Charity registration number 220256
Company registration number 00242886 (England and Wales)
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
LEGAL AND ADMINISTRATIVE INFORMATION
Chairman
A De'Ath
Trustees
S Appleby
P Willis
X Burbridge
A Childs
S Cooper
A Dalgliesh
M Hope
T Swinton
J Wilson Craw
M Burden
(Appointed 12 October 2023)
K Corfield
(Appointed 12 October 2023)
C Ellis
(Appointed 12 October 2023)
L Heckels-Thompson
(Appointed 12 October 2023)
C Mawston
(Appointed 12 October 2023)
S Wallace
(Appointed 12 October 2023)
Secretary
H Birleson
Treasurer
K Scott
Charity number
220256
Company number
00242886
Registered office
Stephenson Road
Newcastle upon Tyne
NE6 5QF
Auditor
Sumer Auditco Limited
Unit 2
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
Bankers
Barclays Bank plc
49 - 51 Northumberland Street
Newcastle upon Tyne
NE1 7AF
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
CONTENTS
Page
Trustee's report
1 - 4
Independent auditor's report
5 - 7
Statement of financial activities
8 - 9
Balance sheet
10
Notes to the financial statements
11 - 23
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
TRUSTEE'S REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 JULY 2024
- 1 -

The trustees present their report and financial statements for the year ended 31 July 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 company'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).

Objectives and activities

There have been no significant changes in the principal activities of the company since last year which are those of an arts group. The objective of the group is to promote the arts within Newcastle upon Tyne and the wider region. A summary of the aims of the organisation, from the theatre’s constitution, states that “The Company is established to promote, maintain and advance education by the encouragement of the Arts, including the Arts of drama, mime, dance, singing and music and to formulate, prepare and establish schemes therefore provided that all objects of the Company shall be of a charitable nature.”

How our activities deliver public benefit

The trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. The trustees consider that the activities undertaken by the charity provide a direct benefit to those who attend the performances staged during the year and to the wider community.

 

In addition by making the theatre facilities available to a wide range of school, dance, community and other charitable organisations we have given several thousand local residents access to facilities and experiences they would not otherwise enjoy.

 

Achievements and performance

This year has been another wonderfully busy year in terms of our performances which have been well received and supported – in fact, other than the year we had to stage everything in the main theatre, we have played to our largest ever audience numbers overall. A great achievement and thanks to everyone involved in our productions, and congratulations to Prod Comm for choosing a wide variety of plays that have attracted so many people.

 

It has also been a year of challenges in terms of our building. It’s inevitable that a building dating from the 1930s will show its age now and again and the dreadful weather we have experienced hasn’t helped. A significant amount has had to be spent on roof repairs, drainage repairs, general maintenance on the building and so on. We are able to cope with this financially and it ratifies our reserves policy which states that we should aim to have 6 months expenditure in reserve. The fact that we had more than this is the reason we have been able to handle a significantly more expensive period than usual.

 

Thanks and congratulations are due to Xander and Alice for achieving a £15k grant towards our LED light replacement project. Looking to the future we have a significant amount of further work to continue the improvements to the building and to complete our LED project and the renewal of our SM environment. We will be looking for funding to assist with this.

 

And finally we want to take this opportunity to thank all our members for their continued support and commitment. Without you none of this could happen, and we look forward to another successful and exciting year to come.

Financial review

The results for the year under review can be seen on page 8.

PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 JULY 2024
- 2 -

Reserves policy

The People’s Theatre Arts Group Limited reserves policy deals with our general fund. The purpose of the reserves is to ensure we are able to properly manage unusual situations – for example, where an unexpected large expense is incurred, or where our income fails on an ongoing basis to cover our costs or, in a worst case scenario, the theatre had to close.

 

We aim to hold in reserve sufficient money in our general fund to cover at least six-month’s expenditure. The reasons for this are :-

The Charity's total reserves amounted to £1,233,715 (2023: £1,351,371) at the year end. Of this £210,501 (2023: £257,713) is unrestricted. £1,023,214 (2023: £1,090,348) is the restricted People’s Fund and the majority of this fund is now represented by tangible fixed assets, namely leasehold improvements.

 

The 'free reserves' of the charity (defined as those unrestricted funds not designated for specific purposes or tied up in fixed assets) stood at £94,638 at the year end (2023: £136,781).

Risk

The trustees meet on a regular basis to consider the major strategic and operational risks of the charity and act accordingly to mitigate those risks.

Structure, governance and management

The company is a company limited by guarantee and does not have a share capital. The company is governed by its Memorandum and Articles of Association.

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:

S Appleby
P Willis
P Bradley
(Resigned 12 October 2023)
X Burbridge
A Childs
S Cooper
A Dalgliesh
A De'Ath
(Resigned 12 October 2023)
S Harrison
(Resigned 12 October 2023)
M Hope
T Swinton
K Worswick
(Resigned 12 October 2023)
J Wilson Craw
M Burden
(Appointed 12 October 2023)
K Corfield
(Appointed 12 October 2023)
C Ellis
(Appointed 12 October 2023)
L Heckels-Thompson
(Appointed 12 October 2023)
C Mawston
(Appointed 12 October 2023)
S Wallace
(Appointed 12 October 2023)
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -

The Trustees are the Board of Directors who are elected by the Members at the Annual General Meeting. Candidates must hold full membership and are nominated by full members. They hold office for one year and are eligible for re-election. The theatre holds an AGM each year, in September or October, which is open to all members. As well as reporting on activities during the year, the accounts are presented and nominations for the Management Committee and Productions Committee are put considered and the members of these committees for the coming year are elected.

 

The Management Committee has overall responsibility for the theatre, and is composed of the Chairman, Secretary and Treasurer of the theatre, plus up to 9 trustees. They meet on a monthly basis and review all major activity at the theatre, review theatre governance as required, and review the theatre finances at each meeting.

 

The Productions Committee is responsible for the programme of plays put on each season – for choosing the programme, ensuring performance rights are secured, ensuring appropriate teams and cast are organised for each play, and reviewing the success of each play. They meet on a weekly basis.

 

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.

Statement of trustee's responsibilities

The trustees, who are also the directors of People's Theatre Arts Group Limited for the purpose of company law, are responsible for preparing the Trustee's 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 company 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 company 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 company 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that Sumer Auditco Limited be reappointed as auditor of the company will be put at a General Meeting.

PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 JULY 2024
- 4 -
Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustee's report was approved by the Board of Trustees.

H Birleson
M Hope
Secretary
Chairman
Dated: 10 October 2024
Dated:10 October 2024
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PEOPLE'S THEATRE ARTS GROUP LIMITED
- 5 -

Opinion

We have audited the financial statements of People's Theatre Arts Group Limited (the ‘company’) for the year ended 31 July 2024 which comprise the statement of financial activities, the balance sheet 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:

-

give a true and fair view of the state of the charitable company's affairs as at 31 July 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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 company 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 our audit:

-

the information given in the trustee's report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

-

the directors' report included within the trustee's report has been prepared in accordance with applicable legal requirements.

PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PEOPLE'S THEATRE ARTS GROUP LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustee's report.

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:

-

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 and returns; or

-
certain disclosures of trustees' remuneration specified by law are not made; or
-

we have not received all the information and explanations we require for our audit; or

-

the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustee's report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the statement of trustee's responsibilities, the trustees, who are also the directors of the 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 trustees 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 company’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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PEOPLE'S THEATRE ARTS GROUP LIMITED
- 7 -
Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charitable company and the sector in which it operates, we identified that the following laws and regulations are significant to the entity:

 

• Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law and Charity Law.

• Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the charity and therefore may have a material effect on the financial statements include compliance with charitable objectives, public benefit, fundraising regulations, safeguarding and health and safety legislation.

 

These matters were discussed amongst the engagement team at the planning stage and the team remained alert throughout the audit.

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence and legal costs incurred; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Stephen Slater (Senior Statutory Auditor)
for and on behalf of Sumer Auditco Limited
Statutory Auditor
Unit 2
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
Date: 14 October 2024
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
Current financial year
Unrestricted
Unrestricted
Restricted
Total
Total
funds
funds
funds
general
designated
2024
2024
2024
2024
2023
Notes
£
£
£
£
£
Income from:
Donations and legacies
3
30,316
-
15,000
45,316
72,076
Charitable activities
4
241,745
-
-
241,745
184,288
Other trading activities
5
39,998
-
-
39,998
57,070
Investments
6
1,206
-
-
1,206
306
Total income
313,265
-
15,000
328,265
313,740
Expenditure on:
Raising funds
7
46,416
-
9,834
56,250
54,079
Charitable activities
8
317,371
-
55,726
373,097
278,216
Other expenditure
10
-
-
16,574
16,574
16,975
Total expenditure
363,787
-
82,134
445,921
349,270
Net expenditure
(50,522)
-
(67,134)
(117,656)
(35,530)
Transfers between funds
3,310
(3,310)
-
-
-
Net movement in funds
(47,212)
(3,310)
(67,134)
(117,656)
(35,530)
Reconciliation of funds:
Fund balances at 1 August 2023
257,713
3,310
1,090,348
1,351,371
1,386,901
Fund balances at 31 July 2024
210,501
-
1,023,214
1,233,715
1,351,371

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
Prior financial year
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
general
designated
2023
2023
2023
2023
Notes
£
£
£
£
Income from:
Donations and legacies
3
72,076
-
-
72,076
Charitable activities
4
184,288
-
-
184,288
Other trading activities
5
57,070
-
-
57,070
Investments
6
306
-
-
306
Total income
313,740
-
-
313,740
Expenditure on:
Raising funds
7
44,245
-
9,834
54,079
Charitable activities
8
222,490
-
55,726
278,216
Other expenditure
10
-
-
16,975
16,975
Total expenditure
266,735
-
82,535
349,270
Net income/(expenditure) and movement in funds
47,005
-
(82,535)
(35,530)
Reconciliation of funds:
Fund balances at 1 August 2022
210,708
3,310
1,172,883
1,386,901
Fund balances at 31 July 2023
257,713
3,310
1,090,348
1,351,371
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
BALANCE SHEET
AS AT
31 JULY 2024
31 July 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
14
1,564,239
1,634,868
Current assets
Debtors
15
45,649
23,087
Cash at bank and in hand
77,623
197,147
123,272
220,234
Creditors: amounts falling due within one year
17
(46,847)
(72,519)
Net current assets
76,425
147,715
Total assets less current liabilities
1,640,664
1,782,583
Creditors: amounts falling due after more than one year
18
(406,949)
(431,212)
Net assets
1,233,715
1,351,371
The funds of the company
Restricted income funds
20
1,023,214
1,090,348
Unrestricted funds - general
210,501
257,713
Unrestricted funds - designated
-
3,310
1,233,715
1,351,371
The financial statements were approved by the trustees on 10 October 2024
M Hope
Chairman
Company registration number 00242886 (England and Wales)
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
1
Accounting policies
Charity information

People's Theatre Arts Group Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Stephenson Road, Newcastle upon Tyne, NE6 5QF.

1.1
Accounting convention

The financial statements have been prepared in accordance with the company's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 company is a Public Benefit Entity as defined by FRS 102.

 

The company has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the company. 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.

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the company 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.

1.3
Charitable funds

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.

1.4
Income
Income is recognised when the company 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.

Cash donations are recognised on receipt. Other donations are recognised once the company 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.

Legacies are recognised on receipt or otherwise if the company 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.

All grant income is recognised gross when receivable.

Play tickets are deferred when bookings are received in advance of the play to which they relate.

PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 12 -

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.5
Expenditure

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.

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to a category. Where costs cannot be directly attributed to a particular heading they have been allocated to activities on a basis consistent with the use of resources.

1.6
Tangible fixed assets

Individual fixed assets costing £100 or more are capitalised at cost including irrecoverable VAT.

 

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:

Leasehold improvements
Over remaining term of lease
Computer equipment
3 or 4 years straight line

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.

1.7
Impairment of fixed assets

At each reporting end date, the company 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).

1.8
Cash and cash equivalents

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.

PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 13 -
1.9
Financial instruments

The company 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 company's balance sheet when the company 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

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

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Taxation

The company is a registered charity and no taxation is payable on its income.

1.11
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13

Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expensed for which it was incurred.

1.14

Concessionary loans

Concessionary loans are initially recognised and measured at the amount received, with the carrying amount adjusted in subsequent years to reflect repayments and any accrued interest.

PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 14 -
2
Critical accounting estimates and judgements

In the application of the company’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.

Critical judgements
Assessing indicators of impairment

In assessing whether there have been any indicators of impairment of assets, the trustees have considered both external and internal sources of information such as market conditions and experience of recoverability.

Key sources of estimation uncertainty
Determining residual values and useful economic lives of tangible fixed assets

The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

 

Judgement is applied by trustees when determining the residual values for tangible fixed assets. When determining the residual value trustees aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 15 -
3
Donations and legacies
Unrestricted
Restricted
Total
Unrestricted
funds
funds
funds
2024
2024
2024
2023
£
£
£
£
Donations and gifts
13,283
-
13,283
10,341
Legacies receivable
285
-
285
17,209

Grants

2,500
15,000
17,500
29,843

Membership subscriptions

14,248
-
14,248
14,683
30,316
15,000
45,316
72,076
Grants receivable for core activities
Unrestricted
Restricted
Total
Unrestricted
funds
funds
funds
2024
2024
2024
2023
£
£
£
£
Charitable Trusts
2,500
15,000
17,500
26,500
Other Government Grants
-
-
-
3,343
2,500
15,000
17,500
29,843
4
Charitable activities

Unrestricted funds

Unrestricted funds

2024
2023
£
£

Play tickets

223,398
172,102

Programme sales

4,904
4,031

Theatre tax relief

13,443
8,155
241,745
184,288
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 16 -
5
Other trading activities

Unrestricted funds

Unrestricted funds

2024
2023
£
£

Premises hire

18,547
36,733
Wardrobe and equipment hire
591
1,683

Green room

14,582
17,074

Sundry

6,278
1,580
Other trading activities
39,998
57,070
6

Investments

Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Interest receivable
1,206
306
7

Raising funds

Unrestricted
Restricted
Total
Total
funds
funds
2024
2024
2024
2023
£
£
£
£
Fundraising and publicity
Other fundraising costs
-
-
-
1,000
Support costs
46,416
9,834
56,250
53,079
46,416
9,834
56,250
54,079
For the year ended 31 July 2023
Fundraising and publicity
44,245
9,834
54,079
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 17 -
8
Charitable activities
2024
2023
£
£

Royalties

6,262
13,975

Stage expenses

7,548
19,560

Water

1,393
2,603

Wardrobe expenses

4,177
1,347

Repairs and renewals

114,365
15,834

Props

2,494
826

Other direct costs

8,683
1,767

Programmes

1,186
960

House expenses

2,160
4,361

Publicity

13,471
14,394

Irrecoverable VAT

32,231
31,571
193,970
107,198
Share of support costs (see note 9)
168,852
162,056
Share of governance costs (see note 9)
10,275
8,962
373,097
278,216
Analysis by fund
Unrestricted funds
317,371
222,490
Restricted funds
55,726
55,726
373,097
278,216
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 18 -
9
Support costs
Support costs
Governance costs
2024
2023
Basis of allocation
£
£
£
£
Staff costs
64,744
-
64,744
61,570

Staff time

Depreciation
70,629
-
70,629
67,831

Use of premises

Electricity and gas

36,473
-
36,473
36,797

Use of premises

Insurance

13,364
-
13,364
12,581

Use of premises

Cleaning

30,713
-
30,713
28,392

Use of premises

Printing, postage and telephone

3,172
-
3,172
3,303

Use of premises

Sundry expenses

4,508
-
4,508
1,546

Use of premises

Bank charges

1,499
-
1,499
3,115

Use of premises

Audit fees
-
2,000
2,000
2,000
Governance
Legal and professional
-
8,275
8,275
6,962
Governance
225,102
10,275
235,377
224,097
Analysed between
Fundraising
56,250
-
56,250
53,079
Charitable activities
168,852
10,275
179,127
171,018
225,102
10,275
235,377
224,097

Governance costs includes payments to the auditors of £2,000 (2023: £2,000) for audit fees and £815 (2023: £815) for non audit services.

10
Other
Restricted
Restricted
funds
funds
2024
2023
£
£
Financing costs
16,574
16,975
11
Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the company during the year in their capacity as trustee. T Swinton, a trustee during the year, received a gross salary £17,293 (2023: £15,199) during the year in respect of his position as theatre technician.

PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 19 -
12
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
Operating of theatre
9
8
Employment costs
2024
2023
£
£
Wages and salaries
63,894
60,659
Other pension costs
850
911
64,744
61,570
There were no employees whose annual remuneration was more than £60,000.
13
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

14
Tangible fixed assets
Leasehold improvements
Computer equipment
Total
£
£
£
Cost
At 1 August 2023
2,054,980
16,168
2,071,148
At 31 July 2024
2,054,980
16,168
2,071,148
Depreciation and impairment
At 1 August 2023
420,112
16,168
436,280
Depreciation charged in the year
70,629
-
70,629
At 31 July 2024
490,741
16,168
506,909
Carrying amount
At 31 July 2024
1,564,239
-
1,564,239
At 31 July 2023
1,634,868
-
1,634,868
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 20 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
12,076
9,585
Other debtors
2,767
2,767
Prepayments and accrued income
30,806
10,735
45,649
23,087
16
Loans and overdrafts
2024
2023
£
£
Debenture loans
387,212
397,057
Other loans
30,000
44,000
417,212
441,057
Payable within one year
10,263
9,845
Payable after one year
406,949
431,212

The above loans from members, are provided as concessionary loans for the purpose of furtherance of the charitable activates of the charity. The loans are repayable over 5 years, after a 3 year repayment holiday starting from the date of the loan. No interest is payable on these loans and no security has been given by the charity.

17
Creditors: amounts falling due within one year
2024
2023
£
£
Borrowings
10,263
9,845
Other taxation and social security
5,154
8,403
Trade creditors
6,137
5,912
Other creditors
4,179
12,246
Accruals and deferred income
21,114
36,113
46,847
72,519
18
Creditors: amounts falling due after more than one year
2024
2023
£
£
Borrowings
406,949
431,212
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
850
911

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Restricted funds

The income funds of the charity include the following funds comprising of unexpended resources:

At 1 August 2023
Incoming resources
Resources expended
At 31 July 2024
£
£
£
£
Redevelopment fund
1,090,348
-
(82,134)
1,008,214
LED Lighting
-
15,000
-
15,000
1,090,348
15,000
(82,134)
1,023,214
Previous year:
At 1 August 2022
Incoming resources
Resources expended
At 31 July 2023
£
£
£
£
Redevelopment fund
1,172,883
-
(82,535)
1,090,348

A transfer has been made between General Funds and the Redevelopment Fund to reflect the expenditure on the theatre redevelopment associated liabilities.

21
Unrestricted funds

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.

At 1 August 2023
Incoming resources
Resources expended
Transfers
At 31 July 2024
£
£
£
£
£
Technical equipment upgrades
3,310
-
-
(3,310)
-
General funds
257,713
313,265
(363,787)
3,310
210,501
261,023
313,265
(363,787)
-
210,501
PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
21
Unrestricted funds
(Continued)
- 22 -
Previous year:
At 1 August 2022
Incoming resources
Resources expended
Transfers
At 31 July 2023
£
£
£
£
£
Technical equipment upgrades
3,310
-
-
-
3,310
General funds
210,708
313,740
(266,735)
-
257,713
214,018
313,740
(266,735)
-
261,023

The designated fund for technical equipment upgrades was no longer required at the year end and has been transferred into general unrestricted funds.

22
Analysis of net assets between funds
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
general
designated
2024
2024
2024
2024
£
£
£
£
At 31 July 2024:
Tangible assets
115,863
-
1,448,376
1,564,239
Current assets/(liabilities)
124,638
-
(48,213)
76,425
Long term liabilities
(30,000)
-
(376,949)
(406,949)
210,501
-
1,023,214
1,233,715
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
general
designated
2023
2023
2023
2023
£
£
£
£
At 31 July 2023:
Tangible assets
120,932
-
1,513,936
1,634,868
Current assets/(liabilities)
180,781
3,310
(36,376)
147,715
Long term liabilities
(44,000)
-
(387,212)
(431,212)
257,713
3,310
1,090,348
1,351,371
23
Nature and purpose of funds

General fund

This fund is unrestricted and was set up by the company to fund the day-to-day running of the theatre.

 

Redevelopment fund

This fund is restricted and was set up in 2013 for the sole purpose of funding the theatre refurbishment and extension project.

 

The majority of this fund is now represented by tangible fixed assets, namely leasehold improvements.

PEOPLE'S THEATRE ARTS GROUP LIMITED
(LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 23 -
24
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

Amounts owed to related parties
2024
2023
£
£
Entities with common trustees
4,000
4,000
Trustees
10,000
18,000
14,000
22,000

All amounts outstanding are unsecured and interest free.

 

The amount due from entities with common trustees is repayable on demand, all other amounts are repayable equally over 5 years, after a remaining period of 2 years without repayment.

The following amounts were outstanding at the reporting end date:

Amounts owed by related parties
2024
2023
£
£
Entities with common trustees
1,710
1,710
1,710
1,710

No guarantees have been given or received.

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