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2021-03-31-accounts

LONG EATON ART ROOM

COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS FOR 31 MARCH 2021

Company Registration Number 07148936 Charity Number 1136196

DERBY COMMUNITY ACCOUNTANCY SERVICE

Babington Lodge 128 Green Lane Derby

LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

Contents Page
Members of the board and professional advisers 1
2-5
6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9-17

LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

MEMBERS OF THE BOARD AND PROFESSIONAL ADVISERS

The board of trustees/directors Diane Dakin (Chair)) Ian Mitchell (Treasurer) Ian Slater Raymond Gumbley

Registered office 29-31 Lime Grove Long Eaton Nottingham NG10 4LD Independent Examiner Mark Newey ACMA Derby Community Accountancy Service Babington Lodge 128 Green Lane Derby DE1 1RY

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 MARCH 2021

The trustees, who are also Directors for the purposes of the Companies Act, have pleasure in presenting their report and the unaudited financial statements of the charity for the year ended 31 March 2021.

STRUCTURE, GOVERNANCE AND MANAGEMENT

OBJECTIVES AND ACTIVITIES

To promote for the benefit of the inhabitants of Erewash and the surrounding areas the provision of facilities, items and services to enable the public at large to engage in the creative arts and education in the arts and to do so in the interests of social welfare and with the object of improving the condition of life for the said inhabitants.

Association, incorporated on 6[th] February 2010.

SUMMARY OF THE MAIN ACTIVITIES UNDERTAKEN FOR THE PUBLIC BENEFIT IN RELATION TO THESE OBJECTS

To achieve this object we will provide:

In delivering these facilities we aim to benefit the following sections of the public:

Open studio sessions are open for anyone to drop-in at a small fee for a 3-hour session, or by monthly subscription. Workshops are priced to recover direct costs and contribute to overheads. Exhibitions are open to the public to view without charge. We work with caring and supporting organisations to obtain funding for participation by disadvantaged individuals.

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 MARCH 2021

The Trustees believe that in undertaking these activities they have taken due regard of the guidance on public benefit issued by the Charity Commission.

Achievements and Performance

The Covid-19 pandemic and consequential restrictions have had a major impact and most of our activities were suspended for the whole of the financial year 1 April 2020 to 31 March 2021. The focus of the trustees has been to protect our staff, clients and the artists who rent studio space, and conserve our finances in anticipation that we may face a reduced level of income for a period even after restrictions have ended.

  1. Throughout the year the trustees have held regular online meetings, and this format was also used for the Annual General Meeting.

  2. Our premises remained closed to the public throughout the year, without any of the regular drop-in sessions, workshops or room rental to other organisations. We have deliberately taken a very conservative attitude to re-opening due to the vulnerable nature of many of our traditional clients.

  3. We made use of the government Coronavirus Job Support scheme to furlough our staff fully during lockdown periods. In periods where restrictions were eased we used the Our total

income for the year from this source was £11,589.18. Our manager continued to work from home throughout.

  1. We received an additional government grant of £25,000 for the retail, hospitality and leisure sector (the value of the grant was linked to the rateable value of our premises). This support allowed us to offer a 6 month rent holiday to our artist studio tenants and this has enabled them all to continue in business and we have maintained 100% occupancy of the studios. We have retained a substantial part of this grant in our reserves to support resumption of our wider activities when it is safe to do so.

  2. studios with individual rooms has allowed the artists who rent space from us to continue to work while maintaining social distancing. To ensure the highest possible level of safety, we undertook a risk assessment for the shared spaces such as toilets, kitchen and lobby areas, and provided guidance, notices, hand sanitiser and an enhanced cleaning regime.

  3. We received a grant of £2769.93 from Co-Op Community Fund which was originally to be used to fund our feel good Friday craft group sessions. When Covid restrictions closed those sessions we moved to digital communication through social media and regular chats. Providing regular craft ideas and suggestions as well as sourcing and sharing online craft lessons and tutorials aimed at centre users and the wider community to help reduce isolation and keep people active and engaged.

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

YEAR ENDED 31 MARCH 2021

  1. We also received a grant of £1000 via Erewash Voluntary Action Covid recovery grant Social Connectedness Fund to help us stay connected to people digitally through the pandemic and to create craft activity packs to distribute through the community. This contributed towards a new work laptop. We were also able to create and distribute many craft packs throughout the community, mostly completely free of charge.

FINANCIAL REVIEW

Reserves

The reserves policy is to aim to maintain a cash reserve of a minimum of 3 months typical expenditure (currently £3000/month).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Long Eaton Art Room is based at 29-31 Lime Grove, Long Eaton, which is the company's registered office and the principal address of the charity. Long Eaton Art Room is a company limited by guarantee and not having a share capital (company registration No. 07148936) and Articles of Association.

Trustee selection methods

The charity elects trustees at the Annual General Meeting. When the need arises, a skills audit to determine the requirements of the trustee body is carried out. People are approached to put themselves forward for election meet the skills required

Risk management policy

The trustees examine the major risks that the charity faces each financial year when preparing and updating the strategic plan. The charity has developed systems to monitor and control these risks to mitigate any impact that they may have on the charity in the future.

Independent Examiner

Mark Newey ACMA of Derby Community Accountancy Service was appointed Independent Examiner during the year.

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE TRUSTEES, ANNUAL REPORT YEAR ENDED 31 MARCH 2021 Small company provisions This report has been prepared in accordance with the special provisions for small companies under part 15 of the Companies Act 2006. Registered office: Long Eaton Art Room 29-31 Lime Grove Long Eaton Nottingham NGIO 4LD Signed on behalf of the trustecs D. Dakin Trustee Approved by the trustees on 7, September 2021

LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE INDEPEf4DENT EXAMINERS REPORT Independent Examiner's Report to the Trustees of Long Eaton Art Room I report on the accounts of the company for the year ended 31 March 2021 which are set out on pages 7t0 17. Respective responsibilities of trustees and examiner The trustees are responsible foi. the preparation of the accounts. The trustees consider that an audit is not required for this year under sectioii 144 of the Charities Act 2011 (the Charities Act). It is my responsibility to.. ¢xaJninc tli¢ accounts und¢r s¢ction 145 of th¢ Charities Act,. follow the procedures laid down in tlie general Dire¢tions given by the Charity Commission (under section 145{5){b) of the Charities Act) and to state ivhether particular matters have coinc to rny art¢ntion. Basis of independent examiner's statement My examination was carried oiit in accordance with general Directions given by the Charity Coinmission. An examinatioii includ¢s a rciicw of tli¢ accounting r¢cords kcpt by th¢ ¢liarity and a comparison of the accounts presented with those records. It also includes consideration of any unusual it¢m5 or disclosurcs in the accounts, and seeking explanations from you as trustees conc¢rning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequentlv no opinion is given as to whether the accounts present a 'true and fair view" and Ihe report is limited io Ehos¢ matiers set oiit in the statement below. Independent examiner's statement In connection with my examinalion, no tnatter has coJne to tny attention.. Whieh giv¢s m¢ r¢asoiiabl¢ caus¢ lo believe that, in any matersal respect, the requirements to keep ac¢ounting records in accordance with section 386 of the Companies Act 2006; and to prepare accounts which accord with the accoui)ting records. eoinply with th¢ accounting requir¢incnts of s¢ction 396 of tlic Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice.. Accounting and Reporting by Chariti¢s have not been met; or to which, in my opinion, attentioii sl)ould be drawn in order to enable a proper understanding of the accounts to be rea¢hed. Name.. Mark Newey Address.. Derby Community Accountancy S¢rvic¢, 128 Green Lane, Derby.- DEI IRY Date '. 11qlzo£l

LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 MARCH 2021

Total Funds Total Funds
Unrestricted Restricted Year to 31 Year to 31
Funds Funds Mar 2021 Mar 2020
Note £ £ £ £
Income from
Donations 3 2,534 - 2,534 3,847
Investment income 5 205 - 205 154
Grants receivable 4 25,000 15,359 40,359 962
Other income 6 18,671 - 18,671 47,638
Total incoming resources
Expenditure on		 46,410 15,359 61,769 52,601
Raising funds 212 - 212 1,254
Charitable activities 31,110 20,168 51,278 53,942
Total resources expended 7 31,322 20,168 51,490 55,196
Net incoming/(outgoing)
resources before transfers 15,088 (4,809) 10,279 (2,595)
Transfer between funds - - - -
Net movement in funds 15,088 (4,809) 10,279 (2,595)
Funds brought forward 15,275 248,092 263,367 265,962
Funds carried forward 30,363 243,283 273,646 263,367

The charity has no recognised gains or losses other than the results for the year as set out above.

All of the activities of the charity are classed as continuing.

The notes on pages 9 to 17 form part of these financial statements

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE BALANCE SHEET 31 MARCH 2021 2021 2020 Note Fixed asset5 Tangible assets li 238,433 243,610 Current assets Debtors Cash at bank and in hand Stock and work in progrcss 12 245 36,492 1,970 2.198 17.953 1.970 38,707 22,121 Creditors: amounts falling due within one year 13 3,494 2,364 Trlet current assets 35,213 19,757 Total assets less turrent liabilities 273,646 263,367 Net assets 273,646 263,367 Funds Resiricled Unrestricted 14 14 243,283 30,363 248,092 15,275 TOTAL FUNDS 273,646 263.367 For the year ended 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors responsibilities.. {1} The members have not required the company to obtain an audit of its accounts for th¢ year in question in accordance with section 476,. and {ii) The directors acknowledge their responsibilitics for coinplying with the requirements of the Act with respcct to accounting records and the preparation of accounts. These financial statements have been prepared in accordan¢e with the special provisions for small companies under Part 15 of the col￿panIeS Act 2006. These financial statements were approved and authorised for issue by the Trustees on the 7 September 2021 and are signed on their behalf by.. D. Dakin Trustee Company R¢gistration Number: 07148936 The notes on pages 9 to 17 form part of these finaDcial statements.

LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

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:

Company information

Long Eaton Art Room is a company limited by guarantee not having a share capital. The office is, 29-31 Lime Grove, Long Eaton. At the end of the year there were 4 Trustees, each of whom, under the terms of the Memorandum and Articles of Association, had undertaken to contribute the sum not exceeding £1 in the event of a winding up of the company.

1.1 Accounting convention

The accounts are prepared in Sterling which is the functional currency of the company Monetary amounts in these financial statements to the nearest £.

The accounts have been prepared on historical cost convention apart from freehold property that is carried at market value. The principal accounting policies adopted are set out below.

These are accounts for the year ended 31 March 2021 prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 April 2015.

1.2 Going concern

At the time of approving the accounts, the Directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable Funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

1.4 Incoming resources

All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Gifts in kind have been included at market value of gifts received and in assets acquired. No amounts are included in the financial statements for services donated by volunteers.

1.5 Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources. Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in the support of the charitable activities.

Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.9 Financial instruments

The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Derecognition of financial liabilities

actual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

1.11 Taxation

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

1.12 Depreciation

Individual fixed assets are capitalised at cost and are depreciated over their estimated useful economic lives on a reducing balance basis as follows:-

Asset category Annual rate Equipment 33.3% Buildings 2%

2 Critical accounting estimates and judgements

3 Donations and legacies

Total Funds Total Funds
Unrestricted Restricted Year to 31 Year to 31
Funds Funds Mar 2021 Mar 2020
£ £ £ £
Donations from individuals 2,534
 -
 2,534
 3,847
2,534
 -
 2,534
 3,847
Total Funds Total Funds
Unrestricted Restricted
Year to 31		 Year to 31
Funds Funds Mar 2021 Mar 2020
£ £ £ £
Erewash Voluntary Action - 1,000 1,000 -
Co-Op Community Fund - 2,770 2,770 162
HM revenue and Customs - 11,589 11,589 -
Erewash Borough Council 25,000 - 25,000 800
25,000 15,359 40,359 962

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

5. Interest receivable (unrestricted)
Year to 31 Year to 31
Mar 2021 Mar 2020
£ £
Bank interest receivable 205 154
6. Other income
Year to 31 Year to 31
Mar 2021 Mar 2020
£ £
Open studio membership 178 6,206
Kiln firing and other services 540 1,006
Workshops - 20
Artist studio rental 16,222 25,179
Materials for studio use 140 1,657
Outsourcing - 160
Other charitable services - 523
Room hire - 7,029
Art shop sales - 4,240
Tuck shop sales 54 676
Gift Aid 1,537 942
18,671 47,638

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

7. Total resources expended

Rent and rates
Depreciation
Utilities
Consumables
Food
Goods for resale
Publicity
Studio, equipment and repairs
Artist Fees
Professional fees
Travel
Staff wages
Insurance
Subscriptions
Training
Bad debts written off		 Total Funds
Year to 31
Mar 2021
£
-
5,177
9,287
997
-
212
-
3,914
10,600
569
227
18,444
1,980
33
-
50

51,490
 Total Funds
Year to 31
Mar 2020
£
1,940
5,458
9,615
4,317
1,273
1,255
465
1,346
9,600
600
1,108
16,075
2,032
22
90
-
55,196

Expenditure on charitable activities was £51,278 (2020: £53,942) of which £20,168 was restricted (2020 £5,869)

8. Net (expenditure)/income

Net (expenditure)/income for the year is stated after charging/(crediting):

2021 2020
£ £
Independent E 500 500
Depreciation 5,177 5,458
=========================== ================================

9. Directors and key management personnel

During the year Trustees did not receive remuneration. The key management personnel of the charity consist of the Trustees, professional advisors and the employees.

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

10. Employees

The aggregate payroll costs were:

The aggregate payroll costs were:
Year to 31 Year to 31 Mar
Mar 2021 2020
£ £
Wages and salaries 18,444 16,075
Social security costs - -
Pension costs - -
18,444 16,075

No employee earned more than £60,000 per annum. No trustees were reimbursed for expenditure.

The average number of staff employed by the charity during the financial year amounted to:

Direct Charitable Staff
Governance		 Year to
31 Mar
2021
No
3
-
3		 Year to
31 Mar
2020
No
2
-
2

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

11. Tangible fixed assets

Cost
At 31 March 2020
Additions
At 31 March 2021
Depreciation
At 31 March 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
2. Debtors
Other Debtors
3. Creditors: Amounts
Artist studio deposits
Trade creditors
Total Creditors		 Building
Fixtures,
fittings &
Equipment
Artworks
Total
£
£
£
£
283,916
5,575
2,065
291,556
-
-
-
-
283,916
5,575
2,065
291,556
43,476
4,470
-
47,946
4,809
368
-
5,177
48,285
4,838
-
53,123
235,631
737
2,065
238,433
240,440
1,105
2,065
243,610
2021
£
245
245
falling due within one year
2021
£
2,561
933
--------------------------------
3,494
--------------------------------		 2020
£
2,198
283,916
5,575
43,476
4,470
4,809
368
48,285
4,838
235,631
737
240,440
1,105
falling due within one year
2,198
2020
£
2,364
-
--------------------------------
2,364
--------------------------------

12. Debtors

13. Creditors: Amounts falling due within one year

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

14. Statement of funds


Unrestricted reserves
Total unrestricted funds
Buildings
Erewash Voluntary Action
Co-Op Community Fund
HM Revenue and Customs
Total restricted funds
Total funds		 At
1 April
2020
Incoming
Outgoing Transfers
£
£
£
£
15,275
46,410
(31,322)
-



15,275
46,410
(31,322)
-
248,092
-
(4,809)
-
-
1,000
(1,000)
-
-
2,770
(2,770)
-
-
11,589
(11,589)



248,092
15,359
(20,168)
-
263,367
61,769
(51,490)
-		 At
31March
2021
£
30,363
30,363
243,283
-
-
-

243,283
273,646

Restricted Funds

The Building fund represented the value of the building yet to be depreciated and future expenditure.

Co-Op Community Fund money was spent on digital communication, providing regular craft ideas and suggestions as well as sourcing and sharing online craft lessons and tutorials aimed at centre users and the wider community to help reduce isolation and keep people active and engaged.

Erewash Voluntary Action Covid recovery grant Social Connectedness Fund to help us stay connected to people digitally through the pandemic and to create craft activity packs to distribute through the community. This contributed towards a new work laptop. We were also able to create and distribute many craft packs throughout the community, mostly completely free of charge.

HM Revenue and Customs Job Retention Scheme contributed to the furlough wage payments.

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

15 Analysis of net assets

Tangible
fixed assets
Other
net assets
£
£
Unrestricted funds
2,802
27,561
Restricted funds
Building Project
235,631
7,652
238,433
35,213		 Total
£
30,363
243,283
273,646

16. Related party transactions

The charity had no related party transactions that required disclosure.

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