COMPANY REGISTRATION NUMBER.. 03015275 CHARifY REGISTRATION NUMBER.. 1072327 The Hampstead School of Art Company Limited by Guarantee Financial Statements 31 August 2023 11111 'ADAJMTEA' 2M024 COIAPW41ES pfousE A12 #75 BRIAN PAUL LIMITED Chartered Accountants & Statutory Auditors Chase Green House 42 Chase Side Enfield Middlesex EN2 6NF The Hampstead School ofArt Company Limited by Guarantee Financial Statements Year ended 31 August 2023 Page Trustees. annual report (incorporating the directorfs report) Independent auditorfs report to the members Statement of financial activities (including incorne and expenditure account} 14 Statement of financial position 15 Statement of cash flows 16 Notes to the financial statements 17 The Hampstead School ofArt Company Llmited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) Year ended 31 August 2023 The trustees, who are also the directors for the purrxjses of company law, present their report and the f￿ancIal statements of the charity for the year ended 31 August 2023. Reference and administrative details Registered charity name The Hampslead School of Art Charity iegistration nurnber 1072327 Company registration number 03015275 Principal office and registe￿1 2 Penrose Gardens offlce London NW8 7BF England The trustees Julk3 Simpson (Chairperson) Reginakl BOo￿[ Ivice Chair) Cynthia Badow OBE Robert Goodall ITTeasurer) N￿olette Aubury Wendy MacKinnon Patrons Sir Frank 8￿Ing OBE, RA Alan Gouk Francis￿ Gazitua MRSS Dolores Sinaga Rachel Bowling Angela Leible Auditor Brian Paul Limrted Chartered Accountants & Statutory Audrto Chase Green House 42 Chase Side Enfield MKldlesex EN2 6NF The Hampstead School ofArt Company Limited by Guarantee Trustees, Annual Report (Incorporating the Directorfs Report) (¢onllnu¢dJ Year ended 31 August 2023 The Tr￿Stee$ present their annual repcKI logether with the audite(l financial slalements of Hampstead School of Art for the year 1 September 2022 to 31 August 2023. The Annual Report serves the purposes of both a Trustees. retM)rt and a directors. report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current Statutory requirements. Ihe requirements of the charitable ¢ompany's governing document and the provisions of the Statement of Recommended Practice ISORP) applicable to charitses preparing their accounts in accordan￿ with the Financial Reporting Stsndaid applicable in the UK and Republ￿ of Ireland IFRS1021 (effective 1 January 2019). Since the Company qualrfies as small under section 382 of the Companies Act 20C6, the Strategic Report required of medium and Large companies undei the Companies Act 20C6 (Strategic Report and Directors, Report) Regulatsons 2013 has been omrtied. Objectives and activities The lasting objeclive of the Charty is to offer publ￿ benefrt through the provision of specialist learning in fine art and the applied arts. a. Objectives cOn￿Unity. inclusivty and Self*Xp￿5￿1n diive our culiure. Hampstead School of Art IS eornrnrtted to widening participation in inter-generatsonal learning additionally provhling wellness and giving people of all ￿ve15 and abilrties the Confidence to find their own artist￿ voice. In setting objectives and planning foi aclivities. the Trustees have due consideration lo general gui¢Jance published by the Charity Commission relating lo public benefrt. including the guKlance 'Publt¢ benefrt.. running a charty IPB21'. b. Public benefit Hampstead School of Art IHSOA) er￿oUrageS part￿1patx)n in and provides access to tradrf(ional Fine Art and Applied Art leaming for everyone, at any agel The art school is commrtted to widening partieipalion in Inlergeneralv)nal learning and wellness and giving people of all levels and abilities the confidence to find their own artisti¢ voice. HSOA also provides a range of spaces Whe￿ artists ean work and grow and where lrtal communrt￿s can &cess art and crealNrty. HSOA'S work achieves htqh levels of economic, social and cujtural impact by providing extensive iesources that promote the advancement of art education which includes.. . Out-reach art classe5." for communty members who are Unab￿ to 3cce5S the art school buildings b. In-reach classe5". for learneis wrth complex drfr￿Urtle5 and or mobilty challenge ¢. Our open-door policy". anyone with an inleiest in art can access art making d. Supporting the homeless". HSOA offers aid via leaming bursaries lo people affected by homele5sne5S e. Bursary programme.. Financial support for Foundation Courses and the Sir Frank Bowling and Lady Rachel Scott Bowling Bursaries and, the Mara Trust Printrnaking Bursary which are awarded annual f. A comp￿ henswe programme of support for the loeal community is well established and includes many activities lor the publ￿, businesses and other small Charrties. These Include a range ol annual adivities such as openly available workshops al l(Kal festivals, art Fairs and communty events, HSOA Exhibitions, the Hampstead Summer FestNal and Art Fair Day which including kxal chil¢Jren's art compelilions often exhibited at the leslivals and The Art Street Mural Festival. g. Free lectu￿$ and exhibrtions a￿ available to the local commun((y and visitors. h. Cultural space5 such a5 the HSOA Arttst in Resthnce Pr¢yJramme. The Hampstead School of Art Company Llmited by Guarants• Trusts•s' Annual R•port (Incorporatlng the Dlrectorfs Report) Year ended 31 August 2023 ACtfvI￿e$ undertaken to achleve obJectlves HSOA offers a comprehensive programTh of temity day and evening dasses, full time courses, workshops and exhibltions for students. visi1￿ and the local Cornm￿ty as well as a wogramme of free lectures and events. Unleashlng the artlst In everyone HSOA'S success is based on our commitment kn wovide a wide range of fine art skills taught by practicing artists delivering specialist texhing in order lo help de¥8￿P indNidual abilitios. A¢¢essibilty to all with an interest in art and appl￿ arL Our goal is to ensure that Ihe art s¢hool.. . Provides a high standard of art lewning from Family Classes to full time we Universty and post University courses . Offers bursaries irrespedive of age, background or alxhty Delivers fysl-rate and a comprehensive range of fine art and applied art skills Suth as.. drawir¥J, painting, sculpture, printmakirvj, installation, d￿rtaI art, film, performance and [en￿baSed work$, studio ceramic5, mosaics. jeweltery. brush and silk paintiw. portfol￿ buildiThJ, P￿founda1￿n. foundation diplomo ¢wrses art exam support and advarKed ¢¢urses in arL Athl•v•m•nts and p•rfomianc• a. Maln achl•vem•nts of th• cOm￿nY Growth: Since mo￿ng into the new pren¥ses, the number of $ludents attending the school have grown significantly. The leaming offer has expanded to Meet the growng demand for a range of subjects and w0￿shopS for $ehool children and families with pre•SC1K￿l Children. There are approximalely 2.$00 learning places subscribed to yearty offered by the Art School Inclusivity: HSOA'S open-door polcy endeavours to provide access to fine art 8nd applied art leaming for everyone. Inthreach and outreach c¢)UTses have been al Ihe core of many su¢ces8es in personal development by helping students reach their next step in higher education or lifetong teaming. This has been achieved acr￿$ a diverse student population irrespectNe of age. background, abilty or experience. A¢ademic excellence.. As HSOA'S reputation grows our 5uccesse5 continue. We are prcojd that 100% of our Foundation students applying to univetsity degrees achieve their goal. some remain to Study HSoA's Advanced Course. Our teathing-artists exhibit around the worfd and recebve accolades on a regular basis. Intèmational repulation and partn¢rships: HSOA Intemational reputation and partnwships: HSOAS Internat￿)nal reputation and partnerships are growing as the Prinupal Isabel H Langtry leads the path in collaboraling with inlemational projects. appointing patrons aTrJ realising the making of intemationalty requested public sculptures. collaborate5 with scientists and artists in environmental and creatwe projects and publishing these T•sutt$. cC￿neCtIonS in Clule. China, Italy, Spain, Singapore. Bermuda. Indonesra. l$tria. Saudi Arabia. Shariah. Sweden. Holland. Austria and Australia. have been forged resulling in 6 hKJhly aedaimed Patrons. Aan Gouk. Sir Frank Bowliro. Fran¢is¢o Gazitua MRSS. Dolorosa Sinaga, Lady Rachel Scott Bowling and Angela Lelible whose contribul￿n$ to our art school leaming is invaluable. The Principal lecturès. judges and awards intemationalty. oflen invited to ialk about the art schools aims and obiedbves. The Hampslead School of Art Company Llmlted by Guarant•• Trustees. Annual Report {Incorporatlng the Directorfs Report) Year ended 31 Augusl 2023 HSOA publishwvJ was estsblishod in 2012. this is a very aclpie department of the arl school wh￿h publishing approx. 3 main catalogues eath year, introduclions and essays WTitten and edited by the principal who often provHles the photography and cdkborates with highly regardod ¢8ntres such as The Resilience Research Centre of StoCk￿lM University's Anlhropocene Laboratory. Royal Swedish Academy of Sciences and The Wageningen Universty & Research Centre. Netherfands. The collaboration with arbsls and galkries 1$ fundan*ntal to the work and thè catslogues have been requested by Hauser and Wirth Gallery. Make Gallery and Ihè Tate Gallery io reprnsent thetr own exhibit￿￿￿. b. Flnan¢l•l r•vl•w The preferred business model of Hampslead SchTh)l ofArt is lo achieve independent financial stablty by generating most of ils income from tuition fees lor traditional and ￿nteMporary Fine Art and plied Art leaming, Foundation and Advanced Courses. Although fundraising is conducted by the school. it is not dependent on grants or other exlemal fundirKJ to maintain its daY-￿daY a¢tivitifrs. Robust operational a￿1 financial policies. inC￿ding generation and maintenance of s*Jnificant cash reseNe$ prior to COVID helped us to lulfil QUT goal of achieving long-term suslainabilty and fmarKial security. HSOA continues to invest in camal projects such as prenwses and IT upgrades to meet the demands of the expanding curriculum and the growth in student numbers. Investment in a high calibre management team and specialisl tutots in an eVer&expar￿Ing and excitsng pr¢)gramme of classes supports this obie¢trrfe. The results for the year show a surplus of £308,450 {2022: £82.1811 after deprecrat￿n tharge of £52.219. This surplus was mainly attributable to a one-off donation receNed in the year of £250.C4)0 together With prudent financtal management. The b￿ance sheet shows rtet current assets or worki capital of £256.604 (2022- net cwrent liabilities £43.007). The net b(K>k value of tangibte fixed assets held amounled lo £1,441.917 (2022- £1,487,321) c. Invèstm•nt pollcy and perf0m￿ne+ The Art Scl)ool is currenty building up tts reserves and all funds are used operationalty. Our inveslmenl policy is to en$uTe fvnds that the Art School does nol immedialety need to cover antieipaled expendrture. these are invegled to maximise the Art Schools income bul wrth minimal risk. The aim is to research where fvnts may be deposited applwNJ pruderry in oftsur*w there is minimum risk. d. Res•tv•s poll¢y HSOA'S reserves pcAicy 1$ based on continued operatiorts of its activities and havo Mlentified to maintain free r8seNes equivalent lo at ￿a$1 6 ￿nthS running cost to enable HSOA to meels ils obligation In the shorter term and to tover any unforeseen defi¢its or revenue shorttalls. Total funds at the balance sheet date were £1,134,106 (2022: £825,656) of whith £370,462 {2022: £374.$65) were restricted. Details of resIT￿ted fvrKls are Provided in note 20. Flnanclal rfsk management obJectlv•s and polkles The Trustees have assessed the major nsks to which HSOA is exF￿$•d. in particular those relating to the operations and finances and are SatiSf￿d that systems and pr￿edureS are in pla¢9 to milwJale our exposure lo the major risks. The Hampstead School of Art Company Limlted by Guarante• Trustees. Annual Report (Incorporating the Directorfs Report) (¢Qftllftu¢dJ Year ended 31 Augusi 2023 Golng ¢on¢ern After making appropriate enquiries. the Trustees have a reasonab￿ eXpectat￿n thal the Company has adequate resources to continue in operational existencè for the foreseeable future. For this reason. they wnlinue to adopt the going concern basis in preparing the financial statements. Further dgtails regarding the adoption of the going concem basis can be found in the a￿untIng policies. Plans for the future Our goal lo create a IhrivirwJ art sch￿4 underpinned by a pemanenl home has been realised. This has allowed HSOA to Continue devewing its robust rinancial growth. stimulate new inilwtN8S. contribute to positive life change and continuing leaming. Social engagement: A key focus of the art sehcAII wll be 9rowlh of HSOA'S SOCFal erKJa9emont programme developed to inspire new aThJ existing audiences to part￿1p81e with art via studio. wrtual and extemal 8ngagement. Bursary programme expanslon.. Expanding our internal seholarshiplbursaries and eommunty projects programmes for those with greater social or edueational needs that would otheTwise not be met is also a key objective. Unleashing the Artist in Everyone.. To provide addit￿nal programme and bursar￿$ a greater numbèr of students and continue to 'Unlpash the Artist in Everyone. by creating opportunities for any person. of any age. who comes to the school wshing to develop their creative abilities and understanding. School Expansion.. We aim to continue securing lurther prernises in which to encourage artistsnearners to create work that is a￿eSsIble for the k￿1 community. create new performalNe spaces and further enrich the learning of our students. International partnerships and reputation building.. Our aim is to build on the success lo dale by deepening new connections and building new and excrfing opp¢)rtunilies nationally and internationally. Outrea¢h: W8 aim to rebuild pre COVID partnerships wlM¢h have been availabl8 for Iclcal community groups to undertake art classes. Financial Securty.. In view of the current economic climate re costryof4iving crisis. HSOA will look at generating more funds lo siyport students and to protecl Ihe financial security of the school. Structure, governance and management . Constilution The company is registered as a company limited by guarantee. govemed by ils Memorandum and Artieles of Association dated 27 January 1995. and is registered as a charty wrth the Charity Commission. The company, Hampstead School of (HSOAI. operates as a traditional Fine Art and Applied Art communty art educabon charity. b. M•thods of appolntment or electlon ol Trustees The Hampstead School ofArt Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (r•ntrnu¢ Year ended 31 August 2023 The management ofthe Company is the responsibility of the Trustees who are apwinled by the Trustees at the Annual General Meeting in accordance wilh Artides of Asso¢k4tion. There must be at least two Trustees and not more than twelve indrviduals aw of whom must be m8mb8rs. The trustees have no beneficial interest in the school other than as members. The Trustees are also the directors of the school and as members are guaranteed lo contribute £1 each ￿ the event of winding up. . Ory•nisational structur• and deci5ionwmaking polici•$ HSOA is administered by the Board of TTUStees. Subcommittees meet regularfy and fvll board meetings are temily. Day to day management and running of the Art School is deFegaled to Isabel H Langtry. the Principal, appointed in 2011. The Principal makes deciS￿n$ in accordance wtth Board policy and Hampstead School of Art Business Plan deVe￿ped to meet the school stralegic objectives sel out by the Board of Trustees together with the Principal. d. Pollcles adopted for the Inducllon and tralnlng of Trusleos Trainlng on HSOA policies and procedures tor new Trustees is provided. where necessary. by the exists'ng Trustees, the Principal and the Executive Bursar. e. Staff and r•muneratlon pollcy HSOA conlinues to operat¢ with a ￿latiVelY small number of dedicated and skilled core staff. augmented by a larger netwth of freelance tutors. HSOA is committed lo paying staff fairfy for the work that they do. whilst reC￿3n151ng that Ihe chanty operates with limited financial resources. The remuneration and benefits of HSOA senior management team are decided by the Trustees, on the recommendation ol the finance committefj. laking account of market rates and athievemenls of perfomiance objectives. f. Related Party NorE of the TnJstee5 re￿1ve any remunefatvjn or benefits for work on behalf of the school. Any ciyttractual arrangements wth Trustees need to be disdosed in the notes to the financial statements. The Hampstead School of Art Company Limited by Guarantee Trustees, Annual Report (Incorporating the Directorfs Report) (¢ontsnu¢d) Year ended 31 August 2023 Trustees. respon5ibiltties statsrnent The trustees. who are 81s0 directors for the purposes of company law. 8ie responsible for preparing the Iru51ees' report and the financial staternents in accordance wrth applicable law and Unrted Kingdom Accounb"ng Standards IUnf(ed KIngd￿n Generalty Accepted Accounting Practicel. Company law requires the charity truslees to prepare financial slalements for each year which give a true and fair view of the stste of affairs of the charitable company and the incoming resources and application of resources, induding the income and expendiiure. for thal period. In prepanng these financial statements, the tru$lees are required to-. select suitable accounting p￿￿leS 8rKI then appty them ¢￿SIStentIy." observe the methods arKI principles in the appluble Chantie5 SORP.. make judgments and accounting estimates that are reasonable and prudent., stsle whether applicab￿ UK Accounting Standards have been folkwed. subject to any material departures disclosed and explained in the financial stalemenls", prepare the financial staternents on the going basis unless rt is inappropriate lo presume that the Charity will continue in business. The trustees are responsible for keeping adequate accounting records that are SLrfficient to show and explain the charitls transactions and disclose wrth reas¢inable accuracy at any time the financial position of the charty and enable them lo ensure Ihal the finan¢K41 statements compty with the CompanEs Act 20(A. They are also responsibk for safeguarding the assets of the charty and hence for taking reasonable steps for the preventKJn and deteCt￿)n of fraud arK4 other irregularities. Auditor Each of the persons who is a trustee at the date of approval of this ￿pOrt confims that.. so far as they are aware. there is no ielevant audrt infoffnation of which the charity's audilof is unaware., and Ihey have tsken all steps that they ought lo have tsken as a twslee lo make Ihemsefves aware of any relevant audit informatK)n and lo estsblish th* the chariWs auditor is aware of that information. The trustees. annual report and the Strateg￿ reFM)rt were approved on on behaff of the board of trustees by_. and signed The auditors. Brian Paul Limited. have induted t wllingness lo eonlinue in office. The designated Tfuslees wll propose a motion ￿apPOInting the audi(ors al a meeting of the Trustees. Julia Simpson Trustee The Hampstead School of Art Company Limited by Guarantee Independent Auditor's Report to the Members ofThe Hampstead School of Art Year ended 31 August 2023 Opinion We have audited the financial statements of The Hampstead School of Art (the '¢harity'l for the year ended 31 AugLtsl 2023 wh￿h comprise the statement of financial activities (including income and expenditure account}, statement of financial position. statemeni of cash flows and the related notes. including a svmmary of signrfi¢ant accounting poli￿e$ The financial reporting framework that has been applied in their preparation is applicab￿ law and Unrted Kingdom Accounling Standards. including FRS 102 The Financial Reporling Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted A￿O￿nting Pract￿). In our opinion the financial statements- give a true and fair view of the slate of the charty's affairs as at 31 August 2023 and of ifs incoming resources and appItst￿n of resour¢es. including its income and expenditure, for Ihe year then ended., have been property prepa￿d in accordance with United Kingdom Generalty A¢cepled Accounting Praclice.. have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance vnth Intemational Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilrties undei those standards are further described in the auditorfs responsibilities for the audit of the ftnancial statements section of our report. We are Independent of the charity in accordance with the eth￿al ￿quirementS that are relevant to our auért of the financial slalemenls in the UK, Including the FRC'S Eth￿1 Standard, and we have fulfilled our other ethical re5ponsibililies in accordance with these ¥equiremenls. We believe that the audit evpJence we have obtained is sufficiént and appropriate to p¥ovide a basis for our opinion. Con¢lu$ions relating to going concern In audrting the financpl st*ements, we have concluded that the trustees. use of the going CO￿ern basis of accounting in the preparation of the financial 51atemertts is appropriate. Based on the work we have perfom*d, we have not identi￿d any material uncertainb'es relating to events or conditions that. Èndividu81ty or collectivety, may cast signffjcanl doubl on the charity's ability to continue as a going concem for a period ol at least twelve months from when the financial slalemgnts are aulhorise¢J for issue. Our responsibilities and the responsOilities of the trusteès wilh respect to going concem ale described in Ihe relevant sectKJns of this rep)rt. The Hampstead School of Art Company Limited by Guarantee Independent Auditorfs Report to the Members of The Hampstead School of Art Year ended 31 August 2023 Other inforniation The other infomiation comprises the rnfomialion included in the annual report, olhec than the financial ststemenls and our auditorfs report Ihereon. The Irustees are responsible for Ihe other infomation. Our opinion on the financial statements does not cover the olhei infom)alion and, except lo the extent olheJwise explicrtty slated in our reF*)rt. we do not expres5 any fom of assurance conclusion Ihereon. In connection with our audit of the financial statements. our responsibility is to read the other infofmation and, in doing so. consi¢Jer whether the other inform*ion is materialty inconsistent with the financial statements or our knowkdge obtained in the audit or otherwise appears to be materially misstated. If we identfy such material inconsistencies or apparent materkgl misstatements, we are required to detemiine whether there is a material misstaiemenl in the financkAI stslemenls or material misstatement of the olher information_ If. based on the work we have performed. we conclude that there is a materKAI misstatement of this other information, we are required to report that fact. We have nothing to report In thbs regard. Opinions on other matters prescribed by the Companies Act 2006 In our ¢pinion. based on the VKJrk undertaken in the course of the audit.. the infomialton given in the tru5tees' report for the financial year for which the financial staten*nts are piepared consistent wf(h the financial statements.. and the trustees, report has been prepared tn accordance wrth applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtainet1 in the ourse of the audit. we have not idenlifie(I m*erial misststen*nts in the trustees, report. We have nothing lo cep¢rt in respect of the folk)w"ng matters in reLAtion to whKh the Companies Act 2006 requires us to report to you rf. in our opinion". adequate accounting records have not been kept. or retuins adequate for our audit have not been received from branches not Msrted by us.. or the financol stslemenls are not in agree￿￿nI with the accounting records and relums.. or certain disclosures of trustees, ￿muneratIOn specthed by law are not made., or we have not received all Ihe information and explanations we require fN Ouf audil. The Hampstead School ofArt Company Limited by Guarantee Independent Auditor's Report to the Members of The Hampstead SGhool of Art (Continued) Year ended 31 August 2023 Responsibilities of trustees As explained more fulty in the trustees. iesponsibililies st*emenl, the trustees (who are also the directors for the purposes of company lawl are responsible for the preparation of the financial slalemenls and for being satisfied that they give a true and fair view. and for such Internal control as the trustees determine is necessary lo enable the preparation of financial 51aternents that are free from matenal misslatemenl. whether due to fraud or error. In preparing the financial statements. the trustees are reSFonsIb￿ for assessing the charity's ability to continue as a going concern, disclosing. as appluble, matters related lo going concern and using the going concem basis of accounting unless the truslees either intend to I￿V￿ate the tharrty or to cease operations, or have no realistic altemative but to do so. 10 The Hampstead School ofArt Company Limited by Guarantee Independent Auditor's Report to the Members of The Hampstead School of Art (contintse Year ended 31 August 2023 Auditor's responsibilities for the audit of the finan¢ial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslalement, whether due to fraud or eiror, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guaranlee Ihat an audit conducted in accordance wrth ISAS (UK} will a￿vaYS detect a material misslalemenl when il exists. Misstatements can arise from fraud or e¥ror and are considered material rf, individually or in Ihe aggregate. they could reasonabty be expected lo influence the economic decisions of users tsken on the basis of these financial slalements. Irregularities, including fraud, are instances of nonns. al the time ol approwrrfj Ihese finan¢ial slalements the tNstees have a reasonable exF*clation that the charity has adequate resources to continue in 0￿ratIOnal existence fty the next 12 months. The truslees therefore consider it appropriate to conlinue to adopt the wng c￿ceM basis in weparing Ihe charivs financial stateThnts. Tanglbh assets Tangible assets are initsalty recorded at cos( subsequentty stated at (a￿t ￿$5 any aceumulated depreckq11c￿ and impaim*nt IC￿Ses. Any langible assets carried at Tevalued amounts are recorded at the fair valuè at the dat• ol revaluats'on bo$$ any subsequent a¢¢umulated deprecialron and subsequent ae¢umulatsd impaimient1058es. An increase in tro carying amounl of an asset as a resurt of a rnvaluation. is recognised in other recognised gains and losses, unless it reverses a charge for Impalm￿nI that has previously been recognFsed as expenditure within the slalement of financk?l activities. A decrease in the carying amount of an asset as a resum of revaluation. is recogni%ed in other recogni%ed gains and losses. except to which it offsets any previous revaluaiion gain. in which case the k>ss is shjwn within other recognised gains and losses on the slalement of financial aclivilies. Depreclatlon Depreciation is ¢alculated 50 a5 to write off the c05t or valuation of an asset. less its residual value. over the uselul economic life of that assel as follows.. Long leasehold propety FumFture Fixtures & Equlpment 2% Stra￿ht line 25% reducing balan¢• Gov•rnm•nt grants Govemment grants are recognised at the fair value of the asset receNed or re(*Nable. Grant$ are not recognised until there is reasonable assurance that the charity will comply wilh the conditions attaching to them and Ihe grants will be received. Where the grant does not impose specIf￿d future perfonnancev￿l•led conditions on the recipient, it is recognised in income when the 9rant proceeds a￿ received or receivable. Where the grant does impose specified future perfomante•related conditions on the recipient. it Is recognised in income only when the perf¢)mianee•related Cond￿"0n$ have been met. Where grants received are prior to sats'sty"NJ the revenue re¢c*Jnition criteria. they are recogni58d as a liabilty. 19 The Hampstead School of Art Company Llmltsd by Guarants• Notes to the Financial Statements (¢M(* Year ended 31 August 2023 Ac¢ountlnq pollcl•s (¢onhnu Fln•n¢l•l In$lrum•nts A fir)ancial assot or a financial liak￿lIty is reco9nised only when the charity becc¥nes a paty to the ¢ontra¢tual pr¢visM)ns ol the instrument. Basic financial instruments are initbalty recognised at the amounl receivablg or payable including any related transaction eosl$. Current assets and current liabilities are subsequentry Measur￿ at tr£ cash or other consKJeration expected to be paid or received arKI not discount￿. D¢bl instruments are subsewenty measured at amortised cosl. Finan¢ial assets that are measured at cost or amortised cost are reviewed for oLy'ectivè evidence of impairment al the end of each reporting date. 11 there is objecti've evidence of impairment. an impaimenl loss is recognised under the appropriate heading in Ihe statement of financial activities in which Ihe initial gain was recc8nis•d. Operatlng leases Rental paid undèr operating lèas¢$ are tharged to the Statement of Financial A¢tivities on a straight-line basis over the lease tenm. Penslon company operates a defined conlribulion pension scheme and ￿ pension charge represents the aThiunt payable by the Company lo Ihe fvr￿ in respect of year. The Hampstead School of Art Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 August 2023 Limited by guarantee The cornpany is registe￿￿ as a company limited by guarantee. govemeé by its Memorandum and Articles of Assocrdlion dated 27 January 1995. and is registered as a charity with the Charity Commission. In the event of being wound up. the liabilty in respect of the guarantee is limrf(ed lo £1 per member of the company t)onations and lega¢i•s Unrestr￿ted Totsl Fund$ unreStr￿ted Total FurHJs Funds 2023 Funds 2022 Donations and ￿a¢leS 283.474 283.474 25.160 25,160 Govemment grant income 3,614 3,614 283.474 283,474 28,774 28.774 Charitable activitie5 Unrestricted Funds Reslricled Total Funds Fund5 2023 Tuition fees and other income 908.000 908,000 un￿$t￿Lled Funds Restricted Total Funds Funds 2022 Turtion fees and other income 912.461 3.200 915.661 Other trading activities Unrestricted Total Funds Unrestricted Total Funds Funds 2023 . Funds 2022 Cafe income Gallery exhibrtion income Miscellaneous sales 42,549 15,438 33,769 42,549 1 S,438 33,769 42,781 10,600 19,203 42,781 10.600 19.203 91,756 91,756 72.584 72,584 Investment income Unieslricted Total Funds unrestri￿ed Total Funds Funds 2023 Funds 2022 Bank interest 1.641 1.641 27 27 21 The Hampstead School of Art Company Limited by Guarantee Notes to the Financial Statements (contin{￿￿) Year ended 31 August 2023 Expenditure on charitable activities by fund type Unrestr￿e￿ Funds Restricted Total Funds Funds 2023 Direct costs Café ￿$1S Exhibilion costs Support costs 368.902 41.728 20,082 541,6( 368,902 41,728 20,082 545,709 4,103 972.318 4,103 976,421 Unrest[￿ed Funds Restricted Total Funds Funds 2022 Direct costs Cafe costs EXhibIt￿)n costs Support costs 345.015 42.008 14.977 524.194 345.015 42,008 14,977 532.865 8.671 926,194 8,671 934.865 10. Expenditure on charltable activities Analysi5 of direct costs 2023 2022 Purchases of materials Wages and salaries Models Computer expenses Adverb'sing 29.033 300.588 35.608 540 3,133 25,486 282.001 34.705 518 2.305 368.902 345,015 Activities undertaken directly Exhib(tion costs 20,082 14.977 Analysis of support costs Wageslsalar*s Rent LKJhl & heat Repairs. maintenance & C￿anIng Insurance Computer expenses Travelling expenses Audrt fees Legal and other professional fees Bank chaiges Telephone Printing. postage and ststionery Depreciation Mortgage interest Sundry expenses 287.132 43,699 7,654 56,729 4,974 12,441 4.888 4,800 7,116 17,733 2.507 6.660 52.219 21.874 15,283 545.709 293.106 38.105 8,059 31.433 4,595 12.010 4.646 9,760 6,567 16,576 2,517 7,328 59,302 22,990 15.871 532.865 22 The Hampstead School ofArt Company Llmited by Guarantee Notes to the Flnancial Statements It¢￿*￿￿ed) Year ended 31 August 2023 11. Net Income Net income i8 Stated after chaning1{credtling): 2023 2022 D￿recFati0n of tangible fixed assets 52,219 59.303 11 Audltors r•mun•r•tlon 2023 2022 Fees payable for the audit of the financial statements 4.800 9.760 13. Slaff costs The lolal staff Costs and employee benefits lor the ￿POrts.￿j ￿riod are analysed as follows: 2023 2022 Wages and salaries Social security costs Contrilxrtion to defined contr11￿110n pension schemes 565,539 31,524 9,428 606.491 594.276 32.121 7.212 594.276 The average number of frjktime equivalent employees durin9 the year is analysed as follows.. 2023 2022 No. Number of staff 26 27 The number of employees whose remunerab'on for Ihè yèar fell within the following bands, were: 2023 2022 No. No. £60.000 10 £69,999 £80.000 to £89,999 23 The Hampstead School of Art Company Llmited by Guarantse Not•s to the Financial Statements Year ended 31 August 2023 13. Staff costs {¢ortvnu•dJ Key Management Personn•l Key management personnel inckKlg all persons thal have auth￿ and resp￿sibility for planning. directing and controlling the activities of the charrty. The total compensation paid lo key management prsonnèl for services prov*Jed lo the tharity wa$ £196,684 {2022.. £187,420}. 14. Truslee r•muneratlon and •xp•ns•s During the year. no Trustees recevMI any rernuneTat￿n or other benefits (2022- £NIL). During the year ended 31st August 2023. no Trustee expenses have been incJJrred 12022 - £NIL). 15. Tanglble fix•d assets Long leasehold propety Equipment Total Cost Al 1 September 2022 Addrtions 1.523,661 281.182 6.814 1.804,843 6,814 Al 31 August 2023 Doprgclallon Al 1 September 2022 Charge for the year At 31 August 2023 Carryln9 •mount At 31 August 2023 Al 31 August 2022 1.523.661 287,996 1.811.657 159.997 30.967 157.524 21,252 317.521 52.219 190,964 178.776 369,740 1,332,697 109,220 1.441,917 1.363.664 123,658 1.487.322 16. Debtors 2023 2022 Trade debl(Ks Prepayments an(1 accrued inccrf Other debtors 9.221 2.252 5,957 56,640 19,609 642 17.430 76,891 24 The Hampstead School of Art Company Llmlt•d by Guarantee Notes to tho Finan¢ial Statements (eMltsw•dJ Year ended 31 August 2023 17. Credltors: amounts falllng due wfthln on• year 2023 2022 Bank loans Tra(le ¢reditors Accruals and deferred income Social sè¢urity and other tsxes other Crgdilors 31.651 10.025 329.929 9.867 7,262 23.284 282.898 12.184 7.440 379,69) 388,734 18. Cr•dllors: amounts falllng due after rnor• than one y•ar 2023 2022 Bank knans 564,415 618,659 The loan from HSBC to assist in fundw19 the purchase of the 999 year lease. is repayable ovèr 20 years complgting in 2038. Interest is to be tharged at approximatety 4% per annum for the duration of the loan. The bank loan is secufed by a fixed and tloatiThJ char9ed over all of the cornpany's assots. 19. Government grants The amounts reeognised in the financial Statements for govemment grants are as folows: 2023 2022 Recognised in income from dOnat￿S and legac￿. Govemment grants irKome 3.614 20. Anatysls of charllable funds Unrestrlcted funds At 31 August 2023 1 Septsmbar 2022 Income Expenditure General funds 451.091 1.284.871 1972.318) 763,644 1 September 2021 At 31 August 2022 Incorne Expenditure General funds 363.439 1.013,846 (926.1941 451.091 25 The Hampstead School ofArt Company Limlted by Guarantee Notes to the Flnanclal Statements (¢ontthwdJ Y•ar ended 31 August 2023 20. Analysls of Gharltable fvnds Restrlcted funds At 31 August 2023 1 Seplember 2022 Income Expenditure Restricted fund London Borough of Camden 358.154 16.411 358.154 12.308 14,103) 374,565 14.103) 370.462 1 September 2021 At 31 August 2022 Income Expenditure Olh•r fund$ (Contributi￿ to Sala￿$) London Borough of Carnden Restricted fund 3.200 {3.2001 {5,471) 21.882 358.154 16.411 358.154 380,036 3.2¢)0 {8.6711 374.585 The London Borough of Camden Grant relates to a govemmenl grant recerved with a restriction that it is spent on the purchase of fixed assets. At the roF*Ytin9 dale it had been spenl in full and the reslricted expenditure relates to depreciatic￿. 21. Anatysls of net assets between funds Unrestricled Fund$ Restricted Total Funds Funds 2023 Tangible fixed assets cul￿nt assgts Creditors less Ihan 1 yèar Creditors grealer Ihan 1 year N•1 assets 1.071.455 636.294 {379.69)) {564,415) 763.644 370.462 1.441,917 636.294 1379,690) 1564,415) 1.134.106 370.462 Unrestricted Funds Restricted Total Funds FuThls 2022 Tangible fixed assets Current assets CredrtOTS less than 1 year Creditors grealer than 1 year N•t a$s•ts 1.112,757 345.727 1388.7341 (618,6591 451.091 374.565 1,487,322 345.727 1388.7341 {618,6591 825,656 374.565 26 The Hampstead School ofArt Company Limited by Guarantee Notes to the Detailed Stat•ment of Financial Activities Year •nd•d 31 August 2023 22. Anatysls of Changes In net debt At Al 1 Sep 2022 Cash flows 31 Aug 2023 Cash at bank and in haThl Debt due within one year Debt due after one year 268.836 131.6511 (618,659) (381,474) 350.028 (22,233) 54.244 618,864 153,884) 1564.4151 565 382.039 23. Penslon commltments The charity operates a d&finod contribution pension scheme. The assets of the scheme are held separatety from thosè of the group in an independent administered fund. The pension cost charge represents contributions paYa￿e by the charity to the fund and amounted to £9,428 (2022.. £7,815}. Contributions lolalling £2.139 12022: £2.2501 were payable to the fund at the balance sheet date and are I￿uded in C￿di10T5. 24. Op•rating lease commitments At 31 August 2023 the Company had commitments to make fLrture minimum lease payments under non-cancellable operaling leases as follows= 2023 2022 Not later than 1 year Later than 1 year and not later Ihan S yeafs Later than 5 years 35.596 96.425 16,000 148,602 21,337 58.158 39.444 118.939 25. Relaled party transactlons At the balance sheet date. the eharity owed £nil 12022: £1.176} to a former trustee. Thts loan is interest free and repayable in full by 31 October 2023. 27