Company registration number: 07321829 Charity registration number: 1141002
## New Light (North of England)
(A company limited by share capital)
Annual Report and Financial Statements
for the period from 1 August 2019 to 31 December 2020
HPH Chartered Accountants 54 Bootham York YO30 7XZ
## **New Light (North of England)**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the Financial Statements|8 to 16|
## **New Light (North of England)**
## **Reference and Administrative Details**
**Trustees** A. L. Petchey J. Warner-Reed (resigned 20 January 2021) E. T. Cartwright C. H. Little (resigned 5 June 2021) I. A. Charlton (appointed 26 March 2021) **Senior Management Team** P. Hartley S. Mate R. Tadd L. Watson **Principal Office** 54 Bootham York YO30 7XZ **Company Registration Number** 07321829 **Charity Registration Number** 1141002 **Independent Examiner** A. C. Rodaway, FCA, DChA HPH Chartered Accountants 54 Bootham York YO30 7XZ
Page 1
## **New Light (North of England)**
## **Trustees' Report For the Period Ended 31 December 2020**
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the period ended 31 December 2020.
## **Background**
Established in 2010, New Light celebrates and promotes Northern Art, supporting both well-known and emerging artists by offering some of the region’s best awards and opportunities with the biennial New Light Prize Exhibition.
## **Objectives and activities**
## _**Objects and aims**_
The Charity's objects are restricted specifically, only for the public benefit to:
1. To advance the education of the public in the subject of modern (contemporary) art;
2. To promote work produced by artists in, from, or with a Connection to the North of England for the benefit and education of the public by the:
a. Establishment of a series of exhibitions open to entries from artists with a Connection to the North of England;
- b. Placement of their work in galleries;
- c. Award of a financial grant to at least one artist biennially;
- d. Running of education programmes;
e. To establish and maintain a collection of art by artists with a Connection to the North of England and for the collection to be available to the general public at certain times.
3. Nothing in these Articles shall authorise an application of the property of the Charity for purposes which are not charitable in accordance with any statutory provision regarding the meaning of the word "charitable" or the words "charitable purposes" in force in any part of the United Kingdom.
## _**Public benefit**_
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## _**Use of volunteers**_
New Light continued to be strongly supported by a small group of volunteers, without whom we would struggle to achieve our goals.
## **Going concern**
The Trustees have a reasonable expectation that the Charitable Company has adequate resources to continue in operational existence for the foreseeable future. They continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Page 2
## **New Light (North of England)**
## **Trustees' Report For the Period Ended 31 December 2020**
## **Achievements and performance**
The fifth New Light Prize Exhibition was launched during the COVID-19 pandemic which resulted in a slight reduction in entries (1,700 compared to 2,200 for the previous exhibition). Anecdotal feedback from artists was that the lockdown made making work difficult for some, especially if they were homeschooling or did not have access to studios. Nevertheless, the trustees and judges were delighted with the calibre of the work submitted, and the subsequent exhibition mounted at Scarborough Art Gallery. It was disappointing that the pandemic also meant we were not able to host any private viewings at Scarborough.
The pandemic also affected the planned launch of the New Light Collection, which has been delayed until November 2021.
We are very grateful to our patron, Valeria Sykes, for her continued financial support.
## **Financial review**
The total funds held by the Charitable Company are £145,566 (2019 - £126,340), of which £nil (2019 - £nil) are restricted. £60,000 (2019 - £60,000) are held in as designated funds which will only be realised on the disposal of fixed assets. Therefore, free reserves are £85,566 (2019 - £66,340).
## _**Policy on reserves**_
There is currently no reserves policy as exhibitions are held on a project by project basis. This subject will be raised at a future meeting.
## **Plans for future periods**
Focus will now return to launching the New Light Collection in late 2021, and finding venues for the next Prize Exhibition, and a retrospective of New Light prize winners, to be held in Saul Hay Gallery in Manchester, the sponsors of the New Light Emerging Artist prize for the last two prize exhibitions. This is of particular significance to New Light as we have struggled to gain a foothold in Manchester or Liverpool.
## **Structure, governance and management**
## _**Nature of governing document**_
The organisation is a Charitable Company limited by guarantee, company number 07321829, incorporated on 21 July 2010 and registered as a charity on 17 March 2011, charity number 1141002. The Governing document of the Charitable Company is the Memorandum and Articles of Association dated 25 February 2011.
## _**Recruitment and appointment of trustees**_
The Board conducts a continuous process of identifying potential new Trustees whom they believe should be considered for Board membership. Application for membership of the Board is by way of letter and cv, interview with the Chair and another Trustee plus the Development Director
## _**Induction and training of trustees**_
Newly-appointed Trustees are sent full background information about the Charitable Company.
Page 3
## **New Light (North of England)**
## **Trustees' Report For the Period Ended 31 December 2020**
## _**Organisational structure**_
The day-to-day management of the Charitable Company is delegated to the Development Director. The Development Director meets regularly (on a virtual basis) to discuss day-to-day matters concerning the operation of the Charitable Company.
## _**Major risks and management of those risks**_
To date, risks have been managed in line with ad hoc referral to Trustees. This process will also be reviewed as new Trustees are recruited.
## **Trustees’ Financial Responsibilities**
Company law requires the trustees to prepare financial statements for each financial period. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and 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.
## **Disclosure of information to Independent Examiner**
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant information and to establish that the charity's Independent Examiner is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the Independent Examiner is unaware.
The annual report was approved by the trustees of the charity on 24 September 2021 and signed on its behalf by:
......................................... A. L. Petchey Trustee
Page 4
## **New Light (North of England)**
## **Independent Examiner's Report to the trustees of New Light (North of England)**
I report to the charity trustees on my examination of the accounts of the charity for the period ended 31 December 2020 which are set out on pages 6 to 16.
This report is made solely to the Charitable Company’s Trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and the Charitable Company’s Trustees as a body in accordance with section 154 of the Charities Act 2011. My independent examiner’s work has been undertaken so that I might state to the Charitable Company’s Trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charitable Company, the Charitable Company’s Members as a body and the Charitable Company’s Trustees as a body for my independent examiner’s work, for this report, or for the opinions I have formed.
## **Respective responsibilities of trustees and examiner**
As the charity’s trustees of New Light (North of England) (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of New Light (North of England) are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of New Light (North of England) as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and 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.
...................................... A. C. Rodaway, FCA, DChA HPH Chartered Accountants
54 Bootham York YO30 7XZ
24 September 2021
Page 5
## **New Light (North of England)**
## **Statement of Financial Activities for the Period from 1 August 2019 to 31 December 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Income and Endowments from:**
Donations and legacies
3
Charitable activities
4
Investment income
5
Total income
**Expenditure on:**
Charitable activities
6
Total expenditure
Net income/(expenditure)
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
14|**Unrestricted**
**£**
62,500
53,429
31
115,960
(96,734)
(96,734)
19,226
19,226
126,340
145,566|**Total**
**Period**
**ended**
**31 December**
**2020**
**£**
62,500
53,429
31
115,960
(96,734)
(96,734)
19,226
19,226
126,340
145,566|**Total**
**Year ended**
**31 July 2019**
**£**
30,010
9,968
20|
|---|---|---|---|
||||39,998|
||||(44,716)|
||||(44,716)|
||||(4,718)|
||||(4,718)
131,058|
||||126,340|
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2019 is shown in note 16.
The notes on pages 8 to 16 form an integral part of these financial statements. Page 6
## **New Light (North of England)**
## **(Registration number: 07321829) Balance Sheet as at 31 December 2020**
|**Note**
**Fixed assets**
Tangible assets
11
**Current assets**
Debtors
12
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
13
**Net current assets**
**Net assets**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
14|**2020**
**£**
60,000
1,295
88,054
89,349
(3,783)
85,566
145,566
145,566
145,566|**2019**
**£**
60,000
-
68,641|
|---|---|---|
|||68,641
(2,301)|
|||66,340|
|||126,340|
|||126,340|
|||126,340|
For the financial period ending 31 December 2020 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the charity to obtain an audit of its accounts for the period in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 6 to 16 were approved by the trustees, and authorised for issue on 24 September 2021 and signed on their behalf by:
.........................................
A. L. Petchey Trustee
The notes on pages 8 to 16 form an integral part of these financial statements. Page 7
## **New Light (North of England)**
## **Notes to the Financial Statements for the Period from 1 August 2019 to 31 December 2020**
## **1 Charity status**
The charity is limited by share capital, incorporated in England and Wales.
The address of its registered office is: 54 Bootham York YO30 7XZ
These financial statements were authorised for issue by the trustees on 24 September 2021.
## **2 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
## **Basis of preparation**
New Light (North of England) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Going concern**
Although the COVID-19 pandemic has affected the activities the charity is able to carry out, the trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
## **Disclosure of long or short period**
New Light (North of England) has chosen to extend the year end to 31 December in order to improve work flow and therefore increase efficiency and turn around time of the accounts. The amounts presented in the Financial Statements are therefore not comparable.
## **Income and endowments**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Page 8
## **New Light (North of England)**
## **Notes to the Financial Statements for the Period from 1 August 2019 to 31 December 2020**
## _**Donations and legacies**_
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Support costs**
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Tangible fixed assets**
Individual fixed assets costing £1,000.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Page 9
## **New Light (North of England)**
## **Notes to the Financial Statements for the Period from 1 August 2019 to 31 December 2020**
## **Depreciation and amortisation**
Depreciation is calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives.
There is no depreciation for Artwork, as required by FRS 102, as these assets are expected to increase in value. The Trustees have departed from FRS 102 to achieve fair presentation and have concluded the accounts present a true and fair view.
**Asset class Depreciation method and rate** Artwork No depreciation
## **Trade debtors**
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Trade creditors**
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Page 10
## **New Light (North of England)**
## **Notes to the Financial Statements for the Period from 1 August 2019 to 31 December 2020**
## **3 Income from donations and legacies**
## **Unrestricted**
||**Unrestricted**|||
|---|---|---|---|
|Donations|**General**
**£**
62,500
62,500|**Total**
**Period ended**
**31 December**
**2020**
**£**
62,500
62,500|**Total**
**Year ended**
**31 July 2019**
**£**
30,010|
||||30,010|
The Charitable Company also benefits greatly from the involvement and enthusiastic support of its many volunteers. More details of the important role volunteers play is given in our annual report. In accordance with Charities SORP, the economic contribution of general volunteers is not recognised in the accounts.
Page 11
## **New Light (North of England)**
## **Notes to the Financial Statements for the Period from 1 August 2019 to 31 December 2020**
## **4 Income from charitable activities**
## **Unrestricted**
|Exhibitions
Sale of goods and services
**5**
**Investment income**
Interest receivable on bank deposits
**6**
**Expenditure on charitable activities**
**Note**
Workshop costs
Exhibitions
Printing, postage and stationery
Advertising
Staff costs
Allocated support costs
7
Insurance costs|**General**
**£**
26,989
26,440
53,429
**Unrestricted**
**General**
**£**
31
**Unrestricted**
**General**
**£**
3,610
24,263
48
-
52,825
15,582
406
96,734|**Total**
**Period ended**
**31 December**
**2020**
**£**
26,989
26,440
53,429
**Total**
**Period ended**
**31 December**
**2020**
**£**
31
**Total**
**Period ended**
**31 December**
**2020**
**£**
3,610
24,263
48
-
52,825
15,582
406
96,734|**Total**
**Year ended**
**31 July 2019**
**£**
-
9,968|
|---|---|---|---|
||||9,968|
||||**Total**
**Year ended**
**31 July 2019**
**£**
20|
||||**Total**
**Year ended**
**31 July 2019**
**£**
3,494
13,114
65
937
22,561
4,545
-|
||||44,716|
Page 12
## **New Light (North of England)**
## **Notes to the Financial Statements for the Period from 1 August 2019 to 31 December 2020**
## **7 Support Costs**
## **Unrestricted**
|Trustee Expenses
Office expenses
Website
Accountancy fees
Independent examiner's fee
Bank charges|**General**
**£**
1,003
900
10,235
2,989
370
85
15,582|**Total**
**Period ended**
**31 December**
**2020**
**£**
1,003
900
10,235
2,989
370
85
15,582|**Total**
**Year ended**
**31 July 2019**
**£**
-
307
2,889
919
370
60|
|---|---|---|---|
||||4,545|
## **8 Trustees remuneration and expenses**
During the period the charity made the following transactions with trustees:
Expenses were paid in respect of 1 (2019 - 0) Trustee for travel and subsistence for the amount of £1,002.87 (2019 - £nil)
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any other benefits from the charity during the year.
## **9 Staff costs**
The Charity employed 0 staff in the year (0 - 2019)
## **10 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
Page 13
## **New Light (North of England)**
## **Notes to the Financial Statements for the Period from 1 August 2019 to 31 December 2020**
## **11 Tangible fixed assets**
|**Cost**
At 1 August 2019
At 31 December 2020
**Net book value**
At 31 December 2020
At 31 July 2019|**Artwork**
**£**
60,000
60,000
60,000
60,000|**Total**
**£**
60,000|
|---|---|---|
|||60,000|
|||60,000|
|||60,000|
## **12 Debtors**
|**12 Debtors**|||
|---|---|---|
|Prepayments
**13 Creditors: amounts falling due within one year**
Trade creditors
Accruals
**14 Funds**
**Balance at 1**
**August 2019**
**£**
**Incoming**
**resources**
**£**
**Unrestricted**
General
66,340
115,960
Designated - Artwork for
Exhibitions
60,000
-
**Total funds**
126,340
115,960|**2020**
**£**
1,295
**2020**
**£**
2,583
1,200
3,783
**Resources**
**expended**
**£**
(96,734)
-
(96,734)|**2019**
**£**
-|
|||**2019**
**£**
1,101
1,200|
|||2,301|
|||**Balance at 31**
**December**
**2020**
**£**
85,566
60,000|
|||145,566|
Page 14
## **New Light (North of England)**
## **Notes to the Financial Statements for the Period from 1 August 2019 to 31 December 2020**
|**Balance at 1**
**August 2018**
**£**
**Unrestricted**
General
71,058
Designated - Artwork for
Exhibitions
60,000
**Total funds**
131,058
**15 Analysis of net assets between funds**
**2020**
Tangible fixed assets
Current assets
Current liabilities
Total net assets
**2019**
Tangible fixed assets
Current assets
Current liabilities
Total net assets|**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
39,998
(44,716)
-
-
39,998
(44,716)
**Unrestricted**
**General**
**£**
**Designated**
**£**
-
60,000
89,349
-
(3,783)
-
85,566
60,000
**Unrestricted**
**General**
**£**
**Designated**
**£**
-
60,000
68,641
-
(2,301)
-
66,340
60,000|**Balance at 31**
**July 2019**
**£**
66,340
60,000|
|---|---|---|
|||126,340|
|||**Total funds**
**£**
60,000
89,349
(3,783)|
|||145,566|
|||**Total funds**
**£**
60,000
68,641
(2,301)|
|||126,340|
Page 15
## **New Light (North of England)**
## **Notes to the Financial Statements for the Period from 1 August 2019 to 31 December 2020**
## **16 Prior Period Statement of Financial Activities**
|**16 Prior Period Statement of Financial Activities**|||
|---|---|---|
|**Note**
**Income and Endowments from:**
Donations and legacies
3
Charitable activities
4
Investment income
5
Total income
**Expenditure on:**
Charitable activities
6
Total expenditure
Net expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
14|**Unrestricted**
**£**
30,010
9,968
20
39,998
(44,716)
(44,716)
(4,718)
(4,718)
131,058
126,340|**Total**
**31 July 2019**
**£**
30,010
9,968
20|
|||39,998|
|||(44,716)|
|||(44,716)|
|||(4,718)|
|||(4,718)
131,058|
|||126,340|
Page 16