Re8lstered Charity Number: 1146648 Company number: 07752686 St Matthew's House Llmlted ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS For the year ended 31 Au8USt 2021 St Matthew's House Umlted Content5 P48• Legal and admlnlstrative detalls Trustees, annual report Independent examlner's report Statement of financlal actlvltles io Balance sheet li Note5 to the accounts 12-18 St Matthe￿5 House Umited al and admlnlstratSve Informatlo Charlty number 1146648 Company number 07752686 oiher names the ¢harlty is known by. The Art House Trustees J McQuater The Rev'd G Naylor Chalrman The Rev'd W H Thomas- Vice Chalrman S Smlth G R Millar A C Knowles CA Gracey Company 5e¢retary J M Hanks Reg15tered offlce 8 Backflelds sheffield SI 4HJ Inde￿fident Examlner susan Cochrane, FCA Employee of.. VAS Communlty Accountancy The CSrcle 33 Rocklngham Lane Sheffield SI 4FW VISCOmmun￿ Account4h¢v St Matthe￿5 House Umlted Trustee< annu￿ report For tho year ended 31 August 2021 The Trustees. who are also Dirertors of the Company forthe purposes of the Companies Act. present thls Annual Report and Financial Statements of the company for the year ended 31 August 2021. The Trustees confimi that the Annual Report and Financlal Statements have been prepared In accordance wlth the Statement of Recommended Practice.. Accountlng and Reportln8 by Charltles preparlng their accounts in accordanee the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 10211second editlonl. the Flnanci31 Reportlng Standard applicable In the Unlted Kln8dom and Republlc of Ireland IFRS1021 and with the Charities Act 2011. ObJertlv•s and publlc benefft The charity's objects are speclflcally restrlcted to such purposes whlch are ex¢luslvely charitable In the laws of England and Wales, and for the publlc beneflt. as the trustees shall In thelr absolute dlscretlon determlne, and In partlcular Ibut not excluslvelvl.. i. to beneflt the inhabitants of the clty of Sheffield, and In particular those Inhabltants Ilvin8 In the eccleslastlcal parlshe5 In the dlocese of Sheffleld wlthout d15tlnctSon of sex, sexual orlentatlon, race or of polltical, religious or other opinions by brin8lng together the statutory, voluntary and other or8anlsatlons and Inhabltants In a common effort to.. a. Improve the physlcal, mental/emotlonal and splritual well.beln8 of Inhabltants, particularly inhabltants living wlth mental health dlfflcultles,. advance educatlon Ilncludlng rellgSous, moral and physlcal educatbonl.and c. provlde facllities in the Interests of soclal welfare for re¢reatlon and lelsure tlme occupatlon wlth the oblectlve of improvlng the condltlons of Ilfe of the sald Inhabltant5. In furtherance of these objerts but not otherwlse, the trustees shall have power to.. establlsh or secure the estab115hment ol a community centre,. maintaln or manage or co-operate wlth any statutory authorlty In the malntenance and management of a communlty centre: for actlvlties promoted by the char5ty In furtherance of the above objects. In settlng the oblectlves and plannlng the actlvltles the Trustees have glven careful conslderatlon to the Charlty Commisslon'5 8eneral guidan￿ on publlc beneflt and fee char8in8. VAS CommUn￿¥*￿￿￿tanry St Matthew'5 House Limlted Trustees. annual report- contlnued For the year ended 31 August 2021 Summary of maln activltles The Board of Trustee5 are extremely grateful and proud of the marvellous team who work at the Art House. Despite parts of the year still disrupted by Covid restrlctions the Art House tontlnues to operate, servin8 the communlty with a programme of commercial art and pottery acllvlties and a wellbelng offer to 5UPPOrt people who are vulnerable and Ilving with mental health issues. During this year the Art House has Strengthened under the capable leadership of our Interlm director, Andrew Seaton. With h15 Strong business background Andrew has Sutcessfully redeveloped the high level statements of and core values for the charlty, In collaboration wlth the Board and management team; reviewed the Art House'5 business model and implemented changes that simplified the strurture and operations,. developed a flnancially 5LlStalnable model for the Art House's operatlons with kev performance Indlcators across the department's. A new flnance manager, Jamle Brown, has made an IncredSble contrlbutlon to the management of our fSnances. Jamie took the lead on swltching our services to more c05t.effective agreements, consolidating our finances and improvlnB our suite of financial reports. He has brought a new clarltv to reportlng and 15 a key member of the team. Jamie is in close contact with both the management and the trustee board and Is a member of the finance Sub committee which meets each month. Fund raising was a key actlvity durSng this time and the charity Was Successful In a number of fundln8 8rants to help towards Covid recovery costs. A5 a consequence of the restrutturln8 Wlth the closure of the new Kitchen and the Art programming work bein8 overseen by the pottery manager the two staff took voluntary redundancy, The pottery continued to be popular despite the openln8 and clos5ng of the Art House and the Ilmlt on class sizes due to social distancin8. As a thank you to the pottery Open Studio members for thelr on-going flnancial support, the Board hosted an open studio open house week in the run up to the Christmas and New Year shut down. Work has been done on streamlinlng the Commercial Art programme ready for the post covid reopenlng. Plus work has been done on enhancing the Wellbeing model in readiness for full roll-out in the new year. Throughout the year, we continued to deliver a weekly on-line wellbeing offer to our vulnerable participants which was well received. And we have launched the Art House new website that offers a streamlined booking system. To ensure the fabric of the building is malntained a quinquennial revlew was carried out and a programme of repoirs identified which will be overseen by a new bulldings tommittee wilh a budget rlngfenced for the work. In addition, the lower Bround floor has been painted and we now have the pottery shop on site as well as on-llne. The Board would like to thank Liizie Lees for her role as Board meetlng secretary and welcome lan Burgess who has taken over the role. VA5 Comrnunty A¢¢ountsncv Sl Matthe￿$ House Umlted Trustees, annual report- ￿ntInUed For the year ended 31 Aulust 2021 Summary of main activities l¢ontlnuedl Wellbeln8 Classes: Tara Brown, our wellbeing manager, has malntained a wellbeing offer during the year but this offer has been reduced wlth refocuslng of her role on fundraising and bid writing. External tutors have also maintained a wellbelng offer. At the tSme of wrltlng new mode15 for our wellbeing are belng deslgned and the plan is for them to be partly commercial. Tara is u51n8 a prototype of our"Open Studlo" model for those wantiri8 to access wellbeing servlces. Moving out of the pandemic more of her time wlll be slngularly devoted to the management of our wellbeing offer, the buildin8 up of eternal relations and the partner5hlp for exhibltlons In the space. Commercl*l art and pottery: Throughout the year pottery has maintained and exceeded its targets. Mike 5cown, our pottery manager, had shown IncredSble imaglnation and flexSbllity In respondlng to the varSous challenges of the period. Pottery has been the maln source of Income and to the close worklng relatlonshSp of Andrew and Mike all the courses we offer have been put on a more profltable basis goin8 forward. De5plte the challenges posed by Social dlstanclng the courses have managed to 8row thelr proflt marglns. Over the course of the year we dld Identify the Commercial Art Programming Manager's job at risk and Llsa Parke5 took voluntary redundancy. L15a had contributed a lot to the Art House over the years and we thank her for her service. Art programs were le55 successful during th15 perlod and we decided to focus on the pottery model, which Is the largest Income generator. Management Structure The flatter mana8ement 5trurture brought In lust before the pandemlc was tweaked wlth the appointment of Andrew Seaton as Interim Strategit Lead on a part-time basis. We felt thls was necessary to provide the leadership to see us through the next stage of our development. We feel vindicated in this and are pleased with the results. At the time of wrlting we have now appointed, through open competltlon, a new permanent part tSme Strategic Lead Ben Clowes to bulld on Andrew's work. Andrew has agreed to stay involved through one of the board's working subgroups. 8en has made an excellent Start. The board met bi monthly during thls period. Its sub.committees wlth a focus on Finince and HR have met regularly in-between board meeting5. St Matth￿S House Limited Trustees. annual report- contlnued For the year ended 31 August 2021 Summary of main activltle5 (Con￿nued) Particulor areas focussed on by the board.. l. The board worked with Andrew to hone our high level statements. 2. The board successfully managed to use our assets to build a worklng reseNe, achlevlng our reserve pollcy for the first tlme In seven years. 3. The board oversaw and instlgated a new pollcy of a sllght monthly overpayment on our loans. 4. The board sought to support staff and recognise their hard work in challenglng times through a generous taxable bonus at Christmas ahead of salary reviews in 2022. 5. The board has sought to st￿ngthen and diversify governance with the renewal of the finance Sub comrnittee and more frequent meetSngs. At the tSme of writlng the commlttees have been refreshed with 59me changes to thelr Membership and a new HR sub-commlttee Chair. In addition, a third sub-committee is being set up to oversee the upkeep of the buildin8S. Achlevement5 and Performanca al Finoncial Survival and an Improvin8 financial outlook. bl Clearer financlal reportlng has enabled the board to take more pToactlve deci5i0ns for the future. cl Courses continued to prove popular and have Improved Sncome generatlon. dl As a charity we have maintained a wellbeing offering. el KPIS have been Introduced for staff members and their areas of work. We have become more streamllned and focussed since the closure of the café. Thls has simplified our offer. Bl Staff have worked together to continue to maintain and improve an excellent offer. Renewed Interest In our exhlbition space5, tourse5 and Open Studio demonstrate that we have a stron8 and posltlve future. We have malntaSned the vast malorlty of our Open Studio subscrlptlons and numbers are 8rowln8 agaln. Postscrfpt Writing in April, 2022 it 15 remarkable to revlew the tlme between September 2020- August 2021. It was a challenging time, however 3 period where the charity was able to make great strides forward. The whole "covid" period caused us to make some difficult decislons but I believe this time has ultimately led to the strengthening of the overall position of the charity. There are still significant challenges ahead. We are always contemplating and working for the income of three months hence. but we now do 50 Wlth a stronger reserve and lower debts than at any point in the last seven years. Our greatest assets are our hard working and committed staff. Thi5 PQSltive report is a testament to them and we as a board are committed to them and their clients. It is my hope and prayer that this year we will continue to learn and grow, so that we can do more, reach more people, and greatly enhance our wellbelng work, for the sake of those we are called to serve. VAS Commuhity AtCDUntancy St Matthevls House Llmited Trustees, annual report- contlnuÈd For ihe year ended 31 August 2021 Flnanclal Revlew and Reserves Pollcy The ststement of flnancial actlvitle51s set out on pa8e 10 of the financlal statements. Income for the year amounted to £293,256 12020.. £427,884). Total expenditure amounted to £305,611 12020: £356,514). Net movement In funds for the year was a deficit of £12,355 12020.. surplus £71,370) resultin8 in net assets at the year-end of £1,030,40612020.. £1,042,7611 The Trustees have considered the level of unrestrlcted funds whlch they see 35 approprlate to hold In reserve and have concluded that thls should be the equivalent of a minimum of three month's salarv expendlture. The Trustees have therefore set reserves at around £50,000. The Trustees wlll keep the level of reserve5 under review and monitor the level of reserves throughout the coming year. Free reserves at 31 August 2021 were £85,98212020'. £27,184) The flnanclal 51alements have been prepared on a goln8 concern basls. The Trustees have con51dered the level of funds held and the expected level of Income and expenditure for 12 months from authorlslng these f￿nancIal statement5. The bud6eted income and expendlture Is seen as 5ufflclent with the level of reserves for the charliy to be able to contlnue as a goln8 concern. The charlty also contlnues to receive the support of Its prlnclpal credltors and loan provlders to be able to adapt to any chan8es In the chèrlty's clrcumstances, The Trustees have concluded that the effects of Covld are non-adJustSnB to the charlty's abllity to contSnue to deliver Its prlmary purpose. However, Trustees recognise that challenges remain partlcularly with the inherent rSsk around the future generation of grant fundln8. Rlsk management The trustees have given consideration to the major rlsks to whSch the charlty is exposed and has satlsfied themselves that control systems and procedures are e5tabllshed in order to mana8e these risks. A rlsk re8iSter has been establlshed and 15 reviewed annuallv. VAS ¢ommurdtyActount3nry St Matthe￿S House Limited Trustees, annual report- contlnued For the year ended 31 Au8U$t 2021 Struclurei governance and management The charfjty Is governed by Its Memorandum and Articles of Assoclation and Is Incorporated as a company limited by guarantee. Members of the charity guarantee to contribute £10 In the event of winding up. The 501e Member of the Charlty Is Parochial Church Councll for the Eccleslastlcal Parish of Sheffield St Matthew In the Dlocese of Sheffleld. Governance Trustee5 are appolnted by the Parochial Church Councll of St Matthews, Carver Streèt, subject to the rules lald down in the Memorandum and Artlcle5 Of A550clatbOn. The term 'Board" Is deflned as the meetlngs of the trustee5. The Board'5 maSn duty Is to manage the Charlty, ensuring good governance and prartlce. Once appolnted, Trustees must make themselves aware of the terms of the Memorandum of St Matthew's House, familiarise themselves wlth the charlty's property, policie5, human resources, client needs and flnances. They wlll ensure that the staff are well looked after, that Investment of the charltv funds complies wSth the terms of the Memorandum, and that the strategy and objectives of St Matthew's house are developed. The Board wlll act excluslvely In the best interest of the charity. Therefore, a Trustee must not allow a 51tuation to arlse where thelr duty as a Trustee conflict5 Wlth their own personal interest. They are requlred to manage the charity and to ensure that the oblectlves of the chalr are met. The Board wlll spent time Inductlng new Trustees by Snforming them about: A brief history of the organlsation; StrategSc direction and mi55ion statement,. The structure of the organlsatlon, tommlttees, 5ub-commlttees, worklng groups, user groups, staff and volunteer5, and the partnership wlth the misslon of St Matthew's House,. and The bu51nes5 plan of St Matthew's House. The Board will ensure that new Trustees will know enough to be able to carry out thelr role. but not be overfoaded or mlslead them about the level of work involved. All Trustees give their time freely and no remuneration or expenses were paid in the year. VA5 Communltyfvttountary St Matthew's House Limited Trustees, annual report. continued For the year ended 31 Au8USt 2021 Struct re and mana emen Day to day runnlng of the charlty Ss delegated to a management team led by a Strateglc Dlrector. The management and finances are administered throu8h the Board of Trustees whlch meets bi- monthly. There are two 5ub.committees of the board whlch focus on Flnance and HR. They meet ahead of full board meetings and report to them. Reports on flnance, work to ralse funds, HR and outcomes and outputs monltorSn8 are recelved, Small Company Provlslons This report has been prepared In accordance wlth the speclal provlslon5 for small companles under Part 15 of the Companles Act 2006. The trustees declare that they have approved the Tru5tees' annual report above on and signed on behalf of the trustees bv.. Prlnt name,. Trustee * c CommUn￿¥ACt￿ntt￿ Independent examlnerfs ieport to the dirertors of St Matthew's House Llmiled l*he Companv) I report tothe charity dSrectors on my examlnation of the accounts olihe Companyforthe year ended 31 August 2021. Respon51ts111tles and basls of report As the charlws trusteès of the Company land also Its directors for the purposes of tompany lawl you are responsible for the preparation of the ac¢ount5 in accordance wlth the requirements otthe Companié5 Act 2006 I'the 2LKJ6 Act'l. HavSng satisfied myself that the accounts of the Company are not required to be audlted under Part 16 of the 2006 Act and are eliBlble for independent examination, I report In respect of my examinatlon of your charSt(s accounts as carried out undèr 5ertion 145 of the Charitie5 Ac¢ 2011 1.the 2011 Act'l. In carrylng out mv examination I have lollowed the Dlrections glven bythe Charity Commlsslon under se¢tion 1451SI Ibl of the 2011 Ind•pendent •xamln•Vs $taièm¢nt Slncè the Company's 8foss Income exceeded £250,000 your examlnef must be a member of a body 115ted In 5ectlon 145 of the 2011 Art. l Conflrm thai i am quallfled to undertake the examinatSon because l am a member of Instltutt of Chartered Accountants In England and Wales, whlch Is one of the listed bodles, I have completed my examlnatlon. I confirm that no matters have come to my altentlon in connectlon wlth the examlnatlon glvlng me causè io belleve.. accountln8 records were not kept In respect of the Company as requlred by sectlon 386 of the 2006 Act.. or the accounts do not accord with those records., or the accounts do not comply wlth the accountiThg requirements of section 396 of the 2006 Act other than any requirement that the accounts 8ive a 'true and falr view whlch Is not a matter consldered as part of an independent exarnlnatlon,. or the accgunts have not been prepared In atcordance wlth the method5 and prlnclples of the Statement of Recommended Practice for accountlng and reportlng by charltles appllcable to charitles preparln8 their accounts in accordance with the Flnanclal Reportlng Standard appllcable In the UK and Republlc of Ireland IFRS 1021. I have no concerns and havè tome across no other matters In connectlon wlth the examlnatlon to whlch attentlon should be drawn In this report In Drder to enable a proper understandln8 of the accounts to be reached. Signed.. Susan Cochrane FCA Employee of VAS Community Accountancy The Circle 33, Rockingham Lane Sheffield SI 4FW Date.. VAS CommuhtyAc C4 Cafa Èqulpmeht Wè8Q5 and 5alar4ES Suppcrt912020,. 151. An1￿￿5 01 wpport eoui Thtfharhy apportlon5 the 5UPPOrt C￿1$ brfwien Ihe chiiltsble •ndtradlw uThdertikM. Ch•rft•blt Tr*dkn¥ Artl¥ths Artmt 7ot• 1021 ¢h•rft4blv frndlni Totsl putt￿ &4rt W•gesand 54l•rf•s Offlce c05t5 Mlscellan¢cys Loan ihflrprt 88nkchar8èS Irrecoverable VAT Gtrverrnance 44,884 3S,945 11.336 10,021 2,05B 16,360 5,151 3.679 7.762 033 205 50,0$5 >9.624 19,09B IL054 2361 1&360 2.798 30.134 20.61fj I￿566 45,915 25,539 9,377 8,263 2,930 15,EB2 3,669 10.512 9,647 3,542 3,111 1.107 56,417 35,186 12,919 11,384 4,037 15.882 147,91Q ai,5 143.109 C￿+ Wa￿5 and salatles OlfKe rosts Mls¢Èl¥Deous Loan Interest Bank chargos Governance 1.598 1.467 539 475 168 548 4.795 1.598 1,467 539 475 548 4.795 20,932 168.872 IIL.575 36,329 Charft3ble artI¥it￿SSUppOrt coststotal £147,940olwhkh £￿Ill2020.. £Thlll le￿te5 iore5ts1ct9d funth. TradinE actiwt￿5 SUPPOrt Wst5 tatal £20.932 olwhich Énil12020'. Enlll relate5torestriCt8d lunds. 5t MatthRw'sHgus• Umlt4d Notsstoth4 Attountslcontlnued FortheyeDreThded 31 Awust 2011 10 Feos p￿•ble to lTrdtpeTrdente￿mlTr￿r'1 aryan11•t￿n 2021 2020 Ind•pA ￿￿nt￿x3fftInath￿￿Il• Ilntluded In Governance Costsl 1.050 11 TJrWleffixEd 4jsots loni i••*hokl Pv•yrtv FIKtur¢s. IKtlnis •nd •quknqrt Totsl As •t I SÈptembeT 2OZO A5 It Jl A￿lUSt 2011 1,3SJ.710 1383 710 33 165 1 416 875 33 165 1416 875 As ai i September 2020 CharÉe thls perlod A$4t JI Asjiust 2021 66,418 31,252 J97 97,610 11,967 N•tBook V•lue It 91 Auiu# 1021 I Olfj I Y07 231 AS It JI Au8ust 2020 1913 1319 205 12 Stotk 1021 1020 S¢orks h•ld ai th• y•orend 1,850 1,849 IJ D•btoii 2011 2020 Tr¥d* debtors Prepayments ind iccruid Iniorne 744 2,200 4,462 14 Q•dllOfSi •mo¥msi4llJwdu• wlthlnoneyq*r 2021 zo Trade credhor5 5undrycredltors&deposllS PAYE Attrua15 Prepald tradlni Income St MatthAws PCC Pens￿￿ VAT ,579 6,058 475 4,027 24,903 10,899 306 9,365 18,449 3,661 3,215 3,191 32,196 10,899 4(4) 13,383 21,832 Loan5 VA%CLyThnun5iwknntiTr¢¥ St MattI￿vIS Hollsè UMlt4d Notes totheAc£aunt$lu)nlnuodl Forth*y•Ar•ndèdglAuol¥t20ZI 15 Cr*thors'. arnov￿ts f411knidu••ft•r mty¥eth•Th On•￿11 2021 2020 8ank Loanj Other Ltsan 205.008 142,500 166,434 135,ro> 301 FSDanclal knStru￿¢￿tS n5 are repaYa￿e asfollow¥'. Wiihin one year 8#tween onÈ to two￿81% Btrtween two 1¢ fiYeyear5 (knr Il¥eyeais 18,449 24.894 96,546 226,068 21,832 22,802 71,666 206,966 Flnan¢lal Instrum¢ni$ me¥surtd ot amort15ed c051 comprls4 of a £165,95712020.. E173,1651 bank loan 6Kwided by Ch4ffty Bank whlth has 6.5% I￿terest rJte, a Bounce Back Lo•h of E50,CW 12020.. £NIII whlch had • Interest rate of 2.5% and an other loan ¢f £150,000 12020.. £150,000) from 5tVl*¢etyt Hou6Èwhlch h•d a 0% Interest rate. 16 R••trfd•d fvndi routht forwird C•vvb•d Tr•¥wlws lorw4id Inwm• EKyThdltuv• Arts Councll Grant R¢#rfct•d Flxed Fund Property R•5•ry•'. 19.638 926.973 17,7901 919,183 919 181 ArtsCourdcII GI￿t Thè luhd iepres•Thts nn•ncln8 liom The Art5 Coun£ll ta support th¢ dw•lopmtnt of onlln• claM•i, dt6lt&l eont•nL an onllne wellbelni portBI, prowslon olcore pacW15 and assodat@d stsff tosts. Pr•p•rty 1•s•rv•: The prcperty reser¥e ren•dsth• M¢book v•lue of ￿lsehol1 propèrtyflrnJnt*d frt¥* Mstdct•d fund5. Prlwyeorcofftporotlv¢ Brcughl Carrted Tm5Jer5 Jonvar In¢<¥ne ExpeAdlture Arts H*tstrkitdAxedAssttPuod PropertyResen Flxitsrts& Finlngs 31,5 111,862) 1*,658 934,763 17.750) 92A973 937663 3J5w 94661J VA5CanmUnltyAt￿￿Vntra **St Matthew's House Limited Notes to the Accounts (continued) For the year ended 31 August 2021** ## **17 Net assets by fund** |**Net assets by fund**|||| |---|---|---|---| |Tangible fixed assets
Net current assets
Creditors of more than one year
_Prior year comparative_
_Tangible fixed assets_
_Net current assets_
_Creditors of more than one year_|**General**
**Fund**
**£**
388,055
70,676
(347,508)|**Restricted**
**Funds**
**£**
919,183
-|**Total**
**2021**
**£**
1,307,238
70,676
(347,508)| ||**111,223**|**919,183**|**1,030,406**| ||_General_
_Fund_
_£_
_392,232_
_5,352_
_(301,434)_|_Restricted_
_Funds_
_£_
_926,973_
_19,638_
_-_|_Total_
_2020_
_£_
_1,319,205_
_24,990_
_(301,434)_| ||_96,150_|_946,611_|_1,042,761_| ## **18 Trustee remuneration and expenses, and the cost of key management personnel** The trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil) neither were they reimbursed expenses during the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil). The key management of the charity comprised the 8 Trustees as at the year end 31 August 2021 (2020: 8). The total employee benefits of the key management personnel of the charity were £nil (2020: £nil) ## **19 Related party transactions** No other transactions have taken place with related parties during the year, other than those included in note 18. VAS Community Accountancy 18