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<br>**----- End of picture text -----**<br>


|Reports||
|---|---|
|Reference and administrative information|<br>1|
|Trustees’ report|<br>3|
|Statement of corporate governance||
|and internal control|<br>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|<br>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 

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## 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 

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## 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. 

City and Guilds of London Art School Limited 

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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: 

- to ensure continuity of learning for its students notwithstanding the challenges presented by the COVID-19 pandemic; 

- to ensure ongoing full compliance with Office for Students expectations, the UK Quality Code and other relevant legislation; 

- to consolidate its Conservation offer following the recent introduction of a new subject area of book and paper conservation and consider further opportunities for expansion of its academic portfolio; 

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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. 

City and Guilds of London Art School Limited 

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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 

- MA Conservation student, Louise Davison, was appointed to the Board of Trustees of The Institute of Conservation (Icon) as an emerging professional. 

- The research findings of students in the final year of BA Conservation and students studying MA Conservation were presented at the online Conservation Symposium, a public-facing annual event in April to which professionals and interested parties from the world of Conservation were also invited. BA (Hons) Conservation: Books and Paper students worked onsite at Strawberry Hill House on a preventive clean of Walpole’s Library. 

- At the end of November second-year BA (Hons) Conservation: Books and Paper students visited the new studio at Lambeth Palace Library to see inside the facility and were able to study some incredible and diverse objects selected by the Palace Conservation team. 

- In December Conservation students supported the curatorial team at Watts Gallery to safely clean their picture frames and large scale sculpture collection. 

- For the stone module of the second year of BA Conservation: Stone, Wood and Decorative Surfaces, students were assigned a commemorative marble tablet that had been stored in the crypt at Kensal Green Cemetery, one of the “Magnificent Seven” cemeteries that opened within London in the 1830’s and 1840’s. Students assessed, proposed a treatment and carried out conservation work. 

- The Department was pleased to contribute our knowledge and expertise to the ICON Environmental Sustainability Network Spring Twitter Conference. 

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## Trustees' Report | Year to 31 August 2022 

## Activities and achievements (continued) 

## STUDENT SUCCESSES, COLLABORATIONS AND OTHER ACTIVITIES (CONTINUED) 

- In March, second year Conservation students on our Stone, Wood and Decorative Surfaces BA course presented the findings of a conservation project undertaken at Southwark Cathedral. The students carried out investigations of three areas of the Cathedral, looking at the history of each area, the use of replacement stone and the condition of the building fabric. Each group presented their findings plus recommendations for the care, maintenance and conservation of their area. 

- Books and Paper Conservation student and QEST Scholar Jonathan Wright was included in the exhibition ‘The Art of the Exceptional, A Jubilee Celebration of Makers’ at Fortnum & Mason. Over the Easter Break, students of our BA Conservation: Stone, Wood and Decorative Surfaces course worked on an additional special project to make nearly 100 feet of cast 'composition' ornament for fabricating a 'Watts' style frame for the Conservation and Technical Research Department at the National Gallery of Canada. 

- In May second year BA Books and Paper Conservation students enjoyed much-anticipated site visits to a leather tannery, leather conservation centre and The National Archives to support their studies. In June MA Conservation student Nicola Shreeve was announced as a QEST Scholar, with funding support towards her studies and project to conserve the monument to Sir Richard Pecksall (d.1571) in the Chapel of St Edmund, Westminster Abbey. 

## Carving 

- In November carpenter and framer and Society for the Protection of Ancient Buildings Fellow, Toby Slater, took up a two-week placement in the Carving Department, learning ornamental woodcarving alongside our Woodcarving and Gilding students. Our Carving students visited the SPAB’s Old House Project in Boxley, Kent to learn more about the Society’s work saving at risk buildings and to further contextualise their own learning through this live project. The Art School is delighted that our two organisations are able to share and exchange knowledge and to promote the teaching of critical craft skills in the UK that are vital to maintaining our built heritage for the future. 

- A new collaborative project with Knole, a National Trust Property in Kent, began for a student to carve reproductions of two 17th century English elbow chairs for the collection. 

- The Historic Buildings, Parks and Gardens 2021 event took place in November returning to the QEII Centre in Westminster alongside the AGM of the Historic Houses Association. Students and staff demonstrated the stone carving and lettering skills to visitors. 

- ‘The Last Shift’, a provoking bas-relief sculpture by 2021 BA Carving: Architectural Stone graduate Dan Russell, was donated for public display by the Freedom From Torture charity to the Guy’s and St Thomas’ Hospital Trust, in acknowledgement of the tremendous work of NHS staff during the Coronavirus pandemic. 

- BA Carving: student Clive Bates won the Art School-wide annual Fishmongers’ Company Menu Design Prize. His design will be used by the Company throughout the rest of the year at their events. Second year BA (Hons) Historic Carving: Woodcarving and Gilding student Jo Grogan appeared on BBC Country File at Compton Verney discussing the work of Grinling Gibbons and the importance of training and the passing on of specialist craft skills from generation to generation. 

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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 

- In March Jo was awarded the bronze award in the 3D modelling category at The Goldsmiths’ Craft and Design Council Awards and in summer 2022 took part in the television series the Prince’s Master Crafters creating a piece for the collection at Highgrove House. 

- Woodcarving and Gilding graduates Jim Patrick and Anastasya Martynova were included in Homo Faber 2022 in Venice. This celebration of the best of European, and on this occasion Japanese, craftsmanship comprised 15 exhibitions, 22 curators and designers, 12 Japanese National Living Treasures and over 850 unique works crafted by more than 400 designers and artisans from 43 countries at Fondazione Georgio Cini, organised by the Michelangelo Foundation. 

- In April a number of carving students and graduates were shown in the ‘Art and Ornament Exhibition’ at Dalkeith Palace, a celebration of present-day art and craft in collaboration with the Master Carvers’ Association and friends, to commemorate and celebrate the legendary Baroque Master, Grinling Gibbons. 

- Third year BA: Carving: Woodcarving and Gilding student Daniel Ponde won first place in the National Joiners and Ceilers Annual Competition 2022 in the woodcarving category. 

- Several 2022 graduates of our BA (Hons) Historic Carving: Architectural Stone Carving were exhibited by Joanna Bird Gallery following the degree show exhibition. 

- Two Temple Place invited us to contribute the skills and knowledge of one of our tutors to their inaugural Artists Research Residency programme and tutor Sarah Davies spent the day with the artists exploring the importance of historic hand skills such as woodcarving. 

- 2021 MA Carving graduate Borys Burrough was awarded a commission following the Art School’s open call for recent woodcarving alumni, to create a carved, polychromed statue of St Dominic, for the Cours Notre Dame des Victoires, a Dominican Convent in Northern France to mark the 800-year anniversary of the Saint’s death. 

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Trustees' Report | Year to 31 August 2022 

## Activities and achievements (continued) 

## STUDENT SUCCESSES, COLLABORATIONS AND OTHER ACTIVITIES (CONTINUED) 

## Fine Art 

- In November, alumni, students, tutors and fellows exhibited work at the 2021 Woolwich Contemporary Print Fair. The Art School’s annual Prize awarded to an external printmaker exhibiting at the fair was given to Sue Wyllie providing 3 days in the Art School Print Room working alongside tutors, fellows and students. 

- 2019 MA Fine Art Alumna Maddie Yuille was a finalist in the 2021 Ingram Collection Prize and exhibition. 

- A CGLAS Painter-Stainers Decorative Surfaces Fellow for 2021/22 was named as MA Fine Art graduate Yuki Aruga. The fellowship focuses on historic techniques such as gilding, fresco painting, trompe l’oeil and scagliola and provides specialist training in traditional processes with professional mentoring from the Painter-Stainers. 

- MA Fine Art students Emerson Pullman and Thomas Cameron and recent BA Fine Art graduate SinaSophia Schmidt were selected for London Paint Club’s inaugural exhibition in January and February 2022. 

- We were pleased to advise on a new events programme called In Practice launched by the PainterStainers’ Company to supplement professional practice learning for Fine Art students, graduates and creative practitioners. 

- In May 2022 third year BA Fine Art student Finn Johnson was announced as one of the winners of the 2022 Freelands Painting Prize, chosen from nominations from Art Schools across the UK. The Art School is very proud to have had a winner each year since the Prize began. MA Fine Art student Harriet Gillet had a two person show at Soho Revue gallery in June 2022. 

- MA Fine Art Part-Time Year 1 students presented an offsite 4-day exhibition at The Pavilion Mile End entitled ‘Meet Me Halfway’ and held an in-conversation event with Art Critic (and now Art School Trustee), Tabish Khan. 

- BA Fine Art Year 1 and 2 students self-organised an offsite interim show of their work at Ugly Duck near London Bridge as part of their professional practice training. 

- MA Fine Art student Sarah Lang was selected for the prestigious Bloomberg New Contemporaries touring show 2022 with her video work exploring the history of women’s football. MA Fine Art student Jen Roper was shortlisted for the Paint Britain Contemporary British Painting Prize 2022 and was shortlisted for the Wells Art Contemporary Prize 2022. 

## 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). 

City and Guilds of London Art School Limited 

15 



## 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: 

- Latest operational plan for the remainder of the current 2022/23 academic year in response to ongoing external challenges; 

- Revised budget and financial forecasting for the financial year 2022/23 and its impact on the financial plan associated with the Strategic Plan for the period 2022-2027 

- Steps taken in pursuit of the objectives of the 2022-27 Strategic Plan, including in ensuring its student recruitment targets are met. 

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. 

City and Guilds of London Art School Limited 

16 



## 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: 

- 1.to support sustainability through improved Financial Performance by: achieving a sustainable operational surplus to provide for capital development, special projects and contingencies; containing staff and other costs to levels of income in proportion with areas of growth; and ensuring departmental budgeting is strategically driven to support our vision; and 

- 2.to enhance financial sustainability through increased Fundraising and Development activity by: expanding the number of external funders and partnerships to support the Art School’s bursary and capital development needs and enhance its reputation and profile; raising the Art School’s public profile through increased partnerships, external projects and media coverage and increasing our presence and activity within the local community; and broadening the basis for fundraising appeals through a focus on defined special projects. 

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 

City and Guilds of London Art School Limited 

17 



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 ￿ y*ar
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