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2022-08-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS 31 AUGUST 2022

COMPANY LIMITED BY GUARANTEE REGISTRATION NUMBER 07817519 (ENGLAND AND WALES)

CHARITY REGISTRATION NUMBER

1144708

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Contents
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Reports
Reference and administrative information
1
Trustees’ report
3
Statement of corporate governance
and internal control
18
Independent auditor’s report 27
Financial statements
Statement of financial activities 32
Balance sheet 33
Statement of cash flows 34
Principal accounting policies 35
Notes to the financial statements
39

Reference and administrative information

Trustees

Jamie Bill (Chair) Andrew Allen KC Laurence Benson (Vice-Chair) Nina Bilbey (resigned 30/09/22) Dr Virginia Brooke Dr Caroline Campbell Edward Campbell-Johnston (appointed 26/10/22) Gabriel Gbadamosi (resigned 31/12 21) Martin Hatfull James Kelly Tabish Khan (appointed 26/10/22) Tamiko O’Brien (resigned 31/08/2022) Michael Osbaldeston Dr Michael Paraskos (appointed 01/10/2022) Prof Jane Rapley OBE Theo Ritzinger (appointed 01/10/22) Tina Roe (appointed 01/10/21; resigned 30/09/22) Prof Elizabeth Rouse OBE Dr Lois Rowe (appointed 01/09/2022) Alexander Stitt Helen Sunderland-Cohen (appointed 26/10/22) Benjamin Tucker

Company Secr etary

Harriet Lam

Senior Management Team

Principal Director of Resources and Operations Head of Finance Head of Historic Carving Head of Art Histories Head of Fine Art Head of Foundation Head of Conservation Head of Access to Learning Head of Development and External Relations

Dr Lois Rowe (appointed 01/09/2022) Nick Rampley Shahzad Asghar Heather Newton Tom Groves Robin Mason Keith Price Dr Marina Sokhan Teresita Dennis Hannah Travers

City and Guilds of London Art School Limited

1

Reference and administrative information

Registered and principal office 124 Kennington Park Road
London
SE11 4DJ
Telephone 020 7735 2306
Website www.cityandguildsartschool.ac.uk
Email office@cityandguildsartschool.ac.uk
Company registration number 07817519 (England and Wales)
Charity registration number 1144708
UKPRN 10039082
Bankers Barclays Bank plc
Southwark Branch
29 Borough High Street
London
SE1 1LY
Investment Managers Cazenove Capital Management Limited
1 London Wall Place
London
EC2Y 5AU
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL

City and Guilds of London Art School Limited

2

Trustees' Report | Year to 31 August 2022

Introduction

The Board of Trustees (“the Board”) of City and Guilds of London Art School Limited (“the Art School” or “the Charity” or “the charitable company”) presents its annual report and the audited financial statements for the year ended 31 August 2022.

The report has been prepared in accordance with Part 8 of the Charities Act 2011 and is also the report of the directors for the purposes of the Companies Act 2006.

The financial statements have been prepared under the accounting policies set out therein and comply with applicable law and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Companies Act 2006 and comply with the Office for Students’ Accounts Direction.

Constitution

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 set out in the Articles the Directors of the Art School form the Art School Board of Trustees. To assist in exercising their duties, the Board has a number of Committees, which are detailed and governed by the Art School’s “How We Work: Governance and Management” Handbook.

The Charity was incorporated on 20 October 2011 to continue the educational activities 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 its Approved Category.

Principal aims and activities

Founded in 1879, and with a history dating back to 1854, the Art School is one of the UK’s oldest art educational institutions specialising in art, craft and conservation. Its original mission was to provide quality instruction in applied art and design for local people. This broadened over time and since World War II has encompassed restoration and conservation to 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.

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Trustees' Report | Year to 31 August 2022

Principal aims and activities (continued)

The Art School’s mission today is to nurture individual talent by providing an immersive learning environment with an emphasis on the dialogue between the eye, the hand and the material, informed by the study and analysis of historical and contemporary art and craft. This is delivered through a number of specialist courses including undergraduate and postgraduate courses in Fine Art, Carving (architectural stone and ornamental wood carving and gilding), Conservation of cultural artefacts (with a focus on three-dimensional objects, gilded and other decorative surfaces, and on books and paper), as well as a Foundation Diploma in Art & Design. This activity is consistent with the objects contained within the Art School’s Articles of Association.

The Art School sets out to educate artists, craftspeople and conservators who will go on to make a significant contribution in their fields, through the pursuit of excellence in traditional skills as well as through creative innovation and enterprise and a commitment to offering students a high level of contact time working with some of the country’s leading specialist practitioners.

Convinced of the social value and necessity of its subjects, not only for the creative and heritage sectors, but for society at large, the Art School champions the roles that art and craft play by engaging in national 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 its subjects and motivating students to be inquisitive and resourceful, equipping them to go on learning through practice for the rest of their lives.

Public benefit

The Trustees confirm that they have complied with their duties under section 4 of the Charities Act 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 Trustees’ report gives a description of the activities undertaken by the Art School during the period to further its charitable purposes, and the Trustees are satisfied that such activities provide public benefit.

Governance, structure and management

REVIEW

The current year saw further consolidation of the membership of the Board of Trustees: one Trustee decided to stand down before the end of the year; following an analysis of skills needs a recruitment exercise was undertaken and three new Trustees were appointed from the beginning of the 2022-23 academic session. The resignation of the out-going Principal, who was an ex officio Trustee, at the end of the year and the appointment of her successor from the beginning of 2022-23, occasioned a further change to the Board. The only other changes in membership during the year were the retirement of the staff trustee on reaching the end of her term of office and the appointment of her successor from the beginning of the 2022-23 session, and the retirement of the Board’s student representative whose

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Trustees' Report | Year to 31 August 2022

Governance, structure and management (continued)

REVIEW (CONTINUED)

appointment as co-Chair of Students expires on an annual basis. Towards the end of the year the Board considered the desirability of undertaking a Governance Review to inform its proceedings and meet the recommendations of the Office for Students and agreed that a Review by an independent third party should be commissioned and carried out in the course of 2022-23.

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-making body of the Art School. It is assisted by the Secretary, who is appointed by the Board. The Board also operates through a number of committees, including: Audit and 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 /administrative colleagues and with the involvement of students. The Academic Board is chaired by the Principal and operates under delegated authority from the Board. It is supported by the various Boards of Studies for each of the Academic Departments. The Site and Environment Sub-Committee, established in October 2019 also reports to the Trustees through the Audit and 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 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 to the Art School.

KEY MANAGEMENT PERSONNEL

The Principal of the Art School, who is Ex Officio 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 organisation 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: Access to Learning; Art Histories; Conservation; Fine Art; Foundation; and Carving; who, along with the Head of Finance and Head of Development and External Relations, 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.

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Trustees' Report | Year to 31 August 2022

Governance, structure and management (continued)

KEY MANAGEMENT PERSONNEL (CONTINUED)

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 to market rates and sector benchmarks.

PERSONNEL

In line with the Art School’s policy whereby students are largely taught by practising professionals, specialist tutors are engaged on an annual or term-by-term basis for a specified number of days. In this way, students are exposed to 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 nonacademic activities (including administration, finance and development), are run by a small administrative team reporting to the Head of Resources and Operations.

RISK MANAGEMENT

The Trustees have assessed the major risks to which the Art School is exposed. In particular, these relate to: academic standards and reputation; student recruitment and financial sustainability; and compliance with statutory and regulatory requirements, in particular those relating to: Office for Students Registration; Course validation and designation; Home Office Student Visa Sponsorship Duties; General Data Protection Regulations; and Health & Safety.

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 Audit and Risk Committee responsible 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 £10m 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 Property Trust, at its full re-instatement value.

In addition, as part of the Office for Students application process, the Art School devised and put in place a Student Protection Plan, which details how the Art School will support students to 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 to mitigate, or control where possible, the Art School’s exposure to the risks mentioned above.

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Trustees' Report | Year to 31 August 2022

Governance, structure and management (continued)

FUNDRAISING STATEMENT

The Art School adheres to good standards of ethical fundraising. Its Gift Acceptance Policy was reviewed and revised during 2021-22 and formalises the Art School’s practices and ethical fundraising position. 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 time to time. A small number of donations are received from individuals, including student alumni, who are approached from time to time via written correspondence, email or at events.

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 to fundraise on its behalf, and no complaints have been received about its 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 Regulations.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

A Statement of Trustees’ responsibilities is included in the Statement of Corporate Governance and Internal Control.

BOARD OF TRUSTEES

The members who are in office at the date of this report are listed on page 1 with their dates of new appointment and resignation since 1 September 2021.

No Trustee has received any remuneration for services as a member of the Board (2021 - none).

The Statement of Corporate Governance and Internal control sets out the Trustees who were in office for the year ended 31 August 2022 and up until the date of approval of the financial statements (unless otherwise indicated).

OBJECTIVES AND RELEVANT POLICIES

The Art School’s objectives are set to reflect its educational aims and ethos. In setting these, the Trustees have given due consideration to the Charity Commission’s general guidance on public benefit and to its supplementary benefit guidance on fee charging. The Art School’s key objectives for the year included:

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Trustees' Report | Year to 31 August 2022

Governance, structure and management (continued)

OBJECTIVES AND RELEVANT POLICIES (CONTINUED)

• to continue engaging further in public facing initiatives, in collaboration with other organisations, to raise the Art School’s profile and engage actively in the broader dialogue about art, craft and education;

• to continue to nurture and extend the number of high-quality partnerships and initiatives for student participation and engagement, and to support the development of professional practice and progression into employment upon graduation;

• 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.

ACCESS AND EQUALITY AND DIVERSITY

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 at 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 support, so it seeks to provide financial support through bursaries from its own investment income, from funds raised specifically for this purpose from a wide range of charitable sources and by supporting students in their own search for financial support. The Board’s policy is to provide fee bursaries on the basis of need and educational ability, subject to such restrictions as may have been imposed by the donors of the funds at its disposal, and within the capacity of the funds available.

The Art School is committed to promoting and upholding equality and diversity and is committed to 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 adjustments 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 investments are managed by Cazenove Capital Management Limited. The Art School has a portfolio of investments with a market value including cash as at 31 August 2022 of £1,582,720 (2021: £1,609,826).

There are no extra-statutory restrictions on the Art School’s power to invest. The investment strategy is set by an Investment Committee reporting to the Board of Trustees and considers capital growth and income requirements, the risk profile and the investment managers’ view of the market prospects in the medium term. The overall investment policy is to provide the level of income sought by the Trustees whilst endeavouring to ensure that longer term capital values are more than cover the impact of inflation. The performance of the portfolio is reviewed regularly by the Investment Committee.

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Trustees' Report | Year to 31 August 2022

Activities and achievements

STUDENT NUMBERS AND ACADEMIC ACHIEVEMENTS

The number of students enrolled at the beginning of the 2021/22 academic year totalled 271 (258 in 2020/21).

Foundation Studies

85 students (79 in 2020/21) successfully completed their year of study and were awarded a Foundation Diploma in Art & Design from UAL Awarding Body (26 with Distinction), with many able to secure a place on the university course of their choice.

Fine Art

20 students (20 in 2020/21) were awarded BA (Hons) degrees in Fine Art; 10 Firsts and 10 Upper Seconds. 1 Student was awarded a Graduate Diploma (with Distinction).

21 students were awarded MA Fine Arts degree; 14 with Distinction; 7 with Merit.

Conservation

4 students (4 in 2020/21) were awarded BA (Hons) Conservation Studies; 1 First, 2 Upper Seconds and 1 Lower Second. 4 students were awarded a Graduate Diploma (3 with Distinction). 1 student was awarded MA Conservation Studies (with Distinction).

Historic Carving

3 students (5 in 2020/21) were awarded BA (Hons) Historic Carving; 2 Firsts, 1 Upper Second. 2 students were awarded a Graduate Diploma (with Distinction). 1 student was awarded a Diploma of Higher Education

Art and Material Histories

5 students were awarded MA Art and Material Histories; 4 with Distinction, 1 with Merit.

BURSARIES AND SCHOLARSHIPS

The continued generosity of the Art School’s many benefactors enabled fee bursary awards of £274,311 (£224,825 for the previous 12 months). Contributions made by way of direct applications for support by students amounted to an additional £31,155 for the academic year (£20,583 in the previous year). In the course of the 12 months to 31 August 2022, fee bursaries were given to a total of 61 students (57 in the previous year), 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 to regard increasing the amount of bursary and scholarship funding available for students as a priority.

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Trustees' Report | Year to 31 August 2022

Activities and achievements

ACADEMIC PORTFOLIO DEVELOPMENTS

This was the second year for the new subject area in the Conservation of Books and Paper following the successful validation of the new awards and fundraising for new specialist facilities. The second year of the course successfully recruited and additional experts were recruited to deliver this important specialist area, securing important skills and knowledge for the UK’s heritage sector.

The move of MA Fine Art from the Georgian studios to the first floor of the BT Building which had taken place in the preceding year was consolidated and the new studios continued to provide excellent accommodation for the Art School’s students. Following the extension of both undergraduate and postgraduate courses in the previous year to mitigate the impact of the Covid pandemic, the 2021/22 academic year reverted to a pre-pandemic pattern.

As part of the Royal Literary Fund Fellowship Scheme, the Art School continued to host a professional writer for two days each week during term time. The Writing Fellow offered individual appointments where students could discuss all aspects of their writing, such as structuring an argument, making the essay clearer and improving style.

In October 2021, the Art School welcomed more than 100 UK and international delegates to the “Material Matters: Clay” online symposium, as part of the delayed 2021 London Craft Week and received outstanding feedback about our speakers. Recordings of the presentations are now available to view on the Art School’s YouTube channel. The Art School was delighted to take part in London Craft Week 2022, with a two-day event on site exploring the properties, uses and conservation of paper, marking the launch of our 2022-23 research programme, Material Matters: Paper. The events included paper demonstrations from students and tutors and print-making workshops in our historic etching room. Our now traditional two-day carving competition celebrated the life and work of Grinling Gibbons in the tercentenary year of his death.

Extending our Outreach activities is a theme of the new Strategic Plan and in January the Art School was represented at the UK Universities Fair in Madrid, organised by the British Council. This opportunity to meet students from schools in Madrid was our first face-to-face recruitment activity since Covid restrictions began. In Summer 2022, we were delighted to offer events for the first time as part of London Careers Festival organised by the City of London.

While 2021/22 saw a consolidation of the Art School’s validated course offer, its summer school of short taster courses was increased and demonstrated potential for future expansion. In line with its strategic objective of increasing its outreach activity and community profile a Saturday School for local young people (to be run in conjunction with the National Saturday Club) was planned, and a fundraising campaign to support it was successful. The first Saturday School students were expected to commence in October 2022.

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Trustees' Report | Year to 31 August 2022

Activities and achievements

STUDENT SUCCESSES, COLLABORATIONS AND OTHER ACTIVITIES

The 2021 MA Show in October featured artworks from over 30 exhibitors in a celebration of the outstanding work of our postgraduate Fine Art, Art and Material Histories and Carving students as well as current work from our Co-Chairs of Students and Fellows.

In May 2022 the Art School held its annual Foundation Show, a celebration of the outstanding work of our 2022 graduates studying the Foundation Diploma in Art & Design.

During their year of exploration students had interrogated and extended their art practice creating an impressive body of work displayed in the Show.

A day of celebration of achievement took place at the end of June as our final year undergraduate students graduated from the Art School in our annual Degree Show Ceremony and Prize Giving. Exhibiting students demonstrated exceptional commitment, resilience and creativity during the pandemic, and we were very proud to be showcasing their work. 23 prizes were awarded to graduates and 15 prizes were awarded to continuing students from across the courses. Five of those prizes were towards international study and research trips, others included recognition of drawing and printmaking skills.

Conservation

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Trustees' Report | Year to 31 August 2022

Activities and achievements (continued)

STUDENT SUCCESSES, COLLABORATIONS AND OTHER ACTIVITIES (CONTINUED)

Carving

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Trustees' Report | Year to 31 August 2022

Activities and achievements (continued)

STUDENT SUCCESSES, COLLABORATIONS AND OTHER ACTIVITIES (CONTINUED)

BA Conservation: Stone Wood & Decorative Surfaces student Elsa Ray-Iliffe working on the project towards fabricating a 'Watts' style frame for the National Gallery of Canada

MA Carving graduate Boris Burroughs' completed statue of BA Fine Art student Finn Johnson, one of the winners of the St Dominic for the Cours Notre Dame des Victoires 2022 Freelands Painting Prize

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Trustees' Report | Year to 31 August 2022

Activities and achievements (continued)

STUDENT SUCCESSES, COLLABORATIONS AND OTHER ACTIVITIES (CONTINUED)

Fine Art

Financial Review

RESULTS FOR THE YEAR

The Art School recorded a deficit before net losses on investments of £151,351 (2021: deficit of £144,329) for the year. Unrestricted funds recorded a deficit, reflecting continuing additional costs arising from the Covid-19 pandemic, extraordinary restructuring costs and a reduction in unrestricted donations during the year.

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Trustees' Report | Year to 31 August 2022

Financial Review (continued)

RESULTS FOR THE YEAR (CONTINUED)

Realised gains of £0 (2021: gains of £29,559) and unrealised losses of £74,055 (2021: gains of £148,340) on the Art School’s investments were recorded in its restricted and endowment funds.

RESERVES

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 committed. The Board intends to achieve, as circumstances permit, an increase in the free reserves from present levels in order to provide liquidity to meet any future temporary shortfalls in income and to 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 (as calculated below) should be considered together and are satisfied that this is in line with the reserves policy. A target of three months’ operating expenditure would be deemed appropriate.

FINANCIAL POSITION

The balance sheet shows total funds of £1,370,525 (2021: £1,595,932). These funds include endowment funds of £872,842 (2021: £1,146,665). 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 currently regarded as long term capital.

Also included in total funds is an amount of £466,593 which is restricted (2021: £428,765). These monies have either been raised for, and their use is restricted to, 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.

Unrestricted funds, other than those held within expendable endowments, at 31 August 2022 are in a positive position of £31,090 (2021: positive £20,502). These funds are represented by general fund tangible fixed assets other than investments of £180,961 (2021: £189,986) and by free reserves, inclusive of expendable endowments, of £552,965 (2021: £797,397). The Trustees have considered the position in the context of known future sources of income, and also expendable endowments of £702,836 (2021: £966,851) which are available to provide liquidity to the School if needed, and thus consider the reserves position to be acceptable in the context of the reserves policy.

INVESTMENT PERFORMANCE

During the year to 31 August 2022 the Charity’s investments produced an overall income of £49,427 with timing adjustments of £46,523 resulting in a net income of £2,904 (2020/21: £35,309 after adjustment) and a net capital loss of £74,056 (2020/21: gain of £177,900).

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Trustees' Report | Year to 31 August 2022

Financial Review (continued)

INVESTMENT PERFORMANCE (CONTINUED)

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 met by the performance of the investments in the context of existing economic and investment conditions.

GOING CONCERN

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect of a period of one year from the date of approval of these financial statements and have considered the following:

The Art School management’s foremost priority continues to be to safeguard the quality of the student experience and ensure student progression. Withdrawals and Interruptions of Studies have remained at very low levels and the reputation of the Art School continues to rise such that the 2022/23 intake has proved to be its largest yet. At the point of writing, the recruitment outlook for the 2023/24 academic year is stable based on the level of interest and number of applications received, suggesting that recruitment and therefore fee income targets for 2023/24 should be achieved.

In order to mitigate current financial challenges operational support remains a focus of the Art School’s successful fundraising activity for the current year, but the Strategic Plan aims to decrease its dependence on such activity for core funding.

In order to 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 2021/22. At the year-end £176,673 of the Art School’s £1,188,823 cash holdings were derived from the CBIL loan.

The Art School held free reserves of £552,965 as at 31 August 2022 (2021: £797,367) inclusive of expendable endowments available to provide additional financial support and liquidity to the Art School.

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.

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Trustees' Report | Year to 31 August 2022

Future Plans

The Art School has adopted a Strategic Plan 2022-2027 which sets out the targets by which the Art School intends to meet its Strategic Goals of:

i)Promoting academic excellence and increased learning opportunities in its areas of expertise;

ii)Enhancing its student and staff experience by ensuring its infrastructure supports its ambitions as a Centre of Excellence; and

iii)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:

2022/23 will constitute the first year of the Strategic Plan and the Art School’s planning processes have aimed to ensure it will provide a suitable basis from which the Plan’s objectives can be pursued.

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 and signed on its behalf by:

Chair Principal and Accountable Officer

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statsment of corporate governance and Intsrnal control Year lo 31 August 2022 The following Statement is provided lo enable readers of the annual report and financial statements of City and Guilds of London Art School Ltd. to obtain an understanding of its govemance and legal structure. These are detailed and governed by the How We Wort('. Governance and Management Handbook. The ststement covers the period from 1 September 2021 to 31 August 2022 and up to the date of the approval of the annual report and financial slatemenls. Th8 Art School endeavours to conduct ils busine$$'. 1. Having due regard to the UK Corporate Govemance Code 2018 in so far as it 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 responsibiliti'es. in accordance with the Higher Education Code of Governance. We have reported on our Corporate Governance arrangements by drawng upon best practice available, including those 8specls of the UK Corporate Governance Code, the Higher Education Code of Governance and the Charities Act 2011. The Board ofTrustees recognises that as a body entrusted with private funds. charitsble funds and public funds where received. il has a particular duty to observe the highest stsndards of corporate govemance al all limes. Legal Status City and Guilds of London Art School Ltd. is a charitable company. limited by guarantee, not having a share capital. The Board of Tru51ees confinn that they have due regard for the Charity Commission's guidance on public benefit and that the reqUI￿d statement appears elsewhere within these financial stalemenls. The Board of TTUStoes The members who served on the Board of Trustees during the year and up to the date of signature of this report are listed below. City and Guilds of London Art School Limited 18

Statement of corporate governance and internal control Yearlo 31 August 2022 The Board of Trustees Iconlinuedl Trustee Appolntsd l Reslgned Andrew Allen KC Laurence Benson (Vice-Chair} Nina Bilbey (Staff Trusleel Jamie Bill (Chairl Dr Virginia Brooke Dr Caroline Campbell Edward Campbell-Johnslon Gabriel Gbadamo$i Martin Haffull James Kelly Tabish Khan Tamiko O'Brien (Principal and Accountable Officer) Michael Osbaldeston Dr Michael Paraskos (Staff Trustee) Prof Jane Rapley OBE Theo Ritzinger (Student Trustee) Tina Roe (Student Twstee) Prof Elizabeth Rouse OBE Dr Lois Rowe (Principal and Accountable Offi¢erl Alexander Slitt Helen Sunderland-cohen Benjamin TuGker Resigned 3010912022 Appointed 2611012022 Resigned 3111212021 Appointed 2611012022 Resigned 3110812022 Appointed 0111012022 Appointed 0111012022 Resigned 3010912022 Appointed 0110912022 Appointed 2611012022 Board of Tru$tees' 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 Iwo salaried members of staff. the Principal lex-officio Trusteel. the staff rep￿SentatIve Trustee lelecled), and the Student representative Trustee (also known as Chair of Students)., none of them receive remuneration for their services as members of the Board. The Company Secretary to 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. respon$ibllltle8 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 statement5 in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). City and Guilds of London Art School Limited 19

Ststsment of corporats governance and internal control Year to 31 August 2022 statement of trustees, responsibilitles Icontinuedl Company law requires the Trustees lo prepare financial statements for each financial year, which give a true and fair view of the stste of affairs of the charitable company and of the income and expenditure of the charitable company for that period. In preparing these financial stalernents, the Trustees are required to.. • select suitable accounting policies and then apply them consistently. • observe the methods and principle5 in Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102}.' • make judgements and eslimales that are reasonable and prudent.. • slate whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial slalenients., and • prepare the financial statements on the going concem basis unless il is inappropriate lo PTesume that the charitable company will continue in operation. The Trustees are responsible for keeping Proper accounting records that disc105e with reasonable accura¢y al any time the financial position of the charitable company and enable them- lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable ¢ompany and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Trustees are also ￿spOnSible for ensuring that the School ¢ontinues lo meet the ¢onditions for Office for Students registration, and also safeguarding freedom of speech and academi¢ freedom. Each of the Twstees Confi￿nS that.. so far as the Trustee Is aware. Ihere is no ￿levant audit information of which the charitable ¢ompany's auditor is unaware- and the Trustee has taken all the Steps that helshe ought to have taken as a Trustee 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 confimiation 1$ given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. Meetlng Procedures Fomal agendas. papers and reports are supplied lo the Board ofTrustees in a timely manner, prior to Board meetings. Reports include financial performance of the organisation together with other information such as recruitment, academic and quality matters, personnel related matters, and health and safety matters. The Board of Tnjslees mel 5 times in 2021122, Full minutes are kept of all meetings. City and Guilds of London Art School Limited 20

Statsment of corporate govèrnance and intsrnal control Year to 31 August 2022 Meeting Procedures Iconlinued} The Art School has a slroTrg and independent nonoxeculive membership on the Board of Trustees and no individual or group dominates ils deci5ion-making process. The organisation is satisfied that each of ils non-executive 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 responsibility be￿een the roles of the Chair and Accountable Officer. Appolntment to the Board of Trustees Appointment to the 8oard of Trustees are matters for consideration of the Board of Trustees as a whole, as advised by the Nominations Committee. Board of Trustees Performance Overslght The Board of Trustees exer¢ise robust scnjtiny of perfomian¢e and challenge where necessary. Board meetings provide the opportunity for thorough discussion of issues arising. Trustees are pro-active in their oversight of the organi$ation and are involved in the planning and discharging of Board business. A review of individual Board members, roles and contributions is ¢onducled annually by the Chair. Committees The Board of Trustees re¢eives advice on the conduct of its business from four committees and the Academic Board. Each committee has ils own terms of reference which have been approved by the Board of Trustees. This committees are.. Audit and Risk Committee., Remuneration Committee,. Investment Committee,. and Nominations Committee. In addition, Finance Working Group informs strategic planning. the Principal's Business Planning Advisory Group provides 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 fvndraising activity of both the Art School and the Propety Trust, a separate charity and landlord to the Art School. City and Guilds of London Art School Limited 21

ststement of corporate governance and internal control Year to 31 August 2022 Commlttegs (continued) AUOIT •nd RISK COMMITTEE INVESTMENT cOMMI￿EE NOMINATIONS COMMITTEE REMUNERATION COMMITTEE Frequency of meèting$ Chalr Minimum 4 p.a. 2 p.a. Minimum 2 p.a. Minimum 2 p. Laurence Benson Jarnes Kelly Director of Resource3 and Operations Laurence Benson Caroline Campbell Secfetary lo the Board Laurence Benson Clerk Secrtrtsry to the Board Secretary to the Board Trustees Virginia Brooke Martin Harfull Andrew Allen Andrew Allen Jami? Bill Jamie Bill James Kelly Jane Rapley Michael Gabriel Gbadamosi Martin Hatfull Ben Tucker Alex Stitt Stsff Trustee Osbaldeston Ben Tucker Student Trustee Staff Trustee Student Truste$ Non-Tru¥t¢• Humphrey Carey IPrtsp$rty Trust) Tim Statharn Humphrey Carey (Property Trusti Rupert Asqvith Head of Finance Mèmbers In atténdance Prinrip81 lÉx- officio TTUSteel Princlpal lex- offi￿0 Truste6} Principal lex- offiao Trusleel Nick 0￿, C¥zenove Capital Brendan Finucane (former Trustee) Direcior of Resources and Operations Director of Resourees and Operations Head of Finance Head of Finance Audit and Rlsk Commlttee The Audit and Risk Sub-committee is responsible lo the Board of Trustees in discharging its responsibilities for reporting its independent opinions on the risk management, controls. governance, and value for money arrangements of the Art School. The Committee is responsible for the follow¢ng'. To appoint external auditors and agree the audit fee, meet with the external auditors to discuss the scope and nature of the audit and lo discuss the findings of the audit along with the in¢luded management letter and management responses. City and Guilds of London Art School Limited 22

Statsment of corporate governance and internal control Year to 31 Altgust 2022 Committee$ l¢ontinued} Audit and Risk Commlttee (continued) To review on a regular basis the Art School's Risk Register, advise the Board of Trustees of any significant changesladdilions and lo escalate any serious concerns to the Board To commission audit reviews of anything that could potentially threaten or adversely affect the accomplishment of the aim5 and objectives of the Art School, or which potentially could put the Art School at financial or reputational risk. • To ensure, on behalf of the Board of Twstees, that sound financial and governance controls are in place, and effectively implemented., including the endorsement of the Art School's Financial Regu1ation5, Reserves Policies and arrangements for risk and business continuity management. A Slte and Environmentsub-commlttee reporting lo the Audit and Risk Committee is tasked with overseeing all matters relating 10 risk management and compliance with leg81 obligations relating lo the physical, working and educational environments, including student and staff welfare provision and the Health and Safety of all the Art School's members and visitors. Remuneratlon CommiTttee The Remuneration Committee provides oversighl of strategic staffing matters and delernine policy on staff remuneration,. and has delegated authority of the Board to determine the schema for stsff pay increases and to decide the remuneration of the Principal and Senior Members of Staff. Investment Commlttee The Investment Committee oversees the management of the Art Sch¢)ol's investment portfolio. Under delegated authority ol the Board of Tmsl8es, the Investment Committee is responsible for advising the Board on the appointment of the investment managers., for monitoring the perf0rrnan￿ of the portfolio and the effectiveness of the investment slralegy., and for ensuring that the Art School's investments are handled responsibly and ethically. Nomlnatlons Committ08 The Nominations Committee oversees the process ft)r the recruitment and appointment of members of the Boards of Trustees and advises the board overseas the process for review of governance effectiveness. It keeps under review policies and processes relating to membership of the Board of Trustees including induction. training and development of the Trustees. City and Guilds of London Art School Limited 23

Ststsment of corporate governance and intsrnal control Year lo 31 August 2022 Committees {continuedl Academi¢ Board The Academic Board is established by the Board of Trustees with delegated powers to oversee the Art School's academic activities on ils behalf and to be the inslilulion's supreme academic authority. Chaired by the Principal, the responsibilities delegated lo Academic Board are to.. • Uphold the academic standards of Art School's courses and the quality of ils teaching and student welfare provision. • Devise. maintain, amend and, in individual ¢ases suspend, the Student Regulations. • Recommend the appointment of External Examiners for validated provision. Appoint Extemal Examiners for non-validated provision. Confimi the students. results for those courses delivered independently of a v81idaling partner. • Elicit, receive and act upon Student feedback. Oversee all internal review and evaluation processes including periodic reviews by the Office for Students (via the QAAI. • Work to foster ex¢ellent relationships with the Art School's validating partners. Internal Control Scope of responsibil The Board of Trustees is ultimately responsible for the organisation's system of internal control and for reviewing its effectiveness. Such a system incorporates risk management and is designed lo manage the risk of failure to achieve academic, operational and financial objectives and is designed to provide reasonable assurance against material misstatement or loss, covering such areas as educational standards. safeguarding, IT and dats protection. Health and Safety and Eststes. HR matter5 and finan￿. The Boafd of Trustees has delegated the day-to-day responsibilty lo the Principal, as Accounting Offi￿r, for maintaining a sound system of intemal control that supports the achievement of the organisation's policies, aims and objectives, whilst safeguarding the funds received and assets. The Prin¢ipal is responsible for reporting to the Board ofTrustees. through the Audit and Risk Committee, any material weaknesses or failures in intemal control. The system of Intemal control The system of internal control is designed lo manage risk to a reasonable level and is based on an on-going pro¢ess of identifying and prioritising the risks lo the achievement of organisation policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them effiC￿ntly, effe¢twely and e¢onomi¢ally. City and Guilds of London Art School Limited 24

Statement of corporate governance and internal control Year to 31 August 2022 Internal Control {continuedl e system of Intemal control (continued) The system of internal control has been in place althe organisation forlhe yearended 31 August 2022 and up lo the date of approval of the annual report and financial statements. Capaclty to handle rlsk The Board of Trustees has reviewed the key risks lo which the organisalion is exposed, together with the operating, financial and governance controls that have been implemented lo mitigate those risks. The Board of Trustees is of the view that an effe¢live fomal on-going process for identifying, evaluating and managing the Art School's significant risks has been in place for the year ended 31 August 2022 and up to the date of approval of the annual report and financial Statements. The risk and control framgwork The system of intemal control is based on a framework of regular management infom8tion, administrative procedU￿S including the segregation of duties, and 8 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 a¢¢ounts and financial reports which present and assess financial pertonnance against budget and performance indicators Revlew of effectiveness As the Accountable Officer, the Principal has responsibility for reviewing the effectNeness of the system of intemal control. The Principal's review of the effectiveness of the system of internal control 1$ infom)ed by.. the work of the extemal auditors., • the work of the Head of Finance and other staff who have ￿spOnsIbl11ty for the maintenance 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 TTuslees working through the Committees. There are no significant internal control weaknesses reported for the period. City and Guild5 of London Art School Limited 25

Statement of corporate governance and internal control Year lo 31 August 2022 Intemal Control Iconbnuedl Review of effectiveness (continued) The senior management team ￿gUlarlY ￿vIewS key perfoman¢e and risk indicators and ¢onsiders possible control issues brought to their attention. The Audit and Risk Committee receives regular reports, which include wommendalions for improvement, and condu¢ls an annual review of the arrangements for intemal control. The Board of Trustees agenda includes a regular item for consideratson of risk and ¢onlrol and receives reports thereon from the Audit and Risk Committee. The emphasis is on obtaining the relevant degree of as$ur8nce and not merely reporting by exception. Based on above and reports by the Principal. the Board of Trustees is of the opinion that the organisation has an adequate and effective framework for governance, risk management and control lo manage the achievements of the organisalion's objectives for the year ended 31 August 2022 and it has fulfilled its statutory responsibility for "the effective and efficient use of ￿sources, the solvency of the institution and the safeguarding of their assets.. Regularity, propriety, and Compliance The organisation has considered its responsibility to notify the Office for Students of material irregularity. impropriety and non-complian￿ with Office for Students terms and conditions of funding. We confim, on behalf of the organisalion, that after due enquiry and to the be51 of its knowledge, the Board of Tru$lees believes it is able lo 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 statement Ihese will be nob'fied lo the Office for Students. Golng Concern Details on Board's going concern assessment are sel out on page 16. Approved beha rder of the Board of Trustees on and signed on ils amie Chair Dr Lois Rowe Principal and Ac¢¢ountable Officer City and Guilds of London Art School Limited 26

Independent auditorfs report Yearto 31 August 2022 Independent auditor'8 reixirt to the members of City and Guilds of London Art School Limited Opinion We have audited the financial statements of City and Guilds of London Art School Limited I'the charitable company'l for the year ended 31 August 2022 which comprise the slalemenl of financial activities lin¢luding the statement of changes in reserves), the balan￿ sheet, the statement of cash flows, the principal a¢¢ountsng policies and the note5 to the financial slalemenls. The financial reporting framework Ihal has been applied in their preparation is applicable law and United Kingdom Accounting Standards, in¢luding Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, {Uniled Kingdom Generally Accepted Accounting Practice). In our opinion, the financial ststemenls.. give a true and fair view of the slate of the charitable ¢ompany's affairs as at 31 August 2022 and of ils income and expenditure, changes in ￿serveS and cash flows for the year then ended., * have been properly prepared in accordance with the financial reporting stsndards IFRS102}', and • have been prepared in accordance with the requirements of the Companies Act 2006. Basi$ for opinion We conducted our audit in accordance with Intemational Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those stsndards are further described in the audilorfs ¥esponsibilities 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 of the financial Ststements irb the UK, including the FRC'S Ethical 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. Conclusions relatlng to golng Concem In auditing the financial statements, we have concluded that the Iruslees, use of the going concern basis of accounting in the preparation of the financial ststemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo event5 or conditions that, individually or collectively, may cast significant doubt on the ¢harilable company's ability lo continue as a 90ing concern for a peTiod of at least fv￿1Ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Iruslees with respect lo going ¢on¢em are described in the relevant se¢lions of this reFX)rt. City and Guild5 of London Art School Limited 27

Independent auditor's report Year to 31 August 2022 Other Infonnation The trustees are responsible for the other information. The other infomiation comprises the information included in the annual report, other than the financial statements and our audilorf$ report thereon. Our opinion on the financial statements does not Cover the other infornalion and, except to the extent otherwise explicitly staled in our report. we do not express any fomi of assurance conclusion thereon. In conne¢tion with our audit of the financial statement5, our respon$ibilrty is lo read the other information and. in doing so. consider whether the other information is materially ineonsistenl with the financial slalements or our knowledge obtained in the audit or otherwise appears to be materially misststed. If we identify such materi81 inconsistencies or apparent material misstatements. we are required to determine whether there is a material misstslemenl in the financial slalemenls or a material misstatement of the other infomiation. If. based on the work we have performed, we conclude that there is a material misstatement of this other infomats'on, we are required to report that fact. We have nothing lo ￿port in this regard. Oplnions on other matters prescrfbed by tho Companleg Act 2006 In our opinion, based on the work undertaken in the course of the aLtdit'. • the infomiation given in the trustees, 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. Oplnlons on other matters prescribed by the Offlce for Students In our opinion, in all material aspects.. • where applicable, funds from whalever source administered by the provider for specific purposes have been properly applied lo those purposes and managed in accordance with relevant legislation. • where applicable, funds provided by the Office for Students and by Research England have been applied in accoTdan¢e wrth the relevant terms and ￿ndItions., and meet the requirements of the latest Office for Student's Accounts Dire¢lion. Matters on whi¢h we are required to report by exception In the light of the knowledge and understandin9 of the charitable company and its environment obtained in the course of the audit. we have not identified material misslalemenls in the tru5tees' report. We have nothing lo report in respect of the following matters in relation to which the Companies Act 2006 requires us lo report to you if. in our opinion.. • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or Cty and Guilds of London Art School Limited 28

Independent auditor's report Yearto 31 August 2022 Matters on which we are requlred to report by excgption Icontinuedl the financial statements are not in agreement with the accounting records and returns,. or • certain disclosure$ of trustees, remuneration specified by law are not made,. or we have not received all the infomation and explanations we require for our audit., or + the trustees were not entitled to p￿ pare the financial statements in accordance with the sma11 companies regime and lake advantsge of the small companies. exempb'ons in preparing the trustees, report and from the requirement to prepare a strale9ic report. We have nothing to report in respect of the following matters Whe￿ the Office for Students requires us to report to you where.. • the charitable company's grant and fee income, as disclosed in note 1 to these Finan¢ial ststements, has been materially misstated. Responsibllltles of trustees As explained more fully in the trustees, responsibilities statement, the Iru$lees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees determine is ne￿SSary to enable the preparation of financial slatemenls that a￿ free from material mis5tatemenl, whether due to fraud or emr. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability lo continue as a going concern, disclosing, as applicable. matters related to going concern and using the going concem basis of accounting unless the Iruslees either intend to liquidate the ¢harilable ¢ompany or lo cease operations. or have no realistic allemative bltt to do so. Audltor's re$pon8ibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misststemenl, whether due to fraud or error, and lo issue an audilorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misststement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate. they could ￿#SOnablY be expected to influence the economic decisions of users tsken on the basis of these financialststemenls. Irregularities, including fraud, aTe instsnces of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are ¢apable of delects'ng irregularities. including fraud, is detailed below. City and Guilds of London Art School Limited 29

Independent auditor's report Yearto 31 August 2022 Audltor's responsibilities for the audlt of the Ilnancial statements Icontinuedl Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non<ompliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate ¢ompetence. capabilities and skills lo identify or recognise non-compliance with applicable laws and regulations., we obtained an understanding of the legal and regulatory frameworks that are applicable lo the charitable company and determined that the most significant frameworks which are directly ￿levant to specific assertions in the financial ststements are those that relate to the reporting framework Iststement of Recommended Practice.. Accounting and Reporting by Charib'es preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Charities Act 20111, Companies Act 2006. those that relate lo data protection (General Data Protection Regulalionl. certain conditions of Ofs registration including cornplian¢e with the Ofs, latest Accounts Direction; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non<ompliance throughout the audit. We assessed the susceptibility of the ¢harilable company's financial statements lo material misststement. including obtaining an understanding of how fraud might orxur, by.. making enquiries of management as to their knowledge of actual, suspected and alleged fraud.. and considering the internal controls 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.. performed analytical procedures to identity any unusual or unexpected relationships". tested joumal entries to identify unusual transactions,. assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.. used data analytics to investigate the rationale behind any signrficant or unusual Iransactions., lesled authorisation controls on expenditure items, ensuring all expenditure was approved in line with the charitable company's financial procedu￿$,. and performed subslanlive testing over fee income to gain a$5ur8nce that the income recognised was materially complete. City and Guilds of London Art School Limited 30

Independent auditor's report Year to 31 August 2022 Auditor's responsibillties for the audlt of the finan¢lal statements Iconlinuedl In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedu￿$ which included, bul were not limited lo.. agreeing financial statement disclosures to underlying supporting d0￿mentation,. reading the minutes of meetings of those Charged with governance., and enquiring of managemenl as lo actual and potential litigation and claims. There are inherent limitations in our audit procedu￿$ described above. The MO￿ removed that laws and regulations are from financial Iransaclions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations lo enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due lo fraud eAn be harder to detect than those that arise from error 88 they may involve deliberate con¢ealmenl or collusion. A further description of our responsibilitie5 for the audit of the finan¢i81 statements is located on the Financial Reporting Council's website at www.frc.org.uklaudilorsresponsibililies. This descllplion fomis part of our auditorfs report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale lo the charitable company's members those matters we are required lo stale to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the charitable company and the ¢harilable companys members as a body, for our audit work, for this report, or for the opinions we have formed. baz2o• Lcl Hugh Swainson, Senior Slalulory Auditor For and on behalf of Buzzacott LLP. Statutory Auditor 130 Wood Street London EC2V 6DL 31 January 2023 City and Guilds of London Art School Limited 31

Statement of financial activities (including income and expenditure statement, which include3 Statement of chang•s In reserves) Year lo 31 August 2022 Year to Yearto 31 Au9USt 31 August 2022 2021 Total Total fund5 fund$ General Reslrthd Endowment fund fund5 fiJnd$ Notes In¢•me and expenditur• Income •nd •ndovmients from: Charitabl? aciivilies Art School fees Donat￿n8 and legaci8S Investment Income & interest receNed Other Total In¢om• 2.418.389 150.535 17.5211 46.058 2.607.461 2,418.389 669,556 2,904 46.058 3.026.907 2,119,330 501,795 81,832 89,774 2,792,n1 409,021 10.425 419,446 Expondtturn on: Charitable activitie5 Cosls of operating the Art S¢ho01 Teaching staff and persennel Support costs Premise$ Promotions and publicty Bursar￿$, scholarships and prizes Totsl 8xpgnditure 1.077.003 4 1.009.746 441.045 69,079 200,000 1.277,003 1,907 1.012.168 441.045 69,079 12,550 378.963 214,457 3.178.258 1.128.557 949.150 408,934 87.067 365.352 2.937.060 515 386,413 366.928 2,596,873 N8t lexwndltstro) Income Wore gain5 on In￿$tments and transfer8 10.588 52,518 1214,4571 1151.3511 1144,3291 Net gainslllossl on investments N¢1 lexpondlturel I In¢¢me and net movement In fvnds 10 114,8901 159,3661 174,0561 177,900 10,588 37,828 1273.8231 122S,4071 33.571 STATEMENT OF CHANGES IN RESERVES Net lexpondltltrel I Income and n•1 movement In lunds 10.588 37,828 1273.8231 1225,4071 33.571 R•conclllatlon of Fynd$ Fund balance5 broughtloThvard on 1 Soptember 2021 20.502 428,765 1,146,665 1,695,932 1,582.361 Fund balances ¢•rried lorward at 31 Augu$12022 31,090 466.593 872,842 1.370,525 1,595,932 All of the charitable company's activities are derived from continuing operations during the above I￿0 financial periods. All recognised gains and losses a￿ included in the above ststement of financial adivities.

Balance sheet 31 August 2022 2022 2022 2021 2021 Notes Fixed a*sets Tangible assets Investments 180.961 1,582,721 1,763,682 189.986 1,e09,826 1,799,812 10 Current assets Stock$ Debtors Cash at bank and in hand 23.826 157,516 1,188,823 1,370.16S 24,472 254,407 924.255 1,203.134 12 Credltors.. amount$ lalling dutr wthin one year Net currènt Ilabiliti•s 13 11,628,316) 11,226,458) 12S8.1S11 {23,3241 Creditorn: arnounts falling dua after one year 14 113S,0061 1180,5561 Total net #8s•ts 1,370,525 1,595,932 Représented by.. The Funds of the Charfty Endowment fvnd$ Income funds.. Restriclod funds Unrestricted funds.. General fijnd 15 872.842 1.146,665 16 466,593 428,765 31.090 1,370.525 20.502 1,595,932 Approved by the Board on and signed on ils behalf by.. 6ILL. 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 2022 Year to 31 August 2022 Year to 31 August 2021 Notes Net ca¥h flows from operating activitiss 342,476 217.795 Net cash fl¢)ws from Inv•stlng o¢tlvltles 1152,9961 76.881 Change in ¢ash and c¥sh equivalènts In thè year q89,480 294,676 Ca8h and cash •quiv•l•nts at t beginnlng olth• year 1,033,762 739.086 Cash and cash equlvalents at the end of ￿ yar C 1,223.242 1,033.762 Notes to the statoment of ¢ash IIow8 for the year to 31 August 2022 A Reconciliatlon ol net Income {expendlture) to nel cash provlded by operating activities 2022 2021 Net expenditure Depreciation charge Dividends, Interest and rents from investments Effe¢t of capi181isation of investment managerfs fees Oecrease lincreasel in stocks Decrease {Increas8) in debtors Increase in Creditors Net eash provided by operating •¢tlvltles 1151,3511 1144,3291 45,310 48,891 12,9041 181,8321 {2,4221 11,794} 12,0801 14,7311 403.679 217,795 96,892 356,306 342.476 B Cash flows from Investlng actlvlties: 2022 2021 Dividends and interèst from investments Purchase of tangible fixed assets Payments to acquire investments Receipts from the dispos81 of investrnents Net cash lused inl provided by Inve¥ting actlvitÉ$ 2.904 81,832 136,2851 122,2851 1119,6151 1508,6351 525,969 76.881 1152.9961 C Analysi$ of cash and cash equlvalonts 31 August 31 August 2022 2021 Cash al bank and in hand Cash held by investment managers 1.188,823 34.419 1,223,242 924.255 109,506 1,033,761 City and Guilds of London Art School Limited 34

Principal accounting policies 31 August 2022 Basls of ac¢ountlng The financial ststemenls have been prepared under the histOTi¢al cost convention with items initially recognised at cost or transa¢lion value unless othernvise staled in the relevant accounting policy note{sl. The financial statements have been prepared in accordance with A¢¢ounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Finan¢ial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 I'Charitie$ FRS 102 SORP'I, the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021, the Companies Act 2006 and the latest Office for Students, Aecounls Direction. The Charity constitutes a public benefit entity as defined by FRS 102. The accounts are presented in sterlin9 and are rounded to the nearest pound. Critical accountlng •$tlmates and areas of Judgement Preparation of the accounts requi￿$ the Trustees and management lo make significant judgements and estimates. The items in the accounts where these judgements and estimates have been made include.. + the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation charge., + the provision against doubttul and bad debts in respect lo Art School fees., and estimates in respect of a¢cnJed expenditure. Golng concern The Trustees have assessed vthelher the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect of a period of one year from the dale of approval of these financial ststements. The Art S¢hool held free reserves of £552,965 as al 31 August 202212021.. £797,367) inclusive of expendable endowments available to provide additional financial support and liquidity lo the Art School The Board intends to achieve, as circumstances permit. an increase in the free reserve5 from present levels in order to provide liquidity lo meet any future temporary shortfalls in income and to Provide adequate workin9 capital. The Art School now holds expendable endowments totalling £702,836 12021.. £966,851). These expendable endowments are available lo provide liquidity lo 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 lo continue as a going concern. City and Guilds of London Art School Limited 35

Principal accounting policies 31 August2022 Income Income is recognised in the period in which the Art School is entitled lo receipt and the amount can be measured with reasonable certainty. Fees receivable and charges for $eNices and use of P￿mISeS 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 a￿ reco9nised when received and are only accrued where the Art School can demonstrate enlitlemenl to receipt 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 of the 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 Chanty," this is nomally upon nolificalion of the interest paid or payable by the bank. Expenditure Expenditure is included in the statement of financial activities when incuffed and includes attributable VAT which cannot be recovered. Expenditure comprises the following.. The costs of charitable activities 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 to students. The costs of operating the Art School include the costs of p￿MiSes, teaching Stsff and personnel, support costs including governance costs, and costs of promoting and publicising the Art School and ils aclivilies. Included within support ¢osls are 50% of the fees incurred in managing the School's investment portfolio. The remaining 50.10 of investment managerfs fees are debited to the value of cash held by investment manager on the balance sheet (note 101 and also deducted from unrealised investment gains. Bursaries, scholarships and prizes payable by the restricted funds are included in the slalemenl of financial activities when approved. and when set off against the fees to which they relate. Liabilities are recognised as expenditure as soon as there is a legal or oonstruclive obligation committing the Charity to make a payment to a third paty, il is probable that transfer of e¢onomic benefits will be required in Settlement and the amount of the obligation can be measured ￿lIablY. Expenditure includes any attributable VAT which cannot be recovered. All expenditure is accounted for on an accruals basi5. Expenditu￿ comprises direct costs and support ¢osts. City and Guilds of London Art School Limited 36

Principal accounting pollcles 31 August 2022 Tanglblo fixed agsetg All assets costing more than £250 and with an expected useful life exceeding one year are pitalised. Assets a￿ included in these financial slalements at Cost at the date of acquisibon together with the cost of additions and improvements to date. Depreciation is provided at the following annual rates in order to write off each asset over ils eslimaled useful life.. • Fixtures and fittings 10'h on cost Tools and equipment 20Yo on cost Computer and hi-tech equipment 33Yo on cost • Websrte 20% on cost Dèbtors 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 represents such account$ and instruments that a￿ available on demand or have a malurty of less than three months from the date of acquisition. Credltors Creditors are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of eeonomic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors are recognised at the amoLtnt the Charity anticipates it will pay to settle the debt, Investments Investments are included on the balance sheet at their market value at the end of the financial period. Realised and unrealised gains and losses are credited, or debited, lo the slalemenl of financial activities in the year in which they arise. Finan¢ial instruments The Art School only holds basic financial instruments as deftned in FRS 102. The financial assets and financial liabilities of the Art School and their measurement basis are as follows.. Finan¢i818ssets - trade and other debtors are basic financial instfuments and are debt instruments measured al amortised cost as detailed in note 12. Prepayments are not financial instruments. Cash 8t bank- is classified as a basic financial instrument and is measured at face value. Cty and Guilds of London Art School Limited 37

Principal accountlng policies 31 August 2022 Flnanclal Instruments (continued) Fin8ncial liabilities trade creditors, accruals, the loan and other creditors are financial inslrumenls, and are measured 81 amortised cost as detailed in note 13. Taxation and social security are not included in the financial instruments disclosure definition. Defer￿d income is not deemed lo be a financial liability, as the cash settlement has already taken place and there is an obli9alion to deliver services rather than cash or another financial instrument. Stock$ Stocks, comprising artists, materials for resale, are slated al cost. Fund a¢countlng The general fund comprises those monies which may be used towards meeting the charitable objectives of the Art School al the discretion of the Board. The restricted funds are monies raised for, and their use restricte(E to, a specific purpose, or donations subject to condibons imposed by the donor. The endowment funds comprise both permanent and expendable endowments. Permanent endowments are monies which must be held as capital 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 but there is no reslri¢lion on them being Converted into expendable income. Leased assets Rentals applicable to operating leases. where substantially all of the benefits and risks of ownership remain wrth the lessor, a￿ Charged on a slraight-line basis over the lease lem. Penslon costs Contributions lo employees, personal pension plans are debited lo the ststement of financial activities in the year in whi¢h they are payable to the relevant plans. City and Guilds of London Art School Limited 38

Notes to the financial statsments 31 August 2022 1 Grant and fee Incomo Year to 31 August 2022 Year to 31 August 2021 Fee income for laughl awards Total gr•nt and fee incom• 2,418,389 2.418,389 2,119.330 2,119.330 The School had no other types of grant and fee income a5 detailed in clause 23 of the Office for Students Accounts Direction. 2 Investment Incom• and Interest recelvable Reslricied and General endowment lund funds Year to 31 August 2022 total Income from UK investments Unit trusts and common investment lunds Bank interest (7,5751 54 17,521) 10,425 2,850 10,425 2,904 Restricted and Gener81 endowment fund fund Year lo 31 August 2021 lot81 Income from UK investments . Unit trusts and common inv8sln7enl fvnds B8nk Interest 62,075 79 62, 154 19,678 81, 753 79 81,832 19,678 3 Pfomotlon and publlclty Restricted and General endowrnent fund funds Year to 31 August 2022 total Markèllng 69.079 69,079 69,079 69,079 Reslrirt9d and General endowment fund funds Yearto 31 August 2021 total Ma￿eting 87,067 87,067 87,067 87,067 City and Guilds of London Art S¢hool Limrted 39

Notes to tha financial statèments 31 August 2022 4 Support costs Restricted and General endowrnent fund fund$ Year to 31 August 2022 totsl Staff costs Equipment, IT and depreciation Student material8 and project expenses Other support costs Govemance c05tS'. Legal and professional fees . Statutory audrt services Non statutory audit Se￿ICe$ $81.712 151.015 103.298 146.378 581,712 151,015 103.298 148,800 2,422 10,233 15,120 1.990 1,009,746 10,233 15,120 1,990 1,012.168 2,422 Reslri¢ted and General endowment fund funds Yearto 31 Augtjst 2021 total S18ff costs Equiprnent, IT and depr8ciat Student malgrièls andproiecl expenses Other support costs G0Veman￿ Gosts.. . Leg818nd pmfession81 leès Statutory audit seNices Non sta1￿Ory audit s8Trices 515, 766 157,010 82,204 135,522 25,000 540, 766 157,010 82,204 137.316 1,794 16,492 14.066 1,296 922,356 16,492 14,066 1,296 949, 150 26.794 5 Net expenditure This is stsled after charging.. Restricted Year to and 31 August Gener81 endowrnenl 2022 fund funds totsl Staff costs {note 61 Auditorfs remvneration.. Statutory audit services Non-slatLrtory audit services Oepreciation and loss on disposals Operating lease rentals Land and buildings Equlpment Bursaries, scholarships and prizes 1,658,715 200.000 1,828.715 15,120 1,990 45.310 15,120 1,990 45,310 295.224 29,241 295,224 29,241 378,963 378,963 City and Guilds of London Art School Limited 40

Notss to tho financial statements 31 August 2022 5 Net expendlture Iconlinuedl This is slated after charging.. Restl￿d Yearto and 31 August Genor81 endowment 2021 fund funds total staff costs (note 6) Auditorfs Trmun8ration.' . StAtutory aUditse￿&S . NoTrslotutory audit seNiG8s DepreCiat￿n and loss on disposals Opeft3ting lease renl81s . Land and buildings Equipment Burs8ries, scholarships andprizos 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 Bursaries were paid to 61 individuals12021- 571 during the year. 6 Staff costs and Trustees, r¢muneratlon Year to 31 August 2022 Year to 31 August 2021 Staff costs during the year were as follows.. Salaries Social security cost Penston 1,354,962 108,214 63,118 1.526,294 283,308 19,113 1,828,715 1,276.908 99,228 59,630 1,435,768 215,944 15.613 1,867,323 Self-employed tutors Other staff costs Stsff Costs analysed by function were as follows.. Yoar to 31 August 2022 Year to 31 August 2021 Teaching Support, administration and management 1,247,003 581.712 1,858.715 1,126,557 540.766 1,667,323 The above costs include a termination payment paid to one employee comprising £7,569 posl-employment notice pay, £5,996 statutory redundancy pay and £1,555 settlement payment. The average number of employees, all of whom are engaged in the operation of the Art School, analysed by fvnction and on a full time equivalent basis was.. Year to 31 Augu#t 2022 Year to 31 August 2021 Teaching Support, adminislr*ion and managernent 30 13 43 27 12 39 City and Guilds of London Art School Limited 41

Note8 to the financial statsments 31 August 2022 6 Stsff costs and Trugtees, remuneratlon {conlinuedl The average number of employees, all of whom are engaged in the operation of the Art School, was 8812021- 831 for the year ended 31 August 2022. Many of these are employed on a part-time basis. The Principal's total remuneration in the year ended 31 August 2022 was as follows.. 2022 2021 Basic salary Pension contribution 72,709 3,635 76.344 71,400 3,570 74,970 The Board of Trustees Remuneration Committee chaired by the Chair of the Board of Trustees considers the case for annu81 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 wrth proposals made to the full Board. The Chair of Students (Student Trusleel is a member of the Remuneration Committee while the Principal and Head of Finance now attend lo provide information. The Company Secretary is the clerk lo the committee. The Principal, Director of Resour¢es and Operations, Head of Finance and Company Secretary are not members of the Remuneration Committee, and do not allend when their own salaries are under consideration. The School has given regard to the Higher Education Senior Staff RemuneTation Code published by the Committee of University Chairs. As at 31 August 2022, the Accountable Officerfs basic salary was 2.45 times12021 - 2.37 times) the median pay of stsff, where the median pay is calculated on a full lime equivalent basis for all stsff contracted on an annual salary basis. There were no performance related payments made to the Accountable Officer in 2021122. No Trustees received any remuneration or other emoluments in respect of their seNices as a member of the Board during the year12021 none). In addition to the Accountable Offi￿r, there was one further Trustee who was employed by the School part-lime in the year ended 31 August 2022 and received gross pay of £24,13312021- £21.3461 antj employer's pension Contributions of £1,207 12021 £1,067) in respect of that employment. No expenses were reimbursed to Trustees during the year12021 none). The numbers of employees eaming greater than £60,000 during the year were as follows.. 2022 No. 2021 No. £70,001- £75,000 Pension contributions in respect of these employees amounted to £3,63512021- £3,570). The aggregate remuneration, including employe¢s pension Contributions paid to key management personnel and employerfs national insurance, was £492,23712021- £479.3941. Key management personnel during the year consisted of the Principal. Director of Resources and Operations, four academic Heads of Department, Head of Finance and the Head of Development and Extemal Relations. City and Guilds of London Art School Lim(ied 42

Notes to the financial statements 31 August 2022 6 Staff costs and Trustees, remuneratlon 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 consequence$ of any neglect or default on their part. The insurance premium provided cover of up to a maximum of £2 million. 7 Comparatlve Infomiation Analysis of income and expenditure in the year ended 31 August 2021 between reslricled, endowment and unrestricted funds.. Y￿r lo 37 Augusl 2021 Total funds Get)&r81 Restn¢led Endowmsnt lund fvnds lund5 Noles Income andexp6ndilL¢re IrJcom8 8ndendowynents from.. Ch81it8bb 8ctiwl￿s Art Schoollees Don8lions 8ndIeg•¢￿& InvestmeF>I inGom8 & int&Trstfr¥ceN8d Olh&rEr£ding 8¢tiwlffjs Ofher Tot&lirKome 2. t19,330 224.213 62, 154 2,119,330 501.795 81,832 277.582 19,6r8 89.774 2.495.471 89.774 2.792.731 297.260 Exp&nditure on." Charitable 8Ctivities . Cosls Of0p8￿lIngIhe Art S¢ho . Te8ching steff 8FKlp8rsonnel Support costs Prprni5es Pmrnotions andpubiKity . Burs8n8s. scholsrship$ 8ndwzes Tot818xp8nditu 1, 101.557 947,356 408.934 8T,067 25.000 1,126,557 1,449 949, 150 408.934 87.067 9,890 365.352 36.339 2.937.060 345 355.462 355.80T 2,544,914 N&1 lexpendilu￿} iFwme b8foTr gaift$ on inv&Élm&nts Ir8nders (49,4421 (58.548) (36,339) (144.3291 Tr8n5f2rBehveefr7 Funds 37,779 7,779) Net 98in$ ort investments io 26,608 151,292 177,900 Net (expertditurel /incorntr 8n¢Yn8tmDvement in (11.663) (31,940) 77, 174 33.571 St8tÈmenE olch8nw ir) f8sew85 Net (exp￿￿tUr8)IincoMa nef movement (11,663) 131.940) 77,174 33,571 ReconcJIiai￿n OfFufr￿S Fund balances bmught fonv8rd on I Septtrmber2020 32,165 460,705 1,069.491 1.562,361 Fundbal8n¢es ¢aniedfonv8￿l et31 August 2021 20.502 428,765 1.146.665 1.595,932 City and Guilds of London Art School Limited 43

Notes to the financial ststements 31 August 2022 8 Taxatlon City and Guilds of London Art School Limited is a registered chanty and therefore is not liable to income tsx or corporation lax on income derived from its charitable activities, 8S It falls within the various exemptions available to registered charities. 9 Tanglble fixed assets New Tools and computer Web$it• equipmènt equipment Fixturès and fittin98 Total Cost At 1 September 2021 Addition5 At 31 August 2022 426,453 21.921 448,374 24,186 221,560 10,226 231,786 114.536 4,138 118,674 786.735 ,285 823.020 24,186 Depr•clatSon Al 1 Septernber 2021 Charge for year Al 31 August 2022 267,119 31,232 298.351 24,186 197,585 10.415 208,￿)0 107,859 3,663 111.522 596.749 45,310 642,059 24.186 Net book values At 31 August 2022 At 1 September 2021 150,023 159,334 23,786 23,975 7,152 6,677 180,961 189,986 10 Investments 2022 2021 Llsted invèstments and cash Opening market value at 1 September Additions Disposals Capitalised investment managef S fees Unrealised invèstment Ilossosl gains 1,500,319 119.616 1,338.059 508,637 1496,5101 1,794 148,340 1,500,320 109.506 1.609.826 2.422 174,0561 1,548,301 34.420 1,582,721 Cash held by investment manager Total market value of inve8lments al 31 Augusl Cost of listed investments- 31 August 1,450,141 830,155 Listed investments and cash held at 31 August 2022 comprised the following.. 2022 2021 Multi Asset Fund 1,548,301 1.548.301 34,419 1,582,720 1,500,320 1,500,320 109,506 1,609,826 Cash held by inve31ment managers All investments were dealt in on a recognised stock exchange. City and Guilds of London Art School Limited 44

Notes to the financial ststements 31 August 2022 10 Investmonts {conlinued} Al 31 August 2022, the following individual holdings were deemed material in the light of the market value of the portfolios.. Mafkat valuo %of portfollo Cazenove Charity Multi Asset Fund S Units GBP Accumulation Cazenove Charity MURI Asset Fund S Units GBP Dlstribution SUTL Cazenove Charty Responslble 16.S 2￿.072 843,823 448,405 29.0 At 31 August 2021, the following individual holdings We￿ deemed material in the light of the market value of the portfOl￿S.' Mathet value %of portfolffo 16.0 40.7 29.9 CBzenove Chaiity Multi AssetFund S Unlts GBPAccumul8lit Cazenove Ch8ftty Mulb Asset Fund S Unil$ GBP Distribution SUTL C8zenove Charity Responsffbl& 258, 100 654,482 481,lit 11 Stocks 2022 2021 Materials for re581e 23,825 24,472 12 Debtor8 2022 2021 Student fees outstanding Other debtors PTepaymenls and accrued inwrn& 70,784 94.081 310 160,016 254,407 86,732 157.516 13 Creditors: amounts falling due withln one year 2022 2021 Student fees in advance Trade creditors Taxation and Social security Other creditors CBIL Loan Accrua5s and other deferred income City and Guilds Art School P¥operty Trust 1.308,408 3t,634 26,827 25,969 41.667 126,934 66,877 1,628,316 925,640 59.298 26.556 13,742 41,667 81,656 77,899 1,226.458 City and Guilds of London Art School Limited 45

Notes to the financial statements 31 August 2022 14 Creditors: amounts falling due afterone year 2022 202t CBIL Loan- payable bgtyveen tsvo and five years 135,006 135.006 180.556 180.556 The interest rale attached to the loan is based on a floating rate, and will be less than 2.99050 per annum. 15 Endowment funds The capital fund5 of the Art School include permanent endowments and expendable end¢)wments. The permanent endowments a￿ comprised of monies which must be retained as capitsl indefinitely. The expendable endowments are comprised of monies which were given to the Art School as capital but the￿ is no restriction on them being converted into expendable income. At1 September 2021 Gains, losses and transfers At31 August 2022 Income Expenditure Perman•nt èndowments Edward Chadwyck-Heal$y Bequest and Memorial Appeal Fund 179,814 179,814 14991 14991 19,3091 19.3091 170,006 170,006 Expendabl• endowrnents argaret Ba11ardie bequest Idun Ravndal M#mori81 Legacy Other endowments 528.096 1200,5001 {27,2391 298,357 261.188 179,567 966.851 {10,0001 13,4581 (213,9581 {13.5231 19.2951 {50.0571 237,665 166,814 702,836 Totsl •ndowm•nts 1,146.665 1214,4571 159,3661 872,842 The income from the endowment funds is included in Un￿StriCted general funds. All Septefflber 2020 Gains, 10&ses and lTrnsf&rs A13t August 2021 Income Expendi￿re Pem7anentendowmeftls Edwartl Chadwyck.Healey Sequ8st ènd MemofrialAppeal Fund 761,632 161,632 (219) (219) 18,401 18,401 179,814 179,814 Expendable endowments Marg8r8t B8118rfie bequest Idun Ravndal Men7tyi81 Legacy Otherendowments 461,509 (17,500) 82,087 526,096 252,706 193,644 907,859 (20,279) (36, 120) (73,899) 28,761 22,043 132,891 261, 188 179,567 966,851 Total endowments 1,069,491 (74, 118) 157,292 1, 146,665 City and Guilds of London Art School Limited 46

Notes to the financial statements 31 August 2022 16 Restrlcted funds The income fund5 of the Art School include ￿$tricted funds comprising the following unexpended balances of donations and grant5 held on trusts lo be applied for specific purposes.. Realisthll unreali5ed gains on Invest B4￿ce Septernber 2021 vosi- Au9USt 2022 Donations Exwdituie Annual Bursarie5 Fund Saul 8uTrary Fu• Charle$ NoblelPeter Chance sthobryhip F Rvdney Burn RA Scholarship Fund Simn BirGh Memori81 Burg8ry Fund E¢ilh And Stephen 8ufflett Memori81 Fund Dawd B¥iiarfie Memori01 Award FUTh Idun Ravndal Travel Avrard Otherprizeand spectal funds Books& PapErCon$erY•tion PWe¢t Re￿¥¥yAppeal 25.107 44.190 27.890 A5.831 eo.707 4.283 41.734 2.05S 24,55S 112,40B 20,000 428,765 39S.2$9 {292.0121 21J,J8$ 42,427 1.899 1,072 {2.4e21 4&ts3J n,229 42OB 3&,$1S 932 11462 3.102 1fj5 1.604 79 (71 12,se21 {2.2601 13.780 122.4881 {1,3301 120.0001 (366.9281 10.425 409.021 114.6901 466￿93 Funds related to bursaries are now in¢luded in the top line 'Annual Bursaries Fund. The specific purposes for which the funds are to be applied are given by their descriptions in the table above. The main purposes are the awarding of scholarships, bursaries and prizes. Realise ￿￿￿8NSEd 98￿$ on esi -ments 8al8nce Balance n¥est. n￿nts 2020 DDnalion$ 2021 AmiualBu￿r￿S FunLI Saul8U￿•tyFtrnrf Gh8rtesNoble￿eterc￿anCesth4￿tsh￿pF RodneyBum RA SGhola￿h￿p Fund 106.321 287,982 (349.196J {50} 2&107 44T.196 21.890 45.831 80.707 3,248 4.38 2.769 4,551 8.020 23.104 31.965 86.909 3.366 s,$)1 ff53) Edtth andstephen Bvrnett Men￿￿81 Ftsnd D•vid60118rdls MemDrlalAwart Fund R4vnd•l Tr8velAward otherpriie an¢S￿le11￿n0S 8ooks & PaperCDnservatson 3.548 34.572 315 ?.065 162 1.516 Is) (471 425 4,144 219 2.091 4.283 4t.73 2.0$5 24.556 112.408 20. 428.765 f7.441 112.408 16.t22J 4SO.T05 tg.878 277.582 {35&80TJ 26.008 City and Guilds of London Art S¢hool Limited 47

Notss to the financial statsments 31 August 2022 17 Analysis of net assets between funds GeneT81 fund Restricted Endowment funds funds Total 2022 Fund balartc•s at 31 August 2022 ar• represented by.. Tangible fixed assets Investments Current assets Credi¢ors'. amounts falling due bwthin one year Creditors.. amounts falling due 8ft¢r one year Total net assets 180.961 243,286 1,370,165 180,961 1,582.721 1,370,165 466,593 872,842 (1,628,318} {135,006} 31,090 11,628,316) 1135.OLKI 1.370,525 466,593 872,842 General ResbFCted Endowment fund funds funds Total 2021 Fund balances a131 August 2021 are rep￿sented by.. Tangible Bssels Investments c￿￿9￿1 Assets C￿d{lO￿.. amounts lalling due wlthin one year (1,226,458) CftBditors.' amounts falling due afterone year {180,556) Total net assets 20,502 189,986 34,396 1,203, 134 189.986 1,609,826 7,203, 134 428,76S 1. 146,665 (1,226.4581 (180,556) 1,595,932 428, 765 1, 146.665 The total unrealised gains as al 31 August 2022 constitute movement on revaluation and are a5 follows: 2022 2021 Unr•allsed Ilossesl gains Included abovo On listed inveslmèntg as at 31 August 2022 174,0561 148,340 Reconciliation of movements in unrea15sed gain$ Unrealised gains at 1 Seplernber 2021 Unrealised Ilossesl gains on listed investments arising in the year Tot81 unrealised gains at 31 August 2022 339,766 174,0561 265,710 191,426 148,340 339,766 18 Liability of members The Charity is constituted as a company limited by guarantee. In the event of the Art School being wound up members are required lo contribute an amount not exceeding £1 each. City and Guilds of London Art School Limited 48

Notes to the financial statements 31 August 2022 19 Leaslng commltments Operating lèasès At 31 August 2022 the Art School had the following commitments under non<ancellable operating leases.. Land and buildings 2022 2021 Equipment 2022 2021 Operating leases which expire.. Wrthin one year Be￿een kn and five years Over five years 190.063 799,032 864,898 1,853.993 293.429 661.120 1,025,351 1.979.900 31,714 31,101 28,859 56.704 62,815 85.363 The land and buildings operating leases relate to the sile at Kennington Park Road and the sub-Sease of premises in the Old Vauxhall Telephone Exchange in nearby Kennings Way from the Property Trust for the period up to the first b￿ak clause. 20 Related party tran$actlons The City and Guilds Art School Propety Trust has senior management in common with the Art School. The Art School charged a management fee of £51,921 12021- £43,796) to the Property Trust during the year. The Propety Trust charged the Art School rent. including VAT, of £300.369 12021 £293,307) and also charged a management fee of £14,376 12021 £14,376). No grants were ￿ceiVed from the Property Trust in respect of the ye8r12021- £nill. 21 Post balance sheet events There were no post balance sheet events to consider. City and Guilds of London Art School Limited 49