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2021-03-31-accounts

Registered number: 3345162 Charity number: 1063671

THE CREATIVE ART HOUSE

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

THE CREATIVE ART HOUSE

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1
Chair's statement 2
Trustees' report 3 - 14
Independent auditor's report on the financial statements 15 - 19
Statement of financial activities 20
Balance sheet 21 - 22
Statement of cash flows 23
Notes to the financial statements 24 - 43

THE CREATIVE ART HOUSE

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees C A Wills,Chair
J Glaister(Resigned 11 November 2020)
N Wilson(Resigned 11 November 2020)
A Asres(Appointed 11 November 2020)
E Wood(Appointed 11 November 2020)
T Raabe-Webber(Appointed 11 November 2020)
B Esapathi(Appointed 11 November 2020)
S Hansom(Appointed 11 November 2020)
J Cook
M Faull
Company registered
number
3345162
Charity registered number
1063671
Registered office
The Art House
Drury Lane
Wakefield
WF1 2TE
Chief executive
S Thornbury
Independent auditor
BHP LLP
Chartered Accountants
Rievaulx House
1 St Mary's Court
Blossom Street
York
YO24 1AH
Bankers
Unity Tust Bank plc
9 Brindley Place
Birmingham
B1 2HB
Solicitors
Hempsons
The Exchange
Station Parade
Harrogate
HG1 1DY

Page 1

THE CREATIVE ART HOUSE

(A company limited by guarantee)

INTRODUCTION FROM THE CHAIR

FOR THE YEAR ENDED 31 MARCH 2021

The chair presents her statement for the year.

There are times, there are moments, when more is possible. In March 2020, The Art House Staff and Trustees finally raised their heads from implementing a successful two year turn around plan, only to be met by the challenges of a pandemic staring them back in the face.

Yet, this incredible team of hard working and values-driven individuals rose to the challenge, and successfully navigated the organisation in a way that surpassed any of our expectations. Not without fear, heartache, and a lot of hard work. But always driven by a firm belief in and commitment to our community of artists and the wider people of Wakefield.

At The Art House, we regularly ask ourselves, What is the fullest role an Arts Centre can play in its community? The pandemic has provided us with a myriad of answers to that question.

We’ve supported food distribution to needy families through a partnership with The Real Junk Food Project. The NHS contracted us to house the new Safe Space, a seven night a week drop-in emergency mental health service run by three local mental health charities. We provided remote art workshops for people with dementia and their carers, as well as for refugees and asylum seekers. During the holidays we distributed 1,000 creative gift boxes to struggling families, including those in the homeless accommodation across our street. We worked with NOVA and the Leeds Community Foundation to leverage the money we had been granted from the Small Business Support grants for our interim use spaces and distributed over £208,000 of financial support to local artists and creative entrepreneurs who were slipping through the government’s relief programmes. And to keep up our community’s (and our own) morale, we planted 1,000 sunflowers around The Art House.

While Covid has been challenging for us, impacting both our earned income streams and our programming, it has also called upon us to go deeper into the role we could play in our community than even we had imagined. And as we begin to tentatively emerge from the pandemic and begin to operate in this new post-covid world, we want to hang onto that. In November 2020, we saw the scheduled stepping down of two long-serving trustees in November of 2020, Jane Glaister and Nigel Wilson. I would like to thank them on behalf of the organisation for their dedicated service over the years. We wish them the best for the future.

After a very successful recruitment campaign, we were delighted to welcome five new trustees to the board, who now make up the most diverse board in The Art House’s history. They are a gifted group and are committed to supporting this next phase of The Art House’s development.

The coming year will no doubt bring more challenges as we adjust to a new reality; however, we have more faith than ever in the power that art has to make a difference in people’s lives and in the communities they live in. We know that we will rise to meet whatever lay ahead.

I would like to thank the Trustees of The Art House and the fantastic Art House staff, who have worked so very hard over this last year. I would also like to pay tribute to all of the studio holders, resident artist and stakeholders that have weathered this journey with us. Your courage and humanity have been inspiring

Anamaria Wills, Chair Date: 18 October 2021

Page 2

THE CREATIVE ART HOUSE

(A company limited by guarantee)

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the audited financial statements of the charity for the 1 April 2020 to 31 March 2021 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

Since the charity qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

The prime objectives of the organisation are to enable disabled and non-disabled visual artists to access opportunities to develop their creative practice, in an inclusive and accessible environment, through:

  1. Supporting artists to develop their practices, reach new audiences and cultivate wider networks.

  2. Actively promoting and establishing equality in the visual arts for disabled and non disabled artists.

  3. Providing residencies, exhibitions, training, membership and one to one advice.

The Art House is an organisation working towards equal access for ALL artists, focused on identifying, highlighting and removing physical, philosophical, educational, social and economic barriers for Visual Artists.

As such, we have expanded our work to include other marginalised artists and creative practitioners. For example our Studio of Sanctuary programme is the first of its kind in the UK to provide free professional development, studio space and pastoral support for asylum seekers and refugee artists.

In addition, we are also highly committed to using arts and creativity to engage and empower the people of Wakefield. As such, we have opened the organisation out to the community - providing a range of social impact projects, public classes and events. We are also working with the council and local businesses to help regenerate Wakefield through arts, culture and the creative industries.

Page 3

THE CREATIVE ART HOUSE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

b. Activities undertaken to achieve objectives

The Art House buildings are fully accessible and include 50 studio spaces for artists, makers and creative businesses. We also have a fully equipped and staffed print studio, meeting rooms, an exhibition gallery, an event space, residency accommodation, a coffee house and a maker’s shop.

Through its Artistic Programme, The Art House provides time, space and support for artists to develop their work and connect with audiences through:

Our Social Impact and Public Engagement Activities include:

The Trustees have considered the Charity Commission’s general guidance on public benefit when reviewing the activities for the year. Further information on the activities which provided public benefit during the year is provided below.

Achievements and performance

a. Key performance indicators

The Charity’s key financial performance indicators are based on targets set for:

Earned Income: income from studio occupancy, meeting and event space rentals, public courses and classes and contracts for services, as well as their related expenses

Charitable Income: primarily from the Arts Council England NPO, as well as from other statutory or charitable sources and individual donors.

Page 4

THE CREATIVE ART HOUSE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

b. Review of activities

2020-21 will forever be known as the year of Covid-19. In fact, as of this writing (October 2021), we are still feeling the effects and fallout of the pandemic. We have re-opened and the public is beginning to come back to courses and events; however staffing capacity and operations are still being affected by the pandemic and there will continue to be a period of recovery, both economically and emotionally, as well as an unknown landscape ahead as we discover how the fall-out from Covid impacts our ongoing operations, capacity and community.

While Covid has been challenging for us, impacting both our earned income streams and our programming, it has also called upon us to go deeper into the role we could play in our community than even we had previously imagined. It has brought into stark relief the potential there is for The Art House to play a radical and transformative role for creatives and communities in Wakefield. The pandemic has galvanized us to stay on this path and continue to explore.

We closed due to Covid-19 from the 19th of March 2020. 90% of our earned income streams dried up immediately. We also refunded bookings, gave a rent moratorium to Studio holders and honoured all contracts with artists and freelancers.

We put the organisation into stasis upon the first lockdown. We furloughed all staff except the CEO and Marketing Director. We re-budgeted for the year, sensitively cutting core costs while trying to protect jobs and our capacity to bounce back. We repurposed NPO funds.

We received £376,729 of Small Business Grants over the course of the pandemic, and are proud to say that we re-granted out £208,099 to local artists and creative businesses who were falling through the cracks of Government relief and really struggling. We weren’t just trying to save the livelihoods of people we work with, but also the local cultural infrastructure we rely on for business. One local artists who runs creative programmes for learning disabled young people noted: ‘I can’t explain the relief you have created by giving us this grant. I cannot afford to cover all the staff costs with the small contributions that members give and I didn't want to increase the fees. There is such a desperate need to get these sessions back up and running, and many parents and carers have said how many of the members have deteriorated and are in need of the stimulation.’ This grant means I don't need to worry financially for these classes and I don't have to take another pay cut which was what is was looking likely to have to happen.’

In July we re-opened safely to studio holders. In September we safely re-opened the print room to the public for classes, courses and studio use and we also were awarded a Culture Recovery Grant to support re-opening efforts scheduled for January.

Unfortunately, the winter 2020 Lockdown came into force before January, and we did not actually re-open fully to the public until May 2021.

Throughout the pandemic period, we have maintained meaningful relationships with our studio holders, resident artists, audiences, our course participants; with our partners, our community groups and with the local authorities. This may be why studio rentals have not dropped off and our engagement figures were still impressive last year, despite being closed. Our staff, and the organisation as a whole, proved resilient over the pandemic, although this is not to say that it has not taken a deep emotional and physical toll.

The early signs are that the emerging business model since the turnaround in 2017-2019 had proven to be the right one for the organisation, however, The Art House remains engaged in deep thinking about how to navigate a post-Covid era.

Page 5

THE CREATIVE ART HOUSE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

Business Developments and New Initiatives

Income

no furlough so hit pretty hard this time. Thank you.’

Cap Ex Works

Page 6

THE CREATIVE ART HOUSE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

Staff

Trustees

Artistic Programme

Access and Diversity

Accessibility, diversity and equality are our founding principles and much of our work in this area has been sector leading over the last 28 years. We know the arts have a vital role to play in modelling a diverse and inclusive society, especially for our local area which is 96% white British. We were proud to be rated ‘Outstanding’ in 2021 by Arts Council England for our focus on access and diversity: ‘The Art House (TAH) continues to take a leading role in championing the Creative Case for Diversity across the sector.'

TAH have an advanced strategic approach to addressing barriers within the sector for artists from underrepresented backgrounds with a broad focus on inclusion and equalities (e.g. significant programmes around refugee and asylum seekers, visible disabilities, neuro-diversity and health agendas) TAH has pioneered the UK’s first ‘studio of sanctuary’ to offer provision for refugee and asylum seekers. TAH are one of few fully disability accessible studio buildings, which supports talent with the delivery of residencies, international residencies, live/work, showcase exhibitions, artist talks, events and commissioning collaborations across the national cultural landscape, ensuring that diverse artists are presented and profiled. Work with the diverse studio holders has championed inclusion and promoted fair-pay as an equality agenda under the creative case.

During the pandemic, TAH has delivered a programme of grants supporting artist livelihoods, especially for those from (or working with) asylum seekers, the disabled, or those from other marginalised backgrounds. There is a highly advanced

Page 7

THE CREATIVE ART HOUSE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

organisation-wide approach to inclusion and the creative case at the centre of all the organisation’s work and decision making at board level.’

Audiences, Social impact and Engagement Work

The Art House is a crucial part of Wakefield’s creative infrastructure, and this pandemic year proved that more than ever. In April, we postponed the residencies and artistic programme we had planned for the year, still making the fees available to artists who wanted them paid during that time. We then pivoted to focus on what we could do to support artists and the most vulnerable in our communities to get through lockdown and the pandemic. These activities included:

Practical Responses to the pandemic in our community

Commissions

Pivoting to Online delivery

Page 8

THE CREATIVE ART HOUSE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

online, supplemented by physical packs of art supplies which were delivered. We did not rush in immediately to do this because of the difficulties of engaging our outreach participants - people with Dementia and their carers, as well as asylum seekers and refugees – online. However, we are pleased to say that through a lot of effort and partnership working, we managed to get the programmes up and running and had excellent engagement.

Financial review

a. Going concern

The Trustees have reviewed going concern in light of the current and forecast financial position of the charity. We have prepared a detailed budget to March 2023. We are confident that our application to take up Arts Council England’s offer of extendng our NPO funding for an additional year (2022-23) will be successful.

In making the going concern assessment the Trustees have also considered the charity’s principal financial risks (see Risk Management section - page 12) and the current level of reserves and target reserves as set out in the reserves policy (page 10). As part of our Risk Management & contingency planning we have produced a scenario for the unlikely event that we may have to significantly retract the charity or wind down completely. In either case, we have enough in reserves to cover all redundancies should that be necessary.

After making appropriate enquiries therefore, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Page 9

THE CREATIVE ART HOUSE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

b. Financial review

The Art House recorded a net surplus of £253,982 for the year, before transfers and depreciation.

This result saw our free reserves of the charity at 31 March 2021 at £100,567 after the deduction of unrestricted reserves held as fixed assets. This is slightly above the stated aim of the reserves policy, which is £100,000. Total funds at 31 March 2021 are £3,725,881 (2020: £3,651,971) including restricted funds of £3,449,424 (2020: £3,589,424).

c. Reserves policy

In forming a reserves policy, the Trustees have regard to the financial impact of the principal risks as set out on page 12. In particular:

In setting a reserves policy the trustees have also considered the cost of achieving an orderly wind-down of the charity's activities should the Art House no longer become viable. The cost of this wind-down would seek to mitigate the immediate impact to beneficiaries of the charity through provision of a continued facility for a short period of time whilst alternative service provision is sourced.

In light of these financial risks the trustees have set a reserve target of £100,000. Our current level of free reserves is £100,567.

Funding – There is no doubt that the successful turnaround plan that we implemented for The Art House between 20182020 laid the strong foundation we needed for weathering the pandemic. However, the gains we made around growing our earned income streams and creating a more balanced income mix between statutory and earned income has obviously now tilted back to Statutory Funding being the larger slice of the pie due to Covid government support. However, we hope to re-dress this balance over the next two years.

The Art House is generously supported as one of Arts Council England’s National Portfolio Organisations, with an annual funding level of £247,087 per annum until March 2023.

In addition, we earn income through a variety of sources, including studio rental fees, contracts for services, interim-use space management and classes and courses.

We also receive charitable income from Wakefield Council (project-based), Foundations and Trusts and Individual Donors.

The Art House manages its financial risks carefully through a considered reserves policy, an active risk register and ongoing fundraising and income generation development.

Page 10

THE CREATIVE ART HOUSE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

d. Principal funding

The Charity’s principal sources of funding are:

Core: Arts Council England, Earned Income Projects: The Tudor Trust, Arts Council England Small Capital Expenditure Grant, Misc trusts and foundations Covid Related: Furlough Scheme, Small Business Relief Funding, Culture Recovery Grant

Structure, governance and management

a. Constitution

The Creative Art House is registered as a charitable company limited by guarantee and was set up in April 1997. The charity is governed by its Articles of Association and is registered with charity number 1063671.

The objects of the charity are specifically restricted to:

  1. To advance the education of the public in arts and culture by providing experiences of art and artists through exhibitions, residencies, commissions, workshops and events.

  2. The relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage in particular through visual arts and crafts.

b. Methods of appointment or election of Trustees

The Articles of Association requires a minimum of three Trustees, each appointed for a three-year term. Trustees are recruited by panel interview against agreed criteria to effectively meet the Charity’s obligations and responsibilities.

c. Organisational structure and decision-making policies

The Board of Trustees agree the strategic direction and policy statements of the Company. Executive and operational responsibilities are delegated to the Company’s senior management and support staff.

The Board meets four times per year and is supported by two sub-committees of Trustees which meet regularly throughout the year and report to the Board. These are the Finance, Human Resources and Risk Committee and the Estates Committee. Each Committee is chaired by one of the Trustees under terms of reference delegated by the Board.

There is also a Programme Working Group which consists of studio holders, artists in residence, partners and collaborators inputting into debate and decision making with the The Art House programme team (led by the Chief Executive).

d. Policies adopted for the induction and training of Trustees

Persons invited to join the Board of Trustees are first invited to attend a Board meeting as an observer. When first becoming a member of the Board, the Trustee is provided with an information pack regarding the organisation, which includes all company policies and procedures.

Appropriate skills development opportunities are provided for all Trustees and staff.

Page 11

THE CREATIVE ART HOUSE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

e. Pay policy for senior staff

The Trustee Board determines and agrees the overall policy for the remuneration and pension arrangements for all the Charity’s employees.

The remuneration policy is designed to attract and engage those with the required skills and experience to meet the Charity’s aims and objectives, aligned with the values of its Trustees, beneficiaries, partners and supporters.

The Board benchmarks pay levels against local similar salaries where information is available and utilises external professional advisors and salary databases where necessary.

f. Financial risk management

The Trustees and Executive have identified the principal risks to which the Charity is exposed and assessed their possible impact on the services provided and financial security of the Charity. They are satisfied that the necessary systems and controls are in place, and under regular review, to mitigate the Charity’s exposure to those risks. The Finance, HR and Risk Committee specifically considers risk and reports to the Board and a comprehensive risk register is in place.

Key risks identified by the charity include:

Funding – The Art House is currently reliant on the generous support of the Arts Council for the majority of its income. The Art House’s annual NPO funding level is £247,087 per annum until March 2022. However, this funding does not cover the full operations of the building or the full artistic programme. The Trustees are committed to providing an Artistic Programme based on ‘excellence’ – to do so requires further funding. This is why the new strategy of developing new earned income streams and establishing more of a mixed economy has been adopted by Trustees.

Reputation – The Art House seeks to be a relevant and innovative arts organisation. The consequences of not adapting to the needs of the sector and responding to artists and audiences jeopardises our position as a national lead for diversity and the visual arts. The Art House approach to risk taking and adaptability is to operate a model that can respond flexibly to shifting perspectives and agenda, recognise opportunities and possibilities and is managed through reporting, feedback and evaluation.

Building costs – Phase 1 of the Art House is approaching ten years in age and the requirement to repair certain aspects of the building is increasing. The cost of repairs is managed through a maintenance plan which prioritises critical works and carefully appraises any investment being considered. This plan is discussed regularly at meetings of the Estates committee, a sub-committee of the Board.

Page 12

THE CREATIVE ART HOUSE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Plans for future periods

Ironically, The Art House came into its own during the pandemic. We have grown our capacity and our impact. We are keen to retain that capacity and impact as we pick up the pieces and begin to operate again in a new, post-pandemic world.

We have re-opened and re-started our artist residency programme. At the time of this writing (Oct 2021), we have just opened our long-delayed Circle/Sphere show, celebrating Neon Workshop’s 10 years in Wakefield with an exhibition of American Neon Artist Fred Tschida’s vibrant rotating neon sculptures.

We have just launched the country’s first disabled accessible darkroom, working with the Disabled Photographers Association, and are now offering photo courses and darkroom memberships. We are planning on opening a Ceramics Studio in early 2022.

We are continuing to benefit and harness the opportunities that came our way during the pandemic. Safe space has extended from 3 nights a week to 7. We have been contracted by Rushbond Plc to design the branding for their Civic Quarter Development and also to undertake a Feasibility and Options Analysis for The Court House with a view to us potentially being operators.

Our Makey Wakey interim use programme is being expanded to The New Media Centre in Salford and as part of the contract, we are training up a local arts organisation in how to manage the scheme and make it their own. Our aim is to develop a national network of arts organisations doing rates mitigation in this way.

We are focusing our efforts during this upcoming year on re-building our pre-pandemic earned income streams. People are returning to classes and courses, but slowly. Meeting room and event bookings are returning, but slowly. We know we will get there.

Much of the upcoming year will focus on preparing our application for the next NPO round, which is due in February of 2022. We are thrilled with ACE’s new strategy, Let’s Create, which could have been written for The Art House, as it prioritises addressing barriers to practice and engagement.

We will also continue to look after the wellbeing of our staff, studio holders and artists. The emotional toll of the pandemic will last a long time, and we need to support each other through it.

There is much to fret about in wondering how long it will take earned income to return to pre-pandemic levels, or what the ongoing impact of the pandemic will be on the arts and the economy, or even whether the upcoming winter will bring another virus surge and other lockdowns.

However, there is much to celebrate and be positive about as well.

For example, since re-opening, we are seeing many more people coming in and just hanging out in our newly renovated foyer, drinking coffee, working on laptops, conversing over cups of tea and slices of cake. We have more families coming in. Our profile has significantly increased. More people have heard of us. More artists are calling in to enquire about studios and residencies. And our staff and studio holders are happy and excited to be back at work. There is a buzz about the place, one that in the middle of lockdown, in a quiet and closed building, was hard to imagine would ever return. But it’s back now. And we will continue to meet the challenges that lie ahead in order to keep that buzz going.

Page 13

THE CREATIVE ART HOUSE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the charity for the purposes of company law) 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 . 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 charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................ Anamaria Wills

Date: 18 October 2021

Page 14

(A company limited by guarantee)

THE CREATIVE ART HOUSE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CREATIVE ART HOUSE

Opinion

We have audited the financial statements of The Creative Art House (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the 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 preparation 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:

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 further described in the Auditor's 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 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 Directors' 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 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 report.

Page 15

THE CREATIVE ART HOUSE

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CREATIVE ART HOUSE (CONTINUED)

Other information

The other information comprises the information included in the Trustees' Report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Trustees' 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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 Directors' 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:

Page 16

(A company limited by guarantee)

THE CREATIVE ART HOUSE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CREATIVE ART HOUSE (CONTINUED)

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 charitable company's ability to continue as a going concern, disclosing, 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.

Page 17

THE CREATIVE ART HOUSE

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CREATIVE ART HOUSE (CONTINUED)

Auditor's 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 an Auditor's 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 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 assessed the susceptibility of the charitable company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

To address the risks of fraud through management bias and override controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may

Page 18

THE CREATIVE ART HOUSE

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CREATIVE ART HOUSE (CONTINUED)

involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:

https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibiIities-for-the-audit-of-the-fi/description-ofthe-auditor%e2%80%99s-responsibiIities-for. This description forms part of our Auditor's report.

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 state to them in an Auditor's 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.

Jane Marshall (Senior statutory auditor)

for and on behalf of

BHP LLP

Chartered Accountants Statutory Auditor Rievaulx House 1 St Mary's Court Blossom Street York YO24 1AH

Date:

Page 19

THE CREATIVE ART HOUSE

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Total expenditure
Net income/(expenditure)
Transfers between funds
18
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
2021
£
265,152
42,963
81,818
125
433,127
823,185
155,668
477,139
632,807
190,378
23,747
214,125
62,332
276,457		 Restricted
funds
2021
£
218,506
-
-
-
-
218,506
53,340
281,634
334,974
(116,468)
(23,747)
(140,215)
3,589,639
3,449,424		 Total
funds
2021
£
483,658
42,963
81,818
125
433,127
1,041,691
209,008
758,773
967,781
73,910
-
73,910
3,651,971
3,725,881		 Total
funds
2020
£
443,337
76,318
123,633
235
10,122
653,645
190,644
621,868
812,512
(158,867)
-
(158,867)
3,810,838
3,651,971

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 24 to 43 form part of these financial statements.

Page 20

THE CREATIVE ART HOUSE

(A company limited by guarantee)

REGISTERED NUMBER: 3345162

BALANCE SHEET

AS AT 31 MARCH 2021

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within one year
17
Net current assets
Total net assets
Charity funds
Restricted funds
18
Unrestricted funds
18
Total funds		 151,480
227,848
379,328
(164,406)		 2021
£
1,583
3,509,376
3,510,959
214,922
3,725,881
3,449,424
276,457
3,725,881		 43,670
33,275
76,945
(67,001)		 2020
£
4,751
3,637,276
3,642,027
9,944
3,651,971
3,589,639
62,332
3,651,971

Page 21

THE CREATIVE ART HOUSE

(A company limited by guarantee)

REGISTERED NUMBER: 3345162

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2021

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:

Anamaria Wills

Date: 18 October 2021

The notes on pages 24 to 43 form part of these financial statements.

Page 22

THE CREATIVE ART HOUSE

(A company limited by guarantee)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Note
Cash flows from operating activities
Net cash provided by/(used in) operating activities
21
Cash flows from investing activities
Bank interest
Purchase of tangible fixed assets
Net cash used in investing activities
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
Cash and cash equivalents at the end of the year
22		 2021
£
243,452
125
(49,004)
(48,879)
-
194,573
33,275
227,848		 2020
£
(60,018)
235
(44,407)
(44,172)
-
(104,190)
137,465
33,275

The notes on pages 24 to 43 form part of these financial statements

Page 23

(A company limited by guarantee)

THE CREATIVE ART HOUSE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charitcies: 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The Creative Art House meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared under the historical cost convention in £ sterling, which is the functional currency of the charity, and rounded to the nearest £1.

1.2 Going concern

The Trustees have reviewed going concern in light of the current and forecast financial position of the charity. We have prepared a detailed budget to March 2023. We are confident that our application to take up Arts Council England’s offer of extending our NPO funding for an additional year (2022-23) will be successful.

In making the going concern assessment the Trustees have also considered the charity’s principal financial risks (see Risk Management section - page 12) and the current level of reserves and target reserves as set out in the reserves policy (page 10). As part of our Risk Management & contingency planning we have produced a scenario for the unlikely event that we may have to significantly retract the charity or wind down completely. In either case, we have enough in reserves to cover all redundancies should that be necessary.

After making appropriate enquiries therefore, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

1.3 Income

All income is recognised once the 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.

Income tax recoverable in relation to donations received 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.

Page 24

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies (continued)

1.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at headquarters.

Costs of raising funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

1.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

1.6 Taxation

The charity is considered to pass the tests set out in 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 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.

1.7 Intangible assets and amortisation

Intangible assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

The estimated useful lives are as follows:

Amortisation is provided on the following basis:

Website - 33 % Straight line

Page 25

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies (continued)

1.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 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.

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 - over 35 years straight line
Short-term leasehold property - over 24 years straight line
Fixtures and fittings - 15% per annum straight line
Office equipment - 15% per annum straight line
Computer equipment - over 3 years straight line
Art work pieces - 15% per annum straight line

Leasehold land is not depreciated.

In the year of acquisition computer, office equipment, fixtures and fittings are depreciated from the start of the year.

1.9 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.

1.10 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.

Page 26

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies (continued)

1.11 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. 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 Statement of financial activities as a finance cost.

1.12 Financial instruments

The charity 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.

1.13 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

1.14 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

1.15 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 charity and which have not been designated for other purposes.

Designated funds comprise unrestricted 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 charity 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.

1.16 Employee benefits

The costs of short term employee benefits are recognised as an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Page 27

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies (continued)

1.17 Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The 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.

2. General information

The charity is a company limited by guarantee registered in England and Wales. The members of the company are the Trustees. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

Page 28

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

3. Income from donations and legacies

Donations
Donations including gift aid
Grants
Arts Council England - Core Grant
Arts Council England - Culture Recovery and
Capital
Partnership income
Studio of sanctuary
Artwalk
Other grants
Membership fees
Subtotal
Total 2020		 Unrestricted
funds
2021
£
2,035
251,634
-
1,425
-
-
9,001
1,057
10,058
265,152
337,120		 Restricted
funds
2021
£
-
-
176,655
-
35,351
-
6,500
-
6,500
218,506
106,217		 Total
funds
2021
£
2,035
251,634
176,655
1,425
35,351
-
15,501
1,057
16,558
483,658
443,337		 Total
funds
2020
£
15,246
247,087
25,893
61,597
35,500
17,527
38,591
1,896
40,487
443,337

4. Income from charitable activities

Provision of art facilities
Total 2020		 Unrestricted
funds
2021
£
42,963
76,318		 Total
funds
2021
£
42,963
76,318		 Total
funds
2020
£
76,318

Page 29

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Provision of art facilities
Studio rental
Studio service charge
Studio virtual		 2021
£
37,286
5,011
666
42,963		 2020
£
67,954
8,364
-
76,318

5. Income from other trading activities

Income from fundraising events

Room hire and flat
Off-site management
Print Room
Contracts for services
Other income
Total 2020		 Unrestricted
funds
2021
£
853
64,775
6,915
(3,000)
12,275
81,818
106,554		 Restricted
funds
2021
£
-
-
-
-
-
-
17,079		 Total
funds
2021
£
853
64,775
6,915
(3,000)
12,275
81,818
123,633		 Total
funds
2020
£
17,252
30,856
21,022
17,079
37,424
123,633

Page 30

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

6. Investment income

Interest received
Total 2020
Other incoming resources
Coronavirus Job Retention Scheme
Coronavirus-related support funding
Total 2020		 Unrestricted
funds
2021
£
125
235
Unrestricted
funds
2021
£
56,398
376,729
433,127
10,122		 Total
funds
2021
£
125
235
Total
funds
2021
£
56,398
376,729
433,127
10,122		 Total
funds
2020
£
235
Total
funds
2020
£
10,122
-
10,122

7. Other incoming resources

Page 31

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

8. Expenditure on raising funds

Costs of raising voluntary income

Building costs
Office costs
Catering & room hire expenses
Other staff costs
Staff costs
Depreciation
Total 2020		 Unrestricted
funds
2021
£
26,268
38,240
122
5,423
79,795
5,820
155,668
134,110		 Restricted
funds
2021
£
-
-
-
-
-
53,340
53,340
56,534		 Total
funds
2021
£
26,268
38,240
122
5,423
79,795
59,160
209,008
190,644		 Total
funds
2020
£
30,816
25,344
2,839
2,569
68,117
60,959
190,644

9. Analysis of expenditure on charitable activities

Summary by fund type

Provision of art facilities
Total 2020		 Unrestricted
funds
2021
£
477,139
432,963		 Restricted
funds
2021
£
281,634
188,905		 Total
funds
2021
£
758,773
621,868		 Total
funds
2020
£
621,868

Page 32

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

10. Analysis of expenditure by activities

Provision of art facilities
Total 2020
Analysis of direct costs
Staff costs
Depreciation
Artistic programme costs
Other project costs
Building costs
Office costs
Coronavirus business support
Governance costs (note 11)
Analysis of support costs
Staff costs		 Activities
undertaken
directly
2021
£
648,966
516,927		 Support costs
2021
£
109,807
104,941		 Total
funds
2021
£
758,773
621,868
Total
funds
2021
£
81,265
120,912
7,723
70,859
74,044
77,639
208,099
8,425
648,966
Total
funds
2021
£
109,807		 Total
funds
2020
£
621,868
Total
funds
2020
£
103,610
113,212
43,510
147,426
57,230
47,069
-
4,870
516,927
Total
funds
2020
£
104,941

Page 33

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

11. Auditor's remuneration

2021 2020
£ £
Fees payable to the charity's auditor for the audit of the charity's annual accounts 8,425 4,870

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2021
£
253,928
12,623
4,316
270,867		 2020
£
259,308
13,187
4,173
276,668

The average number of persons employed by the charity during the year was as follows:

2021 2020
No. No.
Employees 16 16

No employee received remuneration amounting to more than £60,000 in either year.

The total remuneration including employer's NI and pension attributable to the senior management team for the year was £82,663 (2020: £88,937) and consisted of the CEO & Artistic Director and the Business & Operations Director.

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL).

Page 34

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

14.
Intangible assets
Cost
At 1 April 2020
At 31 March 2021
Amortisation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Website
£
9,503
9,503
4,752
3,168
7,920
1,583
4,751

Page 35

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

15. Tangible fixed assets

Cost or valuation
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Long-term
leasehold
property
£
2,539,904
14,672
2,554,576
793,195
64,654
857,849
1,696,727
1,746,709		 Short-term
leasehold
property
£
2,346,768
-
2,346,768
488,909
97,783
586,692
1,760,076
1,857,859		 Fixtures and
fittings
£
101,332
26,054
127,386
86,584
6,410
92,994
34,392
14,748		 Office
equipment
£
38,136
-
38,136
38,136
-
38,136
-
-		 Computer
equipment
£
42,322
8,278
50,600
24,362
8,057
32,419
18,181
17,960		 Other fixed
assets
£
9,160
-
9,160
9,160
-
9,160
-
-		 Total
£
5,077,622
49,004
5,126,626
1,440,346
176,904
1,617,250
3,509,376
3,637,276

Page 36

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Tangible fixed assets (continued)

Included in long term leasehold property is land at a value of £288,000 which is not depreciated (2020: £288,000).

16. Debtors

Due within one year
Trade debtors
Prepayments and accrued income
Tax recoverable		 2021
£
26,680
121,017
3,783
151,480		 2020
£
14,781
28,889
-
43,670

17. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income
Deferred income at 1 April 2019
Resources deferred during the year
Amounts released from previous years
Deferred income at 31 March 2020		 2021
£
43,452
2,439
9,979
108,536
164,406
2021
£
2,500
-
(2,500)
-		 2020
£
35,190
4,098
8,262
19,451
67,001
2020
£
99,800
2,500
(99,800)
2,500

Deferred income relates to grants and fees received in advance.

Page 37

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

18. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Committed programmes
General funds
General Funds
Total Unrestricted funds
Restricted funds
Capital Project - Drury Lane
Capital Project - Carnegie Library
Library lease
Creative Aging
Infrared hearing system
Studio of Santuary
Studio of Santuary - Individuals
Community Foundation
Creative Minds
Capital funding
Tudor Trust - Staff Wellness
Programme
ACE Culture Recovery Fund
Total of funds		 Balance at 1
April 2020
£
-
62,332
62,332
1,719,252
1,758,495
98,960
-
2,000
31
2,500
4,820
(25)
3,606
-
-
3,589,639
3,651,971		 Income
£
-
823,185
823,185
-
-
-
6,820
-
35,351
2,500
(4,820)
-
28,622
2,000
148,033
218,506
1,041,691		 Expenditure
£
-
(632,807)
(632,807)
(63,428)
(93,001)
(5,208)
(5,406)
-
(18,181)
-
-
-
(4,850)
-
(144,900)
(334,974)
(967,781)		 Transfers
in/out
£
80,000
(56,253)
23,747
-
-
-
-
-
-
-
-
25
(23,772)
-
-
(23,747)
-		 Balance at 31
March 2021
£
80,000
196,457
276,457
1,655,824
1,665,494
93,752
1,414
2,000
17,201
5,000
-
-
3,606
2,000
3,133
3,449,424
3,725,881

Page 38

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

18. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds
Restricted funds
Capital Project - Drury Lane
Capital Project - Carnegie Library
Library lease
Artwalk
Creative Aging
Infrared hearing system
Studio of Santuary
Studio of Santuary - Individuals
Community Foundation
Creative Minds
Capital funding
Total of funds		 Balance at
1 April 2019
£
62,406
1,782,680
1,851,319
104,168
-
4,825
2,000
(1,380)
-
4,820
-
-
3,748,432
3,810,838		 Income
£
530,349
-
-
-
37,906
747
-
37,000
2,500
-
4,250
40,893
123,296
653,645		 Expenditure
£
(567,073)
(63,428)
(92,824)
(5,208)
(37,906)
(6,143)
-
(35,589)
-
-
(4,275)
(66)
(245,439)
(812,512)		 Transfers
in/out
£
36,650
-
-
-
-
571
-
-
-
-
-
(37,221)
(36,650)
-		 Balance at
31 March
2020
£
62,332
1,719,252
1,758,495
98,960
-
-
2,000
31
2,500
4,820
(25)
3,606
3,589,639
3,651,971

Page 39

(A company limited by guarantee)

THE CREATIVE ART HOUSE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Capital Project - Drury Lane

Funded by grants from the Arts Council Lottery and others towards the cost of developing a permanent home for the charity. The fund balance represents the cost of initial planning, leasehold land, professional fees, construction and equipment in relation to The Art House Building, less depreciation charged.

Capital Project - Carnegie Library

Funded primarily by grants from the Arts Council Lottery towards the costs of developing the Carniegie Library into an extension to the Art House Building. The initial professional fees and project set up costs ahead of the construction phase have been written off to revenue. £50,000 of the charity's reserves have been put towards the project.

Library lease

This is a 25 year lease from Wakefield Metropolitan District Council for use of the Carniegie Library. The lease was signed in January 2014 and depreciation has commenced from May 2015, on completion of the building.

Artwalk

Funds provided by WMDC to cover the cost of managing and coordinating the “The Art Walk”- a visual arts festival which runs the last Wednesday evening of every other month across multiple venues across the centre of Wakefield.

Creative Aging

Funding provided by Creative Minds to run a bespoke series of art workshops for Dementia Patients and their carers.

Infrared hearing system

Funding from West Riding Masonic Charities Limited towards a new infrared hearing system.

Studio of Sanctuary

This is the fund where we raise money for the Studio Of Sanctuary Residency Programme & Community Engagement Project.

Studio of Sanctuary - individuals

Support for the professional development of individual asylum seekers/refugees who are participating in the Studio of Sanctuary programme.

Community Foundation

Funding from iWill (Leeds Community Foundation) for our forthcoming “Young Associates Programme”

Creative Minds

Grant to support Arts and Health classes.

Capital funding

Amounts received towards capital projects.

Tudor Trust - Staff Wellness Programme

Amounts received to support staff, volunteer and Trustee wellbeing.

ACE Culture Recovery Fund

Grant to support the charity during covid related restrictions.

Page 40

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Transfers

Transfers to unrestricted funds are made where the conditions on the restricted funds have been fully met.

19. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds
Summary of funds - prior year
General funds
Restricted funds		 Balance at 1
April 2020
£
-
62,332
3,589,639
3,651,971
Balance at
1 April 2019
£
62,406
3,748,432
3,810,838		 Income
£
-
823,185
218,506
1,041,691
Income
£
530,349
123,296
653,645		 Expenditure
£
-
(632,807)
(334,974)
(967,781)
Expenditure
£
(567,073)
(245,439)
(812,512)		 Transfers
in/out
£
80,000
(56,253)
(23,747)
-
Transfers
in/out
£
36,650
(36,650)
-		 Balance at 31
March 2021
£
80,000
196,457
3,449,424
3,725,881
Balance at
31 March
2020
£
62,332
3,589,639
3,651,971

20. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2021
£
94,307
1,583
339,573
(159,006)
276,457		 Restricted
funds
2021
£
3,415,069
-
39,755
(5,400)
3,449,424		 Total
funds
2021
£
3,509,376
1,583
379,328
(164,406)
3,725,881

Page 41

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

20. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2020
£
60,569
4,751
61,513
(64,501)
62,332		 Restricted
funds
2020
£
3,576,707
-
15,432
(2,500)
3,589,639		 Total
funds
2020
£
3,637,276
4,751
76,945
(67,001)
3,651,971

21. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Amortisation charges
Bank interest
(Increase)/decrease) in debtors
Increase/(decrease) in creditors
Net cash provided by/(used in) operating activities		 2021
£
73,910
176,904
3,168
(125)
(107,811)
97,406
243,452		 2020
£
(158,867)
171,002
3,168
(235)
1,205
(76,291)
(60,018)

Page 42

THE CREATIVE ART HOUSE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

22. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2021
£
227,848
227,848		 2020
£
33,275
33,275

23. Analysis of changes in net debt

Cash at bank and in hand At 1 April
2020
£
33,275
33,275		 Cash flows
£
194,573
194,573		 At 31 March
2021
£
227,848
227,848

24. Pension commitments

The pension cost charge represents contributions payable by the charity into a defined contribution scheme and amounted to £4,316 (2020 - £4,173). Contributions totalling £NIL (2020 - £355) were payable to the scheme at the balance sheet date.

25. Operating lease commitments

At 31 March 2021 the charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2021
£
1,660
1,798
3,458		 2020
£
1,660
3,458
5,118

26. Related party transactions

Trustees made donations to the charity totalling £NIL in the year (2020: £500).

Page 43