Company number: 3776969 Charity Number: 10776662
## Grizedale Arts
Trustee’s annual report and financial statements For the year ended 31 March 2022
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Grizedale Arts Reference and administration information
Company number 3776969 Charity number 10776662
Registered office and operational address The Coniston Institute, 15 Yewdale Road, Coniston LA21 8DU
Trustees
Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:
Jessica Lack Chair Alistair Hudson Treasurer Cllr Robin Ashcroft John Atkinson Gillian Faulding appointed 29/10/2021 John Millican appointed 29/10/2021 Angus Farquhar resigned 29/10/2021 Harriet Warden Chair resigned 29/10/2021
No trustees held title to property belonging to the charity during the reporting period or at the date of approval. Key management personnel
Adam Sutherland Executive Director and Company Secretary
Bankers
Barclays Bank Market Place Ambleside LA22 9BY
Solicitors
BSG Solicitors 3 & 4 Aalborg Place Lancaster LA1 1BJ
Independent Examiner
Patrick Morrello ACA Third Sector Accountancy Limited Holyoake House Hanover Street Manchester M60 0AS
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## Grizedale Arts Trustees’ annual report for the year ended 31 March 2022
The trustees present their report together with the financial statements of the charity for the year ended 31 March 2022 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 (FRS 102).
## Structure, governance and management
## Governing document
Grizedale Arts is a company limited by guarantee and governed by its Memorandum and Articles of Association dated 21 April 1999. It is also a registered charity. The company is membership based with each member's liability being limited to £1 in the event of it being wound up. The membership is currently limited to 30.
## Appointment of trustees
The directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as members of the Council. Under the requirements of the Memorandum and Articles of Association the members of the Council are elected to serve for a period of three years after which they can be re-elected once at the next Annual General Meeting.
Candidates for vacancies on the Council are sought by the Chairman from recognised and experienced practitioners in the areas indicated by the most recent skills audit. Candidates are invited to Grizedale to see the operation and to meet other Trustees before being put forward for approval at the next AGM.
## Induction and training of trustees
Newly appointed Trustees are provided with copies of the Grizedale Management Handbook/Policies and Methodologies, the company's Memorandum and Articles of Association, The Charity Commission's 'Duties of a Charitable Trustee' plus any other documentation considered necessary. In addition, all new Trustees attend for a minimum of two days induction.
## Organisation
The company is organised and run by a Council comprising a maximum of eight councillors elected from the membership at large, together with four councillors nominated by specified funding bodies. Officers are drawn from the elected councillors. The current numbers are within the limits permitted by the governing document.
## Related Parties and relationships with other organisations
There were no related party transactions apart from a grant received from South Lakeland District Council (SLDC). SLDC have the right to nominate a trustee to the charity’s Council. Councillor Robin Ashcroft is representing SLDC as a trustee.
The charity has very close relationships with the Arts Council England, South Lakeland District Council (SLDC) and the Architectural Heritage Fund. A summary of the grants and loans received from these bodies are recorded in note 3 to the accounts.
## Risk Management
A formal risk assessment analysis is reviewed by the Council on a regular basis with a number of management actions having been implemented. The last update and formal review was carried out in January 2022.
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## Grizedale Arts Trustees’ annual report for the year ended 31 March 2022
## Objectives and activities for public benefit
The objectives of the Company, as set out in its governing document, are:
- a) To conserve and enhance the natural beauty and amenity of the countryside for the benefit of the public and to provide and assist in the provision of facilities for recreation or other leisure time activities in the interests of social welfare and with a view to improving the conditions of life.
- b) To advance the education of the public in the appreciation of the arts by providing and assisting in the provision of a wide range of the performing and visual arts and, in particular, of art in the environment.
The company operates a policy of encouraging participation in the visual and performing arts with special reference to the context of the rural community. That policy continues to concentrate on the Visual Arts and the expansion of the Company's educational activities. The Company also operates an equal opportunities policy.
The above objectives and policies are effectively the same as those of the Grizedale Society whose operations were transferred to Grizedale Arts on 1 December 2001.
The Trustees confirm that they have referred to the general guidance on public benefit issued by the Charity Commission when reviewing and planning the charity's aims and objectives.
## Achievements and performance
This period takes us through the purchase of The Farmer’s Arms, its redevelopment and relaunch as a multi-functioning community and arts facility. The site is now a thriving gateway to the Crake Valley and its myriad of facilities and resources are run or initiated by Grizedale Arts.
I would have to categorise this financial year as intense. The Farmer’s Arms renovation programme has been a huge workload mostly undertaken by Grizedale Arts staff while its relaunch has ensued a significant change of organisational scope and a series of staffing increases required to run a functional business. Additionally, as COVID lockdown restrictions have eased, we have navigated numerous economic and behavioural changes in our audiences and customer base. Despite these challenges, and the many resulting complexities, remarkable things have been achieved, most notably, the substantial increase in The Farmer’s Arms property value which has given confidence to the investors, validation to our efforts and a level of fiscal security for the charity.
We should mention the epic work of Emma Summer negotiating staffing and managerial issues. Tom Phillipson for his extraordinary work on the building and surrounds and Karen Guthrie as a freelancer offering support on design, gardens, and complex administrative areas.
From the programme of artists/managers both Alistair Debling and Francis Lloyd Jones (cook and pub potter respectively) have led the way in demonstrating how a combined role can work for both their businesses and the project. The Farmer’s Arms has also provided employment to a wide cross section of local people and a multitude of training and enterprise opportunities.
Highlights of The Farmer’s Arms programme include:
- The establishment of woodwork and pottery workshops running a programme of courses and classes.
- The development of new productive gardens and gaining vacant possession of the land to host festivals and fairs, events and recreation.
- The expansion of a new art collection incorporating Grizedale Art’s archive and documenting a local cultural history.
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## Grizedale Arts Trustees’ annual report for the year ended 31 March 2022
- Establishment of a residency programme hosting a wide range of artists combining working in the pub with developing their own work.
- The extending of the volunteer programme to include a weeklong residential stay at The Farmer’s Arms.
- A programme of talks, films, performances and workshops.
- Hosting of local and international groups including international residential schools.
Lawson Park continues to provide a residency base hosting many volunteers, artists and professional groups. The development of a new productive relationship with the property owners, Forestry England, is in progress. Although there is a much-reduced involvement with the Coniston Institute, we still hold an office in the building and many of the projects we initiated continue to thrive.
The external conditions previously noted (COVID), have also contributed to reduced activity in our international programme, exhibition projects for national and international institutions and the major residential programme in Japan. It is hoped that there will be some return to these ways of working in the next financial year.
## Adam Sutherland (Director)
## Our beneficiaries
As The Farmer’s Arms opened to the public, we have seen a significant increase in the number of beneficiaries we are able engage with general visitor figures were in the region of 350,000.
Our general audience data shows that residents from across Cumbria, but predominantly from the South Lakeland area including the Barrow peninsula and West Coast communities were one of our main beneficiaries. In addition, as Covid restrictions were lifted, we saw a significant increase in the number of national and international beneficiaries traveling to engage with our events (such as The Farmer’s Yarns and Lawson Park Open Days), and many others who chose to stay in the area to engage with our workshops.
In addition, we have expanded our programmes that support early career artists with their professional development and reopened productive partnerships with other rural communities internationally. Through these programmes we have supported 60+ artists and 30+ other creatives which has enabled us to engage more diverse audiences with an increase of around 15% in audiences identifying as non-white British.
## Financial review
The total funds of the charity at the year-end were £1,180,599 (2021: £1,285,740) consisting of £1,150,721 (2021: £1,256,390) unrestricted funds and £29,878 (2021: £29,350) of restricted funds.
Having due regard for the assets needed to maintain and develop the charity’s activities, and to show a more realistic picture of its assets and free reserves, the trustees decided to show the charity’s unrestricted funds of £1,150,721 as follows:
General fund - £74,744 - these are the free reserves the charity uses to fund activities in line with its charitable objectives, and to carry out regular repairs to property and facilities needed for its operation.
Designated property assets fund - £945,181 – the properties and other fixed assets are essential for the current and future operations of the charity, and so should be excluded from free reserves/the general fund. Although the net book value of all assets shows as £1,547,283 the trustees must take into consideration the social investment loan and loan stock related to the property assets, and so shows the assets fund net of the loans (see Note 19 to the accounts).
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## Grizedale Arts Trustees’ annual report for the year ended 31 March 2022
Designated refurbishments fund – 2021: £200,000 – these funds were “set aside” to ensure funds for the refurbishment costs for the recently purchased Farmer’s Arms during the year. After spending £69,204 in this year and considering ongoing refurbishment work during the next financial year, the trustees decided to keep the balance of £130,796 as designated.
## Unrestricted Funds
The total unrestricted income for the year was £354,444 (2021: £301,709), representing an increase of £52,735. Unrestricted expenditure for the year was £488,738 (2021: £258,580) generating a deficit of £134,294 for the year (2021: a surplus of £43,129).
## Restricted Funds
The total restricted income for the year was £31,809 (2021: £36,373). Restricted expenditure for the year was £2,656 (2021: £15,282) generating a surplus of £29,153 for the year (2021: £21,091).
## Policy on reserves
The Charity maintains sufficient reserves to carry out repairs and to fund activities in line with its charitable objectives.
The trustees intend to maintain reserves representing three months normal expenditure to meet unexpected costs. This currently stands at £78,000.
## Plans for the future
The Charity plans to continue with its artistic programmes during the year ended 31 March 2023 in collaboration with interested parties.
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## Grizedale Arts
## Trustees’ annual report for the year ended 31 March 2022
## Statement of Trustees' responsibilities
The charity trustees (who are also directors of Grizedale Arts for the purposes of company law) are responsible for preparing a trustees' annual report and 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 year which give a true and fair view of the state of the affairs of the charitable company and of its incoming resources and application of resources, including income and expenditure, of the charitable company for that year. In preparing the financial statements, the trustees are required to:
- Select suitable accounting policies and then apply these consistently;
- Observe the methods and principles in the Charities SORP;
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees on 9 December 2022 and signed on their behalf by:
Jessica Lack Chair 30 / 12 / 2022 Date signed:
Alistair Hudson Treasurer 30 / 12 / 2022 Date signed:
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## Grizedale Arts Independent examiner’s report to the trustees For the year ended 31 March 2022
I report on the accounts of the charity for the year ended 31 March 2022 set out on pages 7 to 23.
## **Respective responsibilities of trustees and examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (“the Charities Act”) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of ICAEW.
## It is my responsibility to:
- examine the accounts under section 145 of the Charities Act,
- to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and
- to state whether particular matters have come to my attention.
## **Basis of independent examiner’s statement**
My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
## **Independent examiner's statement**
In connection with my examination, no matter has come to my attention:
1. which gives me reasonable cause to believe that, in any material respect, the requirements:
- to keep accounting records in accordance with section 130 of the Charities Act; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
have not been met; or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Patrick Morrello ACA Third Sector Accountancy Limited Holyoake House Hanover Street Manchester M60 0AS
30 / 12 / 2022 Date:
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## Grizedale Arts
## Statement of Financial Activities
## (including Income and Expenditure account)
for the year ended 31 March 2022
|Unrestricted
funds
Note
£
**Income from:**
Donations and legacies
3
221,610
Charitable activities
4
45,968
5
86,834
Investments
6
32
**Total income**
**354,444**
**Expenditure on:**
Raising funds
7
92,064
Charitable activities
8
396,674
**Total expenditure**
**488,738**
9
**(134,294)**
Transfer between funds
28,625
**Net movement in funds for the year**
**(105,669)**
**Reconciliation of funds**
Total funds brought forward
1,256,390
**Total funds carried forward**
**1,150,721**
**Net income/(expenditure) for the year**
Other trading activities|Restricted
funds
£
31,809
-
-
-
**31,809**
_-_
2,656
**2,656**
**29,153**
(28,625)
**528**
29,350
**29,878**|Total funds
2022
£
253,419
45,968
86,834
32
**386,253**
92,064
399,330
**491,394**
**(105,141)**
-
**(105,141)**
1,285,740
**1,180,599**|_Unrestricted_
_funds_
_£_
_232,828_
_53,991_
_14,728_
_162_
**_301,709_**
_18,971_
_239,609_
**_258,580_**
**_43,129_**
_-_
**_43,129_**
_1,213,261_
**_1,256,390_**|_Restricted_
_funds_
_£_
_29,300_
_7,073_
_-_
_-_
**_36,373_**
_-_
_15,282_
**_15,282_**
**_21,091_**
_-_
**_21,091_**
_8,259_
**_29,350_**|_Total funds_
_2021_
_£_
_262,128_
_61,064_
_14,728_
_162_
**_338,082_**
_18,971_
_254,891_
**_273,862_**
**_64,220_**
-
**_64,220_**
_1,221,520_
**_1,285,740_**|
|---|---|---|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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## Grizedale Arts Company number 3776969
## Balance sheet as at 31 March 2022
|Note
**Fixed assets**
Tangible assets
14
**Total fixed assets**
**Current assets**
Debtors
15
Cash at bank and in hand
**Total current assets**
**Liabilities**
Creditors: amounts falling
due in less than one year
16
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling
due after more than one year
17
**Net assets**
**The funds of the charity:**
Restricted income funds
18
Unrestricted income funds
19
**Total charity funds**|£
£
1,547,283
**1,547,283**
66,552
210,168
**276,720**
(41,303)
**235,417**
1,782,700
(602,101)
**1,180,599**
29,878
1,150,721
**1,180,599**
2022|_£_
_£_
_1,482,908_
**_1,482,908_**
_88,733_
_347,989_
**_436,722_**
_(32,655)_
**_404,067_**
_1,886,975_
_(601,235)_
**_1,285,740_**
_29,350_
_1,256,390_
**_1,285,740_**
_2021_|
|---|---|---|
For the year in question, the company was entitled to exemption from an audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006,
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts are prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.
The notes on pages 9 to 23 form part of these accounts.
Approved by the trustees on and signed on their behalf by:30 / 12 / 2022
John Atkinson (Trustee)
Alistair Hudson (Trustee/Treasurer)
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Grizedale Arts
Notes to the accounts for the year ended 31 March 2022
## **1 Accounting policies**
The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **a Basis of preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Grizedale Arts meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.
The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £ sterling.
## **b Judgments and estimates**
The trustees have made no key judgments which have a significant effect on the accounts.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.
## **c Preparation of the accounts on a going concern basis**
The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.
## **d Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met.
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Grizedale Arts
Notes to the accounts for the year ended 31 March 2022 (continued)
## **e 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 Bank.
## **f Fund accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of charity.
Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.
Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.
## **g Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds comprise the costs of Loan stock arrangement fees, loan interest and fundraising activities.
- Expenditure on charitable activities includes the costs of operations and projects undertaken to further the purposes of the charity.
- Other expenditure represents those items not falling into any other heading.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **h Tangible fixed assets**
Individual fixed assets costing £200 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:
|Freehold building and land|0%|
|---|---|
|Leasehold property|over the remaining lease term|
|Fittings and equipment|10%|
|Motor vehicles|25%|
|Works of art|0% - 20%|
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Grizedale Arts
Notes to the accounts for the year ended 31 March 2022 (continued)
## **i Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **j Cash at bank and in hand**
Cash at bank and cash in hand includes cash and funds held bank current and deposit accounts.
## **k Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **l 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.
## **m Pensions**
Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme. The charity’s contribution is restricted to the contributions disclosed in note 10. There were no outstanding contributions at the year end.
## **2 Legal status of the charity**
The charity is a company limited by guarantee registered in England and Wales and has no share capital. 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. The registered office address is disclosed on page 1.
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Grizedale Arts
## Notes to the accounts for the year ended 31 March 2022 (continued)
## **3 Income from donations and legacies**
|Donations
Arts Council England North West
Cumbria County Council
Craven District Council
South Lakeland District Council
Architectural Heritage Fund
The Prince's Countryside Fund
Other grants
**Total**|Unrestricted
£
3,723
201,334
-
-
16,553
-
-
-
221,610|Restricted
£
-
-
7,500
-
-
-
12,170
12,139
31,809|Total 2022
£
3,723
201,334
7,500
-
16,553
-
12,170
12,139
253,419|_Unrestricted_
_£_
_1,494_
_201,334_
_10,000_
_-_
_20,000_
_-_
_-_
_-_
_232,828_|_Restricted_
_£_
_21,200_
_-_
_-_
_-_
_-_
_8,100_
_-_
_-_
_29,300_|_Total 2021_
_£_
_22,694_
_201,334_
_10,000_
_-_
_20,000_
_8,100_
_-_
_-_
_262,128_|
|---|---|---|---|---|---|---|
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Grizedale Arts
## Notes to the accounts for the year ended 31 March 2022 (continued)
## **4 Income from charitable activities**
|**Grants:**
EU Co-operation project
South Lakeland District Council
**Charitable trading:**
Programme income
Programme catering
Programme accommodation rental
Shop sales
Architecture School
Other
**Total**
**Income from other trading activities**
Holiday lets
Pub and café catering income
Shop sales|Unrestricted
£
-
-
20,562
891
9,618
13,967
-
930
45,968
Unrestricted
£
35,895
50,639
300
86,834|Restricted
£
-
-
-
-
-
-
-
-
-
Restricted
£
-
-
-
-|Total 2022
£
-
-
20,562
891
9,618
13,967
-
930
45,968
Total 2022
£
35,895
50,639
300
86,834|_Unrestricted_
_£_
_-_
_20,636_
_-_
_-_
_180_
_-_
_6,000_
_27,175_
53,991
_Unrestricted_
_£_
_14,728_
_-_
_-_
_14,728_|_Restricted_
_£_
_7,073_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
7,073
_Restricted_
_£_
_-_
_-_
_-_
_-_|_Total 2021_
_£_
_7,073_
_20,636_
_-_
_-_
_180_
_-_
_6,000_
_27,175_
61,064
_Total 2021_
_£_
_14,728_
_-_
_-_
_14,728_|
|---|---|---|---|---|---|---|
## **5 Income from other trading activities**
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## Grizedale Arts
## Notes to the accounts for the year ended 31 March 2022 (continued)
## **6 Investment income**
|Income from bank deposits
**Cost of raising funds**
Staff costs
Fundraiser's fees
Charity shop costs
Cost of good sold
Catering supplies
Land and building maintenance
Office/Admin overheads
Sundry other costs
Loan stock and loan interest paid|Unrestricted
£
32
32
Unrestricted
£
20,919
2,300
9,742
16,195
13,624
4,925
5,902
1,243
17,214
92,064|Restricted
£
-
-
Restricted
£
-
-
-
-
-
-
-
-
-
-|Total 2022
£
32
32
Total 2022
£
20,919
2,300
9,742
16,195
13,624
4,925
5,902
1,243
17,214
92,064|_Unrestricted_
_£_
_162_
_162_
_Unrestricted_
_£_
_15,461_
_1,790_
_-_
_-_
_-_
_1,720_
_18,971_|_Restricted_
_£_
_-_
_-_
_Restricted_
_£_
_-_
_-_
_-_
_-_
_-_
_-_
_-_|_Total 2021_
_£_
_162_
_162_
_Total 2021_
_£_
_15,461_
_1,790_
_-_
_-_
_-_
_1,720_
_18,971_|
|---|---|---|---|---|---|---|
## **7 Cost of raising funds**
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Grizedale Arts
## Notes to the accounts for the year ended 31 March 2022 (continued)
## **8 Analysis of expenditure on charitable activities**
|Staff costs
**Note 10**
Training and other staff costs
Artists fees, materials and expenses
Venue and equipment hire
Project and programme costs
Professional fees
Volunteer expenses
Intern fees and expenses
Marketing
Catering and food supplies
Goods purchased for resale
Travel and subsistence
Rent and rates
Utilities (heat, light and water)
Repairs, maintenance and cleaning
Land and garden maintenance
Equipment <£500
IT support and website costs
Telephone and comms
Insurance
Motor expenses
Postage and stationery
Sundry expenses
Licenses and subscriptions
Bank charges
Loan stock interest payments
Accountancy fees
Depreciation
Loss on lease surrender
Restricted expenditure
Unrestricted expenditure|Total 2022
£
145,064
1,123
25,506
-
-
29,467
1,792
-
8,410
3,628
6,721
2,546
4,790
27,054
56,641
-
3,581
3,884
2,529
19,375
375
1,047
(1,713)
419
1,463
5,213
3,005
47,410
-
399,330
2,656
396,674
399,330|_Total 2021_
_£_
_87,235_
_-_
_17,860_
_762_
_23,703_
_10,003_
_502_
_-_
_3,268_
_1,448_
_-_
_284_
_1,811_
_12,157_
_31,363_
_27,454_
_-_
_8,252_
_1,087_
_5,298_
_1,916_
_2,292_
_1,920_
_479_
_569_
_-_
_8,222_
_(11,035)_
_18,041_
_254,891_
_15,282_
_239,609_
_254,891_|
|---|---|---|
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Grizedale Arts
Notes to the accounts for the year ended 31 March 2022 (continued)
## **9 Net income/(expenditure) for the year**
|This is stated after charging/(crediting):|2022|_2021_|
|---|---|---|
||£|_£_|
|Depreciation|47,410|_(11,035)_|
|Interest payable|21,560|_1,168_|
|Operating lease rentals:|||
|Property|1,750|_1,750_|
|Accountancy fees (accounts preparation)|1,700|_1,100_|
|Independent examiner's fee|300|_300_|
|**ff costs**
ff costs during the year were as follows:
Wages and salaries
Social security costs
Pension costs|2022
£
151,043
11,994
2,946
165,983|_2021_
_£_
_95,913_
_4,480_
_2,303_
_102,696_|
|---|---|---|
## **10 Staff costs**
Staff costs during the year were as follows:
No employee has employee benefits in excess of £60,000 (2021: Nil).
The average number of full- and part-time staff employed during the period was 7 (2021: 4). The average full time equivalent number of staff employed during the period was 5 (2021: not stated).
The key management personnel of the charity comprise the trustees, the Executive Director and the Valley Project Manager. The total employee benefits of the key management personnel of the charity were £81,030 (2021: £83,394).
## **11 Trustee remuneration and expenses, and related party transactions**
Neither the management committee nor any persons connected with them received any remuneration or reimbursed expenses during the year (2021: Nil).
There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.
No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity, including guarantees, during the year (2021: nil).
South Lakeland District Council is considered a related party as major funding provider with the right to appoint a trustee. The trustee representing the South Lakeland District Council is Cllr Robin Ashcroft.
During the year the charity set up Farmers Arms (Grizedale) Limited, a company limited by guarantee, registered number 03776969. The subsidiary is wholly owned by the charity and was financially assisted during its set up period with an interest free loan of £22,759.
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Grizedale Arts
Notes to the accounts for the year ended 31 March 2022 (continued)
## **12 Government grants**
The government grants recognised in the accounts were as follows:
|Arts Council England - North West
Cumbria County Council
Department of Work and Pensions
South Lakeland District Council
EU Co-operation project|2022
£
201,334
7,500
714
16,553
-
226,101|_2021_
_£_
_201,334_
_10,000_
_-_
_40,636_
_7,073_
_259,043_|
|---|---|---|
There were no unfulfilled conditions and contingencies attaching to the grants.
## **13 Corporation tax**
The charity is exempt from tax on income and gains falling within Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.
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Grizedale Arts
## Notes to the accounts for the year ended 31 March 2022 (continued)
## **14 Fixed assets: tangible assets**
|**Cost**
Additions
**Depreciation**
Charge for the year
**Net book value**
At 1 April 2021
At 31 March 2022
At 31 March 2022
_At 31 March 2021_
At 1 April 2021
At 31 March 2022|Freehold
land and
buildings
£
435,941
98,179
534,120
-
8,760
8,760
525,360
_435,941_|Leasehold
improvements
£
1,447,507
-
1,447,507
412,001
37,042
449,043
998,464
_1,035,506_|Fittings and
equipment
£
24,645
13,606
38,251
23,445
1,608
25,053
13,198
_1,200_|Works of
art
£
52,633
-
52,633
42,372
-
42,372
10,261
_10,261_|£
1,960,726
111,785
2,072,511
477,818
47,410
525,228
1,547,283
_1,482,908_
Total|
|---|---|---|---|---|---|
## **Secured assets**
## **Leasehold improvements - Lawson Park**
There is a legal charge over the charity's leasehold land and buildings in favour of the Arts Council England who grant funded renovation work on the property.
## **Freehold land and buildings - Farmer's Arms Hotel**
The loan provided by The Archtectural Heritage Fund is secured by way of legal charge over the freehold property known as the Farmer's Arms Hotel, Ulverston, including fixtures and fittings, and plant and machinery.
## **15 Debtors**
|Trade debtors
Other debtors
Prepayments and accrued income
amount owed by subsdiary trading company|2022
£
24,891
3,419
15,483
22,759
66,552|_2021_
_£_
_-_
_82,928_
_5,805_
_-_
_88,733_|
|---|---|---|
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Grizedale Arts
Notes to the accounts for the year ended 31 March 2022 (continued)
## **16 Creditors: amounts falling due within one year**
|Trade creditors
Other creditors and accruals
Taxation and social security costs
**Creditors: amounts falling after more than one year**
Loan stock
Repayable after more than 5 years by instalments
The Architectural Heritage Fund, secured social
investment loan
Repayable after more than 5 years other than by
instalments|2022
£
17,893
18,459
4,951
41,303
2022
£
294,015
308,086
602,101
265,530
133,000|_2021_
_£_
_-_
_29,737_
_2,918_
32,655
_2021_
_£_
_293,700_
_307,535_
_601,235_
_250,000_
_144,000_|
|---|---|---|
## **17 Creditors: amounts falling after more than one year**
## **Secured social investment loan**
The above 20 year social investment loan provided by The Architectural Heritage Fund is secured by way of legal charge over the freehold property known as the Farmer's Arms Hotel, Ulverston, including fixtures and fittings, and plant and machinery.
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Grizedale Arts
## Notes to the accounts for the year ended 31 March 2022 (continued)
## **18 Analysis of movements in restricted funds**
|Balance at 1
April 2021
£
890
7,073
Black Shed Project
187
Cumbria County Council
-
DWP
-
-
_The Farmer's Arms_
-
Various grants
-
Donations
21,200
Total
29,350
Asia Europe
Foundation Grant
EU Co-operation
project
The Prince's
Countryside Fund
School For Social
Entrepreneurs|Income
£
-
-
-
6,000
714
5,500
12,170
7,425
-
31,809|Expenditure
£
(890)
-
(187)
-
(714)
(865)
-
-
(2,656)|Transfers
£
-
-
-
-
-
-
-
(7,425)
(21,200)
(28,625)|Balance at 31
March 2022
£
-
7,073
-
6,000
-
4,635
12,170
-
-
29,878|
|---|---|---|---|---|
## **Reasons for transfers to unrestricted funds**
The various grants and donations for Farmer's Arms were restricted to supporting renovation work at Farmer's Arms. The renovation costs were capitalised and so these restricted funds have been moved to unrestricted funds.
## _**Comparative period**_
|_All funds_
_Total_|_Balance at 1_
_April 2020_
_£_
_8,259_
_8,259_|_Income_
_£_
_36,373_
_36,373_|_Expenditure_
_£_
_(15,282)_
_(15,282)_|_Transfers_
_£_
_-_
_-_|_Balance at_
_31 March_
_2021_
_£_
_29,350_
_29,350_|
|---|---|---|---|---|---|
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Grizedale Arts
Notes to the accounts for the year ended 31 March 2022 (continued)
## **Note 18 continued**
## **Name of restricted fund Description, nature and purposes of the fund**
Asia Europe balance of grant remaining from 2018 Foundation Grant EU Co-operation grant funding for the Confederacy of Villages Project, an exchange programme project with four other EU organisations Black Shed Project grant received via Craven District Council, for research and development costs for the project as part of our Lawson Park programme Cumbria County Council grant for Children and Young Persons' Listening and Action Project DWP Access To Work grant School For Social grant towards professional staff development Entrepreneurs The Farmer's Arms various grants and donations for the Farmer's Arms Hotel, Ulverston, for building and restoration work to create a community hub with facilities for both charitable and commercial activities The Prince's for operating programmes at Farmer's Arms Countryside Fund
## **19 Analysis of movement in unrestricted funds**
|General fund
Designated property
assets fund
Designated
refurbishment fund|Balance at 1
£
174,717
881,673
200,000
1,256,390|Income
£
290,936
-
-
290,936|Expenditure
£
(488,738)
-
-
(488,738)|Transfers
£
97,829
63,508
(69,204)
92,133|As at 31
£
74,744
945,181
130,796
1,150,721|
|---|---|---|---|---|---|
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Grizedale Arts
## Notes to the accounts for the year ended 31 March 2022 (continued)
## **Note 19 continued**
## _**Comparative period**_
|_General fund_
_Designated property_
_assets fund_
_Designated_
_refurbishment fund_|_Balance at_
_£_
_1,213,261_
_-_
_-_
_1,213,261_|_Income_
_£_
_301,709_
_-_
_-_
_301,709_|_Expenditure_
_£_
_(258,580)_
_-_
_-_
_(258,580)_|_Transfers_
_£_
_(1,081,673)_
_881,673_
_200,000_
_-_|_As at 31_
_£_
_174,717_
_881,673_
_200,000_
_1,256,390_|
|---|---|---|---|---|---|
## **Name of unrestricted fund Description, nature and purposes of the fund**
General fund The free reserves after allowing for all designated funds Designated property The fixed assets are essential for the future operation of the charity and so are assets fund excluded from free reserves. Designated This is for refurbishment costs for the newly acquired freehold property, The refurbishment fund Farmer's Arms Hotel, to ensure a timely and full use of the property for the charity's activities. This is excluded from free reserves.
## **20 Analysis of net assets between funds**
|Tangible fixed assets
Net current assets/(liabilities)
Creditors of more than one year
Total
**_Comparative period_**
_Tangible fixed assets_
_Net current assets/(liabilities)_
_Total_|General
fund
£
1,547,283
(870,438)
(602,101)
74,744
_General_
_fund_
_£_
_1,482,908_
_(1,081,145)_
_401,763_|Designated
funds
£
-
1,075,977
-
1,075,977
_Designated_
_funds_
_£_
_-_
_1,081,673_
_1,081,673_|Restricted
funds
£
-
29,878
-
29,878
_Restricted_
_funds_
_£_
_-_
_29,350_
_29,350_|Total 2022
£
1,547,283
235,417
(602,101)
1,180,599
_Total 2021_
_£_
_1,482,908_
_29,878_
_1,512,786_|
|---|---|---|---|---|
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Grizedale Arts
Notes to the accounts for the year ended 31 March 2022 (continued)
## **21 Financial instruments**
Financial instruments measured at amortised cost comprise the loan financing provided by The Architectural Heritage Fund to the charity.
|Loan payable falling due within one year
Loan payable falling due after five years
Loan payable falling due in more than one year but in|2022
£
-
34,470
265,530
300,000|_2021_
_£_
_-_
_50,000_
_250,000_
_300,000_|
|---|---|---|
The loan financing is in the form of a secured loan with a fixed interest rate above the Bank of England base rate.
## **22 Operating lease commitments**
The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:
|Less than one year
One to five years
Over five years|2022
_2021_
£
_£_
1,750
_1,750_
7,000
_7,000_
-
_1,750_
8,750
_10,500_
Property|
|---|---|
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