**REGISTERED CHARITY NUMBER: 1092055**
**Report of the Trustees and**
## **Unaudited Financial Statements**
**for the Year Ended 31st October 2020**
**for**
**THE KENNETH ARMITAGE FOUNDATION**
**THE KENNETH ARMITAGE FOUNDATION**
**Contents of the Financial Statements for the year ended 31st October 2020**
||**Page**|
|---|---|
|**Report of the Trustees**|1 to 2|
|**Independent Examiner's Report**|3|
|**Statement of Financial Activities**|4|
|**Balance Sheet**|5|
|**Notes to the Financial Statements**|6 to 10|
**THE KENNETH ARMITAGE FOUNDATION**
## **Report of the Trustees for the year ended 31st October 2020**
The trustees present their report with the financial statements of the charity for the year ended 31st October 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims for the public benefit**
The trustees shall hold the Trust Fund and its income upon trust to:
(1) Encourage and advance public knowledge of and education in the art of modern and contemporary sculpture, especially through the works of Kenneth Armitage.
(2) Protect and enhance the reputation and legacy of Kenneth Armitage, including through publications and exhibitions and by maintaining his studio to inspire contemporary sculptors.
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities.
## **Formation of the foundation**
Following the death of Kenneth Armitage in January 2002 his executors and trustees executed a deed of appointment, on 14th August 2002, whereby the residue of his estate was directed to the Foundation since its principal objects were considered to be in line with the charitable intentions of his will.
The distribution from the estate included the house at 22a Avonmore Road London W14 previously occupied by Mr Armitage, works of art and a monetary element received in May and June 2003.
## **ACHIEVEMENT AND PERFORMANCE**
## **Review of activities**
The trustees continued to promote the work of Kenneth Armitage and support the education of the public in art and sculpture. Work continued on organising and conserving the collection and in selecting works for sale and for donation.
The Foundation awards an Armitage Fellowship to an international sculptor with a two year residency at its London studio with a bursary and expenses. The 2017-2019 Armitage Fellow, Philip Lai, was shortlisted for the 2018 Hepworth Prize for Sculpture. The Fellowship was awarded in September 2019 to Shahpour Pouyan, an Iranian national with an international reputation who has been working in New York. Covid 19 delayed his arrival at the studio until June 2020 but he is now installed in the studio and working in a rich range of media.
The Foundation usually awards prizes to young sculptors chosen from Bath Spa University, Leeds Arts University, RCA and the Slade School of Fine Art. At the time of writing, Covid 19 is causing massive disruption in art schools and generally through the cultural sector (and the world). It was not possible for the trustees to visit the degree shows of art colleges to award the usual prizes so they thought it prudent to delay any awards in 2020.
During the year the trustees continued to work with Leeds Arts University to create a Kenneth Armitage Fellowship in partnership with the university to enable the university to host the fellow who would receive an annual award, funded by the partnership aided by a grant from the Henry Moore Foundation. The award of this Fellowship was postponed, again due to Covid-19.
It has been a difficult year for all, but we are confident that 2021 will bring us back to near normality.
Page 1
**THE KENNETH ARMITAGE FOUNDATION**
## **Report of the Trustees for the year ended 31st October 2020**
## **FINANCIAL REVIEW**
## **Reserves policy**
Having received the distribution from the estate of Kenneth Armitage the Foundation currently holds reserves of £2,123,105. However, a significant portion of these are not 'free reserves' being tied up in the freehold buildings required to carry out the charity's objectives and works of art. Since further fundraising is not currently taking place, available funds, after building refurbishment costs, need to be invested to provide for the bursary costs. The trustees therefore feel that the current level of reserves must be retained.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
## **Recruitment and appointment of new trustees**
In selecting persons to be appointed, the trustees consider the skills, experience and commitment of potential trustees and the contributions they can make to compliment the existing board of trustees.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number**
1092055
## **Principal address**
Rainscombe Park Oare Marlborough Wiltshire SN8 4HZ
## **Trustees**
Robert Hiscox Chairman Ms Marjorie Allthorpe-Guyton Ann Elliott Mark Dunhill
## **Independent Examiner**
Simpson Wreford & Partners Chartered Accountants Suffolk House George Street Croydon Surrey CR0 0YN Approved by order of the board of trustees on ............................................. and signed on its behalf by:
........................................................................ Robert Hiscox - Trustee
Page 2
**Independent Examiner's Report to the Trustees of The Kenneth Armitage Foundation**
## **Independent examiner's report to the trustees of The Kenneth Armitage Foundation**
I report to the charity trustees on my examination of the accounts of The Kenneth Armitage Foundation (the Trust) for the year ended 31st October 2020.
## **Responsibilities and basis of report**
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Patrick du Casse Simpson Wreford & Partners Chartered Accountants Suffolk House George Street Croydon Surrey CR0 0YN
Date: .............................................26 August 2021
Page 3
**THE KENNETH ARMITAGE FOUNDATION**
## **Statement of Financial Activities for the year ended 31st October 2020**
|Notes
**INCOME AND ENDOWMENTS FROM**
Other trading activities
2
Investment income
3
**Total**
**EXPENDITURE ON**
**Raising funds**
Other trading activities
Investment management costs
4
**Charitable activities**
Studio expenses
Preservation of artworks
Management and administration
Grants to sculptors
**Total**
**NET INCOME/(EXPENDITURE)**
**Other recognised gains/(losses)**
Gains/(losses) on revaluation of fixed assets
**Net movement in funds**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|31.10.20
Unrestricted
fund
£
13,639
17,021
30,660
-
1,504
1,504
26,264
11,238
5,797
-
44,803
(14,143)
(14,035)
(28,178)
2,151,283
2,123,105|31.10.19
Total
funds
£
62,998
15,931
78,929
20,000
1,999
21,999
8,556
13,650
11,982
21,250
77,437
1,492
37,523
39,015
2,112,268
2,151,283|
|---|---|---|
The notes form part of these financial statements
Page 4
## **THE KENNETH ARMITAGE FOUNDATION**
## **Balance Sheet 31st October 2020**
|Notes
**FIXED ASSETS**
Tangible assets
7
Investments
8
**CURRENT ASSETS**
Stocks
9
Debtors
10
Cash at bank
**CREDITORS**
Amounts falling due within one year
11
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**NET ASSETS**
**FUNDS**
12
Unrestricted funds
**TOTAL FUNDS**|31.10.20
Unrestricted
fund
£
806,879
820,814
1,627,693
388,953
8,383
100,126
497,462
(2,050)
495,412
2,123,105
2,123,105
2,123,105
2,123,105|31.10.19
Total
funds
£
800,000
809,645
1,609,645
388,953
8,054
147,931
544,938
(3,300)
541,638
2,151,283
2,151,283
2,151,283
2,151,283|
|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 26 August 2021
............................................. Robert Hiscox - Trustee
The notes form part of these financial statements
Page 5
**THE KENNETH ARMITAGE FOUNDATION**
## **Notes to the Financial Statements for the year ended 31st October 2020**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
## **Financial reporting standard 102 - reduced disclosure exemptions**
The charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':
- the requirements of Section 7 Statement of Cash Flows;
- the requirement of paragraph 3.17(d);
- the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c).
## **Changes in accounting policies**
In preparing these accounts, the Trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required. No restatements were required.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
## **Tangible fixed assets**
Depreciation has not been charged on the property. Annual impairment reviews are carried out by the trustees who do not consider that any adjustment to the original valuation is necessary.
## **Stocks**
Stocks are stated at their value on the date they were transferred into the trust from the estate of Kenneth Armitage.
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
continued...
Page 6
**THE KENNETH ARMITAGE FOUNDATION**
## **Notes to the Financial Statements - continued for the year ended 31st October 2020**
## **1. ACCOUNTING POLICIES - continued**
## **Fund accounting**
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Investments**
Investments are stated at their market value at the year end date. Any unrealised gains or losses are recognised in statement of financial activities.
## **Creditors**
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount.
## **Debtors**
Debtors are recognised at the settlement amount due.
|**2.**|**OTHER TRADING ACTIVITIES**|||
|---|---|---|---|
|||31.10.20|31.10.19|
|||£|£|
||Sale of artwork|13,639|62,998|
|**3.**|**INVESTMENT INCOME**|||
||Investment income|31.10.20
£
16,459|31.10.19
£
15,652|
||Deposit account interest|562|279|
|||17,021|15,931|
|**4.**|**INVESTMENT MANAGEMENT COSTS**|||
||Support costs|31.10.20
£
1,504|31.10.19
£
1,999|
continued...
Page 7
**THE KENNETH ARMITAGE FOUNDATION**
## **Notes to the Financial Statements - continued for the year ended 31st October 2020**
## **5. SUPPORT COSTS**
|Governance
Finance
costs
£
£
Investment management costs
1,504
-
Management and administration
-
1,932
1,504
1,932|Totals
£
1,504
1,932
3,436|
|---|---|
## **6. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31st October 2020 nor for the year ended 31st October 2019.
## **Trustees' expenses**
Included within expenditure is £857 (2019 - £1,656) of expenses reimbursed to trustees.
## **7. TANGIBLE FIXED ASSETS**
|**COST**
At 1st November 2019
Additions
At 31st October 2020
**DEPRECIATION**
Charge for year
**NET BOOK VALUE**
At 31st October 2020
At 31st October 2019|Freehold
property
£
800,000
-
800,000
-
800,000
800,000|Fixtures
and
fittings
£
-
7,254
7,254
375
6,879
-|Totals
£
800,000
7,254
807,254
375
806,879
800,000|
|---|---|---|---|
## **8. FIXED ASSET INVESTMENTS**
|**MARKET VALUE**|Listed
investments
£|
|---|---|
|At 1st November 2019|809,645|
|Additions|25,204|
|Revaluations|(14,035)|
|At 31st October 2020|820,814|
|**NET BOOK VALUE**||
|At 31st October 2020|820,814|
|At 31st October 2019|809,645|
continued...
Page 8
**THE KENNETH ARMITAGE FOUNDATION**
## **Notes to the Financial Statements - continued for the year ended 31st October 2020**
## **8. FIXED ASSET INVESTMENTS - continued**
There were no investment assets outside the UK.
|**9.**
**STOCKS**
Works of art
**10.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
VAT
Prepayments and accrued income
**11.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Accrued expenses
**12.**
**MOVEMENT IN FUNDS**
**Unrestricted funds**
General fund
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
30,660
**TOTAL FUNDS**
30,660|At
1.11.19
£
2,151,283
2,151,283
Resources
expended
£
(44,803)
(44,803)||31.10.20
£
388,953
31.10.20
£
465
7,918
8,383
31.10.20
£
2,050
Net
movement
in funds
£
(28,178)
(28,178)
Gains and
losses
£
(14,035)
(14,035)|31.10.19
£
388,953
31.10.19
£
220
7,834
8,054
31.10.19
£
3,300
At
31.10.20
£
2,123,105
2,123,105
Movement
in funds
£
(28,178)
(28,178)|
|---|---|---|---|---|
continued...
Page 9
**THE KENNETH ARMITAGE FOUNDATION**
## **Notes to the Financial Statements - continued for the year ended 31st October 2020**
## **12. MOVEMENT IN FUNDS - continued**
## **Comparatives for movement in funds**
|**Unrestricted funds**
General fund
**TOTAL FUNDS**
Comparative net movement in funds, included in the above are
Incoming
resources
£
**Unrestricted funds**
General fund
78,929
**TOTAL FUNDS**
78,929|At
1.11.18
£
2,112,268
2,112,268
as follows:
Resources
expended
£
(77,437)
(77,437)|Net
movement
in funds
£
39,015
39,015
Gains and
losses
£
37,523
37,523|At
31.10.19
£
2,151,283
2,151,283
Movement
in funds
£
39,015
39,015|
|---|---|---|---|
## **13. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31st October 2020.
Page 10