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2021-03-31-accounts

Registered company number: 04727071 Charity number: 1099570

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

Report of the Trustees and unaudited financial statements for the year ended 31 March 2021

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

CONTENTS FOR THE YEAR ENDED 31 MARCH 2021

Page
Trustees' Annual Report 1
Independent Examiner's Report to the Trustees 11
Statement of Financial Activities 12
Balance Sheet 13
Notes to the Financial Statements 14

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

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 2021.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered charity name Horsebridge Arts and Community Centre
Charity number 1099570
Company registration number 4727071
Registered office 11 Horsebridge Road
Whitstable
Kent
CT5 1AF
Trustees
The trustees who served the charity during the period were as follows:
Mrs Z A Cloke
Mr J C Nurden
Mr S A Lawton
Mr L H McMahon
Cllr B P Baker (resigned 26.11.20)
Mr T Jackaman (Dec'd 29.10.21)
Mrs A J Memmott (appointed 26.11.20)
Cllr V A Kenny (appointed 28.7.21)
Key management personnel The trustees
Ms Elizabeth Daone - Executive Director
Mr Peter Dyer - Finance Manager
Mrs H Wenn - Deputy Director
Independent examiner S J Wren FCCA
Accountancy Matters (Kent) Limited
Chartered Certified Accountants
31 Queen Street
Ramsgate
Kent
CT11 9DZ
Bankers Lloyds Bank Plc
43 Sandgate Road
Folkestone
Kent
CT5 1AF

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

PURPOSE AND ACTIVITIES

The Horsebridge Arts and Community Centre was established in 2004 as a not-for-profit company limited by guarantee with a charitable status. It occupies a distinctive, purpose built, contemporary building in the centre of the town adjacent to the seafront. Identified locally as ‘The Horsebridge Arts Centre’ it is at the cultural heart of Whitstable and aspires to be a vibrant regional arts destination.

The purpose of the charity is to provide a social, cultural and learning resource of high-quality that meets the needs of our community, is excellent value and is welcoming an accessible to all.

Aims of The Horsebridge Arts Centre

Building on the centre’s established relationships with the local community, as well as its diverse artistic and educational programme, the centre aims to

Public Benefit

The Trustees confirm they have had due regard to the Charity Commission’s public benefit guidance and are confident the objectives and activities undertaken provide significant benefit to the public and are in accordance with its charitable objects.

The Horsebridge Arts Centre enjoys more than 90,000 visitors through its doors each year. These visitors are made up of local and regional visitors as well as growing numbers of tourists from the UK and abroad as Whitstable continuers to attract cultural and heritage tourists. We are committed to deliver a year-round programme of arts events and learning opportunities to Whitstable and beyond, responding to and enhancing the passions of the community. We work cohesively in our programming to ensure we offer events the community can be involved in with the aim of having no barrier to access, particularly with youth projects and events, connecting with other organisations and groups across the district to enhance the collective offering to the region. The Centre continues to develop new approaches to reach sections of our community who feel there is nothing at the centre for them.

The Centre relies on income generated from hire charges and events to cover its operating costs alongside grant funding. To remain accessible and to continue to provide public benefit, the trustees and management team of the Centre have to take great care to ensure the fees set across the Centre remain accessible for those on low income. The variety of spaces within the Centre assist us in enabling both physical and economic accessibility to the resources, but we are continually looking at more ways to develop the interaction with the building.

When providing an arts offering we are aware that not everyone has the same tastes and some of our arts programming may cause offence. We seek to respect the diverse ethnic, faith, sexual orientation and lifestyles within our community and take great care to consider their views without compromising the integrity of our offering. We clearly sign any event that may cause offence and use our complaints policy to ensure the community voice is heard.

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HORSEBRIDGE ARTS AND COMMUNITY CENTRE

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Key Strategies

To deliver the operational activities of the centre we are guided by key strategies, built upon our charitable purpose, objects and aims. These are periodically reviewed and refined by the board and senior staff team to incorporate changing operational environments and strategic policy changes. The strategies are to:

ACHIEVEMENTS AND PERFORMANCE

Like many other cultural venues this year has been a difficult year with the centre being physically closed to the public for a considerable portion of the year. Despite that there have been encouraging successes and an opportunity to reflect and continue the evolution of the centre spaces.

Creative Development

The Covid-19 pandemic created a need for a different approach to creative development. With the centre physically closed to the general public for all but two months much of our engagement moved online. This Connection In Isolation initiative was led by volunteers during the first lockdown and bought a range of participatory activities that were all part of our re-opening celebration in October. This exhibition along with Post Hope and Build a Rainbow projects showed the strength of community cohesiveness throughout the pandemic. Despite the pandemic the young leaders who proactively led the Young History Makers project funded by Young Roots Heritage Lottery Fund were all able to achieve their Silver Arts Award. These young people aged 12-23 helped to deliver not just workshops and an exhibition, but took part in work placements and training to achieve their Arts Award qualifications. The closures presented an opportunity to reach new audiences in different ways and diversify the way we engage with our community.

Visual arts

The programme of visual arts exhibitions was postponed to 2021 on the whole, with just two inhouse curated shows being the only opportunities possible. The 2021 programme led by our Deputy Director certainly looks to reflect the breadth of artistic quality available to us in the district and beyond, giving something to look forward to.

Connection In Isolation started as a series of creative remote activities delivered by volunteers to use our digital media channels to help combat feelings of isolation within the community during the first lockdown. Activities included: 1 Minute Outside, where the community captured a minute of their hour of exercise to share with those confined to their homes; Virtual Young Makers, popular children's after school club released as a series of videos; Creative Challenges, debate and discussion as well as visual arts based challenges; Connecting Creatives, sharing information on creatives we work with and how to access their classes and products online; and Virtual Exhibitions, taking some planned exhibitions online and expanding their remit including our Instagram Community sourced project. The initiative culminated in a showcase multimedia exhibition for the reopening of the centre showcasing the work and featuring other local organisations from this period, along with the work of individual artists, who developed new work in response to the unprecedented and sudden changes in their lives.

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HORSEBRIDGE ARTS AND COMMUNITY CENTRE

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Post Hope project was launched in September to be part of the re-opening, and ended up taking us through two lockdowns. The postcards with messages and manifestations of hope filled the gallery windows to engage with the community walking past and were shared on our social media for those confined indoors. During the next closure in November the Build a Rainbow creative community project launched, delivering kits to those isolating to make enough rainbows to take over the gallery space in February 2021. The project worked with local Age UK, SNAAP, care homes, children's groups and more, inspiring the community to create their own rainbows to hang. Ultimately the exhibition had to wait until May 2021, but the demand to participate and share memories and give thanks was incredible.

Before the extended closure from the end of December the Christmas Makers Market took over the centre. The exhibition spaces showcased locally made gifts, accessories, art and cards alongside decorations and cards made by volunteers. As one of the few buildings in the town with space to hold the event safely it was well received by community and creatives alike.

Professional Development Opportunities

We had hoped to continue to build on the work from previous years to commission, employ and provide development opportunities for artists and creatives in the region. Our focus instead was on delivering as much exposure to the artists and creatives we regularly work with and through the Christmas Makers Market we enabled an opportunity for creatives to sell work and introduced new creatives to our audience.

Learning and Participation

As we were unable to host classes in the centre much of the participation this year took place online and through kits delivered to homes. The circumstances created by the pandemic and the anticipated change in need in the community in the next year has accelerated plans to deliver financially accessible arts learning opportunities within the centre. The intention is to utilise the incredible wealth of skill in our local artist and creative community to deliver free or 'pay what you can' learning opportunities alongside an extended paid-for education programme. Artists will have the opportunity to develop further professionally and share their skills and passion for their craft, providing alternative income possibilities in a difficult time.

Community Spaces

The pandemic created an opportunity to review the use of spaces alongside the aim to deliver an even more accessible learning programme. A room for hire, formerly an office space, that wasn't achieving income levels needed was identified as a perfect place for a digital creating space. A successful grant application secured necessary funding and at the end of the year we launched our Creative Digital Hub, a space that will grow to be dedicated to the creation and delivery of digital content. Featuring professional level printing, computing and recording equipment, the suite will allow for a wider range of education opportunities in skills that have a high financial barrier to entry.

Early next year a new learning and creative space, The Studio, will open alongside the existing education space. The Studio will deliver an open plan space with built-in sinks and wet space to significantly increase the diversity of learning opportunities that can take place in the centre. This space will be the cornerstone of our accessible education programme and a creating space with running water has been missing from the centre for years. These two new spaces will complement the existing education, meeting and performance spaces for hire. The studio is being created in the space previously used as a cafe following the termination of our Service Level Agreement with Cafe Revival.

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HORSEBRIDGE ARTS AND COMMUNITY CENTRE

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Communications and Digital Engagement

This year saw reliance on all digital channels to reach our audience. Our website remains our primary channel for consistent communications with the wider community, a place to find out what is on and book and is developing as an archive for the work we have carried out. Facebook continues to have higher engagement levels and drives most traffic to the website. Instagram has grown significantly and our content naturally lends itself to this visual medium.

Use of social media needs to become more sophisticated: restricted staffing levels make this difficult at present, but is something that forms part of the strategy for the centre going forward. All printed materials were removed from production this year and we are reflecting on their use going forward, but we are mindful of the breadth of our audience and placing too much reliance on digital only communication.

Audience Development

The centre was only open to the public in October and December for exhibitions and the shop, with a small number of classes running during September. Measuring of visitors was limited to ensuring maximum visitors in the building were not breached rather than volume or demographic measurements. No booked events were run during the period, so no postcode extraction has been possible. As visitors were required to use NHS Track and Trace, asking for more information while trying to encourage visitors was not a priority. The focus was on social re-engagement and ensuring the centre stayed Covid secure.

Audience development for 2021 onwards will be influenced by the impacts of Covid-19 on the community. We will seek opportunities to provide an even more accessible arts space for all, with barriers such as isolation and affordability taking priority, as we have directly seen the impact on the older population and young people. We will enable the arts centre to be a place to socially engage and immerse in arts experiences without financial barriers to participation, alongside providing a platform for creatives who have been hit hard by the pandemic. Events that focus on bringing these two groups together have been successful in the brief opportunities presented in 2020 and growing this connection across the community will be critical going forward.

This year presented many opportunities where we were able to work with other community organisations to reach those most in need. We continue to build upon this and strengthen our outreach by working with groups including Red Zebra, Umbrella Centre and Café and Whitstable Community Museum Group. We look forward to returning to pre-pandemic partnership working with local schools to ensure that the opportunities we offer reach their most disadvantaged pupils, and providing space for the schools creative work to be shown within a professional setting.

Commercial Trading Activities

The Horsebridge Shop continues to be an area of strength for the Centre, both in revenue and in community engagement. Difficulties in stock availability and only being physically open for two months has made growth in this area difficult and postponed plans to take some of the shop content online. The closure of the centre did allow for the planning and redesign of the shop space, which was installed completely by volunteers in May 2021 and was combined with a new stock control and till system to enable significant growth of range to be possible. Continuing to grow the Horsebridge commissioned products, expanding the variety of local artist created merchandise and improving the shopping experience are all underway in 2021.

Volunteers

The Centre is very involved in the community and volunteer support over this 12 month period has been incredible. Throughout the pandemic our dedicated staff team worked closely with all our volunteers enabling a greater depth of support than has been possible before. As we re-open fully again we will be reliant on the team of volunteers to help the staff team keep the centre growing from strength to strength. We wish to thank them for all their support this year and we always welcome more volunteers.

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HORSEBRIDGE ARTS AND COMMUNITY CENTRE

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Workforce

As for most workforces this year, it has been a difficult balance with some team members working tirelessly throughout the pandemic whilst others found themselves frustratingly, but necessarily, furloughed and unable to work. There were adjustments needed by the whole team as new systems were put in place and the centre being allowed to open was uncertain, but the small, dedicated team have risen to the challenge and have supported our visitors in a friendly and efficient manner. As we look to the next year and beyond there will be more changes and demands placed on the team as the offer evolves, but we have every confidence in the team's ability to adapt and remain united in the desire to deliver a flagship arts space for our community.

Strategy and Development

Much of the last year has been spent fighting for the financial survival of the arts centre and ensuring we applied for critical grants to take us, not just through this year, but also acknowledging that significant reserves would be needed for the year to follow at a minimum. The experiences of this year have underlined a desire to engage with meaningful digital delivery alongside existing delivery channels by our audience, whilst being mindful that we do not increase isolation by a reliance on technology only solutions. The period has driven change that would not have been possible while the centre was open to the public and continuing the momentum for improvement alongside the community we serve is a challenge the centre team is relishing. The next 18 months for visual arts is already well planned and our focus will be on developing the learning programme and making the most of the dedicated spaces we have worked hard to establish. We will build on the growth in breadth of audiences we have reached this year and ensure we are offering quality arts opportunities that can make a difference to the lives of our audience.

The pandemic has shown how well we can work outside of our physical space and this is something we will build on over the coming years. Working with care homes has shown how we can take our world into their homes and create meaningful experiences. If we are to truly create arts for all, then it is vital that we breakdown the barriers to access and our immediate development goals will focus on the physical, financial and social barriers.

We will continue to drive for high quality and thought-provoking exhibitions in our public gallery spaces and push to tie these further into a cohesive learning programme. We will build on existing cultural and creative partnerships to bring new experiences to the community throughout the centre, pushing beyond the boundaries of the physical space and making more use of the environment we reside in. To achieve this, we need to ensure we have a board and staff team that feel equipped to meet the challenge and have sufficient capacity and training to deliver effectively.

FINANCIAL REVIEW

The Horsebridge Arts Centre key financial aim is to deliver a financial stable, diversified and secure organisation each year. The overview for the 2020/21 financial year is as follows:

Total Income 309,219
Total Expenditure 184,233
Net Income 124,986
Total funds brought forward (38,077)
Reserves stand at 86,909

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HORSEBRIDGE ARTS AND COMMUNITY CENTRE

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Review of financial performance against forecasts is complicated for the year due to 80% of income directly attributable to unrestricted grant funding to support the centre being closed for 10 of the 12 months. Grant support, particularly from Arts Council England and Government funding, has made it possible to build up reserves to withstand the anticipated ongoing impact of Covid-19 on our ability to earn income next year. In addition, we were able to secure over £36,000 in restricted funding to continue to deliver and develop our community creative programmes throughout the year and look to continue this next year.

Whilst analysis of trading activities is not clear cut, both room hire and the shop achieved proportional budget targets for the two months the centre was able to open. Review of rental usage enabled the longer-term rental of one small meeting room as office space for a local company towards the end of the year. This helps to stabilise room hire income for next year, particularly with anticipated disruption continuing from Covid-19. The shop, despite facing issues with stock availability, still managed to achieve targets and it is anticipated to continue to be a growth area for the charity.

Principal funding sources

The Horsebridge usually generates income from the hire/rental of galleries and workshop spaces, a small number of events and in-house activities, commercial trading activities mainly through the retail space and other sundry income including membership and commission. This year funding was principally through Covid support grants.

Canterbury City Council funding

The Improvement Grant and associated agreements was in its last year this year; going forward we will need to seek project based support which cannot be guaranteed. We will continue to operate under the lease for the building for the next 30+ years, but will be exposed to building maintenance costs that have been part of the Improvement Grant agreements. The board remain acutely aware of the pressures on local council budgets and significantly reduced funds available for the arts, particularly as the fallout from funding COVID-19 responses impact local authority budgets for 2021 onwards.

Fundraising

Grants

The team were successful in securing grant funding to support vital community engagement projects between lockdowns and also to support crucial changes to the systems and spaces to enable improvements in income streams in the next year. The ability of the team to secure sufficient grant funding to ensure our survival through this difficult year highlights the continued growth in their ability to deliver projects that fit with the needs of our community, particularly the young and older more isolated, and the need for the arts centre in the district. We will continue to look for funding to allow us to continue the community work that has been so successful this year.

Friends membership

We are incredibly grateful to the Friends that, despite our closure, renewed their membership this year. Understandably this area of fundraising, like donations, relies on the centre being open for the vast majority and we shall look forward to growing the membership again in 2021-22.

Investment Policy

The Trustees operate a policy of holding any reserves held in an interest-bearing savings account.

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HORSEBRIDGE ARTS AND COMMUNITY CENTRE

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Reserves Policy and Going Concern

The reserves policy is reviewed annually as a minimum, in production of the annual report, with financial monitoring of the cashflow and balance sheet occurring on a monthly basis at senior management level and bi-monthly at board level.

The reserves policy makes clear the funds of the charity are divided into restricted funds and unrestricted funds in accordance with charity legislation. The charity’s reserves are that part of the charity’s unrestricted funds that are freely available to spend on any of the charity’s purposes.

Our goal is to create free reserves of sufficient funds to cover up to three months operating costs. This will provide for working capital and to ensure services can remain fully funded for short periods of time and any cancelled advance hires can be refunded.

The charity operates with generally predictable levels of unrestricted funds income and steady cash receipts and payments, but with high levels of fixed costs. Unrestricted funds are not reliant on any single source, with the large majority self-generated through hire, sales and donations. The organisation is not reliant on a single funder for more than 20% of its income, with aims to reduce this in future years.

The Trustees will also designate funds for specific purposes:

The trustees are confident the charity will remain a going concern in the coming twelve months, for the following reasons: the trustees have projected forward the charity's budget and cashflow position to 31 March 2022 which shows a positive balance sheet position; the charity has sufficient reserves to support anticipated net losses for the 2021-22 year; projected income is not reliant on any single source, and is secured from a mix of self-generated income from hire, sales and donations, in addition to grant income; cashflow is monitored in detail on a weekly basis to ensure liabilities are settled: this monitoring will continue in the coming year.

Plans for the Future

The Horsebridge Centre's board and team remain committed to delivering a sustainable arts centre for the district. With the end of the Improvement Grant, financially the focus is on generating sufficient income to cover the high levels of fixed costs, made more complex by the pandemic. The support from grant funding through this year has enabled key changes to be made to reduce our reliance on inconsistent or neutral generated income streams and diversify further. These changes have also enabled us to plan to increase the breadth of our offer to our community based on the engaging projects we were able to run this year.

Increasing the income from grant funding, both core-cost funding and project based restricted funds, will be critical next year if the Centre is to avoid substantially depleting reserves. Continuing to be innovative in our outreach programmes and the benefits they deliver will be key alongside significantly enhancing the learning opportunities within the Centre across our digital and studio spaces. Building on these and increasing the diversity of the audience we serve will be closely monitored over the next year constraints from the pandemic allowing.

Investment this year in a new system and furniture for the shop will support us in continuing to grow this area of our commercial trading. The Horsebridge Centre will continue building on the development strategies for the gallery spaces increasing quality for visitors and broadening the accessibility for exhibitors in these spaces. The exhibitions and programmes planned for 2021 and beyond are developing the mediums explored in the spaces and allowing for enhanced programming to be delivered around them.

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HORSEBRIDGE ARTS AND COMMUNITY CENTRE

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Fundamentally we will continue to develop the Centre as a resource to enrich the lives of the local community whilst attracting seasonal visitors and expanding our customer and friends base.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Horsebridge Arts and Community Centre is a charitable company limited by guarantee, incorporated on 8 April 2003 and registered as a charity on 22 September 2003. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £1. The directors of the company are also charity Trustees for the purposes of charity law and under the company's Articles are known as Trustees.

Recruitment and appointment of the Board of Trustees

Under the requirements of the Memorandum and Articles of Association there shall be not less than six and not more than twelve Trustees. One third of the Trustees must retire at each AGM, those longest in office retiring first.

Membership of the charity is open to any individual or organisation interested in promoting its objects. A new protocol is in place for recruiting and selecting Trustees and there is the intent next year to grow the board following this process. Potential trustees are invited to meet with the Chair and/or Vice Chair as part of this process.

The Trustees may at any time co-opt any person duly qualified to be appointed as a Trustee to fill a vacancy in their number or as an additional Trustee, but a co-opted Trustee only holds office until the next AGM. At an AGM the members elect persons to be Trustees to fill the vacancies.

Trustee Induction and Training

New Trustees will meet with the Chair and/or Vice Chair and are provided with an induction pack on 'Being a Trustee of the Horsebridge Arts and Community Centre' which explains the aims of the Horsebridge, and the nature and responsibilities of the Trustee role. Further information, including a copy of the Memorandum and Articles of Association and current financial information, is provided. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. We will continue to develop the induction and performance review processes for Trustees in the coming year.

Risk Management

Policies and process continue to be reviewed to achieve best practice within the organisation. Changes in personnel and supporting technology have significantly improved our financial processes. An analysis of our financial position is available to the board on a monthly basis, with weekly financial reviews within the management team. The board and senior management team monitor the organisational and operational risks and operational efficiencies to make the best use of our resources. The board continues to consider impacts of Covid-19 pandemic measures on grant availability. Work continues on a more formal risk management strategy.

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HORSEBRIDGE ARTS AND COMMUNITY CENTRE

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Organisation

The Board of Trustees meets bi-monthly (plus additional meetings as required) and has control of the Charity and its property and funds.

The Executive Director has day-to-day responsibility for the provision of services in line with the policies and plans agreed by the Board. The Executive Director, Finance Manager and Deputy Director form the senior management team. The Executive Director and Deputy Director supervise the staff team, which consists of one full-time and nine part-time staff as well as some casual staff who provide cover in busy times. The Centre also has a number of regular and dedicated volunteers who provide staffing for our reception desk, events and in maintaining the Centre.

Related Parties

None of our Trustees receive remuneration or other benefit from their work with the charity. Any conflict of interest faced by a Trustee must be declared. There have been no such declarations in the current year.

Trustees' responsibilities in relation to the financial statements

The Trustees confirm that the annual report and the financial statements of the company comply with the current statutory requirements of the company’s governing document and the provisions of the Charities SORP (FRS 102) and the Companies Act 2006.

Signed by order of the trustees on 13 December 2021 by:

Mrs Z A Cloke

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INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF

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HORSEBRIDGE ARTS AND COMMUNITY CENTRE

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2021 which are set out on pages 12 to 23.

Responsibilities and basis of report

As the charity's trustees of the Company (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

Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

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:

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.

S J Wren FCCA Accountancy Matters (Kent) Limited Chartered Certified Accountants 31 Queen Street Ramsgate Kent CT11 9DZ

Date : 14 December 2021

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

Page 12

STATEMENT OF FINANCIAL ACTIVITIES (incorporating an Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2021

Notes Unrestricted
funds
£
INCOME
Income from charitable activities
2
152,723
Income from other trading activities
3
17,505
Donations
4
101,786
Investment income
9
TOTAL INCOME
272,023
EXPENDITURE
Costs of raising funds
5
26,883
Charitable activities
5
141,063
TOTAL EXPENDITURE
167,946
NET (EXPENDITURE)/INCOME FOR THE YEAR
BEFORE TRANSFERS
6
104,077
Transfers between funds
13
2,869
NET MOVEMENT IN FUNDS FOR THE YEAR
106,946
Balance as at 1 April 2020
(48,468)
BALANCE AT 31 MARCH 2021
58,478		 Restricted
funds
£
36,115
-
1,081
-
37,196
350
15,937
16,287
20,909
(2,869)
18,040
10,391
28,431		 Total
Total
funds
funds
2021
2020
£
£
188,838
188,302
17,505
48,710
102,867
27,876
9
4
309,219
264,892
27,233
34,745
157,000
226,234
184,233
260,979
124,986
3,913
-
-
124,986
3,913
(38,077)
(41,990)
86,909
(38,077)

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

Page 13

BALANCE SHEET AS AT 31 MARCH 2021

Notes
FIXED ASSETS
Tangible assets
8
Investments
9
CURRENT ASSETS
Stock
Debtors and prepayments
10
Cash at bank and in hand
CREDITORS: amounts falling due within
one year
11
NET CURRENT LIABILITIES
CREDITORS: Amounts falling due after more
than one year
NET ASSETS/(LIABILITIES)
12
Represented by:
FUNDS OF THE CHARITY
Unrestricted general fund
13
Designated funds
13
Restricted funds
13
TOTAL FUNDS		 5,097
23,754
102,217
131,068
(52,903)		 2021
£
8,744
-
8,744
4,114
12,509
1,461
18,084
(61,304)
78,165
86,909
-
86,909
34,734
23,744
28,431
86,909		 2020
£
5,142
1
5,143
(43,220)
(38,077)
-
(38,077)
(48,468)
-
10,391
(38,077)

For the financial year ended 31 March 2021 the company was entitled to exemption from audit under s.477 Companies Act 2006 and no members have deposited a notice under s.476 requiring an audit.

The directors acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with s.386 of the Act for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its profit or loss for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

The accounts are prepared in accordance with the provisions applicable to companies subject to the small companies' regime in part 15 of the Companies Act 2006 relating to small companies and in accordance with the Charities SORP (FRS 102).

Approved and signed for issue by the trustees on 13 December 2021.

Mrs Z A Cloke Mr S A Lawton

Company number - 04727071

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 ACCOUNTING POLICIES

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 the Republic of Ireland FRS 102 (effective 1 January 2019) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102 and the Companies Act 2006.

Horsebridge Arts and Community Centre 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 note.

The principal accounting policies adopted are as follows:

a) Preparation of the accounts on a going concern basis

The trustees are confident the charity will remain a going concern in the coming twelve months, for the following reasons: the trustees have projected forward the charity's budget and cashflow position to 31 March 2022 which shows a positive balance sheet position; a programme of fundraising additional income from grants has been successful in securing significant sources of grant income for projects and contributions to existing running costs to mitigate the loss of income from temporary Covid-19 related closures in 2020; projected income is not reliant on any single source, and is secured from a mix of self-generated income from hire, sales and donations, in addition to grant income; cashflow is monitored in detail on a weekly basis to ensure liabilities are settled: this monitoring will continue in the coming year.

b) Income

Fees receivable - are included when the Charity is legally entitled to the income, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably. As from 1 April 2017, income receivable where part, or all of such income is legally due to a third party, has been reduced by the amount payable to the third party.

Grants receivable - grants made to finance the activities of the Charity are credited to the Statement of Financial Activities (SOFA) in the period to which they relate.

Other income - other income, including donations and gifts are included as they were received.

Deferred income - income received in advance of the period to which it relates is reflected in deferred income within the balance sheet.

c) Expenditure

All expenditure is accounted for on an accruals basis and includes VAT where applicable. All expenditure directly related to the provision of service delivery is included within the charitable expenditure. Other costs incurred have been allocated between activities for generating funds and governance as appropriate. Where such costs relate to more than one functional cost category they have been split on an estimate of time spent.

d) Depreciation of fixed assets

Tangible fixed assets costing more than £200 are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows :

Fixtures, fittings and equipment

20% straight line

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

Page 15

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 ACCOUNTING POLICIES

e) Stock

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

f) Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Income received for restricted purposes is included in a separate restricted fund against which appropriate expenditure is allocated.

g) Pensions

The pension cost charge in the Statement of Financial Activities represent the contributions payable by the Charity in the relevant year.

h) Significant judgements and estimates

No significant judgements or estimates have had to be made by the Trustees in preparing these financial statements.

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

Page 16

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2
INCOMING RESOURCES FROM CHARITABLE ACTIVITIES
Unrestricted
funds
£
Grants :
Canterbury City Council
35,000
Big Lottery Fund
-
National Lottery Awards for All
-
National Lottery Heritage Fund
-
National Lottery Community Fund
The Henry Smith Charity
-
Colyer-Fergusson Charitable Trust
Kent Community Foundation
Arts Council England
110,000
Fees receivable :
Venue hire
7,723
Box office income
-
Inhouse activities
-
152,723
3
INCOME FROM OTHER TRADING ACTIVITIES
Unrestricted
funds
£
Rental income
3,755
Advertising income
2,040
Shop income
5,067
Café income
4,317
Commission from third party sales
-
Membership income
2,210
Auction
-
Sundry income
116
17,505
4
DONATIONS AND GRANTS
Unrestricted
funds
£
Donations
1,955
Grants:
Canterbury City Council
41,572
Coronavirus Job Retention Scheme
53,259
Garfield Weston Foundation
5,000
Thurrock Council (SECCADS)
-
Canterbury Arts Council
-
David Family Foundation
-
The Foyle Foundation
-
Cleary Foundation
-
WH Smith
-
Whit & Herne Bay Lions
-
101,786		 Restricted
funds
£
-
-
-
4,990
9,304
8,000
5,000
8,821
-
-
-
-
36,115
Restricted
funds
£
-
-
-
-
-
-
-
-
-
Restricted
funds
£
-
-
-
-
1,081
-
-
-
-
-
-
1,081		 2021
Total
funds
£
35,000
-
-
4,990
9,304
8,000
5,000
8,821
110,000
7,723
-
-
188,838
2021
Total
funds
£
3,755
2,040
5,067
4,317
-
2,210
-
116
17,505
2021
Total
funds
£
1,955
41,572
53,259
5,000
1,081
-
-
-
-
-
-
102,867		 2020
Total
funds
£
46,000
11,605
9,836
44,910
-
-
-
3,500
-
67,522
3,346
1,583
188,302
2020
Total
funds
£
7,190
6,130
25,074
979
148
3,601
4,036
1,552
48,710
2020
Total
funds
£
6,126
-
-
-
-
(150)
10,000
10,000
1,500
200
200
27,876

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

Page 17

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

5 TOTAL RESOURCES EXPENDED

Costs of activities for generating funds :
Shop purchases
Wage costs
Legal and professional fees
Café closure costs
Publicity
Service delivery costs
Wage costs
Event and activity costs
Rates and water
Light and heat
Repairs and maintenance
Cleaning and waste
Travelling costs
Licences and memberships
Insurances
Support costs
Wage costs
Bad debts
Welfare and training
Telephone
Postage and stationery
IT and equipment costs
Bank and credit card charges
Loan charges and interest
Payroll fees
Bookkeeping software
Legal and professional fees
General expenses
Depreciation
Loss on disposal of fixed assets
Governance costs
Wage costs
Independent Examiner's fee		 Unrestricted
funds
£
5,661
6,705
12,287
-
2,230
26,883
65,707
256
4,445
10,021
620
2,496
35
1,003
1,822
37,702
812
-
2,087
74
1,372
984
67
1,920
259
13
57
3,442
-
4,189
1,680
141,063
167,946		 Restricted
funds
£
-
-
-
-
350
350
12,358
1,197
-
-
426
-
166
-
-
-
-
348
-
213
1,229
-
-
-
-
-
-
-
-
-
15,937
16,287		 2021
2020
Total
Total
funds
funds
£
£
5,661
11,463
6,705
7,102
12,287
-
-
6,053
2,580
10,127
27,233
34,745
78,065
105,608
1,453
28,511
4,445
6,418
10,021
14,034
1,046
805
2,496
4,746
201
789
1,003
883
1,822
1,623
37,702
40,722
812
90
348
638
2,087
2,141
287
923
2,601
1,899
984
2,385
67
400
1,920
792
259
259
13
(387)
57
436
3,442
6,375
-
-
4,189
4,524
1,680
1,620
157,000
226,234
184,233
260,979

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

Page 18

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6 NET INCOME 2021 2020
£ £
This is stated after charging:
Depreciation 3,442 6,375
Independent Examiner's remuneration 1,680 1,620
7 INFORMATION REGARDING EMPLOYEES 2021 2020
£ £
Wages and salaries 121,280 142,366
Sub contract labour 589 6,194
Social security costs 5,428 7,444
Pension contributions 3,364 4,952
Employment Allowance (4,000) (3,000)
126,661 157,956
The average monthly head count was 11 staff (2020 - 12 staff).
The average number of employees based on full time equivalents analysed by function was:
2021 2020
Number Number
Service delivery 5 6
Management and administration 2 2
7 8

No employee received remuneration of more than £60,000.

No trustees received remuneration or expenses from the charity during the year (2020- £Nil).

The total employee benefits (including employers national insurance) of the key management personnel of the charity were £57,893 (2020 - £62,290)

TANGIBLE FIXED ASSETS
Cost
As at 1 April 2020
Additions
Disposals
As at 31 March 2021
Depreciation
As at 1 April 2020
Charge for the year
Eliminated in disposals
As at 31 March 2021
Net book value
As at 31 March 2021
As at 31 March 2020		 £
40,821
7,044
-
47,865
35,679
3,442
-
39,121
8,744
5,142
Fixtures
equipment
fittings &		 Total
£
40,821
7,044
-
47,865
35,679
3,442
-
39,121
8,744
5,142

8 TANGIBLE FIXED ASSETS

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

Page 19

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9 INVESTMENTS 2021 2020
£ £
Cost - 1

The investment was in respect of the charity's 100% owned subsidiary- Horsebridge Café Limited, a company registered in England. The company's principal activity was the operation of a café at The Horsebridge Centre.

Horsebridge Café Limited ceased trading on 31 May 2019 and the final statutory accounts have been prepared for the period from 1 April 2018 to 31 May 2019. During the year, the Trustees requested that the company be struck off and the company was dissolved on 29 September 2020.

10 DEBTORS
Trade debtors
Other debtors
Prepayments
Accrued income		 2021
2020
£
£
8,617
4,980
-
-
2,348
6,359
12,789
1,170
23,754
12,509
11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank overdraft
Trade creditors
Taxation and social security
Other creditors
Loan - Kent Community Foundation
Accruals
Deferred income		 2021
2020
£
£
-
6,726
12,402
20,349
1,423
1,070
542
1,489
-
1,467
11,190
7,813
27,346
22,390
52,903
61,304

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

Page 20

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12 ANALYSIS OF NET ASSETS BETWEEN FUND

General Designated
funds
funds
£
£
Fixed assets
-
8,744
Current assets
87,637
15,000
Current liabilities
(52,903)
-
Long term liabilities
-
-
Net assets as at 31 March 2021
34,734
23,744
ANALYSIS OF NET ASSETS BETWEEN FUND - PREVIOUS YEAR
General
funds
£
Fixed assets
5,142
Investments
1
Current assets
7,693
Current liabilities
(61,304)
Long term liabilities
-
Net assets as at 31 March 2020
(48,468)
13 MOVEMENT IN FUNDS
As at
Income Expenditure
1 04 2020
£
£
£
Restricted funds
The Henry Smith Charity
-
8,000
(108)
National Lottery Awards for All
3,636
-
(35)
National Lottery Heritage Fund
(2,179)
4,990
(2,831)
National Lottery Community Fund
-
9,304
(7,578)
Colyer-Fergusson Charitable Trust
-
5,000
(5,000)
The David Family Foundation
8,338
-
-
SECCADS (Thurrock Council)
-
1,081
(139)
Kent Community Foundation
-
5,250
-
Kent Community Foundation
-
3,571
-
Kent Community Foundation
596
-
(596)
Total restricted funds
10,391
37,196
(16,287)
Designated funds
Fixed assets fund
-
-
-
Development & Sustainability fund
-
-
-
Total designated funds
-
-
-
Unrestricted general funds
(48,468)
272,023
(167,946)
Total funds
(38,077)
309,219
(184,233)		 Restricted
funds
£
-
28,431
-
-
28,431
Restricted
funds
£
-
-
10,391
-
-
10,391
Transfers
£
-
(221)
20
(1,726)
-
-
(942)
-
-
-
(2,869)
8,744
15,000
23,744
(20,875)
-		 Total
£
8,744
131,068
(52,903)
-
86,909
Total
£
5,142
1
18,084
(61,304)
-
(38,077)
As at
31 03 2021
£
7,892
3,380
-
-
-
8,338
-
5,250
3,571
-
28,431
8,744
15,000
23,744
34,734
86,909

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

Page 21

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

RESTRICTED FUNDS

The Henry Smith Charity

The funds were awarded for a Young Digital Makers project, helping young people with digital and creative skills. The project was delayed due to the Covid-19 pandemic but is planned to be completed in 2021/22.

National Lottery Awards for All

The grant was used to deliver Silver Screenings Matinees, affordable film screenings for older and other potentially isolated people. The funds were used for staff costs, new equipment, film licence costs and refreshments. The transfer to general funds is in respect of equipment purchased and is included within fixed assets. The project was delayed due to the Covid-19 pandemic but it is planned to be completed in 2021/22.

National Lottery Heritage Lottery Fund

The funds were used to deliver a project entitled Pudding Pan Rock, a rediscovery of local heritage by young people. The project connected local young people with Roman and later history, centred around the 'pudding pans', Roman Samian ware pots found by local fishermen. Funds were used for staff costs, professional fees, materials and running costs. The project was completed in April 2020. A transfer from general funds has been made to cover a small overspend.

National Lottery Community Fund - Coronavirus Community Support Fund

The funds were awarded for the Community Rainbow Project, a creative art activity taking place within the local community to provide support during the Covid-19 pandemic. The funds were spent on staff costs, equipment, materials and running costs. The transfer to unrestricted funds is in respect of fixed assets purchased during the year.

Colyer-Fergusson Charitable Trust

The funds were awarded for a Connect in Isolation project during the Covid-19 pandemic, providing a series of community arts projects. The funds were spent on staff costs.

The David Family Foundation

The funds contribute towards a programme of in-house curated exhibitions at the Horsebridge Centre. Funds cover staff costs, materials and the use of exhibition space. The project was delayed due to the Covid-19 pandemic but is planned to be completed in 2021/22.

SECCADS (Thurrock Council)

The South East Creative, Cultural and Digital Sector (SECCADS) Programme is part funded by the European Regional Development Fund and is a partnership between a group of local authorities led by Thurrock Council. The grant was used to purchase e-commerce and audio-visual equipment to launch an online shop and recording studio. The transfer to unrestricted funds represents a contribution towards fixed assets purchased during the year.

Kent Community Foundation - Strategic Recovery Fund

The funds were awarded to assist the Horsebridge to adapt its fundraising strategy as a result of the Covid-19 pandemic, in order to run more creative art programmes and become more financially sustainable. The work was planned to be completed in 2021/22.

Kent Community Foundation - Children, Young People & Families Theme (Young Makers Club)

The funds were awarded to run a Young Makers Club, providing creative after school sessions for children and families. The project was delayed due to the Covid-19 pandemic but is planned to be completed in 2021/22.

Kent Community Foundation

The funds, from The Kent Community Foundation Crown Charitable Fund were used for a programme of workshops and an exhibition for a group of people with learning disabilities. The project was delivered in partnership with IO Arts, History and Disability.

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

Page 22

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

DESIGNATED FUNDS

Fixed assets fund

A fund created by Trustees representing the net book value of the charity's fixed assets at the balance sheet date. Although they are within general funds, the value of the assets cannot be utilised for future expenditure.

Development & Sustainability fund

A fund created by the Trustees to cover future losses arising from Covid-19 and to support financial sustainability.

MOVEMENT IN FUNDS - PREVIOUS YEAR

Restricted funds
The Henry Smith Charity
The Foyle Foundation
National Lottery Awards for All
National Lottery Heritage Fund
Big Lottery Fund
Canterbury Arts Council
The David Family Foundation
Handmade Christmas project
Whitstable Seaside Guide
Kent Community Foundation
Total restricted funds
Unrestricted general funds
Total funds		 As at
1 04 2019
£
410
-
-
-
8,293
-
-
-
-
-
8,703
(50,693)
(41,990)		 Income Expenditure
£
£
-
(406)
10,000
(6,738)
9,836
(3,252)
44,910
(41,098)
11,605
(18,905)
(150)
-
10,000
(1,047)
300
(295)
2,100
(2,101)
3,500
(2,568)
92,101
(76,410)
172,791
(184,569)
264,892
(260,979)		 Transfers
As at
31 03 2020
£
£
(4)
-
(3,262)
-
(2,948)
3,636
(5,991)
(2,179)
(993)
-
150
-
(615)
8,338
(5)
-
1
-
(336)
596
(14,003)
10,391
14,003
(48,468)
-
(38,077)

RESTRICTED FUNDS - PREVIOUS YEAR

The Henry Smith Charity

The grant was used towards the Young Digital Makers project, a programme of digital creative activities created by and for disadvantaged young people in and around Whitstable and Herne Bay. The funds were used for staff costs, running costs and equipment.

The Foyle Foundation

The grant was used for They Came from the Deep, a summer creative project for young people. The funds were used for staff costs, workshops, materials and a gallery exhibition. The transfer to general funds is a contribution towards the premises costs.

National Lottery Awards for All

The grant was used to deliver Silver Screenings Matinees, affordable film screenings for older and other potentially isolated people. The funds were used for staff costs, new equipment, film licence costs and refreshments. The transfer to general funds is in respect of equipment purchased and is included within fixed assets.

HORSEBRIDGE ARTS AND COMMUNITY CENTRE

Page 23

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

RESTRICTED FUNDS - PREVIOUS YEAR

National Lottery Heritage Lottery Fund

The funds were used to deliver a project entitled Pudding Pan Rock, a rediscovery of local heritage by young people. The project connected local young people with Roman and later history, centred around the 'pudding pans', Roman Samian ware pots found by local fishermen. Funds were used for staff costs, professional fees, materials and running costs. The project was completed in April 2020 and the deficit on the fund was met from an agreed final grant payment from the funder in 2020/21, after the project ended. A transfer to general funds has been made to cover premises and other administration costs of the project.

Big Lottery Fund - Young Digital Makers

The grant from the Big Lottery Fund is used to deliver a programme of digital making activities (creative uses of technology) created by and for disadvantaged local young people. The funds are used to employ a project manager and to cover running expenses and equipment. The transfer to general funds is in respect of a contribution towards the premises costs.

Canterbury Arts Council - Think of Me project

The funds were used to run children's workshops for the Think of Me project.

The David Family Foundation

The funds contributed towards a programme of in-house curated exhibitions at the Horsebridge Centre. Funds covered staff costs, materials and the use of exhibition space. The transfer to general funds represents a contribution towards the charity's premises costs. The project continued in 2020/21.

Handmade Christmas project

The funds, from Whitstable and Herne Bay Lions (£200) and WHSmith (£100), contributed towards the production of handmade Christmas decorations, made by local volunteers, which were sold to the public. Funds covered materials costs.

Whitstable Seaside Guide

The funds, from The Cleary Foundation (£1,500), WHSmith (£100) and Robert Brett and Sons (£500) contributed towards the production of an illustrated guidebook for children, families and anyone interested in learning about the flora and fauna that live on local beaches. Funds were used towards design, printing, production and distribution costs.

Kent Community Foundation

The funds, from The Kent Community Foundation Crown Charitable Fund were used for a programme of workshops and an exhibition for a group of people with learning disabilities. The project was delivered in partnership with IO Arts, History and Disability.

14 MEMBERS LIABILITY

The company is a company limited by guarantee. The members' liability is limited to £1 each.

15 CORPORATION TAXATION

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

16 RELATED PARTY TRANSACTIONS

Horsebridge Café Limited, a 100% subsidiary undertaking of the charity, ceased trading on 31 May 2019 and the final statutory accounts were prepared for the period from 1 April 2018 to 31 May 2019. The Trustees have requested that the company be struck off and the company was dissolved on 29 September 2020.