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2023-03-31-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 2023

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

For the year ended 31 March 2023

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 2023.

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 Resigned 1 December 2022 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 2023

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 six non-executive Trustees.

The Board meets a minimum of four times per year. The Executive Director is in attendance but 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.

In the past, potential new Board Members were 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.

We are currently in a phase of actively looking for new Board Members. To that end we have advertised the role on our website and though a range of other communication channels, in order to spread the net widely and attract potential Trustees from across the community. This process is ongoing, and we are working to an open-ended timescale, because we intend to identify and embed new Board Members over time. Particular emphasis is placed on identifying individuals who can fill any skills gaps within 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 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)

Recruitment and Appointment of Board of Trustees (Continued)

Under the original 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. This principle is currently under review as we refresh and renew our governing documents.

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, in addition to the current recruitment exercise, we plan to establish working groups of service users, including teachers, educationalists and young people.

Trustee Induction and Training

New Trustees are inducted by the Chair of the Board and Executive Director and are provided with a range of resources and publications to support their understanding of The Forge’s activities, including the latest annual report and accounts, a full role description and information on current and past projects.

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

Trustees 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 2023

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 £134,000 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 (£29,000).

In addition, the Trustees have then agreed to retain an additional allowance of £85,000 as Designated Unrestricted Funds, as follows:

The total reserves required by the organisation, including designated funds, are therefore £219,000.

The charity’s total unrestricted Reserves at 31 March 2023 are £221,735. The charity’s ‘free’ unrestricted Reserves at 31 March 2023, defined as non-designated unrestricted funds, excluding the value of unrestricted Tangible Fixed Assets, are £219,015.

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

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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 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)

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.

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 184 schools and 424 children in the year directly through our programmes and 55,200 children indirectly through Artsmark and wider programmes. We have trained 141 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.

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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 2023

OBJECTIVES AND ACTIVITIES (Continued)

Public Benefit (Cont.)

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 to work with schools we know, particularly those serving North Durham’s former mining communities. We have continued our partnership with DurhamWorks, developing programmes for young people not in Employment, Education or Training (NEET), with a specific focus on supporting those facing additional challenges as a result of SEND related learning barriers, or specific mental health issues. We have also continued to collaborate with our long-term SEND partner school (The Dales), successfully applying for further Paul Hamlyn Foundation (PHF) funding to enable us to continue our photography-based research and intervention programmes.

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:

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):

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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 2023

OBJECTIVES AND ACTIVITIES (Continued)

Risk Management (Continued)

Not achieving audience targets:

Not delivering artistic excellence:

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

ACHIEVEMENTS AND PERFORMANCE

Achievements in the Year

Durham International Brass Festival

The 2022 BRASS Education Festival ran from Tuesday 12 July to Friday 15 July 2022 with eight bands visiting 56 schools and 11,443 pupils. The commissioning organisation Durham County Council were delighted with the sold-out programme.

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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 2023

ACHIEVEMENTS AND PERFORMANCE (Continued)

Achievements in the Year (Cont.)

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 24% Artsmark penetration in this region across the year.

At the end of March 2023, we had 280 active Artsmark schools in the North East (24%) – 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 targeted recruitment of new schools was successful, resulting in us surpassing our recruitment target for 2022-2023.

The percentage of secondary schools taking up Artsmark has improved on our previous year’s figures, with seven LEA areas now having a minimum of 20% of their secondary schools active Artsmark schools. School evaluations of our online training and support packages continue to be hugely positive with participants regularly awarding us full marks for content and delivery.

Training for Emerging Artists and Vulnerable Young People

In 2022-2023, The Forge successfully delivered the second of our young artist training courses for vulnerable young people in County Durham. Delivered in partnership with DurhamWorks, this second “Working in the Arts” training programme offered young people from County Durham, aged 16-24 and designated as NEET, the opportunity to train with an experienced professional participatory artist to develop the skills needed to gain arts industry employment. Two differentiated programmes were delivered: one for those with additional SEND needs (DurhamWorks3 programme), the other for those NEET learners without these additional challenges (DurhamDirections programme). Bronze Arts Award training and accreditations were offered to all those on our DW3 programme with a 50% take up. As of March 2023, 80% of students have completed their training.

Participatory Programmes for Children, Young People and their Families

Everyday Heroes Everyday Lives

As part of our work funded by Stanley Area Action Partnership, we developed a large-scale photography exhibition and participatory school programme to celebrate some of Stanley’s ‘everyday heroes’. Inspired by the legacy of the pitman poet, Tommy Armstrong, The Forge commissioned renowned photographer Madeleine Waller to celebrate exceptional contributors to Stanley’s community (adults and children) through an exhibition on the outside of the Old Board School on Stanley Front Street. As part of this programme, we delivered singing workshops with children from Bloemfontein Primary School and St Joseph’s Catholic Primary School, teaching the children Tommy Armstrong songs which they sang at the launch event. Animated films, celebrating pride of place, which we developed with primary partners, were also shared at the launch event, bringing together pupils, their families and the wider community. A further workshop, focusing on identity, was delivered by photographer Madeleine Waller to an LGBTQi+ youth group in Stanley as part of the Everyday Heroes celebrations.

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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 2023

ACHIEVEMENTS AND PERFORMANCE (Continued)

Achievements in the Year (Continued)

Creative Schools

We were commissioned by Culture Bridge North East to deliver a cultural leadership training programme for schools that focused on improving a range of identified outcomes for children, including developing pupils’ creative confidence and improving their mental health and well-being. Working with five North East school teachers, we supported them to plan, develop, manage and evaluate their own targeted arts interventions in school and then to share their learning from the programme with other artists, educators and cultural organisations via a commissioned film and a school sharing event.

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 2022-2023, we have developed creative programmes in three schools, established a research framework, and continued to provide a support infrastructure for County Durham Cultural Education Partnership (CDCEP).

Sustainable Development Goals – a Durham Cultural Audit

We participated in an innovative programme with our Durham University partner that trialled a “Shared Regional Approach for the Collection, Analysis, and Sharing of the Social and Economic impacts of Cultural and Natural Heritage in County Durham”. Focusing on Sustainable Development Goals (SDG), this project examined whether the SDGs could be used to recognise and frame impacts in arts and cultural organisations across County Durham, showcasing the ways in which we recognise, record, and report impact. Data produced through our engagement with the project will enable us to reflect on our progress against identified SDG, amending practice where necessary.

Supporting the Development of Durham’s Cultural Infrastructure

Executive Director Tony Harrington has continued to Chair Culture Durham and secured the funding to initiate a review of the Partnership. This was an extensive consultation and the outcome will underpin future direction and activity of the Partnership for the next three years.

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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 2023

ACHIEVEMENTS AND PERFORMANCE (Continued)

Achievements in the Year (Continued)

Financial Review

The out-turn for the year is an unrestricted deficit of £(16,010) (2022: Surplus £7,739). The deficit will be deducted from Unrestricted Reserves, leaving a balance on Unrestricted Funds, including Designated Funds, at 31 March 2023 of £221,735.

In the course of 2022/23, 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;

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.

PLANS FOR FUTURE PERIODS

This year the organisation secured National Portfolio Organisation funding from Arts Council England for a further three years. We outlined a vision for 2023-26 that signals a new period of ambition and commitment for the organisation. As part of the process, we undertook an organisational review with our Board, service users and stakeholders to develop a Theory of Change to improve creative and cultural opportunities for children and their families in County Durham’s most left behind areas. This model has been informed by our contextual understanding of the region’s needs and is informed by the Arts Council’s Let’s Create strategy.

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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 2023

PLANS FOR FUTURE PERIODS (Continued)

We outlined five strategic goals:

We will achieve these goals through research-informed, data-driven programmes that can support, engage and inspire young people, and address needs identified by the CYP themselves and by the agencies who work with CYP including schools, youth clubs, PRUs, organisations working with NEETs. These programmes will enrich young people’s cultural capital, extend their horizons, develop their creativity, support their personal and academic development and engage their criticality. Two programmes will also identify and remove barriers that prevent working class young people from accessing careers in the arts.

These ambitions will be achieved by strengthening our existing relationships with Durham, Newcastle and Northumbria Universities so that the design of our participatory programmes is informed by rigorous, peer-reviewed research. We will ensure that our programmes respond to local data about health and well-being, school data relating to absences and pupil premium populations, and rich narrative data supplied by our school and community networks. Direct consultation with local young people through our new Youth Forum, and indirectly through mediated discussions involving schools, teachers and youth-worker channels, will ensure that the views of young people strongly influence our work. We will target participatory programmes using Insight information from Durham County Council, www.gov.uk school data on absences and pupil populations, and knowledge gained from our peer partners in schools and the voluntary sector to help us identify those most at risk. This knowledge base will also help us evaluate the impact of our work using the most appropriate context-sensitive evaluation frameworks.

Our training programmes for teachers, artists and other cultural providers will continue to be informed by extant research (including our own research and the Durham Commission report), by DfE guidelines, by ACE’s Quality Principles, by our previous experience of working on the Artsmark programme here in the North East, and by our Creative Producer’s current doctoral research into the impact of arts-based training on teacher pedagogy.

Building on our five years of learning from our Paul Hamlyn Foundation photography and writing based programmes, we will establish The Forge’s new Studio and Mobile Studio. These will enable us to deliver photography, animation and film-making activities to groups of young people across a range of settings. We will also build upon our long experience of other art forms including creative writing, performance, visual arts and music to co-create a wide range of in-school projects.

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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 2023

PLANS FOR FUTURE PERIODS (Continued)

Our activity will be delivered across these strategic areas:

1. Creative Programmes in Schools:

We will develop and deliver inspirational imaginative co-devised artist led programmes to enrich the lives of CYP and communities in Durham with a hyper-local focus on the three Left Behind Neighbourhoods in North Durham. The first step in this journey will be a photography-based project with schools in Stanley, Craghead/South Moor and Annfield Plain. This will be informed by the emotional well-being and mental health needs identified by our school partners. A new SEND focused project will be co-created with our artists, staff and pupils from the two Northumberland Dales schools (based in Ashington and Blyth). This three-year programme will build on our longstanding relationship with these partners and is in response to a rise in autistic pupils on school rolls. We will focus on how photography and cameras can be used to help autistic children and children who lack fine motor skills access more equitable ways of learning, communicating and creating. In years two and three we will disseminate our learning to other SEND settings through a range of CPD events. In consultation with DCC early years advisors, early years professionals, artists and infant reception class staff, we will devise a new early years intervention programme in Stanley, exploring how arts engagement (music, movement and mark-making) supports children’s communication and early language skills. This research will feed into early years programming and delivery in years 2 and 3.

2. Improve Teaching for Creativity in Schools:

Over the next three years we will cascade the learning from our five years of PHF programmes to educationalists and cultural providers from County Durham and beyond. We will also share the research from our SEND focused programmes to other SEND and mainstream settings, focusing on the use of the camera as a “levelling up” tool within the curriculum. This will be designed and delivered in consultation with SEND teachers, artists, and the young autistic students themselves. We will continue to act as consultants and delivery partners to schools in the North East who are looking to embed creative practice and teaching for creativity. This work will continue to advocate for the importance of “creative chaos” and “messy play” alongside development of arts skills and will enhance schools’ understanding of how these and other approaches (youth-focused identitydriven work, flattening the hierarchy to share agency between teacher and learner) lead to improved learning and well-being outcomes for children.

3. Develop New Participatory Programmes for CYP and their Families:

We will create new partnerships and strengthen existing collaborations to promote, support and develop arts practice locally in North Durham, and regionally where appropriate. We will develop these programmes with community stakeholders, youth and community groups, school leads, DCC’s Community Arts Manager and Area Action Partnership officers to identify gaps in provision and opportunities for impactful community engagement. Following our consultations with youth leaders in Stanley during 2021-2022, we will develop a new youth and community programme, focusing on climate change and the importance of environmental responsibility, by taking The Forge’s new mobile photography studio into youth clubs and other youth settings.

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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 2023

PLANS FOR FUTURE PERIODS (Continued)

  1. Developing Career Pathways within the Creative Industries - Early Career Artists and Young Aspiring Artists

We support young artists early in their careers as well as supporting emerging, working-class artists and young people from disadvantaged communities. We will continue to work strategically with DurhamWorks and other partners to identify unemployed young aspiring artists and unemployed early career artists who are struggling to find a foothold in the industry due to issues around class, qualifications, disability or access needs. Over the next three years we will develop specific training opportunities for disadvantaged young people, focusing on the most vulnerable groups. The Forge’s new youth forum, with representation from the disabled youth community, will inform this work.

5. Driving Sustainable Change Through Leading and Supporting Regional Infrastructures

As part of our 2023-2026 activity we will galvanise all cultural, educational and local authority partners to place culture at the strategic centre of local authority planning. We will work with our networks to identify specific collaborations that will improve creative and cultural offers for children and young people in this region. In 2023-2024, this will include a Stanley-based community programme designed and delivered in partnership with East Durham Creates. We will engage with Youth Focus North East, Children North East and Stanley Youth Council and The Forge’s new Youth Forum, as well as engaging with Stanley Area Action Partnership officers and the Northern Child Health and Wellbeing Network to ensure that our programmes respond to young people’s views, to local needs and to local health and well-being priorities.

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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 2023

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 statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each 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 these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees 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 preparing this report, the Trustees have taken advantage of the small companies exemptions provided by Section 415A of the Companies Act 2006.

Signed by order of the Trustees

M Gilbey Chair/Trustee Company Registration Number 04027621

25 July 2023

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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 2023

I hereby report to the Trustees/Members of County Durham Arts In Education Agency (Charity Registration Number 1086471) on the accounts for the year ended 31 March 2023 set out on pages 17 to 29.

Responsibilities and basis of report

As the charity’s trustees (and also its directors for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent Examiner’s Statement

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

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

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

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or

  4. the accounts have not been prepared in accordance with the methods or principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)).

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.

Pete O’Hara, FCA, Chartered Accountant Fellow of the Institute of Chartered Accountants in England & Wales

4 Stoneyhurst Road West, Gosforth, Newcastle upon Tyne NE3 1PG

25 July 2023

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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 2023

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
2023
Total
2022
£
£
£
£
2,272
-
2,272
1,285
72,554
29,500
102,054
50,975
46,600
28,000
74,600
171,896
121,426
57,500
178,926
224,156
33,087
-
33,087
31,995
104,349
91,638
195,987
181,001
137,436
91,638
229,074
212,996
(16,010)
(34,138)
(50,148)
11,160
237,745
84,052
321,797
310,637
£221,735
£49,914
£271,649
£321,797

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 2023

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		 2023
2022
£
£
20,283
31,720
11,159
4,741
291,397
331,826
302,556
336,567
(51,190)
(46,490)
251,366
290,077
£271,649
£321,797
109,735
125,745
112,000
112,000
49,914
84,052
£271,649
£321,797

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

The Trustees are satisfied that for the year ended 31 March 2023 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 25 July 2023.

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 2023

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 2023

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 2023

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 2023

3. Income from Investments

Unrestricted Restricted 2023 2022
Funds Funds
£ £ £ £
Bank Interest Receivable 2,272 - 2,272 1,285
£2,272 £- £2,272 £1,285
The 2022 total of £1,285 was wholly attributable to Unrestricted Funds.
4. Income from Donations, Grants & Legacies
Unrestricted Restricted 2023 2022
Funds Funds
£ £ £ £
Donations - - - -
Grant Income
Arts Council England – NPO 58,554 - 58,554 58,554
Children In Need - - - 47,152
Arts Council England – Culture Durham - 10,000 10,000 -
Review
Durham CC – Are You Listening? - 7,000 7,000 -
Durham CC – CBNE Partnership - - - 20,000
Durham CC – Everyday Heroes; - - - 800
Everyday Lives
Durham CC/Stanley AAP – Everyday - - - 21,890
Heroes; Everyday Lives
Durham County Council Adult & 13,500 - 13,500 13,500
Community Services
Newcastle CC – CBNE Partnership 500 9,500 10,000 10,000
Newcastle CC – Creative Schools - 3,000 3,000 -
Bursary
£72,554 £29,500 £102,054 £171,896

Of the 2022 total of £171,896, £72,854 was attributable to Unrestricted Funds and £99,042 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 2023

5. Income from Charitable Activities

Arts Award
Artsmark Development Days
Critical Friend Income
DurhamWorks Fees
Education Programme
Speaking Fees		 Unrestricted
Funds
£
Restricted
Funds
£
2023
£
2022
£
-
-
-
475
-
28,000
28,000
28,000
3,600
-
3,600
3,600
24,400
-
24,400
16,000
18,300
-
18,300
2,000
300
-
300
900
£46,600
£28,000
£74,600
£50,975

Of the 2022 total of £50,975, £22,975 was attributable to Unrestricted Funds and £28,000 to Restricted Funds.

6. Expenditure on Raising Funds

Salaries & On Costs Unrestricted
Funds
£
Restricted
Funds
£
2023
£
2022
£
33,087
-
33,087
31,995
£33,087
£-
£33,087
£31,995

The 2022 total of £31,995 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 2023

7. Expenditure on Charitable Activities

Artistic Production/Project Costs
Programme Costs
Salaries & On Costs
Support Costs
Premises Costs
Administration & Office Costs
Depreciation
Governance Costs
Independent Examiner’s Fees
Other Finance/Accountancy Fees
Board Development
Governance Meeting Costs & Expenses		 Unrestricted
Funds
£
Restricted
Funds
£
Total
2023
£
Total
2022
£
29,654
37,630
67,284
55,290
54,025
45,235
99,260
95,984
8,558
-
8,558
9,040
7,308
-
7,308
6,021
2,732
8,773
11,505
11,487
1,200
-
1,200
1,200
240
-
240
470
102
-
102
1,000
530
-
530
509
£104,349
£91,638
£195,987 £181,001

Of the 2022 total of £181,001, £72,858 was attributable to Unrestricted Funds and £108,143 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		 2023
£
2022
£
1,200
1,200
11,505
11,487

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 2023

9. Staff Costs & Trustees’ Remuneration

Gross Salary Costs
Employer’s National Insurance
Employer’s Pension Contributions		 2023
£
2022
£
105,129
101,838
6,684
6,294
20,534
19,847
£132,347
£127,979

No employee received remuneration of more than £60,000 during the year (2022 - 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		 2023
No.
2022
No.
1
1
2
2
3
3

No remuneration has been paid to any Trustees in the year (2022: £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 (2022: £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 2023 County Durham Arts In Education Agency made an employer's contribution of 30.3% 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 2023 County Durham Arts In Education Agency made an employer's contribution of 10% 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 £697 were outstanding at 31 March 2023 (2022: £665).

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 2023

10. Tangible Fixed Assets

10.
Tangible Fixed Assets
Cost
At 1 April 2022
Additions in year
Disposals
At 31 March 2023
Accumulated Depreciation
At 1 April 2022
Charge for year
Disposals
At 31 March 2023
Net Book Value
At 31 March 2023
At 1 April 2022
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
£
45,950
45,950
68
68
-
-
46,018
46,018
14,230
14,230
11,505
11,505
-
-
25,735
25,735
£20,283
£20,283
£31,720
£31,720
2023
£
2022
£
5,150
2,275
-
1,846
1,009
620
5,000
-
£11,159
£4,741
2023
£
2022
£
24,820
29,080
697
665
6,000
6,000
1,251
845
18,422
9,900
£51,190
£46,490

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 2023

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
Strategic Development Fund
Restricted Funds
Arts Council England – Culture
Durham Review
Artsmark - CBNE
Children In Need
Durham CC – Are You Listening?
Durham CC / Newcastle CC – CBNE
Partnership
Durham CC/Stanley AAP – Everyday
Heroes; Everyday Lives
Newcastle CC – CBNE Partnership
Northern Writes Animation 2
Teaching Things Differently - PHF
Teaching Tool
Total Restricted Funds
Total Funds		 Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
2,720
17,563
20,283
31,720
6,159
5,000
11,159
4,741
248,640
42,757
291,397
331,826

(35,784)
(15,406)
(51,190)
(46,490)
£221,735
£49,914
£271,649
£321,797
Fund at 1
April 2022
£
Incoming
Resources
in Year
£
Resources
Expended/
Transfers
in Year
£
Fund at 31
March 2023
£
125,745
121,426
(137,436)
109,735
67,000
-
-
67,000
45,000
-
-
45,000
237,745
121,426
(137,436)
221,735
-
10,000
(6,135)
3,865
-
28,000
(28,000)
-
26,268
-
(8,773)
17,495
-
7,000
(3,150)
3,850
25,893
3,000
(14,888)
14,005
20,890
-
(14,691)
6,199
9,500
(5,000)
4,500
1,501
-
(1,501)
-
8,000
-
(8,000)
-
1,500
-
(1,500)
-
84,052
57,500
(100,411)
49,914
£321,797
£178,926
£(229,074)
£271,649

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 2023

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 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

Arts Council England – Culture Towards the costs of carrying out a review of Durham Review Culture Durham Artsmark - CBNE Towards the costs of managing the Artsmark scheme Children In Need Towards the cost of equipment for use with Children & Young People Durham CC – Are You Listening? Towards the cost of the Are You Listening project Durham CC / Newcastle CC – CBNE Towards the cost of a culture-led mental health Partnership wellbeing programme Durham CC/Stanley AAP – Everyday Towards the cost of Everyday Heroes; Everyday Heroes; Everyday Lives Lives

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 Tool 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 2023

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 (2022: £57,496) from Arts Council England was recognised in the year.

At 31 March 2023, Nil was owing to County Durham Arts In Education Agency from Arts Council England (31 March 2022: £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 6 members of the company (2022 - 7 members).

29