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2022-03-31-accounts

Company Registration Number 04027621 Registered Charity Number 1086471

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE)

REPORT AND ACCOUNTS For the year ending 31 March 2022

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

For the year ended 31 March 2022

The Trustees, who are also Directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 March 2022.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity Name County Durham Arts In Education Agency (trading as The Forge) Charity registration number 1086471 Company registration number 04027621 Registered office The Forge, Stanley Education Centre, King Edward Viii Terrace, Stanley, County Durham, DH9 0HQ

Trustees

For the purposes of the Companies Act 2006, the Board of Trustees is the Board of Directors of the charitable company and is referred to as the Trustees throughout this report.

The Trustees of County Durham Arts In Education Agency during the period and to the date of signing this report are as follows:

Mr M Gilbey (Chair) Ms G Callaghan Mrs S Campbell Ms S Dixon Mr B Ebbatson Prof M Fleming Ms R Robson

Company Secretary Mr A Harrington Independent Examiner Mr P O’Hara FCA, Chartered Accountant, 4 Stoneyhurst Road West, Gosforth, Newcastle upon Tyne NE3 1PG

OBJECTIVES AND ACTIVITIES

Aims & Objectives

County Durham Arts In Education Agency’s charitable objects are to to foster and promote the maintenance, improvement and development of the knowledge, understanding and practice of the arts in education.

The charity aims to fulfil this by creating participatory arts projects that inspire young people to become successful, confident individuals capable of reaching their full potential and by making cultural programmes that are courageous, relevant and excellent.

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

For the year ended 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

County Durham Arts In Education Agency Ltd is a charitable company limited by guarantee, incorporated on 5 July 2000, registered in England and Wales under company number 04027621 and governed by its Articles of Association, originally registered upon incorporation, as amended by Special Resolutions dated 26/03/2001 and 23/01/2014.

The charity was registered with the Charity Commission on 3 May 2001.

The Directors of the company are also Trustees of the charity.

Eligibility for membership of the charity, and membership of the Board of Trustees, is governed by the Articles of Association. There are no restrictions in the governing document on the operation of the charity other than those imposed by general charity law.

Charitable Purpose

County Durham Arts In Education agency’s charitable objects are to foster and promote the maintenance, improvement and development of the knowledge, understanding and practice of the arts in education.

Structure and Governance

The charity currently has a Board of seven non-executive Trustees.

The Board meets a minimum of four times per year. The Executive Director is in attendance and has no voting rights. Additional committees and working groups are established to explore specific issues.

Detailed written Board reports and an agenda are prepared and circulated in advance of meetings.

Recruitment and Appointment of Board of Trustees

The minimum number of Board Members allowed is three and the maximum is 12.

Potential new Board Members are identified through a mixture of formal and informal means, including discussions and recommendations offered by Trustees, outside advisors to the organisation, peer organisations and Arts Council England as well as through a range of advertising channels

Particular emphasis is placed on identifying individuals who can fill any skills gaps within the Board.

Under the Articles of Association, at each Annual General Meeting one third of the Trustees retire by rotation, but they may offer themselves up for re-election.

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

For the year ended 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)

Recruitment and Appointment of Board of Trustees (Cont.)

As part of the Board review process, a working group was established to review our approach to Equality, Diversity and Inclusion (EDI) and an organisational policy and action plan was created.

The Board also identified the need to reflect the characteristics and diversity of the communities we serve in the programmes we develop with those communities. To achieve this, we have pledged to add new voices from the area to the Board of Trustees and also to establish working groups of service users, including teachers and educationalists and young people.

Trustee Induction and Training

New Trustees are inducted by the Chair of the Board and Director and are provided with a range of resources and publications to support their understanding of County Durham Arts In Education Agency activities, including the latest annual report and accounts, a full role description and information on current and past projects.

The organisation also holds an annual Board development day and Trustees are encouraged to take up training opportunities outside the organisation when they become available.

They are also kept informed on an ongoing basis around developments in both the arts in education and wider charity sectors via the dissemination of relevant information and newsletters from Arts Council England and the Charity Commission.

Organisational Structure

Day-to-day responsibility for the management of the organisation is delegated to an Executive Director, who is supported by a Creative Producer and a Finance and Administration Manager. Line management, supervision and appraisal is undertaken of all staff to ensure the team continues to develop their skills and working practices as part of our drive to continually to improve quality.

The Board remains heavily involved in the creation and implementation of key policy.

Key Management Personnel

The Board, who give their time freely and have received no remuneration in the year, have considered who are the Key Management Personnel (KMP) of the charity. Together with the Board, these KMP are those in charge of directing and controlling, running and operating the activities of the charity on a day-to-day basis.

The remuneration of the KMP is reviewed annually. The Trustees benchmark against pay levels of other charities and similar organisations within the sector and the region. Pay levels are set using this information together with the budget and forecast information, ensuring that the charity can afford any proposed increases. The Board then agrees any uplift to remuneration.

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

For the year ended 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)

Reserves Policy

The Trustees have reviewed the charity's needs for reserves in line with the guidance issued by the Charity Commission and have established the required optimum levels of reserves for the organisation.

The Forge often requires a long lead-in time to plan programmes and projects, working within the expected programming schedules of schools, communities and artists. The reserves policy reflects the need to provide a degree of security to support planning, and to provide confidence to stakeholders that artistic plans are soundly-based and funded.

The Trustees aim firstly to hold a level of unrestricted Reserves which enables the charity to have sufficient financial resources to meet various liabilities which would crystallise if The Forge’s funding were to be interrupted or withdrawn and/or it were unable to continue operating.

The Trustees have allocated £120,000 to cover a nine-month period to enable the organisation to meet contractual liabilities and to maintain service provision in the event of delays with receipt of funding (£105,000) or should it have to close, resulting in redundancy payments (£15,000).

In addition, the Trustees have then agreed to retain an additional allowance of £112,000 as Designated Unrestricted Funds, as follows:

To respond effectively to those opportunities within the economic environment and secure the longer-term future of the organisation will require us to change the organisation in a variety of ways. We need to build capacity and to explore new ways of working and new partnerships.

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

For the year ended 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)

Reserves Policy (Cont.)

In the short term this is likely to mean that expenditure will outstrip income.

Over three years the sum of £55,000 will be invested in a range of proactive and responsive activities (2022/23: £15,000, 2023/24: £15,000, 2024/25: £15,000).

The total reserves required by the organisation, including designated funds, are therefore £232,000.

The charity’s total unrestricted Reserves at 31 March 2022 are £237,745.

The charity’s ‘free’ unrestricted Reserves at 31 March 2022, defined as non-designated unrestricted funds, excluding the value of unrestricted Tangible Fixed Assets, are £232,293.

This policy will be reviewed by the Trustees on an annual basis as part of the charity’s budgeting processes.

Grant Making Policy

The charity does not currently engage in grant-making activity.

Fundraising Policy

The charity is required to report how it deals with fundraising from the public. The charity does not use a professional fundraiser or commercial participator to raise funds. Any monies raised direct from the public follows all guidelines set out by the Charity Commission and UK law in every respect. We respect the privacy and contact preferences of all public donors.

Investment Policy

The Forge’s cash reserves, over and above those required for day-to-day working capital, have typically been invested in a combination of a higher-rate, instant access deposit account and various fixed-term cash deposit accounts.

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

For the year ended 31 March 2022

OBJECTIVES AND ACTIVITIES

Public Benefit

The Trustees understand and have discussed the implications of the provisions of the Charities Act 2006, which state that all charities must demonstrate that they are established for public benefit, and have had due regard to the public benefit guidance issued by the Charity Commission. The Trustees believe that the charity meets both of the key principles.

There is clear evidence of a demand for our work as we continue to grow the number of school partners from County Durham and across the North East and increase the number of participants engaging in our programme. We have moved to a blended delivery model which included face to face and online delivery. We have worked with 82 schools and 167 children in the year directly through our programmes and 20,654 children indirectly through Artsmark and wider programmes. We have trained 183 teachers through CPD sessions and Artsmark.

By targeting our work using census and school data, we support those who face the most challenges in access and economic well-being. We use census data and information from the indices of deprivation (alongside DfE school data on SEND and pupil premium ratios) to focus our engagement and impact. At least 95% of the schools’ programme is in places with the least engagement, as defined by the Active People data.

This focus can also be seen in our Artsmark recruitment and in the siting of our participatory programmes. As well as extending our reach to schools new to The Forge, we continue work with schools we know, including two primary schools situated in former mining communities with pupil premium rates of 71.8% and 64.1% respectively. Our “Teaching Things Differently” long-term SEND partner school (the Dales) also serves a particularly vulnerable community of learners, where 100% have a SEN educational, health and care plan, and 66.3% of pupils on roll are designated pupil premium.

All of these benefits are clear, evidenced and relate directly to the charity’s aims. In addition, the Trustees do not consider that any significant detriment or harm flows from The Forge’s work.

Risk Management

The Trustees regularly review the major governance, operational and financial risks which the charity faces as part of its annual business planning process and confirm that systems have been established to mitigate these risks. Current circumstances have brought new risks, which the Board is actively reviewing as part of a fresh look at the place and role of the Forge in a postCOVID world.

We have a risk management strategy in place which comprises:

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

For the year ended 31 March 2022

OBJECTIVES AND ACTIVITIES (CONTINUED)

Risk Management (Cont.)

The Trustees are satisfied that appropriate financial systems and controls and employment policies and practices are in place.

The Trustees have for some years considered the key risks facing the charity and the mitigating actions taken to be as follows:

Long-term absence/resignation of Executive Director, Creative Producer or Trustees

Not achieving income targets (trusts and foundations, earned income, individual giving):

Not achieving audience targets:

Not delivering artistic excellence:

The Trustees also manage the general financial risks arising by ensuring that:

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

For the year ended 31 March 2022

ACHIEVEMENTS AND PERFORMANCE

Achievements in the Year

Teaching Things Differently

Plans for this programme over this time period were to complete all the artist-delivered workshops for the Continuing Professional Development and Learning (CPDL) element of this programme and move towards more intensive collaboration with all of our participants to co-create photographyinspired schemes of work that could be used across all settings. Due to the popularity of the identify-focused Museum of Me work delivered in the first part of the programme, with its strong focus on engaging pupils via self-portraits or portraits of friends and family and then progressing pupils into writing about their lives, we continued with this theme. Teachers and artists agreed to co-create two separate but related schemes of work called Museum of Me in the Past – with a focus on earlier childhood, ancestry and community history, and Museum of Me in the Future, with a focus on future lives, careers, employment and touching upon themes of citizenship and civic responsibility.

The schemes were completed in Summer 2021 with teachers planning to test and deliver elements of the schemes across Autumn 2021. During this test and delivery period, we managed to observe activity in two of our schools – in Woodhouse Primary School and Bede Academy. Both schools approached the delivery in different but equally valuable ways; Woodhouse used the programme to engage their wider community by creating an open event and a selling exhibition of children’s work; Bede cascaded their learning through their own school community with four teachers delivering a week-long Museum of Me programme across their year 5 and year 6 classes.

Our final sharing event was delivered in March 2022. This conference-style event was attended by participants from five of our schools, with heads and senior leaders also in attendance. Schools shared an overview of the work they had delivered, sharing examples of pupils’ creative work and the impact that the project had had on pupils and staff. A recurring theme from their feedback was the particular benefit that visual literacy and camera-based work has on SEND learners and those who struggle to access the mainstream curriculum. We have identified this observation to our funders as providing an area for possible future research.

Our Teaching Things Differently programme was strongly supported throughout by Paul Hamlyn Foundation and we were grateful for the significant extension to the programme that we were offered. We were also given opportunities to share our learning with other educationalists and culturalists through the PHF newsletter, and to members of our own national cohort of fundees, as well as to cultural leaders and school leaders from more recent funding rounds. The impact of the programme is also the focus for our Creative Producer’s doctoral thesis.

There has been strong outside interest in this CPDL programme, with schools requesting the Museum of Me Schemes of Work. We also delivered a bespoke scaled down version of the programme for Westlea Primary School in November 2021 as part of the school’s Artsmark plans.

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

For the year ended 31 March 2022

ACHIEVEMENTS AND PERFORMANCE (CONTINUED)

Achievements in the Year (Cont.)

Durham International Brass Festival

The festival, which was scheduled to take place in July, had to be postponed due to the pandemic. All available performance slots had been booked by Durham schools and were offered to them in July 2022.

Artsmark Training for Schools

We continue to play a leading role in the delivery of Artsmark, the only creative quality standard for schools and education settings, accredited by Arts Council England in the North East and beyond and have sustained 25% Artsmark penetration in this region across the year.

At the end of March 2022, we had 289 active Artsmark schools in the North East (25%) – this figure continues to represent the highest proportion of Artsmark schools across all the ACE Bridge regions. We were particularly pleased to see that our stewardship of schools has been successful and that the support we have offered to enrich and support their Artsmark journey has led to a convincing number of re-registrations (above our target figure) for the award.

Recruiting secondary schools proved more of a challenge than primaries and although we succeeded our registration targets, we did not achieve our secondary settings targets. Currently six LEA areas have a minimum of 20% of their secondary schools active Artsmark schools against a target of eight. Overall, however, as the 25% penetration shows, both our recruitment and our retention rate remain high compared with other Bridge areas. School evaluations of our training and support packages have also been hugely positive with participants regularly awarding us full marks for content and delivery.

Training for Emerging Artists and Vulnerable Young People

In Autumn 2021, The Forge successfully delivered a new young artist training course for vulnerable young people in County Durham. This new “Working in the Arts” training programme was developed in partnership with DurhamWorks and offered young people from County Durham, aged 16-24 and designated as Not in Employment, Education or Training, the opportunity to train with an experienced professional participatory artist to develop the skills needed to gain arts industry employment. Two pathways were created for this pilot: a higher pathway for those with college or university experience of the arts, and an access digital arts pathway for those at an earlier stage of their careers. Participants on the higher course worked with a range of different artists to support them in developing their participatory arts skills, with a focus on working in the participatory arts sector. We were delighted to report that 75% of participants on this pathway completed their training and then gained employment in the arts or education sectors. Equally positive was the completion rate on the access course where 100% of participants completed their studies, gained Arts Awards and registered their interest in further arts training. Following the success of these two bespoke programmes, DurhamWorks have now offered us a further contract to deliver further artsbased training for their most vulnerable NEET clients, including their DW3 clients who are those who experience exceptional challenges and require the most support.

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

For the year ended 31 March 2022

ACHIEVEMENTS AND PERFORMANCE (CONTINUED)

Achievements in the Year (Cont.)

Participatory Programmes for Children, Young People and their Families

I Come from a Place – identity focused school projects

As part of our Northern Writes and Defiant Voices programmes, we designed and delivered a new creative writing and animation project which was offered to all Stanley primary schools. “I Come from a Place” took its inspiration from the community-focused writings of Tommy Armstrong and gave Stanley children the opportunity to reflect on their own identities, lives and communities – and to celebrate the richness of their lives through a series of spoken word poems and short animated films. The project was delivered by creative writers Katharine Goda and Bob Beagrie and film animator Sheryl Jenkins.

We also delivered an extended Arts Award focused version of this programme in partnership with Consett Academy and Durham Records Office. In this extended version, 19 year 9 pupils from Consett Academy were given the opportunity to develop their own unique creative responses to the “I Come from a Place” brief, using archival footage and documents from Durham Records Office as the starting point for their individual reflections. They were then able to work with poet Bob Beagrie and animator Sheryl Jenkins who helped them to develop spoken word and animated responses to capture and share their views about the place they call home. All partners were delighted that all 19 pupils succeeded in gaining their Bronze Arts Awards for their work.

Partnership Investment Programme

The Forge has been working in close partnership with Culture Bridge North East, Durham County Council and other cultural partners to devise and deliver a two-year culture-led mental health wellbeing programme across three schools in Stanley, one of the most deprived areas in the County. The aim of the programme is to develop an innovative culturally led solution to some of the mental health and wellbeing challenges facing young people in schools that is scalable, replicable and sustainable. During 2021-2022, we succeeded in developing a support infrastructure for County Durham Cultural Education Partnership (CDCEP) going forward and appointed an artistlead who will act as the Creative Producer for the programme.

We will now work with that lead to:

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

For the year ended 31 March 2022

ACHIEVEMENTS AND PERFORMANCE (CONTINUED)

Achievements in the Year (Cont.)

Supporting the Development of Durham’s Cultural Infrastructure

Executive Director Tony Harrington has been very active in his role as Chair of Culture Durham in leading the Durham City of Culture Bid for 2025. This was a transformational opportunity for the cultural sector in Durham and the North East. Working in partnership with Durham County Council and Durham University, an expression of interest was submitted in July 2021 and the County was shortlisted in September 2021. Durham reached the final four and, although not successful, there is a momentum and commitment from all partners to create an ambitious strategy to develop the infrastructure for creatives in the County for the next ten years.

Financial Review

The out-turn for the year is an unrestricted deficit of £(7,739) (2021: Surplus £2,376). The deficit will be deducted from Unrestricted Reserves, leaving a balance on Unrestricted Funds, including Designated Funds, at 31 March 2022 of £237,745.

In the course of 2021/22, The Forge Officers and Board continued to work hard to develop the sustainability of the organisation. This included short, mid and long-term planning and financial modelling. We have a two-pronged approach to income generation which includes:

We were proactively responding to pressure on school budgets and strengthening our resilience through;

Although the pandemic raised risks for the organisation financially, operationally and creatively, we continued to deliver well against the majority of our targets and anticipate that we will continue to operate effectively in this changing climate. Due to our sound financial management and healthy reserves, we were able to continue to trade without furloughing staff or seeking Arts Council Cultural Recovery Fund support. This was also due to low running costs and our flexibility to respond to change and innovate new approaches in programme design and delivery. We are confident that this adaptability will stand us in good stead in facing the unpredictable times ahead.

The Finance and HR Sub-Group takes a hands-on approach to resilience and feeds back to the full Board on a quarterly basis. Arts accountancy specialist Pete O’Hara has continued in his role as a financial advisor to the Board.

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

For the year ended 31 March 2022

PLANS FOR FUTURE PERIODS

The Charity continues to operate in a tough environment caused by a combination of economic and fiscal pressures that had been making life difficult for schools and other agencies which work with children and young people. The pandemic has heightened the pressures and further impoverished the towns and communities with which we work in every sense: resources are stretched to the limit and the world in which children, their families and their communities live has narrowed.

The evidence is that things will be even more challenging as we start to emerge from the pandemic. It is this landscape that must shape and drive our programme over the next five years. Whilst our overall Strategic Objectives remain, we are realistic and pragmatic in our approach to creating and delivering activities that fulfil the Strategic Objectives whilst also recovering from a period of closedown and restricted programming.

We have a pivotal place in contributing to social recovery post Covid-19 within the underrepresented communities in the County. We will work with Durham County Council, Stanley and Derwentside Area Action Partnerships, voluntary and community sector partners, school networks, community groups and other partners in the region to sustain and expand this approach to school improvement, arts and cultural entitlement and community development.

We view this coming year as a period of review and transition for the organisation.

We have built a regional and national reputation for developing exemplary participatory arts practice with young people, but we are not complacent. We will look at our business model, governance, relationship with artists, role within communities and creative programme, as well as delivering outstanding projects with and for schools and communities. We believe that the arts have a unique role to play in young people’s lives, helping them to engage successfully in their communities and reach their full potential. We believe that embedded organisations like The Forge are fundamental to the ambition in Let’s Create’ to “make a nation, by 2030, that experiences universal levels of cultural participation in all parts of our diverse country”.

As part of the process of creating a new business plan for the period 2022-2023 the Board committed the organisation to the following vision statement.

Vision

To create outstanding participatory arts projects with diverse communities, with a particular focus on children and young people (CYP) within areas of socio-economic deprivation; we will extend horizons, build individual and collective confidence, and help people see and achieve their creative potential.

Mission

To maintain our existing activities and develop new work informed by careful reflection with our partner organisations, shaped by accurate and up-to-date data, pertinent and up-to-date research, and by observed and informed evidence of the need and the opportunity to deliver.

In this way we will extend our reach, maximise our impact, and ensure resources are used to best effect.

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT

For the year ended 31 March 2022

PLANS FOR FUTURE PERIODS (CONTINUED)

Strategic Objectives for 2022 - 2023

To achieve this, we will:

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT For the year ended 31 March 2022 RESPONSIBILITIES OF THE TRUSTEES The Trustees (who are also the Directors of County Durham Arts In Education Agency for the purposes of company law) are responsible for preparing the Trustees, Annual Report and the financial statemerrts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Ac¢ounting practi￿). Company law requires ￿ Trustees to prepare financial statements 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 expendrture, of the charitable company for that period. In preparing these finanaal statemerrts, the Tnjstees are required to: select suitable accountsng policies and then apply them coroistently: observe the Meth￿￿S aThJ principles in the Charities SORP., make judgments and estimates that are reasonable and prudent., state whether applicable UK AcGounts"ng Standards have been followed, subject to any material departures disclosed and explained in the finan￿al statements, prepare the financial stslements on the going con￿rn basis unless it is inappropriate to presume that the charitable company will ￿ntInUe in operation. The Trustees are responsible for keeping proper accounting rttords that disclose with reasonable accuracy at any time the financial position of the Charitab￿ company and enable them to ensure that the financial statements comply wrth the Companies Act 2CNJ6. The Trustees are also responsible for safeguarding the assets of the charitable company and hence for taknng reasonab steps for the prevention and detection of fraud and other irregulants'es. In preparing this report. Ihe Trustees have taken advantage of the small companies exemptions provided by Section 415A of the Companies Act 2006. by er of the Trustees ilbey irrrrustse Company Reglstratlon Numbgr 04027621 27 July 2022 15

INDEPENDENT EXAMINER'S REPORT TO THE MEMBERS ON THE UNAUDITED ACCOUNTS OF COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE FOR THE YEAR ENDED 31 MARCH 2022 I hereby report to the Trusteeslmembers of County Durham Arts In Education Agency (Charity Registration Number 1086471) on the accounts for the year ended 31 March 2022 set out on pages 17 to 29. Responslbllltles and basls of report As the charty's trustees (and also its directors for the purposes of company law), you are responsible for the preparation of the accounts in accordan￿ wrth the requirements of the Companies Act 20C6 Ilhe 2006 Act,). Having satisfied myself that the accounts of the Company are not required to be audtled under Part 16 of the 2006 Act and are eligible for independent examinatson. I report in resFect of my examination of your chaiity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 AGt'). In carrying OLrt my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) ofthe 2011 Ad. Indep8nd8nt Examinerfs Slatement sin￿ the Company's gross income ex￿eded £250,000. your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because I am a member of the Instttute of Chartered Accountant in England and Wales, which is one of the listed bodies. I have completed my examinab'on. I confinn that no matter5 have come to my attention in connection wrth the examination giving me cause to believe" accounting records were not kept in rest*d of the Company as required by sectFon 386 of the 2006 Act,. or 2. the accounts do not accord with those records,. or 3. the accounts do not comply vthh the accounting requirements of section 396 of the 2006 Act other than any requiremerrt that the accounts gtve a knie and fair view, which is not a matter considered as part of an independent examination" or 4. the arKounts have not been prepared in accordance with the methods or principles of the Statement of Recommended Practice for accounting and repo￿ng by chartties (applicable to charities preparing their accounts in accordan￿ with the Finanual reporting Standard applicable in the UK arKI ReputAiG of Ireland (FRS102)). I have no concems and have come across no other matters in connection wrth the examination to which attention should b& drabvn in this port in order to enable a proper understanding of the accounts to be reached. Pete O'Hara. FCA, Chartered Accountant Fellow of the Institute of Chartered Accountsnts in England & Wales 4 Stoneyhurst Road West, Gosforth. Newcastle upon Tyne NE3 1 PG 27 Juty 2022 16

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2022

Note
Income
Income from Investments
3
Income from Donations, Grants &
Legacies
4
Income from Charitable Activities
5
Total Income
Expenditure
Expenditure on Raising Funds
6
Expenditure on Charitable Activities
7
Total Expenditure
Net Income/(Expenditure)
Balance brought forward at 1 April
Balance carried forward at 31
March
13		 Unrestricted
Funds
Restricted
Funds
Total
2022
Total
2021
£
£
£
£
1,285
-
1,285
2,460
22,975
28,000
50,975
90,223
72,854
99,042
171,896
40,316
97,114
127,042
224,156
132,999
31,995
-
31,995
30,656
72,858
108,143
181,001
122,743
104,853
108,143
212,996
153,399
(7,739)
18,899
11,160
(20,400)
245,484
65,153
310,637
331,037
£237,745
£84,052
£321,797
£310,637

The notes on pages 19 to 29 form part of the financial statements.

All of the activities of the company are classed as continuing.

The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.

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COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET/STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2022

Notes
Fixed Assets
Tangible Fixed Assets
10
Current Assets
Debtors
11
Cash At Bank & In Hand
Creditors – Amounts Falling Due Within 1 Year
12
Net Current Assets/(Liabilities)
Total Net Assets
13
Represented by:
Unrestricted General Funds
14
Unrestricted Designated Funds
14
Restricted Funds
14		 2022
2021
£
£
31,720
4,630
4,741
18,252
331,826
315,108
336,567
333,360
(46,490)
(27,353)
290,077
306,007
£321,797
£310,637
102,745
110,484
135,000
135,000
84,052
65,153
£321,797
£310,637

The notes on pages 19 to 29 form part of the financial statements.

The Trustees are satisfied that for the year ended 31 March 2022 the charity was entitled to exemption under section 477(2) of the Companies Act 2006.

The Trustees also confirm that the Members have not required the charity to obtain an audit in accordance with section 476 of the Companies Act 2006

The Trustees acknowledge their responsibilities for:

(i) ensuring that the charity keeps adequate accounting records which comply with section 386 of the Act, and

(ii) preparing financial statements which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of its profit or loss for the financial year in accordance with the requirements of section 393, and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to the charity.

These financial statements were approved and signed by a Member of the Board of Trustees on 27 July 2022.

M Gilbey Trustee Company Registration Number 04027621

18

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting Policies

Charity Information

County Durham Arts In Education is a private company, limited by guarantee, incorporated in England and Wales. The registered office is The Forge, Stanley Education Centre, King Edward Viii Terrace, Stanley, County Durham, DH9 0HQ.

The charity is a public benefit entity.

Basis of Accounting

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 – 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006 and the Statement of Recommended Practice (Charities SORP FRS 102) "Accounting and Reporting by Charities" and the Charities Act 2011.

The financial statements have been prepared on the historical cost basis, modified to include certain financial instruments at fair value.

Advantage has been taken of the provisions in the SORP for Charities applying FRS 102 Update Bulletin 2 not to prepare a statement of cashflows.

The financial statements are prepared in sterling, which is the functional currency of the charity.

Income

All income is included in the Statement of Financial Activities (SOFA) when there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Such income is only deferred when the donor or funder has specified that the grant or donation can only be used in future accounting periods or where the donor or funder has imposed conditions which must be met before the charity has unconditional entitlement.

Investment income, including interest on funds held on deposit, is recognised on a receivable basis.

19

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting Policies (Continued)

Expenditure

All expenditure is accounted for on an accruals basis and is recognised when a liability is incurred.

Pensions

The charity contributes to two pension schemes; one is a multi-employer defined benefit final salary scheme and the other is a defined contribution scheme. Further details can be found in Note 9.

The assets of the multi-employer scheme are held separately from those of the company in a separately administered fund. However, it is not possible to identify the charity’s specific share of the underlying assets and liabilities. Consequently, the scheme has been accounted for as if it were a defined contribution scheme; and in accordance with FRS17 the costs of the scheme are charged to the Statement of Financial Activities.

For the defined contribution scheme the amount charged to the Statement of Financial Activities in respect of pension costs is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Tangible Fixed Assets and Depreciation

Depreciation is provided on any fixed assets at rates calculated to write off the assets over their remaining useful lives as follows:

Furniture, Fittings, IT & Office Equipment - 25% straight line

A full year’s depreciation charge is applied in the year of acquisition and no charge is made in the year of disposal.

20

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting Policies (Continued)

Financial Instruments

The charity only has financial assets and liabilities of a kind which qualify as basic financial instruments. Such instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Fund Accounting

General Funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Designated Funds comprise unrestricted funds set aside by the Trustees for a specific purpose.

Restricted Funds reflect income received which a funder or donor requires must be spent on a particular purpose or where funds have been raised for a specific purpose. Such income and associated expenditure is shown as Restricted in the Statement of Financial Activities, whilst any unspent balances at the year-end are carried forward as Restricted Funds.

Taxation

County Durham Arts In Education Agency meets the definition required of a charitable company for UK Corporation Tax purposes. Consequently, the company is potentially exempt from taxation in respect of income or capital gains to the extent that such income or gains are applied exclusively for charitable purposes.

2. Going Concern

The Trustees have reviewed the circumstances of the charity and consider that adequate resources continue to be available to fund the activities of the charity for the foreseeable future. The Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.

21

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

3. Income from Investments

Unrestricted Restricted 2022 2021
Funds Funds
£ £ £ £
Bank Interest Receivable 1,285 - 1,285 2,460
£1,285 £- £1,285 £2,460
The 2021 total of £2,460 was wholly attributable to Unrestricted Funds.
4. Income from Donations, Grants & Legacies
Unrestricted Restricted 2022 2021
Funds Funds
£ £ £ £
Donations - - - 498
Grant Income
Arts Council England – NPO 58,554 - 58,554 58,554
Children In Need - 47,152 47,152 -
Digital Drive County Durham Fund - - - 1,953
Durham CC – CBNE Partnership - 20,000 20,000 -
Durham CC – Everyday Heroes; 800 - 800 -
Everyday Lives
Durham CC/Stanley AAP – Everyday - 21,890 21,890 -
Heroes; Everyday Lives
Durham County Council Adult & 13,500 - 13,500 13,500
Community Services
Newcastle CC – CBNE Partnership - 10,000 10,000 -
Paul Hamlyn Foundation – Teaching - - - 15,718
Things Differently
£72,854 £99,042 £171,896 £90,223

Of the 2021 total of £90,223, £72,552 was attributable to Unrestricted Funds and £17,671 to Restricted Funds.

22

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

5. Income from Charitable Activities

Arts Award
Artsmark Development Days
Critical Friend Income
DurhamWorks Fees
Education Programme
Speaking Fees		 Unrestricted
Funds
£
Restricted
Funds
£
2022
£
2021
£
475
-
475
7,643
-
28,000
28,000
28,173
3,600
-
3,600
4,500
16,000
-
16,000
-
2,000
-
2,000
-
900
-
900
-
£22,975
£28,000
£50,975
£40,316

Of the 2021 total of £40,316, £12,316 was attributable to Unrestricted Funds and £28,000 to Restricted Funds.

6. Expenditure on Raising Funds

Salaries & On Costs Unrestricted
Funds
£
Restricted
Funds
£
2022
£
2021
£
31,995
-
31,995
30,656
£31,995
£-
£31,995
£30,656

The 2021 total of £30,656 was wholly attributable to Unrestricted Funds.

23

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

7. Expenditure on Charitable Activities

Artistic Production/Project Costs
Programme Costs
Salaries & On Costs
Support Costs
Premises Costs
Administration & Office Costs
Bad Debts
Depreciation
Governance Costs
Independent Examiner’s Fees
Other Finance/Accountancy Fees
Board Development
Governance Meeting Costs & Expenses		 Unrestricted
Funds
£
Restricted
Funds
£
Total
2022
£
Total
2021
£
9,228
46,062
55,290
23,630
44,640
51,344
95,984
91,969
9,040
-
9,040
-
4,040
1,981
6,021
4,478
-
-
-
(800)
2,731
8,756
11,487
1,845
1,200
-
1,200
1,200
470
-
470
261
1,000
-
1,000
-
509
-
509
160
£72,858
£108,143
£181,001 £122,743

Of the 2021 total of £122,743, £54,296 was attributable to Unrestricted Funds and £68,447 to Restricted Funds.

8. Net Income/(Expenditure)

Net income/(expenditure) is stated after charging/(crediting):
Independent Examiner’s Fees – current year
Depreciation of owned Tangible Fixed Assets		 2022
£
2021
£
1,200
1,200
11,487
1,845

24

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

9. Staff Costs & Trustees’ Remuneration

Gross Salary Costs
Employer’s National Insurance
Employer’s Pension Contributions		 2022
£
2021
£
101,838
97,752
6,294
5,724
19,847
19,149
£127,979
£122,625

No employee received remuneration of more than £60,000 during the year (2021 - Nil).

The average number of staff employed during the year, calculated as full-time equivalents, was as follows:

equivalents, was as follows:
Fundraising
Artistic Production and Support		 2022
No.
2021
No.
1
1
2
2
3
3

Key Management Personnel are defined by the organisation as the Trustees.

No remuneration has been paid to any Trustees/Directors in the year (2021: £Nil).

No reimbursement was made in the year to Trustees for Travel and Subsistence expenses incurred in respect of their attendance at meetings of the charity (2021: £Nil).

Pension benefits for senior staff are provided through Durham County Council Pension Fund, which is a defined benefit scheme. The assets of the scheme are held separately from those of the company in a separately administered fund. In the year to 31 March 2022 County Durham Arts In Education Agency made an employer's contribution of 20.5% of pensionable pay.

Pension benefits for other staff are provided through a Group Personal Pension Scheme, which is a defined contribution scheme. The assets of the scheme are held separately from those of the company in a separately administered fund. In the year to 31 March 2022 County Durham Arts In Education Agency made an employer's contribution of 3% of pensionable pay, provided that the employee made a minimum contribution of 5%.

These amounts are paid over to the scheme on a monthly basis.

Contributions of £665 were outstanding at 31 March 2022 (2021: £627).

25

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

10. Tangible Fixed Assets

10.
Tangible Fixed Assets
Cost
At 1 April 2021
Additions in year
Disposals
At 31 March 2022
Accumulated Depreciation
At 1 April 2021
Charge for year
Disposals
At 31 March 2022
Net Book Value
At 31 March 2022
At 1 April 2021
11.
Debtors
Trade Debtors
Other Debtors
Prepayments
Accrued Income
12.
Creditors – Amounts Falling Due Within 1 Year
Trade Creditors
Other Creditors
Income Received In Advance
Other Taxes & Social Security Costs
Accruals		 IT & Office
Equipment
£
Total
£
15,721
15,721
38,577
38,577
(8,348)
(8,348)
45,950
45,950
11,091
11,091
11,487
11,487
(8,348)
(8,348)
14,230
14,230
£31,720
£31,720
£4,630
£4,630
2022
£
2021
£
2,275
8,503
1,846
50
620
8,012
-
1,687
£4,741
£18,252
2022
£
2021
£
29,080
24,422
665
786
6,000
-
845
729
9,900
1,416
£46,490
£27,353

26

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

13. Analysis of Net Assets between Funds

Fixed Assets
Debtors
Cash at Bank and In Hand
Creditors – Amounts Due Within 1 Year
Analysis of Charitable Funds
Unrestricted Funds
General Funds
Designated Funds
Project Fund
COVID-19 Recovery Fund
Strategic Development Fund
Restricted Funds
Artsmark - CBNE
Children In Need
Durham CC/Stanley AAP – Everyday
Heroes; Everyday Lives
Durham CC / Newcastle CC – CBNE
Partnership
Defiant Voices - NDA Poetry
Defiant Voices - Sacred Heart/Kenton
Northern Writes Animation 2
Teaching Things Differently - PHF
Teaching Tool
Total Restricted Funds
Total Funds		 Unrestricted
Funds
Restricted
Funds
Total
2022
Total
2021
£
£
£
£
5,452
26,268
31,720
4,630
4,741
-
4,741
18,252
268,337
63,489
331,826
315,108

(40,785)
(5,705)
(46,490)
(27,353)
£237,745
£84,052
£321,797
£310,637
Fund at 1
April 2021
£
Incoming
Resources
in Year
£
Resources
Expended/
Transfers
in Year
£
Fund at 31
March 2022
£
110,484
97,114
(81,853)
125,745
80,000
-
(13,000)
67,000
55,000
-
(55,000)
-
-
-
45,000
45,000
245,484
97,114
(104,853)
237,745
-
28,000
(28,000)
-
-
47,152
(20,884)
26,268
-
21,890
(1,000)
20,890
-
30,000
(4,107)
25,893
3,800
-
(3,800)
-
3,382
-
(3,382)
-
8,000
-
(6,499)
1,501
48,471
-
(40,471)
8,000
1,500
-
-
1,500
65,153
127,042
(108,143)
84,052
£310,637
£224,156
£(212,996)
£321,797

14. Analysis of Charitable Funds

27

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

14. Analysis of Charitable Funds (Cont.)

Name of Designated Fund Description, Nature & Purpose of the Designated Fund Project Fund Towards the cost of specific project initiatives COVID-19 Recovery Fund Towards the cost of a range of initiatives to renew the organisation’s focus and operational priorities, arising from the impact of the pandemic Strategic Development Fund Towards the cost of building capacity and exploring new ways of working and new partnerships Name of Restricted Fund Description, Nature & Purpose of the Restricted Fund Children In Need Towards the cost of equipment for use with Children & Young People Durham CC/Stanley AAP – Everyday Towards the cost of Everyday Heroes; Everyday Heroes; Everyday Lives Lives Newcastle CC/Durham CC/Culture Towards the cost of a culture-led mental health Bridge NE Partnership wellbeing programme Defiant Voices - NDA Poetry - Towards the cost of Defiant Voices - NDA Poetry Durham Community Foundation Defiant Voices - Sacred Heart/Kenton Towards the cost of Defiant Voices - Sacred Poetry - Community Foundation Heart/Kenton Poetry project Northern Writes Animation 2 - Durham Towards the cost of Northern Writes Animation 2 County Council Teaching Things Differently – Paul Towards the cost of Teaching Things Differently Hamlyn Foundation Teaching Tool - Community Towards the cost of Teaching Tools Foundation

28

COUNTY DURHAM ARTS IN EDUCATION AGENCY TRADING AS THE FORGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

15. Related Party Transactions

The charity has a close working relationship with Arts Council England which is a registered charity and has provided significant project funding which enables the charity to carry out its charitable objectives. In total, grant funding of £57,496 (2021: £57,496) from Arts Council England was recognised in the year.

At 31 March 2022, Nil was owing to County Durham Arts In Education Agency from Arts Council England (31 March 2021: £Nil).

16. Taxation

The company is a registered charity and no provision is considered necessary for taxation.

17. Financial Commitments

No material financial commitments have been made in respect of future financial periods.

18. Company Limited by Guarantee

The charity is incorporated under the Companies Act 1985 and is limited by guarantee, each member having undertaken to contribute such amounts not exceeding £1 as may be required in the event of the company being wound up whilst he or she is still a member or within one year thereafter.

There are currently 7 members of the company (2021 - 7 members).

29