The Trustees, who are also the directors of Scarlet Theatre Company 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 Period.
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.
The Trustees present their annual report and financial statements for the Period ended 27 March 2024.
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)” (as amended for accounting periods commencing from 1 January 2016).
The objects of the Charity, as defined by its Memorandum of Association, are to promote, improve, develop and maintain public education in and appreciation of the Arts of Theatre (and in particular relation to women) in all its aspects by the presentation of public performances and by such other ways as the Company shall determine from time to time.
Aims and objectives of the organisation
Scarlet Theatre aims to:
Create original theatre that entertains and provokes audiences;
Develop a distinctive performance style;
Explore new ways of ensemble working;
Provide female performers with the opportunity to work beyond the usual artform divisions and elevate the older actress in the area of devised physical work;
Forge dynamic collaborations between artists;
Bring together artists and schools to inspire mutual learning;
Contribute to the wider debate on contemporary theatre through associations with universities and through collaborating with academics and their research.
The main activities of the Charity during the year
Summary of activities
The charity has invested in creating relationships and lending expertise with a view to future projects.
Reserves policy
Trustees approved a reserves policy during the year. Factors taken into account included the need to provide a safety net during this time of reduced income and to cover unexpected expenditure. The Company is undergoing a fund raising strategy in line with the strategic review.
Principal funding sources
Scarlet’s chief funding resource is through applications to trusts and funds and through in kind relationships with institutions.
Investment policy
The Charity's Memorandum of Association does not confer any specific rights or restrictions on us as trustees in respect of investing its funds. The funds received by the Charity during the period under review were not sufficient to justify separate investment, other than to be placed on deposit with the Charity's bankers.
Financial Risk Management
The artistic director creates the annual budget and presents it for the approval of the trustees. The Company works with freelance producers or project managers on a project by project basis that is responsible for creating the production budget for the approval of the artistic director. Trustees keep a close scrutiny on the accounts through requiring quarterly reports and cash flows.
Governing document
The organisation is a charitable company limited by guarantee, incorporated on 13 February 1987, and registered as a Charity on 14 May 1993. The Company was established under a Memorandum of Association, which established the objects and powers of the charitable company, and is governed under its Articles of Association. In the event of the Company being wound up, members are required to contribute an amount not exceeding £100.
The Trustees, who are also the directors for the purpose of company law, and who served during the Period and up to the date of signature of the financial statements were:
Recruitment and appointment of trustees
The directors of the company are also Charity trustees for the purpose of Charity law and throughout this report are collectively referred to as the trustees. The Charity currently has four trustees who are elected annually by the members of the company at the Annual General Meeting.
Organisation structure
- Gráinne Byrne as Artistic Director
- Associates including Katarzyna Deszcz and Kate Eaton
- Four Board members
- Freelance book keeper Priscilla Williams
In 2020-21 Scarlet continues with its flexible staffing structure established during the previous year consisting of Artistic Director supported by collaborators.
Trustee induction and training
Trustees are elected on the basis of their expertise and through an assessment of skills required by the Company. Any trustee of the board may propose a new candidate for the board and subject to approval an invitation is made. All new trustees are given an induction pack to keep, including: the history of the Company along with programmes and reviews, a mission statement and Company structure. Trustees are made aware of their responsibilities under the law. The Company conducts board away days to support extraordinary periods in which decisions regarding the Company's future are required.
Related parties
The Company receives support on a project-by-project basis from trusts and funds and through in kind relationships with educational institutions and venues.
The Trustees report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Scarlet Theatre Company Limited (the charity) for the Period ended 27 March 2024.
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 Period. All income and expenditure derive from continuing activities.
Scarlet Theatre Company Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Kalamu House, 11 Coldbath Square, London, EC1R 5HL.
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)” (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.
All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable.
Investment income is included when receivable.
Performance income is recognised as performances take place. Where a series of performances of a production run over the year end, provisions are made for losses on future performances as necessary.
Expenditure is recognised on an accruals basis as a liability is incurred.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.
All costs are allocated between the expenditure categories of the statement of financial activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis as set out in Note 3.
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.
As a registered charity, Scarlet Theatre Company Limited is exempt from tax on income and gains falling within Part 11 of the Corporation Tax Act 2010 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.
The charity is registered for Gift Aid with HM Revenue & Customs under reference number XR35760.
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.
Theatrical performances
Governance cost
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity or had any personal interest in any contract or transaction entered into by the charity during the Period.
The average monthly number of employees during the Period was:
The remuneration of key management personnel was as follows:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.