents at the Vine Church Conference Centre.
- We managed to continue the new groups in Edinburgh.
- We now run drop in sessions for disabled adults and disabled children in Edinburgh
- We set up a Youth Theatre for learning disabled young people aged 13-17. This is Scotland’s first Youth Theatre for learning disabled young people.
- we were able to continue running our Young Company of learning disabled young people aged 18-25
- One of our Associate Artists, Abigail Brydon was mentored by Graeae Theatre and 1623 Theatre on their “Let Me Be” online course, exploring Shakespeare. We intend to run this course in 2025.
- We took over production of the Easter Play from 2023 onwards and produced a traditional version of the play which hadn’t been produced for around six years. It was good to build the cast up again post pandemic.
- “Now, Voyager” musical has had to be put on hold sadly, due to us not being able to secure funding. We will try again in 2024.
- Three students were mentored in the Easter Play and INSPIRE projects.
- After working with female offenders in HMP Edinburgh on a draft script, we were unable to get back into the prison to carry on this work. It has become harder to go into prisons to do drama projects, so we decided to stop this work unless we are invited in by a prison.
Despite winning two Awards for our inclusion work, we struggled to secure funding for our INSPIRE work and for “Now, Voyager”. At Christmas time, it looked like we would have to close our INSPIRE Fife classes as there simply wasn’t the funding available. However, we managed to secure funding for the Fife groups in December that would keep them going into 2024.
A lot of time and effort went into fundraising in 2023 to enable us to continue our work especially with disabled people.
Awards -
The Charity concentrated on the development of our disability projects and specifically created a “ladder” structure to ensure that disabled people have equal access to the performing arts.
The highlight of the year was winning two awards for our inclusion work. We won the Creative Edinburgh Inclusion Award and the Edinburgh Evening News Local Hero Award for Arts.
The Charity is more involved in Community Theatre and social projects rather than looking to produce professional theatre for touring. The Board exists to support the Artistic Director in her work here and abroad.
Grants and donations were received from:
INSPIRE DISABILITY ARTS – Youthlink Scotland
YOUNG COMPANY – Creative Scotland
THE EDINBURGH EASTER PLAY– Passion Trust, SSPCK, Creative Changes, Souter Trust
YOUTH THEATRE – Rooney Family Trust, Trefoil Trust
INSPIRE FIFE – Cervus Trust
PHASED OUT – William Syson Fund
CHILDRENS’ CLASSES - Hays Travel, Trefoil Trust, Boshier-Hinton Foundation
EDINBURGH ADULT GROUP – Nancie Massey Charitable Trust
NOW, VOYAGER – Sylvia Waddilove Foundation
The Charity is very grateful to all donors and Trusts/Foundations for helping the work continue.
The Charity is in the process of applying to Trust funds for new work being developed in the area of disability work especially and has submitted several large funding applications with Creative Scotland and some multi-year funders.
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 between three and six month’s expenditure. The directors considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the period.
Plans for the future
The Charity will concentrate on 2 main areas in the future. We will focus on:
- developing the work with disabled people
- working with and creating Community productions.
The Artistic Director will continue mentoring young creative professionals.
The Charity recognises that they need to attract core funding to allow them to develop the company and projects. The Charity is a portfolio company with a number of projects – all “to make a difference” and will continue to work this way.
The Directors who served during the year and up to the date of signature of the financial statements were:
The Board is recruited by personal invitation from existing Board members whereby a name is proposed at a Board meeting and voted on [all voting is minuted] The prospective Board member is then invited onto the Board and all forms completed.
All Board members bring with them experience in Business matters and/or Arts Organisations. Most have experience with being on other Boards. Information is given to each Board member about the Company and information on the responsibilities of being a Board member in line with Charity regulations.
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.
Under the Memorandum and Articles of Association, it is agreed that reasonable and proper remuneration may be made to any member, officer or servant of the Company for any services rendered to the Company, or any Director who is employed by the Company in an artistic, performing, administrative or technical capacity, or being a person engaged in any profession of all usual professional or other charges for work done by him or his firm when instructed by his co-directors so to act in that capacity on behalf of the Company, provided always that such remuneration is not for services solely rendered to the Company in the capacity of Director.
The minimum number of Directors is 3 and the current maximum is 12. Members are rotated every year by one third of the members retiring from Office. The members to retire shall be those who have been longest in office since their last election or appointment. They may stand for re-election.
There is both a Chair and a Secretary at each Board Meeting and all decisions are proposed, voted upon and minuted. The Directors decide what the goals of the Company should be for each year and put in place plans to ensure those goals are met wherever possible. The Directors also agree a draft budget for each project. There are then regular planning meetings to ensure that all actions needed are on schedule and within budget. Post project meetings are held to evaluate the project and finances.
Day to day management of the Charity is in the hands of the Artistic Director [Suzanne Lofthus], working with a part time Administrator.
In 2021, we were fortunate to secure a large grant from the Scottish Power Foundation which enabled us to set up our INSPIRE Disability Arts programme. We were able to bring some of that funding into 2022. In 2023, we struggled, along with a lot of Arts organisations, to secure funding. A lot of arts funders pivoted to helping with the cost of living crisis. This reduced the amount of funds available to organisations such as ourselves. A number of Arts funders also wrapped up their funds which has had a big impact on arts organisations. This meant that we really struggled to secure funding in 2023, hence the difference in our income for this year. We hope to be able to secure core funding in 2024 with an application to Creative Scotland.
The Directors' report was approved by the Board of Directors.
I report on the financial statements of the charity for the year ended 31 December 2023, which are set out on pages 7 to 16.
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 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.
Cutting Edge Theatre Limited is a private company limited by guarantee incorporated in Scotland. The registered office is 6 Albion Terrace, Edinburgh, EH7 5QX.
The financial statements have been prepared in accordance with the charity's Articles of Association, 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)” (as amended for accounting periods commencing from 1 January 2016). 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 Directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors 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 Directors in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors 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.
Expenditure is recognised when a liability is incurred.
Charitable activities include expenditure associated with the staging of productions and include both direct and support costs relating to these activities.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
Support costs include central functions and have been allocated to the charitable activity on a basis consistent with their use.
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.
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.
In the application of the charity’s accounting policies, the Directors 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.
Sale of goods
Fees/salaries
Marketing and publicity
Theatre hire and sundry production
Travel and accommodation
Costumes
Other direct costs
During the year one trustee was paid the sum of £11,050 (2022 - £17,300) for services provided to the charity. In addition, one trustee was reimbursed £2,674 (2022 - £9,756) of expenses incurred on behalf of the charity.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2022 - none).