The Trustees present their annual report and financial statements for the year ended 31 December 2023.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum & 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 2016).
The charity continues to operate through the efforts of a small number of trustees supported through professional advisers. Existing trustees are mindful of the need to ensure that there is both continuity and sustainability so when an opportunity arises to recruite new members candidates are invited to serve an apprenticeship with a view to becoming a full trustee if all parties are in agreement.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The charity's objects are as follows:
1. The advancement of the arts, in particular the Dramatic Arts and the development of Public Appreciation of the arts by the provision of a theatre and facilities for the presentation of public performance.
2. The advancement of education for the public in:
(a) The art of drama, dance, mime and music;
(b) Theatre work and skills
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
(i) The Society owns and runs the City Theatre. This is a 71-seat theatre that has been running since November 1986. It was converted to a theatre from club rooms which the Society had previously used the building for since it was purchased in 1950. To this end maintenance and refurbishment of the building has continued throughout 2023
(ii) The Society performs a main season of five full-length plays each year at the City Theatre. In 2023 the plays were;
The Government Inspector by Nikolai Gogol, Deliver us from Evil by J D Robins The Duke in the Cupboard by Susan Wear, Damages and The Unexpected Guest by Agatha Christie .
(iii) Once again in addition we had a studio performance, Little Gem from the novel by Elaine Murphy
(iv) The Society also participated in the local Durham and Sunderland Festival with a play called Pitman Painters by Lee Hall when we were highly recommended and consequently invited to perform at the National Finals in July in Coventry which we accepted.
(v) The theatre has continued to be used for external hires to numerous student groups for theatre productions
(vi) There has been a private hire from a children’s theatre company
(vii) The theatre was a host venue for the 2023 Durham Fringe Festival which continued to its 3rd year and had increased performances all week both afternoon and evenings. We believe this has increased our attendance to our own plays and improved our networks of communication.
(viii) The Society continues to encourage its members to acquire skills associated with the production of plays, both on-stage and back-stage. Further members are coming forward to become Trustees. New members are encouraged to get involved in back-stage activities such as lighting and props in order to maintain the skills needed in these departments.
(ix) As well as providing support to the Society’s own plays, the Wardrobe and Properties departments hire out costumes and props to various external groups. Both wardrobe and properties are extensively catalogued to provide swift support to both the Society’s own productions and external networks.
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 Trustees 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 year.
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 limited by guarantee of members and does not have a share capital.
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:
Durham Dramatic Society is governed by a Memorandum and Articles of Association for a charitable company. They are standard articles of association for a charitable company, with alterations approved by the Charities Commission.
The Society is a company limited by guarantee (Company no. 00415913).
The Articles of Association allowed for a minimum of nine directors ,but they are not subject to any maximum.
The Board of Directors constitute the Board of Trustees of the charity, and it manages the business of the charity and may exercise all the powers of the charity, unless they are subject to any restrictions imposed by the Law, the company’s Articles, or any ordinary or special resolutions passed by the members.
Five directors of the Society are Officers of the charity: Chairman, Secretary, Treasurer, Production Committee Chairman and Theatre Manager. All Officers are elected by the members at each Annual General Meeting. Terms of office last for one year, but Officers may stand for re-election.
A further six directors of the Society are elected for a three-year term by the members at each AGM, with two directors elected each year in rotation. These directors may not stand for re-election to the same position when their term of office expires.
There is one permanent sub-committee of the Board of Trustees: the Production Committee. This consists of the Chairman of the Production Committee, all directors of plays (consisting of nine directors at the end of 2023), and three members of the Society elected by the membership at AGMs. The Production Committee exercises powers delegated by the Board of Directors and reports to the Board.
Public Benefit
The Board of Directors have had regard to the Charity Commission guidance on their legal duty on public benefit, and we are satisfied the charity delivers public benefit. Due regard is paid to the guidance on public benefit when deciding on what new projects the charity should make.
As a commercial venture the Trustees have decided to introduce the sale of confectionery and ice cream in the interval to complement our 2024 programme. This is in response to a number of requests and provides an alternative source of income.
We have had a very gradual increase in attendance numbers in 2023 which we believe to be partly a recovery from the Covid Epidemic, people getting back into their habits and the theatres maintenance of our entrance costs as we continue in an economic ‘cost of living’ status. Many of our customers are elderly.
The Trustees, who are also the directors of Durham Dramatic Society Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Durham Dramatic Society Limited for the year ended 31 December 2023, set out on pages to 15 from the charity’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made to the charity's Trustees, as a body, in accordance with the terms of our engagement letter dated 27 February 2024. Our work has been undertaken solely to prepare for your approval the financial statements of Durham Dramatic Society Limited and state those matters that we have agreed to state to the charity's Trustees, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Durham Dramatic Society Limited and the charity's Trustees as a body, for our work or for this report.
It is your duty to ensure that Durham Dramatic Society Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and deficit of Durham Dramatic Society Limited. You consider that Durham Dramatic Society Limited is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report.
We have not been instructed to carry out an audit or a review of the financial statements of Durham Dramatic Society Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Durham Dramatic Society Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Durham City Theatre, Fowlers Yard, Back Silver Street, Durham City, Co. Durham, DH1 3RA.
The financial statements have been prepared in accordance 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 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 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 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 once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s 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.
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).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
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 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.
Government Grants
Surplus on productions
Fund raising
Surplus on bar
Subscriptions
Miscellaneous
Theatre hire
Stock (increase) decrease
Water Rates
Insurance
Heat and light
Repairs & renewals
Printing, stationery and postage
Licences
General expenses
Cleaning expenses
Governance costs includes payments to the accountants of £660 (2022- £660) for accountancy fees.
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 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).