Registered number: 03031923 Charity number: 1046958 BOW ARTS TRUST (A company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 RPeJCC Chartered Accountsnts & Statutory Auditor 40 Gracechurch Street London EC3V OBT
BOW ARTS TRUST (A Company limited by guarantee CONTENTS Page Reference and administrative details of the Parent Charity, its Trustees and advisers Trustees. report Trustees, responsibilities statement Independent auditors, report on the financial statements Consolidated statement of financial activities 9-12 13 Consolidated balance sheet 14-15 Parent Charity balance sheet Consolidated statement of cash flows 16-17 18 Parent Charity statement of cash flows Notes to the financial statements 19 20-48
BOW ARTS TRUST IA company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE PARENT CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 Trustees C Buss (appointed 2 April 2024) M Coles J Lewis {appointed 15 November 2023) R Madan E Marshall T Masunda {appointed 15 November 2023) S Nibbs (appointed 15 November 20231 Dr M Owens S Pallister T Rhodes-Taylor (appointed 2 October 2023) N Smales B Smith C Smith, Chair C Swift B Tucker (appointed 15 November 2023} Company registered number 03031923 Charity registered number 1046958 Registered office 183 Bow Road London E3 2SJ Company secretary M Baettig Chief executive officer M Baettig Independent auditors RPG Crouch Chapman LLP 40 Gracechurch Street London EC3V OBT Bankers Lloyds Bank PIC PO Box 1000 BX1 1LT Aldermore Bank 1st Floor, Block B Western House Lynch Wood Peterborough PE2 6FZ Page 1
BOW ARTS TRUST (A company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Trustees present their annual report together with the audited financial statements for the year 1 April 2023 to 31 March 2024. The Trustees confirm that the annual report and financial statements of the company comply with the current statutory requirements. the requirements of the company's governing document and the provisions of the Statement of Recommended practi ISORP), applicable to charities Preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 {effective 1 January 2015) as amended by Update Bulletin (effective 1 January 2015}. Since the charity and the group qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 {Strategic Report and Director's Report) Regulations 2013 is not required. Objectives and Activities OBJECTIVES Bow Arts Trust's charitable objectives are: The provision and maintenance of an art gallery or art space fr)r exhibition to the public of modem and fine art, design and applied art and of work done by students and young emerging artists,. The promotion and encouragement of the education of the public in the arts, through an art gallery or art galleries, art spaces and elsewhere., The education of children, students and teaching staff in the arts in schools and other educational establishment5', and The relief of povety amongst emerging artists by the provision of studio space in which they may create art and by the provision of residential accommodation for emerging artists and Iheir partners andlor dependents. MISSION STATEMENT We create inspirational, supportive environments where artists and communities interact. learn and flourish. We make creative activity sustainable within our local communities. creating opportunities to work, learn and enjoy affordable, lifelong access to the arts. Both the charitable objectives and mission of Bow Arts Trust are met through the delivery of services by four distinct departments,. Creative Workspace, Learning. Arts & Events and Enterprise & Placemaking, supported operationally by the Core Services Department. In formulating the charity's plans and objectives for the period, the trustees and management have taken in to account the Charities Commission guidan on public benefit. Each of the sections that follow includes a summary of performance and achievements for the year, incorporating impacts and activities undertaken to further public benefit. CREATIVE WORKSPACE The Trust's principal funding continues to be earned through licence fees from artists for the provision of creative workspace and rents receivable for Livelwork spaces. During the year ending 31 March 2024. Bow Arts took on new studios in Camden, additional guardian properties in Thamesmead and reopened our Rum Factory studios in Wapping. We now provide a total of 794 affordable studios and livelwork flats across the portfolio. The portfolio consists of Bow Road {across buildings), P1, Stratford, Old Manor Park Library, Leegate. Catford DEK, Canada Street. IceHouse Court, Royal Albert Wharf, Lakeside Centre, Thamesmead Flats, Leyton, Riverside Mill, Durham Street Studios, Camden Studios lover three buildings), Three Waters and Rum Factory. These sites are all occupied on a leasehold basis except for Three Waters. which we have purchased on a 999-year lease. Page 2
BOW ARTS TRUST {A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 EDUCATION & LEARNING Bow Arts Learning team works closely with schools to develop bespoke programmes that support the delivery of schools, development plans and enrich their creative education provision. The resulting programmes enhance the confidence, skills and qualifications of children and young people. creating pathways into creative industries employment. Workshops are bespoke and tailored to the needs of the school, through careful collaborative planning beeen project manager. artist and teacher. In 2023-24 we worked with 80 school clients {86 in 22-23) and worked with 8,163 individual participants (10,264 in 22-23). The Access to Creative Careers Programme, which aims to bridge the gap befween art and design in schools with professional practice in the creats've industries- is continuing to grow. We delivered three events taking place in Spring 2024 in our hubs of Newham, Barking and Dagenham and Thamesmead, with over 300 young people attending to meet with creative professionals, take part in creative activities and learn more about creative ourses at universities and colleges. This year saw the culmination of the Making a Mark project with the Enfield Town Schools Partnership, which saw nine schools work closely with five artist educators on a Iwo-year project. Through CPD sessions, coteaching and consultation, the projects aimed to develop teacher knowledge and skills in an art form identified by the school, with the goal of embedding the practice within their classroom practice and school curriculum. This was part of the Teacher Development Fund, a Paul Hamlyn Foundation fijnded project which sees a limited number of grants annually 90 to arts organisations and school partnerships nationwide on teacher-focused activity. Schools will be sharing the children's outcomes in the artform at an exhibition in April, and the lead artists will lead training for our artist educator pool on delivering effective CPD. Another large-scale project which finished this year was the Creativity and Literacy project with the Early Years team at London Borough of Barking and Dagenham. which was extended from working with ten nursery settings in 22-23 to a further ten in summer tem of 23-24. The extension, a result of the positive feedback from nursery practitioners in the Spring Term. meant that Bow Arts artist educators worked with a quarter of nurseries in the borough, with all settings receiving a book of activity plans to use in their practice. The project culminated in an exhibition in Barking Learning Centre in July. In a continuation of our relationship with PHF, in July we started a new Arts Based Learning Grant, which allows us to continue some of the legacy work from the previous Social Justice project, including one project in Iwo primaries in Croydon focused on empathy and relationships and one on diversifying the curriculum to ensure it is relevant to the children and young people in the school. In addition it funds our Artist CPD and Artist Educator Trainee Programme, public Teacher CPD programme and part-funds one of our consortia of schools in Barking and Dagenham. GALLERY & EVENTS The Nunnery Gallery provides a year-round programme of free exhibitions and events for local and wider communities, celebrating local heritage and championing emerging artists across all artforms. The gallery hosted four exhibitions in 23-24 alongside a number of shorter private hires.. Maria Amidu, Living in Fear of Quicksand.. supported with Arts Council England funding and in partnership with Tower Hamlets Local History Library & Archive, the exhibition explored a fragile relationship with home drawn from Maria's experience of early years on the Lincoln Estate, Bow. Lucy Orta. Traces-. Stories of Migration- led by intemational artist and researcher Lucy Orta, in partnership with London College of Fashion's Making for Change as part of The Portal Centre for Social Impact, the participants of the Traces.. Stories of Migration workshops came together to share textile knowledge, follow the threads of community migration in the context of the East End rag trade. and celebrate east London's history of clothing and textile industry. Page 3
BOW ARTS TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Bring Your Light.. Bow Arts x Chila Bumian present the Bow Open 2023.. curated by artist and activist Chila Burman, artists responded to the theme 'Bring Your Light, to recontextualise the possibilities of everything we have to give. Spanning a wide range of mediums and subject matter, this exhibition featured 26 artists across Bow Arts, Studios and Artist Educator programme and was a Joyful, playful, defiant, and insurgent collection of aOrk that radiated strength and courage in the fa of the everyday. Kat Anderson, Mark of Cane.. winners exhibition of the inaugural East London Art Prize. Supported by funds from Arts Council England and produced with support from Spike Island, Bristol. Kat Anderson's film Mark of Cane used the genre of Horror to explore the subjects of ancestral trauma, dispossession and the power in the returnlretrieval. The accompanying series of paperworks were hand-made and produced as part of Anderson's residency at UCL East. The Nunnery Café also had a changing series of exhibitions showcasing the works of Bow Arts studio and learning artists, providing additional ways for our artists to promote themselves and sell works. Alongside the exhibition programme, the Bow Skills programme of artist CPD provided 18 sessions across our studio sites, including sessions on pricing your athork, bid writing and fundraising, reframing finances and managing money and nurturing resilience. Bow families, our series of free creative workshops run by local artist educators, provided monthly sessions l¢)cal families across the year. Bow Families addresses the need for participatory, hands-on creative activity for local families and workshops are run alongside the Nunnery Gallery's exhibitions, drawing on show content for inspiration. The East London Art Prize events programme built on the Prize's ethos of providing ongoing support, development, and neIOrkIng opportunities for artists in east London and beyond. Featuring a constellation of workshops, talks, panels, lates, socials, labs, walks, and takeovers in collaboration with our Prize partner5 and the inaugural shortlist of 12 fantastic artists, the events programme celebrated and paid homage to the huge abundance of talent and creativity nestled in east London. ENTERPRISE & PLACEMAKING The Enterprise & Placemaking department continues to work with partners to find new opportunities for Bow Arts to embed creative practice within new propety developments and ensure we maintain a consistent pipeline of opportunities. The team manage a programme of creative activity from our hub sites in Royal Albert Wharf, Oaklands Lab and Thamesmead, growing cultural communities and reinvesting funds from artists donations and partner support to provide a wide range of support and creative opportunities to creatives and locals alike. CORE SERVICES Core services support the financial and administrative work of the trust and manage Governance on behalf of the Board of Trustees. Financial review GOING CONCERN After making appropriate enquiries. the Trustees have a reasonable expectation that the charity has adequate resources to continue in operations for the foreseeable future Churn and void rates for studios pose the greatest risk with potential impact on reserves, but the position is currently strong and is continuously monitored. For this reason, Bow Arts Trust continues to adopt the going concem basis in preparing its financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. Page 4
BOW ARTS TRUST (A company limited by guarantee) TRUSTEES, REPORT ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 PRINCIPAL FUNDING The main income streams in the year continued to be licence fees from artists for the provision of creative workspace and rents receivable for Livelwork spaces. RESERVES POLICY Total consolidated funds held at year end are £3,961,653 (2023.. £3,259,799) including £235.223 {2023'. £292,711 } restricted funds, ad detailed in note 20. Bow Arts Trust's policy, as a charity, in line with best practice. is to maintain a working reseNe of between 2 months and 4 months of gross expenditure as General Funds within Unrestricted Funds. in order to provide a cushion against unanticipated reductions in income or increases in expenditure. In order to accumulate sufficient funds to support the purchase or development of a longer-terrn interest in buildings (potentially as permanent affordable workspace or Livelwork space for artists) the Trustees have established a designated fund ('Resilience Fund,) with a nominal target of £6m. INVESTMENT POLICY Our current investment policy is to hold funds in liquid form in short notice deposit accounts for easy access. For free reserves in excess of £0.5m the board will consider investment opportunities around income bearing. high liquidity and low nsk portfolio options. Structure, Governance and Management CONSTITUTION Bow Arts Trust was founded by Marcel Baettig in 1995. Bow Arts Trust is registered with the Charity Commission (registered charity number 10469581 and is also a Company Limited by Guarantee (company number 3031923). Bow Arts Trust is established under a Deed of Trust dated 6 June 1995 and Memorandum & Articles of Association dated 6th March 1995. as amended by a Deed of Amendment dated 13th January 2006 and Special Resolutions in December 2017 and December 2022. APPOINTMENT OF TRUSTEES As set out in the Memorandum and Articles, the method of the recruitment and appointment of Trustees is through co-option during the year and then election at an AGM of the company by the members. New Trustees are recruited according to the skills needed for a balanced Board, by agreement with the existing members. TRUSTEE TRAINING AND INDUCTION New Trustees undergo induction to the organisation by the Chair of the Board and the Chief Executive during which they have the opportunity to meet members of staff and to visit sites and projects under Bow Arts Trust's management. In addition, they are asked to attend meetings of the Board as observers. All newly appointed Trustees are given a Trustee Induction Pack and must sign a Trustee Code of Conduct and agree to the Trustee Conflict of Interest Policy. Trustees are offered access to training to support them in their roles. STAFFING The Bow Arts group has 27 members of staff. Bow Arts Trust is an accredited London Living Wage employer. The gallery and events programme continues to be supported by the Shared Training and Employment Programme (STEP). Page 5
BOW ARTS TRUST (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 SENIOR STAFF PAY The salaries of senior management are reviewed annually by the Trustees through the Remuneration Committee. Salary levels are benchmarked using charity. arts and public sector management comparators. ORGANISATIONAL STRUCTURE AND DECISION MAKING During this accounting period {year ending 31st March 20241 the Trustees were the sole members of the company. All members are granted one vote per company resolution including the electionlre-election of trustees to the Board and AGM. The Board devolves certain responsibilities to the Core Services Committee which meets quarterly, approximately 4 weeks before each board meeting and the Remuneration Committee and Governance and Compliance Committee which both meet bi-annually. A full review of the sub-committee structure has been carried out in 2023-24 establishing new departmental sub committees for Arts & Events, Learning and Enterprise & Placemaking, to draw on Trustee expertise to drive departmental growth and strategy, as well as reforming the Governance and Compliance committee as Governance, Audit and Risk. The governing body of the company is the Board of Trustees which currently has 15 members. The Trustees (listed on page 1) delegate the day-to-day management of Bow Arts Trust to the Chief Executive. The Board is responsible for setting strategies and policies with the Chief Executive. Bow Arts Trading Ltd is a subsidiary of Bow Arts. The trading company was established in 2016 to deliver activity that {11 contributes to Bow Arts, charitable objectives, and {2) raises funds for the charity. RISK MANAGEMENT The Trustees have assessed the major risks to which the charity and the group is exposed, in particular those related to the operations and finances of the charity and the group, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks including the potential lack of availability of suitable property to expand or replace studios in the portfolio,. early breaks in existing leasehold property.. flood, fire or similar causing temporary destructs'on of part of the portfolio. Measures put in place to strengthen systems and mitigate risk include.. Senior management team meetings are held fortnightly Board and Core Services Committee meetings are held at least quarterly Additional sub-committees and advisory groups have been established to provide specific trustee support to indivi(Jual areas of strategic development External specialist advice is sought where appropriate under advice from the Core Services Committee or individual trustees. The Board has set out key organisational risks and delegated specific responsibilities to individual trustees to keep Ihese risks under review, monitoring and liaising with key staff as neBessary and reporting any significant risks to the Board of Trustees for action. Strategic Risk is covered at every Board Meeting, as is Horizon scanning fof any potential changes globally, economically or locally that could have a serious impact on Bow Arts charitable activity or our service users. CHANGES TO THE GOVERNING DOCUMENTS As set out in the Objectives section above. the Board of Trustees updated the Charitable Objects in December 2022 to better reflect the development and breadth of work carried out by the Trust since our inception in 1995, including a greater focus on arts education in a range of settings as well as broadening our offer to emerging artists to include affordable residential accommodation in addition to affordable workspace. In addition, the Board agreed and adopted an updated Memorandum and Articles of Association to modernize its governance agreements. Page 6
BOW ARTS TRUST IA company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Both changes were submitted and accepted by the Charity Commission and Companies House. Plans for future periods FUTURE DEVELOPMENTS We continue to bring on new studios in Camden growing to 250 studios by the end of 24-25 and growing our portfolio significantly. In Thamesmead, we have been selected to become the sole Guardian provider for Peabody Housing, tsking on up to an additional 63 guardian properties across phase 1 and 2. It remains Bow Arts long-term strategic ambition to purchase property in order to secure the Trust's future stability and in order to maintain affordable creative workspace for artists. We are currently looking at three potential purchases.. Two units in Hackney Wick through partnership with Notting Hill Housing - in May 2024 we were notified that Bow Arts has secured £455k in capital grant support from Arts Council England towards this bid. We are in early discussions regarding the purchase of our existing studios at Royal Albert Wharf Studios through the partnership with Notting Hill Housing and the GLA Docks team. We are also in discussions regarding the purchase of the Lakeside Centre, Thamesmead, through our partnership with Peabody Housing. We are also approaching the end of Stage 2 of our feasibility study to assess the viability of an affordable artists housing scheme within our Lakeside Centre studios. We are currently reviewing meanwhile tems on space in Shaftesbury Avenue: which would give Bow arts a short-term but vibrant central London location to showcase our work. including providing a space for learning and creative workshops, Nunnery Gallery exhibitions and short-tenn studiolresidency space. FUNDRAISING PRACTICES Bow Arts Trust raises additional funds to support its charitable work primarily through donations from artists, patrons and visitors. As is best practice any complainants would be referred to the Fundraising Regulator. Approved by order of the members of the board of Trustees and signed on their behalf by" C Smith Trustee Date.. C Buss Trustee Page 7
BOW ARTS TRUST (A company limited by guarantee) STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 The Trustees (who are also the directors of the Parent Charity for the purposes of company lawl 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Parent Charity and of their incoming resources and application of resources, including their income and expenditure. 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 of the Charities SORP IFRS 1021., make judgments and accounting estimates that are reasonable and prudent., state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Parent Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Parent 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 Group and the Parent Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the members of the board of Trustees and signed on its behalf by: lu 24/tl/zi C Smith Trustee Date. C Buss Trustee Page 8
BOW ARTS TRUST (A company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BOWARTS TRUST Opinion We have audited the financial statements of Bow Arts Trust (the 'parent charitable company,) and its subsidiaries {the 'group'} for the year ended 31 March 2024 which comprise the consolidated statement of fi'nancial activities, the consolidated balance sheet. the parent Charity balance sheet, the consolidated statement of cash flows, the Parent Charity Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparatson 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 Group's and of the parent charitable company's affairs as at 31 March 2024 and of the Group's 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 accordan with the requirements of the Companies Act 2006 and the Charities Act2011. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS {UKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Trustees, 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 UnrtaInt}eS relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least e1ve 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. In our evaluation of the trustees, conclusions, we considered the risks associated with the charity's business model, including the effects arising from macroeconomic UnrtaIntIeS and analysed how those risks might affect the charity's financial resources or ability to continue operations over the period of twelve months from the date when the financial statements are authofised for issue In accordan with the above, we have nothing to report in these respects. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditorfs report is not a guarantee that the charity will continue in operation. Page 9
BOW ARTS TRUST IA company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BOW ARTS TRUST (CONTINUED) other information The other information comprises the information included in the annual report other than the financial statements and our auditors, report thereon. The Trustees are responsible for the other infofmation 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. Capabllity of the audit to detect irregularities including fraud We gained an understanding of the legal and regulatory framework applicable to the charity and the industry in which it operates, and considered the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, Complian with Companies Act 2006, the Charities Act 2011 and FRS102. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to.. agreement of the financial statement disclosures to undertying supporting documentation.. enquiries of management., review of minutes of board meetings throughout the period., and obtaining an understanding of the control environment in monitoring compliance with laws and regulations. There are inherent limitations in the audit prOdureS described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit" the information given in the Trustees. report for the financial year for which the financial statements are prepared is consistent with the financial statements. the Trustees, report has been prepared in accordance with applicable legal requirements. Page 10
BOW ARTS TRUST (A company limited by guarantee INDEPENDENT AUDITORS, REPORTTO THE MEMBERS OF BOW ARTS TRUST (CONTINUED) Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion: the parent chantable company has not kept adequate and sufficient accounting records. or returns adequate for our audit have not been received from branches not visited by us., or the parent charitable company 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 Trustees, report and from the requirement to prepare a Strategic report. Responsibilities of trustees As explained more fully in the trustees. responsibilities statement. the Trustees (who are also the directors of the charitable company for the purposes 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 Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going oncern and using the going Conrn basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. Auditors, responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assuran about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors, 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedllres in line with our responsibilities, oullined above, to detect material misstatements in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, has been outline in the paragraph "Capability of the audit to detect irregularities including fraud" above. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.or .ukJauditorsres onsibilities. This description forms part of our auditors, report. Page 11
BOW ARTS TRUST {A company limited by guarantee INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BOW ARTS TRUST (CONTINUED) Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors, 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 charitable company and its members. as a body, for our audit work, for this report, or for the opinions we have formed. Jeremy Tyrrell FCA BA {Hons) (senior statutory auditor) for and on behalf of RPG Crouch Chapman LLP 40 Gracechurch Street London EC3V OBT Date.. 19 Iz4 Page 12
BOW ARTS TRUST (A company limited by guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024 Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Not6 Income from: Donations and legacies Charitable activities 68,450 47.331 775,351 2,186,833 374,080 27.183 113.315 843,801 2.234,164 374,080 27,183 113,315 957,223 1, 779, 040 399, 751 14.552 38, 883 Other trading activities Investments Other income Total income 115,781 3,476,762 3,592.543 3, 189,449 Expenditure on: Raising funds Charitable activities Other expenditure 18,174 2.293,508 405,738 18,174 2,466,777 405,738 5,810 2,206,289 389,276 173,269 10 Total expenditure 173.269 2,717,420 2.890,689 2,601,375 Net movement in funds (57,488 759.342 701,854 588, 074 Reconciliation of funds: Total funds brought forward Net movement in funds 292,711 (57,488) 2,967,088 759.342 3,259,799 701,854 2,671, 725 588, 074 Total funds carried forward 235,223 3,726.430 3,961,653 3,259, 799 The Consolidated statement of financial activities includes all gains and losses recognised in the year. The notes on pages 20 to 48 form part of these financial statements. Page 13
BOW ARTS TRUST (A company limited by guarantee REGISTERED NUMBER: 03031923 CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note Fixed assets Tangible assets 15 3,688,476 3, 734, 844 3,688,476 3, 734, 844 Current assets Debtors.. amounts falling due within one year Cash at bank and in hand 17 691,014 2,183,148 560, 809 1.316,843 2,874,162 1,877,652 Creditors.. amounts falling due within one year 18 (1,232,799 (849, 705) Net current assets 1.641,363 1,027,947 Total assets less current liabilities 5,329,839 4, 762, 791 Creditors.. amounts falling due after more than one year 19 (1,368,186 (1,502,992) Net assets excluding pension asset 3,961.653 3,259, 799 Total net assets 3,961,653 3,259, 799 Charity funds Restricted funds Unrestricted funds 20 235,223 3,726,430 292, 711 2,967,088 20 Total funds 3,961,653 3,259, 799 Page 14
BOW ARTS TRUST (A company limited by guarantee CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2024 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordan with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. C Smith Trustee Date. C Buss Trustee 3¢/69/4 The notes on pages 20 to 48 form part of these financial statements. Page 15
BOW ARTS TRUST (A company limited by guarantee REGISTERED NUMBER.. 03031923 PARENT CHARITY STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024 2024 2023 Note Fixed assets Tangible assets Investments 15 16 3.244,287 3,270.353 3,244,288 3,270,354 Current assets Debtors.. amounts falling due after more than one year Debtors. amounts falling due within one year Cash at bank and in hand 17 326,485 941,185 1,969.487 341,325 679,299 1,201, T98 17 3,237,157 2, 222,422 Creditors. amounts falling due within one year 18 {1,110,344) (728. 784) Net current assets 2,126.813 1,493, 638 Total assets less current liabilities 5,371,101 4, 763, 992 Creditors.. amounts falling due after more than one year 19 (1,368,186) (1,502,992) Net assets excluding pension asset 4,002,915 3,261,000 Total net assets 4,002,915 3,261,000 Charity funds Restricted funds Unrestricted funds 20 235,223 3,767,692 292, 71 t 2,968,289 20 Total funds 4,002,915 3,267,000 Page 16
BOW ARTS TRUST (A company limited by guarantee) PARENT CHARITY STATEMENT OF FINANCIAL POSITION {CONTINUED) AS AT 31 MARCH 2024 The Parent Charity's net movement in funds for the year was £741,915 (2023- £591,255). The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. clL C Smith Trustee Date.. C Buss Trustee ?g/oq/z¢ The notes on pages 20 to 48 form part of these financial statements. Page 17
BOW ARTS TRUST (A company limited by guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2Q23 Cash flows from operating activities Net cash used in operating activities 841,984 1.499,226 Cash flows from investing activities Dividends. interests and rents from investments Purchase of tangible fixed assets 27,183 14,551 (2,8621 (3,021,325) Net cash provided byllused in) investing activities 24,321 (3,006,774) Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 866,305 {1,507,548 1,316,843 2,824,391 Cash and cash equivalents at the end of the year 2,183,148 1,316.843 The notes on pages 20 to 48 form part of these financial statements Page18
BOW ARTS TRUST IA company limited by guarantee) PARENT CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Cash flows from operating activities Net cash used in operating activities 740,507 1,528, 184 Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets 27,182 14,552 (3, 018, 792) Net cash provided byl(used in) investing activities 27,182 (3,004,240 Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 767,689 (1,476,0561 2, 677, 854 1,201,798 Cash and cash equivalents at the end of the year 1,969,487 1,201, 798 The notes on pages 20 to 48 form part of these financial statements Page 19
BOW ARTS TRUST (A company limited by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 General information The Parent Charity is a private company limited by guarantee. registered in England and Wales. Its registered office address is 183 Bow Road, London. E3 2SJ, its company number is 03031923 and its charity number is 1046958. The members of the Parent Charity are the Trustees named on page 1. In the event of the chafity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The principal activity of the charity remained the supply of affordable studio facilities for emerging artists, the education of the public and children in the arts and the provision of an art gallery for the exhibition of contemporary art, design and applied art. The charity's wholly owned subsidiary, Bow Arts Tradinlg Limited (company number 10072462}, is a private limited company with a share capital of £1. Its registered offits address is 183 Bow Road, London, E3 2SJ, which is also its principal place of operation. The principal activity of the company is that of property management and development. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP {FRS 102) Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 and the Companies Act 2006. Bow Arts Trust meets the definrtion of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless othefwise stated in the relevant accounting policy. The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the Parent Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Parent Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements. The Trustees confirm their explicit and unreserved compliance with the above regulations and legislations. 2.2 Basis of consolidation The financial statements consolidate the accounts of Bow Arts Trust (the parent charity) and its subsidiary undertaking, Bow Arts Trading Limited. The income and expenditure account for the year dealt with in the accounts of the charity was a surplus of £741,915 (2023. £591.255). Page 20
BOW ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (continued) 2.3 Going concern As detailed in the trustees, report. the trustees are of the opinion that three are no factors which threaten the charity's and the group's going concern status. 2.4 Income All income is recognised once the Parent Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The recognition of income from legacies Is dependent on establishing enb'tlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Parent Charity has sufficient evidence that a gift has been left to them (through knowledge of the existen of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Parent Charity, can be reliably measured. Grants are included in the consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where enb'tlement occurs before income is received, the income is accrued. Income tax recoverable in relation to donations reiVed under Gift Aid or deeds of covenant is recognised at the time of the donation. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. Turnover comprises revenue recognised by the group in respect of non-charitable services provided by the trading company during the year. exclusive of Value Added Tax and trade discounts. 2.5 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 settloment 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 belyleen 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 allocated on the portion of the asset's use. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. Page 21
BOW ARTS TRUST IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (continuedl 2.6 Support costs Support costs represent core costs incurred by the charity. 2.7 Gift Aid In the case of a Gifl Aid payment made within the Group, income is accrued when the payment is payable to the Parent Parent Charity under a legal obligation. Measurement is at the fair value receivable, which will normally be the transaction value. 2.8 Taxation The Parent Charity is considered to pass the tests set out ir¢ Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Parent Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. The charity's trading subsidiary, Bow Arts Trading Limited, is liable to Corporation Tax and detailes are included in the consolidated statement of financial activity- 2.9 Tangible fixed assets and depreciation Tangible fixed assets costing £5,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Assets in the course of construction are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use. At each reporting date the Parent Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, Depreciation is provided on the following bases- Long-term leasehold property Short-term leasehold property Fixtures and fittings Other fixed assets not depreciated over the length of the lease 20 % reducing balance 200A straight line Gains and losses on disposals are detemiined by comparing the prOedS with the carrying amount and are recognised in the consolidated statement of financial activities. Page 22
BOW ARTS TRUST {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (continued) 2.10 Investments Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as 'Gainsl{Lossesl on investments, in the consolidated statement of financial activities. Investments in subsidiaries are valued at cost less provision for impairment. 2.11 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.12 Cash at bank and in hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.13 Liabilities and provisions Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event. it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Parent Chanty anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the consolidated statement of financial activities as a finance cost. 2.14 Financial instruments The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 2.15 Operating leases Rentals paid under operating leases are charged to the consolidated statement of financial activities on a straight-line basis over the lease term. 2.16 Pensions The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year. Page 23
BOW ARTS TRUST IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (continued) 2.17 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Designated funds comprise UnStriCted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. Critical accounting estimates and areas of judgment Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectats'ons of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions.. The Parent Charity makes estimates and assumptions conceming the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The trustees are of the opinion that there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, however, they are of the opinion that the following accounting estimates are significant to the accounts by virtue of their nature.. Accruals Accrued expenditure is based on prior periods, invoices or experien. Depreciationl amortisation Provision is made for the annual write down in value of fixed assets. Estimated useful lives are based on industry knowledge and experien. Deferral of income Amounts deferred are based on experience and Complian with the requirements set by the grant providers for multi-year contracts. Page 24
BOW ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Income from donations and legacies Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Donations 23,874 44,576 639,893 135,458 663,767 180,034 Grants 68,450 775.351 843,801 Restricted Unrestricted funds funds 2023 2023 Total funds 2023 Donations 4, 100 342,221 407. 936 202,966 412.036 545, 187 Grants 346,321 610,902 957,223 Page 25
BOW ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Income from charitable activities Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Provision of Creative Workspace Enterprise & Placemaking Learning Arts & Events 1,946,795 12,046 201,822 26.170 1,946,79S 12,046 249,153 26,170 47.331 47,331 2,186.833 2,234,164 Unrestricted funds 2023 Total funds 2023 Provision of Creative Workspace Enterprise & Placemaking Learning Arts & Events 1, 498, 535 4,807 243,910 32,688 1,498,535 4,807 243,010 32,688 1, 779.040 1. 779.040 Page 26
BOW ARTS TRUST {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Income from other trading activities Income from non charitable trading activities Unrestricted funds 2024 Total funds 2024 Sales 180.327 61,833 16,597 21.358 74,000 19.965 180,327 61,833 16,597 21,358 74,000 19,965 Fees receivable Project income Service charge re1vable Management fees Space hire income 374,080 374,080 Unrestricted funds 2023 Total furlds 2023 Sales 225, 608 58, 059 19,703 27,397 56, 153 12,831 225, 608 58, 059 19,703 27,397 56,153 12,831 Fees receivable Project income Service charge receivable Management fees Space hire income 399, 751 399, 751 Page 27
BOW ARTS TRUST {A company limited by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Investment income Unrestricted funds 2024 Total funds 2024 Bank and other interest 27,183 27,183 Unrestricted funds 2023 Total funds 2023 Bank and other interest 14,552 14,552 Other incoming resources Unrestricted funds 2024 Total funds 2024 MGETR Tax Relief Other Income 104,507 8,808 104,507 8,808 113,315 113,315 Unrestricted funds 2023 Total funds 2023 MGETR Tax Relief Other Income 10,205 28,678 10,205 28,678 38. 883 38,883 Page 28
BOW ARTS TRUST {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Analysis of expenditure on charitable activities Summary by fund type Restricted Unrestricted funds funds 2024 2024 Total 2024 Provision of Creative Workspace Enterprise & Placemaking Learning Arts & Events 1,584,890 32,186 382,248 215,639 78,545 1,584,890 42,440 518,241 237,328 83,878 10,254 135,993 21,689 5,333 General Management & Administration 173,269 2,293,508 2,466,777 Restricted Unrestricted funds funds 2023 2023 Total 2023 Provision of Creative Workspace Enterprise & Placemaking Learning Arts & Events General Management & Administration 1, 262,393 70,307 379,039 158, 757 81,442 1,262,393 74,628 574,212 211,469 83,587 4,321 195,173 52,712 2,145 254, 351 1.951,938 2,206, 289 Page 29
BOW ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 10. Non•charitable expenditure Unrestricted funds 2024 Total funds 2024 Freelancers 34,297 49,821 113,720 65,738 14,478 127,684 34,297 49,821 113,720 65,738 14,478 127,684 Café & retail costs Placemaking costs Building & FM costs Marketing & Office Overheads Wages and salaries 405,738 405,738 Unrestricted funds 2023 Total funds 2023 Freelancers Café & retail costs Placemaking costs Building & FM costs Marketing & Office Overheads Wages and salaries 10,828 57,040 101,039 61,045 28,466 130, 858 10,828 57,040 101,039 61,045 28,466 130, 858 389, 276 389,276 Page 30
BOW ARTS TRUST {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Analysis of expenditure by activities Activities undertaken directly 2024 Support costs 2024 Total funds 2024 Provision of Creative Workspace Enterprise & Placemaking Learning Arts & Events 1,336,135 35,819 437.390 200,302 248,755 6,621 80,851 37,026 83.878 1,584,890 42,440 518,241 237,328 83,878 General Management & Administration 2.009,646 457,131 2,466,777 Activities undertaken directly 2023 Support costs 2023 Total funds 2023 Provision of Creative Workspace Enterprise & Placemaking Learning Arts & Events General Management & Administration 1,058,456 62,294 480,079 176,613 203,937 12.334 94,133 34, 856 83,587 t,262,393 74, 628 574,212 211,469 83,587 1. 777,442 428, 847 2, 206, 289 Page 31
BOW ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11. Analysis of expenditure by activities (continued Analysis of direct costs Provision of Enterprise Creative & Place- Workspace making 2024 2024 Arts& Events 2024 Total funds 2024 Learning 2024 Staff costs Non-payroll related staff costs Freelance costs 174.224 3,297 1,658 6,324 749.362 23.366 442 338 182,200 3,448 52,814 191,856 102.538 1,941 482,328 9,128 54,810 287,952 762,164 Project costs Rent. rates & utilities Propety maintenance & improvements Marketing costs Office overheads Professional fees Insurance 10.616 79,156 12.802 181.184 1,478 53.659 5,792 57.025 104.879 (2.747) 108 803 650 181,942 7,112 56,309 8,168 57,025 105,596 (2,888) 4,473 1.783 358 399 468 2.376 Finance charges Other costs 708 (262) 108 1,336,135 35.819 437.390 200,302 2,009,646 Provision of Creative Enterise & Workspace Placemaking 2023 2023 Arts& Events 2023 Total funds 2023 Leaming 2023 Staff costs Non-payroll related staff costs Freelance costs Project costs Rer)t, rates & utilities Propety maintenance & improvements Marketing costs Office overheads Insurance Finance charges Other costs 113.757 3.020 55 14.650 389 195, 759 5.196 11,750 259,476 93,304 2,477 417,470 11,082 11,855 375,237 709.427 1.104 700, 644 44,154 70, 503 8, 783 111.504 5, 746 31,028 38,751 52.710 137 85 2, 034 932 1,082 207 112,671 13,309 34,222 38, 751 53,188 230 5, 322 2,067 195 416 62 93 1.058.456 62,294 480. 079 176,613 1. 777,442 Page 32
BOW ARTS TRUST (A company limited by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11. Analysis of expenditure by activities (continued) Analysis of support costs Provision of Enterprise Creative & Place- Workspace making 2024 2024 Arts& Events 2024 Learning 2024 Staff costs Freelance and other staff costs Marketing costs Office overheads Professional fees Other costs 153.023 6.752 14.288 39,324 33,748 1,620 4,073 180 49,736 2,195 4,644 12,781 10.969 526 22.777 1,005 2,127 5,853 5,023 241 380 1.047 898 43 248.755 6.621 80,851 37,026 General Manage- ment & Adminis- tration 2024 Total funds 2024 Staff costs Freelance and other staff costs Marketing costs Office overheads 52,067 2,298 4.862 12.617 11,483 551 281,676 12,430 26,301 71,622 62,121 2,981 Professional fees Other costs 83,878 457,131 Page 33
BOW ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11. Analysis of expenditure by activities (continued) Analysis of support costs (continued) Provision ol Creative Enterpnse & Workspace Placemaking 2023 2023 Arts& Events 2023 Learning 2023 Staff costs Freelance and other staff costs Marketing costs Office overheads Professional fees 147,121 4.071 17.150 27,078 7,907 61Q 8.898 246 67,907 1,880 7.916 12,498 3, 650 282 25, 144 695 1,037 1,638 478 2,931 4, 629 1,352 105 Other costs 37 203. 937 12,334 94, 133 34, 856 General Management & Admini- stration 2023 Total funds 2023 Staff costs Freelance and other staff costs Marketing costs Office overheads Professional fees 60,301 1,669 7,029 11,097 3,241 250 309,371 8,561 36,063 56,940 16,628 1,284 Other costs 83,587 428, 847 12. Auditors. remuneration 2024 2023 Fees payable to the Parent Charity's auditor for the audit of the Parent Charity's annual accounts Fees payable to the Parent Charity's auditor in respect ot. All taxation advisory ServIS not included above Audit of the accounts of the subsidiary company 8,682 7, 800 6,049 4, 950 5,400 Page 34
BOW ARTS TRUST (A company limited by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 13. Staff costs Parent Charity 2024 Parent Charity 2023 Group 2024 Group 2023 Wages and salaries and stsff expenses Social security costs Contribution to defined contribution pension schemes 766,782 70,812 T37,384 67,524 639,098 70,812 606, 526 67,524 54,094 52.791 54,094 52.791 Wages and salaries incurred by Bow Arts Trust but re-charged to Bow Arts Trading Limited 127,684 130, 858 891,688 857.699 891,688 857,699 The average number of persons employed by the Parent Charity during the year was as follows.. Parent Charity 2024 No. Parent Charity 2023 No. Group 2024 Group 2023 No. Trustees Staff 10 27 10 27 26 26 37 35 37 35 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was. Group 2024 No. Group 2023 In the band £90,001- £100.000 In the band £100,001- £110,000 Key management comprises the Chief Executive Officer, who is also a director in Bow Arts Trading Limited, and 3 (2023.. 51 members of the senior management team who are responsible for managing the day-to-day affairs of the charity. The total remuneration for the year for key management was £232,507 (2023. £306,408) Page 35
BOW ARTS TRUST {A company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 14. Trustees, remuneration and expenses During the year, one or more Trustees has been paid remuneration for the provision of services the Parent Charity, as follows.. 2024 2023 Dr M Owens N Smales Remuneration 5,889 5,591 1,680 Remuneration S Pallister Remuneration 500 Michael Owens (Bow Arts trustee) has provided professional services through the company Half Mile Tree in the research and production of the FIAW Impact Report. Nicholas Smales (Bow Arts trustee) has provided consultancy services dunng the year relating to the Hackney Wick Arts Council Bid and the Thamesmead Artist Housing Feasibility study. Stephen Pallister (Bow Arts Trustee) has provided legal and tax advice through his company Wiggin Osbourne Fullerlove During the year ended 31 March 2024, expenses totalling f25 were reimbursed or paid directly to 1 Trustee (2023 - £NIL to Tmstee). The expense represented travel costs. Page 36
BOW ARTS TRUST (A company limited by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15. Tangible fixed assets Group Long-term leasehold property Short4erm leasehold Fixtures and Other fixed property fittings assets Total Cost or valuation At 1 April 2023 Additions 3.265,148 486.408 29,397 18,450 2.862 3,799,403 2.862 At 31 March 2024 3,265,148 486,408 29,397 21,312 3,802,265 Depreciation At 1 April 2023 Charge for the year 27.239 19.132 24,192 2,507 13,128 4.032 64,559 49,230 23.559 At 31 March 2024 23,559 46,371 26,699 17,160 113,789 Net book value At 31 March 2024 3,241,589 440,037 2,698 4,152 3,688,476 At 31 March 2023 3,265. 148 459, 169 5.205 5. 322 3, 734, 844 Page 37
BOW ARTS TRUST (A company limited by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15. Tangible fixed assets (continued) Parent Charity Long-term leasehold Fixtures and property fittings Total Cost or valuation At 1 April 2023 3,265,148 29,397 3,294,545 At 31 March 2024 3,265,148 29,397 3,294,545 Depreciation At 1 April 2023 Charge for the year 24,192 2.507 24,192 26,066 23,559 At 31 March 2024 23,559 26,699 50,258 Net book value At 31 March 2024 3,241,589 2,698 3,244,287 At 31 March 2023 3.265. 148 5,205 3.270,353 Page 38
BOVV ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 16. Fixed asset investments Principal subsidiaries The following was a subsidiary undertaking of the Parent Charity.. Name Company number Registered office or principal Principal activity place of business Bow Arts Trading Limited 10072462 183 Bow Road, London, E3 2SJ Property management Class of shares Holding A Ordinary 100% The financial results of the subsidiary for the year were.. Name Income Expenditure ProfiU(Loss) I Surplusl (Deficitl for the year Net assets Bow Arts Trading Limited 384.451 (424,512) 140,061) {41,261} Page 39
BOW ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 17. Debtors Parent Charity 2024 Parent Charity 2023 Due after more than one year Amounts owed by group undertakings 326,485 341,325 Parent Charity 2024 Parent Charity 2023 Group 2024 Group 2023 Due within one year Trade debtors 364.242 285,616 220,072 385,053 134, 740 261,038 Amounts owed by group undertakings Short term element of the long temi intercompany debtor Other debtors Prepayments and accrued income 14,840 10,008 311,212 14,840 3.659 265, 022 10.008 316.764 3, 659 271,534 691.014 560, 809 941,185 679,299 Page 40
BOW ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 18. Creditors: Amounts falling due within one year Parent Charity 2024 Parent Charity 2023 Group 2024 Group 2023 Bank loans Trade creditors Arts Council Capitsl Grant Other taxation and social security Other creditors Accruals and deferred income 103,938 438,521 14,840 6,926 445,191 223.383 70, 000 284, 168 14,840 22,108 283, 892 174,697 103.938 346,481 14,840 70,000 261,044 14,840 441.609 203,476 276,421 106,4T9 1,232,799 849, 705 1,110,344 728, 784 Parent Charity 2024 Parent Charity 2023 Group 2024 Group 2023 Deferred income at 1 April 2023 Resources deferred during the year Amounts released from previous periods 142,395 268, 882 147,096 142, 395 1142,395) (268,882) 79,276 133,577 (79.276) 200. 742 79,276 (200, 742) 147,096 142,395 133,577 79.276 Page 41
BOW ARTS TRUST (A company limited by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 19. Creditors: Amounts falling due after more than one year Parent Charity 2024 Parent Charity 2023 Group 2024 Group 2023 Bank loans 1,041.701 326.485 1,161,667 341.325 1,041,701 326,485 1,161,667 341,325 Arts Council Capital Grant 1,368,186 1,502,992 1,368,186 1,502,992 The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is.. Parent Charity 2024 Parent Charity 2023 Payable or repayable by instalments Payable or repayable other than by instalments 721,682 267.125 1,221,965 988,807 1,221,965 Bank loans include £151,667 (2023-. £221,667) representing a CIBIL loan which is secured by an unlimited debenture on the assets of Bow Arts Trust, and £890.035 12023.. £940,000) representing a mortgage secured on the charity's long-term leasehold property. Until September 2023, the mortgage was interest-only and was therefore repayable other than by instalments. The mortgage is repayable at the end of a 16 year term and interest is charged at base rate plus 3.21 %. The Arts Council Capital Grant is repayable over a 25 year period. Page 42
BOW ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 20. Statement of funds Statement of funds - current year Balance at 31 March 2024 Balance at 1 April 2023 Transfers inlout Income Expenditure Unrestricted funds Designated funds Resilience Fund 385,000 800,000 1,185,000 General funds General Fund 2,582,088 3,476.762 (2,717,420) 1800.000) 2,541,430 Total Unrestricted funds 2.967,088 3.476.762 (2.717,420) 3,726,430 Restricted funds LBTH Carbon Reduction Arts Council NPO Grant Paul Hamlyn - More & Better Education Projects Thamesmead Arts Chest ACE NPO Bow Skills Paul Hamlyn - Social Justice Fund East London Art Prize (Private Grant) Paul Hamlyn Foundation - Arts Based Learning East London Art Prize (Minerva) 7,855 6,126 8,974 35,619 35,011 4,588 {5.333) 16,126 18,974) 139,014> (10,254) (4,588) 2,522 47.332 23,874 43,937 48,631 37.304 (37.3041 157,234 {17,101) 140,133 44,575 (44,575) 292,711 115.781 1173.269) 235,223 Total of funds 3,259,799 3,592,543 (2,890,689) 3,961,653 Page 43
BOW ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 20. Statement of funds (continued Statement of funds - prior year Balance at 31 March 2023 Balan at 1 Apnl 2022 Transfers in/out Income Expenditure Unrestricted funds Designated funds Resilience Fund 1,561,000 (1, 176,000) 385, 000 General funds General Fund 909, 984 2.843. 128 (2,347, 024) 1, 176,000 2, 582, 088 Total Unrestricted funds 2, 470.984 2.843. 128 (2,347, 024) 2,967,088 Restricted funds LBTH Carbon Reduction Arts Council NPO Grant Paul Hamlyn - More & Better Education Projects Thamesmead Arts Chest ACE NPO Bow Skills Paul Hamlyn - Social Justice Fund East London Art Prize (Private Grant) Paul Hamlyn Foundation - Arts Based Learning Nick Bateman Memorial Prize East London Art Prize (Minerva) 10,000 16.980 (2, 145) (20, 863) (54,987) (91.744) (4,321) 7, 855 6, 126 8,974 35,619 35,011 4.588 1Q.009 63,961 64,260 35, 232 4,450 63,103 4,100 138 20, 746 65, 000 (48,442) 37,304 167,000 (9, 766) 157,234 2,083 20.000 (22, 083) 2CIO, 741 346,321 (254, 351) 292, 711 Total of funds 2,671, 725 3, 189,449 (2,601.375) 3, 259, 799 Page 44
BOW ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 20. Statement of funds (continued) LBTH Carbon Reduction This grant supports a programme of events and staff training around sustainability with aims to make learning and behavioural changes in Tower Hamlets. Arts Council NPO Grant This fund represents grant fijnding towards leaming projects. marketing and staff costs for a learning project manager. Paul Hamlyn - More & Better This is grant funding from the Paul Hamlyn Foundation towards schools consortia programme setup and delivery. Education Projects This represents Income received from education contracts paid in advance of activity. Thamesmead Arts Chest These donations from the Thamesmead Flats are ringfend within the Thamesmead Arts Chest to be spent on community projects within the Thamesmead area. ACE NPO Bow Skills This is grant funding towards the Bow Skills CPD programme. Paul Hamlyn - Social Justice Fund This is a grant from the Paul Hamlyn Foundation to support social justi and creative arts learning in schools projects. East London Art Prize (Private Grant) Funded by a private individual to support the East London Art Prize Paul Hamlyn Foundation - Arts Based Learning This is a further grant from the Paul Hamlyn Foundation enabling us to work in partnership with formal education settings leading to a mutual exchange and enrichment of expertise. Nick Bateman Memorial Prize This prize will support young artists at the start of their careers over a 10 year period. East London Art Prize Iminerva) This is a £20,000 prize fund paid in monthly instalments from January 2022. Resilience Fund The Resilience Fund was established in 2012 to achieve greater financial security through facilitating the Trust to invest in property. Since then the Trustees have agreed that the Fund should be used in cases which Ihey agree support the long term charitable objectives of theTrust and its resilience. This may inlcude facilitating investment in propety for use by the Trust in its core administrative function or to provide affordable spaces for emerging artists. General Funds Of the total general funds, a deficit of £41.262 (2023.. £1.200) is retained in a non-charitable subsidiary. Page 45
BOW ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 21. Analysis of net assets between funds Analysis of net assets between funds - current period Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 3.688,476 3,688,476 305,647 2.568,515 2,874,162 170,424) (1,162,375} 11,232,7991 (1,368,186} 11,368,1861 Total 235,223 3.726,430 3,961,653 Analysis of net assets between funds - prior period Restricted Unrestricted funds funds 2023 2023 Total funds 2023 Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 3, 734, 844 3. 734. 844 1, 505, 665 1,877, 652 (770, 429) (849. 705) (1.502,992) (1,502, 992) 371,987 (79, 276) Total 292.711 2,967,088 3,259, 799 Page 46
BOW ARTS TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 22. Reconciliation of net movement in funds to net cash flow from operating activities Parent Charity 2024 Parenl Charity 2023 Group 2024 Group 2023 Net income for the period {as per Statement of Financial Activities) 701,854 588, OT4 741,915 591,255 Adjustments for: Depreciation charges Dividends, interests and rents from investments Decreasel{increasel in debtors Increase in creditors 49,230 25, 333 26,066 2,566 (27,1831 (127.076) 245.159 (14,552) 310,997 589, 374 (27,183) (247,046) 246.755 (14, 552) 362, 041 586, 874 Net cash provided by operating activities 841,984 1,499,226 740,507 1,528, 184 23. Analysis of cash and cash equivalents Parent Charity 2024 Parent Charity 2023 Group 2024 Group 2023 Cash in hand 2,183.148 1.316,843 1,969,487 1,201, 798 Total cash and cash equivalents 2,183.148 1,316,843 1,969,487 1,201,798 24. Analysis of changes in net debt At 1 April 2023 Cash flows At 31 March 2024 Cash at bank and in hand Debt due within 1 year Debt due after 1 year 1,316,843 (70,000) {1,161,667 866,308 (33,938} 119,966 2,183,151 1103,938) 11,041,7011 85,176 952,336 1,037,512 Page 47
BOW ARTS TRUST {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 25. Operating lease Commitments At 31 March 2024 the Group and the Parent Charity had commitments to make future minimum lease payments under nOn-CanlIable operating leases as follows. Parent Charity 2023 Parent Charity 2024 331,650 368,925 20,943 314,938 608, 422 31,710 Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years 721,518 955,070 26. Related party transactions During the year, £127,684 (2023". £130,858) were accrued by Bow Arts Trading Limited, the charity's trading subsidiary. in respect of staff shared with Bow Arts Trust. During the year, Bow Arts Trading Limited provided services to Bow Arts Trust of £10,021 (2023.. none) all of which is outstanding at the year end and inlcuded in trade creditors in the parent charity- During the year, Bow Arts Trust paid no grants to Bow Arts Trading Limited (2023.. £38,248) and reiVed no gift aid donation from Bow Arts Trading Limited (2023.. £7,846). There were intercompany purchases of £763 (2023. none) At 31 March 2024, Bow Arts Trading Limited owed Bow Arts Trust £326,845 (2023". £341,325) which is due over a period greater than 1 year and £399,893 (2023_ £275,878) over a period of less than one year. Both loans are interest free. The short term loan is repayable on demand, whereas the long term loan is repayable over a 25 year period. During the year, Bow Arts Trust paid £31 (2023.. £5,272) to T Garland. partner of M Baettig, for the sale of art work in the Nunnery Shop (2023.. for lead artist seNices at the Bexley Lantern Parade). During the year, no trustees made any donations to Bow Arts Trust (2023.. £1,500 from one trustee). Transactions with trustees other than donations are disclosed in Note 14 Page 48