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2021-12-31-accounts

REGISTERED COMPANY NUMBER: 03136932 (England and Wales) REGISTERED CHARITY NUMBER: 1051551

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

FOR

THE PHOENIX ARTS ASSOCIATION LIMITED

44 Grand Parade Brighton East Sussex BN2 9QA

Chariot House Limited Chartered Accountants

THE PHOENIX ARTS ASSOCIATION LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

Page
Report of the Trustees 1 to 7
Independent Examiner's Report 8
Statement of Financial Activities 9
Balance Sheet 10 to 11
Cash Flow Statement 12
Notes to the Cash Flow Statement 13
Notes to the Financial Statements 14 to 26

THE PHOENIX ARTS ASSOCIATION LIMITED (REGISTERED NUMBER: 03136932)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st December 2021. The trustees have adopted the provisions of 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

Objectives and aims

The Charity's objective and principal activities are:

  1. The promotion of the arts, and

  2. The advancement of public education in the appreciation, production and practice of the arts, and

  3. To relieve poor artists by providing workspace and studio facilities and by the provision of advice in artist development seminars.

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance on public benefit and fee charging.

Phoenix relies on the income from studio rentals and educational activities to cover operating costs and to contribute to the gallery. However, in setting the rent levels and course charges the board gives careful consideration to the affordability of the services Phoenix provides.

The course fees are set in line with similar offerings and kept at an affordable level for the general public on limited means. Phoenix aims to achieve funding for special events and professional development projects and in most cases is able to offer free places.

Page 1

THE PHOENIX ARTS ASSOCIATION LIMITED (REGISTERED NUMBER: 03136932)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

OBJECTIVES AND ACTIVITIES Significant activities

In 2021 the impact of the Pandemic was still being felt; however, Phoenix Art Space was able to provide a full programme of exhibitions free to the public, a programme of creative courses and the artists studios remained open throughout this period. Phoenix continued to develop the partnership between CASS and the University of Brighton, with UoB graduates being awarded the prize of a studio for a year and an exhibition in the Window Gallery. Phoenix hosted the 'Platform Graduate Award' again for this region, delighted to be part of this excellent initiative supporting newly qualified artists who are embarking on their careers. Other highly successful partnerships in 2021 included work with Jenni Lewin-Turner on the 'BreathTAKING' exhibition and events and work with The Museum of Ordinary People (MOOP) on their exhibition 'Home'.

A Governance Review, led by Tom Wilcox at Counterculture, was completed early in the year. Since that time the staff and Trustees have been working hard to implement the recommendations. This will make the charity more robust for guiding the organisation forward, managing change and developing the next Business Plan.

Once lockdown and COVID restrictions were lifted the café/bar returned to being a relaxing place where visitors and artists can relax and take a break. The art of the Window Gallery decorates the walls and it is great to see that the public are keen to meet and socialise together again. It has been popular with the students of arts courses, including those at Universities of Sussex and Brighton, and is a place for visitors to catch up on their emails with a coffee and network with creatives and others.

The work we do with Hanover and Elm Grove Communities Forum has led to many joint initiatives and helps to draw the locality together to deal with issues such as anti-social behaviour, as well as joining in with fun street Festivals. Over the Christmas period we worked with the Phoenix Community Food Bank, sorting and delivering produce to make sure that those struggling financially would have a nice meal to look forward to. In the Autumn the 'Community Takeover - Stories' exhibition encouraged engagement and dialogue. Every Saturday a free workshop in the gallery, led by a Phoenix Artist, had families working together on amazing collages and chalking wonderful pictures on our large gallery windows.

As people turned more and more to their mobile devices and computers for entertainment, we benefitted from our newly designed website, both advertising what we do and developing and improving on the images and videos we use to represent the organisation. In this way we were able to have an Open Studios type event online. We have used the billboard on the side of our building to reach out to passers-by and encourage them to visit our free exhibitions and events. Our focus has been on expanding audiences for art and making it easier for everyone to engage with us at Phoenix.

Staff at Phoenix in the Autumn trained in Deaf Awareness, in order to better support our new studio member and make him feel more welcome. He was awarded a free studio for the year, and it has been encouraging to see how much use he has made of this opportunity. We hope to acquire future funding to continue with this initiative.

Page 2

THE PHOENIX ARTS ASSOCIATION LIMITED (REGISTERED NUMBER: 03136932)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

STRATEGIC REPORT Achievement and performance Charitable activities

Affordable workspace for the arts

The artist studios in the building, over 100 spaces, are always fully occupied and we have a sizeable waiting list of artists keen to join the talented community of artists. A callout for new applicants took place in Spring 2021 with a number of artists selected to join the waiting list. As we were unable to hold a full exhibition programme due to COVID restrictions, and recognising the high demand for studios in our area, we utilised the Main Gallery, when available, to provide short term studio space for artists from the waiting list. This has been a great introduction for them to the organisation with an opportunity for them to show their work to others in the building. It took place during the start of the year and in midsummer, when c.6 artists at a time were able to use the space. In 2021 an additional studio space was created from a previously underused area in the basement, ensuring that we utilise our building to the full.

Hire Space

Over 2021, we had fewer community groups and other regular arts bookings. The COVID safety policy that we put in place meant restricting use due to the continued episodes of new outbreaks. However, we are now seeing our regular users return and with our concessions for space hire for charities and local community users, we continue to nurture and develop new contact and relationships. The Canvas Café facility has encouraged repeat visitors to our space, providing a lively social and art hub for this part of the city.

Exhibitions

Phoenix has a large main gallery, suitable for major exhibitions and events: the Window Gallery which showcases our studio artists and a small new experimental exhibition space called the Dodo gallery which is run by Phoenix artist studio members. The Green Room is increasingly being used for short term pop-up exhibitions and events, and we aim to refurnish this space to make it more fit for purpose. On occasion there have been four different exhibitions opening in the building at one time, all free entry, providing the public with a fantastic cultural experience.

MAIN GALLERY

2 May - 6 June 'Home' by MOOP x MNEMOSENE

A house built within the gallery. MOOP celebrated the ripples ordinary people leave behind

16 June - 25 July 'BreathTAKING' curated by Jenni Lewin-Turner

Exploration of the trauma caused by life-limiting conditions - inequality, injustice, oppression, marginalisation, racism, displacement and social exclusion. The project was funded in part by Phoenix Art Space, Centre for Arts and Wellbeing at the University of Brighton and Arts Council England.

4 Sept - 3 Oct 'Community Takeover - Stories'

Showcasing various community Projects including: 2m Conversations, Prisons Project, and local community projects with Phoenix Residents.

9 Oct - 7 Nov 'Platform Graduate Award '

'Platform' is an award programme run by CVAN South East, and is part of a wider Arts Council England national initiative. Phoenix graduates were selected to have a show in partnership with the University of Brighton and East Sussex College and nominate one of the selected artists to be considered for the award, to include a year's mentoring.

13 Nov - 19 Dec 'Press & Play Festival of Print'

A five-week celebration of the finest in contemporary and traditional printmaking, including screen printing, linocut, lithography, drypoint, monotype, risograph, letterpress and more. Funded by Arts Council England.

WINDOW GALLERY (a programme of work by Phoenix Art Space Artists)

Page 3

THE PHOENIX ARTS ASSOCIATION LIMITED (REGISTERED NUMBER: 03136932)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

3 Feb - 28 March 'Miranda Forrester and Emily Moore' CASS Artists 2 April - 25 April 'Julian Vilarrubi' 1 May - 30 May 'Care' group exhibition 5 June - 27 June 'Emily Jolley' 3 July - 25 July 'Sophie Abbott' 31 July - 29 Aug 'Becky Blair' 4 Aug - 3 Oct 'Veronica Slater' 9 Oct - 7 Nov 'Hatty Malcomson' 13 Nov - 19 Dec 'Luella Martin'

DODO GALLERY

Izabela Brudkiewicz / Monica Ross archive James William Murray / Garth Gratrix Scott Robertson / Sid and Jim Sarah Pager / Lucy Brown Hermione Allsopp / Poppy Whatmore Ty Locke / Daniella Pink / Joseph Cartwright

GREEN ROOM EXHIBITIONS (space hire)

Requests to hire this space for exhibiting artwork have increased over the year, and throughout 2021 there were short exhibitions, some by graduating students who were unable to present their work in final year exhibitions at university due to Covid restrictions.

Education

Phoenix has a vibrant and inclusive learning programme which offers many free art activities associated with the year-round programme of exhibitions. Our creative courses for adults are taught by professional artists and continue to be fully subscribed. As government restrictions relaxed, we felt able to offer more places safely on our courses, but have been mindful to be sensitive to individual needs. Our link with the local community has flourished as we continue to provide art packs for the families in our neighbourhood and to engage with issues and social events. Through successful funding bids Phoenix has provided many free creative opportunities. Working with 'Leap then Look' artists, who have a studio in Phoenix, we offered short holiday courses for children, enabling them to experiment with new materials and work together on fun group projects. These courses are always very well received.

Events

Phoenix has adapted well during the pandemic and although unable to offer to the same degree hire space and events, we have managed a safe environment for small group meetings and online gatherings. There has been a great need for a smaller exhibition space for artists to hire to show their work, and over the past year we have been developing the Green Room space to cater for this need. This has led to some interesting exhibitions taking place over weekends. The exhibition 'Acts of Transfer' took place during September in the Green Room, with specific links to the 'Community Takeover' exhibition in the Main Gallery. In November and December the 'Press & Play' Festival of print brought a new audience into the building to see and buy work from the exhibition and to take part in associated print events, such as the Tabletop Fair, 20 -21 November. It was a fantastic way to bring artist printmakers and people hunting for unique gifts together. This event was free entry and took place at the same time as the 'Press & Play 'exhibition.

Page 4

THE PHOENIX ARTS ASSOCIATION LIMITED (REGISTERED NUMBER: 03136932)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

We were hoping to hold our annual Open Studios event in 2021,however due to continued anxiety about the spread of the pandemic, we instead devised a way to celebrate our artist studios using film and photographs. Images were uploaded onto our website and screened during the Artist Open House Festival in May. We also encouraged the public to discover more about the creative process through our 'Plein Air' project. Three Phoenix artists worked outside their studios and took their easels to three different sites around the city to paint. They talked to passers-by about their inspiration and demonstrated their methods. This too was filmed and made available online so that those people still housebound could join in.

Financial review

Financial position

In 2021 the COVID pandemic continued to alter the behaviour of the public, and our charity adapted how it operated to ensure that we were still able to provide stimulating opportunities for the public and creatives to flourish. The measures taken, along with COVID support funding from Arts Council Funding, Brighton and Hove County Council and the government's Coronavirus Job Retention Scheme, have enabled Phoenix to maintain a healthy financial position. Phoenix continues to invest in the planned maintenance of the building whilst looking to maintain working capital at 3 month's operating expenditure.

The trustees regularly review the 20-year planned maintenance schedule of works and ensure any large upcoming works can be paid for through designated funds.

Reserves policy

Phoenix recognises that it is financially prudent to accumulate and designate funds to cover any unexpected financial circumstance and to fund strategic projects.

The trustees will therefore aim to hold reserve levels equivalent to three months average expenditure in order to help Phoenix continue to be a going concern. Any reserves accumulated above this target will be banked or designated to the planned maintenance of the building, or to strategic projects as they arise.

Future plans

A Governance Review took place during 2021 and the recommendations are now being implemented. This promises to stabilise the charity, clarifying the structure and responsibilities of all parties. By reviewing policies and procedures Phoenix will be in the best position to develop the future Business Plan for the organisation.

The studios continue to enjoy 99% occupancy, and this is expected to continue. The ending of restrictions has enabled Phoenix to increase attendees on its educational programmes and at exhibitions and events. Towards the end of 2021 Phoenix was starting to function normally with increased use of spaces and increased income from a return to activities. The community programme was funded through successful grants, e.g. the Postcode Lottery and we aim for this to continue with further applications to Trusts and Foundations, so that we can build on the work we have been doing with our different communities.

Competition for funding has however increased, along with rises in overheads, especially regarding utilities. Phoenix continues to look at ways where cost and energy savings can be made. We are developing an environmental action plan to work in parallel with our environmental policy, which will focus on developing a strategy to make the building more cost and energy efficient.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its Memorandum and Articles of Association and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Page 5

THE PHOENIX ARTS ASSOCIATION LIMITED (REGISTERED NUMBER: 03136932)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Trustees, recruitment and appointment

Trustees are invited to apply and are interviewed by the board. Criteria for appointment are based on skills and experience that they can bring to the team, and an ability to represent the different sectors of the community. After an initial co-opted period, the prospective trustee will be presented to the affiliate members at the AGM and elected formerly.

There are a minimum number of trustees required but no maximum. One third of the Trustees stand down at the Annual General Meeting. There is no maximum term of office and trustees who wish to continue to serve may be re-elected by the members at the AGM. Phoenix has two categories of member; full members (who apply to become full members and of whom there are currently approximately 17) and associate members (who are studio members).

All trustees are offered trustee training if required. The prospective trustee has an induction meeting and is mentored to ensure a smooth transition into the organisation.

Full trustee meetings take place quarterly, however sub committees and groups may meet more regularly, and special meetings occur when necessary.

During this period two representatives from the artist studio members attended board meetings as observers and relayed information to and from the Studio Member Representation Forum. We are currently reviewing this system in consultation with studio members to see how this might be further developed.

The board may appoint new Trustees at any time during the year, but they must stand for election by the members at the AGM. The criteria for the appointment of new board members is based on the skills and experience the organisation needs at any given time and the extent to which the board represents different sectors of the community. Diversity on the board is addressed as an action following on from the Governance Review.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03136932 (England and Wales)

Registered Charity number

1051551

Registered office

10/14 Waterloo Place Brighton BN2 9NB

Page 6

THE PHOENIX ARTS ASSOCIATION LIMITED (REGISTERED NUMBER: 03136932)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2021

Trustees

Mr S Evans Ms K H Strachan Mr D S Meredith-Garcia (resigned 1/6/2021) Mr C A Lord (resigned 28/3/2022) Mr M A Edwards (resigned 4/1/2021) Mr A G Murray Mr P J Carroll (resigned 30/11/2021) Mrs J Walters Mrs H L Chester Ms E A Burgess (appointed 7/1/2021) Ms S E Prime (appointed 18/1/2021) Ms E Wilson (co-opted 19/11/2021) Ms S E Bodger (co-opted 11/01/2022)

Company Secretary

Mrs B K Greenhalgh

Independent Examiner

John Thacker FCA DChA Institute of Chartered Accountants in England and Wales Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 10th June 2022 and signed on the board's behalf by:

Mr A G Murray - Trustee

Page 7

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE PHOENIX ARTS ASSOCIATION LIMITED

Independent examiner's report to the trustees of The Phoenix Arts Association Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st December 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Institute of Chartered Accountants in England and Wales which is one of the listed bodies.

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:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

John Thacker FCA DChA Institute of Chartered Accountants in England and Wales Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

14th June 2022

Page 8

THE PHOENIX ARTS ASSOCIATION LIMITED

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2021

Unrestricted
Designated
funds
funds
Notes
£
£
INCOME AND
ENDOWMENTS FROM
Donations and legacies
2
23,670
-
Charitable activities
5
Events, Exhibitions and Food &
Bar
15,164
-
Studios & Room Hire
265,571
-
Courses
63,182
-
Office and Finance
1,865
-
Other trading activities
3
20,225
-
Investment income
4
-
-
Other income
19,589
-
Total
409,266
-
EXPENDITURE ON
Charitable activities
6
Events, Exhibitions and Food &
Bar
14,962
-
Studios & Room Hire
33,955
-
Courses
54,557
-
Office and Finance
126,271
-
Building Maintenance
103,191
26,757
Total
332,936
26,757
NET
INCOME/(EXPENDITURE)
76,330
(26,757)
RECONCILIATION OF
FUNDS
Total funds brought forward
358,958
123,543
TOTAL FUNDS CARRIED
FORWARD
435,288
96,786
Restricted
funds
£
107,101
-
-
-
-
-
-
10,000
117,101
-
-
-
108,723
-
108,723
8,378
34,983
43,361
2021
Total
funds
£
130,771
15,164
265,571
63,182
1,865
20,225
-
29,589
526,367
14,962
33,955
54,557
234,994
129,948
468,416
57,951
517,484
575,435
2020
Total
funds
£
90,794
450
265,232
44,061
4,952
18,749
37
24,489
448,764
17,899
12,364
40,090
216,552
95,586
382,491
66,273
451,211
517,484

The notes form part of these financial statements

Page 9

THE PHOENIX ARTS ASSOCIATION LIMITED (REGISTERED NUMBER: 03136932)

BALANCE SHEET

31ST DECEMBER 2021

Notes
FIXED ASSETS
Tangible assets
12
CURRENT ASSETS
Debtors
13
Cash at bank and in hand
CREDITORS
Amounts falling due within one
year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS
CURRENT LIABILITIES
CREDITORS
Amounts falling due after more
than one year
15
NET ASSETS
FUNDS
17
Unrestricted funds
Restricted funds
TOTAL FUNDS
Unrestricted
funds
£
400,827
40,828
107,916
148,744
(83,015)
65,729
466,556
(31,268)
435,288
Designated
funds
£
-
-
96,785
96,785
-
96,785
96,785
-
96,785
Restricted
funds
£
-
-
43,362
43,362
-
43,362
43,362
-
43,362
2021
Total
funds
£
400,827
40,828
248,063
288,891
(83,015)
205,876
606,703
(31,268)
575,435
532,073
43,362
575,435
2020
Total
funds
£
407,769
8,723
230,358
239,081
(74,762)
164,319
572,088
(54,604)
517,484
482,501
34,983
517,484

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

continued...

Page 10

THE PHOENIX ARTS ASSOCIATION LIMITED (REGISTERED NUMBER: 03136932)

BALANCE SHEET - continued

31ST DECEMBER 2021

The financial statements were approved by the Board of Trustees and authorised for issue on 10th June 2022 and were signed on its behalf by:

Mr A G Murray - Trustee

The notes form part of these financial statements

Page 11

THE PHOENIX ARTS ASSOCIATION LIMITED

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Interest received
Net cash provided by investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of the
reporting period
2021
£
17,705
17,705
-
-
17,705
230,358
248,063
2020
£
53,596
53,596
37
37
53,633
176,725
230,358

The notes form part of these financial statements

Page 12

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
2021 2020
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 57,951 66,273
Adjustments for:
Depreciation charges 6,942 2,590
Interest received - (37)
(Increase)/decrease in debtors (32,105) 5,384
Decrease in creditors (15,083) (20,614)
Net cash provided by operations 17,705 53,596
2. ANALYSIS OF CHANGES IN NET FUNDS
At 1/1/21 Cash flow At 31/12/21
£ £ £
Net cash
Cash at bank and in hand 230,358 17,705 248,063
230,358 17,705 248,063
Debt
Debts falling due within 1 year (23,655) - (23,655)
Debts falling due after 1 year (54,604) 23,336 (31,268)
(78,259) 23,336 (54,923)
Total 152,099 41,041 193,140

The notes form part of these financial statements

Page 13

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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 accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - Straight line over 50 years
Equipment - 25% on reducing balance

The charity does not capitalise items costing less than £1,000.

The trustees have made the decision to depreciate the estimated cost of the building, £250,000, over 50 years from 1st January 2021.

Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 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.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for a particular restricted purpose.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

continued...

Page 14

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

1. ACCOUNTING POLICIES - continued

Going concern

The directors consider that there are no material uncertainties about the company's ability to continue as a going concern. The directors have taken advantage of the various sources of Government support during the COVID-19 pandemic. The directors consider that COVID-19 will not have a significant impact on the company's ability to continue trading and steps are being taken to make cost savings. The directors regard any impact to be short term rather than affecting the company's ability to continue as a going concern. There are no material uncertainties affecting the current year's accounts.

2. DONATIONS AND LEGACIES

Donations
Grants
Grants received, included in the above, are as follows:
Chalk Trust
Hyde - Up My Street
Arts Council - Rockets
Sussex Police
University of Brighton
Arts Council - COVID Fund
Arts Council - COVID Digital Learning
Arts Council - COVID Studios
National Art Collections Fund
Arts Council - National Creative Workspace Network
Arts Council - Breaking the Cycle / OXYGEN
Arts Council - Culture Recovery Fund
Arts Council - Press+Play
Art Club/Prisons & Probation
Festival Our Place
Postcode Lottery
Sussex Community Foundation
2021
£
-
130,771
130,771
2021
£
3,000
-
-
-
-
3,500
-
-
-
2,000
18,350
40,446
17,000
15,000
6,475
20,000
5,000
130,771
2020
£
516
90,278
90,794
2020
£
-
12,128
19,300
500
2,500
16,500
7,000
8,000
1,350
23,000
-
-
-
-
-
-
-
90,278

Page 15

continued...

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

3. OTHER TRADING ACTIVITIES

2021
£
Car Parking
20,225
4.
INVESTMENT INCOME
2021
£
Deposit account interest
-
5.
INCOME FROM CHARITABLE ACTIVITIES
Events,
Exhibitions
and Food
Studios &
& Bar
Room Hire
£
£
Studio Income
-
232,037
Workspace hire
9,215
33,219
Course fees
-
-
Events, exhibitions and food & bar
5,899
-
Office and finance
50
315
15,164
265,571
2021
Office
and
Total
Finance
activities
£
£
Studio Income
-
232,037
Workspace hire
-
42,434
Course fees
-
63,145
Events, exhibitions and food & bar
-
5,899
Office and finance
1,865
2,267
1,865
345,782
2020
£
18,749
2020
£
37
Courses
£
-
-
63,145
-
37
63,182
2020
Total
activities
£
227,843
37,389
44,061
450
4,952
314,695

Page 16

continued...

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

6. CHARITABLE ACTIVITIES COSTS

CHARITABLE ACTIVITIES COSTS
Events, Exhibitions and Food & Bar
Studios & Room Hire
Courses
Office and Finance
Building Maintenance
Direct
Costs
£
14,962
33,955
54,557
108,723
129,948
342,145
Support
costs (see
note 7)
£
-
-
-
126,271
-
126,271
Totals
£
14,962
33,955
54,557
234,994
129,948
468,416

Office and Finance Direct Costs relate to all restricted fund expenditure across the charitable activities. See note 17 for fund breakdown.

7. SUPPORT COSTS

Governance
Management
costs
£
£
Office and Finance
123,927
2,344
Support costs, included in the above, are as follows:
2021
Office
and
Finance
£
Wages
74,193
Social security
3,770
Pensions
2,039
Advertising
5,506
Direct Costs
1,590
Operating costs
36,829
Accountancy and legal fees
2,344
126,271
Totals
£
126,271
2020
Total
activities
£
92,629
1,402
1,418
941
655
25,171
2,692
124,908

continued...

Page 17

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

8. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2021 2020
£ £
Depreciation - owned assets 6,942 2,590
Independent Examiner 2,298 2,500

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st December 2021 nor for the year ended 31st December 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st December 2021 nor for the year ended 31st December 2020.

10. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
2021
£
201,211
11,195
3,993
216,399
2020
£
196,843
8,523
3,271
208,637

The total remuneration paid to key management personnel during the year was £161,679.

The average monthly number of employees during the year was as follows:

2021 2020
12 11

No employees received emoluments in excess of £60,000.

continued...

Page 18

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Designated
funds
funds
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
1,016
-
Charitable activities
Events, Exhibitions and Food & Bar
450
-
Studios & Room Hire
265,232
-
Courses
44,061
-
Office and Finance
4,802
-
Other trading activities
18,749
-
Investment income
37
-
Other income
24,489
-
Total
358,836
-
EXPENDITURE ON
Charitable activities
Events, Exhibitions and Food & Bar
17,899
-
Studios & Room Hire
12,364
-
Courses
40,090
-
Office and Finance
133,776
-
Building Maintenance
86,313
9,273
Total
290,442
9,273
NET INCOME/(EXPENDITURE)
68,394
(9,273)
Transfers between funds
(62,979)
62,816
Net movement in funds
5,415
53,543
RECONCILIATION OF FUNDS
Total funds brought forward
353,543
70,000
TOTAL FUNDS CARRIED FORWARD
358,958
123,543
Restricted
funds
£
89,778
-
-
-
150
-
-
-
89,928
-
-
-
82,776
-
82,776
7,152
163
7,315
27,668
34,983
Total
funds
£
90,794
450
265,232
44,061
4,952
18,749
37
24,489
448,764
17,899
12,364
40,090
216,552
95,586
382,491
66,273
-
66,273
451,211
517,484

continued...

Page 19

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

12. TANGIBLE FIXED ASSETS

COST
At 1st January 2021
Disposals
At 31st December 2021
DEPRECIATION
At 1st January 2021
Charge for year
Eliminated on disposal
At 31st December 2021
NET BOOK VALUE
At 31st December 2021
At 31st December 2020
13.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Prepayments and accrued income
Freehold
property
£
400,000
-
400,000
-
5,000
-
5,000
395,000
400,000
Equipment
£
65,765
(11,857)
53,908
57,996
1,942
(11,857)
48,081
5,827
7,769
2021
£
1,493
39,335
40,828
Totals
£
465,765
(11,857)
453,908
57,996
6,942
(11,857)
53,081
400,827
407,769
2020
£
5,273
3,450
8,723

continued...

Page 20

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans and overdrafts (see note 16)
Trade creditors
Other creditors
Refundable deposits held
Income in advance
Accrued expenses
15.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loans (see note 16)
16.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans
Amounts falling due between two and five years:
Bank loans - 2-5 years
2021
£
23,655
5,509
1,980
28,647
13,841
9,383
83,015
2021
£
31,268
2021
£
23,655
31,268
2020
£
23,655
4,962
1,362
29,651
12,632
2,500
74,762
2020
£
54,604
2020
£
23,655
54,604

continued...

Page 21

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

17. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Designated Fund - Planned Maintenance
Designated Fund - Cafe
Restricted funds
BHCC G&G
Hyde - Up My Street
Kingswood Millner project
ACE Accessibility
ACE Rockets Work In Progress
New England Bridge
ACE - COVID Fund
ACE - National Creative Workspace
Network
National Art Collections Fund
Arts Club/Prisons & Probations
Postcode Lottery
Sussex Community Foundation
TOTAL FUNDS
At 1/1/21
£
357,758
123,543
1,200
482,501
2,483
969
4,714
5,976
4,084
594
(376)
15,189
1,350
-
-
-
34,983
517,484
Net
movement
in funds
£
76,330
(26,758)
-
49,572
-
(969)
-
-
(4,084)
(594)
376
(15,189)
(1,350)
12,980
12,905
4,304
8,379
57,951
Transfers
between
funds
£
1,200
-
(1,200)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
At
31/12/21
£
435,288
96,785
-
532,073
2,483
-
4,714
5,976
-
-
-
-
-
12,980
12,905
4,304
43,362
575,435

continued...

Page 22

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

17. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Designated Fund - Planned Maintenance
Restricted funds
Chalk Cliff
Hyde - Up My Street
ACE Rockets Work In Progress
New England Bridge
ACE - COVID Fund
ACE - National Creative Workspace
Network
National Art Collections Fund
ACE - Breaking the Cycle / OXYGEN
ACE - Culture Recovery Fund
ACE - Press + Play
Arts Club/Prisons & Probations
Festival Our Place
Postcode Lottery
Social Supermarket
Sussex Community Foundation
TOTAL FUNDS
Incoming
resources
£
409,266
-
409,266
3,000
-
-
-
3,500
2,000
-
23,350
16,776
17,000
15,000
6,475
20,000
5,000
5,000
117,101
526,367
Resources
Movement
expended
in funds
£
£
(332,936)
76,330
(26,758)
(26,758)
(359,694)
49,572
(3,000)
-
(969)
(969)
(4,084)
(4,084)
(594)
(594)
(3,124)
376
(17,189)
(15,189)
(1,350)
(1,350)
(23,350)
-
(16,776)
-
(17,000)
-
(2,020)
12,980
(6,475)
-
(7,095)
12,905
(5,000)
-
(696)
4,304
(108,722)
8,379
(468,416)
57,951

continued...

Page 23

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

17. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Designated Fund - Planned Maintenance
Designated Fund - Cafe
Restricted funds
Computer Donation
Foyle Foundation
BHCC G&G
Hyde - Up My Street
Kingswood Millner project
ACE Accessibility
ACE Community Takeover
ACE Rockets Work In Progress
New England Bridge
2M Conversations
ACE - COVID Fund
ACE - National Creative Workspace
Network
National Art Collections Fund
TOTAL FUNDS
At 1/1/20
£
353,543
70,000
-
423,543
1,003
154
2,483
-
8,000
5,976
70
4,155
5,827
-
-
-
-
27,668
451,211
Net
movement
in funds
£
67,194
(9,273)
1,200
59,121
(1,390)
-
-
969
(1,786)
-
-
(71)
(5,233)
(1,500)
(376)
15,189
1,350
7,152
66,273
Transfers
between
funds
£
(62,979)
62,816
-
(163)
387
(154)
-
-
(1,500)
-
(70)
-
-
1,500
-
-
-
163
-
At
31/12/20
£
357,758
123,543
1,200
482,501
-
-
2,483
969
4,714
5,976
-
4,084
594
-
(376)
15,189
1,350
34,983
517,484

continued...

Page 24

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

17. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Designated Fund - Planned Maintenance
Designated Fund - Cafe
Restricted funds
Computer Donation
Hyde - Up My Street
Kingswood Millner project
ACE Rockets Work In Progress
New England Bridge
2M Conversations
ACE - COVID Fund
ACE - National Creative Workspace
Network
National Art Collections Fund
TOTAL FUNDS
Incoming
resources
£
357,636
-
1,200
358,836
-
12,128
-
19,300
-
2,500
31,500
23,150
1,350
89,928
448,764
Resources
Movement
expended
in funds
£
£
(290,442)
67,194
(9,273)
(9,273)
-
1,200
(299,715)
59,121
(1,390)
(1,390)
(11,159)
969
(1,786)
(1,786)
(19,371)
(71)
(5,233)
(5,233)
(4,000)
(1,500)
(31,876)
(376)
(7,961)
15,189
-
1,350
(82,776)
7,152
(382,491)
66,273

Restricted funds are given to the charity for specific, time bound projects and cannot be spent on other activities. These projects greatly contribute to the social impact of our role and responsibility to our communities and wider of our work in the arts sector supporting artists. In all of these restricted funds, Phoenix artists gain paid freelance work to deliver projects thereby supporting them as self-employed workers as well as giving them wider experience of working within communities.

Page 25

continued...

THE PHOENIX ARTS ASSOCIATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

17. MOVEMENT IN FUNDS - continued

18. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31st December 2021.

Page 26