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2020-12-31-accounts

Annual Report of Kingsgate Workshops Trust Annual Report and Accounts 2020

www.kingsgateworkshops.org.uk Charity number 1082112

KINGSGATE WORKSHOP TRUST

Trustees’ annual report

For the year ended 31 December 2020

Chair’s foreword

Under the leadership of our Director, Dan Howard-Birt, Kingsgate Workshops is a stable organisation that fosters a friendly and supportive community of artists and makers and provides a strong foundation for public-facing creative opportunities despite the culture sector being disproportionately affected by the pandemic. The organisation adapted well during the uncertain times and we successfully sought out appropriate funding to ensure the organisation remains stable. Whilst the studio holder-led activities as well as the public programme were somewhat effected, the organisation created new ways to engage successfully with our supporters.

Studio occupancy remains consistently high throughout the year despite the hurdles we have had to overcome and we remain in a strong financial position. We have also continued to take steps to develop links between studio holders, our public programme and the wider creative community. This year we were delighted to finally develop the outside area creating further open-air space for visitors to enjoy and engage with our studio holders.

I am particularly grateful to our small but dedicated staff team who manage such an an exciting and diverse programme with very limited resources, as well as to my fellow trustees who voluntarily support Kingsgate’s work.

Spirit de la Mare Chair Date: 19/08/2021

1

KINGSGATE WORKSHOP TRUST

Trustees’ annual report

For the year ended 31 December 2020

About Kingsgate Workshops

Kingsgate Workshops Trust is a registered charity which promotes the arts and art activities through the provision of studio spaces and a public programme.

Kingsgate Workshops is a unique affordable studio provider that houses dedicated provision for artists and designer-makers. The Trust owns and operates a large Victorian warehouse building which contains 51 studio spaces which are let to a wide range of artists and craftspeople.

Kingsgate also has a developing public programme, including supporting emerging artists, offering them the space and opportunities to make and show new work, through our ‘Artists in Residence’ programme.

About the Trust

The Trust Board is made up of individuals who volunteer to give their time to support the development of Kingsgate Workshops. They come from a variety of backgrounds bringing a range of knowledge and expertise to the work of the Trust. In 2020 the Trustees were:

Spirit De La Mare Tamsin Clark Graham Martin Sandie Mattioli (until Dec 2020) Alison Taylor

The Director of Kingsgate Workshops is Dan Howard-Birt. Dan works with a small staff team to manage the Workshops, develop the artistic programme and administer the Trust.

Highlights of the year

Developing the artistic vision

The impact of Covid-19 was severely felt on all of our established ways of supporting and delivering public-facing artistic activities in 2020. Recent graduates Jennifer Martin, Matthew de Kersaint Giraudeau and Ruth Waters continued their mentored artist residencies (began in 2019) through the early months of the year. Planning for future Project Space exhibitions and other commissions likewise continued. All activities were halted in March 2020 as London moved into the first ‘lockdown’.

Unable to create onsite projects, and with support from Arts Council England, new initiative for making and sharing art works were devised.

In 2020:

2

KINGSGATE WORKSHOP TRUST

Trustees’ annual report

For the year ended 31 December 2020

Editions included: Award winning novelist Irenosen Okojie working with recent printmaking graduate Jasmine Pajdek; The young Brighton-based curatorial team 650MAH working with Tokyo-based artist collective 4649; British artist Luke Burton collaborated with the influential US poet CA Conrad. Early issues specifically commissioned artists with whom we had planned to work in 2020 and so meant that they didn’t lose out on opportunities. These included Sarah Bolton, Angus McCrum, Nina Royle and Cyrus Shroff. Recipients of the Postal Service were nominated by Kingsgate and by the participating artists and writers, further copies were sent to subscribers and those who entered prize draws through our social media feeds.

Following Kobby Adi’s 16:9 Billboard project (Nov 19 – Jan 20) all 16:9 Billboard and millimetre projects were postponed through 2020.

Studio Holder events

In the interval between ‘lockdowns’ one Kingsgate studio holder was able to participate in London Craft Week’s city-wide programme of workshops for members of the public to engage with craft processes.

Improving workshop spaces

No material improvements were made to studio spaces or the building in 2020. Routine repair and maintenance continued as required.

Studio occupancy

Despite concern for the impact of Covid-19 on studio-holders’ ability to retain their spaces, no studio holders departed Kingsgate. Two studio holders negotiated fixed-term sabbatical (or sub-let) arrangements. Kingsgate was able to secure a grant from Creative Land Trust to create a Hardship Fund for studio-holders. £13,020 was distributed to 14 Licensees and 4 Studio Sharers in two tranches, to those who declared hardship.

Financial overview

An increase in Licence Fee of 2% was enacted before this impact and duration of Covid-19 could be clearly understood. In addition, grants (described above) were received from Arts Council England and Creative Land Trust in 2020. Therefore, income increased from £288,272 (2019) to £328,187 (2020).

3

KINGSGATE WORKSHOP TRUST

Trustees’ annual report

For the year ended 31 December 2020

The Trust continued to make good progress in repaying its outstanding mortgage on the Workshop premises at 110-116 Kingsgate Road.

Full details can be found in the audited financial statements appended to this report.

Staffing

In March 2020, Administrator & Studio Programme Manager Helen Innes left the organisation and Helen Scibilia was recruited into that role.

In October 2020, Public Programme Curator Ellie Davies began a 12-month maternity leave period.

There were no further changes to staffing.

Remuneration Policy

The pay of the senior staff is reviewed annually. The charitable trust pays staff a fair salary that is competitive with the charity sector, proportionate to the complexity of each role, and in line with our charitable objectives. All staff pay is reviewed and decided upon by the board of trustees on an annual basis.

Signed on behalf of the Board of Trustees by:

Spirit de la Mare

Chair

Date: 19/08/2021

4

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF

KINGSGATE WORKSHOP TRUST

For the year ended 31 December 2020

I report to the trustees on my examination of the accounts of the Kingsgate Workshop Trust for the year ended 31 December 2020.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Anthony Epton BA FCA CTA FCIE Goldwins Chartered accountants 75 Maygrove Road West Hampstead London NW6 2EG

Date: 19/08/2021

5

Kingsgate Workshop Trust Statement of financial activities (incorporating an income and expenditure account) For the year ended 31 December 2020

Unrestricted
Funds
Note
£
Income from:
3
10
4
302,279
5
54
302,343
6
223,931
223,931
7
78,412
-
78,412
Reconciliation of funds:
146,342
224,754
Donations and legacies
Charitable activities
Net movement in funds
Total funds brought forward
Total funds carried forward
Net income for the year
Transfers between funds
Total expenditure
Total income
Expenditure on:
Charitable activities
Investment income
Restricted
Funds
£
-
25,844
-
25,844
25,844
25,844
-
-
-
128,428
128,428
2020
Total
Funds
£
10
328,123
54
328,187
249,775
249,775
78,412
-
78,412
274,770
353,182
2019
Total
Funds
£
27
288,245
-
288,272
283,542
283,542
4,730
-
4,730
270,040
274,770

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 16 to the financial statements.

The attached notes form part of the financial statements.

6

Kingsgate Workshop Trust Balance sheet As at 31 December 2020

Note
Fixed assets:
11
Current assets:
12
Liabilities:
13
Liabilities:
14
16
Total unrestricted funds
Total funds
Unrestricted funds:
General funds
Net current assets / (liabilities)
Total assets less current liabilities
Total net assets
Funds
Restricted funds
Creditors: amounts falling due after one year
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
Tangible assets
2020
£
10,272
112,798
2020
£
490,614
27,479
2019
£
9,495
64,767
2019
£
504,989
(24,455)
123,070
95,591
74,262
98,717
224,754 146,342
518,093
164,911
480,534
205,764
353,182 274,770
128,428
224,754
128,428
146,342
353,182 274,770

Approved by the trustees on 19/08/2021. and signed on their behalf by:

Spirit de la Mare Chair

The attached notes form part of the financial statements.

7

Kingsgate Workshop Trust Notes to the financial statements For the year ended 31 December 2020

1 Accounting policies

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 - effective 1 January 2015) - (Charities SORP FRS 102).

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following Charities SORP FRS 102 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 (SORP 2005) which has since been withdrawn.

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

b) Going concern

The trustees consider that there are no material uncertainties despite the impact of COVID-19 about the charity's ability to continue as a going concern. 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 amounts of assets and liabilities within the next reporting period.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that 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 for the provision of specified service is deferred until the criteria for income recognition are met.

d) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

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.

8

Kingsgate Workshop Trust Notes to the financial statements For the year ended 31 December 2020

1 Accounting policies (continued)

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 of trading costs and the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose. Expenditure on charitable activities includes the costs of delivering services and other activities undertaken to further the purposes of the charity and their associated support costs. 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) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 6.

i) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows: Leasehold building 2 % per annum Fixtures, Fittings and Equipment 20 % per annum

j) 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.

k) Cash at bank and in hand

Cash at bank and cash 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.

l) 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.

9

Kingsgate Workshop Trust Notes to the financial statements For the year ended 31 December 2020

2 Detailed comparatives for the statement of financial activities

Donations and legacies
Charitable activities:
Other income
Charitable activities:
3
Donations
4
Art Council
Culture at Risk CLT grant
Licence fee income
Licence recharges
Hire of education building
Shop sales
5
Bank interest
Net income
Total expenditure
Income from:
Total income
Expenditure on:
Net income before gains / (losses) on investments
Net gains / (losses) on investments
Transfers between funds
Income from charitable activities
Net income before other recognised gains and losses
Income from donations and legacies
Total funds carried forward
Net movement in funds
Total funds brought forward
Income from Investments
Total income from charitable activities
Income earned from charitable activities
Grants
Unrestricted
funds
£
10
£
27
288,245
-
288,272
283,542
Unrestricted
funds
Restricted
funds
£
-
-
-
-
-
2019
Total
funds
£
27
288,245
-
288,272
283,542
283,542 - 283,542
4,730
-
4,730
-
4,730
4,730
141,612
146,342
£
-
Restricted
funds
-
-
-
-
-
-
128,428
128,428
2020
Total
funds
£
10
4,730
-
4,730
-
4,730
4,730
270,040
274,770
2019
Total
funds
£
27
10 - 10 27
Unrestricted
funds
£
-
13,520
269,165
17,349
69
2,176
£
25,844
-
-
-
-
-
Restricted
funds
2020
Total
funds
£
25,844
13,520
269,165
17,349
69
2,176
2019
Total
funds
£
-
-
263,718
22,955
310
1,262
302,279 25,844 328,123 288,245
Unrestricted
funds
£
54
54
£
-
-
Restricted
funds
2020
Total
funds
£
54
54
2019
Total
funds
£
-
-

10

Kingsgate Workshop Trust Notes to the financial statements For the year ended 31 December 2020

6(a) Analysis of expenditure- Current year

Staff costs
Direct cost
Grants awarded
Education project
Gallery and studio cost
Residency running cost
Events Prog Management
Research & development
Support costs
Rent and rates
Insurance
Light and heat
Repair and maintenance
Travelling and subsistence
Cleaning and waste
Printing, postage and stationary
Advertising
Telephone/IT supports
Trsutee meeting expenses
Depreciation
Audit & accountancy fees
Sundry
Loan interest for the year
Bank charges and interests
Total expenditure 2020
Total expenditure 2019
Charitable
activities
£
99,801
13,020
1,121
197
15,287
1,750
1,537
10,499
13,721
21,607
15,201
281
4,404
1,167
536
10,537
50
15,074
8,966
65
13,679
1,275
249,775
283,542
2020 Total
£
99,801
13,020
1,121
197
15,287
1,750
1,537
10,499
13,721
21,607
15,201
281
4,404
1,167
536
10,537
50
15,074
8,966
65
13,679
1,275
2019 Total
£
101,542
-
8,322
2,549
25,644
10,529
5,693
11,433
13,220
26,654
15,561
2,076
8,209
3,348
1,565
5,352
390
15,167
8,817
277
15,849
1,345
249,775 283,542
283,542

Of the total expenditure, £223,931 were unrestricted (2019: £283,542) and £25,844 were restricted (2019: Nil).

11

Kingsgate Workshop Trust Notes to the financial statements For the year ended 31 December 2020

6(b) Analysis of expenditure- Prior year

Staff costs
Direct costs
Education project
Gallery and studio cost
Residency running cost
Printing sales
Events Prog Management
Research & development
Support costs
Rent and rates
Insurance
Light and heat
Repair and maintenance
Travelling and subsistence
Cleaning and waste
Printing, postage and stationary
Advertising
Telephone/IT supports
Legal and professional fees
Trsutee meeting expenses
Depreciation
Audit & accountancy fees
Sundry
Loan interest for the year
Loan interest for the year
Bank charges and interests
Total expenditure 2019
Total expenditure 2018
Charitable
activities
£
101,542
8,322
2,549
25,644
-
10,529
5,693
11,433
13,220
26,654
15,561
2,076
8,209
3,348
1,565
5,352
-
390
15,167
8,817
277
15,849
-
1,345
283,542
276,675
2019 Total
£
101,542
8,322
2,549
25,644
-
10,529
5,693
11,433
13,220
26,654
15,561
2,076
8,209
3,348
1,565
5,352
-
390
15,167
8,817
277
15,849
-
1,345
2018 Total
£
102,210
8,129
5,369
22,054
155
-
5,356
11,539
12,701
22,377
25,239
3,059
2,008
3,787
3,592
6,804
115
82
14,985
8,050
107
17,931
-
1,026
283,542 276,675
276,675

12

Kingsgate Workshop Trust Notes to the financial statements For the year ended 31 December 2020

7 Net income for the year

This is stated after charging / crediting:

This is stated after charging / crediting:
2020 2019
£ £
Independent Examiner's Fees 3,700 3,600
Depreciation 15,074 15,167

8 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Staff costs were as follows:
Social security costs
Salaries and wages
Other staff costs
Freelance staff
Pension contributions
2020
£
91,934
1,865
1,510
733
3,759
99,801
2019
£
89,934
2,798
1,497
3,873
3,440
101,542

The total employee benefits including pension contributions of the key management personnel were £21,275 (2019: £23,290).

No employees earned more than £60,000 per annum.

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2019: £nil). No charity trustee received payment for professional or other services supplied to the charity (2019: £nil).

No trustees received any payment or reimbursement of travel and subsistence costs.

9 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Charitable activity 2020
No.
7
7
2019
No.
5
5

10 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

13

Kingsgate Workshop Trust Notes to the financial statements For the year ended 31 December 2020

11 Tangible fixed assets


Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
Net book value
At the end of the year
At the start of the year
12
13
Bank loan
14
Creditors: amounts falling due after one year
Bank loans > 1 year
Debtors
Trade debtors
Other creditors
Taxation & social security
Accruals
Other creditors include the deposits £37,108 of the clients.
Creditors: amounts falling due within one year
Trade creditors
700,292
-
-
700,292
199,946
14,006
213,952
486,340
500,346
Long
Leasehold
£
23,529
699
-
24,228
18,886
1,068
-
19,954
4,274
4,643
2020
£
10,272
10,272
2020
£
1,495
3,700
39,916
6,694
43,786
95,591
2020
£
164,911
164,911
Fixtures,
fittings &
equipment
Total
£
723,821
699
-
724,520
218,832
15,074
-
233,906
490,614
504,989
2019
£
9,495
9,495
2019
£
-
3,500
37,594
13,951
43,672
98,717
2019
£
205,764
205,764

Bank loans totalling £204,827 (2019: £243,358) are secured against long leasehold property and repayble by 11 February 2025. Loan 1 has a 6.15% fiscal interest rate and the other 5.93%.

14

Kingsgate Workshop Trust Notes to the financial statements For the year ended 31 December 2020

15(a) Analysis of net assets between funds- Current year

Tangible fixed assets
Net current assets
Crediors: Amounts falling due after more than one year
Net assets at the end of the year
15(b)
Tangible fixed assets
Net current assets
Crediors: Amounts falling due after more than one year
Net assets at the end of the year
16(a) Movements in funds- Current year
£
Restricted funds:
Building fund
88,428
Structual works funds
40,000
Art Council
-
Total restricted funds
128,428
At the
start of
the year
Analysis of net assets between funds- Prior year
£
-
-
25,844
25,844
Incoming
resources
& gains
Unrestricted
Funds
£
-
224,754
-
224,754
Unrestricted
funds
£
-
146,342
-
146,342
£
-
-
(25,844)
(25,844)
Outgoing
resources &
losses
Restricted
Funds
£
490,614
(197,275)
(164,911)
128,428
Restricted
funds
£
504,989
(170,797)
(205,764)
128,428
Transfers
£
-
-
-
-
Total
Funds
£
490,614
27,479
(164,911)
353,182
Total
funds
£
504,989
(24,455)
(205,764)
274,770
£
88,428
40,000
-
At the end
of the
year
128,428

The building fund is to research and develop the existing site, including the life long learing facility. The structural works funds are for use as may be required over the coming years.

General funds
Total Unrestricted Funds
Total unrestricted funds
Total funds
146,342
146,342
274,770
302,343
302,343
328,187
(223,931)
(223,931)
(249,775)
-
-
-
224,754
224,754
353,182

15

Kingsgate Workshop Trust Notes to the financial statements For the year ended 31 December 2020

16(b) Movements in funds-Prior year

Movements in funds-Prior year
Restricted funds:
Building fund
Structual works funds
Art Council
Total restricted funds
£
88,428
40,000
-
128,428
At the start
of the year
£
-
-
-
-
Incoming
resources &
gains
£
-
-
-
-
Outgoing
resources &
losses
Transfers
£
-
-
-
-
£
88,428
40,000
-
At the end
of the year
128,428

The building fund is to research and develop the existing site, including the life long learing facility. The structural works funds are for use as may be required over the coming years.

General funds
Total Unrestricted Funds
Total unrestricted funds
Total funds
141,612
141,612
270,040
288,272
288,272
(283,542)
(283,542)
(283,542)
-
-
-
146,342
146,342
288,272 274,770

17 Operating lease commitments

At the balance sheet date, the charity had no financial commmitment under non-cancellable operating leases.

18 Pension scheme

The charity operates a defined contribution pension scheme. The charity makes contributions to the personal pensions of its employees based on a percentage of salary.

19 Related party transactions

There were no related party transactions to disclose for 2020 (2019: none).

16