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← Studio 3 Arts

2022-03-31-accounts

REGISTERED COMPANY NUMBER: 03177640 (England and Wales)

REGISTERED CHARITY NUMBER: 1054793

Report of the Trustees and Financial Statements for the Year Ended 31 March 2022 for

STUDIO 3 ARTS

Haines Watts Essex LLP Juniper House Warley Hill Business Park The Drive Brentwood Essex CM13 3BE

STUDIO 3 ARTS

Contents of the Financial Statements for the year ended 314 March 2022

Page
Report ofthe Trustees 1 to 5
Report ofthe Independent Auditors 6 to 8
Statement of Financial Activities 9
Balance Sheet 10
Cash Flow Statement 11
NotestotheCash Flow Statement 12
Notes tothe Financial Statements 13 to 23
DetailedStatementofFinancialActivities 24

STUDIO 3 ARTS

Report of the Trustees for the year ended 31 March 2022

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 31 March 2022. 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 treland (FRS 102} (effective 1 January 2019)

Weathering the storm continued: Studio 3 Arts continues to support diverse communities in the outfall from the pandemic

Last year | wrote about my reflections on the most challenging year on record for the arts, communities and the global society, not realising that this year would be just as challenging and uncertain. Our capital programme faced delays in completion and so we remained in our temporary accommodation during this year. Regardless of our temporary home we continued to do what Studio 3 Arts does best and huge thanks go to all the staff, volunteers and participants who made sure that the community of Barking and Dagenham remained connected with wortd class arts practice across a range of art forms.

Sadly, we were forced to continue with a hybrid model of some online and face to face events and our learning through the pandemic meant this was a seamless process. We provided voluntary support to our most isolated participants who have struggled to come to terms with re-engagement face to face having spent almost a year in isolation.

Here are some highlights

Be and Do - Presented by artists Grace Duggan and Matty May, Being Visible has been produced by Studio 3 Arts for Be & Da, our project for Barking and Dagenham's LGBTQIA+ community, to explore queer joy, identity and safety in Barking and Dagenham. From this The Being Visible artworks were created which toak the form of print posters with embedded QR codes displayed in public locations across Barking and Dagenham from 18 November 2021.

Big Deal - our young people's performance programme went from strength to strength battling the continued needs of social distancing whilst providing valuable to support to young people and their families. Sharlene Carter and her team always deliver fantastic support and performances which continue to attract attention.

Black Art Matters - was Studio 3 Arts' programme of commissions designed to provide black artists with funding to explore and support areas of their artistic practice. Throughout 2021-22 five artists were funded and mentored by industry professionals of their choosing, alongside practical support to realise and produce their projects. Our thanks to Associate Director Ashley Joseph. and Senior Creative Producer. Rosie Ross who led and curated the programme.

Groundbreakers continued to empower and grow the leadership potential of young people in the local area. It also creates leaders who will contribute to the social, economic, and cultural wellbeing of the communities in London.

Outside of the creative programme, construction began on our large capital programme ‘Changing the boundary’ to refurbish and extend our original space into a world class arts centre.

Finally, this has been another testing year for everyone, and we are no means ‘home and dry’ yet. Hat's off to the Studio 3 Arts team whose tenacity, resilience and commitment have continued to extraordinary levels. There is no team in the arts who work harder and go above and beyond to serve their community.

As ever. the strength and impact of our work is In the commitment of our Artists, Partners, Funders, Volunteers. Trustees, Staff and our participants and audiences. We are graleful and inspired by their dedication to the organisation.

Objectives and activities

Studio 3 Ants promotes and delivers quality arts to empower local communities and address today's social issues. Working primarily in the London Boroughs of Barking & Dagenham, Havering, Redbridge and Waltham Forest, Studio 3 Arts tailormakes arts activity for all the community in partnership with key local, regional and national organisations.

The main activities of the charity throughout this accounting period are included in the report by the Chair of the Board detailed above.

In reviewing and developing Studio 3 Arts activities and future plans, careful consideration is given to the public benefit arising fram the Company's work. The Trustees take particular account of the Charity Commission's general guidance on public benefil when reviewing the aims and objectives of the charity. The Trustees consider that the work of the charity provides considerable benefil to the public as illustrated by the activities described in this report.

Page 4

STUDIO 3 ARTS

Report of the Trustees for the year ended 31 March 2022

Strategic report Reserves Policy

The Trustees have developed this reserves policy based on the following assumptions:

The Trustees have assessed and allocated reserves on the basis of principal risks identified through the Company Risk Assessment, and upon review of the previous policy and funds available.

Funds have been Designated to cover the following liabilities, in the unlikely event of organisational liquidation:

These liabilities have been assessed on the basis of the revised staff headcount as £70,000.

Restricted funds were used to pay for the improvements to the property held by Studio 3 Arts, As per the specifics of the individual donations, once expended in Iine with the restnction, these resulting property improvements have been reclassified as designated or general in nature. The trustees have decided to hald 70% of the property's net book value as designated rather than general funds.

Annual Finance Report 2021-22

Budgeted Income: £2,182,533 + £261.431 (CBD) = £2,443,964 Expenditure: £475,976 + £164,229 (CBD) = £640,205 Surplus: £1,803,.759

Actual Income: £1,867.032 + £309,875 (CBD) = £2,176,907 Expenditure: £685,296 + £352.714 (CBD) = £1.038,010 Surplus: £1,138,897

The Surplus of £1,138,897 will be added to the organisation's reserves and allocated between restricted and unrestricted funds as agreed by the Trustees.

Reserves

Reserves at 31st March 2022 were £1,786,070.

Restricted funds were £153,217 (decreased by £45,097 compared to 2021). Unrestricted funds excluding designated funds were £56.958 (decreased by £134,210 compared to 2021): Designated funds {included within general funds) were £1.576.895 (increased by £1,319,204 compared to 2021).

Comments on Actual performance vs Budgeted 2021-22

In 21-22, another challenging year for all (including Studio 3 Arts) due to the ongoing effect of the Covid-19 Pandemic. Due to this, we purposefully kept our staff team Jean and roles were filled with freelancers to increase capacity where needed. The average FTE for the year has been calculated to include the staff working on the Creative Barking & Dagenham project for which, whilst consortium led, Studio 3 Arts is the lead and accountable body.

The surplus for 21-22

Our capital project delay also highlights why our surplus is higher than budgeted, and income and expenditure will match this programme moving forward, allowing for Cavid-19 restrictions to be factored in lo the delivery of this

Page 2

STUDIO 3 ARTS

Report of the Trustees for the year ended 31 March 2022

Analysis

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----- Start of picture text -----
2021-22 2020-21
Major commissions delivered 6 6
Project total costs £846K £715K
Core Costs £192K £29K
Core Costs as % of total cost 23% 4%
Salary Costs £299K £283K
Staff Numbers (full-time equivalent) 6 6
Total Expenditure £1,038K £745K
Total Income £2,444K £1,142K
income less Expenditure/Surplus £1,139K £397K
----- End of picture text -----

In addition, the % is inflated slightly due to the capitalisation of building improvement works (thus reducing Total Costs accordingly).

Core Total Project CBD Core Total
Year
40/11		 SLA
192k		 CBD
276k		 Trusts
120k		 102k income
690k		 costs
231k		 costs
276k		 costs
102k		 costs
609k		 Outcome
+81k
41/12 193k - 23k 151k 367k 123k - 258k 381k -14k
12/13 78k 34k 65k 125k 302k 85k 34k 183k 302k +1k
13/14 39k 99k 81k 114k 330k 89k 99k 139k 327k +3k
14/15 31k 316k 42k 108k 497k 73k 316k 104k 493k +4k
45116 101k 425k 90k 95k 711k 425k 425k 85k 702k +9k
16/17 224k 275k 83k 113k 666k 289k 275k 92k 655k +11k
17/18 118k 307k 214k 52k 691k 442k 162k 6k 610k +81k
18/19
19/20		 47k
38k		 344k
182k		 284k
465k		 33k
24k		 708k
709k		 424k
426k		 179k
228k		 11k
Atk		 614k
695k		 +94k
+14k
235 k
20/21 179k 308k 405k 1,142k 573k 130k 29k 732k +395k
21/22 171K 261K 1959K 53K 2444K 846K 164K 192K 1038K +1139K
TheFuture

We are pleased to share that the following funding is confirmed going forward:

Arts Council England National Portfolio Funding - in its final year of a four year funding agreement, and at the time of this report the Company has just been offered continuing funding as an Arts Council England National Portfolio Organisation and an 37% increase in funding.

An award of £20k has been made by the Landon Crime Prevention Fund benefitting young people, women and girls, and local residents. Our community safety empowerment programme will answer the questions local people have at this time. The LBBD's Safe Havens has awarded a grant of £10k to Studio 3 Arts to fund an exhibition highlighting the dangers of knife cnme.

Although not confirmed presently, a proposal has also been submitted to the Paul Hamblyn Foundation to fund our[flagship] Big Deal cross arts programme for 8 to 21 year olds offering free termly and holiday sessions working with industry professionals in drama, music making and production, filmmaking, street dance, set design and more.

Finally, at the time of this report a proposal has been submitted to the City Bridge Trustin the hope of securing funding for a new senior post, Business and Partnership Director, over a three year period. The post will focus on rigorous financial management, with strategic business and funding partnerships, building management, income generation and workforce development. Is spokesperson for and represents Studio 3 Arts in civic and business networks locally, regionally and nationally.

Page 3

STUDIO 3 ARTS

Report of the Trustees for the year ended 31 March 2022

en Fundraising will continue throughout the coming year in order to secure income not only for the direct costs involved with running a project but also to fund the indirect costs required to fund the organisations core operational costs, Many funders cap the amount they allow to be allocated to the core staff and operational costs of an organisation and for this reason the business model for Studio 3 is lean with a small number of key operational staff complemented by a team of freelance creatives and artists with a specific skill set appropriate to an individual project who are engaged to work on our individuat programming strands. Structure, governance and management Governing document The charity is controlled by its governing document, a deed of trust, and constitutes a fimited company, limited by guarantee, as defined by the Companies Act 2006.

Trustee's guarantee The number of directors shall never be less than three, and until otherwise determined by a general meeting shall not be more than 12. None of the Trustees have any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a wind up,

Reference and administrative details

Registered Company number 03177640 (England and Wales)

Registered Charity number 1054793

Registered office The Galleon Centre Boundary Road Barking Essex IG11 7JR

Trustees Ms S Murray Manager Miss L L Cox Consultant Mr F McDonagh Engineer Miss C RS N Meaby Director Mr S W D Abaka-Wood Freelancer (resigned 12.8.2022) Ms K M West-Whylie Chief Officer Ms E A Baker Trade Union Organiser (appointed 2.6.2021) Ms E Doran Freelance (appointed 2.6.2021) Mr S A Durham Company Director (appointed 2,6,2021) (resigned 17.8.2022)

Auditors

Haines Watts Essex LLP Juniper House Waney Hill Business Park The Drive Brentwood Essex CM13 3BE

Statement of trustees’ responsibilities The trustees (who are also the directors of Studio 3 Arts for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Page 4

STUDIO 3 ARTS

Report of the Trustees for the year ended 31 March 2022

Statement of trustees’ responsibilities - continued

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure. of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditors = The auditors, Haines Watts Essex LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

directors,Report ofontheaetrustees, Motch.incorporating23,a strategicand signedreport,on the board's behalfapproved by order by:of the board of truslees, as the company

Page 5

Report of the Independent Auditors to the Members of

Studio 3 Arts

Opinion

We have audited the financial statements of Studio 3 Arts (the ‘charitable company’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice),

In our opinion the financial statements: - give a true and fair view of the state of the chantable company’s affairs as at 31 March 2022 and of its incoming resources and application of resources. including its income and expenditure, for the year then ended: - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance wilh the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with international Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are furtner described in the Auditors' responsibilities for the audit of the financial Statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant ta our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accaunting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this repon.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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,

In connection with our audit of the financial statements, 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 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 nse to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard,

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit: - the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the tight of the 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 Report of the Trustees

:

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report ta you if, in our opinion: - adequate accounting records have not been kept or retums adequate for our audit have not been recerved from branches not visited by us: or - the financial statements are not in agreement with the accaunting 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 audil.

Page 6

Report of the Independent Auditors to the Members of

Studio 3 Arts

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities, 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 salisfied that they give a true and fair view, and for such internai control as the trustees determine is necessary to enable the preparation of financial statements that are free from materia! misstatement. whether due to fraud or error.

In prepanng the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclostng. as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a quarantee that an audit conducted in accordance with ISAs (UK) will always detect a matenal 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 decisians of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above. to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the charity and the environment in which is Operates, and considered the risk of acts by the charity that were contrary to applicable laws and regulations. We discussed amongst the audit team the identified laws and regulation, and remained alert to any indications of noncompliance.

During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Charities Act 2016 and where applicable, Companies Act 2006. Our tests included agreeing the financial statement disclosure to underlying supporting documentation and enquiries with management, Our procedures in relation to fraud included but were not limited to: enquiries of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud.

Based on the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more than compliance with a law or regulation is removed from the events and transactions reflected in the financial statement, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occuring due to fraud rather than errors, as fraud invoives intentional concealment, foregery, collusion, omission or miscegenation.

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,org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 7

Report of the Independent Auditors to the Members of Studio 3 Arts

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. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to slate 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 lo anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Wills (Senior Statutory Auditor) for and on behalf of Haines Watts Essex LLP Juniper House Warley Hill Business Park The Drive Brentwood Essex CM13 3BE

Dale: sdasctissuincoiieacons

Page 8

STUDIO 3 ARTS

Statement of Financial Activities for the year ended 31 March 2022

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----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2022|2021| |Unrestricted|Restricted|Total|Total| |funds|funds|funds|funds| |Notes|£|£|£|£| |Income|and|endowments|from| |Donations|and|legacies|2|466,766|1,710,102|2,176,868|1,114,128| |Investment|income|3|39|-|39|180| |Other|income|:|ne,|:|27,643| |Total|466,805|1,710,102|2,176,907|1,141,921| |Expenditure|on| |Charitable|activities|4| |Project|casts|23,514|568,768|592,282|715,806| |Audit|fees|6,850|-|8,850|7,500| |Other|support|costs|436,878|st|436,878|___|21,607| |Total|469,242|568,768|1,038,010|744,913| |NET INCOME/(EXPENDITURE)|(2,437)|1,141,334|1,138,897|397,008| |Transfers|between|funds|13|1,186,431|(1,186,431)|.|-| |Net|movement|in|funds|1,183,994|(45,097)|1,138,897|397,008| |Reconciliation|of funds| |Total|funds|brought|forward|448,859|198,314|647,173|250,165| |Total|funds|carried forward|1,632,853|153,217|1,786,070|647,173|

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The notes form part of these financial statements Page 9

STUDIO 3 ARTS

Balance Sheet 31 March 2022

2022 2021
Unrestricted
funds		 Restricted
funds		 Total
funds		 Total
funds
Notes £ £ £ F
Fixed assets
Tangible assets 10 1,900,389 - 1,900,389 195,562
Current assets
Debtors nel 138,321 - 138,321 320,479
Cash atbank 169,429 153,217 322,646 370,851
307,750 153,217 460,967 691,330
Creditors
Amounts falling due withinone year 12 (575,286) - (575,286) (239,719)
Net current assets (267,536) 153,217 (114,319) 451,611
Total assets less current liabilities 1,632,853 153,217 1,786,070 647,173
NETASSETS 1,632,853 153,217 1,786,070 647.173
Funds 13
Unrestricted funds 1,632,853 448,859
Restricted funds 153,217 198,314
Totalfunds 1,786,070 647,173

The financial statements were approved by the Board of Trustees and authorised for issue on [ins and were signed on its behalf by:

te Marc, 2023

The notes form part of these financial statements

Page 10

STUDIO 3 ARTS

Cash Flow Statement
forthe year ended 31 March 2022
2022 2021
Notes =z £
Cash flowsfrom operating activities
Cash generated from operations 1 1,698,995 225,383
Netcash provided byoperating activities 1,698,995 225,383
Cash flowsfrom investing activities
Purchase oftangible fixed assets
Interest received		 (1,747,239)
39		 (89,940)
150
Net cash used in investing activities (1,747,200) (89,790)
Change in cash andcash equivalents in
the reporting period
Cash andcash equivalents atthe		 (48,205) 135.593
beginning ofthe reporting period 370,851 235,258
Cash and cash equivalents at the end of
thereportingperiod 322,646 370,851

The notes form part of these financial statements

Page 11

STUDIO 3 ARTS

Notes to the Cash Flow Statement for the year ended 31 March 2022

ls Reconciliation of net income to net cash flow from operating activities

2022 2021
£ £
Netincome forthe reporting period (as per the Statement of Financial
Activities)		 1,138,897 397,008
Adjustments for:
Depreciation charges 42,413 16,784
Interest received (39) (150)
Decrease/(increase) in debtors 182,158 (102,794)
Increase/(decrease) in creditors 335,566 (85,465)
Net cash provided by operations 1,698,995 225,383
2: Analysis ofchanges in net funds
At 1.4.21 Cash flow At 31.3.22
£ £ £
Net cash
Cash atbank 370,851 (48,205) 322,646
370,851 (48,205) 322,646
Total 370,851 48,205) 322,646

The notes form part of these financial statements

Page 12

STUDIO 3 ARTS

Notes to the Financial Statements for the year ended 31 March 2022

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.

Company status

The charity is a company limited by guarantee, registered in the UK. The members of the company are the Trustees

Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reparting period.

The annual depreciation charge for tangible fixed assets is considered a key accounting estimate as it is sensitive to changes in the estimated useful economic fives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates and the physical condition of the assets.

Income

All income is recognised in the Statement of Financial Activities once the charily has entitlement to the funds, itis 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, itis probable that a transfer of econamic 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. Long leasehold - 4-10% on cost Fixtures and fittings - 20% on cost

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

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 particular restricted purposes.

Designated funds are unrestricted funds that the trustees have set aside for a particular purpose.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

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

Page 13

Notes to the Financial Statements - continued for the year ended 31 March 2022

STUDIC 3 ARTS

A: Accounting policies - continued

Interest receivable interest on funds held on deposit is included when receivable and the amount can be measured reliably by the chanty, this is normally upon notification of the interest paid or payable by the bank,

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepaymenis are valued at the amount prepaid net of any trade discounls due.

Cash at bank and in hand

Cash at bank and in hand inctudes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or apening of the deposit or simitar account.

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 charity 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.

2, Donations and legacies

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2022 2021
£ £
Grants 2,161,434 1,090,966
Other income 15,434 23,162
2,176,868 1,114,128
3. Investment income
2022 2021
£ £
Deposit account interest 39 150
4. Charitable activities costs
Direct Support
Costs castsnote (see5) Totals
£ £ £
Project costs 592,282 - 592,282
Audit fees - 8,850 8,850
Other support costs 408,832 28,046 436,878
1,001,114 36,896 1,038,010
————— —a——=—— ———S
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Page 14

STUDIO 3 ARTS

Notes to the Financial Statements - continued for the year ended 31 March 2022

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||||||| |---|---|---|---|---|---| |5.|Support|costs| |Governance| |Finance|costs|Totals| |£|£|£| |Audit|fees|-|8,850|8,850| |Other|support|costs|28,046|-|28,046| |28,046|8,850|36,896| |6.|Net|income/(expenditure)| |Net|income/(expenditure)|is|stated|after|charging/(crediting):| |2022|2021| |£|£| |Auditors remuneration|8,850|7,500| |Depreciation|- owned|assets|42,413|16,785|

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i Trustees‘ remuneration and benefits There were no trustees’ remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021. Trustees’ expenses

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||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| |There were no|trustees’|expenses|paid|for the year|ended|31|March|2022|nor|for the year ended|31|March|2021.| |8.|Staff|costs| |2022|2021| |£|£| |Wages|and|salaries|267,381|252,822| |Social|security|costs|27,049|26,376| |Other|pension|costs|4,123|4,117| |298,553|283,315| |The|average|monthly|number|of|employees|during|the|year was|as|follows:| |2022|2021| |Charitable|activities|8|6|

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

Page 15

Notes to the Financial Statements - continued for the year ended 31 March 2022

STUDIO 3 ARTS

9. Comparatives forthe statement offinancial activities Comparatives forthe statement offinancial activities
Unrestricted
funds		 Restricted
funds		 Total
funds
£ £ £
tncome and endowments from
Donations and legacies 375,547 738.581 1,114,128
Investment income 150 - 150
Other income 27,643 - 27 643
Total 403,340 738,581 1.141,921
Expenditure on
Charitable activities
Project costs 156,186 559.620 715,806
Audil fees 7,500 - 7,500
Other support costs 21,607 - 21,607
Total 185,293 559.620 744,913
NET INCOME 218,047 178,961 397,008
Transfers betweenfunds 48,465 (48.465) :
Net movement in funds 266,512 130,496 397,008
Reconciliation offunds
Total funds brought forward 182,347 67,818 250,165
Totalfunds carriedforward 448,859 198,314 647,173
10. Tangible fixed assets
Improvements Fixtures
Long to and
leasehold property fittings Totals
£ £ £ £
Cost
At 1 April 2021
Additions
Reclassification		 209,804
842,085
878,665		 -
1,255,235
(1,255,235)		 175,364
26,490
-		 385,168
2,123,810
(376,570)
At 31 March 2022 1,930,554 - 201,854 2,132,408
Depreciation
At 1 April 2021 22,113 - 167,493 189,606
Charge for year 35,680 - 6,733 42,413
At 31 March 2022 57,793 * __ 174,226 232,019
Net book value
At31 March 2022 1,872,761 - 27,628 1,900,389
At31March2021 187,691 : 7,871 195,562

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STUDIO 3 ARTS

Notes to the Financial Statements - continued for the year ended 31 March 2022

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|||||||||| |---|---|---|---|---|---|---|---|---| |11.|Debtors: amounts|falling due within one year|2022|2021| |£|£| |Trade|debtors|108,391|438,602| |Prepayments|and|accrued|income|29,930|181,877| |138,321|320,479| |42.|Creditors:|amounts|falling|due|within|one|year| |2022|2021| |£|E| |Trade|creditors|497,650|45.405| |Other|creditors|6,507|1,670| |Accruals|and|deferred|income|69,129|192,644| |575,286|239,719| |43.|Movement|in funds| |Net|Transfers| |movement|between|At| |At|1.4.21|in|funds|funds|31.3.22| |£|£|£|£| |Unrestricted|funds| |General|fund|191,168|22,539|(157,749)|55,958| |Designated|fund|257,691|(24,976)|1,344,180|1,576,895| |448,859|(2,437)|1,186,437|1,632,853| |Restricted|funds| |Creative|Barking|&|Dagenham|Project|162,108|(42,839)|.|119,269| |Cultural|Recovery|Fund|19,706|(85,856)|66,150|-| |City|of London|Corporate|Response|Fund|16,500|(16,500)|=|a| |Capital|Project|-|1,255,235|(1,255,235)|-| |CIN|.|33,948|-|33,948| |YEF|=|.|(2,654)|2,654|-| |198,314|1,141,334|(1,186,431)|153,217| |TOTAL FUNDS|647,173|1,138,897|-|1,786,070|

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Page 17

STUDIO 3 ARTS

Notes to the Financial Statements - continued for the year ended 31 March 2022

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |13.|Movement|in funds|- continued| |Net|movement|in|funds,|included|in|the|above|are|as|follows:| |Incoming|Resources|Movement| |resources|expended|in|funds| |£|£|£| |Unrestricted|funds| |General|fund|466,805|(444,266)|22,539| |Designated|fund|-|(24,976)|(24,976)| |466,805|{469,242)|(2,437)| |Restricted|funds| |Creative|Barking|&|Dagenham|Project|309,875|(352,714)|(42,839)| |Cultural|Recovery|Fund|-|(85,856)|(85,856)| |City|of|London|Corporate|Response|-|(16,500)|(16,500)| |Big|Deal|4,100|(4,100)|-| |Capital|Project|1,255,235|-|1,255,235| |CIN|50,000|(16,052)|33,948| |CIN|Covid|39,650|(39,650)|-| |GofE|32,197|(32,197)|-| |Kickstart|16,200|(16,200)|-| |YEF|2,845|{5,499)|(2,654)| |1,710,102|(568,768)|1,141,334| |TOTAL FUNDS|2,176,907|(1,038,070)|a|38,897|

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Page 18

STUDIO 3 ARTS

Notes to the Financial Statements - continued for the year ended 31 March 2022

43. Movement in funds - continued

Comparatives for movement in funds

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|||||||||| |---|---|---|---|---|---|---|---|---| |Net|Transfers| |movement|between|At| |Al|1.4.20|in|funds|funds|31.3.21| |Unrestricted|funds|£|ti|£|£| |General|fund|5,978|218,047|{32,857)|191,168| |Designated|fund|176,369|-|81,322|257|691| |182,347|218,047|48.465|448,859| |Restricted|funds| |Creative|Barking|&|Dagenham|Project|67,818|94,290|-|162,108| |Cultural|Recovery|Fund|-|19,706|-|19,706| |City of|London|Carporate|Response|Fund|-|16,500|-|16,500| |Capital|Project|_-|48,465|(48.465)|:| |67,818|178,961|(48,465)|198,314| |TOTAL FUNDS|250,165|397,008|-|647.173|

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Page 19

Notes to the Financial Statements - continued for the year ended 31 March 2022

STUDIO 3 ARTS

13. Movement in funds - continued

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Comparative|net|movement|in|funds,|included|in|the|above|are|as|foltows:| |Incaming|Resources|Movement| |resources|expended|in|funds| |£|£|£| |Unrestricted|funds| |Generali|fund|403,340|(185,293)|218,047| |Restricted|funds| |Creative|Barking|&|Dagenham|Project|308,247|(213,957)|94,290| |Cultural|Recovery|Fund|149,252|{129,546)|19,706| |City|of|London|Corporate|Response|Fund|22,650|(6,150)|16,500| |Capital|Project|52,472|(4,007)|48,465| |CIN|35,883|(35,883)|-| |CIN|Covid|39,650|(39,650)|-| |GofE|21,185|(21,185)|-| |YEF|33,804|(33,804)|-| |Lottery|75.438|(75,438)|-| |738,581|(559.620)|178,961| |TOTAL FUNDS|1,141,921|(744,913)|397,008|

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Page 20

STUDIO 3 ARTS

Notes to the Financial Statements - continued for the year ended 31 March 2022

13. Movement in funds - continued

A current year 12 months and prior year 12 months combined position is as follows:

At 1.4.20 Net
movement
in funds		 Transfers
between
funds		 At
31.3.22
Unrestricted funds £ £ ba £
General fund
Designated fund		 5,978
176,369		 240,586
(24,976)		 (190.606)
1,425,502		 55,958
1,576,895
Restricted funds 182,347 215,610 1,234,896 1,632,853
Creative Barking &Dagenham Project
Cultural Recovery Fund
Capital Project
CIN
YEF		 67,818
-
-
-
-		 51,451
(66,150)
1,303,700
33,948
(2,654)		 -
66,150
(1.303,700)
-
2.654		 119,269
-
.
33,948
_
67,818 1,320,295 (1,234,896) 153,217
TOTALFUNDS 250,165
SSS		 1,535,905
—=——————		 -
———es		 1,786,070
=

Page 21

STUDIO 3 ARTS

Notes to the Financiat Statements - continued for the year ended 31 March 2022

13. Movement in funds - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

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Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 870,145 (629,559) 240,586
Designated fund - (24,976) (24,976)
Restricted funds 870,145 (654,535) 215,610
Creative Barking & Dagenham Project 618,122 (566,671) $1,451
Cultural Recovery Fund 449,252 (215,402) (66,150)
City of London Corporate Response Fund 22,650 (22,650) .
Big Deal 4,100 (4,100) -
Capital Project 1,307,707 (4,007) 1,303,700
CIN 85,883 (51,935) 33,948
CIN Covid 79,300 (79,300) -
GofE 53,382 (53,382) -
Kickstart 16,200 (16,200) -
YEF 36,649 (39,303) (2,654)
Lottery 75,438 (75,438) -
2,448,683 (1,128,388) 1,320,295
TOTAL FUNDS 3,318,828 (4,782,923) 1,535,905
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Designated funds

The trustees have decided to designate the net book value of the leasehold property in order io present a clearer picture of their liquid assets held in the General Fund.

They have also designated £70k of funds to cover the following liabilities, in the unlikely event of organisational liquidation:

These liabilities have been assessed on the basis of the revised staff headcount,

The trustees have decided to hold 70% of the property's net book value as designated rather than general funds. Restricted funds were used to pay for the improvements to the property held by Studio 3 Arts. As per the specifics of the individual donations, once expended in line with the restriction, these resulting property improvements have been reclassified as designated or general in nature

Page 22

STUDIO 3 ARTS

Notes to the Financia! Statements - continued for the year ended 31 March 2022

——

13. Movement in funds - continued

Restricted funds
Name ofrestricted
fund		 Balance £ Description,
nature
andpurpose offund
Creative Barking & 119,269
Dagenham Project Funding forthe sole purpose of
delivering Creative People and
Places.
Cultural RecoveryFund - To assist the organisation through
the challenges presented by the
pandemic.
City of London
CorporateResponse		 -
Fund Cultural Connectors tosupport
their development and to allow
them to share their practise within
the local community.
Capital Project : To realise the refurbishment of our
HQ's on Boundary Road which
includes a 110 seat theatre, studio
space, library, and foyer area.
Children in Need 33,948 To focuson delivering a
programmeof work, on line and,
when allowed, in person toyoung
people.
Youth InvestmentFund - Contributed funding to Big Deal to
allow forthe expansion of the
project

14. Related party disclosures

There were no related party transactions for the year ended 31 March 2022.

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Page 23
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STUDIO 3 ARTS

Detailed Statement of Financial Activities for the year ended 31 March 2022

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|||||| |---|---|---|---|---| |2022|2021| |£|£| |Income|and|endowments| |Donations|and|legacies| |Grants|2,161,434|1,090,966| |Other income|15,434|23,162| |2,176,868|1,114,128| |Investmant|income| |Deposit|account|interest|39|150| |Other|income| |Furlough income|-|27,643| |Total incoming|resources|2,176,907|1,141,921| |Expenditure| |Charitable|activities| |Wages|267,381|252,822| |Social|security|27,049|26,376| |Pensions|4,123|4,117| |Insurance|6,200|3.624| |Telephone|8,860|8,006| |Postage|and|stationery|4,255|4.212| |Advertising|48,952|18,462| |Sundries|4,325|5,080| |Travel|3,107|21,462| |Property|costs|7,374|6,251| |Galleon|Centre|Overheads|502,239|288,974| |Artist|fees|§3,919|32,540| |Computer|costs|20,580|25,476| |Bank|charges|337|1,620| |Short|leasehold|35,680|8,618| |Fixtures|and|fittings|6,733|8,166| |1,001,114|715,806| |Support|costs| |Finance| |Accountancy|and legal fees|28,046|21,607| |Governance|costs| |Auditors'|remuneration|8,850|7,500| |Total|resources|expended|1,038,010|744,913| |Net income|_|1,138,897|397,008|

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This page does not form part of the statutory financial statements

Page 24