CREATE- CHARITY OF THE YEAR 2020 CREATE (ARTS) LIMITED FINANCIAL STATEMENTS lor Ihc" year ended 31 MARCH 2021 IfF LINDEYER FRANCIS FERGUSON rc ## ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 ## Company Number 4728145 Charity Registration Number Chairman Chief Executive Company Secretary Treasurer Registered Office Email Telephone {London / Manchester) Website Facebook Instagram / Twitter Bankers Auditors 1099733 Eddie Donaldson OBE ## Nicky Goulder Vanessa Sharp Paul Thimont 379 Salisbury House London Wall London EC2M 5QQ info@createarts.org.uk N20 7374 8485 / 0161 521 0033 createarts.org.uk facebook.com/createarts.org.uk @createcharity The Co-operative Bank plc 1 Baltoon Street Manchester M60 4EP Lindeyer Francis Ferguson Limited North House 198 High Street Tonbridge Kent TN9 iBE aeeeSeSeFeeeeeeeeeeSeeeeSeSeeSSSSSSSSESe INDEX TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 **----- Start of picture text -----**
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## CREATE (ARTS) LIMITED ## Directors’ Report The Trustees, who are also Directors of the charity for the purposes of the Companies Act, submit their annual repart and the audited financial statements for the year ended 21 March 2021. The Trustees confirm that the report and financial statements of the charity comply with the current statutory requirements, the requirements of the company’s governing document, and the provisions of “Accounting and Reporting by Charities: Stazement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standerd applicable in the UK and Republic of Ireland (FRS 102}" (effective 1 January 2019) (Charities SORP (FRS 102). ## Objectives and Activities ## Charitable objects - 1) to advance and promote the education of the public in the knowledge. understanding and appreciation of the arts. 2) to promote the use of the arts, particularly the creative arts, as a way of: - a) relieving the needis of the poor, sick, disabled, elderly and young people who are in need of care and attention: - b) rehabilitation of offenders: c) relieving the needs of the unemployed. ## Vision For a fair, cating, equal, inclusive, sustainable society in which the creative arts play a transformative role in empowering every individuat to fu‘fil their potential. ## Mission To use the creative arts to connect, empower, inspire and upskil! society's most disadvantaged and vuinerable people, raising aspirations, building self-esteem, reducing isolatior and enhancing wellbeing. ## Core beliefs - « That everyone — regardless of circumstances, behaviour, age, gender, race or disability - deserves the chance to fulfil their potential. - ¢ That high-quality creative arts activities connect. empower, inspire and upskill, raising aspirations, building self-esteem. reducing isolation and enhancing wellbeing. - * That everyone has a role to play in makirg society fairer, more caring more inclusive and more sustainab.e. ## Values Create is a vatues-criven charity. Our values underpin the way we work with our participants, partners, people and community. They guide the decisions we make and the way we work. - « Creativity ~ encouraging a creative approach to every area of our performance - Excellence ~ seeking te attain the highest standards in all activities - « Valuing the individua\ ~ recognising and nurturing each individual's unique talents - Passion ~ being passionate in our motivations and performance - © Flexibitity ~ listening and responding creatively to all stakeholders’ needs - « Integrity ~ embedding integrity in all we do | : ‘ 4 | | | | ## CREATE (ARTS) LIMITED Directors’ Report {continued} ## Aims - e To tackle inequality by giving society's most disadvantaged and vulnerable people free access to the benefits of the creative arts. - e To engage participants in tailored projects led by exceptional professional artists in areas where provision is poor and engagement is low. - ¢ To listen to, advocate for and give a voice to participants. - ¢ Toconnect, empower, inspire and upskill participants, developing creativity, raising self-esteem, enriching lives, reducing isolation and enhancing weltbeing. - e To promote the value of creative arts engagement in achieving sociat outcomes. ® To provide high quality, fairly paid work and CPD to a diverse poo! of professional artists. e To create 6 saciety thal is fairer, more caring, more inclusive and more sustainable. Create is the UK's leading charity empowering lives, reducing isolation and enhancing wellbeing through the creative arts We know that unleashing creativity ignites imaginations, develops confidence and builds relationships. Like setting off a firework, our professionat artists light the touch paper and our participants discover newfound self-belief and a desire to try more, do more and be more. We are a national charity that champions local priorities by collaborating with our partners to tailor every project to each individual's needs. We believe that everyone — regardless of circumstances, behaviour, age. gender, race or disability - deserves the chance to fulfil their potential. Most projects are collaborations with community partners, which have specialist knowledge of local priorities and the participants that they exist to serve. Our focus is on engaging the most marginalised participants in inspiring, sustainable arts programmes — delivered in familiar settings where they feel comfortable and safe - in areas where provision is poor and engagement in the arts is therefore low. We prioritise our work with seven participant groups: young patients; disabled children and adults; young and adult carers; schoolchildren (and their teachers} in areas of deprivation; vulnerable older people: young and adult prisoners (and their families): and marginalised children and adults (eg homeless peopie, LGBTQ+ young people, refugees, and victims of domestic abuse). In response to the COVID-19 locxdown in March 2020, we designed Create Live!. a new project concept using Zoom to deliver high quality, live, interactive, collaborative creative workshops that are fun, build skills and reduce isolation. Since Create was founded in July 2003, we have run 11,076 creative arts workshops that have delivered 317,504 contact hours as part of sustained, life-changing programmes with 40,172 participants. Some of our programmes are developed and delivered in partnership with the business community, helping to meet their Corporate Responsibility priorities. Every project we deliver is riacrously evaluated because we're passionate about providing inspiring and empowering creative experiences that have a lasting impact. We also evaluate the longer-term impact of our work through the Making it Matter initiative, which revisits two projects each year, 6-24 months after they took place, We know from experience that drama can build an isolated young carer's self-esteem, that storytelling can strengthen the bond between a young offender and the loved ones waiting for him at home, and that music can help ease the anguish felt by the parent of a child with a li’e-limiting condition. One spark of creative energy opens up a world of positive opportunities. Create lights that spark. 2)) 2a ## CREATE (ARTS) LIMITED Directors’ Report (continued) ## Public Benefit In setting Create’s objectives and planning its activities, the Trustees have considered the Charity Commission's general guidance on public benefit. As noted elsewhere in this report. the charity's work is directed tewards the most disadvantaged and vulnerable people in society and outcomes for the public benefit are recorded here in detail. ## Project participants To fulfil Create’s commitment to working with the mast disadvantaged and vulnerable peopie, each potential community partner is carefully researched to assess the extent to which it enables the charity to meet this objective. Where applicable, Create uses poverty indices and government statistics on areas of deprivation to find the geegraphical areas of greatest need. When choosing schools, it also considers the percentage of children who bring pupil sremium / are entitled to free school meals {key poverty indicators), use English as an additional language or have special educational needs. The level of vulnerability of the participants is always a key consideration, as is the extent to which the community partner already benefits from provision by other external agencies. Create’s preference is to work with organisations that are under-served. In 2020/24, 2,303 participants benefited from Create’s projects. These included: young and adult carers: adults with mental ill-health; disabled children and adults; young refugees; LGBTQ+ young people; homeless adults; and vulnerable older people. Create worked with (where data provided): **----- Start of picture text -----**
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participants who are aged 60+
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## Volunteers 81 volunteers donated 649 hours of their time to Create: using their skills and enthusiasm to support participants in Create Live! workshops: and providing expert guidance as Trustees or Advisory, Communications, Creative or Development Council members. Pro bono communications support was donated by BrandFormula / WHJE, Contagious and Fat Beehive; consultancy by VCCP; and HR software by Breathe. 31 i **----- Start of picture text -----**
GREATE (ARTS) LIMITED
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Directors’ Report (continued) ## Achievements and Performance **----- Start of picture text -----**
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Thirty-three professionai Create artists ran 19 programmes (an umbrella body of work) within which 59
projects (a series of workshops with one or more community partners) were designed. These celivered
938 workshops/14,133 contact hours with 1,303 participants; and were rated “successful overall” by 99%
of community partner staff.
COVID-19 had a profound effect on Create’s participants, many of whom were already experiencing
social isolation/poor mental wellbeing. Further, many of Create’s professional artists lost all work
overnight. Create’s mission to connect and enrich lives had never been more important vet the
pandemic resulted in all in-venue workshops being cancelled.
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Having worked tirelessly for two weeks after lockdown, Create launched its online delivery mechanism ~ Create L_ve' - on 07/04/20. In that fortnight, the concept of delivering interactive creative arts | projects digitally was devised, consulted on (with community partners, participants and artists), planned, | trialled, safeguarded and evaluated. By shi‘ting its model online, Create continued to deliver high-quality projects with its participants, recording the busiest year in its history. The charity acapted its safequarding/safety protocols to ensure participants’ online safety. it also worked closely with its community partners to enable participants to connect to projects via Create Livel; and to share ontine delivery iearning, This helped partners (and the sector more widely} to develop their own cligital delivery early in lockdown. “We ve learned everything we know about Zoom from Create; we are using it ourselves now regularly for activities: baking next week!" CEO, MYTIME Young Carers (05/20). Create developed a partnership with Carers Trust, the UK's leading organisation representing young/ adult carers, enabling it to deliver 14 new projects across the UK via Create Live!, as well as a showcase on Young Carers Action Day that put young carers centre stage. Partnerships with Age UK and The Honeypot Children’s Charity were also deveioped, helping Create to reach increasing numbers of the most isolated participants. In 03/21, the charity heid an online showcase to celebrate its environmental project changing:minds, with ail five special educational needs schools/units in the London Borough of Harrow. The showcase featured the spectacular environmental artwork, dance and drama created over several months by 111 children and young people. Photography and writing created curing Create’s Speak With My Voice project by adults who attend Deptford Reach - and are vulnerable through homelessness, menial ill-health, loneliness, social exclusion and severe poverty — was displayed in a window exhibition at Deptford Lounge between December 2020 and April 2021. This raised their self-esteem and gave thema voice. Create is committed at ali levels to rigorous, honest evaluation..Each project is individually designed to meet partners’ unique needs; clear, relevant intended outputs/outcomes are agreed; and the project is then evaluated against these. Planning and debrief meetings start and conclude each project and Create A| ## CREATE (ARTS) LIMITED ## Directors’ Report (continued) has a 100% feedback policy, with feedback being collected wherever possible from all participants, community partner staff, volunteers and Create artists. Projects are monitored through verbal communication, observation of workshops and written response through questionnaires; and qualitative and quantitative feedback is used by Create to produce an evaluation report that assesses the extent to which the praject aims and intended cutputs/outcomes have been met. This is the primary means by which formal feedback from each project is disseminated, reports being sent to the community partners, artists and funders, and used by Create in the planning of all future projects. **----- Start of picture text -----**
As part of the evaluation process, community partner staff and participants are asked to rate the success
of Create’s projects in enabling the participants to develop a range of key skills and enhanced wellbeing,
and to appraise the success/enjoyment of their project overall. The results across all projects during the
year, shown in the graph below, demonstrate that participants’ skill development was rated successful
by between 81% and 99% of community partner staff and by 70% and 96% of participants.
Participant skill development / wellbeing /
overall project rating
100% 98% 95% 57% 98% - 94% ooxet™ 95% leer
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In addition to each post-project evaluation, an evatuation consultant revisits two projects each year 6- 24 months after they have been delivered te evaluate their longer-term impact on participants, an initiative called Making it Matter. During 2020/21, Create focused on its work with young Carers across the UK, both in-venue (before iockdown) and via Create Live!. The study found that projects had a lasting impact on young carers, more critical than ever Guring the pandemic with reduced education and increased isolation affecting attainment levels and mental health. Projects enabled carers to build long-term friendships, enhanced social skills, reduced isolation. improved wellbeing and built self * confidence. They increased participants’ creativity and artform (eg: music} skills and inspired many to engage in further creative activities. They also changed some carers’ perception of their caring role. Just three weeks after lockdown, Create proviced Create Live! training, ensuring artists and project managers were upskiiled in delivering rigorousty safeguarded workshops via Zoom. It aisc provided its artists and project team with free learning, skill-building and networking opportunities at Artist Sharing events that took place online in May and November. With. external speakers and artist-led workshops, these sessions focused on delivering financial titeracy projects with young carers (May) and an wellbeing (November/Decemben). Artists commented ‘Te training wes in-depth and allowed me to visualise how sessions [vie Zoom will work" "I feel more informed abaut safeguarding an Zoom because of 2 number of approaches that were discussed.” ‘It’s given me an entirely new workshop | can deliver” “It tied together my personal wellbeing, how | can encourage wellbeing among participants and how i can explore weltbeing creatively with others.” 5] , a | | } | ## CREATE (ARTS) LIMITED ## Directors’ Report (continued) Create ran the f fth year of Nurturing Talent, a programme over 12 months designed to upskil: emerging artists who wish to combine a professional artistic practice with creative workshop delivery in community settings. Six artists benefited from: a bursary; four tailored training days delivered by an experienced Create artist; two Artist Snaring events; the opportunity to develop and deliver a workshop collaboratively: and work as a supporting artist on circa 36 workshops across a variety of projects. enabling them to gain experience in a range of community settings alongside different Create artists. One Nurturing Talenter commented: My confidence seems to increase after each project, as | feel that ! am constantly learning, developing and improving.” Create’s income was secured via public sector grants from Arts Council England and Greater London Authority; the development of new relationships (with organisations including: The Ashley Family Foundation; Carers Trust; Chartered Accountants’ Livery Charity; Deptford Challenge Trust: Masonic Charitable Foundation; Network for Social Change; Ooh Deer: People’s Postcode Lottery/Postcode Community Trust; The Portal Trust; Wates Foundation); the strengthening of significant existing relationships {including: Ashurst LLP; BBC Children in Need: British Land: First Sentier Investors; Garfield Weston Foundation: John Lyon's Charity; The Lovington Foundation: The Mercers’ Company: Prudential ptc: Raise Your Hands; Reed Smith LLP; The Rumi Foundation; The Taylor Family Foundation}; the generous support of dozens of other trusts, foundations, companies and individuals; community fundraising; and events. Create won a charity appeal on BBC Radio 4, broadcast in 09/20, which was read by comedian, actress and writer Isy Suttie. The appeal, featuring young carer Abi's story, raised almost £40k for the charity's work with carers. Isy Suttie has since become a Create Patron. Create worked with ITV for its ITV Creates project, bringing together young carers to reimagine the ITV logo. Working with Create artist Amy Leung, the young carers built the letters I. T and V out of blocks that were decorated with artwork they had created exptoring their wellbeing. The whole process was filmed and aired on ITV as an ident between programmes from 10-16/08/20. **----- Start of picture text -----**
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The charity launched a new fundraising chaltenge event - the CRE8IN8 - in which runners ran a daily set distance o* either 8k or a half-marathon from 1-8/08/20. Combined, they raised £13k to support Create's work, Other community fundraisers included: Soup 13, an established event in the advertising indusiry; é triathlon held by Heron Financial; and a donation from the Private Goodness book club. The pandemic forced Create to redesign its annual Gala Dinner as a digital event. giving intimate access to its Patron/internationally acclaimed percussionist Dame Evelyn Glennie (who improvised on weird and wonderful instruments from her studio) and young carer Abi, who was announced as Create’s first Youth Ambassador on the evening. The event raised £47.1k, the second-highest total in 17 years. The Create the Difference individual and business membership schemes provide highly vaiued unrestricted financial support to underpin the charity's work, enabling it to plan with confidence. Create thanks the following members (and all who wish to remain anonymous) who together donated over £53k: 6| ## CREATE (ARTS) LIMITED ## Directors’ Report (continued) Business Members: Innovators ~ Yellow Cat Recruitment. Collaborators ~ Lauren Cickinson Clarke, Michael O'Mara Books, Uncommon London. Individual Members: Champions ~ Alistair DK Johnston CMG, Tim & Claire Jones. Catalysts ~ Anne Baldock, Eddie Donaldson OBE, Whitney Gore. Curators ~ Tony Cates, Gareth Davies, Philip Emery, Adam McNeeney, Alan Paul, Colin Sheaf. Mark Sismey-Durrant. Community ~ Ozge Balk, Isabella Bragoli, Joanna Brendon, John Broadis. Zoe Brooks, Elizabeth Dossett, Bonnie Gilmore, Nicky Goulder, Natalie Gaeme, Hayley Granston, Sean Hanson, Richard Holman, Dr RC Hooker, Sonja Jutte, Sally Horsington, Edmond Kamara. Paul Kemp-Robertson, Ben Knight, Tim Leeson, William Lidstone, Michael Litman, Michael Llewelyn-Jones, Julie Mernick, Marit Meyer-Bell, Tom Newman, Ben Newton, Mr M D J Quintrell. Alex Rawtings. Isabel Santaolalla, Richard Schrieber, Vanessa Sharp, Lara Sherwin, Emily Stubbs, Louise Stubbings, Jim Thomton, Carol Topolski, Michael Topolski, Zelie Walker, Natt Wallbank A vital part of Create’s work is its partnerships with the business community. which enables companies to meet their Corporate Responsibility objectives while helping Create to achieve its mission. Companies including Ashurst LLP, British Land, Deutsche Bank, First Sentier Investors and Reed Smith LL? provided volunteers to support projects that they funded, bringing a wealth of experience and expertise to workshops, acting as positive role models for the participants, and developing new skills and experiences to take back to their virtual workplace. Access to workshops also helped to enhance volunteers’ connectivity and wellbeing during a year of isolation for so many. Create also launched Create Live! For Business, which enabled businesses to buy an online Create workshop to improve employees’ connectivity and wellbeing, while also funding one for Create’s participants. **----- Start of picture text -----**
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## Create’s work was recognised with a series of prestigious awards: - e Charity Times Charity of the Year: with an income of less than £1 million - — **—** — e Five Koestler Awards for its inside Stories prison programme (connecting. - merormmaneerennnaynnestontion prisoners with their children through storytelling/music} Wln ner * Legal Week CSR Innovation (Collaboration) Award {Ashurst/Create) for its Charity of the Year creative:engagement project (creatively connecting alder people) Create increased its profile through high quality, targeted communications that continued to pasition the charity as. a leader in its field and the Chief Executive as an expert voice. This helped to raise the profile of the challenges faced by the charity's participants and the importance of the creative arts to connect, empower, inspire, upskitl and enhance wellbeing. Create’s involvement with the ITV Creates initiative, for which young carers reimagined the ITV logo, secured press coverage on the Campaign and Little Black Book websites: and a fundraising campaign ted by Scottish rock band Biffy Clyro, for which they created a music video and T-shirts championing the value of creativity. was covered in NME and Rock Sound. The Chief Executive appeared on Mariella Frostrup’s Times Radio show to discuss the importance of art and creativity, and had a blog published on the Arts Council England website about adapting participatory arts activities during lockdown. Her speaking engagements included a presentation on “Innovation Day" at Carers Trust's national conference. 7| ## CREATE (ARTS) LIMITED Directors’ Report (continued) **----- Start of picture text -----**
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## Key Groups / Example Projects During the year, Create developed and delivered 59 projects, examples of which are included below. The lockdown prevented its work :n both prisons and children’s psychiatric units, Both will be restarted in the new financial year. Led by Create’s professional artists, Create's projects connected, empowered, inspired and upskilled all participants, raising aspirations, building self-esteem and enhancing wellbeing. They also .., confidence “Meeting new people and making music made me feel better,” Partcipant Create's more:creative project enabled 27 adults with learning disabilities ‘rom Bede House in the London Borough of Southwark to explore their creativity through high-quality music anc visual art workshops. delivered via Create Live’. Coming together remotely, they reconnected with their peers, reducing isolation; learnt new skills; and Guilt confidence, enhancing wellbeing. “There was something for everyone ~ not just for one particular type of child. It was for everyone of ail different abilities.” Pazticipant's rother The second year of Create's three-year changing:minds environmental project comprised 60 comic book, dance, drama and visual art workshops, delivered via Create Live! with 111 children from the five special needs schools/units in the London Barough of Harrow. It culminated in an online Showcase. Create’s creative:expiorers project enabled 134 children with special educational needs at seven schools in Essex, London and Salford (Greater Manchester} to explore their creativity and self-expression. trusting relationships, reducing isolation ‘I think carers need the opportunity to be creative, to step outside themselves and to explore the worid outside. it’s life-changing and life-enhancing.” Participant Create’s creative:voices project delivered via Create Live’ enabled 158 adult carers in England and Scotland to explore their creativity while teking a break from their caring responsibilities, building trusting relationships witn other carers who understand their situation, and developing communication skills and confidence. Many projects brought carers from different geographical locations together. Sfras **----- Start of picture text -----**
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enabled youns carers to take a break, Build resilience, and learn about money ## CREATE (ARTS) LIMITED ## Directors’ Report (continued) *{ think projects like this are good for young carers because they refresh their minds. | can take a break just until 3 o'clock and then go back to helping mum or dad. | feel like | have taken a big break and { feel refreshed,” Participant Create worked with 22 young carer services across England and Wales, delivering 567 workshops via Create Live! These enabled 672 young carers to develop their skills, enhance their creativity, bu'ld their confidence, connect with other young carers and enjoy a break from their caring responsibilities. “The workshops have helped me learn the vaiue of money. When you're growing up, you don't realise how much or how tittle money you have, cr how it works in the real warid.* Paricipant change:matters is Create’s new programme that takes a creative approach to upskilling young carers about money and family finances. Delivered via Create Live!, Create enabled 116 young carers to learn these new skills through music, photography, radio drama or graphic novel: and created a new resource bank on its website. ## people = “We do a lot of workshops with Create because creativity is a really great way to provide support.” Community pariner creative:together comprised a six-week zine-making project with LGBTG+ people aged 16 to 25 from the London Boroughs of Croydon, Lewisham and Sutton, delivered via Create Live!. The project offered participants an opportunity to develop their creative thinking and self-expression in a safe environment white reflecting on the legacy of Pride and what it means to live as an LGBTQ+ young person today. It also enabled them to connect, build skills and share their experiences through writing and visual media. ## Older people ## reduced isolation, fostered imagination and increased self-wortt "it’s very meaningful to have the freedom to express myself. This project has been like much-needed therapy.” Partcipant Create ran five programmes in London that emoowered older participants to express themselves creatively, learn new skills, feel less lonely and have fun. Online and telephone-based solutions via Create Live! were trialled and tailored to ensure participants could join in the workshops safely during the pandemic, ‘It's helped to be a sanctuary of sanity through the pandemic. ' Participant Create’s Speak With My Voice project brought together 17 participants whe attend Deptford Reach, a day centre in the London Borough of Lewisham serving local peaple who are vulnerable through homelessness, mental ill-health, loneliness, social exclusion and severe poverty. The socially distanced in-venue proiect empowered them to express themselves through photegraphy and writing, and culminated ina four-month exhibition at Deptford Lounge. 9| . **----- Start of picture text -----**
CREATE (ARTS) LIMITED
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Directors’ Report (continued) **----- Start of picture text -----**
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## Plans for 2021/22 Create will embark on its embitious new five-year strategy from 04/21 with the aim of doubling the reach and impact of its work by 03/26; and establishing a new hub in Manchester that will enable it to reach increasing numbers of the most disadvantaged ana vulnerable children and adults across the North Wesz. Its participants wilt remain the driving force behind the charity's work and Create will continue to meet its commitment to developing sustained, life-changing programmes by returning to many of the carer services, schools, day centres and other community settings with which it collaborated during 2020/21. It will also return to settings that COVID-19 lockdown made impossible: prisons (where technology is banned and Create Live! delivery was therefore unfeasible): and children’s psychiatric hospital units (that were closed). Create has a series of important new initiatives planned that will extend its work geographically and with new partners. It will expand its work with disabled children, young and adult carers and vulnerable older people from its new NW hub, reaching participants in areas of high deprivation across Greater Manchester, Merseyside and beyond. It will expand its prison work with the launch of My Daa's In Prison, enabling fathers to create an illustrated book to help children understand why dad is away from home. It wili expand its creative:tandem programme for young patients with severe emotional or behavioural disorders to two new adolescent psychiatric hospitals, at a time when mental health support for young people has never been nore critical. Other new projects are being explored and developed. With the ctimate crisis arguably the most significant global challenge over the next decade and beyond {COVID-19 aside), there is an urgent need to educate people on environmental issues. Create has taken its environmental responsibility seriously for 18 years, both Operationally and via projects. In line with its Environmental Policy, it will continue to promote the need for environmental responsibility, reviewing the targets set out in its Green Action Pian and taking an innovative approach to leading change. Its three-year changing:minds environmental programme working at all five special schools/units in Harrow culminated in 11/21. It will fundraise during the year to launch twe new environmental programmes to upskill children from 2022: environment:matters and environment:tales. As the COVIB-19 lockdown eases, Create will offer community partners a blended approach of Create Live! and in-venue projects, enabling them to choose the most appropriate way for their participants to access workshops. For those participants who are unable to leave home, cue to their caring responsibilities, frailty, mental illness or sickness, for example, being able to join workshops over Zoom helps to keep them connected, empowered, inspired and upskilted, reducing isolation and enhancing wellbeing. Alongside the evaluation of each project at its culmination, the charity's Making it Matter initiative will revisit two projects during the year that completed 6-24 months previousty, to assess the longer-term impact on participants. Artist development will remain a pricrity for Create, with six-monthly Artist Sharing events continuing to provide an opportunity for its professional artists to network, develop new skills and share best practice. 10 | **----- Start of picture text -----**
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; ## CREATE (ARTS) LIMITED ## Directors’ Report (continued) Taking place in May and November 2021, the first of these will focus on sustainability/the environment. Eight artists have been accepted onto the Nurturing Talent programme, which upskills emerging artists, enabling them to acquire experience and to benefit from high-quality mentoring, training and practical workshop assistance. Planned fundraising events during the year include: a team of runners taking part in CRESINS in 08/21; and an evert at White Cube art galiery during 03/22. A nurnber of comrnunity fundraising events are also scheduled to take place. Create’s office lease terminates on 24/12/21 and the charity has therefore found new premises nearby, In assessing future needs, it has considered a blended approach of home and office working. Staff wellbeing and the charity's Green Action Plan have aiso played an important role in decision-making. **----- Start of picture text -----**
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## Reserves policy The aim of Create’s reserves policy is to ensure that its ongoing and future activities are reasonably protected from unexpected variances in income and exoenditure. The Trustees regularly review the levels of unrestricted reserves and oerform a full review annually. This considers the financial risks associated with different income streams, expenditure categories and baiance sheet items together with Create’s ability to meet these from realisable funds. Create monitors a range of measures related to its income and expenditure profile, risks faced and cash flow in deveioping an unrestricted reserves target. On this basis, the Trustees aim to maintain free unrestricted reserves of 4-6 months of projected operational cosis. Unrestricted reserves at 31/03/21 were £684,372, cf which £15Ck is held ina designated fund to support three key one-off strategic costs: CRM system, website; office move. The balance of £534,372, represents 5.4 months of projected expenditure for 2021/22. This crucial level of reserve - given the uncertainty resulting from the impact of COVID-29 and Brexit. and the uncertainties in the gicbal economy - together with restricted reserves at 31/03/21 of £504,074 (funding received in advance that has been given for a specific purpose and is ted to specified projects or activity taking place in future financial years), provide the charity with a strong balance sheet and cash positior. The Directors therefore consider the funding of the activities of the charity to be secure for the following 12 months and beyond. ## Structure, governance and management ## Company Status The company is incorporated by guarantee and has no share capital. Each of the members has guaranteed io meet debts of £1 in the event of a winding up. The company was incorporated on 09/04/03 and is governed by a memorandum and articles cf association. The company isalsoa registered charity. Appointment and induction of Directors Create’s Board of Directors has a wealth of experience that covers the arts, business, community and education sectors. New Directors are appointed to the Board by the current Directors, who are alse members of the company. 11| | | ## CREATE (ARTS) LIMITED ## Directors’ Report (continued) The Chief Executive inducts new Directors through a process of briefings. They are provided witn key information relating to the charity's governance and operations, and undertake a DBS check and safequarding training. The Directors meet at least quarterly and attend projects and events. The Communications, Creative, Development and Finance Councils are each chaired by a member of the Board. Key management personnel Day to day operations are managed by the Chief Executive, Nicky Goulder and her team of 16 staff. Five of these are on the Senior Management Team: Director of Communications; Deputy Director of Development: Director of Development: Director of Finance & Operations; Senior Project Manager. New staff have a six-monthly appraisal; alt staff have an annual appraisal against SMART objectives set. The Staff Handbook provides information on internal policies and procedures. Once a year, the Chairman agrees any staff salary increases, which have reference to any rise in the cost of living and any increase in responsibilities. As appropriate, staff salaries ere benchmarked against the sector. Fundraising Create has a fundraising team of four who work closely with the Chief Executive. Funding bids are carefully researched, developed and submitted to trusts/foundations and public sector bodies, matching their funding criteria with Create's work. Corporate partnerships are developed with businesses, carefully matching their corporate responsibility objectives with Create's charitable cbjectives. Increasingly, Create is approached and works with organisations to co-create partnerships with mutual benefit. Create works on a personalised basis with individuals who have expressed interest in its work. It does not seek to raise funds from the wider puolic. Create has received no complaints about this or any other approach to fundraising. Risk management The Directors consider the key risks to which the charity is exposed. In addition, a detailed risk register is maintained by the Director of Finance & Operations and reviewed annually by the Directors to assess the detailed risks and the systems in place to mitigate them. Examples of the key risks faced by Create and their nitigation are provided below: - e Loss of the Chief Executive Ina charity of this size and history the Chief Executive's continuing commitment and resilience underpins its capacity to deliver its business plan. Mitigation: A Senior Management Team covers the core areas of communications, finance, fundraising, operations and projects, and provides support to the Chief Executive as well as continuity in times of absence. As the charity continues to grow that resource is monitored. ¢ Reputational damage The charity's reputation is paramount and it works hard to maintain and enhance it. Mitigation: High quality programmes are delivered by exceptional artists and meticulously evaluated; a rigorous Safeguarding Children & Vulnerable Adults policy is in place; risk assessments are carried out with community partners for every project. e Lack of funding Funding is critical to the continued operations of the charity and ina continuously evolving environment, particularly with the challenges presented by COVID-19, it needs to be alert to changing funding demands and policies. Mitigation: The Chief Executive has a proven fundraising track record; fundraising has been strengthened with a Development Council, and Development team of four; longer-term funding is 12] ## CREATE (ARTS) LIMITED Directors’ Report (continued) being developed: Create has a proven ability to meet fundraising targets. - e Poor staff wellbeing Staff wellbeing is crucial in a small, ambitious charity that delivers an extensive programme each year with disadvantaged and vuinerable participants. Mitigation: Staff wellbeing is central to the charity's people strategy and an increased priorily during lockdown with the team dispersed due to home working. Initiatives have included wellbeing Lraining: creative activities; additional leave; and regular socials. ## Directors and their interests The following served as Directors during the year: John Broadis Tony Cates (appointed 30/06/20} Eddie Donaldson OBE Tim Jones Marit Meyer-Bell Vanessa Sharp Paul Thimoni Carol Topolski The Directors are also the Trustees for the purpase of charity law. 13] - ## CREATE (ARTS) LIMITED Directors’ Report (continued) ## Statement of Directors’ responsibilities The trustees (who are also directors of C reate (Arts) Limited for the purposes of company law) are responsible for preparing the Trustees’ Report (incorporating the directors’ report) and the financial statements in accordance with apolicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland {United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and féir view of the state of affairs of the charitable company and of the income and expenditure, of therequired charitableto: company for that period. In preparing these financial statements, the trustees are - e select suitable accounting poiicies and then apply them consistently: * observe the methods and principles in the Charities SORP: e® make judgments and accounting estimates that are reasonable and prudent: ¢ state whether applicable UK Accounting Standards have been followed, subject to any material ® departures disclosed and explained in the financial statements, and prepare the financiat statements on the going concern basis unless it is insppropriate to presume that the charitable company will continue in business. The trustees are responsible for maintainirg proper accounting records which disclose with reasonabie accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonabie steps for the Prevention and detection of fraud and other trregularities. ## Statement of Disclosure to Auditor - in so far as each of the Directors is aware: - there is no relevant audit information of which the company’s auditors are unaware: and - * the Directors have taken all Steps that they aught to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. Auditors In accordance with section 485 of the Companies Act 2006, appointment of auditors to the company will be put to the Annual General Meeti ng af Members. This report has been Prepared in accordance with the Provisions applicable to companies subject to the small companies regime in Part 15 of the Companies Act 2006. By Order of the Board **----- Start of picture text -----**
/ 7 2 et .
Eddie Donalds6n OBE
Chairman
07/12/21
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I
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14}° . ## INDEPENDENT AUDITORS' REPORT To the members of Create (Arts) Limited ## Opinion We have audited the financial statements of Create (Arts) Limited (the “Charity’) for the year ended 31 March 2021 which comprise Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framewcrk that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice), ## In our opinion, the financial statements: - ® give a true and fair view of the state of the Charity’s affairs as at 31 March 2021 and of its incoming resources and application of resources for the year tnen ended; - * have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - e have been prepared in accordance with the requirements of the Companies Act 2006. ## Basis for opinion We conducted our audit in accordance witr International Standards on Auditing (UK} {ISAs (UK}) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard and we have fulfilted our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perforined, we 7ave not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## Other information The other information comprises the information included in the annual report, including the trustees’ report, other than the financial statements end our auditor's report thereon. The trustees are responsible far the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financia. statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise aopears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information. we are required to report that fact. 15| ## INDEPENDENT AUDITORS' REPORT ## To the members of Create (Arts) Limited We have nothing to report in this regard, ## Opinions on other matters prescribed by the Companies Act 2006 - In our opinion, based on the work undertaken in the course of the audit: e the information given in the trustees’ report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - e the truscees' report (incorporating the strategic report and the directors’ report) has been prepared in accordance with applicable legal requirements. ## Matters on which we are required to report by exception In the light of the knowledge and understanding of the Charity and its environment obtained in the course of tne audit. we have not identified material misstatements in the trustees’ Annual Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - ® adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; - e the financial statements are not in agreement with the accounting records and returns: ¢ ceriain disclosures of trustees’ remuneration specified by law are not made; * we have not obtained all the information and explanations necessary for the purposes of our audit: or « the trustees were not entitled to prepare the financial statements in accordance with the smail companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report. ## Responsibilities of the trustees As explained more fully in the trustees’ responsibilities statement set out cn page 14, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internat control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. in preparing the financial statements, the trustees are resoonsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so. ## Auditor's responsibilities for the audit of the financial statements Our ob;ectives are to obtain reasonable assurance about whether the financia! statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements, Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. 16 | ## INDEPENDENT AUDITORS' REPORT To the members of Create (Arts) Limited - We obtained an understanding of the legal and regulatory framework applying to the charity, and the procedures that management adopt to ensure compliance, including those relating to the Charities - SORP FRS 102: - ° Weassessed the susceptibility of the charity's financial statements to material misstatement, including considering how fraud might occur, - We obtained the Board of Trustees’ assessment of fraud risk and enquired as to any known or suspected instances of fraud; and - e We designed and performed audit procedures to obtain sufficient appropriate audit evidence regarding compliance with taws and regulations. including enquiry of the trustees, review of minutes and correspondence, and review of the completeness and accuracy of disclosures made in the financial statements. A further description of our responsibilities for the audil of the financiat statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. ## Use of our report This report is made solely to the Charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity’s members thase matters we are required to state to them in an auditor's report and for no other purpose. To the fullest éxtent permitted by law, we de not accept or assume responsibility to anyone other than the Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed. Jonathan Healey (Senior Statutory Auditor) For and on behalf of Lindeyer Francis Ferguson Limited North House Chartered Accountants 198 High Street Registered Auditor Tonbridge Kent, TN9 1BE CTwe Decevler B24 47 | ## CREATE (ARTS) LIMITED ## STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021 **----- Start of picture text -----**
|||||||| |---|---|---|---|---|---|---| |Total| |Restricted|Unrestricted|Total|funds as| |funds|funds|funds|restated| |2021|2021|2021|2020| |Notes|£|£|£|£| |Income from:| |Donations and|legacies|2|433,424|360,274|793,698|732,354| |Charitable|activities|3|78,296|64,500|142,796|90,395| |Other trading|activities:| |Fundraising|4|105,288|12,845|118,133|110,232| |Investment|income:| |Bank|interest|received|-|4,009|4,009|7,430| |Total|617,008|441,628|1,058,636|940,411| |Expenditure|on:| |Raising funds|5|-|1,126|1,126|12,220| |Charitable|activities|6|485,591|337,209|822,800|812,583| |Total|485,591|338,335|823,926|824,803| |Net income|131,417|103,293|234,710|115,608| |Transfers between funds|13|(20,000)|20,000|-|-| |Net movement in funds|111,417|123,293|234,710|115,608| |Reconciliation|of Funds:| |Total funds|brought forward|392,657|561,079|953,736|838,128| |Total funds carried forward|504,074|684,372|1,188,446|953,736| **----- End of picture text -----**
. 18| Page ## CREATE (ARTS) LIMITED BALANCE SHEET AS AT 31 MARCH 2021 |AS AT 31 MARCH 2021MARCH 20212021|||||| |---|---|---|---|---|---| ||||||Asrestated| ||||2021||2020| ||Notes|£|£|£|£| |Fixed assets|||||| |Tangible assets|9||-||-| |Current assets|||||| |Debtors
Cash atbankand in hand|10|38,123
1,222,185||52,108
$38,028|| |||1,260,308||990,136|| |Creditors:amountsfallingduewithin one
year|11|(39,862)||(36,400)|| |Netcurrentassets|||1,220,446||953,736| |Totalassets lesscurrent liabilities|||1,220,446||953,736| |Provisionsfor liabilities|12||(32,000)||-| |Totalnetassets|||1,188,446||953,736| ||||———S||——_———| |Thefunds ofthe charity:
Restricted Funds|||504,074||392,657| |Unrestricted funds|||||| |General funds
Designatedfunds|||534,372
150,000||521,079
40,000| |Totalcharityfunds|13||1,188,446
See||953,736
oe| These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The financial statements were approved by the Board of Directors on 7 December 2021 and were signed on its behalf by: Eddie Donaldson OBE Chairman Company registration no: 04728145 19 | Page ## CREATE (ARTS) LIMITED ## STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021 |FOR THE YEAR ENDED 31THE YEAR ENDED 31YEAR ENDED 31ENDED 3131 MARCH 20212021|||| |---|---|---|---| ||||Asrestated| ||Notes|2021|2020| |||£|£| |Cashflowsfrom operating activities:|||| |Netcashprovided byoperating activities|A|280,148|72,954| |Cashflowsfrom investing activities:|||| |Bankinterestreceived||4,009|7,430| |Netcashprovided by investingactivities||4,009|7,430| |Changeincashandcashequivalents inthe reportingperiod||284,157|80,384| |Cashandcashequivalents atthebeginning ofthe reporting period||938,028|857,644| |Cashandcashequivalentsattheendofthereporting period||1,222,185|938,028| ||——_—————||_______._}| |A. Reconciliation ofnetincometonetcash flowfrom operating|||| |activities|||| ||||Asrestated| |||2021|2020| |||£|£| |Netnicomeforthereporting period (asper thestatementoffinancial
activities)||234,710|115,608| |Adjustments for:|||| |Bankinterestreceived||(4,009)|(7,430}| |Decrease/(increase) in debtors
Increase/(decrease) increditors||13,985
35,462|(29,369)
(5,855)| |Cashflowfromoperatingactivities||280,148|72,954| ||—————~_=—T=||SS| 20 | Page 5 ## CREATE (ARTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ## 1 Accounting policies ## Basis of accounting 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 2019) - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Create (Arts) Limited 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(s). The financial statements are presented in pounds sterling and rounded to the nearest pound. ## Going concern The global pandemic Covid-19 has inevitably impacted the operations of the charity. The trustees are keeping the matter under constant review and believe that the charity has sufficient reserves to absorb the impact of the Covid-19 crisis and wilt be able to continue in its operations for the foreseeable future. The trustees believe that the charity therefore has not been adversely impacted in such a way that would cast doubt over the going concern status, and so the going concern basis of accounting continues to be adopted. ## Recognition of income incoming resources from charitable activities have been analysed according to the type of funding received as the charity has one main activity, which is the development and delivery of projects. ## Fees, sponsorship and event income Fees, sponsorship and event income are stated net of discounts and VAT, and are recognised on a receivable basis. ## Grants, donations and sponsorship Income from donations and grants is recognised when the charity is entitled to the funds, the receipt is probable and the amount can be measured reliably. For donations, this is usually on receipt. For grants, this is usually when a formal offer is made in writing, unless the grant contains terms and conditions outside of the charity's control which must be met before the charity is entitled to the funds. Much of the funding for Create's charitable work derives from grants, donations and sponsorship, whether from the public sector, companies, trusts and foundations, or individuals. Such support is often directed towards a particular event or project. Such receipts are accounted for as restricted funds and expenditure is matched against the income as incurred. Investment income is recognised when receivable. 21 | Page j ‘ : ## CREATE (ARTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ## 1 = Accounting policies {continued} ## Legacies Legacies are recognised on a receivable basis, once the conditions for the receipt have been satisfied and the amount can be measured with certainty. ## Donated services Donated services are recognised when the value of the services is reasonably quantifiable and measurable. The valuation method used on the resources is the estimated value of the services to the charity. During the year the charity received communications, HR services, event space, consultancy and art supplies. ## Fixed assets and depreciation individual fixed assets costing £1,500 or more are capitalised at cost. Fixed assets are included in the balance sheet at cost less provisions for depreciation. | Depreciation is provided at 33% per annum on cost in order to write off the cost of computer equipment over their estimated useful life. ## Expenditure and liabilities Liabilities and related expenditure are recognised when a present legal or constructive obligation exists at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation and the amount can be measured or estimated reliably. Expenditure is allocated to the particular activity where the cost relates directly to that activity. The cost of overall direction and administration of the charity is included within support costs as part of the cost of charitable activities. All resources expended are inclusive of irrecoverable VAT. Staff costs have been allocated to expenditure headings on the basis of an estimate of the amount of time spent by staff members in each area. ## Financial instruments The charity only has financial instruments of a kind that qualify as basic financial instruments. Shortterm debtors and creditors are measured at the settlement value. Any losses from impairment are recognised in profit and loss. ## Taxation The charity is exempt from Corporation Tax on its charitable activities. 22 | Page ## CREATE (ARTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ## 1 = Accounting policies (continued) ## 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 the particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are applied for a specific restricted purpose. In the majority of cases, restricted funds are those which have been received in the year but are required to be applied to projects which are not going to commence until the following year. If those projects do not proceed then in some cases those funds will have to be returned. Designated funds are unrestricted funds which have been set aside by the trustees for an essential spend or future purpose. ## Operating leases Rentals payable under operating leases are charged against income on a straight line basis over the lease term. Pensions Create (Arts) Limited has set up an auto-enrolment compliant pension scheme into which the employees are enrolled. The pension cost in the financial statements represents the contributions payable by the charity during the year. ## Provisions Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation, The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in the period in which it arises. ## Status Create (Arts) Limited is a charitable company limited by guarantee incorporated in England and Wales. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is 379 Salisbury House, London Wall, London, EC2M 5QQ. 23 | Page CREATE (ARTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ## 1 = Accounting policies (continued) ## Prior period adjustment During the preparation of the Charity's financial statements for the year ended 31 March 2021, a full review of the terms and conditions attached to the Charity's funding was undertaken to ensure that the income was being recognised in accordance with the Charity's accounting policies and the Charity SORP. A revised interpretation of the SORP has resulted in a prior period adjustment being made to both the Charity's income and deferred income for the year ended 31 March 2020 in order to better reflect the terms and conditions attached to the Charity's funding. The change has resulted in the balances on funds at 31 March 2020 increasing by £466,157. in addition to this, an adjustment has been made to reclassify grants received to support charitable activities as income from grants and donations. Previously these were included within income from charitable activities. The effect of this adjustment in the prior period has been to reanalyse income of £412,136 from income from charitable activities to income from donations and grants. |||||Total| |---|---|---|---|---| |||Restricted|Unrestricted|fundsas| |Summaryofthe prioryearaccounting impact||funds|funds|restated| |||£|£|£| |Funds broughtforward at 1 April 2019as previouslystated||-|421,985|421,985| |Increase in income and decrease in deferred income||354,913|61,230|416,143| |Fundsbroughtforward at 1 April 2019 as restated||354,913|483,215|838,128| |Increase inincome and decrease in deferred income||37,744|77,864|115,608| |Funds carriedforward at 31 March 2020|-|392,657|561,079|953,736| ||—SS————SSSSS_TI_TllEE—EELEDDDDDS_ITV0IYO|||| |Incomefrom donationsand legacies||||| ||||2021|2020| |||||Asrestated| ||||£|£| |Donationsand legacies|||257,261|238,582| |Grants|||536,437|493,772| ||||793,698|732,354| ||||————_—_=:-—|O—T{i=n==—_=_=_!| ## 2 Income from donations and legacies The comparative figures include restricted income from grants and donations totalling £435,911. Included in the above are grants received from Arts Council England, Carers Trust, Garfield Weston Foundation, Lawson Fund at Sussex Community Foundation, The London Community Foundation/The Depttord Challenge Trust, The Mercers’ Charitable Foundation, The National Lottery Community Fund, Network for Social Change, Raise Your Hands and Southwark Community Council Neighbourhoods Fund. 24 | Page ## CREATE (ARTS) LIMITED ## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ## 3 Income from charitable activities |Income from charitable activities||| |---|---|---| ||2021|2020| |||Asrestated| ||£|£| |Activity: Createprojects||| |Fees forservices|96,406|-| |Sponsorship|46,390|90,395| ||142,796|90,395| The comparative figures include restricted income from grants and sponsorship totalling £90,395. ## 4 Income from other trading activities (fundraising) |Income fromfrom other tradingtrading|activities (fundraising)|2021|2020| |---|---|---|---| ||||Asrestated| |||£|£| |Gala dinner||47,139|67,113| |BBC Radio4 Appeal||35)522|-| |CRE8IN8&||12,806|-| |One Lonely Fiver||-|17,080| |PrudentialRideLandon||-|7,288| |Communityfundraising||22,666|18,751| |||118,133|110,232| ||:|——————————|| The comparative figures include restricted income from donations totalling £28,297. ## S Expenditure on raising funds |Expenditure onon raising fundsfunds||| |---|---|---| ||2021|2020| ||£|£| |Galadinner|1,126|12,088| |Prudential RideLondon|-|132| ||1,126|12,220| —SS+= i LO 25 | Page | | | | | ## CREATE (ARTS) LIMITED ## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 |6|Expenditure on charitable activities||| |---|---|---|---| |||2021|2020| |||£|£| ||Activity: Createprojects||| ||Employee costs|497,620|476,656| ||Directcostsofprojects|164,083|181,588| ||Support costs (below)|161,097|154,339| |||822,800|812,583| |||—S——SaSSS=——Oo—TTT|| ## The comparative figures include £516,859 of expenditure from restricted funds. |Supportcosts|||| |---|---|---|---| |Employee costs||55,291|52,962| |Otherstaff related costs||1,048|3,705| |Otherstaff related costs (donated)||227|227| |Insurance||1,671|2,806| |Rent/service charge||41,788|46,872| |Other premisesexpenses||3,689|5,340| |Communications/branding||956|13,310| |Communications/branding (donated)||-|3.980| |Consultancyfees (donated)||710|4,000| |Office costs||9,810|10,471| |Dilapidation costs|See Note 12|32,000|-| |Irrecoverable VAT||10,767|7,706| |Board meetingexpenses||“|30| |Auditors’ remuneration
Auditors’remunerationfor payrollservices||2,220
920|2,100
830| |||161,097|«154,339| |Net income
Netincome is stated aftercharging:||2021
.|2020| |Auditors’ remuneration foraudit services||2,220|2,100| |Auditors’ remuneration for payroll services||920|830| |Rent paid underoperating jeases||41,788|46,872| |||SS|| ## 7 Net income 26 | Page 1 ## CREATE (ARTS) LIMITED ## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 |8|Employeecosts|2021|2020| |---|---|---|---| |||£|£| ||Wagesand salaries|495,347|476,290| ||Socialsecurity costs|44,239|42,617| ||Pension costs|12,825|10,711| |||552,911|529,618| The average number of employees during the year was as follows: ||2021|2020| |---|---|---| ||#|#| |Project management.|7|7| |Communications|2|2| |Development|4|4| |Management
Finance|3
1|3
1| ||17|17| ||——
SS|iOODEDE| One member of staff earned over £60,000 for the financial year (2020: one). None of the directors received any remuneration during the year (2020: ENi}). No expenses incurred by the directors were reimbursed. Expenses waived by the directors are immaterial. 27 | Page : ## CREATE (ARTS) LIMITED ## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ## 9 Tangible fixed assets |Tangible fixedfixed assets||| |---|---|---| |||Computer| |||equipment| |||£| |Cost||| |At1 April 2020||11,199| |Disposals||(11,199)| |At 31 March 2021||-| |Depreciation||| |At 1 April 2620||11,199| |Disposals||(11,199)| |At 31 March 2021||-| |Netbookvalue||| |At 31 March 2021 and 2020||-| |||SS| |Debtors||| ||2021|2020| ||£|£| |Trade debtors|8,000|24,952| |Otherdebtors|18,518|17,359| |Prepayments|11,605|9,797| ||38,123|52,108| ## 10 Debtors ——————————SSSS———o———— ## 11 ~~ Creditors: amounts falling due within one year |Creditors: amounts falling due within one yearamounts falling due within one yearfalling due within one yeardue within one yearwithin one yearone yearyear||| |---|---|---| ||2021|2020| |||asrestated| ||£|£| |Trade creditors|21,100|6,316| |Taxes and social security costs|14,448|22,891| |Othercreditors|2,114|3,320| |Accruals|2,200|3,873| ||39,862|36,400| ||=Il[U_$—>_—_——————ee|| t 28 | Page ## CREATE (ARTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 **----- Start of picture text -----**
|||||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |12|Provisions| |2021|2020| |£|£| |Provisions|for dilapidations|32,000|-| |The|charity|is|moving|offices|in|December|2021|and|under the terms of the|lease|are|required|to|pay| |for dilapidations|on the current|premises. The costs of the dilapidations|is estimated to be £32,000 and| |a|provision|has|been|made|in|the|accounts|to|reflect|the|liability.|The|costs|are|expected|to|be|paid| |shortly|after the|premises|have|been|vacated.| |13|Movement|on|funds| |1|April| |2020 - as|31 March| |restated|Income|Expenditure|Transfers|2021| |Current year|£|£|£|£|£| |Unrestricted|funds| |General|Fund|521,079|441,628|(338,335)|{ 90,000)|534,372| |Designated|Funds:| |Implementation|of a new| |CRM|-|-|~|85,000|85,000| |Development|of|a|new| |website|.|.|-|15,000|15,000| |Office|relocation|costs|-|-|-|50,000|50,000| |Director|of| |Communications|Post|40,000|-|-|(|40,000)|-| |561,079|441,628|( 338,335)|20,000|684,372| |Restricted|funds| |Disabled|children|and|adults|91,440|40,005|(80,255)|(|15,000)|36,190| |Schoolchildren|in|areas|of| |deprivation|9,848|-|(5,000)|-|4,848| |Marginalised|children|and| |adults|7,750|31,500|{ 26,125)|-|13,125| |Vulnerable|older|people|46,951|58,551|( 48,149)|-|57,353| |Young and adult carers|179,931|322,814|( 314,861)|2,500|190,385| |Young and|aduit prisoners|24,963|10,625|( 5,300)|(5,000)|25,288| |Young patients|31,774|23,498|-|{|2,500)|52,772| |Nurturing|Talent|-|20,477|-|-|20,477| |creative:vision|-|109,538|(5,901)|-|103,637| |392,657|617,008|(485,591)|(|20,000}|504,074| |Total funds|953,736|1,058,636|( 823,926)|-|1,188,446| |—SS|eensns=oao™Ta™NOOOLOLSF|OEE Se|———————————|[FF]| **----- End of picture text -----**
29 | Page ## CREATE (ARTS) LIMITED ## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 13 Movement on funds (continued) ## Designated Funds: In 2020 the trustees decided to allocate £40,000 of reserves to a designated fund to support the appointment of a Director of Communications. The post was filled in May 2020 and therefore the fund was released during 2020/21. During 2021 the trustees decided to allocate £150,000 of reserves to designated funds to cover the costs of implementation of a new CRM, the development of a new website and costs associated with the relocation to new office premises. The costs are expected to be incurred during 2021/22. ## Transfers During 2020/21, one transfer was made from restricted to unrestricted funds; another between projects. Due to the ongoing impact of COVID-19 on schools, Create was unable to deliver creative:cannection, Garfield Weston Foundation gave permission to reallocate the grant of £15,000 towards the charity's wider programme (Create Live! delivered via Zoom) to have an impact on the lives of participants before reporting back in May 2021. Due to the impact of COVID-19 and social distancing restrictions, Create was unable to deliver work in adolescent psychiatric wards in 2020/21. London Catalyst therefore allowed the reallocation of the grant of £2,500 towards work that could be delivered via Create Live! during the period. ||1April||||31 March| |---|---|---|---|---|---| ||2019|Income|Expenditure|Transfers|2020| |Prioryear - as restated|£|£|£|£|£| |Unrestricted funds|||||| |General Fund|449,882|385,808|(307,944)|( 6,667)|521,079| |Designated Fund:|||||| |Director of|||||| |Communications Post|-|-|-|40,000|40,000| |Director ofFinance &|||||| |Operations Post|33,333|-|-|{ 33,333)|-| ||483,215|385,808|(307,944)|-|561,079| 30 | Page ## CREATE (ARTS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 **----- Start of picture text -----**
|||||||| |---|---|---|---|---|---|---| |13|Movement on funds|(continued)| |1 April|31 March| |2019|Income|Expenditure|Transfers|2020| |Prior year - as restated|£|£|£|£|£| |Restricted|funds| |Disabled|Children and Adults|69,940|106,730|( 85,230)|-|91,440| |Schoolchildren|in|areas|of| |deprivation|-|9,848|-|.|9,848| |Marginatised|children|and| |adults|-|43,000|( 35,250)|-|7,750| |Vulnerable|older people|40,233|75,528|( 68,810)|-|46,951| |Young and|adult carers|202,094|220,845|( 243,008)|-|179,931| |Young and adult prisoners|20,598|56,378|(52,013)|-|24,963| |Young|patients|19,548|39,274|( 27,048}|-|31,774| |Nurturing|Talent|2,500|3,000|(5,500)|-|=| |354,913|554,603|(516,859)|-|392,657| |Total funds|838,128|940,411|(|824,803)|=|953,736| |DSO|Ole|C_oC—-|lee ———_| **----- End of picture text -----**
14 Analysis of net assets between funds **----- Start of picture text -----**
||||| |---|---|---|---| |Restricted|Unrestricted|Tatal| |funds|funds|funds| |£|£|£| |Current year| |Net current assets|504,974|716,372|1,220,446| |Provisions|-|( 32,000)|( 32,000)| |504,074|684,372|1,188,446| |_————|——————_—_| |Restricted|Unrestricted|Total| |funds|funds|funds| |£|£|£| |Prior year| |Net current assets|392,657|561,079|953,736| |392,657|561,079|953,736| |————SDaS|CS|———oo—| **----- End of picture text -----**
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||||||| |---|---|---|---|---|---| |The charity|is committed to future minimum|lease|payments under non-cancellable|operating leases as| |follows:| |2021|2020| |£|£| |Land and|buildings|-|due within one year|30,318|30,318| **----- End of picture text -----**
31 | Page ## CREATE (ARTS} LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ## 15 Related party transactions During the year, the Charity made payments of £1,805 to Carol Topolski in relation to the service she provided on projects as a professional writer (2020 - £1,156). Carol was not paid in her role as a Trustee. In aggregate, trustee donations totalled £135,272 (2020: £137,385). The key management personnel of Create in charge of planning, directing and controlling the charity and running and operating it on a day to day basis comprise the Board of Trustees, Chief Executive and Senior Management Team. The total remuneration (excluding employer's national insurance) payable to key management personnel (6) during the year was £237,737 (2020 {5 personnel}: £182,316), 32 | Page a