**CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** (A company limited by guarantee) 

**REPORT AND FINANCIAL STATEMENTS For the year ended 31 March 2024** 

**Charity Number 1116957 Company Number 05028177** 



**CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** 

(A company limited by guarantee) 

## **ANNUAL REPORT AND FINANCIAL STATEMENTS** 

For the year ended 31 March 2024 

|**Contents**|**Page**||
|---|---|---|
|Trustees annual report|1 to|10|
|Independent examiners report||11|
|Statement of Financial Activities (including||12|
|income and expenditure account)|||
|Balance sheet||13|
|Notes to the financial statements|14 to|23|





- **CHILLI STUDIOS (NEWCASTLE AND GATESHEADS ARTS STUDIO) LIMITED** (A company limited by guarantee) 

**REPORT AND FINANCIAL STATEMENTS For the year ended 31[st] March 2024** 

## **Charity Number 1116957 Company Number 05028177** 


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B- **TRUSTEE ANNUAL REPORT (including Director’s report)** = 

The trustees are pleased to present their annual trustees’ report together with the financial statements of the charity for the year ended March 31st 2024 which are also prepared to meet the requirements for a trustees’ report and accounts for Companies Act purposes. 

The financial statements comply with the Charities Act 2022, the Companies Act 2006, the Memorandum and Articles of Association, and 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 October 2019) 

## 1. OBJECTIVES AND ACTIVITIES 

## Aims of the Charity 

Our Aim is to improve mental health through providing access to creative activities. 

As stated in governing document - The objects of the charity are to advance the public in particular persons suffering from the effects of mental illness and mental health problems living in Newcastle and Gateshead through the use and promotion of art and artistic and creative activities 

## Objectives, strategies and activities for the year 

To provide a sustainable service that engages people in creative activity, which promotes social inclusion and interaction, develops skills and ability which builds resilience, enables potential and improves wellbeing. 

## Our Values are: 

## •To promote creative freedom. 

Promote the power of creativity to empower individuals to challenge internal and external perceptions of mental health. Valuing everyone’s unique personal expression, inspiring people to take creative chances, build skills and celebrate achievements. 

## •To be a compassionate and safe service. 

Create a safe, inclusive place where everyone feels welcome, encouraged to participate and supported throughout involvement—developing a caring community through encouragement and support. Taking time to listen, learn and respect others and their privacy; when a difference exists, value it and find shared understanding within the community of interest. 

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## Activities 

In January 2024, Chilli Studios celebrated the milestone of 20 years, something we are all very proud of. This year we provide around 13 workshops a week in all manner of creative activities; from music to writing, from animation to printmaking and much more in-between. This year we have worked with 302 registered members within the studio and many more through partnerships and external projects, totalling 11,686 activity participations. 

Total workshops sessions provided 

Total people engaging in activities 

Training sessions provided for members and vols Total audience & participants: Attendance empowering peers and vols sessions Volunteers supporting our activities Trips to cultural venues/sites Guest artist sessions Exhibitions & screenings and Events 

1895 11686 622 20205 2374 23 32 57 48 

## Public Benefit Statement 

The trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the Charity. 

The Charity Commission in its “Charities and Public Benefit” Guidance states that there are two key principles to be met in order to show that an organisation’s aims are for the public benefit: first there must be an identifiable benefit and, secondly, that the benefit must be to the public or to a section of the public. The trustees are satisfied that the aims and objectives of the charity, and the activities reported on above to achieve those aims, meet these principles. 

## Policy on Grant Making 

Chilli Studios dose not offer grants to other organisations or individuals. All grants sourced are used solely for the charitable purposes laid out in our governing documents. 

## Policy on Social Investment 

Chilli Studios does not have any Social Investment in place 

If we do receive social investment in the future, we will invest in a diversified range of asset classes and regions. We will consider investment in stocks, bonds, property, and other investment vehicles that align with our charitable mission. 

Our investment objectives will be to achieve growth and income. We will aim to generate sustainable returns that allow us to achieve our charitable objectives while protecting the capital value of any future investments. We will communicate investment performance to our stakeholders annually, including donors, beneficiaries, and the Charity Commission. 

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## Contribution by Volunteers 

All volunteers are required to fill in our volunteer form, provided with the full list of appropriate policies and are DBS checked prior to engagement. 

During April 2023 till March 2024 volunteers supported Chilli Studios in various areas including workshop support, exhibition delivery, promotion design, administration and trip outs. 

Total sessions supported by Volunteers/peers 1210 Average Volunteer hours (1 vol for 2.5 hours per sess) 3025 

## 2. Achievements and Performance 

## Evaluation and outputs 

## Quantitative evaluative evidence 

Measured through a QR system, participant satisfaction with activities, materials, support, and equipment boasts an impressive average score of 4.57 (out of 5), translating to a remarkable 91.5% satisfaction score 

Evidenced positive Impact on Wellbeing: Short Warwick-Edinburgh Mental Wellbeing Scale (Short WEMWBS) scores show a current average of 26.4, which remains significantly above the national average of 23.5 (recorded in 2016). While there's a slight decrease from the previous year (27), it's crucial to consider that individuals entering the program would most likely initially score lower than a national average due to existing mental health concerns, suggesting a significant positive change has been achieved in their life. 

## Qualitative Insights 

•Social and Creative Benefits emerged as the most significant contributors, followed closely by support in managing anxiety/stress, practical assistance, and confidence building. 

•Areas for Development: Impact on reducing reliance on clinical interventions and facilitating opportunities like employment or education scored slightly lower (around 3.5), highlighting a need for increased investment in helping participants transition beyond the program. 

Looking Forward: Building upon the strong foundation of member satisfaction and positive wellbeing outcomes, Chilli Studios' future strategy will now prioritise strengthening support for participants as they transition to the next chapter, potentially involving employment, volunteering, or further education. 

Progression-Based Support: Programs that equip members with skills to transition into volunteer and paid roles within Chilli Studios, fostering a supportive community while strengthening service delivery. 

External Service Provision: Chilli Studios' evolving identity as a provider of external services on wellbeing and creativity presents exciting opportunities. This could involve freelance and Therapeutic Enabler-led activities, generating revenue that directly supports core services. 

4 



## Fundraising 

## Funding Overview: 

Over the year the charity was kindly supported by: 

The Barbour Foundation, The Hospital Of God, The National Lottery Fund (Reaching Communities & Awards for all), The Garfield Weston Foundation, The Newcastle Fund, The Newcastle Culture Investment Fund, The Greggs Foundation, The Rington Fund, Connected Voice, The Joicey Trust, The Suicide Prevention Fund, The Prime Fund, Newcastle Building Society, The Edward Gostling Foundation, Joseph Brough Charitable Trust,  The Daisy Marr Fund, Karbon Homes, The Catherine Cookson Charitable Trust, The James Knott Trust, The RW Mann Trust 

## Looking forward 

•Shortfall: We face a significant shortfall in funds and will be running in deficit of approx. £7500 each month. 

•Reserves: Fortunately, our unrestricted reserves of £87,236 can help bridge the immediate gap. However, securing significant funding within the next 6 months is crucial for medium-term sustainability. 

Contingency Planning: With this current financial narrative, the staff and board have proactively discussed potential cost-reduction measures in case of continued funding shortfalls: 

Phase 1: Scaling down of non-essential equipment and materials (partially implemented). Phase 2: Reduction in freelance hours, with core staff taking on more delivery responsibilities. This would impact our program 

offerings and potentially some Therapeutic Enablers who currently work as freelancers. Phase 3: Reduction of core staff, impacting our operational capacity. 

Decommissioning Funds: A reserve of £25,000 is allocated for decommissioning in a worst-case scenario, covering redundancies, contract closures, and space clearing. 

Looking Ahead: Despite these challenges, Chilli Studios remains optimistic. Our commitment to responsible financial management and our strong reputation gives us confidence in navigating this period. 


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## 3. Financial review 

## Review of the year 

The results for the year and the company's financial position at the end of the year are shown in the attached financial statements. 

During the year the Charity had income of £183,665 (2023: £254,094) of which £124,087 was restricted (2023: £224,261) and expenditure of £205,314 (2023: £248,429) of which £148,662 was restricted (2023: £227,967). There was an operating deficit of surplus of £21,649X (2023: surplus of £5,665) of which a deficit of £24,575 was restricted (2023: a deficit of £3,706). 

At 31 March 2024 the Charity had net assets of £108,253 (2023: £129,902) of which £214,017 was restricted (2023: £16<252). 

## Reserves policy/Going concern 

The Trustees consider the level of reserves, £87,236 (2023: £113,650), prudent for the Charity at this time taking into account potential liabilities in the event that the charity ceased. Our Reserves Policy is reviewed annually. 

## Risk Management 

The Board is responsible for the management of the risks to which the Charity is exposed. A risk register is produced which considers financial, governance and delivery risks. 

For each risk, the register identifies: - Initial risk assessment in terms of impact and likelihood 

- Initial risk rating 

- Counter measures 

- Responsibility / ownership - Timescale 

- Amended risk assessment in terms of impact and likelihood 

- Amended risk rating 

The Board reviews the risk register throughout the year. Through the counter measures put in place in the risk register and the regular reviews and updates, the Board is satisfied that the major risks identified have been adequately mitigated. It is recognised that this approach can only provide reasonable but not absolute assurance that major risks have been adequately managed. 

## 4. Plans for future periods. 

As we approach the start of the financial year 2024 to 2025, we have begun to increase in partnership work for Chilli Studios and see this as a valuable asset in increasing our reach: 

•Research Bids: We’ve has been actively involved in several research bids, one from UKRI will explore how creative interventions can benefit individuals experiencing homelessness. 

•Employability Support: with the North East Autism Society and Azure Housing will support employability for individuals with neurodiversity, aiming to create opportunities for skill development and inclusion in the workforce. 

•Training Program for Older People: In collaboration with Equal Arts, to develop training programs addressing mental health issues among older people, emphasising the role of creativity in promoting wellbeing. 

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•Wellbeing Hub Support: We’ve been invited to support the creative offerings within the new Wellbeing Hub managed by the local Integrated Care Board. 

•Peer Partnerships and Sustainability: We have formed a Peer Partnership with Newbridge Project, focusing on researching natural processes in printmaking and textiles, as well as exploring sustainability and ethical practices. 

•LGBTQI Gardening Group: Through a partnership with Top Soil, an LGBTQI 

gardening group, we are fostering shared values and increasing awareness of LGBTQI issues while promoting community engagement and green spaces. 

•Mindfulness and Creativity: We are developing a partnership project to explore mindfulness principles through creativity, particularly focusing on music as a therapeutic medium. 

Another area of work we are keen to develop over the forthcoming year is Peer Support and progression. Chilli Studios fosters a dynamic environment where members can develop their skills, transition into paid roles, and contribute meaningfully to the community. 

The Therapeutic Enabler (TE) Model: This innovative model provides employment opportunities for members who excel in peer volunteer roles. Following skill development, individuals are employed as freelance TEs, earning wages above living wage rates. Currently, 4 members hold regular TE positions, with 3 others contributing flexibly. A salaried TE position (working 7 hours per week) supports our core staff in providing various areas of member progression. 

## Progression examples: 

•A testament to the program's success, one member now serves on the board of trustees, ensuring service user voices are heard. Another member acts in an advisory role. 

•External Opportunities: Four volunteers are enrolled in courses on ceramics, media studies, and counselling. •Community Collaboration: The studio's strong relationship with landlord SVP has opened doors for volunteer opportunities. Four volunteers and three members now regularly contribute at St. Vincent de Paul. Chilli Studio see it’s peer support program as now a cornerstone of its future success and sustainability. By empowering members, fostering collaboration, and advocating for their voices we are providing a service that improves wellbeing and utilises reciprocity for overall benefit. 

7 



## 5. Reference and administrative details of the charity, its trustees and advisors 

Registered charity name Chilli Studios (Newcastle and Gateshead Arts Studio) Ltd Charity number 1116957 Company registration number 05028177 

Registered office 

The Blackfriars Centre Newbridge Street Newcastle Upon Tyne NE1 2TQ 

Trustees and Members of the Board 

Frank Lee Smith (19th March 2024) Thomas William Lonsdale Angela Mary Main Dr Toby Brandon Rachael Doyle-Hall Dr John Banks Nikki Gibbard Alisdair Stewart Cameron Douglas Hunter 

Chief Executive and Senior staff members 

Robert Malpiedi (CEO) Carole Hall (Company Secretary) 

Independent Examiner 

Doug Maltman FMAAT Connected Voice Business Services One Strawberry Lane Newcastle upon Tyne NE1 4BX 

Bankers 

Unity Trust Bank Nine Brindley place Birmingham B1 2HB 

Santander UK Plc Business Banking 301 St Vincent Street Glasgow G2 5NT 

Solicitors 

None allocated 

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## 6. Structure, governance and management 

## Governing Document 

The organisation is a Charitable Company Limited by Guarantee. The Company was established under a Memorandum of Association, which established the objects and powers of the Charitable Company and is governed under its Articles of Association. In the event of a winding up any member (who is a director) undertakes to contribute to the payment of liabilities, such amount as may be required not exceeding the total of £1. 

## Recruitment and Appointment of the Board 

The Directors of the Company are also Trustees for the purposes of charity law and under the company's Articles are also its members. Under the requirements of the Memorandum and Articles of Association, at the Annual General Meeting one-third of the Directors, who are subject to retirement by rotation, shall retire. Retiring Directors can be re-appointed at the Annual General Meeting. 

Trustees are selected on the basis of specialist skills and commitment to the objectives and aims of the organisation. 

## Board Induction and Training 

New Board Members are introduced to the work of the organisation and informed of their legal roles and responsibilities at an induction meeting. The induction and training programme for new Board Members includes: 

- A briefing by the Chair or Chief Executive 

- An explanation of roles and responsibilities as a Board Member 

- Copies of the main company documents including the Memorandum and Articles of Association and the Financial Statements 

- Copy of the business plan and most recent evaluation report 

- Copies of recent board papers including budgets and management accounts 

- A copy of the Charity Commission publication "How to be an Effective Trustee" 

- A copy of the governance structure. 

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## 7. Statement of Trustee Responsibilities 

The trustees, who are also directors for the purposes of company law, are responsible for preparing the Trustees’ Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company Law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of incoming resources and application of resources, including the income and expenditure of the charitable company for that year. In preparing those financial statements, the trustees are required to: 

- select suitable accounting policies and apply them consistently. 

- observe the methods and principles in the Charities SORP. 

- make judgements and estimates that are reasonable and prudent. 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements. 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

- The trustees are responsible for keeping accounting records that disclose with reasonable 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 reasonable steps for the prevention and detection of fraud and other irregularities. 

Approved by the Board on 09.12.2024 and signed on their behalf by: A Cameron 

(Chair) 

10 



## **CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** 

(A company limited by guarantee) 

## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES** 

For the year ended 31 March 2024 

I report on the financial statements of Chilli Studios (Newcastle and Gateshead Arts Studio) Limited for the year ended 31 March 2024, which are set out on pages 12 to 23. 

## **Respective responsibilities of trustees and examiner** 

The charity's trustees (who are also directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2022 ("the Charities Act) and that an independent examination is needed. 

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to: 

- h examine the accounts under section 145 of the Charities Act, 

- h to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act), and 

- h to state whether particular matters have come to my attention. 

## **Basis of independent examiner's statement** 

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below. 

## **Independent examiner's statement** 

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect: 

- h accounting records were not kept in accordance with section 386 of the Companies Act 2006; or 

- h the accounts do not accord with such records; or 

- h the accounts do not comply with relevant accounting requirements under section 396 of the Companies Act 2006 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination; or 

- h the accounts have not been prepared in accordance with the Charities SORP (FRS102). 

I have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper  understanding of the accounts to be reached. 

Doug Maltman 

Fellow Member of the Association of Accountancy Technicians Connected Voice Charity Business Services One Strawberry Lane Newcastle upon Tyne NE1 4BX 

Date: 09.12.2024 

11 



## **CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** 

(A company limited by guarantee) 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

(INCLUDING SUMMARY INCOME & EXPENDITURE ACCOUNT) 

For the year ended 31 March 2024 


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Unrestricted Restricted Total  Total<br>Funds Funds 2024 2023<br>£ £ £ £<br>Income from:<br>Donations and legacies 6 37,058 -  37,058 26,010<br>Charitable activities<br>Grants and contracts 7 20,000 124,087 144,087 224,260<br>Other trading activities 8 2,520 -  2,520 3,824<br>Total income 59,578 124,087 183,665 254,094<br>Expenditure on:<br>Charitable activities<br>Operation of the charity 9 56,652 148,662 205,314 248,429<br>Total expenditure 56,652 148,662 205,314 248,429<br>Net income/(expenditure) 2,926 ( 24,575 ) ( 21,649 ) 5,665<br>Transfers between funds ( 29,340 ) 29,340 -  -<br>Net movement of funds ( 26,414 ) 4,765 ( 21,649 ) 5,665<br>Reconciliation of funds<br>Total funds brought forward 113,650 16,252 129,902 124,237<br>Total funds carried forward 87,236 21,017 108,253 129,902<br>Notes<br>**----- End of picture text -----**<br>


The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities 

The notes on pages 14 to 23 form an integral part of these accounts. 

12 



Charity Number 1116957 Company Number 05028177 

## **CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITE** 

(A company limited by guarantee) 

## **BALANCE SHEET** 

As at 31 March 2024 

|**Current assets**<br>Debtors<br>16<br>Cash at bank and in hand<br>17<br>**_Total current assets_**<br>**Creditors:**amounts falling due within<br>one year<br>18<br>**_Net current assets_**<br>**_Total net assets or liabilities_**<br>**Funds of the charity**<br>Unrestricted income funds<br>Restricted income funds<br>**_Total funds_**<br>Notes|**£**<br>-<br>138,563<br>**138,563**<br>**( 30,310 )**|**Total**<br>**2024**<br>**£**<br>**108,253**<br>**108,253**<br>87,236<br>21,017<br>**108,253**|**£**<br>2,486<br>205,586<br>**208,072**<br>**( 78,170 )**|**Total**<br>**2023**<br>**£**<br>**129,902**<br>**129,902**<br>113,650<br>16,252<br>**129,902**|
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The company was entitled to an exemption from audit under s477 of the Companies Act 2006 relating to small companies. 

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. 

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act with the respect to accounting records and the preparation of accounts. 

These accounts have been prepared in accordance with the provisions applicable to small companies subject to the 

small companies regime and in accordance with FRS102 SORP. 

The notes on pages 14 to 23 form an integral part of these accounts. 

These financial statements were approved by the Board on: 

09.12.2024 

and are signed on its behalf by: A Cameron Chairperson 

13 



## **CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** 

(A company limited by guarantee) 

## **NOTES TO THE FINANCIAL STATEMENTS** 

For the year ended 31 March 2024 

## 1 **Accounting Policies** 

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: 

## 2 **Basis of accounting** 

## 2.1 **Basis of preparation** 

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. 

The accounts 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 October 2019) – Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2022. 

Chilli Studios (Newcastle and Gateshead Arts Studio) Limited meets the definition of a public benefit entity 

## 2.2 **Preparation of the accounts on a going concern basis** 

The charity reported total unrestricted funds at the year end of- £26,414 and has already secured a significant amount of funding for the current year. The trustees are of the view that the immediate future of the charity for the next 12 to 18  months is secure and that on this basis the charity is a going concern. 

## 3 **Income** 

## 3.1 **Recognition of income** 

Income is recognised when the charity has entitlement to the resources, any performance conditions attached to the item(s) of income have been met, it is more likely than not that the resources will be received and the monetary value can be measured with sufficient reliability 

## 3.2 **Offsetting** 

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by FRS102 SORP or FRS102. 

## 3.3 **Grants and donations** 

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the  income will be received and the amount can be measured reliably and is not  deferred. 

Income received in advance of the provision of a specified service is deferred until the criteria of income recognition are met. 

14 



## **CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** 

(A company limited by guarantee) 

## **NOTES TO THE FINANCIAL STATEMENTS** 

For the year ended 31 March 2024 

## 3.4 **Donated goods and services** 

Donated goods are measured at fair value (the amount for which the asset could be exchanged) unless impractical to do so. 

Donated services and facilities are included in the SoFA when received at the value of the gift to the charity provided that the value of the gift can be measured reliably. Donated services and facilities that are consumed immediately are recognised as income with the equivalent amount recognised as an expense under the appropriate heading in the SoFA. 

## 3.5 **Volunteer help** 

The value of volunteer help received is not included in the accounts but is described in the trustees' annual report. 

## 3.6 **Interest receivable** 

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest  paid or payable by the bank. 

## 3.7 **Income from membership subscriptions** 

Membership subscriptions received in the nature of a gift are recognised in donations and legacies. 

Membership subscriptions which gives a member the right to buy services or other benefits are recognised as income earned from the provision of goods and services as income from charitable activities. 

## 3.8 **Fund accounting** 

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be  solely used for particular areas of the charity's work or for specific projects being undertaken by the 

## 4 **Expenditure and liabilities** 

## 4.1 **Liability recognition** 

Liabilities are recognised when it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty. 

## 4.2 **Charitable activities** 

Expenditure on charitable activities includes the costs of work and other activities undertaken to further the purposes of the charity and their associated support costs. 

15 



## **CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** 

(A company limited by guarantee) 

## **NOTES TO THE FINANCIAL STATEMENTS** 

For the year ended 31 March 2024 

## 4.3 **Governance and support costs** 

Support costs have been allocated between governance cost and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice. 

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources. 

## 4.4 **Irrecoverable VAT** 

Irrecoverable VAT is charged as a cost against the activity for which the  expenditure was incurred. 

## 4.5 **Creditors** 

The charity has creditors which are measured at settlement amounts less any trade discounts. 

## 4.6 **Provisions for liabilities** 

A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date. 

16 



## **CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** 

(A company limited by guarantee) 

## **NOTES TO THE FINANCIAL STATEMENTS** 

For the year ended 31 March 2024 

|**Analysis of income**<br>6<br>**Donations and legacies**<br>7<br>**Charitable activities**<br>Income from grants<br>Barbour Foundation<br>Connected Voice<br>D Oyly<br>Garfield Weston<br>Greggs<br>Henry Smith<br>Hospital of God<br>Joicey Trust<br>Jubilee Fund<br>Newcastle Building Society<br>Prime<br>Reed<br>Rington Fund<br>Suicide Prevention Fund<br>Big Lottery Fund<br>Enterprise Development Fund<br>Lloyds Foundation<br>NCIF<br>Newcastle Fund<br>Daisy Marr<br>J Knott<br>8<br>**Other trading activities**<br>R W Mann<br>National Lottery Fund<br>Sales of goods<br>Karbon Homes<br>Catherine Cookson<br>Edward Gosling<br>Joseph Brough<br>Donations and gifts<br>Membership subscriptions<br>Other|Unrestricted<br>Funds<br>£<br>5,449<br>19,435<br>12,174<br>37,058<br>-<br>-<br>-<br>20,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>20,000<br>2,520<br>2,520|Restricted<br>Funds<br>£<br>-<br>-<br>-<br>-<br>7,417<br>2,917<br>-<br>-<br>12,000<br>-<br>250<br>1,333<br>-<br>2,000<br>417<br>-<br>2,083<br>385<br>52,699<br>-<br>-<br>20,000<br>1,875<br>8,333<br>2,917<br>2,250<br>720<br>333<br>2,500<br>333<br>3,325<br>124,087<br>-<br>-|**Total**<br>**2024**<br>**£**<br>**5,449**<br>**19,435**<br>**12,174**<br>**37,058**<br>**7,417**<br>**2,917**<br>**-**<br>**20,000**<br>**12,000**<br>**-**<br>**250**<br>**1,333**<br>**-**<br>**2,000**<br>**417**<br>**-**<br>**2,083**<br>**385**<br>**52,699**<br>**-**<br>**-**<br>**20,000**<br>**1,875**<br>**8,333**<br>**2,917**<br>**2,250**<br>**720**<br>**333**<br>**2,500**<br>**333**<br>**3,325**<br>**144,087**<br>**2,520**<br>**2,520**|Total<br>2023<br>£<br>6,580<br>15,533<br>3,897<br>26,010<br>4,583<br>6,067<br>3,117<br>16,667<br>11,000<br>15,000<br>2,750<br>2,833<br>6,254<br>1,250<br>4,583<br>2,090<br>4,154<br>12,448<br>94,475<br>13,501<br>1,721<br>21,767<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>224,260<br>3,824<br>3,824|
|---|---|---|---|---|



17 



## **CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** 

(A company limited by guarantee) 

## **NOTES TO THE FINANCIAL STATEMENTS** 

For the year ended 31 March 2024 

Income was £183,665 (2023: £254,094) of which £59,578 was unrestricted or designated (2023: £29,833) and £124,087 was restricted (2023: £224,261) 

## **Analysis of expenditure on charitable activities** 

|9|**_Charitable activities_**<br>Direct costs<br>Support costs<br>Governance costs<br>Direct pension costs<br>Promotion of art and artistic and creative<br>activities<br>Direct staff salaries<br>Direct employers NI<br>Staffing costs<br>Other support costs<br>Companies House<br>Repairs and renewals<br>Professional fees<br>Rent<br>Insurance<br>Accountancy services<br>Promotion and marketing<br>Independent examiner's fees for reporting on<br>the accounts|Unrestricted<br>Funds<br>£<br>28,010<br>825<br>1,084<br>2,429<br>-<br>1,282<br>4,426<br>-<br>234<br>13,576<br>113<br>454<br>3,043<br>1,176<br>-<br>56,652|Restricted<br>Funds<br>£<br>74,009<br>3,060<br>4,022<br>4,068<br>-<br>43,210<br>2,582<br>-<br>1,300<br>13,693<br>523<br>778<br>1,417<br>-<br>-<br>148,662|**Total**<br>**2024**<br>**£**<br>**102,019**<br>**3,885**<br>**5,106**<br>**6,497**<br>**-**<br>**44,492**<br>**7,008**<br>**-**<br>**1,534**<br>**27,269**<br>**636**<br>**1,232**<br>**4,460**<br>**1,176**<br>**-**<br>**205,314**|Total<br>2023<br>£<br>113,382<br>4,283<br>5,757<br>13,943<br>-<br>47,986<br>10,876<br>1,104<br>11,550<br>30,962<br>920<br>767<br>5,686<br>1,200<br>13<br>248,429|
|---|---|---|---|---|---|



Expenditure on charitable activities was £205,314 (2023: £248,429) of which £56,652 was unrestricted or designated (2023: £20,462) and £148,662 was restricted (2023: £227,967) 

## 10 **Fees for examination of the accounts** 

|Independent examiner's fees for reporting on the accounts|**2024**<br>**£**<br>**1,176**<br>**1,176**|2023<br>£<br>1,200<br>1,200|
|---|---|---|



18 



## **CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** 

(A company limited by guarantee) 

## **NOTES TO THE FINANCIAL STATEMENTS** 

For the year ended 31 March 2024 

## 11 **Analysis of staff costs and the cost of key management personnel** 

|Salaries and wages<br>Social security costs<br>Pension costs (defined contribution pension plan)|**2024**<br>**£**<br>**102,019**<br>**3,885**<br>**5,106**<br>**111,010**|2023<br>£<br>113,382<br>4,283<br>5,757<br>123,422|
|---|---|---|



No employee received remuneration above £60,000 (2023: £nil) 

The key management personnel of the charity, comprise the trustees and the charity manager . The total employee benefits of the key management personnel of the charity were  £23,661 (2023: £29,138). 

## 12 **Staff numbers** 

The average monthly head count was 6 staff (2023: 6 staff) and the average monthly number of full-time equivalent employees during the year were as follows: 

## 13 **Transactions with trustees** 

None of the trustees have been paid any remuneration or received any other benefits from an employment with their charity or a related entity. 

## **Trustees' expenses** 

No trustee expenses have been incurred in the year. 

## **Transaction(s) with related parties** 

There have been no related party transactions in the reporting period. 

## 14 **Defined contribution pension scheme** 

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. 

The employer's pension costs represent contributions payable by the charity to the fund and amount to £5,106 (2023: £5,757). There was  £1,162 outstanding as at 31 March 2024 (2023: £924) 

## 15 **Corporation Taxation** 

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

## 16 **Debtors and prepayments (receivable within 1 year)** 

|Other debtors|**2024**<br>**£**<br>**-**<br>**-**|2023<br>£<br>2,486<br>2,486|
|---|---|---|



19 



## **CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** 

(A company limited by guarantee) 

## **NOTES TO THE FINANCIAL STATEMENTS** 

For the year ended 31 March 2024 

## 17 **Cash at bank and in hand** 

|Cash at bank<br>Cash in hand|**2024**<br>**£**<br>**138,682**<br>**( 119 )**<br>**138,563**|2023<br>£<br>205,678<br>( 92 )<br>205,586|
|---|---|---|



## 18 **Creditors and accruals (payable within 1 year)** 

|J Knott<br>Edward Gosling<br>Suicide Prevention Fund<br>Rington Fund<br>R W Mann<br>Trade creditors<br>Other accruals<br>Connected Voice<br>Barbour<br>Prime<br>Greggs Trust<br>Accruals<br>Deferred income<br>Big Lottery Fund<br>Independent examination of accounts<br>National Lottery Fund<br>Hospital of God<br>Newcastle Building Society|**2024**<br>**£**<br>**-**<br>**1,176**<br>**1,162**<br>**-**<br>**-**<br>**-**<br>**1,000**<br>**-**<br>**-**<br>**-**<br>**-**<br>**5,513**<br>**667**<br>**1,667**<br>**2,500**<br>**16,625**<br>**30,310**|2023<br>£<br>5,647<br>-<br>5,092<br>250<br>417<br>417<br>1,000<br>385<br>2,083<br>2,917<br>1,750<br>58,212<br>-<br>-<br>-<br>-<br>78,170|
|---|---|---|



## 19 **Deferred income** 

Deferred income comprises of advance payments from grants that relate to future periods 

|Balance carried forward<br>Balance brought forward<br>Amount deferred in year<br>Amount released to income earned from<br>charitable activities|**2024**<br>**£**<br>**67,431**<br>**( 67,431 )**<br>**27,972**<br>**27,972**|**2024**<br>**£**<br>**-**<br>**-**<br>**67,431**<br>**67,431**|
|---|---|---|



## 20 **Events after the end of the reporting period** 

No events (not requiring adjustment to the accounts) have occurred after the end of the reporting period but before the accounts are authorised which relate to conditions that arose after the end of the reporting period. 

20 



## **CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** 

(A company limited by guarantee) 

## **NOTES TO THE FINANCIAL STATEMENTS** 

For the year ended 31 March 2024 

## 21 **Analysis of charitable funds** 

## **Analysis of movements in unrestricted funds** 

|**Unrestricted funds**<br>General unrestricted fund<br>Designated funds<br>Governance<br>Research and Development<br>**_Totals_**|**Fund**<br>**balances**<br>**brought**<br>**forward**<br>£<br>23,651<br>70,000<br>20,000<br>113,651|**Incoming**<br>**resources**<br>£<br>59,578<br>-<br>-<br>59,578|**Resources**<br>**expended**<br>£<br>( 56,652 )<br>-<br>-<br>( 56,652 )|**Transfers**<br>£<br>30,660<br>( 50,000 )<br>( 10,000 )<br>( 29,340 )|**Fund**<br>**balances**<br>**carried**<br>**forward**<br>**£**<br>**57,237**<br>**20,000**<br>**10,000**<br>**87,236**|
|---|---|---|---|---|---|



## **Purpose of unrestricted funds** 

General unrestricted fund Designated Funds: 

The 'free reserves' of the charity 

Governance Research and Development 

Funds to cover the Governance of the service. Funds to support strategic development. 

21 



## **CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** 

(A company limited by guarantee) 

## **NOTES TO THE FINANCIAL STATEMENTS** 

For the year ended 31 March 2024 

## 21 **Analysis of charitable funds (continued)** 

## **Analysis of movement in restricted funds** 

||**Fund**|||**Fund**|
|---|---|---|---|---|
||**balances**|||**balances**|
||**brought**<br>**Incoming**|**Resources**||**carried**|
||**forward**<br>**resources**|**expended**|**Transfers**|**forward**|
|**Restricted funds**|£<br>£|£|£|**£**|
|National Lottery Fund|18,070<br>3,325|( 3,365 )|-|**18,030**|
|Enterprise Development Fund|4,425<br>-|( 4,609 )|184|**-**|
|Lloyds Bank Foundation|9<br>-|-|-|**9**|
|Other Funds|( 6,252 )<br>-|-|6,252|**-**|
|Newcastle Building Society|-<br>2,000|( 2,032 )|32|**-**|
|Ringtons Fund|-<br>2,083|( 3,628 )|1,545|**-**|
|Big Lottery Fund|-<br>52,699|( 70,193 )|17,494|**-**|
|Edward Gosling|-<br>8,333|( 8,303 )|-|**30**|
|J Knott|-<br>2,500|( 2,980 )|480|**-**|
|Karbon Homes|-<br>720|( 1,023 )|303|**-**|
|Daisy Marr|-<br>2,250|( 2,099 )|-|**151**|
|R W Mann|-<br>333|( 333 )|-|**-**|
|Joicey Trust|-<br>1,333|( 1,333 )|-|**-**|
|Barbour Foundation|-<br>7,417|( 7,417 )|-|**-**|
|Joseph Brough|-<br>2,917|( 2,917 )|-|**-**|
|Connected Voice|-<br>2,917|( 5,753 )|2,836|**-**|
|NCIF|-<br>20,000|( 18,394 )|-|**1,606**|
|Catherine Cookson|-<br>333|( 547 )|214|**-**|
|Greggs Foundation|-<br>12,000|( 10,999 )|-|**1,001**|
|Newcastle Fund|-<br>1,875|( 1,685 )|-|**190**|
|Prime|-<br>417|( 417 )|-|**-**|
|Suicide Prevention Fund|-<br>385|( 385 )|-|**-**|
|Hospital of God|-<br>250|( 250 )|-|**-**|
|**_Totals_**|16,252<br>124,087|( 148,662 )|29,340|**21,017**|
|**Purpose of restricted funds**|||||
|Restricted funds represent income|resources used for a specific purpose within the||charity as|identified by the|
|donor.|||||
|National Lottery Fund|Sessional costs.||||
|Enterprise Development Fund|Salary and related project costs.||||
|Lloyds Bank Foundation|Sessional costs.||||
|Other Funds|Sessional costs.||||
|Newcastle Building Society|Salary costs.||||
|Ringtons Fund|Ceramics. sessional fees and materials etc.||||
|Big Lottery Fund|Reaching Communities Funding.||||
|Edward Gosling|Sessional costs.||||
|J Knott|TE fees and sessional||||
|Karbon Homes|TE fees and sessional||||
|Daisy Marr|Sessional and promotion.||||
|R W Mann|Sessional costs.||||
|Joicey Trust|TE fees.||||



National Lottery Fund Enterprise Development Fund Lloyds Bank Foundation Other Funds Newcastle Building Society Ringtons Fund Big Lottery Fund Edward Gosling J Knott Karbon Homes Daisy Marr R W Mann Joicey Trust 

22 



## **CHILLI STUDIOS (NEWCASTLE AND GATESHEAD ARTS STUDIO) LIMITED** 

(A company limited by guarantee) 

## **NOTES TO THE FINANCIAL STATEMENTS** 

For the year ended 31 March 2024 

## **Purpose of restricted funds (continued)** 

> Barbour Foundation Support for Creative operations. 

> Joseph Brough Admin worker. 

> Connected Voice Cost of living. 

> NCIF Management costs. 

> Catherine Cookson Materials and sessional costs. 

> Greggs Foundation Manager and Arts Worker salaries. 

> Newcastle Fund Photography. 

> Prime Inclusion and support worker costs. Suicide Prevention Fund Inclusion and support worker costs. 

> Hospital of God Sessional costs. 

## **Transfers between funds** 

|Between unrestricted and<br>restricted funds<br>Between unrestricted and<br>designated funds<br>**Reason for transfer**<br>To cover overspends on restricted funds.<br>To cover costs related to designated funds.|**Amount**<br>**£**<br>**29,340**<br>**60,000**|
|---|---|



## 22 **Capital commitments** 

As at 31 March 2024, the charity had no capital commitments (2023 -£nil) 

## 23 **Analysis of net assets between funds** 

|Other net current assets/(liabilities)<br>Cash at bank and in hand|Unrestricted<br>Funds<br>£<br>117,546<br>( 30,310 )<br>87,236|Restricted<br>Funds<br>£<br>21,017<br>-<br>21,017|**Total**<br>**2024**<br>**£**<br>**138,563**<br>**( 30,310 )**<br>**108,253**|**Total**<br>**2023**<br>**£**<br>**205,586**<br>**( 75,684 )**<br>**129,902**|
|---|---|---|---|---|



23