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2023-03-31-accounts

Charity registration number 1007491

Company registration number 02672171 (England and Wales)

PHOTOFUSION EDUCATIONAL TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

PHOTOFUSION EDUCATIONAL TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

K A Barron (Appointed 13 April 2023) A Luvera E Odida (Appointed 10 May 2023) N Shipley (Appointed 10 May 2023) A Williams (Appointed 10 May 2023) G C P Rayner

Charity number 1007491 Company number 02672171 Principal address 2nd Floor 6 Canterbury Crescent London SW9 7QD Registered office 3rd Floor Great Titchfield House 14-18 Great Titchfield Street London W1W 8BD Independent examiner Sam Rogoff & Co Ltd 3rd Floor Great Titchfield House 14-18 Great Titchfield Street London W1W 8BD

PHOTOFUSION EDUCATIONAL TRUST

CONTENTS

Page
Trustees' report 1 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 12

PHOTOFUSION EDUCATIONAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

Charity details

Charity registration number: 1007491 Company number: 02672171

Principle office address and registered office address: 2nd Floor, 6 Canterbury Crescent London SW9 7QD

Website: www.photofusion.org

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 trust'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)" (effective 1 January 2019).

Objectives and activities

The object for which the charity was established is to advance education for the public benefit by the promotion of the photographic arts and a training centre providing open access to facilities, resources, skills training and other services using both analogue and digital technologies. We seek to attract users to our on-site facilities whilst also providing outreach services to Lambeth's statutory and voluntary sectors.

We are conscious that our on-site facilities and our ability to offer open access to facilities will be restricted in 2023-24 and possibly 2024-25 due to the capital build project and move into our new home however, once this has been completed, the Trust will be able to continue to meet its objectives, and even more so, with new and better facilities.

Our Values

Photography in all its guises is for everyone and everyone is welcome in our space. We are a home for the makers.

Our Mission

For 30 years, Photofusion has championed, supported and celebrated photography and photographers. While we are well known for our darkrooms, gallery space, digital printing facilities, and education programme, what we are most proud of is the community of photographers and makers who have been a part of Photofusion over the years. Photofusion was established in 1990. Among the founding members were a group of female photographers who were concerned about the way women were portrayed in the media. They formed a cooperative to document real women doing real things: doctors, nurses, teachers, mothers. Representation, inclusion and diversity have always been at the heart of what we do. Many important images have been made and shown at Photofusion. We have supported some of the UKs most well-known photographers at early stages of their careers. It’s exciting to think that the next “big thing” may just be a small thing taking root at this very moment in our darkrooms, photographic studio, scanning room, youth mentoring programme or monthly Saturday Session.

Our Vision

To be a centre of excellence and education, within the visual arts sector, and photography in particular which consistently reflects ambition, quality, inclusivity and relevance.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.

PHOTOFUSION EDUCATIONAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Activities

Review of Charitable Activities

The charitable activities of PET were minimal during the period apart from the establishment of the Rayner Glover Prize. This new award of £3,000 was established by Gina Glover and Geof Rayner, founders of Photofusion and trustees of PET. The prize recognises photographic work that raises questions about our fragile environment and pressing issues of climate. It was awarded to a member of Photofusion whose work was included in the annual Salon exhibition of selected members’ work. The £3,000 donation will be recognised in the 2023-24 accounts.

The charity also received a £100 donation from a customer, which was match funded by Benevity (£200 total) who are an organisation supporting big brands to create social impact. The Trust received a donation from Photofusion Ltd in the year and this will support our business strategy across 2023-24 and 2024-25 as we move into our new home under the leadership of a new Director.

Fundraising Activities

PET did not undertake any fundraising during 2022-23, however grant income was awarded to the Trust after the year-end from a successful bid to the Lambeth Council Future Workspace Fund which will enable Photofusion to undertake a significant building project across 2023-24 which will result in a purpose-built new premises for the organisation on Beehive Place.

We are grateful to the following funders for their support in 2022-23 and after the year-end;

Arts Council England Future Workspace Fund Lambeth Council

Achievements and performance

Significant activities and achievements against objectives

Photofusion Educational Trust (PET) performed minimal activities in 2022-3 as it was effectively dormant during that period and in discussion with Photofusion Ltd about a possible merger. The trustees were coming the conclusion of long-term conversations with Photofusion Ltd with a view to changing the structure of the two organisations so that Photofusion Ltd becomes the business arm of PET and they have a linked relationship which will enable the organisation to be more robust in its endeavours. PET will be able to apply for funding from trusts and foundations. Also, as part of the charity structure Photofusion Ltd will be eligible for Business Rate Relief upon moving into new premises. There has been a capital grant received from Lambeth council for the new premises.

We will continue to champion the artists' careers of people from disadvantaged backgrounds, continuing to work extensively with young people as we are one of Lambeth Council's adult learning providers. We will continue to work across Brixton delivering collaborative programming with partner organizations in the area, and beyond to lead socially engaged practice in photography and the arts. The new premises (moving in March 24) is where we will provide a shared workspace and members room, photo-studio, street-level gallery, education and community spaces, scanning rooms and low impact darkrooms. There will be specialist workspace for photography professionals and other creative and cultural people / businesses. The creative freelance economy is still severely impacted by covid-19 and we are continuing to support sector recovery through new opportunities and maintaining our reputation as an affordable home for makers, sharing our specialist equipment for freelance photographers and young people starting out on their creative expressions.

The main achievement in 2022-23 is fundraising, which has resulted in the capital grant and 3rd party match funding (all received after the year-end but all the significant work in securing these funds happened in 2022-23). Budgets are used as a measure to assess the charity’s performance.

PHOTOFUSION EDUCATIONAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Financial review

Principal Funding Sources

Photofusion Ltd (whose profits are donated in full to PET) continues to be revenue funded by Arts Council England as a National Portfolio Organisation (NPO). The company also runs a business that produces earned income that covers around 40% of total incomings.

Going concern

We consider the organisation to be a going concern due to the minimal expenditure anticipated in 2023-24, with the exception of the capital project for which all income and expenditure is run through the charity. This project is being managed robustly with Trustee oversight to ensure no anticipated overages.

Reserves policy

It is the trustees’ policy to hold a sum not less than three months administration and overheads costs as a reserve. The trustees consider that this sum is sufficient to ensure that the company can meet financial obligations.

Reserves this year have increased considerably from the prior year and the above policy. This is partly in anticipation of the charity’s commitment of £25,000 towards its build costs in the following year. Also, partly due to substantial building-based costs expected to commence in the 2024-25 year.

The carried forward fund at 31 March 2023 is £83,951

At the end of 2022-23 we held no restricted funds. This was before the funds for our new premises entered our accounts.

Major risks

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity and are satisfied that systems and procedures are fit for purpose and these are discussed at quarterly board meetings.

Structure, governance and management

The trust is a company limited by guarantee . The charity was incorporated on 17 January 1992 and is governed by its Memorandum and Articles of Association as amended on 28 Apr 2023.

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:

K A Barron (Appointed 13 April 2023)
A Luvera
E Odida (Appointed 10 May 2023)
N Shipley (Appointed 10 May 2023)
A Williams (Appointed 10 May 2023)
G C P Rayner
M Mullen (Resigned 10 May 2023)
G Glover (Resigned 10 May 2023)

Recruitment and appointment of trustees

The management of the company is the responsibility of the Trustees, who are appointed under the terms of the Articles of Association. New Trustees are proposed by serving Trustees or the company’s executive team and elected with a majority vote by the Trustees. 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.

Organisational structure

The Director reports to the Trustees at quarterly board meetings. The Director acts as Company Secretary to the board.

PHOTOFUSION EDUCATIONAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Induction and training of trustees

An induction process has been established for new Trustees. Separate meetings are arranged with the Chair and executive team. In addition, Trustees are presented with a welcome pack, including Charity Commission guidelines, a list of board roles and responsibilities, the company business plan, company handbook and Memorandum and Articles of Association. Trustees are also offered the opportunity to attend training for board development.

This report has been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

The trustees' report was approved by the Board of Trustees.

G C P Rayner

Trustee

27 March 2024

PHOTOFUSION EDUCATIONAL TRUST

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF PHOTOFUSION EDUCATIONAL TRUST

I report to the trustees (who are also Directors for the purpose of company law) on my examination of the financial statements of Photofusion Educational Trust (the trust) for the year ended 31 March 2023, which comprise the Statement of Financial Activities, the Balance Sheet and related notes.

This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the trustees of the trust (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 trust 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 trust’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.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the financial statements present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.]

Independent examiner's statement

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:

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.

Mrs Emily Brown BSc (Hons) FCA Sam Rogoff & Co Ltd

3rd Floor Great Titchfield House 14-18 Great Titchfield Street London W1W 8BD

Dated: 27th March 2024

PHOTOFUSION EDUCATIONAL TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted Unrestricted
funds funds
2023 2022
Notes £ £
Income from:
Donations and legacies 3 87,417 5,000
Charitable activities 4 6,221 3,222
Net income and movement in funds 81,196 1,778
Reconciliation of funds:
Fund balances at 1 April 2022 2,755 977
Fund balances at 31 March 2023 83,951 2,755

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

PHOTOFUSION EDUCATIONAL TRUST

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due within
one year
10
Net current assets
The funds of the trust
Unrestricted funds		 2023
£
87,100
2,851
89,951
6,000		 £
83,951
83,951
83,951		 2022
£
-
2,871
2,871
116		 £
2,755
2,755
2,755

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on 27 March 2024

G C P Rayner

Trustee

Company registration number 02672171 (England and Wales)

PHOTOFUSION EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Photofusion Educational Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 3rd Floor, Great Titchfield House, 14-18 Great Titchfield Street, London, W1W 8BD.

1.1 Accounting convention

The financial statements have been prepared in accordance with the trust's Memorandum and Articles, 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 trust is a Public Benefit Entity as defined by FRS 102.

The trust 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 trust. 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 trust 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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the trust.

1.4 Income

Income is recognised when the trust 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 trust 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 trust 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.

Donated services and facilities are included at the value to the charity, where this can be quantified.

PHOTOFUSION EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

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.

1.6 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.

1.7 Financial instruments

The trust 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 trust's balance sheet when the trust 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 trust’s contractual obligations expire or are discharged or cancelled.

PHOTOFUSION EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

2 Critical accounting estimates and judgements

In the application of the trust’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.

3 Income from donations and legacies

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Donations and gifts 87,417 5,000
4 Expenditure on charitable activities
Expenditure Expenditure
2023 2022
£ £
Direct costs
Charitable expenditure - 3,000
Share of support and governance costs (see note 5)
Support 2,021 222
Governance 4,200 -
6,221 3,222
Analysis by fund
Unrestricted funds 6,221 3,222
5 Support and Governance costs allocated to activities
Total Total
2023 2022
£ £
Bank Charges 221 222
Accountancy 1,800 -
-
2,021 222

PHOTOFUSION EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

5 Support and Governance costs allocated to activities

Support and Governance costs allocated to activities
Governance costs comprise:
Independent Examination fee		 (Continued)
2023
2022
£
£
4,200
-
4,200
-		 (Continued)
2023
2022
£
£
4,200
-
4,200
-
-

6 Trustees

None of the trustees (or any persons connected with them) received any remuneration, reimbursed expenses or benefits from the trust during the year.

7 Trustees/ Members

The average monthly number of Trustees during the year was:

2023 2022
Number Number
8 8

There were no Trustees/ Members whose annual remuneration was more than £60,000.

8 Taxation

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

9 Debtors

Debtors
Amounts falling due within one year:
Amounts owed by subsidiary undertakings
Creditors: amounts falling due within one year
Amounts owed to subsidiary undertakings
Accruals and deferred income		 2023
£
87,100
2023
£
-
6,000
6,000		 2022
£
-
2022
£
116
-
116

10 Creditors: amounts falling due within one year

PHOTOFUSION EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

11 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. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At
Designated funds for the use on building
General funds
Previous year:
At
General funds		 1 April
2022
Incoming
resources
Resources
expended
At 31 March
2023
£
£
£
£
-
25,000
-
25,000
2,755
62,417
(6,221)
58,951
2,755
87,417
(6,221)
83,951
1 April
2021
Incoming
resources
Resources
expended
At 31 March
2022
£
£
£
£
977
5,000
(3,222)
2,755

12 Related party transactions

Transactions with related parties

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

The wholly owned subsidiary, Photofusion Ltd, made donations in the year to Photofusion Educational Trust, to be paid shortly after the year end. The balance of donations to be received totals £87,215.77 (equal to the total donations made in the year).

The balance is to be paid in cash, with no conditions. No guarantees were received in association with this balance and it is not secured.

13 Subsidiaries

These are the financial trust financial statements for Photofusion Educational Trust and do not encompass any group entities.

Photofusion Educational Trust is the sole member of Photofusion Ltd, a company limited by guarantee under company number 02629158.

Separate financial statements are required to be prepared by law. Consolidated financial statements for Photofusion Ltd and Photofusion Educational Trust are not required as both entities qualify as small and are eligible for exemption.

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