2021-08-31-accounts

City&Guilds of London Art School City and Guilds of London Art School Limited Annual Report and Financial Statements 31 August 2021 Company Limited by Guarantee Registration Number 07817519 IEnglaod and Wales) Charity Registration Nurnber 1144708 City and Guilds of London Art School Limited

Contents Reports Reference and administrats've information Trustees, report statement of corporate govemance and inlemal control 18 Independenl auditorfs report 27 Financial ststements Statement of financial actsvities 32 Balance sheet 33 Statement of cash fiow$ Principal accounting policies 35 Notes to the financial statements 39 The followng pages do not form part of the statutory financial slalemenls". List of donations 51 Detailed income and expenditure 54 City and Guilds of London Art School Limited

Reference and administrative information Trustees Jamie Bill (Chair} And￿W Allen QC Marjorie Allthorpe-Guyton (resigned 201031211 Anne Beckwilh-smith LVO Iresigned 201031211 Laurence Benson (Vice-chairl Jyoli Bharwani {resigned 30109120} Nina Bilbey Dr Virginia Brooke DT Caroline Campbell Ema Epps (appointed 01110120., resigned 301091211 Brendan Finucane QC {resigned 191101201 Gabriel Gbadamosi Martin Hatfull James Kelly Tamiko O'Brien Michael Osbaldeston Prof Jane Rapley OBE Tina Roe lappointed 011101211 James Roundell I￿signed 301101211 Prof Elizabeth Rouse OBE Alexander Stitt Benjamin Tucker Company Secrotary Wesley Schol City and Guilds of London Art School Limited 1

Reference and administrative informatlon Senior Management Team Principal DAreclor of Resour￿5 and Tamiko O'Brien Nick Rampley lappoinled 061091211 Operations Head ofFinance Head of Historic Carving Head ofArt Histories He8d ofFine Art Shahzad Asghar Heather Newton Tom Groves Robin Mason Head ofFoundation Head ofAc8demic Affairs & Quality Head of Conservation Haad ofAccess lo Leaming Head ofDevelopment & EKtemal Relations Keith Price Wesley Schol Dr Marina Sokhan Teresita Dennis Hannah Travers Registered and prlncipal offi¢e 124 Kennington Park Road London SE114DJ Telephone [phone] Wobsite www.cilyandguildsartschool.ac.uk e4nail offI￿@CltyandgUlldsartSchOol.ac.uk Company registration number 07817519 {England and Wales) Charity registration number 1144708 UKPRN 10039082 Bankers Barclays Bank plc Soulhwark Branch 29 Borough High Street London SE1 1LY City and Guilds of London Art School Limited

Reference and administrative information Investment Managers Cazenove Capital Management Limited 1 London Wall Place London EC2Y SAU Audltor Buzzacott LLP 130 Wood Street London EC2V 6DL City and Guilds of London Art School Limited 3

Trustees, report Year to 31 August 2021 Introdu¢tlon The Board of Trustees I"Ihe Board.) of City and Guilds of London Art School Limited 1.the Art School" or 'lhe Charity or the charitable company I presents its annual report and the audited financial statements for the year ended 31 August 2021. The report has been prepared in accordance with Part 8 of the Charities Act 2011 and Is 8180 the report of the directors for the purposes of the Companies Act 2006. The financial statements have been prepared under the accounting policies sel out therein and comply with applicable law and Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applieable lo charities preparing their accounts in accordance with the Financial Repottng Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021. the Companies Act 2006 and ¢omply with the Office for Students, Ac¢ounts Direction 2020121. Constltutlon The Art School is a charitable company, limited by guarantee, not having a share capital. The Art School's governance is determined by its Articles of Association, dated 22 May 2019. As sel out in the Articles the Directors of the Art School fom the Art School Board of Trustees. To assi51 in exercising their duties, the Board has a number of Committees, which are detsiled and governed by the Art School's 'How We Work.. Governance & Managemenf. Handbook. The Charity was incorporated on 20 O¢lober 2011 to continue the educational aelivilies that were transferred from City & Guilds Art School Property Trust (the Property Trust) on 31 March 2012 as part of a business transfer agreement. The Art School is a Higher Education Provider registered with the Office for Students in ils Approved Category. Prlncipal aims and activities Founded in 1879. and with a history dating back lo 1854, the Art School is one of the UK'S oldest art educational institutions specialising in art, craft and conservation. Ils original mission was to provide quality instruction in applied art and design for local people. This broadened over time and since World VVar11 has encompassed restoration and conservation lo assist, initially, with the effort to repair London's monuments and heritage. Through this, it developed a strong reputation for excellence in both art and craft. City and Guilds of London Art School Limited 4

Trustees, report Year lo 31 August 2021 Prin¢ip•l aims and actlvltles Icontinuedl The Art School's mission today is to nurture individual talent by providing an immersive learning environment with an emphasis on the dialogue be￿een the eye, the hand and the rnalerial, informed by the study and analysis of historical and contemporary art and craft. This is delivered through a number of specialist courses Ineluding undergraduate and postgraduate courses in Fine Art, Carving larchilectural stone and ornamental wood carving & gildingl, Conservation of cultural artefacts (with a focus on three-dimensional objects, gilded and othef decorative surfaces, and on books and paperl, as well as a Foundation Diploma in Art & Design. Thi5 a¢livily is consistent with the objects contained within the Art School's Articles of Association. The Art School sets out lo edueate artists, craftspeople and conservators who will go on lo make a significant contribution in their fields, through the pursuit of excellenee in tradition81 skills as well as through creative innovation and enterprise and a commitment lo offering students a high level of contact time working with some of the country's leading specialist practslioners. Convinced of the social value and necessity of ils subjects, not only for the creative and heritage sectors, but for society al large, the Art School champions the roles that art and craft play by engaging in nabonal and international collaborations and through public facing events. The Art School is committed to supporting the development of individuals from all backgrounds who have the potential to succeed in ils subjects and motivating students lo be inquisitive and resourceful, equipping them lo go on learning through practice for the rest of their lives. Public benefft The Trustees confimi that they have complied with their dutie5 under section 4 ofthe ChaTlties Ael 2011. They have considered the public benefit guidance published by the Charity Commission and believe that they have followed its guidance in this area. The Trustee5' report gives a description of the activities undertaken by the Art Schtsol during the period lo further ils charitable purposes, and the Trustees are satisfied that such activities provide public benefit. Governance, structure and management Review Following subslanlial changes in the membership of the Board lincluding the appointment ol a new Chairl in 201912020, the current year saw a consolidation of ils membership., three long-stsnding Trustees, whose reliremenls had been anticipated by appointments made in the previous year, resigned on completion of their final term of office. Otherwise the only change in membership during the year was that of the Board's student representative whose appointment as co-chair of Students expires on an annual basis. City and Guilds of London Art School Limited

Trustees, report Year to 31 August 2021 Governance, structure and management Iconlinued) Organisation The Trustees are directors of the company for the purposes of the Companies Act 2006 and are Trustees of the Charity for the purposes of Charity legislation. The Board is the policy-rnaking body of the Art School. It is assisted by the Secretsry, who is appointed by the Board. The Board also operates through a number of committees, including.. Audit & Risk Committee., Remuneration Committee,. Investment Committee., and Nominations Committee, Though the Board retains responsibility for the assurance of institutional quality and standards, the control of academic matters, including the structures, processes and regulatory frameworks through which academic matters are decided and overseen, resides with academic staff. Academic authority is exercised through the Academic Board, advised and supported by professional ladministrative colleagues and with the involvement of students. The Academic Board is chaired by the Principal and operates under delegated authority from the Board. 11 is supported by the variou5 Board5 of Studies for each of the Academic Departments and the Site & Environment Sub-committee, estsblished in October 2019 repo￿.n9 also lo the Trustee5 through the Audit & Risk Committee. Additionally, there is a Finance Working Group which advises the Board on financial strategy, the Principal's Business Planning Advisory Group providing the benefit of Truslee-level expertise and experience in exploring the feasibility of new business opportunities, initiatives or broader issues, and a Joint Development Advisory Working Group that supports the fundraising activity of both the Art School and the Property Trust. a separate charity and landlord to the Art School. Key management personnel The Principal of the Art School, who is Ex OlfKio Trustee, is charged with carrying out the policies agreed with the Trustees and with managing the Art School's academic activities and directing and running the organisalion on a day-to-day basis. She is assisted in this by the Director of Resources and Operations and by the Heads of Department for each of. Academic Affairs & Quality., Access lo Learning., Art Hislorie5,' Conservation,. Fine Art,. Foundation., and Historic Carving," who. along with the Head of Finance and Head of Development & External Relation5, form the Senior Management Team. In addition, there are functional heads responsible for supervising certain key shared facilities such as the Site Manager. Librarian. Drawing Studio Manager and Print Room Manager. The remuneration of key management personnel as well as the overall scheme for all staff is set and approved by the Trustees through the Remuneration Committee. Remuneration is reviewed annually, paying due regard lo market Tates and sector benchmarks. City and Guilds of London Art School Limited

Trustees, report Year lo 31 August 2021 Governance. structure and management Iconlinuedl Pgrsonnel In line with the Art School's policy whereby students are largely laught by praclising professionals. specialist tutors are engaged on an annual or lerm-by-term basis for a specified number of days. In this way, Students are exposed lo a wide variety of specialist skills, creative models and critical opinions, whilst continuity of academic progress is ensured by the Heads of Department. The Art School's non-academic activities (including administration, finance and developmentl, are run by a small adminislralive team reporting lo the Head of Resources and Operations. Risk managem•nt The Trustees have assessed the major risks lo which the Art School is exposed. In particular, these relate lo". academic standards and reputation", sludenl recruitment and financial sustsinabilily., and compliance with stalulory and regulatory requirements, in particular those relating to.. Office for Students Registration". Course validation and designation., Home OffiGe student Sponsorship Duties; Gener81 Data Protection Regulations., and He811h & Safely. All areas of risk are monitored through the Art School's governance structure which identifies the lines of responsibility and decision making for each aspect of the Art School's operation, with the AudAI & Risk Committee resF)onsible for reviewing Risk Registers and reporting to the Board. The Trustees and Senior Management Team ensure that the Art School's operations are protected against significant risk through annual monitoring, action planning and risk assessment procedures. The Art School has comprehensive insurance cover against key areas of risk., in addition to Public Liability Insurance cover of up to £1 Om and Directors, Liability cover of up to £2m, the Art School also has a business interruption insurance covering up to 24 months of fee income. The Art School's accommodation is insured by the City & Guilds Art School Property Trust, at its full re-inslalement value. In addition, as part of the Office for Students application process, the Art School devised and pul in place a Student Pmteclion P18n, which details how the Art School will support students lo complete their studies, should the Art School face an extreme challenge leading to total or practical closure. The Board is satisfied that systems are in place lo mitigate, or control where possible, the Art School's exposure lo the risks mentioned above. Fundraising statement The Art School adheres lo good standards of ethical fundraising. A Gift A¢￿pIance Policy adopted in July 2019 formalises the Art School's practices and ethical fundraising position and will be reviewed in 2021122. The Art School greatly values the support it receives from donors. The majority of its donations are received from institutions, which the Art School approaches from lime to time. A small number of donations are received from individuals, including student alumni, who are approached from lime lo time via wrillen correspondence. email or at events. crty and Guilds of London Art School Limited 7

Trustees, report Year to 31 August 2021 Govemancg, Structuro •nd management Iconlinuedl Fundraising statement (continued) The Art School does not approach individuals for donations who are not known by the Art School, and does not canvas on the street for donations. The Art School does not employ any third parties lo fundraise on ils behalf, and no complaints have been received about ils fundraising activity Donors, personal data is not shared with any third party, and is stored Safely and securely in line with the General Data Protection Regulab'ons. ststement of Trustees. responsibilitles A Statement of Trustees. responsibilities is included in the Slalement of Corporate Governance and Internal Control. Board of Trust••s The members who are in office al the date of this report are listed on page 1 with their dales of new appointment and resignation since 1 September 2020. No TTUStee has received any remuneration for services as a member of the Board 12020 - none). The Statement of Corporate Governance and Internal control sets out the Trustees who were in office for the year ended 31 August 2021 and up until the date of approval of the financial statements lunless othernise indicated). Objectives and relevant policies The Art School's objectives are sel to reflect its educational aims and ethos. In setting these, the Trustees have given due consideration lo the Charity Commission's general guidance on public benefit and lo ils supplementary benefit guidance on fee charging. The Art School's key obje￿iveS for the year in¢luded". • to ensure conlinuily of learning for its students notwilhstsnding the challenges presented by the COVID-19 pandemic., • lo ensure ongoing full compliance with Office for Student5 expectations, the UK Quality Code and other relevant legislation., • lo con501idate ils Conservation offer following Ihe introduction of a new subject area of book and paper conservation in the previous year and consider further OPPOrtunilies lor expansion of its academic portfolio.. • to continue engaging further in public facing initiatives, in collaboration with other organisats'ons, to raise the Art School's profile and engage acts'vely in the broader dialogue about art. craft and education.. City and Guilds of London Art School Limited

Trustees, report Year to 31 August 2021 • lo continue lo nurture and extend the number of high-qualily partnerships and initiatives for student participation and engagement, and to support the development of professional practice and progre$5ion into employment upon graduation., Governanco, Structure and rnanagement Icontinuedl Objèctlves and relevant policies (conlinued) to enhance further the availability of bursary support and financial assistance for students with financial needs". and • to work closely with the Property Trust on progressing with the development of the Art School's Kennington site and student facilities, with a particular emphasis on creating a new suite of conservation studios along with addition81 Fine Art studios to allow for additional reeruitmenl from planned academic portfolio expansions. Access and Equallty & Dlverslty The Art School is committed to supporting the development of individuals from all backgrounds who have the potential to succeed in its subjects. It believes in the importance of a diverse student community. The Art School charges fees al a level commensurate with the majority of other institutions that offer higher education in art and design. Not all of the Art School's students are eligible for student loan 5UPPOrt, so it seeks to provide financial support through bursaries from its own investment income, frorn funds raised specifically for this purpose from a wide range of charitable sources and by 5UPPOrting students in their own search for financial support. The Board's policy is lo provide fee bursaries on the basis of need and educational ability, subject lo such restrictions as may have been imposed by the donors of the funds al its disposal, and within the ¢apacity of the funds available. The Art School is committed to promoting and upholding equality and diversity and is committed lo a working environment which is free from discrimination on the grounds of colour, race. ethnicity, religion, sex, sexual orientation, disability or age. It anticipates the needs for a diverse range of learning styles and makes reasonable 8djuslmenls to meet the specific needs of students and staff who are, or become disabled, functionally disabled or possess some other protected status. Investment The Art School's investrments are managed by Cazenove Capital Management Limited. The Art S¢hool has a portfolio of investments with a market value including cash as at 31 August 2021 of £1.609,82612020. £1,398,4891. There are no extra-stalulory restrictions on the Art School'5 power to invest. The investment strategy is sel by an Investment Committee reporting lo the Board of Trustees and considers capita1 growth and income requirements. the risk profile and the investment managers, view ol the market prospects in the medium temi. The overall investment policy is lo provide the level of income sought by the Trustees whilst endeavouring lo ensure that longer term capital values more than cover the impact of inflation. The performance of the portfolio is reviewed regularly by the Investrnent Committee. City and Guilds of London Art School Limited

Trustses, report Year to 31 August 2021 Activitie$ and achlevements Student numbers and academic a¢hievements The number of students enrolled at the beginning of the 2020121 academic year lolalled 258 1237 in 2019120} Foundatlon Studies 79 students174 in 20191201 successfully completed their year of study and were awarded a Foundation Diploma in Art & Design from UAL Awarding Body, with many able lo secure place on the university course of their choice. Flne Art 20 students {23 in 20191201 were awarded BA IHonsl degrees in Fine Art,. 12 Firsts and 7 Upper Seconds. 1 Lower Second. 16 students completed their MA Fine Arts degree in the Spring lemi 2021 following an extension lo their 2019120 academic year due lo the Covid-19 pandemic. 14 completed their MA in the eady autumn 2021 following a similar though shorter extension lo 2020121. Conservatlon 4 students 14 in 20191201 were awarded BA (Honsl Conservation Studies., 2 First and 2 Upper Seconds. 3 students completed their MA Conservation in the Spring temi 2021 following an extension to their academic year due to the Covid-19 pandemic. 1 MA student completed in the early autumn following a similar though shorter extension lo 2020121. Historic CaThlng 5 students (5 in 20191201 were awarded BA IHonsl Historic Carving., 4 First, 1 Upper Seconds. 4 student$ completed their MA in the early autumn 2021 following a short extension to their academic year due to the Covid-19 pandemic. Art and Materials Histori9$ 1 student completed their Art and Material Histories degree in the Spring lemi 2021 following an extension lo their 2019120 academic year due to the Covid-19 pandemic. 2 completed their MA in the earty autumn 2021 following a similar though shorter extension to 2020121. City and Guilds of London Art School Limited 10

Trustees, report Year lo 31 August 2021 Actlvltles and achievements (¢ontlnued) Burs8rles and scholarships The continued generosity of the Art School's many benefactors enabled fee bursary awards of £224,825 1£264,809 for the previous 12 months). Contributions made by way of direct applications for support by students amounted to an additional £20,583 for the academic year [£26,833 in the previous yearl. In the course of the 12 months lo 31 August 2021, fee bursaries were given to a totsl of 57 students163 in the previous yearl. representing more than one in three students on the Art School's undergraduate and postgraduate courses towards which bursary and scholarship support is primarily directed. New pledges for coming years have also been secured. Trustees continue lo ￿gard increasing the amount of bursary and scholarship funding available for students as a priority. Aeademlc Portfollo Developments This was the first year for the new subject area in the Conservation of Books & Paper following the successful validation of the new awards and fundraising for new specialist facilities. The first year oflhe course successfully recruited and engaged a new team of experts In delivering this important specialist area, securing important ski115 and knowledge for the UK'S heritsge sector. A significant part of this development for Conservation wa5 the tnove of MA Fine Art ffom the Georgian studios to the first floor of the BT Building which had been sel up for MA Studios thanks lo exlemal funding. The new studios supported the Art School not only by hosting the new intake but also mitigating the impact of the Covid pandemic by providing studio space for the 2019120 MA cohort whose course wa5 extended by several months due lo the first nationwide Lockdown in March 2020. Outreach and collaborative projects The Covid pandemic severely restricted our ability to undertake collaborative and outreach projects lo the level we had achieved in the past. Participation in London Craft Week, The Big Draw, and our plans lo work with ARTiculation on an event with young people and lo run a Saturday Print workshop for young people in coll8bor81ion wlh Creative Dimension Trust were all cancelled as a result And our artist in residence programme postponed for a year. Nevertheless, Art S¢hool students and personnel succeeded in taking part in a wide range of external inilialives. Despite the pandemic we were able to run a successful short courses programme targeted al ¢hampioning our subjects in the summer 2021. with a number of participants recewing bursaries from the Andrew Lloyd Webber Foundation aimed al engaging young people wth historic crafts, specifically facililaling the participation of those who would otherwise be unable to fund their pl8ee. Professor Roger Kneebone, the Art School's first Honorary Fellow, gave an online lecture to students from across the Art School about his new book Expert.. Understanding the Path lo Mastery. The Sir Denis Mahon Foundation Sculptuol Grant provided a £5,000 annual grant which was awarded to three students across BA Conservation, Historie Carving and Fine Art courses whose work focuses on sculpture in the final year. City and Guilds of London Art School Limited 11

Trustees, report Year lo 31 August 2021 Activlties and •chievements {continuedl Outreaeh and collaborative pmjects fcontinued) The Art School's Royal Literary Fund Fellow for the year was poet and non-fiction writer Kathryn Maris who provided support lo students with any type of written work. whether an essay, dissertation, artist statement or even creative writing. The Art School a150 took part in the Reading Agency's World Book Night by creating a resource online recommending some of the most inspiring and indispensable books from our library's distinctive collection covering our specialist subjects. Fine Art A collaboration with Woolwich Contemporary Print Fair resulted in a printmaking demonstration event and discussion between our Print Room Manager and Vincent Eames, Director of Eames Fine Art. {see htt s'.Ilww.ci and uildsa chool.ac.ukJ rinlmakin demo-and4iscussion-wilh- ason-hicklin4 Four Art School Fine Art graduates and an Art S¢hool Print Fellow were shortlisled for the Ingram Collection's Young Contemporary Talent Purchase Prize 2020. Kristina Chan, Print Fellow went on to be awarded one of three prizes. Fine Art graduate Augusta Lardy was one of the ten winners to take part in an exhibition. which was accompanied by a publication, of the Freelands Painting Prize celebrating oulslanding painting practice at undergraduate level. 2020 BA Fine Art graduate Freya Moffat was chosen for Grayson's Art Club exhibition & in 2021 was shortlisled for the Signature Art Prize and had a solo show at Fondazione Pini, Milan. MA student Caroline Wong was included in the five-person show 'Drawn Out. al the Drawing Room. 2020 MA graduate Patrick Stratton was shortlisted and exhibited at the 2021 Cordis Prize for Tapesty. a celebration of contemporary practice established by Author lan Rankin and Miranda Harvey. Two Fine Art alumni had work shortlisled for the Ashursl Emerging Artist Prize 2021 The outs18nding work of our 40+ 2020 Fine Art BA and MA graduates, who had been unable lo present their work in a physical show in Summer 2020 due lo the pandemic, was celebrated in an exhibitson held at Bargehouse. Oxo Tower, Soulhbank. Towards the end of the year, the Art School awarded a significant grant from the Leverhulme Trust for Arts Scholarships supporting MA Fine Art & MA Art & Material Histories students. Over the next four years up to 16 students will receive full scholarships be￿een 2021-2025. Conservation & Historic CaNing Orbis Conservation. founded and run by alumni frorn the Art School's Conservab'on Department were presented with the Restorationlconservation Project of the Year 2020 Award al the Museums + Heritage Awards together with Plymouth City Council, for an ambitious ￿-year project involving the conservation. consolidation and restoration of five, large 19th century ships, figureheads installed at The Box, Plymouth. a new arts and heritage complex. City and Guilds of London Art School Limrted 12

Trustees, report Year lo 31 August 2021 Actlvftles and achievements Iconlinuedl Outr6ach and eollaborative projects (continued) ConseNation & Historic C8Ning (continued) An MA Conservation student took on a project on The Alcibiades Dog, a cast concrete sculpture loaned from Chatsworth House an(J a recent MA Conservation graduate received an Anna Plowden TrusUClolhworkers' Foundation Grant for recent graduates lo gain practica work expenence previously made impossible by the pandemic, enabling her to work with Jackson Sculpture Conservation. BA graduate Louise Davison was elected as a young professional trustee for ICON. Head of conserVat￿n, Dr Marina Sokhan, and Art Histories Tutor, Dr Michael Paraskos, spoke at a webinar organised by Imperial College London entitled 'Laser Cleaning in Conservation l Historic Artefacls". when do you want it?, as part of its 'Science & Engineering Research for Cultural Heritage, series. The Conservation Symposium al which final year BA and MA Conservation students present their research al a public-facing event usually takes place al the V&A Museum. Due to the pandemic, this year il look place online. Recordings of their presentations are available on the Art School's YouTube Channel. Four Books and Paper Conservation students look part in a project to deep clean the library of Strawberry Hill House and had the opportunity lo discuss their work and studies wlh visiting members of the public.. The Conservation Department has continued to build on existing and develop new partnerships for student projects, placements and internships, and has been bLJilding a new ne￿ork to support the BA Conservation". Books & Paper course. The Brilain-Australia Society Education Trust and City & Guilds of London Art School. Endeavour Award lo Fund an Australian citizen to Study ConseNation in London and raise the profile of the Art School's courses in Australia conb"nue5 to be rolled out. The CaNing departmenV5 collaboration wlh workwear manufacturer Carhartt continued with a selection of six new student ambassadors being chosen to represent their historic craft skills and the brand. The NEW BEGINNINGS exhibition at the Lettering Arts Trust in Snape Maltings, Suffolk included a number of recent graduates. The Art School exhibited at the online Historic Buildings. Parks & Gardens Event with BA Historic Carving students demonslraling their skills lo visitors and those in the coft & heritage industries. Nlne Historic Carving students and recent graduates were shortlisled for the Grinling Gibbons 300 Award, a national competition for emerging carvers established to mark the 300th anniversary of the death of the'michelangelo of woodcarving, Grinling Gibbons. Art School students and alumni won fi've of the six prizes including the first prize The Art School also worked with the Drapers. Company on 8 special commission for a recent graduate of a arving to celebrate Gibbons for the Drapers, Hall. Freya Douglas Ferguson, a re¢enl graduate of the Catving Postgraduate Diploma, was selected for the prestigious New Conlempor?rie$ 2021 exhibition that travelled from First Sile Co1chester lo the South London Gallery. City and Guilds of London Art School Limrted 13

Trustees, report Year to 31 August 2021 Activities ond achlevements {continuedl Investmentpgrfomianco During the year to 31 August 2021 the Charity's investments produced an overall income of £81.83212019120.' £20,035} and a nel capital gain of £177,90012019120. gain of £10,229). The investment managers continued to invest in accordance with the Trustees, investment policy, which is reviewed by the Investment Committee and the Board annually, and which Is based on an ethical investment approach. The Trustees are satisfied that their investment objectives are being mel by the perfomance of the investments in the context of existing economic and investment conditions. Finan¢Sal revlew Results for thè year The Art School recorded a deficit before nel gains on investments of £144,32912020'. surplus of £252.4051 for the year. Unrestricted funds recorded a deficit, reflecting additional costs arising from the Covid-19 pandemic and a reduction in unreslricled donations during the year. Restricted funds drawn on in year similarly exceeded income into those funds. Realised gains of £29,55912020'. losses of £14,416} and unre81ised gains of £148,34012020.' gains of £24,645) on the Art School's investments were recorded In its reslricled and endowment funds. Reserve$ The Board has examined the requirement for free reserves i.e. those funds not invested in tangible fixed assets, not designated for specific purposes, not restricted and not otherwise cornmitted. The Board intends lo achieve, as circumstances permit, an increase in the free reserves from present levels in order lo provide liquidity lo meet any future temporary shortfalls in income and lo provide adequate working capital as the activities of the Art School grow. In the meantime the Trustees have taken the view that the expendable endowments and free reserves should be considered together and are satisfied that this is in line with the reserves policy. A tsrget of three months, operating expenditure would be deemed appropriate. Financlal posltlon The balance sheet shows totsl funds of £1.595,93212020.' £1,562.361}. These funds indude endowment funds of £1.146.66512020." £1,069,491). Whilst the income from these funds may be used for the general purposes of the Art School, most of the endowment fund balances themselves are regarded as long term capital. Also included in total funds is an amount of £428,765 which is ￿striCted{202o. £460,705). These monies have either been rais￿ for, and their use 1s reslricled lo, specific purposes or they comprise donations subject to donor-imposed conditions. Details and an analysis of movements in the year of these endowment and restricted funds can be found in notes 15 and 16 to the financial statements. City and Guilds of London Art School Limited 14

Truslees, report Yearto 31 August 2021 Flnanclal revlew Icontsnuedl Fln8nclal posltlon (continued) Unrestricted funds of the Art School at 31 August 2021 total £20,502 {2020 £32,165). These funds are represented by general fund tsngible fixed assets of £189,98612020.' £216,492) and by a deficit of free reseNes of £169,48412020' deficit of £184,3271. The Trustees have considered the position in the context of known future sources of income, and also expendable endowments of £966,851 12020." £907,859) which are available lo provide liquidity to the School if needed. and thus consider the reserve ptssition to be acceptsble in the context of the reserves policy. Going Concern The Trustees have assessed whether the use of the going concem assumption is appropriate in preparing these financial stalemenls. The Trustees have made this assessment in respect of a period of one year from the dale of approval of these financial slalements, taking into consideration the impact of the Covid-19 pandemic on its operations and financial position going forward. In doing so, the Trustees have considered the following.. Latest operational plan for the remainder of the current 2021122 academic year in response lo ongoing government guidants., Evidence from the impact of lockdowns experienced in 2020121 and measures in plaee to mitigate these, along with the performance record of re-opening the Art School facilities and operating a blended leaehing offer during the September lo December 2021 period., Revised budget and financial forecast for the financial year 2021122 along with the development of a new Strategic Plan for the pericxy 2022-2027 Since the onset of the Covid-19 pandemic, the Art School management's foremost priority has been to adapt ils learning offer to meet government guidelines while safeguarding the quality of the sludenl experience and ensuring student progression. This was achieved successfully during the 2020121 academic session through an extension ol the academic year to make up for the lockdown periods in terms of practical work and studio lime and resulted in all students eompleling their year suc￿SsfUlly. Interruption of studies remained at very low levels, not increasing from prior years. The measures put in place to re-open the Art School facilities for the academic year 2021122 with full workshop and studio access and a blended leaming offer resulted in a suc￿Ssful first lemi and no cases of pandemic-relaled interruption of studies. At the point of writing, the recruitment outlook for the 2022123 academic year is stable based on the level of interest and number of applications received. therefore suggesting that the target of securing a full intske should be achieved, supporting an increase in fee income in 2022123. As an independent organisation in the HE sector, the Art School was not eligible for any cultural sector government funds and was only able to draw on the Furlough Scheme in 8 limited way during the periods of lockdown. In order lo miligale the financial challenges created by the Covid-19 pandemic and following a successful appeal addressed at Its existing donor base of supporters, continued operational support remain5 the primary focus of fundraising activity for the current year. City and Guilds of London Art School Limited 15

Trustees, report Year lo 31 August 2021 Golng Concern Icontinuedl In order lo provide additional working capital support if needed, the Art School took advantage of the Coronavirus Business Interruption Loan Scheme to secure a CBIL loan of £250,000, repayable over a period of 6 years from financial year 2021122. At the year-end £222,222 of the Art School's £924.255 cash holdings derived from the CBIL loan. The Art School held negatNe free rese￿eS of £169,484 as al 31 August 2021 12020 negative free reserves of £184,327). The Board intends to achieve, as eireumstsnces permit, suitable level of free reserves in order lo provide liquidity to meet any future temporary shortfalls in income and to provide adequate working capital. The Art School now holds expendable endowments tolalling £966.851 12020.. £907,859} These expendable endowments are available to provide additional financial support and liquidity lo the Art School. In light of the above, the Trustees have concluded that there are no material uncertaintie5 related to events or conditions that may cast significant doubl on the ability of the Art School to continue as a going concern. Future plans At the same lime as approving this Report and Financial Statements the Board has also approved a new Strategic Plan 2022-2027. The Plan sets out the largel$ by which the Art School intends to meet ils Strategic Goa15 of.. Promoting academic ex￿llenCe and Increased learning opportunities in its areas of expertise., Enhancing its student and staff experience by ensuring ils infrastructure supports its ambitions as a Centre of EX￿llence.. and Safeguarding and Championing the Art School's ethos and values by ensuring sustainability and supporting future ambitions. Under the last of these Goals, the Art School's objectives are.. lo support sustsinability through irnproved Financial Performance by.. achieving a sustsinable operational surplus to provide for capital development, special projects and ontingeneies", containing staff and other costs to levels of income in proportion wth areas of growth,. and ensuring departmental budgeting is strategically driven lo support our vision., and lo enhance financial Suslainabilily through increased Fundraising and Development activrty by.. expanding the number of exlemal funders and partnerships lo support the Art School's bursary and capita5 development need5 and enhance its reputation and profile, raising the Art School's public profile through increaseos partnerships. external projects and media coverage and increasing our presence and activity within the local community., and broadening the basis for fundraising appeals through a focus on defined special projects. City and Guilds of London Art School Limited 16

Trustees, report Year to 31 August 2021 The Charity's assets Acquisitions and disposals of fixed assets during the year are recorded in the notes to the financial statements. Approved by the Board on 26 January 2022 and signed on ils behalf by.. Jamie 8111 Chair City and Guilds of London Art School Limited 17

Statement of corporate governance and internal control Year lo 31 August 2021 The following statement is provided to enable readers of the annual report and financial slalemenls of City and Guilds of London Art School to obtain an understanding of ils governance and legal structure. These a￿ detailed and governed by the How We Work.. Governance & Managernent Handbook. The statement covers the period from 1 September 2020 10 31 August 2021 and up lo the date of the approval of the annual report and financial stslemenls. The Art School endeavours to Conduct its business-. 1. Having due regard lo the UK Corporate Governance Code 2018 in so far as il Is applicable to the Higher Education Sector, and the Charities Act 2011. 2. Complying with Office for Students on-going conditions or regulations and terms of conditions of funding as well as other regulatory responsibilities. in accordan￿ with the Higher Education Code of Govemance. We have reported on our Corporate Governance arrangements by drawing upon best praetice available, including those aspects of the UK Corporate Governance Code. the Higher Education Code of Governance and Charities Act 2011. The Board ofTrustees recognises that as a body enlru51ed with private funds, charitsble funds and public funds where received, il has a particular duty lo observe the highest standards of corporate governance at all limes. Legal Statu$ City and Guilds of London Art School is Sehool is a charitable company, limited by guarantee, not having a share capital. The Board of Trustees confimi that they have due regard for the Charity Commission's guidance on public benefit and that the required statement appears elsewhere within these financial statements. The Board of Trustees The members who served on the Board of Trustees during the year and up lo the dale of signature of this report are listed below. City and Guilds of London Art School Limited 18

Statement of corporate governance and internal control Yearto 31 August 2021 Trustee Appointed l Resigned Andrew Allen QC Marjorie Alllhorpe-Guyton Anne Beckwith-smith LVO Laurence Benson (Vice-chairl Jyoli Bharwani Isludenl Trustee) Nina Bilbey (Staff Trustee) Jamie Bill {Chair) Dr Virginia Brooke Dr Caroline Campbell Ema Epps (Sludenl Trustee) Brendan Finucane QC Gabriel Gbadam051 Martin Hatfull Resigned 20 March 2021 Resigned 20 March 2021 Resigned 30 September 2020 Resigned 30 September 2021 Resigned 19 October 2020 James Kelly Tamiko O'Brien (Principal and Accountable Officer) Michael Osbaldeston Prof Jane Rapley OBE Tina Roe (Student Trusleel James Roundell Prof Elizabeth Rouse OBE Appointed 01 October 2021 Resigned 30 October 2021 Alexander Slitt Benjamin Tucker Board of Trustees. interests The Board of Trustees are shown above and except for any Instance mentioned above have served throughout the year. Three members of the Board of Trustees have interests within the organisalion, including two salaried members of stsff, the Princip81 lex~officio Trusteel, the 51aff represenlalive Trustee lelectedl, and the Student representative Trustee (also known as Chair of Sludentsl,. none of them re￿1ve remuneration for their services as members of the Board. The Secretary lo the Board of Trustees maintains a register of financial and personal interest of the members of the Board of Trustees, updated annually. Statement of trustees. responsibilities The Trustees (who are also directors of the Art School for the purposes of company lawl are responsible for preparing the Trustees, report and financial statements in accordance with applicable law and United Kingdom Aecounting Standards {United Kingdom Generally Accepted Accounting Practice). City and Guilds of London Art School Limited 19

Statement of corporate governance and internal control Year lo 31 August 2021 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 the income and expenditure of the charitable company for that period. statement of trustees, responsibilities l¢onlinuedl In preparing these financial statements. the Trustees are required to.. • select suitable accounting policies and then apply them consistently.. • observe the methods and principles in Accounting and Reporting by Charities.. Statement of Recommended Practi￿ applicable to charities preparing their accoun15 in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021; make judgements and estimates that are reasonable and prudent., • slate whether applicable United Kingdom Accounting Stsndards have been followed, subject to any material departures disclosed and explained in the financia1 slalemenls., and prepare the financial stslemenls on the going concern basis unless it is inappropriate lo presume that the charitable company will continue in operation. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy al any lime the financial position of the charilabSe company and enable them to ensure that the financial ststemenls 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. Trustees are also responsible for ensuring that the School continues lo meet the conditions for Office for Students registration, and also safeguarding freedom of speech and academic freedom Each of the Trustees Confirms that.. so far as the Trustee is aware, there is no relevant audit information of which the charitable company s auditor is unaware,. and • the Trustee has taken all the steps that helshe ought to have taken as a Twslee in order to make himselflherself aware of any relevant audit information and to establish that the charitable company's auditor is aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 20C6. Meeting Procedures Formal agendas, papers and reports are supplied to the Board ofTrustees in a timely manner, prior to Board meetings. Reports include financial perfomance of the organisation together with other information such as recruilmenl, academic and quality matters, personnel related matter5, and health and safety matters. The Board of Trustees met five limes in 2020121. Full minutes are kept of all meetings. City and Guilds of London Art School Limit￿ 20

Statement of corporate governance and internal control Yearto 31 August 2021 Meeting Procedures Icontinuedl The Art School has a strong and independent non*xecutive membership on the Board of Trustees and no individual or group dominates its decision-making process. The organisation IS 5a115fied that each of its non-execulive members is independent of management and free from any business or other relationship which could materially interfere with exercise of their independent judgement. There is a clear division of iesponsibility between the roles of the Chair and Accountable Officer. Appointment to the Board of Trustees Appointment to the Board of Trustees are matters for consideration of the Board of Trustees as a whole, as advised by the Nominations Committee. Board of Trustees Perfomiance Oversight The Board of Trustees exercise robust scrutiny of performance and challenge where necessary. Board meetings provide the opportunity for thorough discussion of issues arising. Trustees are pro-active In their oversight of the organisation and are involved in the planning and discharging of Board business. A review of individual Board members, roles and contributions is conducted annually by the Chair. Commlttees The Board of Trustees receives advice on the conduct of ils business from four committees and the Aeademic Board. Each committee has its own terms of reference which have been approved by the Board of Trustees. This committees are.. Audit & Risk Committee., Remuneration Committee., Investment Committee,. and Nominations Committee. In addition. a Finance Working Group was formed in March 2021 to inform strategic planning, the Principal's Business Planning Advisory Group provides the benefit of Trustee-level expertise and experience in exploring the feasibility of new business opportunities, initiatives or broader issues, and a Joint Development Advisory Working Group that supports the fundraising activity of both the Art School and the Property Trust. a separate charity and landlord lo the Art School. City and Guilds of London Art School Limited 21

Statsment of corporate governance and internal control Year to 31 August 2021 Commlttees Iconlinuedl AUDIT & RISK COMmI￿EE INVESTMENT COMMITTEE NOMINATIONS COMMITfEE REMVNERAnON COMMITTEE Frequency of meetin%5 Minimum 4 p.a. 2 p.a. Mlnlmum 2 p. Minimum 2 p.a. Chalr Laurence Benson Jarnes Rounde11llames Kellv from 2022 Marjorie Allthorpe Guytonl Caroline Campbell Laurence Benson Clerk Secretary to the 8oard Virginia Brooke Martin Hatfull JaTne5 Kelly Jane Rapley Michael Osbaldeston Director of Resovrces ando erations Laurence Benson Secretary to the Board Secretsry to the Board Andrew Allen Trustee5 Andrew Allen Nlna Bllbey (Staff Tru5teel Tina Roe (Student Trustee) Gabriel Gbadamosi Alex Stitt Ben Tucker Nina Bilbey (Staff Trustee) Martin Hatfull Tina Roe Istudent Trustee) Ben Tucker Non-TYustee Members Humphrey Carev (Property Trustl Tim Stathzrn Hurnphrey Carev (Property Trust) Rupert Asquith Head Of Finènce In attendance Principal (eX￿th(lO Tru5teel Princip81 lex-officio Trustee) officio Trustee) Nick Orr, Cazenove Capital Brendan Finucane IformerTrusteel DI￿ttor of Resources and Operation5 Dlrector of Resources and Operation5 Head of Finance Head of Finance Audit and Risk Committee The Audit and Risk Sub-committee is responsible to the Board of Trustees in discharging ils responsibilities for reporting ils independent opinions on the risk management. controls, govemance. and value for money arrangements of the Art School. The Committee is responsible for the following.. To appoint extemal auditors and agree the audit fee, meet with the external auditors lo discuss the scope and nature of the audit and to discuss the findings of the audit along with the included management letter and management responses. To review on a regular basis the Art School's Risk Register, advise the Board of Trustees of any significant changesladditions and lo escalate any serious concern5 to the Board City and Guilds of London Art School Limited 22

Ststsment of corporate govemance and internal control Yearto 31 August 2021 Committeeg {conlinuedl Audit and Risk Committee (continued) To commission audit reviews of anything that could potentially threaten or adversely affect the accomplishment of the aims and objectives of the Art School, or which potentially could put the Art School al financial or reputational risk. • To ensure, on behalf of the Board of Trustees. that sound financial and governan controls are in plaTr, and effectively implemented., including the endorsement of the Art School's Financial Regulations. Reserves Policies and arrangements for risk and business continuity managemenL A Slte & Environmont $ub4ommittge reporting lo the Audit & Risk Committee 15 tasked with overseeing all matters relating to risk management and complian￿ with legal obligations relating to the physical, working and educational environments, including student and staff welfare provision and the Health & Safety of all the Art School's members and visitors. Remuneration Committee The Remuneration Committee provides oversight of strategic staffing matters and delemiine policy on staff ￿muneratIOn,. and has delegated authority of the Board to determine the schema for staff pay increases and 10 decide the remuneration of the Principal and Senior Members of Staff. Investmont Committso The Investment Committee oversees the managemenl of the Art S¢hool's investment portfolio. Under delegated ?uthority of the Board of frustees, the Investment Committee is responsible for advising the Board on the appointment of the investment managers," for monitoring the performance of the portfolio and the effectiveness of the Investment slralegy., and for ensuring that the Art School's investments are handled responsibly and ethically. Nominations Committee The Nominabons Committee oversees the process for the recruilmenl and appointment of members of the Boards of Twslees and advises the board overseas the process for review of governance effectiveness. It keeps under review policies and processes relating lo memt)efship of the Board of Trustees including induction, training and development of the Trustees. City and Guilds of London Art School Limited 23

Statement of corporate governance and internal control Year to 31 August 2021 Committees Icontinuedl AcademiTC Board The Academic Board is established by the Board of Trustees with delegated powers lo oversee the Art School's academic acb'vits'es on its behalf and to be the instilulion's supreme academi¢ authority. Chaired by the Principal, the responsibilrf(ies delegated lo Academic Board are to.. • Uphold the academic stsndards of Art School's courses and the quality of ils leaching and student welfare provision. Devise, maintain. amend and, in individual cases suspend, the Student Regulations. Recommend the appointment of External Examiners for validated provision. Appoint External Examiners for non-v81id8ted provision. Confimi the students, results lor those courses delivered independently of 8 validating partner. • Elicit, receive and act upon S￿dent feedback. Oversee 811 internal review and evaluation processes including periodic reviews by the Office for Students Ivia the QAAI. • Work to foster excellent relationships with the Art School's validating partners. Internal Control Seope of responsibility The Board of Tnjstees is ultimately responsible for the organisalion's system of intemal control and for reviewing its effectiveness. Such a system incorporates risk management and is designed lo manage the risk of failure lo achieve academic, operational and financial objectives and is designed to provide reasonable assurance against material misslalemenl or loss. covering such areas as educational standards, safeguarding, IT and dats protection, Health & Safely and Estates, HR matters and finance. The Board of Trustees has delegated the day-t(Fd8y responsibility to the Principal, as Accountable Offieer, for maintsining a sound system of intemal control that supports the achievement of the organisalion's policies, aims and objectives, whilst saleguarding the funds received and assets. The Principal is ￿sponSible for reporting lo the Board ofTruslees, through the Audit & Risk Committee, any material weaknesses or failures in intemal control. The system of intemal control The system of internal control is designed to manage risk lo a reasonable level and is based on an on-going process of identifying and priorilising the risks to the achievement of organisalion policies, aims and objectives, lo evaluate the likelihood of those risks being realised and the impact should they be realised. and to manage them efficiently. effectively and economically. City and Guilds of London Art School Limited 24

statement of corporats governance and internal control Year to 31 August 2021 The system of Intemal control Iconlinuedl The system of internal control has been in Pla￿ al the organisation forthe yearended 31 August 2021 and up to the date of approval of the annual report and financial ststements. Capacity to handle risk The Board of Trustees has reviewed the key risks lo which the organisation is exposed, together with the operating. financial and governance controls that have been implemented to mitigate those risks. The Board ol Trustees is of the view that an effective formal on-going process for identifying, evaluating and managing the Art School's significant risks has been in place for the year ended 31 August 2021 and up lo the dale of approval of the annual report and financial slalemenls. The rlsk and control framework The system of internal control is based on a framework of regular management information. administrative procedures including the segregation of duties, and a system of delegation and accountability. It includes.. • A comprehensive register of risks, updated and reviewed on a semi-annual basis * annual budgeting with an annual budget reviewed and agreed by the Board of Trustees • periodic reviews by the Board of Trustees of management accounts and financial reports which present and assess financial performance against budget and perfomiance indicators Review of effectiveness As the Accountable Officer, the Principal has responsibility for reviewing the effeth'veness of the system of internal Control. The Principal's review of the effectiveness of the system ot intemal control is informed by.. • the work of the external auditor5', • the work of the Head of Finance and other stsff who have responsibility for the mainlenan¢e and development of the internal control framework". • comments made by the organisation's financial statements and regularity auditors in their management letters and other reports,. and • advice provided by Trustees working through the Committees. There are no signrficant internal control weaknesses reported for the period. City and Guilds of London Art School Limited 25

Statement of corporate governance and internal control Year to 31 Augu$t 2021 Review of effecuveness Icontinuedl The senior management team regularly reviews key performance and risk indicators and considers possible control issue5 brought to their attention. The Audit and Risk Committee receives regular reports, which include recommendations for improvement, and conducts an annual review of the arrangements for internal control. The Board of Trustees agenda includes a regular item for consideration of risk and control and receives reports Ihereon from the Audit and Risk Committee. The emphasis is on obtsining the relevant degree of assurance and not merely reporting by exceptson. Based on above and reports by the Principal. the Board of Trustees is of the opinion that the organisation has an adequate and effective framework for governance. risk management and control lo manage the achievements of the organisation's objectives for the year ended 31 August 2021 and il has fulfilled ils stalulory responsibility for "the effective and efficient use of resource5, the solvency of the institution and the safeguarding of their assetS'. Regularity* proprietyj and compllance The organisation has considered ils responsibility lo notify the Office for Students of material irregularity. impropriety and non-compliance with Offiee for Students terms and conditions of funding. We confirm, on behalf of the organisalion, that after due enquiry and lo the best of ils knowledge, the Board of Trustees believes it is able to identify any material irregularity or improper use of funds by the organisalion, or material non-compliance with terms and conditions of funding under the organisation's financial regulations. As part of our consideration we have had due regard lo our financial regulations. If any instances are identified after the date of this slalemenl these will be notified to the Office for Students. Going Concern Details on Board's going concern assessment are sel out on pages 15-16. Approved by order of the Board of Twstees on 26 January 2022 and signed on its behall by.. Jamie Bill Chair Tamiko O'Brien Principal Cty and Guilds of London Art School Limited 26

Year to 31 August 2021

City and Guilds of London Art School

Limited

Opinion

We have audited the financial statements of City and Guilds of London Art School Limited 2021 which comprise the statement of financial activities (including the statement of changes in reserves), the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting applicable in the UK and Republic of (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the 2021 and of its income and expenditure, changes in reserves and cash flows for the year then ended;

• have been properly prepared in accordance with the financial reporting standards (FRS102);

• have been prepared in accordance with the requirements of the Companies Act 2006;

• where applicable, funds from whatever source administered by the provider for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation;

• Where applicable, funds provided by the OfS, UK Research and Innovation (including Research England), the Education and Skills Funding Agency and the Department for Education have been applied in accordance with the relevant terms and conditions; and

• the requirements of the

We have nothing to report in respect of the following matter in relation to which the OfS requires us to report to you if, in our opinion:

• e, as disclosed in note 1 to these Financial

• Statements has been materially misstated.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit

Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

City and Guilds of London Art School Limited 27

Independent auditor's report Year to 31 August 2021 Conclusions relating to going concern In auditing the financial statements, we h8ve concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not idenlffjied any material uncertainties relating to events or conditions that, individually or collectively. may cast significant doubl on the charitable company's ability lo continue as a going concern for a period of at least ￿e1ve months from when the financial slalements are authorised for issue. Our responsibilities and the responsibilities ol the trustees with respect to going concem are described in the relevant sections of this report. Other infomiatlon The trustees are responsible for the other infomiation. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report Ihereon. Our opinion on the financial statements does not cover the other Information and, except lo the exlenl otherwise explicitly staled in our report, we do not express any form of assurance conclusion Ihereon. In eonnection with our audit of the financial slatemenls, our responsibility is lo read the other information and, in doing $0, consider whether the other information is materially inconsistent W1th the financial ststements or our knowledge obtained in the audit or otherwise appears lo be materially misstsled. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a materi81 misslatemenl in the financial statements or a material misstatement of the other information. If. based on the work we have performed, we conclude that there is a material misstalemenl of this other information, we are ￿qUired lo report that fact. We have nothing to reF)Ort in this regard. Opinions on other matters prescrlbed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audit.. • the information given in the twslees, report for the financial year for which the financial statements are prepared is consistent with the financial statements., and + the trustees, report has been prepared in accordance with applicable legal requirements. Matters on whlch we are required to report by exception In the light of the knowledge and understanding of the charitable company and ils environment obtained in the course of the audit. we have not identified material misststements in the Iruslees, report. We have nothing to report in respect of the following matters in relation lo which the Companies Act 2006 requires us to report to you if, in our opinion. City and Guilds of London Art School Limited 28

Independent auditor's report Yearto 31 August 2021 Matters on which we are required to report by exception Iconlinuedl adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us.. or * the financial statements are not in agreement with the accounting records and returns.. or certain disclosures of tru51ees' remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit.. or + the trustees were not entitled to prepare the financial ststements in accordance with the small companies regime and take advantsge of the small companies, exemptions in preparing the trustees, report and from the ￿qUirement lo prepare a strategic report. Responglbllitles of trustees As explained more fully in the trustees, responsibilities statement, the Iruslees are responsible for the preparation of the financial statements and for being satisfied that they give 8 true and fair view, and for such internal control as the Iruslees determine is necessary to enable the preparation of financial slalemenls that are free from material misststemenl. whether due lo fraud or error. In preparing the financial statements, the trustees are responsible forassessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but lo do so. Auditor's responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial ststemenls as a whole are free from material misslalement, whether due to fraud or error, and to issue an audiloff s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in 8ecordance with ISAS IUKI will always detect a material misstatement when il exists. Misslalements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users tsken on the basis of these financial slalemenl$. Irregularities, including fraud, are instances of non-complian￿ with laws and regulations. We design procedures in line with our responsibilrties, outlined above, to detect materia misstatements in respect of irregularities, ineluding fraud. The extent to which our prO￿dureS are eapable of delecling ifregul8rilies, including fraud, is detailed below. City and Guilds of London Art S¢hool Limited 29

Independent auditor's report Yearto 31 August 2021 Auditor's responsibilities for the audÈt of the financlal stalements Iconlinuedl Our approach lo Identifying and assessing the risks of material misslalemenl in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competen￿, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations., we obtained an understanding of the leg21 and regulatory frameworks that are applicable to the charitable company and determined that the most significant frameworks which are directly relevant lo specifi¢ assertions in the financial statements are those that relate to the reporting framework Islatemenl of Recommended Practice.. Accounting and Reporting by Charities prepanng their accounts in accordance with the Finanaal Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Charities Act 20111, Companies Act 2006, those that relate lo data prolecb'on (General Data Protection Regulalionl. certain conditions of Ofs registration including compliance with the Ofs, latest Accounts Direction,. and identified laws and regulations were communicated within the audit team regularly and the team remained alert lo instances of non-compliance throughout the audit. We assessed the susceptibility of the charitable company's financial statements lo material misststemenl, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as to their knowledge of actual, suspected and alleged fraud," and considering the intem81 conlroSs in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. perfom)ed analytical procedures lo identify any unusual or unexpected relationships., lesled joumal entries lo identify unusual transa¢lions', assessed whether judgements and assumptions made in determining the accounting estimates were indicative of ptstenlial bias., used da18 analylics to investigate the rationale behind any significant or unusual transactions., tested authorisation controls on expenditure items, ensuring all expenditure was approved in line with the charitable company's financial procedures,. and performed substantive testing over fee income to 9ain assurance that the income recognised was materially complete. City and Guilds of London Art School Limited 30

Independent auditorfs report Yearto 31 August2021 Auditor's responsibilities for the audit of the financial statements (continued} In response lo the risk of irregularities and non<omplianee with laws and regulations, we designed procedures which included, but were not limited to.. agreeing financial statement disclosures to underlying supporting documenlalion,. reading the minutes of meeb'ngs of those charged with governance,. and enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely il is that we would become aware of non<ompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondentr, if any. Material misstatements that arise due lo fraud can be harder lo delect than those that arise from emr as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial slalemenls is located on the Financial Reporting Council's website at W￿.frC.Org.UklSuditorSrespDns1b1lltle$. This description fomis part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body, in accordan¢e with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate to the charitable company's members those matters we are required to stale lo them in an audiloff s report and for no other purpose. To the fullest extent permitted by law, we do not ac￿pt or assume responsibility lo anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. 6LIZZo4b Lty Hugh Swainson. Senior Stslulory Auditor For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL 31 March 2022 City and Guilds of London Art School Limited 31

Statsment of financial activities lincluding income and expenditure statement, which includes statement of changes in reserves) Year to 31 August 2021 Y8ar to Yearto 31 August 31 August 2021 2020 Total Total funds funds General RestriGted End0￿ent fund funds Notes Income and expendttu Income ond endov•Tnents from.. Chanlable activit*S Art School fees Donations and legacies Investment income & Interest r8cewad Other trading actniities Other Total Income 2,119,330 224,213 62.154 2,119,330 1,934.140 501.795 828.186 81,832 20.035 1,791 89,774 85,695 2,792.731 2.869,827 277.582 19.678 89.774 2,495.471 297,280 Exp8ndlture on: Charitable aGtiwitEs Costs ofop8r8ting IheArt School Teaching staff antl personnel Suppo>rt costs Premise$ Promotions an(J publKty Bursaiies. scholarship$ and pr¢e$ Total expondlture 1.101,557 947.356 408.934 87,e67 25.QOO 1,126,557 958.493 1.449 949.150 897.800 408,934 421,993 87,067 53,975 9.890 366,362 285,161 36.339 2.937,060 2,617,422 345 355.462 355.807 2.544.914 Net {expendl￿re) Income bèfor• galn8 on Investrnonts and transfe 149,4421 IS8,5481 136.3391 1144.3291 252.405 Transfer Be￿￿n Funds 37,779 137.7791 Net gains on invesbnenls 10 28.608 151.292 177,900 10.229 118t lexpendlturel I Income and net movemont In fund8 111.6631 131,9401 77,174 33,571 2,634 Statement of change8 In reserve8 Net lexpenditurell in¢tyne and net movemtnt In funds 111,6631 131.9401 77,174 33,S71 262.634 Reconciliation of Funds Fund balances brought forward on 1 September 2020 32,165 460,705 1.￿9.491 1,562,361 1,299,727 Fund balanc89 carrled foNard at 31 August 2021 20.502 428,765 1.146.665 1,596,932 1.562.361 All of the charitsble company's a¢livilie$ are derived from continuing operations during the above financi81 periods. All recognised gains and lo$ses are included in the above statement of financial aclivilies.

Balance sheet 31 August 2021 2021 2021 2020 2020 Notes Flxad assèts Tangible assets Investments 189.986 1,609,826 1,799,812 216.492 1,398.489 1,614.981 10 Curr¢nt a¥¥ets Stocks Debtors Cash at bank and in h8nd 24,472 254,407 924.255 1,203,134 22,391 249.676 678,655 950,722 12 Credltors.. amounts falling due within one year Net current Ilabllitias 13 {1,226,4581 11,003,342) 123,3241 152,6201 Creditors.. amounts falling due after one year 14 1180,5561 Total n•t assèts 1,595,932 1.562,361 Rèpr8sented by: The Funds of th• Charlty Endowment funds Incorne fijnds.. Restricted funds Unrestricted fun¢Js'. General fund 1S 1.146,665 1,069,491 428,785 460,705 20,502 1,595,932 32.165 1.562.361 Approved by the Board on 26 January 2022 and si on ils behalf by.. Jamie Bill Chair Tamiko O'Brien Pnncipal City and Guilds of London Art School Limited". A company limited by guarantee, Company Registration No. 07817519 (England and Wales) City and Guilds of London Art School Limited 33

Statement of cash flows 31 August 2021

Notes	Year to 31 August 2021 £	Year to 31 August 2020 £
Net cash flows from operating activities A Net cash flows from investing activities B Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of theyear C	217,795 76,880	525,376 (134,440)
	294,675 739,086	390,936 348,150
	1,033,761	739,086

Notes to the statement of cash flows for the year to 31 August 2021

A Reconciliation of net income (expenditure) to net cash provided by operating activities

activities
	2021 £	2020 £
Net (expenditure) income Depreciation charge Dividends, interest and rents from investments (Increase) in stocks (Increase) in debtors Increase in creditors Net cashprovided by operating activities	(144,329) 48,891 (81,832) (1,794) (2,080) (4,731) 403,671	252,405 53,700 (20,035) (2,588) (3,717) (56,503) 302,114
	217,795	525,376

B Cash flows from investing activities:

Cash flows from investing activities:
	2021 £	2020 £
Dividends and interest from investments Purchase of tangible fixed assets Payments to acquire investments Receipts from the disposal of investments Net cash used in investing activities	81,832 (22,285) (508,635) 525,968	20,035 (8,022) (234,195) 87,742
	76,880	(134,440)

C Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
	31 August 2021 £	31 August 2020 £
Cash at bank and in hand Cash held by investment managers	924,255 109,506	678,655 60,431
	1,033,761	739,086

City and Guilds of London Art School Limited 34

Principal accounting policies 31 August 2021 Basis of accountlng The financial slalemenls have been prepared under the hislori¢al ¢o$t Convention with items initially recognised at cost or transaction value unless otherwise slated in the relevant accounting policy notelsl. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charib'es preparing their accounts in accordance with the Financial Reporbng Standard applicable in the UK and Republie of Ireland IFRS 1021 {'Charilies FRS 102 SORP'I, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. the Companies Act 2006 and the Office for Students, Accounts Direction 2020121. The Charity constitutes a public benefit entity as defined by FRS 102. The accounts are presented in sterling and are rounded to the nearest pound. Critical accounting estlmates and areas of Judgement Preparation of the accounts requires the Trustees and management to make significant judgements and eslimales. The items in the accounts where these judgements and eslimales have been made include.. the useful e¢onomic lives attributed lo tangible fixed assets used to determine the annual depreciation charge", • the provision against doubttul and bad debts in respect to Art School fees., and ests'males in respect of accrued expenditure. Golng concern The Trustees have assessed whether the use of the going concem assumption is appropriate in preparing these financial stalemenls. The Trustees have made this assessment In respect of a period of one year from the date of approval of these financial stalemenls. The Art School held negative free reserves of £169.484 as al 31 August 2021 12020 negative free reserves of £184,327). The Board intends lo achieve, as circumstan￿S pemiil, an increase in the free reserves from present levels in order to provide liquidity to meet any future temPo￿ry shortfalls in income and to provide adequate working capital. The Art School now holds expendable endowments lolalling £966,851 12020.. £907,8591 These expendable endowments are available lo provide liquidity to the Art School if needed. In light of the above, the Trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Art School to continue as a going concern. City and Guilds of London Art School Limited 35

Principal accounting policies 31 August 2021 Income Income is recognised in the period in which the Art School is entitled lo receipt and the amount can be measured with reasonable certainly. Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable include contributions received from restricted funds for scholarships, bursaries and other grants. Donations are recognised when received and are only accrued where the Art School can demonslrale entitlement lo ￿ceIpt and the amount is measurable and receipt is probable. Investment income comprises dividends and interest receivable. Dividends are recognised once the dividend has been declared and notification has been received ofthe dividend due. Interest payable on investment assets is recognised on an accruals basis. Interest on funds held on deposit Is included when receivable and the amount can be measured reliably by the Charity,. this is normally upon nolificalion of the interest paid or payable by the bank. Expendlturo Expenditure is included in the slalemenl of financial activities when incurred and includes attributsble VAT which cannot be recovered. Expenditure comprises the following.. The costs of charitable aclivilie5 involving expenditure on the Art School's primary Charitable purpose, i.e. the operation of the Art School. In addition bursaries, scholarships and prizes are given lo students. The costs of operating the Art School include the costs of premises. teaching staff and personnel, support costs including governance costs, and costs of promoting 8nd publicising the Art School and its activities. Included within support costs are 50Dk of the fees incurred in managing the School's investment portfolio. The remaining 50 % of investment managerfs fees are debited to the v8lue of eash held by investment manager on the balance sheet Inote 101 and also deducted from unrealised investment gains. Bursaries, scholarships and prizes payable by the reslricled funds are included in the statement of financial activities when approved, and when sel off against the fees to which they relate. Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity lo make a payment lo a third party, il is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure includes any attributsble VAT which cannot be recovered. All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. City and Guilds of London Art School Lim(ted 36

Principal accounting policies 31 August 2021 Tangible fixed assets All assets costing MO￿ than £250 and with an expecled useful life exceeding one year are capitslised. Assets are included in these financial statements at cost at the dale of acquisition together with the cost of additions and improvements lo dale. Depreciation is provided at the following annual rates in order to write off each asset over ils estimated useful life.. • Fixtures and fittings 10¥0 on cost Tools and equipment 200/y on cost • Computer and hi-lech equipment 33¥0 on cost • Website 20¥0 011 cost Debtors Debtors are recognised at the settlement amount, less any provision for non-recoverability. Prepayments are valued al the amount prepaid. Cash at bank and in hand Cash al bank and in hand represenls such accounts and instruments that are available on demand or have a maturity of less than three months from the dale of acquisition. Cr¢dltors Creditors are recognised when there is an obligation al the balance sheet dale as a result of a past event. il is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlernenl can be estimated reliably. Creditors are recognised at the amount the Charity anticipates il will pay to settle the debt. Invgstments Investments are included on the balance sheet al their market value al the end of the financial period. Realised and unrealised gains and losses are credited, or debited, to the statement of financial activities in the year in which they arise. Financial instruments The Art School only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the Art School antJ their measurement basi5 are as follows.. Financial assets - trade and other debtors are basi¢ financial instruments and are debt instruments measured al amortised cost as detailed in note 12. Prepayments are not financial instruments. Cash at bank- is classified as a basic financial instrument and is measured al face value. City and Guilds of London Art Sch¢xJl Limited 37

Principal accounting policies 31 August 2021 Financial Instrufflents Icontinuedl Financial liabilities trade creditors, accruals, the loan and other ¢￿ditorS are financial instruments, and are measured al amortised cost as detailed In note 13. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed lo be a financial liability, as the c8sh selllement has already tsken place and there is an obligation lo deliver seNices rather than cash or another financial instrument. Stocks Slo¢ks, comprising artists, materials for resale, are staled at cost. Fund accounting The general fund comprises those monies which may be used towards meeting the charitable objectives of the Art School at the discretion of the Board. The restricted funds are monies raised for, and their use restricted to. a specific purpose, or donations subiect to conditions imposed by the donor. The endowment funds comprise both permanent and expendable endowments. Permanent endowments are monies which rnust be held as capita1 indefinitely. The income therefrom can be used for general purposes and is credited directly to unrestricted funds. Expendable endowments are monies which were given to the Art School as capital bul there is no restriction on them being converted into expendable income. Leased assets Rentsls applicable lo operating leases, where substantially all of the benefits and risks of ownership remain with the lessor, are charged on a slraight-line basis over the lease term. Pension ¢osts Contributions to employees, personal pension plans are debited lo the statement of financial activities in the year in which they are payable to the relevant plans. City and Guikls of London Art School Limited 38

Notes to the financial statements 31 August 2021 1 Grant and fee Income Year to 31 August 2021 Year to 31 Augu31 2020 Fee income for laught awards Total grant and fee incomè 2,119,330 2,119,330 1.934,140 1,934,140 The School had no other type$ of grant and fee income as detailed in clause 23 of the Office for Students Accounts Direction. 2 Investment Income and interest recgivable Restricted and General endowment fund funds Year to 31 August 2021 total Income from UK investmènts Unit trusts and Common investment fvnds Bank interest 62,075 79 62,154 19,678 81,753 79 81,832 19,678 Restricted and General erjdowment fund funds Yearto 31 August 2020 total lftcome from UK investmènts Unit Imsls and common inveslment funds Bank Int&￿st 13,402 929 14.337 5.687 17 5, 704 19.089 946 20,035 3 Promotlon and publiclty Reslrictad 8nd General endowment fund funds Y•ar to 31 August 2021 total Marketing 87,067 87,067 87,067 87,067 Restricted Yearlo 31 August 2020 total General endowment fund funds Mart(eting 53,975 53,975 53,975 53,975 City and Guilds of London Art School Limited 39

Notes to the financial statements 31 August 2021 4 Support costs Restricted and General endowmenl fund funds Year to 31 August 2021 total Staff costs Equipment. IT and depreciation Sludenl materials and project expenses Other support cos¢ G(>vernance costs.. Legal and professional fees Statutory audit service8 Non statutory audit services 515.766 157,010 82,204 135.522 25.OCKJ 540,766 157,010 82,204 137,316 1.794 16.492 14.[￿6 1,296 922.356 16,492 14,066 1,296 949,150 26,794 Restricled and Genernl endowmenl fund lunds Yearto 31 August 202Q total staff wsts Equipment, IT8nd dèpreciat￿￿ stutlent materials 8ndproie¢l &xp8ns8S Olhersupport costs Governartce costs.. Legal and priifessK)nal lees StAtutory audit sery1￿s Non slalulory audit services 514,064 149,035 73,571 730,314 514,064 149,035 73.571 132.902 2,588 13,221 13.800 1,206 895,211 13.221 73,800 1.206 897,799 2,588 5 Net exponditure This is slated after charging.. ReStr￿￿d Year to and 31 August General endowment 2021 fund funds totsl Staff costs Inole 61 Audilorfs remuneration.. Statutory audit services Non-ststutory audit services Depreciation and loss on disposals Operating lease rentals Land and buildings Equipment Bursaries. scholarships and prizes 1,642,323 25,0 1.667,323 14,066 1,296 48,891 14,066 1,296 48,891 293,429 28,659 293,429 28,659 365,352 365,352 City and Guilds of London Art School Limited 40

Notes to the financial statements 31 August 2021 5 Net expenditure Icontinuedl This is staled after charging.. Restricted Yeèr to and 31 August General endowment 2020 fund fiJnd$ lotal S18ff costs (note 6) Auditorfs ￿m￿neration.. Statutory audit seryices . Non-slalutQry oudit seNices Dèpreciation and loss on dispos81s Operating le8$& rentals Lènd and buildings Equipment BU￿aries, scholarshAPS 8nd prizès 7,478,698 S0,0￿ 1,468,698 13,800 1,206 13,800 1,206 53.700 233,054 26.563 53, 700 233,054 26,563 285, 767 285. 161 Bursaries were paid to 57 individuals {2020- 631 during the year. 6 Staff costs and Trusteos, remuneratlon Year to 31 August 2021 Year to 31 August 2020 Staff cost5 during the year were as follows.. Salaries Social security costs Pension 1,276,908 99.228 S9,630 1,435,766 215.944 15,613 1,667.323 7,154.929 83.100 53,209 1,291.238 151,528 25,933 1.468.699 Self-ernployed lulors Other staff costs staff costs analysed by function were as follows". Year to 31 August 2021 Year lo 31 Augu51 2020 Teaching Support, administration and m8na9ement 1.126.557 540,766 1,667,323 954,634 514,C64 1,468,698 The average number of employees, all of whoTn are engaged in the operation of the Art School, analysed by function and on a full lime equivalent basis was.. Year to 31 August 2021 Year lo 31 Augu51 2020 Teaching Support, administration and management 27 23 39 The average number of employees. all of whom are engaged in the operation of the Art School, was 8312020 - 711 for the year ended 31 August 2021. Many of these are employed on a part-time basis. Cily and Guilds of London Art School Limited 41

Notes to the financial statements 31 August 2021 6 Staff costs and Trustees, remuneration Iconlinuedl The Principal's total remuneration in the year ended 31 August 2021 was as follows.. 2021 2020 Basic salary Pension contribution 71.400 3.570 74,970 70.933 3,547 74,480 The Board of Tru51ees Remuneration Committee chaired by the Chair of the Board of Trustees considers the case for annual pay increases. The Principal is line managed by the Chair of the Board and their Salary, together with all other salaries. is considered by the Remuneration Committee with proposals made to the full Board. The Chair of Students {Sludent Trustee) is a member of the Remuneration Committee while the Principal and Head of Finance now attend lo provide information. The Company Secretary 15 the clerk to the Committee. The Principal, Head of Finance and Company Secretary are not rnembers of the Remuneration Committee, and do not attend when their own salaries are under consideration. The School has given regard to the Higher Edueation Senior Staff Remuneration Code published by the Committee of Universty Chairs. As al 31 August 2021, the Accountable Officer's basic sa5ary is 2.37 times12020- 2.37 times) the median pay of staff, where the median pay is calculated on a full lime equivalent basis for als staff contracted on an annual salary basis. There were no performance related payments made to the accountable officer in 2020121. No Trustees received any remuneration or other emoluments in respect of their services as a member of the Board during the year12020 none). In addition lo the Accountable Officer, there was one further Trustee who was employed by the School part-time in the year ended 31 August 2021 and received gross pay of £21,34612020- £18,343) and employer's pension contributions of £1,067 12020 £9171 in respect of that employment. No expènses were reimbursed to Trustees during the year12020 - none). The numbers of employees eaming greater than £60,000 during the year were as follows". 2021 No. 2020 No. £65,LN)1- £70,000 £70,CMJ1 - £75,000 Pension contributions in respect of these employees amounted to £3.57012020- £3,547). The aggregate remuneration, including employer's pension contributions paid lo key management personnel and employer's national insurance, was £479,39412020- £444,475). Key management personnel during the year consisted of the Principal, seven Heads of Department, Head of Finance and the Head of Academic Affairs and Quality. City and Guilds of London Art School Limrted 42

Notes to the financial ststsments 31 August 2021 6 Staff costs and Trustees, remuneration Icontinuedl The Art School has purchased insurance to protect itself from any loss arising from the neglect or defaults of its Trustees, employees and agents and to indemnify the Trustees or other officers against the consequences of any neglect or default on their part. The insurance premium provided cover of up lo a maximum of £2 million. 7 Comparative infomatlon Analysis of income and expenditure in the year ended 31 August 2020 betsveen reslricled, endowment and unrestricted funds.. Year lo 31 August 2020 Total fund$ G¢n8ral fund ReStr￿ted Endowment fund5 runds Notes Income antl expenditu Into￿ and endo%4ments from.. Charitable activities . Art School fees Donations and legac1es Inve5knent 1ncome other trading activitEs Other Total income 1.934,140 90.334 14.331 1,791 85.695 2.126.291 1.934,140 828,166 20.035 1,791 85.695 2,869,827 484,347 5.704 253,485 490,051 253,485 ExpenditUTe on.. Charitable #¢tivilie5 Co$ts of operatlng the Art School Te3Ghing slsff and personnel . Support ¢osts Premises Prornotions and publicity Butsaries, scholarships and prizes Total expEndilure 904.634 895.212 351,018 53,975 3.859 50.CrfJO 2,008 958,493 897,800 421.993 53.975 285.161 2,617,422 70.975 280,663 356,077 4.498 56,506 2.204,839 Net leypenditurel In￿Me before gain8 on Investments and tmnsfers Nel gains on Investments 178,5481 133,974 1,C63 196.979 9.166 252.405 10.229 10 Net lexpendilurel l income and net movement in funds 178.5481 135.037 206.145 282,634 Staternent of change$ in Teserve5 Net l?xpenditur81 l inc¢me and net movement in fund8 178,5481 135.037 2e6,145 262,834 Recon¢lllatKn of Fvnd balance$ brought forwartl on 1 September 2019 110,713 325.668 e63.346 1.299.727 Fund balan￿$ rArnad foNard al 31 August 2020 32,165 460,705 1.069,491 1,562,361 8 Taxation City and Guilds of London Art School Limited is a registered charity and therefore is not liable to income lax or corporation lax on income derived from its charitable activities, as Il falls within the various exemptions available lo registered charitie5. City and Guilds of London Art School Limited 43

Notes to the financial ststements 31 August 2021 9 TangSble flxed assets Flxtures, rittlngs, tools, computer equipment website Cost At 1 September 2020 Additsons At 31 August 2021 784,350 22,385 786,735 Depreciation Al 1 Septernber 2020 Charge for year At 31 August 2021 547,858 48,891 598,749 Ngt book valu•s At 31 August 2021 Al I September 2020 189,986 216,492 10 Investments 2021 2020 Listed investments and eash Opening market value at 1 September Additions Disposals {including realised losses of £29,559) Capitalised investment managerfs fees Unreallsed investmenl gains 1.338.059 1,178.788 508,637 234,195 1496,5101 1102.1581 1,794 2.588 148.340 24.645 1,SOO,320 1,338,058 109.506 60.431 1,609,826 1,398,489 Cash held by investment manager Total market v81ue of investments at 31 August Cost of listed investments- 31 August 830.155 1,298,579 Listed investments and cash held at 31 August 2021 comprised the following.. 2021 2020 Fixed interest Multi Asset Fund 496.509 841.549 1,338,058 60,431 1,398,489 1,500,320 1,500,320 109,506 1.609,826 Cash held by investrnent managers All investments were dealt in on a recognised stock exchange. City and Guilds of London Art School Limited 44

Notes to the financial statements 31 August 2021 10 Invgstments Icontinuedl Al 31 August 2021, the following individual holdings were deemed material in the light of the market value of the portfolios.. Market value %of portfolS0 Cazenove Charity Mutti Asset Fund S Units GBP Accumulation Cazenove Charity Mutti Asset Fund S Units GBP Distribution SUTL Cazenove Charity Responsible 16.0 40.7 29.9 258,1CK) 654,482 481,111 Al 31 August 2020, the following individual holdings were deemed material in the light of the market valu8 of the portfolios.. Market valu• %of portfollo Cazenove Charity Multi Asset Fund S Units GBP Accurnulalion Cazenove Charity Multi Asset Fund S Units GBP Distribution SUTL Cazenove Charity Responsible St James, Place Global Equity Fund- Acc St James. Pl8¢e Strategic Managed Fund- Acc St James, Place Man8ged Growth Fund- A¢c St James. Place Balanced Manageij Fund- Acc St James, Place Corporate 8ond- Acc 16.7 27.6 18.7 223,3[ 369.414 250,828 112.781 90,860 79,017 85,161 84,196 11 Stocks 2021 2020 Materials for resale 24,472 22.391 12 Debtors 2021 2020 Student fees outstanding Other debtors City and Guilds Art School Property Trust Prepayments and accnJed income 94,081 310 70.837 300 2,469 176,070 249.676 160,016 254,407 13 Creditors: amounts falling due within one year 2021 2020 Sltjdenl fees In advance Trade creditors Taxation and socjal security Other creditors CBIL Loan Accruals and other deferred income City & Guilds Art School Property Trust 925,640 59,298 26,556 13,742 41.667 81.656 77.899 1,226,458 875,400 15.738 20,864 28,811 62,729 1,CK13,342 City and Guilds of London Art School Limited 45

Notes to the financial ststements 31 August 2021 14 Creditors: amounts falling due after one year 2021 2020 CBIL Loan- payable befv￿en ￿v0 and five years 180.S56 180,556 The interest rate attached to the loan is based on a floating rate, and will be less than 2.9905010 per annum. 15 Endowment funds The capital funds of the Art School include permanent endowrnents and expendable endowments. The permanent endowments are compnsed of monies which must be retained as Capital indefinitely. The expendable endowments are comprised of monies whi¢h were given lo the Art School as capitsl but there is no restriction on them being converted into expendable income. At1 September 2020 Gains, losses and transfers At31 August 2021 Income Expenditure Pemianent endowments Edward Chadwyck-Healey Bequest and Memori81 Appeal Fund 161,632 161,632 {2191 12191 18.401 18,401 179,814 179.814 Expendable endowmgnts Margaret Ballardie bequest Idun Ravndal Mernorial Legacy Other endowments 461,509 117.5001 82.087 526.096 252,7L 193,644 907,859 120,2791 {36.1201 {72,8991 28,781 22.043 132,891 261,188 179,567 966,851 Total endowm8nts I,CkS9.491 {74,1181 151.292 1.146,665 The Income from the endowment funds is included in unrestricted gener81 funds. Reflected in the above is a transfer of operating cost5 to endowment funds, which was approved by the Board. The Idun Ravndal Memorial Legacy was received in 2019120 and the School plans to expend this over 25 years in line with the donor's wishes. Since no proportionate transfer of expenditure lo the Fund or to the Margaret Ballardie bequest was made in 2019120 balancing provision have been made in 2020121. City and Guilds of London Art School Limited 46

Notes to the financial statements 31 August 2021 15 Endowment funds Icontinuedl Atl Septemb8r 2019 Gains, losses and transfers At31 August 2Q20 Income Expenditu PemJ8ngnt endowments Edwanl Ch8dwyck-Healey 8equest and Mernorièl Appeal Fund 157.975 157,915 (485) (485) 4,202 4.202 761,632 161,632 Expendable endowments Margaret 8alIa￿le bequest Idun Ravndal Memonal Legacy Olher8ndowmenls 462,995 (1,486) 461,5Q9 253.485 (779) (55.242) 252.7Q6 193,644 242,436 6,450 Total 8ndowmenls 863,346 253,485 (56.506) 9, 166 1,069,491 16 Restrlcted funds The income funds of the Art School include re5tn.cted funds comprising the following unexpended balances of donations and grants held on trusts lo be applied for specific purpose5'. Realisedl unlealised 08ins on Inve51 -rnenls B8lanc ol•n ¥t31 Awjugt 2021 S8Ptember 2020 meDts [K￿atIOnS ExpenOitui& Annual Butsai$ FuTh1 S8vI Bursary Fund Charfes NobletPeter ChaK8 SchJarsh¥& F Rodney Bum RA scho￿rship Fund Simon Blrch Memorial 8utsary F￿d Edith and Stephen Bumett Memor￿1 Fund Dav￿ ￿￿1?[41e M8m¢rial Award Fund Idun Rav￿al Tia¥el Awaro OiheF PTrZe artd spethal funds ks & Paper CM$8rv8bon Propct ReEo¥ery Appeal 287,982 1349.1961 26,1Q7 44.196 27.890 4S,831 80.707 3¢,811 23,104 37.*5 6J,W9 3,246 2,048 3,366 S.931 4.389 2.769 4.551 8.020 3.548 34.572 1.826 17.H1 112.408 20.OOD 315 5.065 162 1.54 42$ 4.144 219 2.091 4283 41,734 2,055 24, 112,405 2D,QOO 9,600 16,1221 4eo,70S 19.878 2TI,582 1355.8071 26.SD8 428,766 City and Guilds of London Art School Limited 47

Notes to the financial ststements 31 August 2021 16 Restrlcted funds Iconlinuedl The specific purposes for which the funds are to be applied are given by their descriptions in the table above. The main purposes are the awarding of scholarships, bursaries 8nd prizes. Reafis8Y nreah5ed gaNps o Invest -monts Ba18n¢o Bal￿Ge frcrn ve81- manl$ Septemtw 2019 Awt 2020 0￿8￿1￿n& Expendrture AnftualSur&ariesFuMI Saul 8uwryFvn Chartes Nobl&Feler Ch&nce S¢holarship F R(￿neY6Urn RA Schola￿￿trpFV￿ s￿0￿ 8irch Me￿￿1￿8￿￿aryFvn6 Ethlh 8nd sieph8n SUn￿tt￿m0￿81 IfO.T46 35.599 22.466 36.9t5 65,Ot4 262,229 1266.654) 10fj,321 38.8ti 23. 104 37.965 66.909 945 596 176 169J 1.725 1152J 522 3,4 35.569 1,959 13,9 92 944 52 370 Dav￿￿￿1{￿r#i8 MemorialAwarfFund Idvn Ravndal Tra¥elAw¥ Otherpytt 8ndspeGiaifunds BoDks & Paper Cortsarva￿On Project RE￿¥*ryAppee 176 io 34.572 14.8T5 t87.243 20,C (11,823J 174,835) tf,441 t12.408 325.668 S703 484.341 1356.078) 1.064 469.705 17 Analysis of net assets between funds General lund Restricted End¢wFnent funds funds Totsl 2021 Fund balances at 31 August 2021 are represented by: Tangible fixed assets Investrnents Current assets Creditors.. amounts falling due within one year Creditors.. amounts falling due after one year Total net assets 189,986 34,396 1.203,134 189,986 1,609,826 1,203.134 428,765 1,146.665 {1,226,4581 1180,5561 20,502 11,226.4581 1180,5561 1,595,932 428,765 1.146.665 Gener81 fund Restricted Endowment fvnds funds Total 2020 Fund bal8nGes at 31 August 2020 a￿ rep￿sented by.. Tangible fixèd assets Investments Guff&nl assets Credi101s.' 8moiints falling due within orle ye8r rotalnet assets 216,492 216.492 1,398,48 950.722 381,671 79,033 1,016,818 52,674 879.015 (1,003.3421 32,165 {1.003.3421 1.562.361 460,704 1,069.492 City and Guilds of London Art School Limited 48

Notes to the financial statements 31 August 2021 17 Analysis of net assets between funds Icontinuedl The total unrealised gains as al 31 August 2020 con5blute movement on revaluation and are as follows.. 2021 2020 Unrealised galns Included above On Ilsled investments as at 31 August 148,340 191,428 Reconciliation of movèments In unrealised gain8 Unrealised gains at 1 September 2020 Unrealised gains on listed investments arising in the year Total unrealised gains at 31 August 2021 191,426 148,340 339.766 166,781 24.645 191,426 18 Liablllty of members The Charity is consliluted as a company limited by guarantee. In the event of the Art School being wound up members are required to contn'bute an amount not exceeding £1 each. 19 Leasing commitments Operating leases At 31 August 2021 the Art School had the following commilrnenls under non-cancellable operating leases-. Land and buildirrfJs 2021 2020 Equipment 2021 2020 Operating leases ¥vhich expirè.. Within one year Befv¢een two and fwe years Over five years 293,429 661,120 1,025,351 1.979,900 289.929 850,498 1,005.247 2,145,674 28,6S9 56.704 28,659 e5.363 85,363 114.022 The land and buildings operating leases relate to the sile at Kenninglon Park Road and the sub-lease of premises in the Old Vauxhall Telephone Exehange in nearby Kennings Vvay from the Property Trust for the period up to the first break clause_ 20 Related party transactions Until his resignation from the Art School Board in October 2020, the Property Trust had one Trustee18. Finucanel in common with the Art School. The Art Sehool charged a management fee of £43,796 12020 - £41,077) to the Propety Trust during the year. The Property Trust Charged the Art School rent, including VAT, of £293,30712020- £233,054) and also charged a management fee of £14,37612020 - £6,975). No grants were received from the Property Trust In respect of the year12020 - £nill. An amount of £0 was received from Trustees12020.' £180 from one Trustee as a Summer School paymentl. City and Guilds of London Art School Limited 49

Notes to the financial statsments 31 August 2021 21 Post balance sheet events There were no post balan￿ sheet events to consider. City and Guilds of London Art School Limited SO