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2022-03-31-accounts

LONG EATON ART ROOM

COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS FOR 31 MARCH 2022

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 2022

Contents Page
Members of the board and professional advisers 1
Trustees’ annual report 2-5
Independent Examiner’s report 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

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 MARCH 2022

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 2022.

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.

This is in accordance with the Charity’s governing document, the Memorandum and Articles of 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:

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

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 MARCH 2022

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 continued to have a major impact for most of the financial year 1 April 2021 to 31 March 2022. The focus of the trustees has been to protect our staff, clients and the artists who rent studio space.

  1. Throughout the year the trustees have held regular online meetings. We delayed our Annual General Meeting until November 2021, when we were confident it was safe to hold this in a face-to-face format.

  2. Our premises remained closed to the public for much of the year 2021-2022, without any of the regular drop-in sessions, workshops or room rental to other organisations. We deliberately took a very conservative attitude to re-opening due to the vulnerable nature of many of our traditional clients.

  3. The layout of our artist’s 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.

  4. In the final months of the year, we were able to recommence some of our public-facing activities. To minimise the risk of infection transmission and manage numbers we have moved away from our traditional ‘drop in open studio’ format to focus on pre-booked workshop sessions. We have also restarted room hire to artists who run their own sessions.

  5. During the closure period we made use of the ‘flexible furlough’ option of the government Coronavirus Job Support scheme to maintain our staff on full wages but working restricted hours. Our total income for the year from this source was £4,106.78.

  6. We received additional government retail, hospitality and leisure sector grants totalling £16,000 (the value of the grants was linked to the rateable value of our premises). We have retained a substantial part of this in our reserves in anticipation that we may face a reduced level of income for a period even after all restrictions were ended.

  7. We provided kiln firing services for many local artists both amateur and professional.

  8. We received a grant of £2000 from the Derbyshire Community Foundation towards our participation in a project entitled ‘Legacy of Lace’. This enabled us to fund the local artist leading the project to decorate the rendered wall of our factory building with a mural inspired by lace patterns and provide our facilities and staff time to support the project’s community engagement activities with a series of free lace themed talks and workshops.

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 MARCH 2022

  1. We provided our resident artists in our studio spaces with some free access to the use of the community space. This helped kickstart the return of the general public back into the facility and allowed the artists to provide workshops, do large-scale creative activities and generate some much needed income for themselves after such a difficult period. Four of the resident artists used the community space for 3 days to hold a creative exhibition over a weekend with mentoring and support from us to help plan, promote, set up and take down the exhibition. This was hugely successful with good visitor numbers and all the artists sold work. They plan to repeat the event yearly but on a much larger scale, inviting other artists to join in too.

  2. In November we held an Open Studios Event for our resident artists to showcase their own work, alongside a Christmas Craft Fair for visiting artists and designer-makers to exhibit and sell their work.

  3. Towards the end of the year we were able to recommence our fundraising sales of fabric donated by local businesses. These proved to be as popular as ever and raised over £3,300.

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 Registered Charity (no 1136196). The Charity’s governing document is the Memorandum 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 to meet the skills required.

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LONG EATON ART ROOM COMPAIYY LIMITED BY GUARANfEE TRUSTEES, ANNUAL REPORT YEAR ENDED 31 MARCH 2022 Rigk maoagement w•licy The trustees examin¢ ihe major risks that the charity faccs each finanLial year when preparing and updating the straiegic plan. lThe chariry has develO￿d systems to monitor and control ihese risks to mitigate any impact thai they may have on the chariry in the future. Independent Exajniner Mark Newey ACMA of Dcrby Community Ac¢ountan¢y Service was apwinied Independent F.xaminer during the year. Small eompaoy provlsions This report has Eten pr¢pared in accordance with the special provisions for small companies undcr part 15 of the Companies Act 2006. Registered 0￿1cc. Long Eaton Art Room 29-31 Lime Grove Long Eaton Notlingham NCJ104LD Signed on behaifof the truslee5 D. Dakin Truslep Approved by the trustees on 18 Qctsbty J,

LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE INDEPLNDENT EXAMINERS REPORT Independent Examiner's Report to tbe Tr￿4tee9 of IA)ng Egion Art Room I report on the accounts of the company for the year ended 31 March 2022 which are set out on pages 7t0 17. Respertii'e reqponsibilities of tfU8ttts gnd examiner The trustees are responsible for the prep&ration of the accounts. The ￿sleeS consider thai an audit is not required for this y¢ar under seciion 144 of ihe Charities Act 2011 (the Charities Act). It is my restK)n5ibility to- examine the accounts under section 145 of the ChDrities Act. follow the procedures laid down in ihe general DirKtions given by ihe Charily Commission (under Scciion 14515)(b} orth¢ Ch8rilies Act) and to state w'heiher particular mallers hake come io my attention. Basis of independent exAmlner's statement My examination was carried out in aCcOrda￿e with general DI[￿lI0n5 given by the Charity Comrnissiun. An examination includes a review of the ac¢ounlin8 records kept by the charity and a Comparison of the aL¢ounls pre.sented with those records. It also includes consideration of any unusual items or disclosures in the accounis, and ¥¢¢king ¢xplanations from yc)U iTUStees concerning any such matters. The pro¢cdur¢s und¢rtak¢n do not pmi'ide all the evidence that would be r¢quired in an audit, and consequently no opinion is gi¥'en as lo whcih¢r th¢ a¢counis present a 'YNe and fair vi¢w' and Ihe report is limi￿d lo tho¥e matlcrs sel out in ihe statement below. Independenl examlner's statement In cunneLtion with m) ¢xaminalii)n. no matter has come io my artenrion: Which giv¢s mc rcasonabl¢ causc io bclicve ihaL in any material respeci rcquirL'men15 10 keep aLcounting records in accordance w'Tth section 386 ofthe Companies Act 2006. aiid lo prepare a¢counL$ which ac¢ord with the ￿￿ountIng rLYords, comply with ihe accounting r¢quircmenis of section J96 of ihe Cvmpani¢s Act 2006 and with the mdhods and principles or the Statement of Recommcndd Pracli¥¥: Ac¢ouDIiII8 and Reporting by Charilies hav¢ not been mel, or to which, in my opinion. allenlion should be drawn in order to enable 8 proper underslanding or the accounts to be rrached. Namc: Mark Newey Address.. Derby Ccmnmunity Accoun(a￿Y Service, 128 Gr¢¢n IAne: Derby. DEI IRY Date .

LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 MARCH 2022

Total Funds Total Funds
Unrestricted Restricted Year to 31 Year to 31
Funds Funds Mar 2022 Mar 2021
Note
£
£ £ £
Income from
Donations 3 727 6,000 6,727 2,534
Investment income 5 233 - 233 205
Grants receivable 4 16,000 6,107 22,107 40,359
Other income 6 35,995
1,500
37,495
18,671
Total incoming resources 52,955
13,607
66,562
61,769
Expenditure on
Raising funds 583 - 583 212
Charitable activities 38,717
20,077
58,794
51,278
Total resources expended 7 39,300
20,077
59,377
51,490
Net incoming/(outgoing)
resources before transfers 13,655 (6,470) 7,185 10,279
Transfer between funds -
-
-
-
Net movement in funds 13,655 (6,470) 7,185 10,279
Funds brought forward 30,363
243,283
273,646
263,367
Funds carried forward 44,018
236,813
280,831
273,646

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 GUAIL4NTEE BALANCE SHEET 31 MARCH 2022 2022 2021 Note Fixed assets Tangible assets JJ 233.475 238.433 Current 8s$ets Debtors Cash at bank and in hand Stock and work in progress 12 485 48,162 lJ50 245 .16,492 1,970 50,497 38.707 Creditors: amounts falling due Ivithin one year 13 3.141 3,494 Net current aysets 47J56 35,213 Total assets leJ$ ¢urrent li#biliti¢s 280J31 273.fA6 Net *8sets 280331 273.646 Funds Restrict Unrestricted 14 14 236013 44.018 243,283 30,363 TOTAL FUNDS 280,831 273,646 For the year ended 31 March 2022 the COrnFAny wa5 enliiled th exemption from audit under scclion 477 of the Companics Act 2006 relating lo small companies. Directors responsibiliti¢s: {1) The members have not required the wmpany lo obtain an audit of its accounts (or the year in question in aecordance wlth section 476. and {ii) The directors acknowledge their rcsponsibililies for complying wilh ihc r¢quir¢m¢nts of the Act with respect to a￿OuntIng reLords and Lhe preparation of accounts. These financial statementg have been wepared in accordance w'ith ihe special provisions for small ¢ompllnies under Part 15 of the Companies Act 2006. These financial statement5 were approved and auth0ri5¢d for issue by the Trustees on the 27, ber 2022 and are signed on their behalf b).: D. Dakin Trustee C.OTnpany Registrnlion Number: 07148936 The notes on pages 9 10 17 fonn Pydrt of these fiDan¢ial statemen

LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

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 company’s registered 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

These accounts have been prepared in accordance with FRS 102, “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it apples from 1 January 2015. The charity is a Public Benefit Entity as defined by FRS 102.

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 2022 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 2022

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.

1.6 Debtors

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

Financial liabilities are derecognised when the company’s contractual 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 employee’s services are received.

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 2022

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 2022 Mar 2021
£ £ £ £
Donations from individuals 727
6,000
6,727
2,534
727
6,000
6,727
2,534

4 Grants Receivable

Total Funds Total Funds
Unrestricted Restricted
Year to 31
Year to 31
Funds Funds
Mar 2022
Mar 2021
£ £ £ £
Erewash Voluntary Action - -
-
1,000
Co-Op Community Fund - -
-
2,770
HM revenue and Customs - 4,107
4,107
11,589
Erewash Borough Council 16,000 -
16,000
25,000
Foundation Derbyshire -
2,000

2,000
-
16,000
6,107

22,107
40,359

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

5. Interest receivable (unrestricted)
Year to 31 Year to 31
Mar 2022 Mar 2021
£ £
Bank interest receivable 233
205
6. Other income
Year to 31 Year to 31
Mar 2022 Mar 2021
£ £
Open studio membership 258 178
Kiln firing and other services 729 540
Workshops 582 -
Artist studio rental 27,462 16,222
Materials for studio use 951 140
Outsourcing - -
Other charitable services 190 -
Room hire 2,464 -
Fundraising sales 3,359 -
Tuck shop sales - 54
Gift Aid 1,500
1,537
37,495
18,671

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

7. Total resources expended

Rent and rates
Depreciation
Building maintenance
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 2022
£
503
4,958
9,257
4,747
847
200
583
479
1,430
16,627
649
186
16,860
2,051
-
-
-

59,377
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

Expenditure on charitable activities was £58,794 (2021: £51,278) of which £20,077 was restricted (2021 £20,168)

8. Net (expenditure)/income

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

2022 2021
£ £
Independent Examiner’s Fees 520 500
Depreciation 4,958 5,177
=========================== ================================

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 2022

10. Employees

The aggregate payroll costs were:

The aggregate payroll costs were:
Year to 31 Year to 31 Mar
Mar 2022 2021
£ £
Wages and salaries 16,860 18,444
Social security costs - -
Pension costs -
-
16,860
18,444

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
2022
No
3
-

3
Year to
31 Mar
2021
No
3
-

3

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

11. Tangible fixed assets

Cost
At 31 March 2021
Additions
At 31 March 2022
Depreciation
At 31 March 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
Building
Fixtures,
fittings &
Equipment
Artworks
Total
£
£
£
£
283,916
5,575
2,065
291,556
-
-
-
-
283,916
5,575
2,065
291,556
48,285
4,838
-
53,123
4,713
245
-
4,958
52,998
5,083
-
58,081
230,918
492
2,065
233,475
235,631
737
2,065
238,433

12. Debtors

Other Debtors
Creditors: Amounts falling due within one year
Artist studio deposits
Trade creditors
Total Creditors
2022
£
485

485

2022
£
2,576
565
--------------------------------
3,141
--------------------------------
2021
£
245

245

2021
£
2,561
933
--------------------------------
3,494
--------------------------------

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 2022

14. Statement of funds


Unrestricted reserves
Total unrestricted funds
Buildings
HM Revenue and Customs
Foundation Derbyshire
Total restricted funds
Total funds
At
1 April
2021 Incoming
Outgoing
Transfers
£
£
£
£
30,363
52,955
(39,300)
-




30,363
52,955
(39,300)
-
243,283
7,500
(13,970)
-
-
4,107
(4,107)
-
-
2,000
(2,000)
-




243,283
13,607
(20,077)
-




273,646
66,562
(59,377)
-



At
31March
2022
£
44,018

44,018
236,813
-
-

236,813

280,831

Restricted Funds

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

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

The Foundation Derbyshire grant was spent on artists fees

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LONG EATON ART ROOM COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

15 Analysis of net assets

Tangible
fixed assets
Other
net assets
£
£
Unrestricted funds
2,557
41,461
Restricted funds
Building Project
230,918
5,895


233,475
47,356

Total
£
44,018
236,813
280,831

16. Related party transactions

The charity had no related party transactions that required disclosure.

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