Registerèd number- 03015275 Charity number. 1072327 THE HAMPSTEAD SCHOOL OF ART (A Company Limited by Guarantee) UNAUDITED TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 111 *AB2XH8&H' 29104r2022 COMPANIES HOUSE A05 #48 THE HAMPSTEAD SCHOOL OF ART (A Company Limited by Guarantee) CONTENTS Page Reference and Administrative Details of the Company. its Trustees and Advisers Tw$tees' Report Independent Examinei's Report 9-10 Statement of Financial Activities 11 8alance Sheet 12-13 statement of Cash Flows 14 Notes to the Flnanclal Statements 15-32 THE HAMPSTEAD SCHOOL OF ART IA Company Limited by Guarantee) REFERENCE AND ADMINISTFiATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021 Trustees Angela Franklin. Chair (resigned 29 October 2020) Julia Simpson. Chair lappoinled 11 March 2021} Reginald Boorer, Vice Chair C￿thia Barlow OBE Robert Goodall. Treasurer N1￿￿tte Aubury Company registered number 03015275 Charity registered number 1072327 Registered office 2 Penrose Gardens London England NW3 7BF Patrons Sir Frank Bwling OBE. RA Alan Gouk Franasco Gazitua MRSS Dolorosa Sinaga Rachel Bowling Accountants Nym8n Libson Paul LLP Chartered Accountants 124 Finchley Road London NW3 5JS Page 1 THE HAMPSTEAD SCHOOL OF ART {A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2021 The Trustees (who are also directors of the charity for the purposes of the Companies Acll present their annual report together wrth the audrted finanaal slaternenls of The Hampstead School of Art Ilhe company) for the year ended 31 August 2021. The Trustees confirm th* the Annual Report and financial slalements of the eompany comply wth the current statutory requirements, the requirements of the compan¥s goveming document and the provisions of the Ststemenl of Recommended Practice {SORPI, applicable to charities p￿parIng Iheir accounts in a¢¢ordance wrth the Financkal Reporting Standard applicab￿ in the UK and Republic of Ireland {FRS 1021 (second edition effective 1 January 2019I- Since the C¢Jmpany qualrf*s as small undw seCt￿n 382 of the Companies Acl 2006, the Strategic Report required of medium and large companies under the Companies Acl 20C6 {Slralegic Report and Directors. Report) Regulalions 2013 has been omitted. Structure? govemance and management a. Constllutlon The company ts registerwj as a company limited by guarantee, govemed by its Memorandum and Articles of Association dated 27 January 1995. and is regislered as a charity with the Charrty Commission. The company, Hampstead School of Art IHSo41, operates as a tradrtional Fine Art and Applied Art communty education charity. b. Methods of appointment or election of Trustees The management of the company is the responsibilrty of the Trustees who are appointed by the Trustee5 al the Annual General Meeting in accordance with the Articles of Association. There must be at least Iwo Trustees and not more than Wty indivKluals 811 of whLMn must be members. . Policies adopted for the induction and training of Trustees Training on HSOA poI￿leS and proceduw for new Trustees is provKled. where necessary. by the existing Tnjslees. the Principal and the Executwe Bursar. d. Oryanisational structure and decisionwmaking policies HSOA is administered by the Board of Trustees. Sub¢(￿mIlleeS meet regulady and full board meetings are teTmly. Day lo day management and running of the Art School is d*galed to Isabel H Langtry, the Principal. The Principal makes decisions In accordan￿ wth Board policy and the Hampslead School of Art Business Plan developed annually lo meet the school strategic objectives sel out by the Board of Trustees and the Prinup81. e. Staff and Remuneration Policy HSOA conts.nues to operate vmh a relalrwety small number of dedicated and skilled core Staff, augmented by a larger ne￿Ork of freelance tutors. HSOA is committed to paying staff faidy for the work that they do, whilst recognising that the charity operates wth limrted finanual resources. The remuneration and beneffts of HSOA senKJr management tearn are decided by the Tnjstees, on the recommendation of the finance ccmnmrttee. taking account of market rates and achievements of perfomiance objectives. Page 2 THE HAMPSTEAD SCHOOL OF ART (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 f. Public benefit Hampstead Schod of Art IHSOAI encourages participation in and pro￿ldeS aC￿sS to traditional Fine Art and Applied Art education for everyone, at any age! The schcol committed to widening participation in inter- generational learning and wellness and giving people of all levels and abilities Ihe confidence to find their own artistic voice. HSOA also Pfovides spaces where artists can work and gr(Av and where Ii)cal communsti.es can access art and creativity. HSCA'S work achieves high levels of ecorKMmic, S￿la1 and cuttural impact by prwding extensive resources th8t promote the advancement of art education which includes.. Out-reach art dasses.. for comiunty members who are unable to access the art school buildings In-reach classes.. for ￿arne[S with ccrtmplex difficulties or mobility challenges Our open4oor policy. anyone with an interesl in art can access art making Supporting the homeless". HSOA offers aid to peopk affected by h¢Jnelessness Bursary programme." Financ￿1 support for Foundalion Course5 and the Frank BovAing OBE. RA Bursary are awarded annually A comprehenswe programme of support for the l¢xal community is well established and includes many activit*s for both the public and businesses. These include a range of annual activities,. free workshops at local festivals art Fairs and events. the HSOA annual Exhibition. the Hampstead Summer Festival and Art Fair 08y which includes two annual local children's art competitions publicly displayeé * the Festivals. Free leclufes and exhibitions are available to Ihe I￿1 community Open Air cultural spaces such a5 placement of publ￿ sculptures are created for community benefit. New virtual leaming prLYJrammes Objectives and activities Objectives Community, inclusNty and self*xpression drive our culture. Hampstead School of Art is commiited lo wdening partiopation in inler4Jeneralional leaming and wellness and giving peCY￿ of all levels and abilities the confidence lo find their own artistic voice. Activities undertaken to achieve obiectives HSOA offefs a comprehensive prcgramwE of day and evening classes, fvll lime courses. worf(shops and exhibitions for students. visrtors and the local community a5 well as a programme of free lectures and events. Unleashing the artist in everyone HSOA'S success 1$ based on our commitment to provide a bwde range of fine art skills laught by pracbcing artists delivering specialist teaching in order to help develcp indimdual abilities. Accessibility to all wth an interest in art and appliefl art is our goal ensuring the school- Provides a high standard of education from Famity Cksses lo Foundation courses Offers scholarships irrespective of age, background or ability Delivers first-rate and comprehensNe range of fine art and applied art such as-. drawing. painting. sculpture, printmaking, installation. dNJital art. rilm. performance and kns-based works, studKJ ceramics. mosaics, jewellery an¢J silk painting, portfolio building. pre-foundation. foundation diplcyna courses and advanced courses in fine art. Page 3 THE HAMPSTEAD SCHOOL OF ART (A Company Limhed by Gualanlee) TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 Achievements and performance a. Main achievements of the Company Growih.. Since moving into our new premises the number of students attending the school has grown significantly prior to COWD. The curriculum has eXpar￿ed to meet the 9r¢x¥ing demand for a range of subjects and classes for school chIld￿n and families. Inclusivity: HSOA'S open-door policy endeavours to pro￿de access to art and fine art learning for everyone. In- reach and outreach coutses have been al the Core of many successes in personal development by helping students reach their next slep in higher education or lrfebng leaming. This has been achieved across a diverse student population irrespedive of age. background abi14ty or experience. Academic excellence: As HScb4's Tepulation grr￿￿ our successes CO￿tinUe. We are proud that 1 o¢yA of our Foundation student5 applying to Universrty degrees achieve their goal. some remain to study HSOA'S Advanced Course. Our teaching•artists exhibit around the workl and T￿1ve accolades on a regular basis. International reputation and partnerships-. HSOA Intemational reputation and partnerships are growing as the Princip81 Isabel H Langtry leads the creative path to find new col￿bOra￿0nS and patrons. Connections in Chile, China, Italy, Spain, Singapore, Indonesia. and Saudi Arabva have been forged resulting in 2 new Patrons being appointed. collaborative progfammes created, and public sculptures exhibiled. HSOA are fortun*e to have 6 internationally renowned artisl-palrons and the contribution they make to the leaming and education programmes of the school is invauable. COVID Policy: The art schcK)I devebped a rctjust COMD Policy. b. Financial review The preferred business model of Hampstead Schrxil of Art is to achieve independent financial wabilrty by gener*ing most of ils income from tU￿On fees for tr￿lit1"On31 and ￿llemporary Fine Art and Applied Art leamimg. Foundation and Advanced Courses. Although fvndraising is con(Sucted by the school, il is not dependent on grants or other extemal funding to maintsin ils day-lo-day activrties. Robust operational and financial policies, induéing generation and maintenance of s￿nifiCant cash reserves prior to COVID helped u5 lo fulfil our goal of a¢hiewng bng-temi sustainabilrty and financial se￿rtY. HSOA Continues to invest in capital projects such as premises and IT upgrades lo meet the demands of and expanding curriculum and the grovrth in student numbers. Invests77ent in a hHJh calibre management team and specialist tutors in an ever-expanding and exciting programme of classes has supported this. The results for the year show a surplus of £63,983 {2020." £95.422 deficrtl which was attributable prudent financial management and gr¢yth in children's workshop. c. Investment policy and perfomianco The School is Cur￿ nuy building up rts reserves and all fUnd$.a￿ used cper*"onaMy. Any eX￿s¥ funds not required for imm&iate use wll be applied against the oulsianding loans. Page 4 THE HAMPSTEAD SCHOOL OF ART IA Company Limrted by Guarnntee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 Reserves policy HSOA'S reserves poI￿Y is based on continued operations of its acliwties and have Klentrfied lo maintain free reserves equivalent lo al ￿ast 6 Mc￿th$ njnning cost to enable HSOA to meets its obligation in the shorter term and to wver any unforeseen defKits or revenue shortfalls. Total funds at the balance sheet date were £743.475 (2020.. £679,492) of which £380,036 12019: £358,154) were restricted. Details of restn.cled funds are provided in note 18. Financial risk management objectives and pollcles The Trustees have assessed the major risks to wh￿h HSOA is exposed. in particular those relating to the operations and finances and a￿ satisfied th* syslems and pr￿ed￿re$ a￿ in pla￿ lo mitigate our exposure lo the major risks. Plans for the future Our goal to ¢￿ate a thriwng art school underpinned by a pemianent home has been realised. This has allowed HSOA to continue developing r(s robust financiil growth. stimulate new init￿tiVes, wntribute lo posrtive lrfe change an¢J eonlinuing learning. Social engagement: A key f(Kus of the art school wll be grLwAh of HSOA'S social engagement programme developed to inspire new and existing audiences to part￿ipate wth art wa studio arKI virtual engagement. Bursary programme expansion: Expanding our internal schoLatshiplbursaries and communty projects programmes for those wth greater scrial or educational needs that would atheThvise not be met will also be a key objective. Unleashing the Artist in Everyone: To prowde more pr(KJramme and bursaries for a grealei number of students and continue lo 'Unleash the Artist in Everyone. by creating opportunities for any person. of any age, "who comes to the school wishing to develop their crealive abilities and understanding. School Expansion: We aim to secure further premises in which to encourage k)cal artists to ￿ate work that is aC￿sSible for the local communty to engage with. create a new perfonnance space and further enrich the learning of our students. Intemational partnerships and reputation building: Our aim 15 to buikl on the success lo date by deepening new connections and building new and excth.ng OFWrtunitEs nalionalty and intemationally. 2021 Flnancial Statefflents: Cov1￿19 Disclosure HSOA response to COV1[￿19 The sehc*)l adapted swtftfy and eonducted risk assessments lo identify finanaal and oper3tH)nal risks, followed by implementation of financial. slrategic, and cperational slrategies lo limrt the impact of COVID-19. Our goal was that the business remained healthy and viable through and post pandemic. Page 5 THE HAMPSTEAD SCHOOL OF ART IA Company Limited by Guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDEO 31 AUGUST 2021 Creating a COVID Secure environment at HSOA A comprehensive COMD-Secure strategy was implementeé to ensure th* students and stsff were able lo return to the sthool safely. This included implementing the follw'ng-. Soaal-dislancing". including Iimrting the capac4ty of studKJs and cLqsses, creation of 'bubble$' wthin the school. directional 'traffic' management. Transmission-redu¢lion." prowsion of masks. visors and hand $anrt￿erS throughout the building, ventilation management. Cleaning programme.. investrnent was made in new. advanced ¢leaning machines and personnel were re-directed to support a comprehensive disinfection and deaning programme every hour, followng each class and overnight. Community outreach communications It was important, éespite the school being dosed, that HSOA conb.nued lo ¢ommunKate with its community of tutors and students lo updale and educate them as to what was being ¢Jone to enable a safe return lo art leaching * the school. Community activities Inc￿3$8￿ Trmth daily connections made wth students via phone, Particularly those vulnerable. shielding. or isolated from their families. A daity challenge called Getcreative prowded everyone wrth an opportunrty to continue to create art and 8 weekty newsletter and regular social media activ.ty kept everyone connected to the schcol. Post-lockdown Mitigatlon. Flnancial Plannlng: This unavoidable and preciprtous reduction in income was MIt￿ated urgently by three critical means. Ulilisalion of the Job Retention Scheme (fvrlough of staff) provkled by the government to reduc£ staff costs while retaining slaff in antiapation of a rapid postQovid renewal of business. The sch¢JoI has embarked a strict financial management approach to beaf down on all non-essential operating costs in order to preserve cash reserves to meet unavoidable shortfalls resuhing from reslrict¢ons mandated by govemment to counter Covid-19. These included.. Evaluation of the potential loss of income and consideration of strategies to amelK)rale losses such as fee defern￿nt. MO￿ efficient utilisatson of tutors. increased use of online tutoring Establishment of minimum Month￿ cash OLrtnow ￿qU1￿ment to idenlfy where savings could be made, 8uch as postponement of non*ssential supplier conlracls Administration of the staff HR and furk)ugh strategy lrnplementation of agile financial strategy planning.. weekty for￿asting. InC￿e and expenditure. and cashflow analyses Conduct of Week￿ finanaal remvs to evaluate the fasl-changing silualTon and provide rapid solutions through seenario planning and qU￿-reSpOnse execution The 5chcK4 has been able to meet the challenge of reduc&J income and liquidty through utilis*ion of its cash reserves to meet all necessary and outstanding operating expenses. Page 6 THE HAMPSTEAD SCHOOL OF ART IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 Business Viability and Financial Risk Managemenl Depending on the duration of the COWD-19 pandem& government measures and continued negative wnpacl on econ￿1¢ aetmty, the school may experience many challenges in the near and medium term. Challenge.. Covid-secure s(Kial4istancing prAiw affects available sludio capacty limits the number of students who can be enrolled into each class. For financial planning it has been assumed that this policy will be in place until the end of the summer tenn 2022 which linits the Income that the school can receive from all classes and workshops until then. Solution.. An online booking facility has been put in place lo facilitate bcyjkings and lo help administrative staff to ensure that classes are booked to the optimal attendance level ané that classes wrth sub-opb'mal bookings are merged with others to better match tutor costs class income. Challenge." Many student5 at HSOA are ekledy 50 lall into the 'al risk, cohort for Covid-19. It is therefore understandable that 20'A of students have not retumed for the classes for the year 2022, which will sMJnificantly reduce the school's ability to retum to pre-pandemic incC￿e levels. SolutKJn.' To achieve pre-cowd income levels the g¢MI B to increase st￿￿ent numbers by offering online classes alongside studio classes. This will not only prowde an option for students who a￿ shielding lo attend courses online bul will also provKle proteth'on to HSOA shoukl fvller lockdown measures be introduced in the future. Additionally, this facility wll prov￿le a new potential revenue stream in the bnger lem. ChaI￿nge.. HSOA has10st income in several areas of the schcd's establIst￿ operat￿nS. Solution.. The HSOA management team has f￿￿Sed on gro•rth areas of the business, such as children's classes and workshcs)s, which have been n￿re resilient. Future Prospects for HSOA Though certainty unwelcome, the 'slress lest. prowded by the challenge of the Covid-19 pandemic has illustrated that HSOA has been managed SUC￿ssfUllY to be a resilient and resourceful organisatKJn. We believe Ihat these qualrties will enable HS(x4 to thrive in the fthure once the pandemK has been negoti*ed. To dale we are in line wi(h our forecast of 2022. despite the class sizes being limited by social distancing. Page 7 THE HAMPSTEAD SCHOOL OF ART {A C(Knpany Limited by Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 Statement of Trustees, responsibilities The Trustees (who are also the directors of Ihe Ccmmpany for the purposes of company lawl are responsible for preparing the Trustees, Report and the finan￿al statements in 8c¢ordance with applicable law and United Kingdom Accounting Slandards (United Kingdom Generalty Accepted Accounting Practice). Company law requires the Trustees to prepare financial statwnents for each financial year. Under company law the Trustees must not approve the financial statements unkss Ihey are satisfEd that they give a true and fair view of the state of affairs of the Company and of its Inc￿1n9 resources and appli¢atK)n of resources, induding ils income and expenditure. for that period. In preparing these ffinancial statements, the Trustees are required to.. select suitable accounting policies and then appty them consistently. obseNe the methods and principles of the Charities SORP IFRS 102)-, make judgments and accounting estimates that are reasonable and prudent. state whether applicable UK Accounting Standards {FRS 1021 have been followed. suty'ect to any material departures disclosed and explained in the financial statements., prepare the financial slalernenls on the going eoncem basis unless rt is inappropriate lo presume that the Company will continue in business. The Trustees are responsible for keeping adequ*e accounting records that are sufficienl to show and explain the Companys transactions and disdose wlh reasonable accuracy al any lime the finanoal'position of the Company and enable them lo ensure that the financ4al slalemenls comply wrth the Companies Act 2006. They are also responsible for safeguarding the as5els of the Company and hence for taking reasonable steps for the p￿ventIon and detection of fraud and other irregularities_ Approved by order of the members ofthe board of Trustees on 12 Qpa 2otzand signed on their behalf by. Isabel H Langtry Secretary lo the Board of Trust Page 8 THE HAMPSTEAD SCHOOL OF ART (A Company Limited by Guarantee) INOEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2021 Independent Examinees Report to the Trustees of The Hampstead School of Art Cthe Cornpany.) I report to the chanty Twslees on my examination of the account5 of the Company for the year ended 31 August 2021. This report is made solety to the ¢hantys Trustees, as a bch*. in accordan￿ with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state lo the charitys Trustees those matters l am required to state to them in an Independent Examinerfs Report and for no other" purpose. To the fullest extent pemirtied by I￿, I do not aecept or assume responsibility to anyone other than the chartty and the tharitls Tfuslees as a bthyy, for my work or for thts report. Responsibilities and Basis of Report As the Trustees of the Company land ils directors for the purposes of company18wl you are responsible for the preparation of the accounts in at￿rdan￿ with the rtrjuir￿nents of the Crmnpanies Act 2006 Ilhe 2006 A¢l'). Hawng satisfied myself that the accounts of the Ccffipany are not required lo be audited under Part 16 of the 200S Act and are eligible for independent exarninab"on, I report in respect of my examination of the Companls accounts earned out under section 145 of the Charrties Act 2011 fthe 2011 Act'l. In carrwng out my examination I have followed the Directions given by the Chanty Ct)mmission under section 145{5){bl of the 2011 Act. Page 9 THE HAMPSTEAD SCHOOL OF ART (A Company Limited by Guarantee) INDEPENDENT EXAMINER'S REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 Independent Examlnerfs Statement I have ccffipleted my examination. l eonfimi that no matters have come to my attention in connection wlh the examinalion giving me cause to believe: iunting records were not kept in respect of the Company as required by section 386 of Ihe 2006 Act." or the aeeounts do not accord with those records" or the accounts do not compty wth the aecounling requirements of section 3* of the 2006 Act other than any requirement that the accounts gNe a Irue and fairf vith¥ which is not a matter considered as part of an inéependent examination. or Ihe accounts have not been prepared in acc(wdano vthh the methods and principles of the St*ement of Recommended Practice for accounting and reporting by charities lapplicable lo charities preparing their accounts in accordance wrth the Financrdl Reporting Standard applicab￿ in the UK and Republic of Ireland IFRS 102)]. I have no concems and have ￿rne across no other malters in connection w(th the examination to which attention should be drawn in this report in order to enab￿ a proper understanding of the accounts lo be reached. Signed.. _(k_Q D*ed'. Iz Ap Jennifer Pope ACA Nyman kn'bson Paul Chartered Accountants Regina House 124 Finchley Road London NW3 5JS Page 10 THE HAMPSTEAD SCHOOL OF ART (A Company Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 AUGUST 2021 Restricted funds 2021 Unrestricted fund5 2021 Total funds 2021 Total funds 2020 Note Income from: Donations and legaoes Chaiilable activi(ies Other trading actiwlEs Inveslrnenls 29.176 150.783 731.328 51,206 10 179,959 731,328 51,206 10 133,456 633,624 85.331 324 Total ineome Expenditure on.. Raising funds Chantsble ath"vities 29.176 933.327 962.503 852,735 20.601 870.625 20,601 877.919 81,481 866,676 7,294 Total expenditure 7,294 891,226 898.520 948.157 21.882 42.101 63.983 Net movement in funds Reconciliation ol funds: Total funds brought forward Net movement in funds 195,4221 358,154 21.882 321.338 42.101 679.492 63,983 774,914 195,4221 Total funds carried foNiard 380,036 363,439 743,475 679,492 The noles on pages 15 10 32 forni part of these financial statements. Page11 THE HAMPSTEAD SCHOOL OF ART {A Company Limited by Guarantee) REGISTERED NUMBER: 03015275 BALANCE SHEET AS AT 31 AUGUST 2021 2021 2020 Note Fixed assets Tangible assets 13 1.546.625 1,565,950 1.546.625 1.565,950 Current assets Debtors Cash * bank and in hand 14 25.555 268.525 21,407 196,051 294.080 217,458 Creditors.. amounts falling due wrthin one year 15 1395.6881 (373.293) Net current liabilities 1101.608) (155,835) Total assets less current liabilities 1.445.017 1.410,115 Creditors. amounts falling due after more than one year 16 (701.542) (730,623) Total net assets 743.475 679,492 Charity funds Restricted funds Unrestri¢ted funds 18 18 380.036 363.439 358,154 321,338 Total funds 743.475 679,492 Page 12 THE HAMPSTEAD SCHOOL OF ART (A Company Limited by Guarantee) REGISTERED NUMBER: 03015275 BALANCE SHEET ICONTINUEDI AS AT 31 AUGUST 2021 The Company was entrtled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the ttfflpany to obtsin an for the year in question in accordance wrth section 476 of Ccmpanies Act 2006. The Trustees a(*novAed9e their reskK)nsibilities for Compl￿ng with the requirements of the Act wf(h respecl lo accounting records and preparats'on of financial statements. The finanual ststemenls have been prepared in accordan￿ with the provis￿)n$ applicable lo entities subjed to the small companies regime. The financial statements were approved and aLrthorised for issue by the Trustees on 11 4pa 2021 and signed on their behaw by.. Julia Simpso {Cha The notes on page$ 15 10 32 f of these financial ststemenls. P￿e13 THE HAMPSTEAO SCHOOL OF ART IA Company Limited by Guarnnleel STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021 2021 2020 Note Cash flovrs from operating activities Net eash used in operating activities 20 143,057 (25.503) Cash flows from investing activities Interest received Purchase of tangible fixed assets 10 324 {45,6041 (30,6971 Net cash used in investing activities {45,594) 130.3731 Cash flows from financlng activities Cash inflows fr(m new borrowing Repayments of bank loan Repayments of other loan 50.000 {24.989) {50.000) 113.9301 1150,OCI)I Net cash used in financing activities {24.989) 1163,9301 Change in Cash and cash equivalents in the yeaT Cash and cash equivaienls al the beginning of the year 72,474 1219.8C61 415,857 196,051 Cash and cash equivalents at the end of the year 21 288.525 196,051 The notes on pages 15 10 32 fom part of these financ￿1 ststements Page 14 THE HAMPSTEAD SCHOOL OF ART (A Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 GENERAL INFORMATION The company is a company limrted by guarantee and incorporated in England. The address of it5 registered office and princip￿ pLgce of business is 2 Penrose Gardens. Khlderpore Green, London. NW3 7BF. In the event of the company being wound up. the liabilty in respect of the guarantee is limf(ed to £1 per member of the company. ACCOUNTING POUCIES 2.1 Basis of preparalion of financial statements The financial statements have been prepared in accordance wrth the Charities SORP IFRS 1021 Accounting and Reporting by Charilies.. stat￿nen1 of Recommended Practice applicable to charities preparing their accounts in ac￿rdanCe with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 Ise¢ond edition effectNe 1 January 20191, the Financial Reporting Standard applicable in the UK and Republbc of Ireland {FRS 102) and the Companies Act The Hampstead Schwl of Art meets the definrtion of a publ￿ benefrt enth.ty under FRS 102. Assets and liabilrties are inrtk9l￿ recognisa 81 historical cost or tr8nsadion value unless otherwise stated in the relevant accounting policy. 2.2 Going concern The S¢h¢)ol meels f¢s day to day VK)rking capital requirements through the ulilisation of its own funds together with a loan advanced by (￿e of the trustees antl a bank loan relating to the acquisition of the f￿ehold. The School incuffed a surplus in the year of £63,983 and as at the balance sheet date was showng a bank balance of £268.525 and nel current liabilrt*s ot £101,608. The trustees have prepared updated forecasts and projeetions based on a number of potential scenarios and these. Ic*3ethei wth reserves held. cost savings made and government assistan￿ by way of the job retention scheme. indicate that the School has adequate resouThs to continue ils cperations, albeit at a (thntially lower level. It is. however. difficult lo detemine the assvmplions that v4ill prove lo be most appropriate and therefore there ts an element of uncertainly existing. After reviewing the fOr￿aSts and projectio￿. al the time of approving these financial statements the trustees have a reasonable expeclation thal the ¢harty has adequate resources lo continue in operational existence for the next 12 months. The trustees therefore consider it appropriate to continue to adopt the going CLxcem basis in preparing the charitls financial ststemenls. 2.3 Fund aceourrting General funds are unrestricted funds which are 8V8ilable for use at the discretion of the TNslees in furtherance of the general objectives of the Company and which have not been designated for other purposes. Restricted funds are funds wh￿h are to be US￿ in accordance with specrfic restrictions imposed by donors or which have been raised by the CLvnpany for part￿ular purposes. The costs of raising and administering such funds are charged against the Spear￿ fund. The aim and use of each reslricled fund is sel out ￿ the notes lo ihe financial slalements. Investment income, gains and105se5 are allocated lo the appropriate fund. Page 15 THE HAMPSTEAD SCHOOL OF ART IA Company Limiled by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 ACCOUNTING POLICIES {CONTINUED 2.4 Income All income is recognised once the C(Mmpany has entillement lo the inc4)me, il is probable that the income will be received and the amount of income re￿1vable can be measured reliably. Sludenl fees represent tuition and other f*s due and are acC￿ntell for on an accruals basis. Deferred inccmne represents students fees received in reL8tion to tuition provided in the following year. Bank interest and all other income is ￿￿nted for on an accruals basis. Income tax recoverable in relatK)n to d￿ath?￿S receiv￿ under Grft Aid or deeds of eoven8nt is recognised at the time of the donation. Income lax recoverable in relation to inVeS￿nt income is recognised * the time the investment income is receNable. 2.5 Expenditure Expenditure is rwnised once the￿ is a legal or constructive oblBJation to transfer economic benefit lo a third party. il is probab￿ Ihat a Iransfer of economic benefrts will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is Classified by a¢tiwty. The costs of each aclimty are made up of Ihe total of direct costs and shared costs, including support costs involved in undertaking eath activrty. Direct Costs attribu18ble lo a single actiwty are allocated direcuy to that actiMty. Shared costs which contribute to more than one activity and support costs wh￿h a￿ nol attributable to a single activty are apportioned belween those activit￿S on a basis consistent Nwth the use of resources. Central staff costs are allocated on the basis of lirne spent, and depreeialion char9es alkxated on the portion of the asset's use. Expendi(ure on raising funds indudes all expenditure incurred by the Company to raise funds for its charitable puws and includes costs of all fundraising aCt$￿tIeS events and non