Institute of Imagination CharityRegistr#tion No. l IlJ9276 Comp*ny Registration Nth 04921852 Annual Trustees, report and financial statements For the year ended 31 December 2021 , lllllll *A8tx)2075* 3010912022 COMPANIES HOUSE 37 Institute of Imagination Annual report and financial statements For the year ended 31 December 2021 Contents Page ixgal and adrninistrative inforrnation Tru$t¢¢5' report 24 TrusteES' responsibllities Statement IndepeDdeDt auditor's report Stgteme*t of finaneial activitie5 14 Bxlanee sheets C¥Jsh flow $taternent 17 Notes to the fin4n¢ial st*ternents 18 Institute of Imagination Legal and administrative information Trustees Lady A Shaw-scott Adjaye B J Demeroutis M Dorion T Gilbert (appointed 13 June 2022) A Greenberg (appointed 13 June 2022) K Gntssing Dr L Guyton B Koby C Meicalfe M Reilly S Sotomey (appointed 13 June 2022) C Tavemier (appointed 13 June 2022) D Uehlein L Watson Man8g¢meDi and Leadership MAllen T Doust S Dittmer (resigned 24 May 2022) Charlty number 1109276 Company number 04921852 Prineipal address and Registered o(fKe School 360 5 Sugar House Lane London El52QS Bankers Coutts & Co 440 Styand London WC2R OQS L8wyers Joelson JD LLP 2 Marylebon¢ Road London NWI 4DF Auditor Peiers Elworthy & Moor¢ Salisbury Hou5¢ Station Road Carnbridge CBI 2LA Institute of Imagination Trustees, report Introduction by the Chair of Trustrts Like with many organi5ation& 2021 wos an exceptional year forth¢ Instiwte of Imagination {iOi) in 50 many ways. ( the one hand, our purpose has n¢ver clearer. or more essential within the cornmunities w¢ Serve. And of course on Ehe other hand, organisations of all foms have faced never before seen challenges across every aspec( of their work- from p¢opl¢, to strategy, to funding- creating fimdamental shit15 in the v¢ry nature of their exrstence. Forso many of us. it isclearthat this lastyearh&5 had the most acut¢ impad on thechildren in oursociety. M￿ginalIsed in number5 th* is perhaps unrnatched in living memory. children have been threatened with l(K)sing access io education, farnily, friends and other social and support structures. even food and shelter. The essence of what defm¢5 chilthocrtt and the means of growth and development ihar every child. everywhere, d¢serv¢5 &$ an inalienable right. Th¢ mission ofthe loi has never been more relevarti and rteeded. l am extremely proud of the team who, often through their own personal clJallen8es. re41oubled their commirment to this mission. A5 d¢scribed below. th¢ pivot to on-line acceletzted during 20214nd we delivered prtsgTarnS to more than 33,000 people including 27.CIJO children through virtual and hybrid experiences. Organisationally, we faced these ¢hallenges head on by growing our capabilities with key new team m¢mber& who quickty got up io Speed and helped to devel(Trp and grow our progTammes in both scope and reach. Together. the team has dynamically evolved our straiegy lo enable us to lean into our impad objxtiV¢S. And through ihis WOTk. we saw with clarity that whil¢ the thallenges of this past year prevented much for i)ur childr¢n, the on¢ thing thes¢ events could not slow was their insatiable imagination5, the gift intrinsic in every young person's mind, evcrywhere. I hope this repon gives you a thorough insight into the great work we a¢hieved durin8 this year. l encourag¢ you to join us in our mission. and supw)rt our ￿lief that "imaginatton is the source of all human achievemeni" Sir Ken Robinson {I950- 2020), ioi Founding Patron. Basil Demeroutis. Chair of TTUStees Report from the CEO Children today face an uncerrain fijture and that Iincertkrnry is compounded for marginalis¢d and disadv¥ntaged children. 65Va of children entering primary school ioday will ultimat¢ly end up WOTking in completely new job types that don't yd exist and education syuems are failing to prepare them for the fijture of worf(. Children set their aspirations as young as 7 but according to th¢ OECD. by thai age they aTeaiready facing limits on theiT fvture¥spiratitsns in work. Through our vital WOTK we are delivering a practical. scalable and tran5fi)mative solutiOlI. The Durham Commission of 2019 states -Through engaging in opr￿n11]eS for C[￿]ve learning. wounded in subj¢ct-knowledg¢ and understanding, students, creative capacity will be nurture￿ and their (childr¢n's) personal, social and academic development is grearly ¢nriched.' So our work in focused on ensuring that imagination and creativity are prioritLS¢d by ¢r¢ating th¢ space, tools, and op￿rtunItIeS for creativity io thriv¢ 50 that ¢v¢ry child has the equal opportunity and skills io imagine and achieve their full¢￿ wiential. We design and deliver creative learning experiences acri)ss the aTts, sciences, and digital technologie5. Through these we offer vital life skills. surh as probl¢m solvin& collaboration. critical thinkingand curiosity. These enhpnte ¢hildr¢n'$ development, inrre&sing their Creaiivhty. get ihem ready for the fOun￿10n￿l skills that pr¢par¢ them for th¢ futuw of work and raise their &spirations for ihe fv￿re. Despite th¢ ongoing chall¢ng¢5 of the Covid-19 pandemic. during 2021 at the Institute of lrnaginatlDn we continued to thrive and grow our offer to thousands of children. th¢ir teach¢rs and families across London and internationally. We Institute of Imagination Trustees, report have emerged from ihe pandemic with exwtise im blended learnin& wmbining live pyogrdmmes with digital delivery alongside creating toys and tools to reach those without technology. In July of 2021. 1 w&5 delighted to join the loi &5 our new Chief Executive and began furrher developing our straiegic review, worked on strengthening ourwocesses and policiesas well as our team with greaterdigital. project management and campaign d¢velopm¢nt experience. W¢ brought in new Trustees with deeper experience in education. digitsl and finance and iogether began to strntegically posilion the ioi for ow nexi important sieps forward. We st8n¢d by asktng what our ben¢fi¢iari¢s urgenily ne¢d and wani from u5. Then we d¢velop¢d our new Purp05¢. Mission and Vision 51atements. We l(Troked back tts our WOTk in the lasi 10 years and analysed over a hundred of our activilies alongside devising growth plans for thos¢ we had 5Wted the previous year. This proved pivotsl asth¢se helped evolve ¢YLtr work tnto dtgitsl. woducts and programmes that are deeply embedded in loc￿ disadvantaged ¢ommuniiies. We identified key focus param¢lers 50 a5 to a¢hi¢ve greater impaGt. These now include a fLKUS on.. l. Marginalised 5 10 1 l year old children as a critical age group. 2. Prioritising Lortdon's disadvantaged tM)roughs, with 4 plan to our work regionally in areas of disadvanthge in England to follow. If we had already begun work internationally, we would ihen cornplete this but have Carefulty considered fu¢ure work in¢emth"onally so that we can focus OTI England as a priority in the near fuDJr¢. Parents, caT¢f5, teachets. community leaders as key patm¢rs in ourwork. 4. A rwo channel approach of a) t)oing and d¢livering'. programmes. products and plarfonns. b) Caialysing and convening.. d¢veloping thoughi-leadership and ￿E1dtng a movernent of educators championing our imagination through collaborativ¢ research and community building iDicialiv¢s. The abov¢ ha$ transforn)ed our iniiial idea of a big central IAX)don culnJTal instilulion to a far reaching vision where a greaier number of marginalised children are prepared for the future of Work. To achieve this we are DOW working on more focused artd longer tenn objtctives thah in receni years. So 05 part of o Strdiegy, at the end of 2021 we began to scale our key Sthools Programme. delivered mor¢ imagination Boxes and grew our RE..CODE and Digital Heroes programmes. We are now 8150 developing our research capabiliti¢s in collaErf)ration with k¢y academic par￿eT$ and orwtsatrons and are fmly focused on impa¢t breadth as well as depth with the suppon of our Trusts & Foundations, Corporates and high net worth philanthropic champions. A5 we enter into our nest stage of 8rD￿h. we wani to thank all OUT paTmer5 and furtde￿ including Paul Hamlyn Foundation, John Lyons Charity, Lego and Charles Skey Charrrable Trt￿t for their support this last year and we look forward to workins with th¢m and new parthers in the coming year. Martin Allen Morales. CEO 2021: Summary of our 8ctivities loi's blended learning approach for Schools ¥nd parents Following the rapid transiiion io online and T¢mote learning tn 2020. the ioi ￿ntInUed tr* develop opporDJnities for digitsl content and liv¢ broadcasi leading io the emergence of a mor¢ blended appn)ach in the delivery of our activiiies. The approach, which used digiral as an enabl¢r w expand our reach and tmpaco continued to provtde tactile and immersive experiences while a150 ernpowering teachers. parents and those who 5UPPOrt children. to facilitaie the experience in persott. It was thanks to the development and leamings of our loi ai Home platfom which helped us develop our new Schoo15 Programme.. empow¢ring ieachers to iniegrate innovativ¢ content and workshops to their curriculum work. ioi at Home which was supported by Paul Hamlyn Foundarion. wa5 designed io support parents kn di5advaDtAged communities with dedicated online progrpmrnes for their children. The exw(i5¢ gain¢d here helped us launch our Schools ProgTamme5 with liv¢ broadc&sts direct into the classroorn. ¢ngaging with up to 30 classes simultsneously in each brOad￿st. Institute of Imagination Trustees, report Pr¢-recorded exiension activities and bite-sized videos supported the coniinuation of ourwork in th¢ home via our loi at Home plaiforn). As the UK ¢m¢rged from the pandemi¢, we ¢ontinued to provide activities in person and tn live setting5 but with technology as a key tool io enable COThne¢tivity, collaboration and commurtity. Bulldlng recovery from tht pandemie- The Big Build In the sprhn& &8 the wintsy began io open up, the ioi made plans to bring people back together safely through a celebraiory and ¢r¢aiive programme which focused on the London borough of Newham's Year of the Young Person. Working with 16 partner schools across the borough. The Big Build brought tog¢ther chtldren to ¢O-¢reate a publi¢ art project. Collaborating with local artist Anne Harlid and initrnaiional d¢signers Collective Paper Aesthetics. schools designed ei8hi lai8e sculptures that were installed across the borough in locations thai included The Olympic Park. we$￿i¢1d Stratford and Libraires. The project provided opportuniiies for children. their school ctsmTnunities and the public to come together safely and in outdoor spac¢5. Al¢)ng5ide the lar8¢r ¥ulptural installations. mini-build workshops ran across the borough in school classroom& libraTies and homes. Im4ginatlOD Box Following the succe&% of the launch of our ImaginatKon Box EKototype durtng the pandwni4 Ivhi¢h was generously supported by Th¢ John Lyon's Chartty. we worked on thecreaiion ofa more ￿]lY deVel￿d produci to supportchildren and families with SEND a¢¥oss London boroughs. Workin8 with FAM Studio we designed a more compa¢t box that ould fit through a lettetbox enabling li io reach thousands mor¢ famili¢5. The new trf)x w&s therned 'Colours' and supp)rted a range of sensory projects including shadow theatre, 4ueezy fidgeis and whirly puppets. In D¢c¢mber we launthed a sutces$ful crowd fund campaign io exiend the Imaginati¢)n Box to children in hospitals to help support anxiety and psychologi¢al distr¢55. The box was also distributed io families with SEND acr05S the boroughs of Harrow. Barnet and Breni (John Lyon's supponed boroughs) alongsid¢ live in person make-a-long wortshops. Back ¢0 ID person publi¢ WOTk5hops #ttd events In the summer we work¢d alongside Guatemala's for th¢ London D¢5ign Bi¢nnal¢. NostAlgi& to bring an interactive and highly immersive art pie¢e to audiences who would not nomially engage with th¢ Biennale, held at London's SomeTSEt House. Nosialgia was an immersive tnt¢Active sound installation and workshop programme for children and familie5 V15ltin& The Royal Docks in Newham. Commissioned by the Royal Docks Culwre Team. th¢ progrdmme invited (he publi¢ ro engage with the installation, rellect on the sounds and movement of water and ¢xperim¢Dt through tinkering and making w(thhop5. The Cultthral Team also commissioned a further set of pub15C engagemeni WOTkshop5 as part of their activation in and arowid The Royal Dock's Millenntum Mills and as part of Open House weekend. Here we provided v]rn￿l tours of the Mills for childreR whowere too young io enlerthebuilding alopgside paper city workshops, which provrded participants with the opportunity lo re-imagine Millennium Mills and Ihe Docks through sculptUTd makin8. Save Make Relnvent In the autumn. we launched a new theme of work entirl¢d 'Save Mak¢ Reinvent,. ThE theme brought four new highly interartive workshop aciivitie5 inio loi's rich tapestry of conient, exploring how we ¢an reirnagine our economy of things from a lineareconomy to a more circular one by Teinv¢Thtin8 with w&8te. Activities included ¢￿aring Datutxl inks from food scraps and natural materials, rethinking junk and giving ir a new lease of life through junk bots, circular etonotny storie5 using digital slop motion animations and inventing Circular e¢onorny machines with LEGO Tobotics kits. Save Make Reinvent w&8 launched at a similar time io the COP 26 ￿]k$ in Glasgow 8nd was well received by ieachers, families and childien. li has subs4uently driven the8rowth of our new Scho(>ls Programme. which developed fvrth￿ in 2022. Young mentors The ioi continued to Work directly with children and young people and to strengthen those audi¢nc¢5 that 5UPPOrt our beneficiaries including teachers. parents and carers and community leaders. This was extended in 2021 to young mentor5 through our RE..CODE progrnnme. supp)rted by LEGO Group and in partTt¢rship with London Desig Engineerin8 University Technical College. The programme trdrned aRd equipt>ed a griwp of I SO young m¢niors aged 16-19 ro support six primary xhool ¢lasses on the theme of ecfrhomes us>ng LEGO Eduotion'5 new Spike Essential Roboties Kits. MeniOTS welcorned primary sch¢)ol children intothe University Technicalcollege and visitedthe primary Institute of Imagination Trustees, report schools to support on ideaiion, making PToblem 501ving #nd ¢￿J]ng challenges. RE:CODE will look to expand this apprnath with ygung meniors and UTCS into 2022. Our home of Newham With further disTUPiion at the beginning of the year having a significant impact on communities and %hools. the joi maintained its SUPFA)rt in on¢ of lh¢ hard￿ hit arus of th¢ pand¢mi¢". the London borough of Newham. This r¢gion of the capital, where the ioi resides and works. remains a significant parTher in our prograrnmes &$ we develop a community of pradirx with ¢hildren, teachers, primary sthoot& th¢ University Tecknical College and th¢ Lo¢al Authority. International work Following the success of our partnership with The British Council and The mi¢ro".bit education foundaiion in Hong Kong. Tanzania and Ma18wi, India 2nd Spatn. we continued to our iTJternationa] work in parniership with miRistries of education in Tunisia and Nepal. Through blended and vittual brOad&￿t workshop5 w¢ trained school ieacheTS, who re¢eived class packs of mim..bits from the foundation. in creative ways of using the mi¢ro=bit &5 an invention tool. The programme also supponed ￿h0O]S in how to apply for the ftyJndatii)n's a]mual do".yourbii challenge, which adds social purpose to digithl learning and allows students to apply the￿ digital skills to real world solutions b85ed on the UN Global Goals. Key St?ti5tBu for the Year Wt reached a ioiaj of 33.294 people across the ye4r through programme& Events and public iDsiallations. Of this totAI 27.313 were children. We worked with 244 primary s¢hoo15 and 326 cla5se5 from those schools. We loaned 2,690 digitsl devices to supw)rt Sch￿15 and families who had limi*d a¢￿ io digital technologies. We worked across six London boroughs.. Newham. Lambeth. BarneL Harrow. Barkingand Dagenham and Brcnt. Weworked Kn rwo countries OUf5ide of the UK-. Tunisia and Nepal. Ch•ritable Objectives The charity's objective is to charnpion oppornmities for childmi and young people of all background5. focused o developingtheir imagination¥ a quality that is vithl to creallvity and the ability io adapt artd thrive in ardpidly thanging world. The Trustees have paid due regard to the public benefit guidanc¢ publis1￿d by the Charity Commission. In ihe coming years. the charity will focu5 On marginalised 5 to I l year old children in London's disadvantag¢d boroughs, with a plan io grow our work in regionally in areas of disadvanlage in En8land to follow. If we have a]ready started worf( iniernaiionally. we will ¢ompl¢te thi5 but carefully ci)nsider ￿t￿re work internationally so that we can flxus on England as a priority ift the near (Utt￿¢. Provision of annual report and basis of prepArntio The Trustee& who are direaors for the Purposes of cornpany law. provide the annual report together with the audited f]nan¢ial statements of the chafitsble ￿0Up and company for the year ended 31 December 2021. The financial ￿a￿DentS hav¢ b¢en prepared in accordance with the Charitie5 Act 2011. the Companies Act 21x16, the Metnorandum artd Articles of A$s￿lail0n, and Acwuntin8 and Reporting by Chariii¢S'. Ststement of Recommended Praciice applicable to ¢harit1¢5 preparing iheir financial sthrements in 8¢cordanfX with th¢ Financial Reporting Standard applscable in the UK and Republic of Ireland {FRS 102 second editiOJI- Ociober 2019) (effective l January 2019). The Tn￿teeS have chosen to ￿k¢ advonlage of the sma]I company's exempl)(￿ from pr¢poring 8 $￿tegIC report. Institute of Imagination Trustees, report Strueture. governanee #Trd m¥nagernent The Chariry 15 a company limited by guarantee without share C4)ital and is govem¢d by its memorandum and articles of association. The charity owns the entir¢ share upital of101 Enterprise Limited. the principal activity of which is the delivery of a comprehensive activity programme for the Charity and other parties. The Trusttts who served durin8 the year and at tht da* of signin& wer¢.. Lady A Shaw-scott Adjaye B J Demerout15 M Dorion T.Gilb¢rt (appointed 13 June 2022) A Greenberg (appoini¢d 13 June 2022) K Grussing Dr L Guyton B Koby C Metcalfe M R¢illy S Sotomey (appoinied 13 June 2022) C Tavernier {appointed 13 June 2022) D Uehlein L Watson None of the Trustee$ has any beneficial interes1 in the company. All of the Trustees are members of lh¢ compgny and guarantee io Contribuie £1 in the ¢vent of a windtng up. New Trustees are awoirtted with a view to maintai￿l￿g an appropriate balance of skills and experience. Ap￿in1m¢￿ts 'of Trustees are reviewed by a s¢nior su￿¢0Mmittee of the Board together with members ofmanagemeni and Leadership and ratified by rhe Board of Twstees. Trustee5 hold oifice for a fixed temj of 3 y¢ar5 and one third of Trustees are ¢orisidered for reappointmeni at annually. All Trustee5 receive inforniation about their resp)nsibilities as a part of their indu¢tion. Training 1$ provided to ¢xisthng Trustees &s and when the need arises. The Charity's approach io funthaising is to work with our Tntstee5 and existing supporters to identify new sources of funds and then engage and inspire them with our WOTk. Our focus is on stawiory, ¢¢)rpoTrtes, th]sis and foundations, and major donois as well &$ generdting income fmm events. We Seek to build long-lemi relationships with our supporters demonstraiing a high Social return (>n investment. We do not currently use commercial wticipators or external fundrdi5ers. We are registered with the Fundraisin8 iiegulator and follow applicable law and recognised stsndard& The Trustees have paid due regard ro the publt¢ ben¢ftt guidance published by the Charity Comrni55ion. Day to day management responsibilities in 2021 were carried out by the CEO and other key managemeni personnel in Ihe DiTector group, who are rewarded ai Tates comp¢titive for the sector. Leve15 of delegated auihority. from TnJ￿ccSlO managementhav¢ Ix¢n dethiled in the Financial Poli¢ie5 and Pr(Icedures document. Committnent levels hav¢ b¢en 5¢t as follows". Over £100,￿ by the Board of Trustees £25,¢101 to £IOO.000 by a Tn￿tee who is a member of the Finance and Advanc¢tn¢nl (FAC) Committee £5,0(K) to £25,000 by the CEO Under £5.000 by a Head of Departhieni The auihority limits wer¢ r¢viewed by the Finance Commiltee and approved by the Tnjsiees. Princlpal risks •nd mitigat60ths - The.Twstees have a55es5ed the major risks io which th¢ Charity is exposed. The principal risk for the or88ni5ation is in respect io recovery from the 2020 p8ndemie and economkc instability arising frijm that and latterly. other global Institute of Imagination Trustees report faclors that might have a long-tenn effeci on both programming and funthaising. Reputational damag¢ from a failure in saf¢guarding or health and Safety, and inadequate finan¢ial r¢5erves disTrpting fuwre plans remain th¢ other major risks for the organisation in 2022. These risks have è*en mitigated in part by way of the ¢oThtinuing srntegic revi¢w r¢ferenc&l in th¢ CEO'S report above which has included skKcific re￿mmendatIOnS for oEthtional policies and financial planning which are now being irnpl¢m¢nt¢d. Better plannin& maTk¢t r¢5earch and fundraising dev¢lopment hav¢ strengthened the organisation already. As of today. the Trustees are confident about the current guaranteed annual income and potential income. EXpendI￿re is being closely managed and there are clear liquidity forecast and funding targets to meet. ln a lower incorne s¢¢nario, th¢ Trustee5 hav¢ detemined that expenditure ￿Uld be posrponed or cancelled without pern)anent detriment to the Organi￿10n,S ability to rneet its charitsbl¢ PUTpose in futur¢. Thanks to Support¢r5 Oltr success and continued developrnenl in 2021 were made FX)55ible thanks io ihe generosity of our supporteTS. On behalf of the Trustees and staff at the Insti￿1¢ of Imagination and all those who are irnpacted by our Work, we would like io thank ihe following for their g¢n¢rou5 SUPP)rt in 2021.. Paul Hamlyn Foundatio Young London¢rs Fund John Lyons Charity Black Heart Foundation CAF R¢5ilienc¢ Fund Lambeth Digital Inclusion Fund Royal Dock5 Lerak Foundaiion Charles S French Chapman Charitable Tnjsi Charles Skey Charitable Trust The Capital GTOUP Asper5 Good Cauw Fund The Childhocrfl Tw$t And all those who mad¢ a donation but who with io rernain ￿onYMOUs. Flnancial review It is the policy of ihe Charity thai unrestricted funds which hav¢ not been designaced for a spe¢ific use should be maintained at a level equivalent to btheen Ihree and six month's ¢xpenditur¢. ¢stiTnat¢d io be bets¥een £225,000 and £450.000 at 31 De¢ernber 2021. The Trustees consider that re5¢rv¢5 at this level will ensure that, in the ¢vent of a significant drop in fundin& they will be able io wntinue the Charity's CUTrent activiiies while wnsideration is given to way5 in which additional funds rnay be rdi5¢d. At the end of the year. reserves of £487,073 (2020.. £262.494) were held including restricied filnds of £51,659 {2020-. £57.829) leavin8 free reserves of £435.411. This lev¢l of reserves is th¢refor¢ consisient wilh The policy. During The year. th¢ principal source of funding w&s donations. Totsl income of £1,151.191 (2020.. £741.518) included donations of £966.884 (2020.. £664.157) used to fund our programmes and our operating costs. Expenditure of £926.6l2 (2020= £888,127) consisied of rdising fvnds £151.106 (2020: £189,459) and charitsble aciivifi¢S of £775,506 (2020.. £698,668) rela(ing to programme activity. lthvestment Policy At the end of 2021 and 2020, all inves¢ments were held in cash. When funds allow. lh¢ charity may invesi in a portfolio of investment wducts. The ¢harity will not invest directly in sector5 that it de¢ms in cofiflici with its charitable mandate and obj￿Ily¢S, notably aTTns, pomogrdphy. and toba¢co. The ¢hariry,' through investsn¢nts in fixed income and equity mutyal funds, exchange traded fiu)ds (ETFS) andlor other Institute of Imagination Trustees, report rnvesltrKnt PT4JduGts. Tecogni5e5 th￿ it may have indirect exposure to some. orall. of these sector5. However. furth￿ to consultation with its investment adviseTS ar￿ in the contexi of the overnll holdiDgs of these investrnent prod￿ts. the charity 1$ of rh¢ view thai Lts exwsurt 10 Ih¢se se¢i¢Ns. to the extenE it ¢xists, ts very small. The charity will continually revalue its portfolio and be VL8ilant against ex￿)SUre to se￿Or5 li deems inappropriate. (Mc¢ the eapiial base of ihe charity allow5 for it. the Finance & Advanc¢rnent Committee will corjsider dedic￿ed Socially Re5pon5ible Inve51ing (SRI) PTodu¢ts and as5e$s whether thes¢ Jr¢ appropriaie for the portfolio in terms of diversification. cost5. 2nd nsk profile. Lon8 temi. il 1$ the ambiti(￿ of the Insiituie of Ima8inaiion to move closer towards'pure" S]U products. Going Coneern The Trustte$ assess wheth¢r the use of ihe 8OLn8 concern basl5 of preparation 1$ apprtspriate and whether ih¢re ar¢ any material uncertainties related to even15 or condLTions thai may c3$1 5ignifi¢ant doubi on the ability of th¢ Charity and the Group ro coniinue as a going concern. After piep3ring d¢tail¢d five-year financial plan5 in 2020, updated in 2022 for the period 2023.2025, the Tnjstees have a reasonable expectaiion that the Charity ond Ihe GTOUP have adequate resour¢es to co#tintse in operational existence duTing ihe yfaT from the dai¢ of approval of the fhnancial slat￿neTrts and theiefore continue to adopt the going concerTb basis of prepanng the annual financial 5tatement5. Di5cIDsure of informgtioth to #uditor Th¢ Trustees who held olTice at the date of approval of this Trustees. rew)rf confiTm thai $0 far as they aff each aware. Iheie is no relevant audit infomia¢Ion of whIch the Charity's audrtor 15 uoaware." and each Trnstee has taken all The5teps that they ought TO have taken as a d1￿ctOr io make thetn$elv¢s aware of arty relevant audii informaiion and ¢0 estsblish that the Chority's auditor is aware of that inf(Wmaiion. This confirnation is given and shoLtld be Interpreted in a¢cordan¢e with the provisions of s418 of th¢ C(Mnponies Act 2{￿6. Auditor Pettrs Elworthy & Moore have expressed theirwillillgness io ¢oniinue in office as a￿JItor and a resolution (o reappoint them will be proposed ai the forthcoming Annual General Meeting. Approved by Ihe Board of Tru￿¢¢$ and $18ned on bth3lf of the Boord of T air of rustees Date: 21 Sept¢mbtr 2022 Institute of Imagination Trustees, responsibilities ststement The Trustees are responsible forpTeJ)8ring the Annual Rew1 and the financial ststements in accordance with applicthle law and r¢gulations. Company law r¢quire5 th¢ Tru5te¢5 to pr¢pare fywjcial stat¢m¢nts for ea¢h financial y¢ar. Under that law the Trustees have elect￿ to prepare the financial Sta￿ments in accordan¢e with United Kingdom G¢nerdlly Accepted A￿O￿ntIng Pracrice (Uniied Kingdom Accounting Standards and appltcable law). including FRS 102 The Financial Reporting StsndaTd applicable in the UK and Republic of Ir¢land. Undercornpany law the TNstees must not approve the financial staternents unless they are saiisfied thai they give a and fair view of the slai¢ of aff8irs of the company and of th¢ profit or105s of the company for that period. In preparing these fsnaficial sratements. the TtitS1￿ ore r¢quired to.. 5¢1ect suitsble aceounting wJli¢ies and then apply them ¢on$ist¢ntly. make judgments and ac¢ouniin8 eslimates ar¢ re&sonable and prndeni. PT¢par¢ ihe financial 5tat¢m¢nts on the going concern basis unless it 15 inappropri*e to presume that the company will continue in business. The Trnstees are responsible ftsr k¢¢ping adequate aCUMmting records that are sufficient to show and explain the company's tr￿St￿lOn$ and disclose wilh reasonable accuracy ai any time the fLnan¢ial positton of the company and ¢nable them to ensure rbai the financkal staiements comply wilh the Companies Act 2006. They are also responsil)le for safeguarding the assels of the company and hen¢e for tsking rWo[￿le steps Cor the prevencion and dete¢tion of fraud and other t￿egUlarities. The Trustee5 are responsible for the maintenance and integrity of ihe Corporate and fmancial iThfoma¢ion included on the company's website. Legislation in the United Kingdom governiRg the preparat￿ and dis5erntnation tsf fthancial statements may differ from legislation in other Jurisdictio￿S. Institute of Imagination Independent auditor's report to the Trustees of Institute of Imagination OPINION We hav¢ audited the finan¢ial 5tatem¢nts of ln51iiyte of Imagination Ithe'parenT thariTy? and its subsidiaries (the'group,) fortheyearended 31 December2021 which ¢ompri5ethe Consolidated Ststement of Financial A¢tiviti¢s, the Con501idated Balance Sheet, Charity Balance Shtet, Consolid￿ed Stat¢m¢ntof Cash Flowsand the related noies. The f￿ancIal r¢poninB framework thai has been applied in their preparation is applicable law and Uni*d Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of IrelaThd' (Unit¢d Kingdom Generally Accepted Accounring Practice). In our opinhon the fthancial swements.. give a true and fair view ofihe state of the group's and of the parenT¢h8ritabl¢compaDy's affatTS as at 31 DK¢mber 2021 and of the group's intoming resources aftd applitation of resources. including lis >ncom¢ and expendiwre for ihe year then end￿. have been properly prepared in ac￿rdanCe with United Kingdom Genernlly Accewed Accounting Prd¢tice" and have been prepared in a¢￿Idance with the requirements of th¢ Companies Act 2(M)6 and the Charities Act 2011. BASIS FOR OPINION W¢ condu¢ted our audit in atcordance wrth International Stsndards on Auditing (UK) (ISAS (UK)) and appltcable law. Our responsibilities underthose stsndard5 are furtherd¢scribed in ihc Auditorfs responsibilities forth¢ auditof th¢ financial stat¢m¢nlS section of our report. We are ind¢pendent of th¢ group in accordance with the eihical requirem¢nis ihat pre rel¢v3nc toouraudir of the frllancial statements ift the Uniied Kingdom. including the Financial Reporting Council's Ethical Standard. and we have fvifilled our other ethical rcsponsibililies in accordance wilh thes¢ requirements. We believe that the audii evidence we have obtsin¢d is suffJci¢nt and approprhate to provide a basis for our opinii)n. CONCLusiof4S RELATING TO GOING CONCERN In auditing the fuhancial swements. we have concluded that the TTUStees' use of the going concern basis of accountin8 in the preparation of the flnancial statements is appTopriare. Based on the work we have performed. we have not ideThrified any matertal uncertainries relating io events or wnditions that, individually or colleciively. may casi srgniftcant doubt on the group's ability lo continue as a goi￿g concem for a period of at le&5¢ twelve months from when the fmancial stsiements are authorised for issue. Our iespoJJsibilitie5 and the responsibilities of the Trustees with re5F¢¢t to gohng concern are deKribed kn rhe relevant sections of thi5 r¢port. OTHER INFORMATION Th¢ other informaiion comprises the inforniati¢)n included in th¢ Annual Report other than the fmancsal staternents and our Auditovs Report thereon. The Tnjsiees are responsible for th¢ oth¢r information contained within the Annual Report. Our opinion on th¢ financial statements does not covertheoiher infomiaiion and, ¢xc¢pl to the extent otherwise explicitly stated in our w¢ do expre55 any fonn of assurdnce conclusion thereon. Our responsbi iliry is ￿ read the other iybfonnation ￿￿. in doing so. wisid¢r whether the other Inforni￿l0ll is materially inconsistent with the financial statemEnts or our knowledge obtained in the course of the audit, or oth¢rwis¢ appepts to b¢ tnaterially misstated. If we identify such mai¢rial iThc¢)n5lStencies or apparent material misstsiements. we are required to detennine whether this giv¢s rise to a material misststement in the fmancial starements ih¢mselve5. If, ba5¢d on the work we have perforrned, we conclude that ihere is o m￿trial rnis5tatement of this other infomiation. we are requ￿ed to rep)rt Ihat fact. We have Doihing to report in this regatd 10 Institute of Imagination Independent auditor's report to the Trustw of Institute of Imagination (continued) OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 21YJ6 In our opinion, Iwed ott the work unden8k¢n in th¢ wurse of the audiL the information 8iven in the Trust¢es'R¢wrt fwthe financialyearforwhrch th¢ financial ststements ar¢ prepared is consistent with the financial swements. The Trusitts, Rewrt has been prepared irt accordance with applicable legal requirements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In th¢ light of our knowl¢dg¢ and understanding of the charitable ¢ornpany and its enviroiirnent i)btained in the Course of Ihe audiL we have not ideniified material mis51atements in the TTY5￿$. liepon. We have nothing lo rep(rt in res¥￿¢ of the following matters Lll relation to which Companies Act 2(Q6 requires us lo r¢port to you if. in our opinion.. The parent charitable company has not kept adequaie aceounting records or rerurns ado4uate for OUT audit have not been received from brancbes not Visiitd by us. or The parenl charitable company fman¢ial ststements are noi in agre¢m¢nt with the accountingrecords and returns. or ¢¢rtain disclosures of Trusices, remunetation spe¢ifKd by law are not made. or we have not r¢c¢iv¢d all th¢ information and explanations we require for our audit: or the Trnstees were not eniiiled io prepare the financial s(aiements in accordance with the small companies regime and take advantage ol the small ¢ompanies' exemptions in preparing the Trustees, Report and from the requir¢ment to prtpaTe a Strategic Repo RESPONSIBILITIES OF TRUSTEES As explained more fully in the Trusiees. Responsibilities Sw¢menl. the TTUStees (who axe also the dir¢ctor$ of the haritable company for the puws of company lawl are responsible for the pr¢parntion of the frnaocial staternents artd for being satisfied thai they give a true and fair vi¢w, and for such intemal contyol as th¢ Trustees detrrffline is Ttecessary to enable ihe preparation of fmancial staternents that are free frorn material miSst￿¢Meft¢ whether due to fraud or error. In preparing the financial staiemenw the Trustttswr r¢s￿nsibl¢ for &ssessingthecharithbl¢ CoMp￿Y'S #bility to continue as a 80ing concern, diglosin8, as applicable. matters related to going concem and using the going concern basis of accounting unless the TwS￿e$ eith¢r in¢Md to liqutdate the charitsble company orto ¢ease operations. or havemo realhstLC alternafive but to do xy. Institute of Imagination Independent auditor's report to the Trustees of Institute of Imagination (continued) AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMEIYTS Our objeciives are to obtain re&sonable assuronc¢ #bout whetherthe fmancial swernents as a whole are free from material tnisstatemell4 whether due to fraud or ernx. and io issue an Audiwls Report thai include5 our opinion. Reasonable assurnnce is a high lev¢] of assuranc< but is not a guaTanttt that an audit Conducted in accordance with ISAS (UK} will always deieci a material misstsiemeni when it exists. Misstatements can arise from fraud or error and are consideTed material if, individually or in the a8gregate, they could rewnably be ex￿trd to hnfluenrx the eeonomic decisions of U5¢rs taken on the b&5is of these financial st4r¢m¢nts. Irregularities. including fraud. are instsnces of nort40mplian¢e with laws and regUl￿10n9. We desi8n procedures in line with our responsibililies, tsutlined above, io dfftct material misstatements in respect of irregularities. including fraud. The extent io which ovr procedures ar¢ capabl¢ of d¢te¢ting irregularities. including fraud is detailed below. Our approach to identifying and assessing the risks of material mbsstarement inrespecr of irre8ulariii¢s, including fraudand non complianee Wlth law$ and regulations. was a5 follows= the enBagernent partner ensured that the engagemeni team coll¢ciively had the appropriate competence. capabiliti¢s and skills to tdentify or recognise non compliance with appli¢able laws and r¢guSations' we identified th¢ law5 and regulation5 applicable to the company through discussions with direttors and othey management, and from our knowledge and experience of th¢ s¢ctor: we obtained an undeTsranding of the legal and r¢gulatory framework appl)￿ble to the company and how th¢ company is complying with thai framework. we obtained an und¢rsfandingof the company's policies andprocedureson compliancewith laws and regulations. including documentstion of any in5tsTr￿$ of non-compliartce. we identified which law5 and regulations were signifi¢anr in the context of the company. The18ws andregulations we considered in this contexi were Companies Aci 2006 and UK taxaiion legislation. We assessed the r¢quir¢d compliance with these laws and regulations &5 part of our audit procedures on the related financial ststement iiems., in addition, we wnsider￿ PTovisions of (Aherlawsand regulations thai do not have a direct effecton the financial statements bui ¢omplianc¢ with which rni8ht be fvndamental iothe company ability to cyerate orco avoid ma¢¢rial penalty: and identified laws and regulations were ¢ommuni¢at¢d within the audit team regularly and the tearn remained alert to IDStanC￿ of non-compliance throughout the audiL W¢ assessed the susceptibility of the company's financial stateTnenls to m￿erial missra(emen( including ob￿l￿1n8 an understandin8 of how fraud mh8ht occur. by making enquKries of management as to where th¢y Considered there was susceptibility to fraud, their knowledge of actual. susp￿ted. and alleged frdud and ¢onsidering th¢ intetnal wirrols in place to miugat¢ risks of frnud and non-compliance with laws and ￿gUlatiOns. We discussed among the audit engagemeni learn regarding the opwrtunities and incei]tives that may exist within the organisation for fraud and how and where fraud might occur in the fmancial 5taiemenis. In cornmon with all audits under ISAS (UKI, w¢ are also required ro perforni specific PTo¢edur¢s to respond to the risk of fraud through managemeni bias and override of ¢ontrols. In addrE5sing the risk of fraud through management bias and override of controls we.. t¢51¢d a sample journal entries to id¢nEify significant or unusual transattions: investigated ihe rationale b¢hind significant or unusual transactions." afftd assessed whether judg¢m¢nts and assumptions made by m&nagement were indicative of potential bias. 12 Institute of Imagination Independent auditor's report to the Trustees of Institute of Imagination (continued) In response to the risk of irregularities and non complianc£ with laws and regul*ions, w¢ designed procedur¢5 which in¢luded, but were not lirnited to_. 8gr¢eiRg fiRancial ststemens dis¢losuTe5 lo underlyingsupporting docwnentstion,. reviewing minutes of meerings of those charged with governance" and enguirins of managmentas lo any artual and p)tenlial litl8aiion. claims and any corr¢5pond¢nc¢ with regulators. Ther¢ ar¢ inherent limitatiorts in our audit procedure5 described aknve. The More rnnoved that laws and regulaiions are from financial transactions. the less likely it is that w¢ would becom¢ aware of non compliance. AuditiTr8 Stsndards also limit the audrt procedures required to identify nort tompliance with laws and regylaiions to enquiry of the directors and oih¢r managemeni aTrd ihe inspection of regul&ory and legal correspondence. if any.. Material misstatetnents that arise due lo fraud can be harder to detect than ihose thai arise from enor as they may involve d¢lib¢rate concealm¢nt or ¢ollusion. A further description of OUT responsibilities for the audii of the financial 5tAlemtnts hs located on the Financial Reporting CouD¢il'5 Website at.. www.frc.org.uklauditorsTesponsibili¢tes. This descrtption fornis part of our Auditor's Report. A funher d¢scriprion of our responsibiliiies for the audii of the fJnan¢ial $￿tements is lo¢aied on the Financial Reporting Council's website at: www.fr¢.org.uklauditor5r¢spon$ibilities. This description forms part of our Audiiorfs Report. USE OF OUR REPORT This report is rnade solely io the charitabl¢ company's lnern￿￿ as a body. in accord8nc¢ with Chapter 3 of Part 16 of the Comp8nie5 Act 2006. Our audit WtsTk has been vnd¢rtak¢n $0 that we might state to the charitable company's members those matters we are required to State to them in an Auditorfs R¢port and for no other purpose. To the full¢st ext¢nt pennitted by law, we do not awept or wurne responsibility to anyone otheT than the charitable company and its mernb¢rs, as a body, for our audit work. for this re￿r¢ or for the opinions we have fomi Jayne Rowe (Senior $tatu¢ory auditor) For and on behalf of Peters Elworthy & Moore Chartered Accountants St8TUtory Auditor Salisbtsry House Staiion Road Cambridge CBI 2LA Dat¢.. Ag. aoax . 13 Institute ofimagination Consolidated Statement of Financial activities, including income and expenditure account for the year ended 31 December 2021 un￿triCted Rtstri¢l Notes ftsnds funds 2021 2021 Unrtstritted Restrieted funds fund5 2020 2020 Toi•l 2021 Total 2020 Donations Other trading aciivities 4 Inveslment inc¢)rne Other Income 765.802 184,183 124 201.082 966.884 184,183 124 423.347 56.700 707 19.954 240.810 664.157 56,7sYJ 707 19.954 Total incom¢ 950,109 201,082 1,151.191 500,708 240,810 741.518 Expenditure OD: Trading and Taisitig fvnds Chariiabl¢ activiii¢s {151,106) (151.106) (189.459) (189,459) (568,254) (207.252) (775.506) (479.413) (219,255) (698,668) Total eypettditure (719J60) (207252) (926.612) (668.872) (219,255) (888,127) Net movtmtnt in runds 230.749 (6.170) 224.579 {168,164) 21,555 (146,609) Reeoneiliation of rund5: Total funds brought fonvard Is 204.665 57,829 262,494 372,829 36,274 409.103 Total funds ￿rried forw8rd 435,414 51.659 487.073 204,605 57,829 262.494 There were no oiher recognised gains or losses other than those lis*d above and net (exp￿di￿reV incom¢ for the year. All income and exp¢ndirnre derive froTll coniinuing aciiviiies. The notes on pages 18 to 31 forn) part of these fmancial statements. 14 Institute of Imagination Consolidated Balance sheet As at 31 December 2021 2021 202Q P40tr Fixed assets Tan8iblc assets 13 23,994 24.311 Current assets Debtors Cash ai bank and in hand 14 153.421 620,203 23.401 375,025 773.624 398,426 Creditors: #mounts fgljbng due witbin one ye*r 15 (310.545) 1160,2431 Net turrent assets 463.079 238.183 Tot*l ￿Set$ less ¢urrent li*bilitit5 487,073 262,494 The funds ofthe Ch*rity: Restricted funds Unrestri¢ied ￿rtd$ 18 18 51,659 435.414 57.829 204.665 487,073 262.494 The surplus of the parent charity for the year for Comp8nies Ad purpos￿ is £169,253 (2020 defici(.. £146.757}. As pem7itttd by section 408 of ihe Companies ACL ntr separ*¢¢ $tsiemeni of financial activitses ig preseTht¢d in respect of the parent charity. The finan¢ial s1oi¢menis of lh¢ Institute of Imagination {registrati¢)n nLJmber.' 04921852) were approved by the Board tsf Trustfe$ and authorised for issue on 21 Septemb¢T 2022. They were signed on its b¢half by". Chair of Trn$tee5 The notes on pa8es 18 to 31 form part of these fin3n¢ial stsiements. 15 Institute of Imagination Charity Balance sheet As at 31 December 2021 2021 2020 Tyotes Fixtd #ss¢ts Investment in subsidiary Tangible assets io 18,472 10 L6.533 13 18.482 16,543 Current *5sets Debtors Cash at bank aTwJ in hand l4 54,327 617.937 62.548 371,555 672.264 434.103 Creditors.. Amounts falling due witbiTh one ye8r 15 1209.155) (138,308) Net curreni #ssets 463.109 295.795 Total ass¢ts less curYtDt liabilitirs 481.591 312.338 The funds of the Charity: Restricted funds Unrestricted funds 51.659 429.932 57,829 254,509 18 481.591 312.338 The financial ststements of the In5titut¢ tsf Ima8ination (registration number." 04921852) were approved by the Board of Tnj ees an thoris¢d for issue on 21 S cmber 2022. llw w¢re $18ned on it5 b¢half by: air of Trustees The notes on pages 18 to 31 fom) part of these financial S￿¢m￿ 16 Institute of Imagination Consolidated Cash flow statement For the year ended 31 December 2021 2021 21120 Note Net C8sb nows frorn oper4ting 8etivities 21 258.147 (54,473) C3$h flows from investing #ctivitles Inv¢5mient incom¢ Purchase of tangible fixed assets 124 (13.093) 707 (16,753) Net caskn flows from inv¢5tiTrg 8¢tiviti¢s (12,969) (l6.c￿6) f4et Incr￿$¢ in Cash a•d t85h eguival¢Dts in the yt*r 245,178 (70,521) Cash and cash equivalents ￿ the beginning of the yeJT 375.tr25 445,546 Total ¢ash •nd c8sh equivalents at the end of the yur 620,203 375,025 R¢con¢iliation lo c*sh *t bank and in C&sh at bank and in hand 620.203 375,025 CLsh and cash equival¢nts 620.203 375,025 The noies on page5 18 ￿ 31 forni part of th¢s¢ fmanctal $￿eMents. 17 Institute of Imagination Notes to the financial statements For the year ended 31 December 2021 Aecounling poli the stat¢ment of financial acrivities Is in respett of the pension contributkons payable in the year. Diff¢renc¢s between Contributions payabl¢ in the year and contributions actually paid are thown as either accNals or prepayments in the balan¢¢ sheei. T8x¥tio The pannt company is a regisiered chariry and has no liabiliry to corpoTation tax on its charitsble activities und¢T the Corporation Act 2010 {chapters 2 and 3 of part Il, section 466 onwards) or section 256 of the Taxaiion foT Charg¢able Gain5 Act 1992, to the exieni Surpluses are applhed to its ¢h8ritabl¢ purposes. Current tsx for the subsbdiary company, including UK ¢orp¢xation rax. is provided at amounts expeeted to be paid (or recovered) using ¢he w rates and laws thai have been enacied or sub$￿tIVelY enaaed by the balance she¢t date. DefetTed tsx is recogniz￿4 in rESp￿tOf￿11 timingdiff¢r¢nc¢thathav¢ QTigiDat¢d but nol T¢ve￿Il at the balance sheet date where transactions or events ihai resulr in an obligation to pay more tsx in the future or a right to pay less tsx in the future have occurred at the balance sheet date. Timing diffuen¢es ar¢ differences ar¢ differences between the Company'5 taxable profits and its result5 as Stated in the financial Sta￿Ments thai arise frorn the inclusion of gains and losses in tsx assessments in periods different froln those in which they are re￿gniSed in the financial stat¢Thents. Deferred tax 1$ measured using the tax rates and laws that have beert enacted or subsraniively enacted by th¢ balanc¢ sh¢et date that are expec*d io apply ￿ the r¢versal of th¢ liming difference. Foreign eurrtneles Monetary &s5ets and liabilities are translated into sterling ai the ex¢hang¢ rJte ruling on the balance sheet date. Foreign exchange gaiDS are rxognised as other inwrne and foreign ex¢b￿ge losses ar¢ re¢ognised withiR the relevant category of charirable aaivity expendiwre for the wiod in which they are Incu￿ed. Operating leases Expendriure on Owdting leases is accoLWta for (m a Strdi8ht-line basis over the life of a las¢. Flnaneial Instruments Financial assets and financial liabilities aTe re¢ogni5¢d when the charity becomes a paty to the Con￿¢tual provisions of the instrurnent. All financial 18sets and liabilities are initially measured at transaction price (including transaction costs). Critical accounting judgemeDts and key sourees of estima¢ioD uncertainty ly) th¢ 8pplication of the Group's accouniing ￿11¢1¢5. which are described in note l. the Trustee5 are required to make judgemenis, estimates and as5UTllPtions atK)Ut the carying amounts of assets and li#bilities that are not T¢4dily appar¢nt frorn other sources. The estimat¢50nd &ssociated a55umptitsns are based on historical experiene¢ and other factors ih* ar¢ conskder¢d to k ftlevani. AcDJal results may differ from the5¢ estimates. The e5titnate5 and underlying assumption5 are r¢vi¢w¢d on an ongoing b&sis. Revisions to accounting estimates are recognised in the p¢riod in which the e#imate is revised if the revision affects only that perio4 or in (he period of ihe revision and future periods if the TeVi5ion affects both current and future periods. Th¢ Trusiee5 do noi consider ther¢ to be any critical judgements or sources of estimalion uncertainty requiritig disclosure beyond the accountin8 policies listed above. 20 Institute of Imagination Notes to the financial statements For the year ended 31 December 2021 Ineome from donaiions Unrestrieted Restrieted funds 2021 Unrestricted Restritt fund$ fuRd5 21120 202 fund$ Tot81 2021 Total 2020 2021 Don*iims and gifts 765,802 201.Of2 996,884 423,347 240,810 664,157 Donation5 and gtrfts ar¢ deriv￿ from targeted fundraising by the organisation. Ther¢ were donated services in 2021 or 2020. Analysis of iDeome frorn trading gdivities 2021 21120 Public admissions Corporaie sales School and partrership sales Oth¢r trading inciHne 223 34,652 10,682 11.143 184,183 184,183 56,700 All iThwm¢ fr(xn trading activities in 2021 and 2020 was re5trid¢d (Jher Income 2021: Nil (2020.. £19.954} in prioryear related to govemmenl grdnts receivable undercoronavirua job retention S¢h¢rne (CJRS) io cover salaries of fvrlough¢d staff. 21 Institute of Imagination Notes to the financial statements For the year ended 31 December 2021 Expendityre 2021 2020 151,106 189,459 Charitable 8Ctivilie$ Activilies undettsken dirtttly Support costs {note 7) Govemance costs (note 7) Total 551220 212201 457.522 174,759 775,506 698,668 926.612 888.127 Charitable activitbO undertaken directly primarilyconstiDJte researrh and development in the Imagination Lab5 and finding a suitabl¢ site io esrablish a pennanent c¢nw¢. COM of raising fijnds includes salaries and other direct ￿ndraiSIng costs. C•5t•f T•tti 1•20 5vpport 7021 &JppDrt Mana8ement and governance Fundraising Costs Marketing alld PR Experi¢n¢e and learning 47.373 343.966 94.098 9.635 40.949 377.736 12.855 404.194 70,758 238,307 94.098 102.620 50.584 16.081 45.284 377.736 348,690 66.387 375,452 102,620 61.365 348.690 I5I,106 762,651 12.855 926.612 189.459 632281 66.387 888,127 Auditors. r¢ffjun¢ratto 2021 2020 Audstor's remuneration-. Fee5 payable to the charity's audiior for the audii of the tharity's annual fthancial 51aiernenTS Fees payable to the charity's auditorfor other services to the gr￿p 9,8¢XJ 850 9.000 860 22 Institute of Imagination Notes to the financial statements For the year ended 31 Deeember 2021 Artalysts of governan¢e 8nd support Costs 2021 2020 Administration costs Sthff costs IT expenses 78,208 120,303 15.689 22,500 135,082 17,177 Total support c¢>sts (note 51 212,201 174,759 Audit and professional costs 12.855 66,387 225,056 241,146 Support costs are those which allow charitsble aciivities to be Carried out i￿t which do not relate dir¢ctly to an activity. Governance costs are those which are attributrble to th¢ Charity's compliance with consritutional and ststuiory requirements, including audit. Govemance w5ts hav¢ t*en alloeated to ch¥itable acrÈvities as they relate directly io fulfilling the obj¢cts of the Charity. Trustee5 None of ihe Tnjstees (or any pe￿n$ ¢onn¢ci¢d with them) received any remunerntion or r¢irnbursed expenses during th¢ year {2020= nil). 23 Institute of Imagination Notes to the financial statements For the year ended 31 December 2021 Employees The payroll costs were as follows.. . 2021 2020 Group and Charity Wages and salaries Social security costs Other pension costs 451,366 45.884 12,816 452,862 42.809 12.504 510.066 508.175 The av¢rdge monthly D￿n￿r of full titn¢ and part time ernployee5 during the year Was.. 2021 No. 2020 No. Group and Charlty Managemeni Suppvrt The Dumber of employees whos¢ ¢mployee benefits (including redundancy costs bui excluding employers pension tosis) was £60,0(M) or more was.. 2021 Number 2020 Number £80.00] to £90,(K(S £60,00110 £80,( Key mana8¢ment personnel 8re defined as the Direcror GTOUP that includes the CEO. forn]er Chief Executive and Co-Direc¢ors. The total employment benefits paid to key management personnel {including p¢n5Lon contrtbutrons) during the year was £272.518 (2020.. £229,393) which tsn¢luded redundancy costs of £nil (2020.. £nil). Key management p¢r50nntl ale remuftcrdted * maykel rate. 24 Institute of Imagination Notes to the finaneial statements For the year ended 31 December 2021 io. Tax OD profit of tr￿1￿8 subsidiary 2021 2020 Analysi5 of tax charge on current 8ctivities UK corporaiion tax at IW• based on profit for the year Factors affeeting tsx charge for the ye*r The tax 3SSC5sed for the year is the Same as (2020.. higher than) the standard rat¢ of corporatign tsx in the UK of Q/0 (2020.. Iwh). The differ¢Dces are explained below: 2021 £￿0 (100 2020 £￿0 (147) (Profit) before tax Profrt multiplied by stsndard raie of Co￿0￿11(￿ in the UK of I Deferred tax not r¢¢ogni5ed (20) 20 (28) 28 Investment in subsidi8ry Charity Total C05t At l January 2021 Addilions 10 At 31 December 2021 10 The Charity OWDS the entire issued ordinary share capitsl of101 Eniery)rise Limited. The registered office of the subsidiary is the same as thai of the Charity. Th¢ principal activity of the company 15 the delivery of a comprehen5iv¢ programme of aciivities for a range of audien¢es. 12. Princi￿1 5ubsidisry Subsidiary name Company re8lStrdtion number Basis of control Iol Enterprise Limited 11069407 IO¢F/ty ownership Total assets ag * 31 De¢¢mber 2021 Tofal Itabilr¢i¢s as 4t 31 Decernber 2021 Toral suryllus a5 ai 31 Decemkn 2021 Turnover for the year ended 31 December 2￿21 Expenditure for ihe year ended 31 December 2021 Profit for the year ended J l December 202 I £167,070 £161.588 £3,482 £169.915 £114,588 £55.327 25 Institute of Imagination Notes to the financial statements For the year ended 31 December 2021 13. Tanglble fixed #ssets Group Librxry Equipment Computer EquipmeTrt Fliturts. rJtting4 and equipment Total Cost At l January 2021 Additions Disposals 14298 5,543 42.385 7.550 (21,205) 27,413 84,097 13,093 127,413) {48,619) Ai 31 D¢umb¢r 2021 19.841 28.730 48,571 Accumul8ted deprefialion Ar l January 2021 Charge for the year Depreciation on disposals 1,583 9.123 30.790 4286 {21.205) 27.413 59,786 13.409 (27.413) (48,618) At 31 D¢cemb¢r 2021 10.706 13.871 24.577 Net book value Al 31 tkc¢mb¢r 2021 9.135 14.589 23,994 Al 31 D¢cemb¢r 2020 12,715 11.596 24,31 Chsrity Library Equipment Comput¢r equipment Fixtures, ritting4 and equipmenl Total C05t At l January 2021 Addifions Dispo5tt1s 14.298 5.543 25.8 7.550 (21.205) 27.413 67,511 13,093 (27.413) (48.618) Ai 31 December 2021 19.841 12,145 31,986 A¢¢umul8ttd depreeiatlon Ai l January 202 5 Charge for the year Depreciation on di5P05al 1.583 9,123 21.9&2 2.031 (21205) 27.413 50,978 11.154 (27.413) (48.618) At 31 Dec¢mber 2021 10.706 2.808 13,514 Nei book Value At 3 5 December 2021 9.135 9.337 18,472 At 31 December2020 12,715 3.818 16.533 26 Institute of Imagination Notes to the financial statements For the year ended 31 December 2021 14. Debtors Gro Charit 2021 2021 2020 2020 Debtors #fter mort th¥n one yt*r Amounts owed from subsidiary undeTtsking 45,792 Debto¥s wlthin One y￿r Trdde de￿Or$ her debiors Prepayments and accnjed income Amounts owed from subsidiary underraking 136.199 11.376 5,846 16.200 11.376 5.846 20.905 18.022 5.379 11,372 5,384 153.421 23.401 54,327 62.548 Credilors: amovnts falling due Y4ithiD fjDe year Grou 2021 . Charit 2020 2021 2020 Trade creditors Taxes and social security costs Chher creditors Accruals Amounts owed io subsidiary undertakin8 81,656 34.911 15.728 178.250 80,170 10.693 1.942 67.438 80.068 34.911 16.641 38.252 39,283 79,588 10,693 1,179 32,438 14.410 310.545 160.243 209,155 138,308 Grou Chari 21121 2020 2021 2020 Deferred incom¢ at l Jan 2021 Resources deferred during the year Arnounts released from previ(w5 periods 1S.OCrtI IOS.(M)O (15,000) 105,000 16. Called-wp sh•re Capital The Charity is lirniied by guarantee withoui share c4)1￿. 17. Commitments under optrating leases At 31 December 2021 the Group and Charity had £6.400 non-cancellab]e owating le&8es commirment which f8115 within less than one year. 27 Institute of Imagination Notes to the fjnancial statements For the year ended 31 December 2021 18. Analysis of eh*ritable funds- Current ye8r Balanet at I Janu•ry 2021 B£l*ttce #t 31 December Expthdltsre 2(J21 Income Unrestritted Funds InsriDJl¢ of Imagination 101 Enierprise Limiied 254.5(K) (49.835) 780,194 169,915 (604,772) (114,588) 429,922 5,492 204.665 950.109 {719,360) 435,414 Restricted funds Lamb¢th Community Progrydmlne Black Heart Foundation LxTek Foundation Outreach Progrnmme . Local Govemment fijnded programm¢s Community Pro￿amMe responding ￿ COVtD 16.719 (16,719) (25.0￿) 130,000) (8,470) (49,308) (77,755) 25,0 30,0(K) 51,550 47,923 6.5 8,470 l J85 31.255 51,550 5,029 {4.920) 57.829 201,082 (207252) 51,659 262.494 1.151.191 (926,612) 487,073 AnaJy5i$ of tharilable funds- Prior year B41•tt¢¢ At 31 B•lan¢e •t December Expelditure 2020 2020 Unrestricted Fund5 Institute of Imagination 101 Enterprise Limited 422,811 (49,982) 444,Th)8 56.7(X) (612,319) (56,553) 254,5￿) (49.835) 372.829 51)0.708 (668,872) 204.665 Restricted fund$ LaTnbeth Colnmunity Programm¢s Outreach Programme Local Government funded programrnes Community Programme responding ￿ COVID 167 19.913 32,447 54,867 61,832 91,664 (32,089) (66.310) (60,447) (60.409) 16,719 8,470 1,385 31255 36274 240.810 (219,225) 57,829 409.103 741,518 (888,127) 262,494 Unrestricied fi]nds ¥r¢ those which are available for the g￿er&I purposes of the Charity * th¢ di5¢r¢tion of th¢ TTu51￿$. 28 Institute of Imagination Notes to the financial statements For the year ended 31 December 2021 18. An*lysSs of charltable funds- Current year (eontinued) Re5tri¢ted fund in¢om¢ of £201.082 {2020= £240.810) r¢la*5 to donations for the following acttviti¢s.' L4mb¢th Community ITrowdmme fund suptM)rts activitie5 directed towards local Lambeth iesidents. The Outreach ProgTaTnme fund supports other community-based activiiies chroughout London. Local Government fvnded programmes are supported by grants provid¢d by loral auth()rities and other gov¢rnmeDt bodits. The Community Programme responding to COVID SUPPOTt5 hom¢ prograrnming.. The Black Heart Foundaiion in suppon of the Imagination Box progrdmme The Lerak Foundation in supwrt of a ¢omrnunity art installation and programm¢ 19. Analysis of nei assets betwttn funds- Cyrrenl year U•r¢5tri¢ted Restricted funds fundg Totxl Group Fund balanees ai 31 December 2021.. Investm¢nts Tangible assets Current assets CTedirors- amounts falling due wiihin one yeax 23,994 721.965 (310.545) 23,994 773.624 (3 10,545) 51.659 435.414 51,659 487.073 Chartty Fund balances at 31 December 2021: Investment5 Tangible ass¢ts cU￿t￿t asseis Creditors.. amounts falling due within oneyear io 18.472 620.605 (209.155) 10 18,472 672,264 (209.155) 51,659 429.932 51.659 481.591 Analysis of net ￿set$ belween funds- Prior ye*r U#restricted Re5¢Tltted fvndg fvwds Total Group Fund balances at 31 DeceM￿r 20Xt.. Inv¢51men Tangible assets Curr¢nt assets Creditors.. amounts falling du¢ withtn one year 13,174 351.734 (160243) 11,137 46.692 24,311 398.426 (160243) 204.665 57.829 262.494 29 Institute of Imagination Notes to the financial statements For the year ended 31 December 2021 Charity Fund balances at 31 December 2020: Investments Tangible assets Cu￿ent assets Cr¢ditors.' amounts falling du¢ within on¢ y¢8r 10 5.396 387.411 (138,308) 10 16,533 434.103 (138.308) 11,137 46.692 254.509 57.829 312.338 20. Related p•rty ¢r#nsaclitsDS During the year. 101 Ente￿ri￿ Ltd Charged the InSti￿tr of ImAgination £41.006 for seThices relating io the d¢liv¢ry of Imagination Lab and ￿her outreach programmes. In5titut¢ of Imagination tharged JOI Enterprise Ltd £13,869 for managemen( premises and human Te50urces. In 2021, 8 donaiion received from Black Heart Foundation, a party related io a trustee, amounted to £25.000 a donation from John Lyons Charity, a parry with a mull￿1 TTU5te¢, amount¢d to £25.900. No donations w¢r¢ rtttived from Tnjmees during the previou5 year. 21. Recon¢ili%titin of net (¢xp¢ndilyreyincome to tash gen¢r•ted by operating attivlties Grijup 2021 Group 2020 Net in¢omel(expenditure) PEr ststement of financial ¥tivitits Add back depre¢iaiioD ch8rg¢ Deduct investrneni income (Incr¢aseYd¢creas¢ in debiors IncreaseJ{decrease) in creditors 224,579 13,409 (124) {130,020) 150.303 (146.609) 9,342 (707) 72,905 10.594 Cash generated by optr¥ting 8diviti¢s 258,147 (54,475) 30 Institute of Imagination Notes to the financial statements For the year ended 31 December 2021 22. AnAlysts of e*sh and equivalents Cro*p 2021 Group 2020 Cash in hand Noti¢e Deposits (3 months OT more) 518,258 101,945 273,181 101,844 TolAI cash and ea5h equival¢*ts 620,203 375,025 Analysls ofehanges In net debt At l Jan 2021 C8$h Flows At 31 De¢ 2021 Cash at bank and in hand 375.025 £245.178 620.203 23. Employee benefits Defined ¢ontributlon schemes The Charity operates defmed contribution retiretnent benefrt scheme5 for all qualifying employees. The lotsl expense char8ed to the sraiemeni of financial aciivitie5 in the year ended 31 December 2021 was £12.816 (2020.. £12,504). Contributions of £Nil (2020- £NIll were ourstanding at the balartce sheet date. 24. O¢h¢r eommltments As ai 31 D¢¢e]nber 2021. the Company was committed to payments of £6.40012020- £8,756) under a license a8re¢ment for premises.