House of Illustration
Trustees, Report and
Financial Statements
for the year ended 31 December 2021
Registered Company Number
04484943
Registered Charity Number
1095210
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House of Illustration
Trustees Report
for the year ended 31 December 2021
Report of the Trustees
The Trustees (who are also directors of the ch&rity for the purpose of
the Companies Act) present their annual report together with the
financial statements of House of Illustration (the company and gTOUP,
now known &s Quentin Bl&ke Centre for Illustr&tion) for the year that
ended on 31 December 2021. The Trustees confirm that the annual
report and financi statements of the company and the gTOUP comply
with the current st&tutory requirements, the requirements of the
company &nd the gTOUP'S governing document and the provisions of the
Statement of Recommended Practice - Accounting&nd Reportingby
Charities.. SORP, which is &pplicable to ch&rities preparing their
accounts in &ccord&nce with FRS 102.
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House of Illustration
Trustees Report
forthe year ended 31 December 2021
From Granary Square to
New River Head
From 2014 until March 2020, we ran our first public sp&ce from rented
premises in Granary Square, Kings Cross. This enabled us to test public
appetite for our exhibitions (in London and on tour), events and
education progTammes, re&ching an &udience of Imn and gTowing our
work with illustrators, schools and communities.
In 2019, with the support of founder Sir Quentin Blake, we purchased
the le&se for New River Head, a complex of disused 18tli_ &nd 19tli_
century industrial heritage buildings set within half &n acre of land in
Clei'kenwelL New River Head will be developed into the Quentin Blake
Centre for Illustration, offering several gallery spaces, a dedic&ted
learningstudio &nd project space, and a café, shop and wdens.
We ceased our activities at Gran&ry Square at the outset of the Covid-
19 pandemic in March 2020. However, we have continued to tour
exhibitions and develop our learning and participation progT&mmes
off-site and online while developing plans for the new Centre.
House of Illustration
Trustees Report
forthe year ended 31 December 2021
Exhibiting exciting and
original practice
Exhibitions
We shared six exhibitions in 2021 in partnership with host
organisations in Winchester, Pen&rth, Derby, London, Amsterdam and
Ely.
Raymond Briggs: A Retrospective
The Gallery, Winchester Discovery Centre: 17 May - 18 August 2021
Hosted by Hampshire Cultur&l Trust, our exhibition Raylnond Brigg&'
A Retrospectiue opened on the first day that Covid restrictions were
lifted on museums and galleries. We conserved and c&t&logued more
than 100 original illustrations from Briggs's archive for titles including
iconic picture book Fungus the Bogeyman, &poc&lyptic satire When the
Wind Blows and pioneering gT&phic memoir Ethel & Ernest. With many
works never seen outside the artists, studio, the exhibition celebrated
Briggs &s an exceptional draughtsperson, typogTapher and story6eller.
Despite continuing social distancing restrictions, the exhibition
attracted 3,331 people, with timed tickets sold out during weekends.
"Themes of class, family, love, politics &nd death, with doses of humour
and melancholy, anchoring the fantastical in the everyday." Art
Quarterly
"Timed perfectly and in sync with audiences, interest in gTief, memory
and loss." Hampshire Cultural Trust
'Very interesting and inform&tive' fascinatingto see his processes and
the images were wonderful." Exhibition visitor
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Date: 31/10/2022
40
## **House of Illustration**
## **Consolidated Statement of Financial Activities**
(incorporating an income and expenditure account)
## **For the year ended 31 December 2021**
|**Note**
**Income from:**
Donations and legacies
**3**
Charitable activities
**4**
_Other trading activities:_
Trading activities
Investments
**5**
**Total income**
**Expenditure on:**
_Raising funds:_
Voluntary income
**6**
Trading activities
Charitable activities
**6**
**Total expenditure**
Net gains / (losses) on investments
**7**
Transfers between funds
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
**Net income / (expenditure) for the year**
**Net income / (expenditure) before net gains /**
**(losses) on investments**|**Restricted**
**Funds**
**£**
**481,345**
**-**
**-**
**-**
**481,345**
**-**
**-**
**45,301**
**45,301**
**436,044**
**-**
**436,044**
**-**
**436,044**
**2,992,688**
**3,428,732**|**Unrestricted**
**Funds**
**£**
**367,513**
**139,439**
**73,443**
**13**
**580,408**
**72,526**
**1,797**
**570,804**
**645,127**
**(64,719)**
**-**
**(64,719)**
**-**
**(64,719)**
**(844,596)**
**(909,315)**|**2021**
**Total**
**Funds**
**£**
**848,858**
**139,439**
**73,443**
**13**
**1,061,753**
**72,526**
**1,797**
**616,105**
**690,428**
**371,325**
**-**
**371,325**
**-**
**371,325**
**2,148,092**
**2,519,417**|2020
Total
Funds
£
392,333
139,122
73,886
116|
|---|---|---|---|---|
|||||605,457|
|||||41,626
104,179
1,147,796|
|||||1,293,601|
|||||(688,144)
-|
|||||(688,144)
-|
|||||(688,144)
2,836,236|
|||||2,148,092|
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. The attached notes form part of these financial statements.
41
**House of Illustration Balance sheet As at 31 December 2021**
|**Note**
**Fixed assets:**
**10**
**11**
**Current assets:**
**12**
**Liabilities:**
**13**
**Liabilities:**
**14**
**15**
General funds
Investments
Cash at bank and in hand
Creditors: amounts falling due within one year
**Net current assets**
**Total net assets**
Debtors
Creditors: amounts falling due after one year
Tangible assets
**Funds**
**Total funds**
Restricted funds
Unrestricted funds:|**Group**
**2021**
**£**
**3,298,034**
**-**|Group
2020
**£**
3,120,129
-|**Charity**
**2021**
£
**3,298,034**
**1**|Charity
2020
£
3,120,129
1|
|---|---|---|---|---|
||**3,298,034**|3,120,129|**3,298,035**|3,120,130|
||**365,369**
**452,978**|241,559
191,149|**700,026**
**437,969**|472,463
160,209|
||**818,347**
**(366,964)**|432,708
(534,745)|**1,137,995**
**(366,922)**|632,672
(359,706)|
||**451,383**|(102,037)|**771,073**|272,966|
||(1,230,000)|(870,000)|**(1,230,000)**|(870,000)|
||**2,519,417**|2,148,092|**2,839,108**|2,523,096|
||**3,428,732**
**(909,315)**|2,992,688
(844,596)|**3,428,732**
**(589,624)**|2,992,688
(469,592)|
||**2,519,417**|2,148,092|2,839,108|2,523,096|
The financial statements have been prepared in accordance with the special provisions for small companies under Part15 of the Companies Act 2006.
Approved by the trustees on 31 October 2022. and signed on their behalf by:
**John Kampfner Chair of Board of Trustees**
## **Company registration no. 04484943**
The attached notes form part of the financial statements.
42
**For the year ended 31 December 2021**
## **House of Illustration**
## **Consolidated Statement of cash flows**
|**Note**
**2021**
**£**
**Cash flows from operating activities:**
Net cash provided by / (used in) operating activities
**17**
**Cash flows from investing activities:**
Interest/ rent/ dividends from investments
**-**
Sale/ (purchase) of fixed assets
**(178,363)**
**Cash provided by / (used in) investing activities**
**Cash flows from financing activities:**
Cash inflows from new borrowing
**400,000**
Cash outflows from repaid borrowing
**(40,000)**
**Cash provided by / (used in) financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
**18**
Change in cash and cash equivalents due to exchange
rate movements|**Note**
**2021**
**£**
**Cash flows from operating activities:**
Net cash provided by / (used in) operating activities
**17**
**Cash flows from investing activities:**
Interest/ rent/ dividends from investments
**-**
Sale/ (purchase) of fixed assets
**(178,363)**
**Cash provided by / (used in) investing activities**
**Cash flows from financing activities:**
Cash inflows from new borrowing
**400,000**
Cash outflows from repaid borrowing
**(40,000)**
**Cash provided by / (used in) financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
**18**
Change in cash and cash equivalents due to exchange
rate movements|**2021**
**£**
**80,192**
**(178,363)**
**360,000**|2020
£
-
(247,818)|2020
£
(529,842)
(247,818)
885,000|
|---|---|---|---|---|
||**400,000**
**(40,000)**||885,000
-||
||||||
|||**261,829**
**191,149**
**-**||107,340
83,809
-|
|||**452,978**||191,149|
43
**House of Illustration Notes to the financial statements For the year ended 31 December 2021**
- **1 Accounting policies**
- **a) Basis of preparation**
- The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 - effective 1 January 2015) - (Charities SORP FRS 102) and the Companies Act 2006.
The charitable company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
## **b) Going concern**
In 2020 House of Illustration raised a £1 million loan facility from Architectural Heritage Fund to cover the costs of obtaining planning permission for the redevelopment of its new site at New River Head and its operating costs while doing so. In February 2022 the Islington Planning Committee resolved to grant planning and listed building consent for the proposed redevelopment subject to conditions and a s106 legal agreement being signed. In September 2022, Architectural Heritage Fund extended the repayment date of its loan facility to 30th November 2022 to allow House of Illustration further time to raise replacement finance. House of Illustration is in advanced negotiations with a new finance provider who has indicated that it is willing to lend nearly £2 million, £1 million as soon as planning consent and s106 are finalised, to enable House of Illustration to repay Architectural Heritage Fund, with the balance to be made available on reaching certain fundraising targets. Architectural Heritage Fund is party to the discussions with the new finance provider and has indicated that it will not call in its loan on the due date pending the imminent finalisation of planning, s106 and the new financing. In the first quarter of 2022, House of Illustration received a £1 million unrestricted donation from a longstanding supporter which will help to fund its operating deficit during the redevelopment of New River Head. House of Illustration’s ability to fund its accumulated operating deficit at 31st December 2021, and any such deficits arising in future years, and to repay debt is further assured through a generous bequest. Accordingly, the trustees consider that there are no material uncertainties about the group’s ability to continue as a going concern.
In common with many charities, House of Illustration relies upon fundraising events and donations for a substantial part of its annual income. Inevitably, there is some uncertainty in estimating these amounts and, accordingly, the trustees take a prudent view of them when considering the group’s cash flow projections.
- **c) Basis of consolidation** These financial statements consolidate the results of the charity and its wholly-owned subsidiary House of Illustration Trading Company Limited on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the companies are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.
## **d) Income**
Incoming resources are recognised in the period in which the group is entitled to receive them and the amount can be measured with reasonable certainty and it is probable that income will be received. Income is deferred only when the group has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.
Grants from government and other agencies have been included as income from activities in furtherance of the group's objectives where these amount to a contract for services, but as donations where the money is given in response to an appeal or with greater freedom of use, for example monies for core funding.
- **e) Expenditure** Expenditure is included in the statement of financial activities when incurred and includes attributable VAT which cannot be recovered.
Expenditure comprises the following:
- a. The costs of activities in furtherance of the charity's objectives comprise expenditure on the charity's primary charitable purposes as described in the trustees' report.
- b. The costs of raising funds comprises the expenditure incurred by the trading company and the charity and consists of salaries, direct costs and overheads.
- c. Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the group it is necessary to provide support in the form of financial procedures, provision of office services and equipment and a suitable working environment. Salary costs have been allocated based on staff time.
44
**House of Illustration Notes to the financial statements For the year ended 31 December 2021**
## **1. Accounting policies (continued)**
## **f) Tangible fixed assets**
Assets costing in excess of £250 and with an expected useful life exceeding one year are capitalised.
Depreciation is charged on these assets at the following annual rates in order to write them off over their estimated useful lives:
Long Term Leasehold Property Over the period of the lease Fixtures & Fittings 25% straight line Computer equipment 20% straight line Other fixed assets 20% straight line
No Depreciation is provided for New River Head lease, since the trustees believe it to be appreciating in value.
## **g) Investments**
Investment in the subsidiary company is stated in the charity at cost.
## **h) Stocks**
Stocks are valued at lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **i) Leased assets**
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight line basis over the life of the lease.
Assets purchased under hire purchase agreements are capitalised as fixed assets. Obligations under such agreements are included in creditors. Charges are written off to the SOFA over the period of the agreement so as to produce a constant periodic rate of charge.
## **j) Fund accounting**
The unrestricted fund comprises those monies which may be used towards meeting the charitable objectives of the group and which may be applied at the discretion of the trustees.
The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donorimposed conditions.
45
**House of Illustration Notes to the financial statements For the year ended 31 December 2021**
## **2 Detailed comparatives for the consolidated statement of financial activities**
|Income from:
Donations and legacies
Charitable activities
_Other trading activities:_
Trading activities
Investment income
Total income
Expenditure on:
_Raising funds:_
Voluntary income
Trading activities
Charitable activities
Total expenditure
Reconciliation of funds:
**3**
**Income from donations and legacies**
Trusts & Foundations and Individual donations
Furlough grant
**4**
**Income from charitable activities**
Exhibition admissions, touring fees and education
and event programme
**Total income from charitable activities**
**5**
**Investments**
Interest
Net income / (expenditure) before net gains / (losses) on investments
Transfers between funds
Net movement in funds
Total funds brought forward
Total funds carried forward
Net gains / (losses) on investments
Net (expenditure) for the year|**Restricted**
**Funds**
**£**
**481,345**
**-**
**481,345**
**Restricted**
**Funds**
**£**
**-**
**-**
**Restricted**
**Funds**
**£**
-
-|2020
Restricted
Funds
£
19,285
37,769
-
-
57,054
-
-
164,664
164,664
(107,610)
-
(107,610)
-
(107,610)
3,100,298
2,992,688
**Unrestricted**
**Funds**
**£**
**330,627**
**36,886**
**367,513**
**Unrestricted**
**Funds**
**£**
**139,439**
**139,439**
**Unrestricted**
**Funds**
**£**
**13**
**13**|2020
Unrestricted
Funds
£
373,048
101,353
73,886
116
548,403
41,626
104,179
983,132
1,128,937
(580,534)
-
(580,534)
-
(580,534)
(264,062)
(844,596)
**2021**
**Total**
**Funds**
**£**
**811,972**
**36,886**
**848,858**
**2021**
**Total**
**Funds**
**£**
**139,439**
**139,439**
**2021**
**Total**
**Funds**
**£**
**13**
**13**|2020
Total Funds
£
392,333
139,122
73,886
116|
|---|---|---|---|---|
|||||605,457|
|||||41,626
104,179
1,147,796|
|||||1,293,601|
|||||(688,144)
-|
|||||(688,144)
-|
|||||(688,144)
-
2,836,236|
|||||2,148,092|
|||||2020
Total Funds
£
304,970
87,363|
|||||392,333|
|||||**2020**
Total Funds
£
139,122|
|||||139,122|
|||||2020
Total Funds
£
116|
|||||116|
46
**House of Illustration**
**Notes to the financial statements For the year ended 31 December 2021**
## **6 Analysis of expenditure**
|Staff costs
Pension costs
Fundraising costs
Retail costs including cost of sales
Exhibitions
Education
IT and website
Public Programme
Admin and operating costs
Premises
Marketing and communications
Irrecoverable VAT
Depreciation
Profit and loss on sale of assets
Impairment losses
Audit and Accountancy
Support costs
**Total expenditure 2021**
Total expenditure 2020
Analysis of expenditure
Prior year
Staff costs
Pension costs
Fundraising costs
Retail costs including cost of sales
Exhibitions
Education
IT and website
Public Programme
Admin and operating costs
Premises
Marketing and communications
Irrecoverable VAT
Depreciation
Profit and loss on sale of assets
Impairment losses
Audit and Accountancy
Support costs
Total expenditure 2020
Total expenditure 2019|**Charitable**
**activities**
**£**
**267,199**
**-**
**-**
**-**
**61,361**
**75,323**
**-**
**2,626**
**4,265**
**-**
**-**
**-**
**-**
**-**
**-**
**-**|**Cost of raising funds**|**Cost of raising funds**|**Support**
**costs**
**£**
**66,880**
**10,075**
**-**
**-**
**-**
**-**
**14,925**
**-**
**86,713**
**8,923**
**5,775**
**4,056**
**458**
**-**
**-**
**7,526**|**2021 Total**
**£**
**404,749**
**10,075**
**3,693**
**(40)**
**61,361**
**75,323**
**14,925**
**2,626**
**90,978**
**8,923**
**5,775**
**4,056**
**458**
**-**
**-**
**7,526**|2020 Total
£
462,484
8,970
1,690
62,702
70,972
52,666
13,887
3,271
92,273
283,003
21,730
45,049
7,942
7,431
150,226
9,305|
|---|---|---|---|---|---|---|
|||**Voluntary**
**income**
**£**
**68,833**
**3,693**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**|**Trading**
**activities**
**£**
**1,837**
**-**
**(40)**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**||||
||**410,774**
**205,331**|**72,526**
**-**|**1,797**
**-**|**205,331**
**(205,331)**|**690,428**
**-**|1,293,601
2019 Total
£
490,783
8,345
90
92,718
180,272
80,148
16,272
13,061
89,821
189,349
38,315
35,955
43,724
-
127,851
16,174|
||**616,105**|**72,526**|**1,797**|**-**|**690,428**||
||1,147,796|41,626|104,179|-|1,293,601||
||Charitable
£
321,059
-
-
-
70,972
52,666
-
3,271
3,023
261,805
-
-
-
-
150,226
-|||Support
£
60,012
8,970
-
-
-
-
13,887
-
89,250
21,198
21,730
45,049
7,942
7,431
-
9,305|2020 Total
£
462,484
8,970
1,690
62,702
70,972
52,666
13,887
3,271
92,273
283,003
21,730
45,049
7,942
7,431
150,226
9,305||
|||Voluntary
39,936
-
1,690
-
-
-
-
-
-
-
-
-
-
-
-
-|Trading
£
41,477
-
-
62,702
-
-
-
-
-
-
-
-
-
-
-
-||||
||863,022
284,774|41,626
-|104,179
-|284,774
(284,774)|1,293,601
-|1,422,878|
||1,147,796|41,626|104,179|-|1,293,601||
||1,224,760|55,920|142,198|-|1,422,878||
47
**House of Illustration Notes to the financial statements For the year ended 31 December 2021**
## **7 Net income / (expenditure) for the year**
|This is stated after charging / (crediting):
Depreciation
Auditor's remuneration:
Audit fees net of VAT|**2021**
**£**
**458**
**7,500**|2020
£
7,942
7,500|
|---|---|---|
## **8 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel**
|Staff costs were as follows:
Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes|**2021**
**£**
**373,442**
**31,307**
**10,075**|2020
£
433,118
29,366
8,970|
|---|---|---|
||**414,824**|471,454|
The following number of employees received employee benefits (excluding employer pension) during the year between:
|||**2021**|2020|
|---|---|---|---|
|||**No.**|No.|
|£70,000|-£79,000|**1**|-|
The total employee benefits including pension contributions of the key management personnel were £87,727 (2020: £61,246 ).
The charity trustees were not paid and did not receive any other benefits from employment with the charity or its subsidiary in the year (2020: £nil). Neither were they reimbursed expenses during the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).
## **Staff numbers**
The average number of employees (head count based on number of staff employed) during the year was as follows:
|Charitable activities|**2021**
**No.**
**13**|2020
No.
12|
|---|---|---|
||**13**|12|
## **9 Taxation**
The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
48
**House of Illustration Notes to the financial statements For the year ended 31 December 2021**
|**10**
**Group Tangible fixed assets**
**Cost**
At the start of the year
Additions in year
Disposals in year
At the end of the year
**Depreciation**
At the start of the year
Charge for the year
Impairment losses
Eliminated on disposal
At the end of the year
**Net book value**
At the start of the year
**At the end of the year**
**Charity Tangible fixed assets**
**Cost**
At the start of the year
Additions in year
Disposals in year
At the end of the year
**Depreciation**
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
**Net book value**
At the start of the year
**At the end of the year**|**Long Term**
**Leasehold**
**Property**
£
3,554,614
173,668
(434,485)|**Fixtures &**
**Fittings**
£
-
-
-|**Computer**
**equipment**
£
-
4,695
-|**Other fixed**
**assets**
£
57,760
-
(57,760)|**Total**
**£**
**3,612,374**
**178,363**
**(492,245)**|
|---|---|---|---|---|---|
||3,293,797|-|4,695|-|**3,298,492**|
||434,485
-
-
(434,485)|-
-
-
-|-
458
-
-|57,760
-
-
(57,760)|**492,245**
**458**
**-**
**(492,245)**|
||-|-|458|-|**458**|
||3,120,129|-|-|-|**3,120,129**|
||3,293,797|-|4,237|-|**3,298,034**|
||Long Term
Leasehold
Property
£
3,120,129
173,668
-|Fixtures &
Fittings
£
-
-
-|Computer
equipment
£
-
4,695
-|Other fixed
assets
£
57,760
-
(57,760)|**Total**
**£**
**3,177,889**
**178,363**
**(57,760)**|
||3,293,797|-|4,695|-|**3,298,492**|
||-
-
-|-
-
-|-
458
-|57,760
-
(57,760)|**57,760**
**458**
**(57,760)**|
||-|-|458|-|**458**|
||3,120,129|-|-|-|**3,120,129**|
||3,293,797|-|4,237|-|**3,298,034**|
49
**House of Illustration Notes to the financial statements For the year ended 31 December 2021**
## **11 Investments**
## **Quentin Blake Centre Trading Company Ltd**
At 31 December 2021 House of Illustration owned the entire called up share capital of 1 ordinary £1 shares in Quentin Blake Centre Trading Company Ltd, a company incorporated in the United Kingdom.
|Turnover
Cost of sales
Gross profit
Administration expenses
Operating profit
Interest payable
Profit before tax
Tax on (loss)/profit
Profit after tax
Retained earning at the beginning of the year
Retained in subsidiary|**2021**
**£**
**73,443**
**40**|2020
£
73,886
(63,904)|
|---|---|---|
||**73,483**
**(3,164)**|9,982
(299,404)|
||**70,319**
**(15,000)**|(289,422)
(15,000)|
||**55,319**
**-**|(304,422)
-|
||**55,319**
**(375,010)**
**(319,691)**|(304,422)
(70,588)
(375,010)|
At 31 December 2021, the aggregate of the share capital and reserves of Quentin Blake Centre Trading Company Ltd amounted to £319,691 deficit (2020 - £375,010 deficit).
|**12**
**Debtors**
**Due within one year**
Trade debtors
Amount due from subsidiary
Other debtors
Prepayments and accrued income
**13**
**Creditors: amounts falling due within one year**
Trade creditors
Taxation and social security
Other loans
Accruals and deferred income|**Group**
**2021**
**£**
**18,957**
**-**
**105,752**
**240,660**|Group
2020
£
6,446
-
8,419
226,694|**Charity**
**2021**
**£**
**2,732**
**350,882**
**105,752**
**240,660**|Charity
2020
£
2,190
235,160
8,419
226,694|
|---|---|---|---|---|
||**365,369**|241,559|**700,026**|472,463|
||**Group**
**2021**
**£**
**29,444**
**23,404**
**280,000**
**34,116**|Group
2020
£
77,805
14,025
280,000
162,915|**Charity**
**2021**
**£**
**29,402**
**23,404**
**280,000**
**34,116**|Charity
2020
£
23,590
14,025
280,000
42,091|
||**366,964**|534,745|**366,922**|359,706|
Other loans have interest charged at Bank of England Base Rate plus 2.25% amounting to 2.5% at year end and are repayable on demand. Deferred income of £23,445(2020: £Nil) is included within accruals and deferred income above.
|**14**
**Creditors: amounts falling due after more than one year**
Other loans|**Group**
**2021**
**£**
**1,230,000**|Group
2020
£
870,000|**Charity**
**2021**
**£**
**1,230,000**|Charity
2020
£
870,000|
|---|---|---|---|---|
||**1,230,000**|870,000|**1,230,000**|870,000|
Other loans include amounts lent to the charity interest- free by the trustees and a loan received from The Architectural Heritage Fund. The Architectural Heritage Fund Loan is secured over the New River Head Leasehold Property and interest paid between 4.25% to 5%. Please refer to note 22 concerning the refinancing and repayment date of the Architectural Heritage Fund loan.
50
**House of Illustration Notes to the financial statements For the year ended 31 December 2021**
## **15 Analysis of net assets between funds**
|**Analysis of net assets between funds**|||||
|---|---|---|---|---|
|Tangible fixed assets
Current assets
Creditors due within one year
Creditors due more than one year
**Net assets at the end of the year**|**General**
**Unrestricted**
**Funds**
**£**
**4,237**
**403,412**
**(86,964)**
**(1,230,000)**|**Designated**
**Funds**
**£**
**-**
**-**
**-**
**-**|**Restricted**
**Funds**
**£**
**3,293,797**
**414,935**
**(280,000)**
**-**|**Total funds**
**£**
**3,298,034**
**818,347**
**(366,964)**
**(1,230,000)**|
||**(909,315)**|**-**|**3,428,732**|**2,519,417**|
Analysis of net assets between funds - prior year
|Analysis of net assets between funds - prior year|||||
|---|---|---|---|---|
|Tangible fixed assets
Current assets
Creditors due within one year
Creditors due more than one year
**Net assets at the end of the year**|General
Unrestricted
Funds
£
-
280,149
(254,745)
(870,000)|Designated
Funds
£
-
-
-
-|Restricted
Funds
£
3,120,129
152,559
(280,000)
-|Total funds
£
3,120,129
432,708
(534,745)
(870,000)|
||(844,596)|-|2,992,688|2,148,092|
|**16**
**Movements in funds**
**Restricted funds:**
**Education**
**Exhibitions and Gallery**
**New Building Fund**
**Other**
**Total restricted funds**
**Total unrestricted funds**
**Total funds**
Movements in funds - prior year
Restricted funds:
Education
Clore Education Studio
Exhibitions and Gallery
New Building Fund
Other
Total restricted funds
Total unrestricted funds
Total funds|**£**
**10,001**
**7,000**
**2,975,687**
**-**
**At the start**
**of the year**|**£**
**22,000**
**39,125**
**410,720**
**9,500**
**Incoming**
**resources &**
**gains**|**£**
**(28,801)**
**(7,000)**
**-**
**(9,500)**
**Outgoing**
**resources &**
**losses**|**Transfers**
**£**
**-**
**-**
**-**
**-**|**£**
**3,200**
**39,125**
**3,386,407**
**-**
**At the end**
**of the year**|
|---|---|---|---|---|---|
||**2,992,688**|**481,345**|**(45,301)**|**-**|**3,428,732**|
|||||||
||**(844,596)**|**580,408**|**(645,127)**|**-**|**(909,315)**|
|||||||
||**2,148,092**|**1,061,753**|**(690,428)**|**-**|**2,519,417**|
||£
5,236
66,665
50,435
2,975,687
2,275
At the start of
the year|£
37,769
-
14,285
-
5,000
Incoming
resources &
gains|£
(33,004)
(66,665)
(57,720)
-
(7,275)
Outgoing
resources &
losses|Transfers
£
-
-
-
-
-|£
10,001
-
7,000
2,975,687
-
At the end of
the year|
||3,100,298|57,054|(164,664)|-|2,992,688|
|||||||
||(264,062)|548,403|(1,128,937)|-|(844,596)|
|||||||
||2,836,236|605,457|(1,293,601)|-|2,148,092|
51
**House of Illustration Notes to the financial statements For the year ended 31 December 2021**
## **Purposes of restricted funds**
## **Education**
The fund includes a diverse range of projects, partnerships and commissions targeting specific beneficiaries and participants. These projects include our:
- Family and accessible family programmes
- Primary school programmes and projects
- Pathways programme
- Illustrators in schools programme
## **Exhibitions and Gallery**
Funding for the ‘George Him’ exhibition and an online collection. Support was also given towards our ‘Illustrator in Residence’ programme and tour of the 'Journeys Drawn: Illustrating the Refugee crisis' exhibition.
## **New Building Fund**
Donations financed the acquisition of our new permanent home, New River Head in 2019 and professional fees relating to design and development fees.
## **Other**
Funding for our Gorkana press database.
## **17 Reconciliation of net income / (expenditure) to net cash flow from operating activities**
|**Net income / (expenditure) for the reporting period**
**(as per the consolidated statement of financial activities)**
Depreciation
Impairment loss
(Increase)/ decrease in stock
(Increase)/ decrease in debtors
Increase/ (decrease) in creditors
**Net cash provided by / (used in) operating activities**|**2021**
**£**
**371,325**
**458**
**-**
**-**
**(123,810)**
**(167,781)**|2020
£
(688,144)
7,942
150,226
46,048
19,190
(65,104)|
|---|---|---|
||**80,192**|(529,842)|
## **18 Analysis of cash and cash equivalents**
|**Analysis of cash and cash equivalents**
Cash at bank and in hand
**Total cash and cash equivalents**|£
191,149
At 1 January
2021|Cash flows
£
261,829|£
-
Other changes|**£**
**452,978**
**At 31**
**December**
**2021**|
|---|---|---|---|---|
||**191,149**|**261,829**|**-**|**452,978**|
52
**House of Illustration Notes to the financial statements For the year ended 31 December 2021**
## **19 Operating lease commitments**
Total future minimum lease payments under non-cancellable operating leases are as follows:
|1 year
2 - 5 years
After more than 5 years|**2021**
2020
**£**
£
**1**
1
**4**
4
**243**
244
**248**
249
**Group**
Property|**2021**
2020
**£**
£
**1**
1
**4**
4
**243**
244
**248**
249
**Group**
Property|**2021**
2020
**£**
£
**1**
1
**4**
4
**243**
244
**248**
249
**Charity**
Property|**2021**
2020
**£**
£
**1**
1
**4**
4
**243**
244
**248**
249
**Charity**
Property|
|---|---|---|---|---|
||**248**|249|**248**|249|
## **20 Legal status of the charity**
The charity is a company limited by guarantee and has no share capital. Each member is liable to contribute a sum not exceeding £1 in the event of the charity being wound up.
## **21 Related party transactions**
There are no related party transactions to disclose for the year.
## **22. Post balance sheet events**
In the first quarter of 2022, House of Illustration received a £1 million unrestricted donation from a longstanding supporter which will help to fund its operating deficit during the redevelopment of New River Head.
In February 2022 the Islington Planning Committee resolved to grant planning and listed building consent for the proposed redevelopment subject to conditions and a s106 legal agreement being signed.
In September 2022, Architectural Heritage Fund extended the repayment date of its loan facility to 30th November 2022 to allow House of Illustration further time to raise replacement finance. House of Illustration is in advanced negotiations with a new finance provider who has indicated that it is willing to lend nearly £2 million, £1 million as soon as planning consent and s106 are finalised, to enable HOI to repay Architectural Heritage Fund, with the balance to be made available on reaching certain fundraising targets. Architectural Heritage Fund is party to the discussions with the new finance provider and has indicated that it will not call in its loan on the due date pending the imminent finalisation of planning, s106 and the new financing.
53