Directors’ and Trustees’ Report for the Year Ended 31 August 2009

Structure, Governance and Management

Governing document

The Joseph Rowntree Theatre is a company limited by guarantee governed by its Memorandum and Articles of Association dated 12 March 2003. We became a registered charity with the Charity Commission for England and Wales from 2 July 2003.

Appointment of Trustees

Applications to join the Board as a Trustee are governed by the Theatre Recruitment Policy (dated June 2005). The Board is elected by the members at the Annual General Meeting. The Trustees of the Charity are appointed by the members. Wherever practicable, Trustees are recommended for any vacant Director positions within the Company. The three Trustee roles are either a training ground where experience and understanding of the running of the business can be obtained while a Director position becomes vacant, or for retiring Directors who find they have less time to commit to the business that is required for a Director role.

Trustee induction and training

New Trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the Charity. During their induction they meet key volunteer workers and other Trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Organisation

The Theatre is managed and operated entirely by voluntary staff with the exception of a part time cleaner whose services are provided through a contract cleaning company.

The principle operating roles are duty managers, stage managers, technical staff and front of house staff. The Board attributes a value to the services of volunteer staff in the region of £66,700 based on market salary and wage rates for these roles in this financial year.

The Board remains grateful to the over 100 volunteers who are needed to keep the Theatre running at an affordable price for the amateur groups, schools and youth organisations who hire it. It is one of the great strengths of community theatre that such a voluntary effort can be relied upon and every effort is made to encourage new volunteers to come forward and thus safeguard the future of this wonderful facility.

Decisions of the Board are made by majority voting.

Related parties

Nestlé (UK) Limited is the Charitable Company’s landlord. A 21 year lease has been negotiated for the occupation of the Theatre at an annual rental of £1. In addition, Nestlé (UK) Limited has agreed to pay the Theatre’s utility bills, expected to be in the region of £20,000 per annum, for a period of 5 years during the Charitable Company’s formative years.

Risk management

The Board undertakes an annual review of all SWOT risk management assessments, along with all health and safety risk assessments for the operation of the Theatre. The reserve policy is also subject to an annual review.

Objectives and activities

The objects of the Charity are the provision of an affordable facility for the use of the community of the City of York and its surrounds, for the presentation of dramatic arts, both as performers and an audience.
The provision of a meeting and social venue for the community.
The advancement of education in the performing arts in the City of York Our range of customers remains diverse, encompassing all our charitable aims.

The following organisations hired the Theatre during the year:

Group name	Type of organisation. All based in York unless stated otherwise	Number of Under 16s performing	No. of Times Used Theatre
Al Morrison’s Blues Experience	Concert	0	1
Anna’s Academy of Dance	Dance School (Snaith)	100	1
Back to Broadway	Professional Touring Company (Surrey)	0	1
Centurion Show Band	Community Band for people aged 6 to 25	39	1
City of York Council	School Poetry Competition	100	1
Ebor Dance	City of York Council — Dance performances with children from local schools	210	1
Evelyn Witcombe School of Dance	Dance School	61	1
Fanfare	Brass Band	100	2
Flying Ducks Youth Theatre	Theatre group for young people aged 11 to 18	40	1
Generation Groove Band	Community Band	60	2
Lisa Marie School of Dance	Dance and Drama School	26	1
Lymelights Ltd	Theatre School for children aged 6 to 16	30	1
New Earswick Musical Society	Amateur Theatre Group	23	2
Northern Musical Theatre Company	Amateur Theatre Group	0	2
Oddsocks	Professional Touring Company (Derby)	0	1
Patricia Veale School of Dance	Dance School	87	1
Rowntree Players	Amateur Theatre Group	30	4
Shepherd Group Brass Band	Brass Band	53	2
Victoria Rooke School of Dance and Drama	Dance and Drama School	100	1
York Light Opera	Amateur Theatre Group	0	1
York Musical Theatre	Amateur Theatre Group	0	1
York Opera	Amateur Theatre Group	0	1
York Stars	Amateur Theatre Group	32	1
York Scout and Guide Gang Show	Local Scouting Community	90	1
York Stage Musicals	Amateur Theatre Group	0	3
Yvonne Hoque School of Dance	Dance School	100	1
Total		1281	36

The Trustees believe they have complied with the duty in section 4 of the 2006 Charities Act to have due regard to guidance published by the Charity Commission in respect of public benefit.

Achievements and performance

Managing Director’s Report

This report chronicles another highly successful year at the Joseph Rowntree Theatre. We have experienced high levels of demand from local organisations to hire the theatre for many differing types of performance and, generally, attendance levels and audience satisfaction has reached an all time high. In our eighth year of operating this beautiful grade II listed theatre we feel we can now truly say we are meeting both our charitable objectives and our broader objective to provide Community Theatre facilities to the residents of the City of York. I and my fellow Board members are proud to be associated with such a successful community organisation.

Over this financial year the theatre has been used by 26 different groups from the York area and beyond and the total number of performances held was 112.

I would like to express my gratitude to my fellow Board members and our team of 96 stewards and 41 stage crew who all give their time freely. Without these willing volunteers the theatre would not be able to continue to be a wonderful asset to the City of York.

During February 2009 the theatre completed the installation of its new heating system which, at a cost of £97,198 is to date the largest single investment in the theatre. We look forward to all our users enjoying a warm and comfortable theatre for years to come.

Since the Joseph Rowntree Theatre Limited was handed the operational management of the theatre in August 2001 we have been able to invest over £250,000 in updating and improving the facilities for the community of York to enjoy. This has been achieved through the exceptional generosity of charity trusts, local business and local residents in addition to our operating surpluses and fundraising activities.

The improvements made over the past 8 years include:

installation of a new stage lighting system with expanded capabilities;
installation of a new sound system;
complete replacement of seating and carpets;
redecoration of the entire internal fabric returning to the original colour scheme;
reinstatement of the original auditorium lighting;
new heating system.

The above improvements have brought the facilities at the theatre up to date and usable in the 21st century by the wider community of York as both performers and audience members.

End of Financial Support

August 2009 marks a milestone in the life of the Joseph Rowntree Theatre as the excellent support "in kind" from Nestlé (UK) Limited comes to an end. Nestlé have, since our formation supported us through the supply free of charge all our utilities, services and general maintenance support.

We would like to thank Nestlé (UK) Limited for their encouragement and support over the past 8 years. The company continues to lease the theatre from Nestlé (UK) Limited for £1 annual rent. Whilst we have been grateful for the substantial support from Nestlé in our early years, the removal of this subsidy, particularly in relation to the ever rising gas and electricity costs pose new challenges for the board in the next, and future years.

It is the Board’s intention that the affordability of the theatre to users remains at the centre of all that we do and ensure that we maintain our charitable objective to provide an affordable facility for the community. In addition to our financial prudence the Board will be seeking alternative sources of financial support during 2009/10.

Fundraising Activity

Over the year we have been generously supported by Jo and Don Pears who have organised 3 “Music Night” concerts as well as 2 concerts by the Tuesday Singers which together raised over £4,000.

A group of our stewards got together and organised a bric-a-brac, tea coffee and cakes at St Crux Church in York City Centre and raised just over £1,000.

The Board has now invested this money in replacing aging stage lights which have been in use for over 30 years and were in desperate need of replacement.

Our focus over the next year is to consolidate our fundraising activity to continue to improve and enhance the facilities that are available to our Community Users to enable them to benefit from state of the art equipment more commonly found in larger venues whilst ensuring we remain affordable.

Nestlé South Development

During the year the area immediately in front of the theatre was defined as a conservation area and Nestlé (UK) Limited have vacated their factory site immediately opposite the theatre. We will be ensuring that throughout the development of the site the theatre’s views and interests are represented.

The development of Nestlé South presents both threats and opportunities to the theatre’s operation. The factory site has been abandoned and the area opposite the theatre is starting to look uncared for and overgrown. The poor appearance of the local area may affect audience attendance and the local community perception of the theatre.

The theatre board are keen to ensure that the Joseph Rowntree Theatre is an integral part of the development of Nestlé South and the new facilities and amenities harmonise and make the area around Haxby Road an excellent environment for the local community.

75th Anniversary

The board are currently developing events to mark the Theatre’s 75th Anniversary during 2010. The Theatre opened to the public on 18 November 1935 and with the exception of the Second World War has been in continuous operation since.

The Joseph Rowntree Theatre has, throughout this period, been at the centre of community theatre in York. The facilities available and the dedication of so many people over 75 years have given the wider community of York lots of opportunities to perform and begin their careers in the entertainment industry going on to perform or work behind the scenes in the West End and regional theatres, Television and Film.

The plans for the celebrations are being developed at the time of writing this report, however they will include a celebratory black tie ball to be held at St Peters School, York on the 17 July 2010.

Financial Review

Financial Summary

The Charity made an operational surplus of £15,409, after providing for depreciation, of £14,555 and raised a further £5,069 from fundraising activities. Income was £72,779 whilst expenditure was restricted to £52,301, mainly because of the Board’s desire to complete the funding of the capital heating project during this year. As a consequence the cash and bank balance has reduced significantly to £37,435.

As a result of the withdrawal of support from Nestlé (UK) Limited the board have taken the decision to review its reserve policy in the light of these changing circumstances. This is explained later in the report.

Principal Funding Sources

The Charity continues to be principally dependent on income generated through hiring the Theatre out to other organisations (£38,473) and front of house sales (£21,233) with the remaining income made up from hiring out of equipment and vending machine takings.

Investment powers and policy

Under the Memorandum and Articles of Association, the Charitable Company has the power to make any investments which the Trustees see fit. However the Charity did not hold any investments during the year ended 31 August 2009 nor does it have any plans for the immediate future. The Charity holds a savings account with its bankers to maximise its income.

Reserves policy

From its inception the Board have consciously adopted an extremely prudent financial policy in that no capital or revenue improvements have been committed until the necessary funds have been raised and available. As a result we have been able to invest some £250,000 in capital improvements without redress to loan finance or overdraft facilities and ensured monies raised from the charitable and business sector have been used directly for the purpose that they were given.

We have adopted a strict reserve policy and have for a number of years held a minimum cash reserve of £10,000 to reflect both the relative age of the new company and the fragility of the entertainment industry, even at a community level. A consequence of this is that the Charity carries a relatively high level of cash balance but we feel that this is essential to ensure the financial stability of the company.

Due to the end of the financial support from Nestlé (UK) Limited the Trustees have taken the decision to increase the operating reserve from £10,000 to £20,000 for the financial year 2009- 2010 to ensure the transfer of costs to the theatre happen smoothly and the theatre is able to operate successfully.

In addition, prior to commissioning a full survey of the fabric of the building the Trustees have introduced a maintenance reserve of £10,000.

The Trustees continue to plan for future decoration of the theatre in 2013-2014 and reserve some funds each year accordingly, this reserve now stands at £9,000.

The unrestricted operating fund represents the Charity’s free reserves which are retained to provide initial funding for future productions and projects and for the general running costs of the theatre. This fund has increased to £145,365 during the financial year principally due to operating surplus in the year. Within the unrestricted funds are designated reserves amounting to £19,000.

The restricted fund is represented by the Theatre Improvement Fund and as the name suggests is used to meet capital investment projects. Further details about these funds are contained in the notes to the accounts. The balance on this fund at the year end was £98,334.

The level of reserves is felt to be sufficient to provide adequate financial flexibility.

Plans for future periods

The coming year is filling up with many of the regular users of the theatre; in addition we have attracted a few new hirers from both the local community and professional touring companies.

The Board will be looking to consolidate its finances through the current tough economic climate to ensure the theatre can continue to operate for many years to come.

We look forward to the challenges of the year ahead.

Trustees’ responsibilities in relation to the financial accounts

Company law requires the trustees to prepare financial accounts that give a true and fair view of the state of affairs of the charity at the end of the financial year and of its surplus or deficit for the financial year. In doing so the trustees are required to:

Select suitable accounting policies and then apply them consistently;
Make sound judgements and estimates that are reasonable and prudent; and
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and enables them to ensure that the financial accounts comply with the Companies Act 2006 and applicable charity law. The trustees 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.

Members of the Board

Members of the Board, who are Directors for the purpose of company law and Trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 1.

Exemption

This report has been prepared in accordance with the special provisions of the Companies Act 2006 applicable to small companies.

By order of the Board

V Tweddell
Company Secretary
8 March 2010