REGISTERED COMPANY NUMBER: 03598612 (England and Wales) REGISTERED CHARITY NUMBER: 1077401 Re ort of the Trustees and ci ents for the Ye ded 31 March 20 for ast street Arts
East Street Arts Contents of the Financial Statements for the Year Ended 31 March 2024 Page Reference and Administrative Details Report of the Trustees 2 to 13 Report of the Independent Auditors 14 to 17 Statement of Financial Activities 18 Balance Sheet 19 Cash Fbw Statement 20 Notes to the Cash Flow Statement 21 Notes to Ihe Financial Statements 22 to 36
East street Arts Reference and Administrative Details for the Year Ended 31 March 2024 TRUSTEES C W Arnold R A Barradas Simoes J M Brady RAJSGillam L K Iredale K B O'Hare M Parikh C Price N M Ramshaw S S Sambhi M Wilson REGISTERED OFFICE Patrick Studios st Marys Lane Leeds West Yorkshire LS9 7EH REGISTERED COMPANY NUMBER 03598612 (England and Wales) REGISTERED CHARITY NUMBER 1077401 AUDITORS CLA Evelyn Partners Limited Chartered Accountants & statutory Auditors 3rd Floor 56 Wellington Street Leeds West Yorkshire LS12EE SOLICITORS Blacks Solicitors LLP City Point 29 King Street Leeds LS12HL BANKERS Unity Trust Bank Four Brindleyplace Birmingham 812JB Page 1
East street Arts Re ort of the Trustees for the Year Ended 31 March 2024 The Trustees, who are also directors of the charity for the purposes of the Companies Act, present their Annual Report and the audited financial statements for the year ended 31 March 2024. This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FR102) (effective 1st January 2015) and in accordance with the Companies Act 2006. Executive Summary This report provides an in-depth analysis of East Street Arts, (ESA) financial and operational status for the fiscal year ending 2024, highlighting the challenges faced and the leadership-driven initiatives implemented to ensure recovery and growth. Compiled by the Executive Director, Peopleshare Accountants, and Trustees, this report emphasises financial analysis and strategic decision-making as cornerstones of ESA'S road map to stability. ESA recognises the financial strain experienced during the year and the urgent need for transformation. With decisive leadership and enhanced financial strategies, ESA is confident in achieving long-term sustainability. Flnanclal Performance Overview Income and Expenditure Analy81s: Art Hostel.. Strategic interventions, including operational cost reductions and pricing adjustments, improved financial performance significantly Temporary Spaces.. Persistent inefficiencies in billing and rebate systems led to financial pressures. Enhanced accounting practices are now addressing these gaps to mitigate future risks. -Balance Sheet.. While assets remain robust at £3.57m, the prior yearfs loss of £776k underscores the critical need for stringent financial controls and proactive Cost management. Key Flnanclal Rlsks and Mltlgatlon Strategles: 1. Utlllty and Rate Disputes: Historical inaccuracies in billing have led to financial inefficiencies. Corrective actions have recovered £18k, with further disputes under negotiation. 2. Debtors Management: Outstanding debts totalling £66.5k demand immediate attention. A new debtor tracking system ensures fortnightly reviews and swift resolutions. 3. Loan Obligatlong: Rising interest rates have amplified loan repayments, particularty for the Art Hostel. Efforts are underway to Secure refinancing with more favoufable terms. Page 2
East street Arts ort of the Trustees for the Year Ended 31 March 2024 OBJECTIVES AND ACTIVITIES Introductlon: 30 Years of Artistled Change and a Year of Transformation 2023-2024 has been a defining period for East street Arts (ESA), not only marking 30 years since its founding bul also serving as a moment of profound reflection, transition, and renewed focus. Over the past three decades, ESA has played a critical role in shaping artist-led initiatives, Creating vital spaces for artistic production, and championing a more inclusive and sustainable aris sector. This milestone year was an opportunity to celebrate past achievements, but also to confront new realities. financial, structural, and strategic, requiring the organisation to evofve, recalibrate, and reaffirm its purpose in a rapidly shifting landscape. At the heart of ESA'S mission remains a steadfast commitment to artists: their practice, their spaces, and their ability to engage meaningfully with audiences and communities. This year, however. tested that commitment in new ways. Financial constraints, shifts in leadership, and broader, sector-wide challenges have necessitated difficult decisions. The organisation has had to restructure, adapt its funding model, and reexamine how best to deliver its core objectives with reduced resources. Yet, even amid these pressures, ESA has demonstrated remarkable resilience, continuing to provide opportunities for artists, advocating for the sustainability of creative work5pas, and delivering ambitious public engagement projects. A Year of Achievements and Challenges Despite the turbulence of the past year, ESA has not only maintained but expanded its impact. In the last Iwelve months, the organisation has: Restructurad Its leadershlp and governance to align wlth its evolving financial realities and future ambitions. Expandad artl8t resldencles and commlsslons, supporting over 40 artists, providing crucial space and financial support for creative experimentation. Strengthened natlonal and International partnershlps, fostering meaningful exchang8 programmes, particularly through collaborations in Taiwan. Belgium. and the Netherlands. Dellvered major publlc engagement projects, such as Hidden Histories of New Briggate and A City Less Grey, reinforcing ESA'S role in Connecting communlkn'es with cultural heritage and contemporary artistlc practices. Developed strateglc advocacy and research Inltlatlves, contributing to wider discussions on artist-led spaces, fair pay in the arts, and the sustainability ofcrealive work environments. Sustalned and evolved the Art Hostel, desplte financlal challonges, as a crucial site for artist resldencies and cultural exchange. Adaptlng to a Changing Landscape Navigating this period of transition has been complex. The financial landscape for arts organisations has become increasingly precarious. with reduced funding opportunities, rising operational costs, and the ever-present challenge of securing sustainable income streams. In response, ESA has had to make tough decisions, including staff restructuring, a critical reassessment of expenditure, and a renewed focus on income diversification. At the same time, the organisation has remained committed to its core values, ensuring that artists, particularly those facing barriers to opportunities, continue to have access to support, resources, and space to work. This year also underscored the importance of advocacy. ESA'S role extends beyond providing studio space and commissioning projects-it is about shaping the wider ecosystem in which artists operate. The organisation has continued to play a key role in discussions around the future of artist-led spaces, collaborating with national and international partners to push for more sustainable models that prioritise artist5, needs and long-term viability. Recognising Leadership and Legacy Page 3
East Street Arts ort of the Trustees for the Year Ended 31 March 2024 A particularfy significant moment this year was the recognition of ESA'S co-founders, Karen Watson and Jon Wakeman, who were both awarded MBES for their contributions to culture and the arts. This honour is not only a testament to their individual contributions but also an acknowledgment of ESA'S impact over the past three decades. Their leadership has shaped an organisation that has continually redefined what it means to be artist-led, demonstrating that a commitment to creativity, community, and social change can endure even in the face of significant external challenges. Looklng Ahead As ESA moves forward, the focus is on sustainability, innovation. and deepening its impact. The coming year will be about building on the foundations laid over the past three decades while ensuring that the organisation remains agile and responsive to the needs of artists and the communities it serves. There is work to be done in securing financial stability, refining ESA'S strategic direction, and continuing to advocate for the value of artist-led spaces. This report offers a detailed and transparent account of ESA'S activities, challenges, and achievements over the past year. It reflects on how the organisation has navigated change, maintained its commitment to artists, and sought to ensure that creative spaces remain viable and accessible in an increasingly uncertain landscape. In doing so, it affirms ESA'S role as a catalyst for artistic innovation, social engagement, and cultural resilience-now and in the years to come. Page 4
East street Arts Re ort of the Trustees for the Year Ended 31 March 2024 OBJECTIVES AND ACTIVITIES Organisational Change and Leadership Transition A New Leadership Structure: Responding to Change The past year has marked one of the most significant periods of transition in the history of East street Arts (ESA). August 2023 saw the departure of Co-Founder and Programme Artistic Director, Karen Watson, whose leadership was instrumental in shaping the organisation's direction over the past three decades. Karen's departure presented both a challenge and an opportunity-a moment to reflect on ESA'S trajectory, reconsider leadership structures, and strengthen the organisation's foundation for the future. In response, ESA implemented a new leadership framework designed to balance artistic integrity with financial and operational sustainability. In March 2023, Anita Kumari was appointed as Executive Director, assuming responsibility for financial oversight, business development, and governance. Alongside her, Jon Wakeman continued in his role as Artistic Director, focusing on programme development, artist support, and national advocacy for artist-led spaces. This reconfiguration ensured that ESA'S artistic mission remained central, while also reinforcing the financial and strategic leadership needed to navigate an increasingly challenging external landscape. Restructurlng for Sustalnablllty: Adaptlng to Flnanclal Realitles ESA'S leadership transition coincided with financial pressures that necessitated a thorough organisational revlew. The evolving funding environment, rising operational costs, and post-pandemic economic realitie5 all underscored the urgency of restructuring for long-term sustainability. A full-scale review of stsffing, operations, and financial models led to key strategic decisions, including.. Redeflnlng staff roles and responslblllties to create a leanor, more efficient structure while maintaining core organisational functions. A temporary freezo on salary Increas08 and new rncrultmont to prloritise securing sustainable fundlng for existing roles. A reassessment of ESA'S buslness model, particularly in relation to its spaces and the Art Hostel, ensuring a balance beeen financial viability and accessibility for artists. These adjustments were not made lightly. They represented difficult but necessary decisions aimed at preserving ESA'S long-term impacL The restructuring process. which included consultations with staff and external advisors, highlighted the need for a more adaptable and responsive organisational model-one that could weather financial challenges while maintaining a steadfast commitment to supporting artists and creative communities. strengthening Governance: Expandlng Expertlse and Advocacy Recognising the importance of strong governance in times of change, ESA prioritised board development as a key component of its leadership transition. Two new trustees, Dr. Marianna Tsionki and Tom Poultney, were appointed, bringing with them a wealth of expertise in higher education, research, and the creative industries. Their roles focus on.. strengthening partnerships with universities and emerging artist pathways. Providing financial and strategic oversight to ESA'S progfamme and space initiatives. Expanding ESA'S advocacy for artist-led spaces at a national level. The appointment of these trustees marks a step fotward in ensuring that ESA'S leadership reflects both the evolving landscape of the arts sector and the needs of the artists and communities it serves. A second round of trustee recruitment is planned, with a particular emphasis on Equality, Diversity, and Inclusion (EDI), reinforcing ESA'S commitment to building a governance structure that is representative. forward-thinking. and equipped to navigate the future. Managing the Human Impact of Change Page 5
East street Arts Re ort of the Trustees for the Year Ended 31 March 2024 OBJECTIVES AND ACTIVITIES Change, even when necessary, brings challenges. The restructuring process, particularly in relation to staffing, was carefully managed to minimise disruption while addressing financial realities. With freelance contracts ending, staff moving on to new opportunities, and some roles being reassessed or reduced, ESA faced the dual challenge of maintaining morale while implementing strategic adjustments. Individual meetings were held with all affected team members to ensure transparency and provide clarity on the outcomes of the restructuring. Consultation processes were initiated to explore alternative solutions where possible. Efforts were made to retsin institutional knowledge and support staff transitions. recognising that contlnulty is key to sustaining ESA'S impacL Despite these challenges, the restructuring also created opportunities-allowing ESA to rethink its approach to organisational efficiency, staff development, and resource allocation. The shift towards a more focused structure enables the organisation to direct its energies towards its core mission.. supporting artists, fostering creative communities, and advocating for sustainable artist-led spaces. Looklng Ahead: Buildlng on Change The leadershlp transition and organisational restructuring of the past year represent a defining moment for ESA, Change is rarely easy, particularly in a sector where financial uncertainty is a persistent challenge. However, through strategic realignment, governance strengthening, and a renewed focus on sustainablllty, ESA is positioning itself for the fulure. Key priorities moving forward include: Expandlng Income generatlon strategles, including securing new fundlng streams and reassessing ESA'S financial models to ensure long-term sustainability. Deepening partnershlps wlth academlc Institutlons and the wlder creatlve soctor, leveraging trustee expertise to build stronger pathways for artist development. Enhanclng Internal efflclency, with a continued focus on aligning staff structures with ESA'S evolving strategic vision. While the past year has been a period of transition, it has also been a time of renewal. ESA remains committed to its mission-championing artist-led spaces. supporting creative practice, and ensuring that the voices of artists continue to shape the cultural landscape. As the organisation moves forward, it doe5 SO with a leadership structure that is both reflective of its heritage and ready to embrace the challenges and opportunities of the future. Page 6
East street Arts Re ort of the Trustees for the Year Ended 31 March 2024 OBJECTIVES AND ACTIVITIES Flnancial Landscape: Challenges, Strategic Adjustments, and Sustainabllity Over the past year, East Street Arts (ESA) has navigated a complex and often unpredictable financial landscape, shaped by external economic pressures, internal restructuring, and evolving funding priorities. Like many organisations in the arts sector, ESA has faced a perfect str)rm of rising operational costs, inflationary pressures, and ambitious income projections that, in hindsight, required recalibration. These challenges have compelled ESA to rethink its financial strategy, balancing fiscal prudence with a commitment to artistic and community impact. Desplte these financial headwinds, ESA has demonstrated resilience by securing significant funding awards that provide long-term stability and reinforce its strategic objectives. Chief among these successes is the £3.75 mi15ion secured for the Keighley Creative Hub, a landmark project that will deliver much-needed creative space for artists and local communities. Additionalty, ESA successfully renewed its Natlonal Portfolio Organlsation (NPO) fundlng from Arts Council England. ensuring continuity for its core programmes, residencies, and artist development initiatives. Further investment was secured to expand the Creative Workspace Network (CWN), with a £25.000 grant reinforcing ESA'S role in advocating for Sustainable, artist-led spaces across the UK. strateglc Adjustments In Flnanclal Management In response to income shortfalls-most notsbly from ESA'S spaces and the Art Hostel-swift corrective action was taken to bring financial projections in line with operational realities. A comprehenslve flnancial review highlighted the need for a more rigorous and sustsinable approach to budgeting. Several strategic measures were introduced, including.. Revlsod flnanclal modelling, ensuring income forecasts are grounded in realistic and attainable targets. Stronger budget overslght, with increased scrutiny over expenditure, stricter spending caps, and an additional authorisation process for financial approvals. Delays or restructurlng of non-essential projects, prioritising those with secured, long-term funding, A revlew of prlcing structures across ESA'S Spaces and the Art Hostel. aiming to strike a balance beeen accessibility and financial sustainability. Proactlve pursuit of new fundlng streams, particularly focusing on artist support initiatives and public engagement programmes. While these adjustments were not without challenges, they have laid the groundwork for a more sustainable flnancial model that prioritises long-term stability over short-term gains. Addressing Structural and Operational Challenges Beyond financial recalibration, ESA has also undertaken significant structural and operational adjustments to align with its financial realities. Organisational restructuring has been a necessary, albeit difficult, process, with several roles identified as at risk of redundancy and reductions in working hours ft)r key staff positions. These decisions have been made with the overarching aim of ensuring ESA remains financially viable while continuing to deliver on its mission. Additionally, the leadership team has worked to streamllne admlnlstratlve processes, particularly in finance and business operations. The transition to external financial management support, coupled with internal restructuring, has provided an opportunity to reassess workflows, improve efficiencies, and introduce more robust financial oversight. The Art Hostel: A Case Study In Financlal Sustainablllty The Art Hostel has been a focal point of financial scrutiny. as its income projections did not align with actual occupancy levels. While it has continued to host a diverse range of artists and cultural practitioners-including international collaborations and artist residencies-its ability to generate revenue has been hampered by rising operational costs, increased utility expenses. and fluctuating booking trends. In response, ESA has implemented a comprehensive revlew of the hostel's financial model, including.. Page 7
East street Arts ort of the Trustees for the Year Ended 31 March 2024 OBJECTIVES AND ACTIVITIES A pricing strategy reassessment to ensure rates remain competitive while covering operational costs. Supplier reviews to explore cost-saving measures in areas such as laundry, cleaning, and utilities. strategic marketing efforts to boost direct bookings, reducing reliance on high-commission online travel agencies. Strengthened partnerships with local businesses to enhance guest experience while minimising expenditure. Desplte financial challenges, the Art Hostel remains a vital part of ESA'S offer, providing a unique intersection of artistic engagement and hospitality. Continued refinements in its operational strategy will be essential in securing its long-term viability. Moving Forward: A More Resllient Future ESA'S financial challenges over the past year have underscored the importance of aglllty, strategic foresight, and prudent resource management. While the organisation has faced difficulties, it has also demonstrated its ability to adapt, recalibrate, and emerge stronger. The next phase of ESA'S financial strategy will focus Dn sustained growth through diverslfied Income streams, increased fundralslng efforts, and refined approach to budget management that ensures financial stability without compromising artistic ambition. Through a combination of careful financlal stewardshlpi Strateglc fundlng acqulsltlon, and operatlonal efficlencles, ESA Is now better positioned to navigate the challenges ahead. The Gommitment to supporting artists, fostering creative spaces, and engaging communities remains unwavering, and with a stronger financial foundation, the organisation can continue to drive meaningful cullural impact well into the future. Page 8
East Street Arts f the Trus ees for the Year Ended 31 March 2024 OBJECTIVES AND ACTIVITIES Supporting Artists: Residencies, Commissions, and Development East Street Arts (ESA) has long championed artist-led practice, and the past year has reinforced our commitment to fostering creative innovation, professional growth, and meaningful public engagement. Through a dynamic programme of residencies. commissions. and artist support initiatives, we have not only provided tangible opportunities but also strengthened our advocacy for sustainable careers in the arts. Despite financial constraints, we have continued to prioritise artist development, ensuring access to vital resources, expert guidance, and space for experimentation. Resldencles: Experlmentatlon, Innovatlon, and Communlty Engagement Residencies remain a cornerstone of ESA'S support structure, offering artists the time, space, and resources to push the boundaries of their practice. Over the past year, 13 artlsts took part in residencie5 at Conventlon House, where they engaged with emerging technologies such as virtual reality, 3D printing, and drone photography while also exploring socially engaged practices. Convention House has evolved into a hub where artists not only develop new work but also interact with local communities and specialist collaborators, forging cross4isciplinary conversations and expanding the reach of their projects. Our international exchange programme has also contlnued to flourlsh. Through partnerships with organisations such as Treasure Hlll Artlst Vlllage (Taipei) and Plafform Asla, we have facilitated artist residencies that transcend borders, enabling practitioners to engage with different cultural and artistic ecosystems. These exchanges have created reciprocal learning experiences, allowing international artists to work in Leeds while ESA-SUPPOrted artists travel abroad, enriching their perspectives and neiworks. For the Treasura Hill Artlst Village 8xchange, Sayang, based in Leeds, travelled to Treasure Hlll Artlst Vlllage in Taipei to work on a community-focused public art project. Jul-Hung Nl, an artist based in Taipei, joined us here at East street Arts for a residency that focused on public engagement, civic practice, and cross-cultural dialogue. This exchange highlighted the global nature of our work, wilh Leeds2023 helping to strengthen ties beeen international arti5tiG communities and fostering collaboration on a glo1 scale. As part of the Netherlands Exchange, Chlara Tammaro and Tom Dljkstra took part in residencies facilitated by Leeds2023 and The Dutch Embassy. During their time at East street Arts, they explored community CO*curation methods and art in the public realm, enriching both their own practices and the local creative community. A significant highlight was the Shlftlng Sands research project, which explored graduate progression routes for early•career artists. This initiative identified key barriers to sustainable careers in the arts and informed new strategies for supporting emerging practitioners. Roundtable discusslons with freelancers, educators, and arts organisations in Leeds and Glasgow provided valuable insights into how ESA can continue to foster an environment where early-career artists can thrive. Commlsslons: Expandlng the Scope of Publlc Art The strength of ESA'S commissioning programme lies in Its ability to support artlsts in developing ambitious new work while embedding artistic practice within local communities. This year, 41 artlsts and collectlves were commissioned, contributing to the cultural fabric of Leeds and beyond. The commissions ranged from site-specific installations to large-scale public aOrkS, each responding to the themes of heritage, migration, social change. and environmental concerns. Among the notable projects.. Harry Clayton-wright & Yaku Stapleton Hidden Histories of New Briggate commissions, exploring the layered histories of the iconic Leeds street through light-based installations and performance. Rhian Kempadoo-Miller- A Carnival-themed mural in Chapeltown, celebrating the vibrancy of Caribbean heritage and community identity, co-created with local residents. This project was a significant collaboration with the Leeds West Indian Carnival, reinforcing the deep cultural connections to the carnival tradition and the wider community. Add Fuel IDiogo Machado) - 'Echoes' mural in Mabgate. inspired by the legacy of Burmantofts Pottery, blending contemporary street art with historical craftsmanship. Page 9
East street Arts Re ort of the Trustees for the Year Ended 31 March 2024 OBJECTIVES AND ACTIVITIES Mohammad Barrangi A threeIte public artwork, reflecting his personal journey of migration and storytelling through his distinctive visual12nguage. Tahera Aziz - [re]locate, a sound installation marking the 30-year anniversary of the murder of Stephen Lawrence, bringing themes of racial injustice, memory, and activism into the public realm. Each of these projects has not only expanded ESA'S reputation as a leading commissioner of contemporary art but also engaged thousands of local residents, visitors. and international audiences. Hidden Histories of New Briggate, for example, reached over 10,000 people during Leeds Light Night, demonstrating the power of site-responsive work in engaging new audiences. Artlst Support: Advocacy¥ Mentorshlpj and Professlonal Development Beyond residencies and commissions. ESA continues to provide extensive one•tOwone support for artists navigating the complexities of sustaining a career in the arts. In the past year: 240 bespoke support 5esslons were delivered, covering fundlng appllcatlons, marketlngg technlcal support, and portfollo development. Support was extended to over 130 artlsts, collectlves, and arts oryanlsatlons, with 21'A of partlclpant8 engaglng wlth ESA for the first tlme. Areas of focus ranged from PhD supervislon and academic research partnerships to studlo vlslts, publlc engagement strategles, and sustainablllty practlces. ESA'S advocacy work has also gained momentum. Through the Creatlve Workspace Network (CWN), we have been at the forefront of natlonal dlscussions on artist-led spaces, contributing to research, policy recommendations, and funding strategies aimed at securing affordable, sustalnable studlos for artists. Our efforts have included presenting data to Arts Councll England (ACE), hosting sector-wide discusslons, and leading the development of methodologies for creative capltal projects. Looklng Forward: Strengthenlng Our Commitment to Artlsts As ESA moves into the next phase of its programme, we remain committed to refining and expanding our support structure5. We recognise that artists need more than just space and funding-they require long-term strategic support, networking opportunitles, and access to specialist knowledge. Our upcoming priorities include: Deepenlng our Internatlonal partnerships to provide more opportunities for exchange and collaboration. Securlng additional funding for artlst development, ensuring Ihat artists at all career stages have access to sustainable pathways. - Advancing our public engagement strategles, bringing art into everyday spaces and making it accessible to a wider audience. Expanding our mentorshlp and peer4upport networks, allowing artists to learn from one another in structured, meaningful ways. Despite the challenges of reduced budgets and sector-wide financial straln, ESA remains steadfast in Its belief that artists are at the heart of cultural transformation. By continuing to invest in residencies, commissions, and professional development, we are not only supporting individual artists but also strengthening the creative ecology of Leeds and beyond. Communlty and Publlc Engagement: Transforming Local Connections through Art and History East street Arts (ESA) has dedicated this year to strengthening its relationships with the local community while also advancing public art initiatives that aim to uncover hidden histories, lebrate diversity, and create lasting social impact. These projects emphasize place-based cultural development, offering both artists and local communities a chance to connect, collaborate, and contribute to the collective memory and cultural evolution of their areas. Hidden Histories of New Briggate: A Landmark Public Art Projoct Page10
East street Arts ort of the Trustees for the Year Ended 31 March 2024 OBJECTIVES AND ACTIVITIES One of the standout achievements this year has been the Hidden Histories of New Brlggate project, a bold public art initiative that explored and celebrated the rich, often overlooked, cultural legacy of Leeds, New Briggate district. By weaving together public art, storytelling, and historical searCh, ESA brought to light the district's significant LGBTQ+ history. textile heritage. and evolving social dynamics. Key milestones Include: 23 artists commissioned to respond creatively to New Briggate's diverse history, creating works that ranged from visual art to performance. A two4lay Light Nlght installation that drew over 10,000 attendees, showcasing the aa'S hidden histories through dynamic light-based public art. A sold-out performance at the Howard Assembly Rooms, which reimagined the districvs entertainment heritage. A series of walklng tours, exhlbitions, and publlc events, which engaged local residents and vlsitors alike, fostering a deeper connection to New Briggate's past and tts vibrant future. The success of this project is a testament to ESA'S ability to merge artistic creatlvity with historical exploration, ensuring that New Briggate's stories are preserved and continue to resonale within the city's evolving cultural landscape. Summer School 2023: Creatlvlty, Cllmate, and Communlty In 2023, ESA'S Summer School served as an inspiring platform for young people from Burmantofts, Chapeltown, and Harehills, offering them an opportunity to engage with pressing global issues, such as climate change, through the lens of creative expression. This year, the program expanded its reach to include intergenerational collaborations, bridging the gap befvrfeen youth and elder community members to foster deeper, multi4Jenerational understanding. Key highlights of the Summer School 2023 Include: Workshops focused on 8UStalnable artlstic practlces and Glimate activism, allowing participants to explore creative solutions to environmental challenges. Intergeneratlonal collaboratlons, where young people worked alongside community elders, exchanging wisdom and experiences while developing new. collaborative artistic works. A final showcase event that demonstrated the power of art to unite individuals and ignite social change. This event not only highlighted tha creativity of the participants but also underscored the role of art in fostering cornmunity-led storytelling and connection. The succes5 of the Summer School reaffirmed ESA'S commitment to engaging and empowering future generations, providing them with the tools and inspirakn'on needed to become active stewards of their community and environment. Publlc Engagement and Community Impact: A Year of Transformat5on Throughout the year, ESA'S engagement with local communities has been a driving force behind numerous transformative projects that have created lasling social impact. ESA'S work remains deepSy embedded in the neighborhoods of Leeds, ensuring that its artistic initiatives are accessible, inclusive, and relevant to the people they serve. Key public engagement highlights include: The Neighbourhood Forum for Mabgate, Burmantofts, and Lincoln Green, which has successfully transitioned to full resldent-led ownership, giving local residents the autonomy to shape their own community's future. The Hidden Histories of New Briggate project, which engaged over 10,000 people through public art installations, performances, and heritage-based storytelling, solidifying ESA'S role as a catalyst for local cultural regeneration. Page11
East Street Arts Re ort of the Trustees for the Year Ended 31 March 2024 OBJECTIVES AND ACTIVITIES - The A City Less Grey program, which continued to enhan Leeds, public spaces through new murals and art commissions, including a carnival-themed mural In Chapeltown, reflecting the district's diverse cultural heritage. ESA'S ongoing commitment to place-based cultural development is evident in its ability to empower both artists and communities to Co-create projects that have a lasting impact on local cultural and social landscapes. By fostering collaboration, ESA ensures that the voices of local residents are integral to the artistic process. resulting in projects that not only reflect the community's identity but also inspire future generations to continue this legacy. Concluslon: A Vislon for 2024-2025 and Beyond As East street Arts IESA) moves forward into its next chapter, it dS so with a renewed sense of ambition, resilience, and commitment to artist-led practice. The past year has been one of transition, adaptation, and strategic decision-making, ensuring that ESA remains at the forefront of artist development, creative space provision, and community engagement. While financial challenges have necessitated difficult choices, they have also provided an opportunity to refine the organisation's focus. strengthen its foundations, and set clear priorities for the coming years At the heart of ESA'S vision for 2024-2025 lies a dedication to strengthenlng flnanclal resllience, ensuring long-term sustainability for both the organisation and the artists it seNes. This involves securing diverse funding streams, maximising the potential of ESA'S creative spaces, and developing strategic partnerships that align with the organisation's values and mission. The Keighley Creative Hub capital project, for example, stands as a testament to ESA'S ability to secure investment in artist-led infrastructure, wilh £3.75m in funding now confirmed. Similar approaches will be taken to enhance the viability of existing sites, including Convention House, Patrick Studios, and the Art Hostel. ensuring that they not only senie as creative spaces but also Gontribute to ESA'S financial stability. Alongside financial resilience, expanding artist residencies and commissions remains a central priority. ESA'S residency programme has continued to flourish, with key international exchanges taking place in Taipei, Ghent, and Groningen, as well as locally-led commissions that place artists at the heart of community slorylelling. The Arl Hostel has hosted a growing number of international arlists, musicians, and creatives, reinforcing ESA'S role as a hub for global artistic exchange. Looking ahead, the organisation aims to deepen thèse connections, fostering more opportunities for UK-based artists to engage in reciprocal exchanges abroad while continuing to welcome internation81 artists into ESA'S spaces. Crucially, ESA'S work is not just about supporting artiS1t is also about fostering communlty-led publlc art Inltiatlves that create meaningful and lasting change. The 'Hidden Histories of New Briggate, and 'A Clty Less Grey, projects have demonstrated the power of public art to shape narratives, reclaim space, and engage diverse audiences. The commitment to embedding artists within local communities, through Co-created projects that reflect heritsge, identity. and place, will continue to be a driving force. Initiatives such as the Chapeltown mural, storytelling projects, and collaborations with educational inslitutions highlight ESA'S role in bridging the gap between artists and the wider publiG. Despite the uncertainties that lie ahead-whether economic, political, or sectorwspeGific-ESA remains steadfast in its belief that artist-led approaches are vital to a thriving cultural ecosystem. The challenges of recent years have reinforced the organisation's ability to adapt. innovate, and find solutions that Sustain both creative practice and community engagement. As ESA enters its next 30 years, it does so with a renewed determination to shape a future that is inclus5ve, sustalnable, and artist<entred. ESA is more than an organisation-it is a movement, a network, and a catalyst for artistic and social change. As the coming year unfolds, it will continue to champion the needs of artists, advocate for the role of culture in urban and civic life, and provide the SpaS, opportunities. and support structures that allow creativity to flourish. With a clear vision and an unwavering commitment to its mission, ESA stands ready to embrace the future, ensuring that artists remain at the heart of everything it does. STRATEGIC REPORT Page 12
East street Arts Re ort of the Trustees for the Year Ended 31 March 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document East street Arts (ESAI is a registered charity, constituted as a company limited by guarantee and is therefore governed by a Memorandum and Articles of Association. The company was incorporated on 15 July 1998 and in the event of the company being wound up. members are required to contribute an amount not exceeding £1. Risk management The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. STATEMENT OF TRUSTEES. RESPONSIBILITIES The trustees (who are also the directors of East Street Arts for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and U nited Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the twstees to prepare financial ststements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charity SORP. make judgements and estimates that are reasonable and prudent., state whether applicable 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 charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware.. there is no relevant audit Information of which the charitable company's auditors are unaware., and the trustees have taken all steps that Ihey ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDITORS The auditors, CLA Evelyn Partners Limited, will be proposed for re-appointment at the forthcomlng Annual General Meeting. Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 24 March 2025 and signed on the board's behalf by.. N M Ramshaw- Trustee Page 13
ort of the Inde East street Arts endent Auditors to the Members of Opinion We have audiled the financial statements of East street Arts (the 'charitable company) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (Uniied Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair vrew of the state of the charitable companls affairs as at 31 March 2024 and of its incoming resources and application of resources. including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial stalements section of our report. We are independent of the charitable company in accordance with the ethical requiremenls that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we ha not identified any material uncertainties relating to events or conditions that, individually or co15ectively. may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 8Uthorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant seclions of this report. Other infomiation The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and. except to the extent otherwise explicitly stated in our report, we do not express any fomi of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to ad the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or othetwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whelher this gives rise to a material misstatement in the financial statemenls themselves. If, based on the work we have performed. we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit= the information given in the Reporl of the Trustees for the financial year for which the financial statements are prepared is consistent wilh the financial statements; and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Page 14
Re ort of the Inde East street Arts endent Auditors to the Members of Matters on which we are required to report by exception In the light of the knowledge and understanding of the chartlable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept or retuffls adequate for our audit have not been received from branches not visited by us: or the financial statements are nol in agreement with the accounting records and returns; or certain disclosures of trustees, remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Statement of Trustees, Responsibilities, the trnstees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assesslng the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realbstic alternative but to do so. Page15
Re ort ofthe Inde East street Arts endent Auditors to the Members of Our responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due lo fraud or error. and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assuran, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always delect a material misslatement when it exists. Misstatements can arise from fraud or error and aTr considered malerial if. individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Irregularities, including fraud, are instances of non-complian with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularilies, including fraud. Our approach to identifying and assessing the risks of material misstatement in respect of irregularilies, including fraud and non-compliance with laws and regulations, was as follows= the engagement partner ensured Ihat the engagement leam collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance wilh applicable laws and regulations; we identified the laws and regulations applicable to the charity through discussions with directors and other management., and from our comrnercial knowledge and experience of the heating sector we focused on specific laws and regulations which we considered may have a direct material effect on the financial stalements or the operations of the charity, including the Companies Act 2006, taxation legislation and data protection, anti-bribery. employment, environmental and health and safety legislation; we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence., and identified laws and regulations were communicaled within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the charity's financial statements to misstatement. including obtaining an understanding of how fraud mighl occur, by: making enquiries of management as to Whe they considered there was susceplibility to fraud, their knowledge of actual, suspected and alleged fraud; considering the internal controls in place to mitigate risks of fraud and non-compliance wilh laws and reg ulations., and understanding the design of the charitls remuneration policies. To address the risk of fraud through management bias and override of controls, including the impact on revenue recognilion, we: performed analytical procedures to identify any unusual or unexpected relationships: used data analytics software to test journal entries to identify unusual transactions., assessed whether judgements and assumptions made in detemiining the accounting estimates set out in note 3 were indicative of potential bias. and invesligated the rationale behind significant or unusual transaciions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which induded, but were not limited to: agreeing financial statement disclosure to underlying supporting documentation: enquiring of management as to actual and potential litigation and claims,. and reviewing correspondence with HMRC, relevant regulators and the charitls legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other rnanagement and the inspection of regulalory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. Page16
ort oflhe Inde East street Arts endent Auditors to the Members of A further description of our responsibilities for the audti of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilities. This description forms part of our Report ofthe Independent Auditors. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required lo state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do nol accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report. or for the opinions we have formed. CLft eNII7, P,AiiKs L,. 4,4 Matthew Barton (Hons) FCA CTA (Senior Statutory Auditor) for and on behalf of CLA Evelyn Partners Limited Chartered Accountants & statutory Auditors 3rd Floor 56 Wellington Street Leeds West Yorkshire LS1 2EE 31 March 2025 Page 17
East street Arts Statement of Financial Activities for the Year Ended 31 March 2024 2024 Total funds 2023 Total funds Unrestricted Restricted fund funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 342,749 12,050 354,799 205,369 Charltable activities Core National grants Rent of studio space Temporary spaces Regional grants 284,722 111,566 117,693 332,266 9,700 284,722 143,666 117,693 332,266 66,519 187,016 241,126 119,985 476,392 10,658 32,100 56,819 Other trading activities Investment income Other income 17,297 10,970 63,250 80,547 10,970 70,519 9,896 22,356 Total 1,226,963 164,219 1,391,182 1,343,317 EXPENDITURE ON Charitable actlvltles Charitable activities Core Temporary spaces Studio spaces Other projects Art hostel 2,431 389,914 463,877 142,810 763,850 357,102 374,825 337,708 149,942 355,324 311,600 12,858 387,683 337,708 149,942 563,686 345,879 208,362 34,279 Total 1,529,399 255,499 1,784,898 2,119,984 NET INCOMEI(EXPENDITURE) (302,436) (91,280) (393,716) (776,667) RECONCILIATION OF FUNDS Total funds brought forward 1,049,449 2,098,334 3,147,783 3,924,450 TOTAL FUNDS CARRIED FORWARD 747,013 2,007,054 2,754,067 3,147,783 CONTINUING OPERATIONS All income and expenditure has arisen from conts'nuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. The notes form part of these financial statements Page 18
Eas street Arts Balance Sheet 31 March 2024 2024 Total funds 2023 Total funds Unrestricted fund Restricted funds Notes FIXED ASSETS Tangible assets Investments 15 16 992,044 1,996,149 2,988,193 3,092,046 413 992,044 1,996,149 2,988,193 3,092,459 CURRENT ASSETS Debtors Cash at bank 17 181,198 386,037 181,198 396,942 211,608 725,079 10,905 567,235 10,905 578,140 936,687 CREDITORS Amounts falling due within one year 18 (132,899) (132,899) (190,9981 NET CURRENT ASSETS 434,336 10,905 445,241 745,689 TOTAL ASSETS LESS CURRENT LIABILITIES 1,426,380 2,007,054 3,433,434 3,838,148 CREDITORS Amounts falling due after more than one year 19 (679,367) (679,367) (690,365) NET ASSETS 747,013 2,007,054 2,754,067 3,147,783 FUNDS Unrestricted funds Restricted funds 21 747,013 2,007,054 1,049,449 2,098,334 TOTAL FUNDS 2,754,067 3,147,783 The financial statements were approved by the Board of Trustees and authorised for issue on 24 March 2025 and were signed on its behalf by.. N M Ramshaw- Trustee The notes form part of these financial statements Page 19
East street Arts Cash Flow Statement for the Year Ended 31 March 2024 2024 2023 Notes Cash flows from operatlng actlvities Cash generated from operations Interest paid (258.690) (60,974) (543,114) (52,118) Net cash used in operating activities (319,664) (595.232) Cash flows from Investing activities Purchase of tangible fixed assets Sale of fixed asset investments Interest received (3,763) 413 10,970 (22,619) 9,896 Net cash provided byl(used in) investing activities 7.620 (12,723) Cash flows from financlng actlvltles Loan repayments in year (16,093) (30,389) Net cash used in financing activities (16,093) {30,389) Change In cash and cash equlvalents In the reportlng perlod Cash and cash equivalents at the beglnnlng of the reportlng period (328,137) (638,344) 725,079 1,363,423 Cash and cash equlvalents at the and of the reportlng perlod 396,942 725,079 The notes form part of these financial statements Page 20
East street Arts Notes to the Cash Flow Ststemen for the Year Ended 31 March 2024 RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net expendlture for the reporting perlod las per the Statement of Financial Activitles) Adjustments for: Depreciation charges Interest received Interest paid Adjustments Decrease in debtors (Decrease)lincrease in creditors (393,716) {776,667) 107,616 (10,970) 60,974 101,082 (9,896) 52,118 (8,444) 33,966 64,727 30,410 (53.004) Net cash used In operations (258,690) (543,114) ANALYSIS OF CHANGES IN NET FUNDSIIDEBT) At 114123 Cash flow At 3113124 Net cash Cash at bank 725,079 (328,137) 396,942 725,079 (328.137) 396,942 Debt Debt5 falling due within 1 year Debts falling due after 1 year (31,90n (690,365) 5,095 10,998 (26,812) (679,367) {722,272) 16,093 (706,179) Total 2,807 (312,044) (309,237) The notes fomi part of these financial statements Page 21
East street Arts Notes to the Financial Statements for the Year Ended 31 March 2024 CHARITY INFORMATION East street Arts is a private company limited by guarantee incorporated in England and Wales. The registered office is Patrick Studios. St MaS Lane. Leeds, LS9 7EH. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company. The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year. ACCOUNTING POLICIES Basis of preparlng the financlal statements The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019),, Flnancial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. with the exception of investments which are included at market value. Going concern At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity's loan facility is reviewed annually by the provider and the trustees are not aware of any reason why the facility would be withdrawn.Thus Ihe trustees continue to adopt the going concern basis of accounting in preparing the financial statements. Charitable lunds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Income Income is recognised when the charity is legalty entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or othenvise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known. the legacy is treated as a contingent asset. Voluntary income received by way of grants is included in full in the statement of financial activities when receivable, and matched to specific time periods or expenditure where appropriate. Investment income is included when receivable. Page 22
East street Arts Notes to the Financial Statements- continued for the Year Ended 31 March 2024 ACCOUNTING POLICIES - contlnued Charitable funds Income from charitable activities. which indudes grants, rent and other income is included when receivable and aGcounted for when earned, eXpt when donors conditions have not been fulfilled, then the income is include in creditors as deferred income. Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classlfied by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned beeen those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use. Tangible flxed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful Ilfe. Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any Impairment losses. Depreciation Is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Freehold land and buildings Tenants improvements Leasehold improvements Fixtures and fittings Computer equipment 20k, 2.50/0 and 5Yo Straight line Straight line over the lease term 7 years straight line 20 % reducing balance 3 years straight line The galn or loss arising on the disposal of an asset is determined as the difference beeen the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. Impairment of flxed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment Ios5. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Flnancial instruments The charity has elected to appty the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charivs balance sheet when the charity becomes paty to the contractual provisions of the instrument Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Page 23
East street Arts Notes to the Financial Statemen s- continued for the Year Ended 31 March 2024 ACCOUNTING POLICIES • contlnued Taxatlon East Street Arts is considered to pass tests set out in Paragraph 1 Schedule 6 of the Finance Act 20210 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are exclusively to charitable purposes. Pension costs and other post-retirement benefits The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial AGtivities in the period lo which they relate. Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at Bank and In hand Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Crodllon8 Short term creditors are measured at the transaction prlce. Basic flnanclal assets Basic financial assets, which include debtors and cash and bank balanc8s. are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic flnanclal Ilabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effeGtive interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognltion of financlal Ilablllties Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. Employee beneflts The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. Retirement beneflts Page 24
East street Arts Notes to the Financial Statements - continued for the Year Ended 31 March 2024 ACCOUNTING POLICIES - contlnued Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Key sources of estimation uncertainty Impairment of assets Where there are indications of impaiment, management performs an impairment test. For trade debtors this may simply be a review of the age profile of the debtors against the relevant payment terms and consideration of the debtors, payment history. Any other relevant factors. of which management are aware, will also be considered. together with comparison of historical impairment provisions against actual outcomes. Tanglble flxed assets and depreclatlon In order to implement the charity's accounting policy in respect of tangible fixed assets, management has to estimate the useful life of each category of such assets, determine which category individual assets belong, eslimate the possibility and amount of residual values and allocate the cost of some assets beeen their major components, when such components have different useful lives. Management relies on industry knowledge, local facts, commonly used accounting practices, prior experience, specialisvprofessional advice (both current and historic) and any other relevant information which they are aware of, in order to make these estimates. DONATIONS AND LEGACIES 2024 2023 Donations Glft ald Grants 1,576 50 353.173 30 50 205.289 354,799 205,369 Grants received, included in the above. are as follows: 2024 2023 Leeds City Council - Arts@Leeds Grant Art Council England - NPO Grant 12,050 341,123 45,000 160,289 353,173 205,289 OTHER TRADING ACTIVITIES 2024 2023 other income 80,547 70,519 Page 25
East Street Arts Notes to the Financial Statements- continued for the Year Ended 31 March 2024 INVESTMENT INCOME 2024 2023 Deposit account interest 10,970 9,896 INCOME FROM CHARITABLE ACTIVITIES 2024 2023 Activity Income from charitable activities Grants Rent of studio space Donations and recharges from temporary space programme Grants Core National grants Rent of studio space 284,722 143,666 117,693 187,016 241,126 119,985 Temporary spaces Regional grants 332,266 66,519 476,392 10,658 944.866 1,035,177 Grants received, included in the above, are as follows.. 2024 2023 Grants 210,185 251,784 OTHER INCOME 2024 2023 Kickstarter grants 22,356 CHARITABLE ACTIVITIES COSTS Direct Costs (see note 9) Support cost5 (see note 10) Totals Core Temporary spaces studio spaces Other projects Art hostel 310,681 32g,554 140,785 512,145 345,682 77,002 8,154 9,157 51,541 197 387,683 337,708 149,942 563,686 345,879 1.638.847 146,051 1,784,898 Page 26
East street Arts Notes to the Financial Statements- continued for the Year Ended 31 March 2024 DIRECT COSTS OF CHARITABLE ACTIVITIES 2024 2023 staff costs Project expenses Direct costs other staffing costs Programme costs Bad and doubtful debts Irrecoverable VAT Premises costs Artists fees Depreciation Interest payable and similar charges 605,796 149,972 261,363 68,866 94,360 6,534 15,934 220,842 50.262 107,616 57,302 660,287 187,993 385,605 38,726 290,754 22,874 43,551 214,298 7,261 114,886 49,185 1,638,847 2,015,420 10. SUPPORT COSTS Governance costs Management Totals Core Temporary spaces Studio spaces other projects Art hostel 35,955 8,154 9,157 51,541 197 41,047 77,002 8,154 9,157 51,541 197 105,004 41,047 146,051 11. NET INCOMEI(EXPENDITURE} Net incomellexpenditure) Is stated after chargingl(crediting)'. 2024 2023 Audit and aGcountancy Depreciation - owned assets 7,000 107,616 11,300 114,887 12. TRUSTEES, REMUNERATION AND BENEFITS Trustees, expenses Clare Price was paid £NIL (2023.. £550). Minoti Parikh received £24,450 (2023: £8,000) in relation to provision of training for East Street Arts employees around managing conflict and company culture through data collection and a survey. None of the other trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. Page 27
East street Arts Notes to the Financial Statements- con for the Year Ended 31 March 2024 inued 13. STAFF COSTS 2024 2023 Wages and salaries Social security costs other pension costs 542,698 46,703 16,395 596.199 47,321 16,767 605,796 660,287 The average monthly number of employees during the year was as follows.. 2024 22 2023 27 Employees No employees received emoluments in excess of £60,000. During the year the total remuneration paid to key management personnel was £110,260 (2023: £113,986). 14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Restricted fund funds Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 205,369 205,369 Charltable activitiès Core National grants Rent of studio space Temporary spaces Regional grants 187,016 55,036 119,985 476.392 10.658 187,016 241,126 119,985 476,392 10,658 186,090 Other trading activities Investment income Other income 68,719 9,896 22,356 1,800 70,519 9,896 22,356 Total 1,155,427 187,890 1,343,317 EXPENDITURE ON Charitable activities Charitable activities Core Temporary spaces studio spaces Other projects Art hostel 2,431 389,914 463,877 142,810 157.899 331,118 2,431 389,914 463,877 142,810 763,850 357,102 605,951 25,984 Total 1,488,049 631,935 2,119,984 NET INCOMEI(EXPENDrruRE) (332,622) (444,0451 (776,667) RECONCILIATION OF FUNDS Total funds brought forward 1,382,071 2.542,379 3,924.450 Page 28
East stree Arts Notes to the Financial Statements - continued for the Year Ended 31 March 2024 14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - contlnued Unrestricted Restricted fund funds Total funds TOTAL FUNDS CARRIED FORWARD 1,049,449 2,098,334 3,147,783 15. TANGIBLE FIXED ASSETS Improvements to propety Fixtures and fittings Freehold property COST At 1 April 2023 Additions 3,398,129 71,603 197,911 3,763 At 31 March 2024 3,398,129 71,603 201,674 DEPRECIATION At 1 April 2023 Charge for year 494,433 69,942 11,081 10,229 71,192 26,473 At 31 March 2024 564,375 21,310 97,665 NET BOOK VALUE At 31 March 2024 2,833,754 50,293 104,009 At 31 March 2023 2,903,696 60,522 126,719 Tenants Computer improvements equipment Totals COST At 1 April 2023 Additions 128,751 76.016 3,872,410 3,763 At 31 March 2024 128,751 76,016 3,876,173 DEPRECIATION At 1 April 2023 Charge for year 128,752 74,906 972 780,364 107,616 At 31 March 2024 128,752 75,878 887,980 NET BOOKVALUE At 31 March 2024 (1) 138 2,988,193 At 31 March 2023 (1) 1,110 3,092,046 The Unity Trust Bank PLC have a legal charge on the property known as Patrick Studios, St Mary's Lane, Leeds, LS9 7EH dated 18th March 2020 pursuant to Chapter A1 Part 25 of the Companies Act 2006. The propety had a carried forward value of £1,216.507 {2022'. £1,155.187) at the year end. The Unity Trust Bank PLC also have a legal charge on the property known as New York Studios, New York Road, Leeds, LS9 7DW dated 18th September 2018 pursuant to Chapter A1 Part 25 of the Companies Act 2006. The property had a carried forward value of £511.719 (2022: £522,986) at the year end. Page 29
East street Arts Notes to the Financial Statements- continued for the Year Ended 31 March 2024 16. FIXED ASSET INVESTMENTS There were no investment assets outside the UK. The charity purchased £50 of investment on 19 September 2007 which was allocated into the Phone Co-op share capital account. The charity receives dividends as a percentage on their call expenditure and Interest as a perntage of their investment which is retsined within their investment share capital account. The shares have been written off in the year therefore investment is now nil at the end of the year. 17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade debtors Other debtors Prepayments and accrued income 66,507 104,676 10,015 110,196 66.943 34,469 181,198 211,608 18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Bank loans and overdrafts (see note 20) Trade creditors Social security and other taxes other creditors Accruals and deferred Income 26,812 26,672 10,446 20,610 48,359 31,907 60,974 12,407 20,421 65,289 132,899 190,998 19. CREDrroRS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2024 2023 Bank loans (see note 20) 679,367 690,365 20. LOANS An analysis of the maturity of loans is given below: 2024 2023 Amounts falling due within one year on demand.. Bank loans 26,812 31,907 Amounts falling due in more than five years.. Repayable by instalments: Bank loans more 5 yr by instal Repayable othemise than by instalments: Bank loans more 5 yrs non-inst 690,365 679,367 A loan from Unity Trust Bank PLC, secured by way of legal charge on the properties known as New York Studios, New York Road, Leeds. LS 9 7DW and Patrick Studios, St Mary's Lane, Leeds, LS9 7EH. The Charity has a fixed repayment schedule in place with the loan to be repaid in full by March 2040. Page 30
East street Arts Notes to the Financial Statements- continued for the Year Ended 31 March 2024 21. MOVEMENT IN FUNDS Net movement in funds At 3113124 Al 114123 Unrestricted funds General fund 1,049,449 (302,436) 747,013 Restrlcted funds Capital Project Barkston Ceramics MARYS Capital Project ACE Convention House Leeds CC Convention House Add Fuel Art Hostel Commissions Art Hostel Refurbishment Garfield Weston Haribo Happlness 1,120,981 4,110 433,301 299,579 84,335 23,962 11,014 115,437 615 5,000 (33,580) 1,087,401 4,110 426,296 290,698 84,335 (7,005) (8,881) (23,962) 11,014 103,200 (12,237) (615) (5,000) 2.098,334 (91,280) 2,007.054 TOTAL FUNDS 3.147.783 (393,716) 2,754,067 Net movement in funds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unre5trlcted funds General fund 1,226,963 (1,529,399) (302,436) Restrlcted funds Capital Project MARYS Capital Project ACE Convention House Add Fuel Art Hostel Refurbishment Garfield Weston Haribo Happiness Arts Council Creative Workspace Leeds CC -Arts @ Leeds A City Less Grey Leeds Creative Labs Artist Carnival Mural Project Neighbourhood Plan The Netherlands Creative Exchange Project Bradford MDC (33,580) (7,005) (8,881) (23,962) (12,237) (615) (5,000) (22,500) (12,050) (50,000) (6,250) (2,000) (5,000) (33,580) (7,005) (8,881) (23,962) (12,237) (615) (5,000) 22,500 12,050 50,000 6,250 2,000 5,000 9,600 56,819 (9,600) (56,819) 164,219 (255.499) (91,280) TOTAL FUNDS 1,391,182 (1,784,898) (393,716) Page 31
East street Arts Notes to the Financial Statements - continued for the Year Ended 31 March 2024 21. MOVEMENT IN FUNDS- continued Comparatlves for movement in funds Net movement in funds At 3113123 At 114122 Unrestrlcted funds General fund 1,382,071 (332,622) 1,049,449 Restricted fund8 Capital Project Barkston Ceramics MARYS Capital Project Programme CLLD ACE Convention House Leeds CC Convention House Programme GUILD WYCA Bike Shed Add Fuel Art Hostel Commissions Art Hostel Refurbishment WYCA Garfield Weston Haribo Happiness DCMS- CRF Grant Round One 1,160,657 6,200 455,890 5,069 319,509 82,535 82,086 5,000 27.279 13,992 138,443 9,688 143,507 574 91.950 (39,676) (2,090) (22,589) 15,069) (19,930) 1,800 (82,086) (5,000) (3,317) (2.978) (23.006) (9,688) (142,892) 4,426 (91,950) 1,120,981 4,110 433,301 299,579 84,335 23,962 11,014 115,437 615 5,000 2.542,379 (444,045) 2,098,334 TOTAL FUNDS 3,924,450 (776,667) 3,147,783 Page 32
East Street Arts Notes to the Financial Statements - continued for the Year Ended 31 March 2024 21. MOVEMENT IN FUNDS * continued Comparative net movement in funds, included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestricted funds General fund 1.155,427 (1,488.049) (332,622) Restrlcted funds Capital Project Barkston Ceramics MARYS Capital Project Programme CLLD ACE Convention House Leeds CC Convention House Programme GUILD WYCA Bike Shed Add Fuel Art Hostel Commissions Art Hostel Refurbishment WYCA Garfield Weston Haribo Happiness DCMS - CRF Grant Round One (39,676) (2,090) (22,589) {5,069) (19,930) 139,676) (2,090) (22,589) {5,069) (19,930) 1,800 (82,086) (5,000> (3,317) (2,978) (23,006) (9,688) (142,892) 4,426 (91,950) 1,800 180,828 (262,914) (5,000) (3,317) (2,978) (23,006) (9,688) (143,154) (574) (91,950) 262 5,000 187,890 (631,935) 1444,045) TOTAL FUNDS 1,343,317 (2,119,984) (776,667) Page 33
East Street Arts Notes to the Financial Statements- continued for the Year Ended 31 March 2024 21. MOVEMENT IN FUNDS continued A current year 12 months and prior year 12 months combined position is as follows: Net movement in funds At 3113124 At 114122 Unrestricted funds General fund 1,382,071 (635,058) 747,013 Restricted funds Capital Project Barkston Ceramics MARYS Capital Project Programme CLLD ACE Convention House Leeds CC Convention House Programme GUILD WYCA Bike Shed Add Fuel Art Hostel Commissions Art Hostel Refurblshment WYCA Garfield Weston Haribo Happiness DCMS- CRF Grant Round One 1,160,657 6,200 455,890 5,069 319,509 82,535 82,086 5.000 27,279 13,992 138,443 9,688 143.507 574 91,950 (73,256) 12,090) (29,594) (5,069) (28,811) 1,800 (82,086) (5,000) (27,279) (2,978) (35,243) (9,688) (143,507) (574) (91,950) 1,087,401 4,110 426,296 290,698 84,335 11,014 103,200 2,542,379 (535,325) 2,007,054 TOTAL FUNDS 3,924,450 (1,170,383) 2,754,067 Page 34
East street Arts Notes to the Financial Statements - continued for the Year Ended 31 March 2024 21. MOVEMENT IN FUNDS- continued A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestrlcted funds General fund 2,382,390 (3,017,448) (635,058) Restrlcted funds Capital Project Barkston Ceramics MARYS Capital Project Programme CLLD ACE Convention House Leeds CC Convention House Programme GUILD WYCA Bike Shed Add Fuel Art Hostel Commissions Art Hostel Refurbishment WYCA Garfield Weston Haribo Happiness DCMS- CRF Grant Round One Arts Council Creative Workspace Leeds CC - Arts @ Leeds A City Less Grey Leeds Creative Labs Artist Carnival Mural Project Neighbourhood Plan The Netherlands Creative Exchange Project Bradford MDC (73,256) (2,090) (29,594) {5,069) (28,811) (73,256) (2,090) (29,594) (5,069) (28,811) 1,800 (82,086) (5,000) (27,279) (2,978) (35,243) (9,688) (143,507) (574) (91,950) 1.800 180.828 (262,914) (5,000) (27,279) (2,978) (35,243) (9,688) (143.7691 (5,574) (91,950) (22,500) (12,050) (50,000) (6,250) (2,000) (5,000) 262 5,000 22,500 12,050 50.000 6,250 2,000 5,000 9,600 56.819 (9,600) (56,819) 352,109 (887,434) (535,325) TOTAL FUNDS 2,734,499 (3,904.882) (1,170,383) 22. EMPLOYEE BENEFIT OBLIGATIONS The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. The charge to profit or loss in respect of defined contribution schemes was £16,395 (2023: £16,767). At 31 March 2024, there were balances (including employee and employer contributions) of £5,549 (2023.. £3,527) outstanding. Page 35
East street Arts Notes to the Financial Statements - Gontinued for the Year Ended 31 March 2024 23. RELATED PARTY TRANSACTIONS Trustees received amounts in the year as detailed in Note 12. No further related party transactions took place that are required to be disclosed. DESIGNATED FUNDS The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.. Balance at 31 March 2024 Balan at 1 April 2023 Incoming resources Resources expended Programme Development. Asset Maintenance & Development Historic England Cultural Project 50,000 50,705 50,000 50,705 162,435 100,705 The purposes of the designated fund5 With balances in the year are as follows.. Hlstorlc England . Cultural Project To cover the costs of a new Briggate three year projecL Page 36