**Charity Registration No. 1146825** 


**Company Registration No. 07871063 (England and Wales)** 

# **ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING** 

## **ANNUAL REPORT AND INDEPENDENTLY EXAMINED FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31 DECEMBER 2020** 



**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING LEGAL AND ADMINISTRATIVE INFORMATION** 


## **Trustees** 

N Scott (Chairman) * CM Clough JL Hancock G Rashidi RG Ray L Studley H Willett J Wood 

* Members of the finance sub-committee 

**Chief executive** Alison Sharkey **Charity number** 1146825 **Company number** 07871063 **Principal address** Porthmeor Studio Back Road West ST IVES Cornwall TR26 1NG **Registered office** Porthmeor Studio Back Road West ST IVES Cornwall TR26 1NG **Independent examiner** Mark Williams FCA DChA RRL LLP Peat House Newham Road TRURO Cornwall TR1 2DP **Bankers** CCLA Investment Management Limited Senator House 85 Queen Victoria Street LONDON EC4V 4ET HSBC 1 Green Market PENZANCE Cornwall TR18 2SD 




## **ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING LEGAL AND ADMINISTRATIVE INFORMATION** 

CAF Bank Limited 25 Kings Hill Avenue Kings Hill WEST MALLING Kent ME19 4JQ Charity Bank Fosse House 182 High Street TONRIDGE Kent TN9 1BE 




## **ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING CONTENTS** 

||**Page**|
|---|---|
|Trustees' report|1 - 8|
|Independent examiner's report|9|
|Statement of financial activities|10|
|Balance sheet|11 - 12|
|Notes to the financial statements|13 - 26|





**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


The trustees present their report and financial statements for the year ended 31 December 2020. 

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's  Memorandum and Articles of Association,  the Companies Act 2006 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 UK and Republic of Ireland (FRS 102) (effective 1 January 201 9 )” . 

## **Objectives and activities** 

## **Our key objectives for 2020 were to:** 

Maintain the level of income from delivering courses with a minimum 85% fill rate across the year in line with budgets 

Deliver our programme of high quality courses and workshops maintaining the customer satisfaction level of very good and excellent at over 90% 

Deliver bespoke training and support to staff and tutors on customer care 

Maximise the potential of our new website to engage and inspire 

Continue to develop risk register for the charity 

Improve cyber security, functionality and performance of IT including re-organisation of the School’s electronic storage 

Recruit 3 or 4 additional Trustees with relevant skills for the charity 

Improve the communication and information for tutors (who do not have access to policies and procedures online) by introducing an intranet site. Improvements to tutor induction will also help increase understanding around their role, performance and expectations. 

Actively promote a safe culture and strong awareness of everyone’s safeguarding responsibilities in our charity led by Trustees; developed, monitored and delivered through the Leadership Team 

Improve productivity of the School through: 

ensuring procedures are working effectively across the organisation 

produce Standard Operating Procedures for key roles and activities 

increase investment in staff training especially onboarding of new staff 

Ensure Leadership Team works effectively together 

Improve IT infrastructure and support 

Refresh the business plan focussing on the next three years for the School to show a clear direction of travel for the staff team as well as other stakeholders, including a digital strategy and social impact and diversity plan for the charity as a whole 

Continue to explore digital offer 

Work to fundraise through grants to ensure sustainability of the youth programme over the next three years including covering some of its core overhead costs 

Develop our ambition to be a more sustainable art school by putting in place a plan of action. We want to be more careful and thoughtful in our practices. 

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## **ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## _**VISION**_ 

## _**We provide high quality tuition and inspirational spaces, bringing people together to make art.**_ 

**Our Values** (how we do things; our culture): 

**We are creative** – _passionate about our mission, resourceful and innovative._ **We are courageous** – _challenging ourselves and others to keep learning._ 

**We are caring** – _we work collaboratively with a generous spirit striving to deliver quality in everything we do._ 

## **OUR AIMS** 

The charity's objects are specifically restricted to advancing the education of the public in the appreciation and practice of the visual arts in particular, but not exclusively, by the establishment and maintenance of an art school in St Ives in the county of Cornwall. 

**Our mission is to enrich people’s lives by nurturing and enabling their creative spirit. We bring people together to make art, providing high quality tuition and inspirational spaces.** 

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**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **Achievements and performance Review of activities and achievements in 2020** 

In 2019 we laid out an ambitious agenda for ourselves to pursue in 2020. In the early part of the year, we had good levels of bookings and a newly expanded team in place. Then in February we became aware of the looming threat of Covid-19 and its potential to impact on the School. We held emergency meetings with senior staff and Trustees to attempt to calculate the risks to the charity and assess our financial resilience. By early March we were already implementing health and safety measures. On 20 March the School closed in line with government restrictions. In the same week we launched our new website, a major milestone for the School after several years of development. We remained closed until 24 August, closing down again in November to briefly open again for one week in December. The School took advantage of the Job Retention Scheme furloughing around **78%** of its tutor team, all those who were eligible, and most of the administration staff team. Only a skeleton team remained unfurloughed during the first national lockdown, to process the many hundreds of cancellations and to launch a fledgling online offer to our community of students. One of our aims had been to build a tutor intranet. This now became critical and we quickly put together a shared space for staff, tutors and Trustees to share information and updates. 

When the School was able to re-open to some students from 24 August to November, it was with reduced course numbers and with only one studio operating. Due to the social distancing restrictions, we were unable to run any workshops in the year. This included our regular weekly life drawing and our Sunday sessions for children and young people. We also had to postpone our funded Culture Camps for teenagers. With continued restrictions this may still have to be adapted to going online or postponed into late Autumn 2021. Covid-19 safety controls were put in place following a risk assessment resulting in a substantial amount of investment in staffing costs (4 additional temporary studio technicians were appointed) and health and safety measures to ensure the School was a safe place for staff, tutors and students. This was a significant piece of work and cost to the School, but we were able to open for the short amount of time at reduced capacity which students and tutors who were willing to teach appreciated. These additional costs and reduced student numbers inevitably affected the net income earned. However, the studio staff team responded admirably during this time and we learnt a lot reviewing and improving several processes and procedures which are likely to remain into the future. 

In the first half of 2020 the financial forecast for the School was bleak with a risk that our reserve would struggle to see us though into the following year without redundancies. The School was not successful in securing any other emergency grant in this period other than the small business grant funding for all businesses in receipt of small business rate relief. However, this, the use of furloughing and a three month rent holiday from our landlords The Borlase Smart John Wells Trust, enabled us to keep our costs down substantially. In November we received grant assistance from the Kickstart Grant Scheme and the Community Led Local Development Programme, both of which are funded by the European Regional Development Fund. The School was able to invest in broadcast-quality recording equipment, studio lighting and training to deliver a professional, high quality online learning experience enabling this side of the charity to grow and improve rapidly. 

The success of the online programme has enabled the School to weather the storm in a way we had not anticipated back in the early parts of the year. The decision to risk incurring the costs of remaining partly operational to deliver the online programme versus fully closing, proved to be challenging but beneficial. Over 8 months we ran 21 webinars ranging in price from £5 - £20 and 5 online courses. The Facebook group we created at the beginning of lockdown, as a space for students attending the sessions to meet and share ideas, is now a vibrant community with over 1,200 members.  Our online programme enabled us to continue to deliver substantial public benefit to many people who have valued the community, support and inspiration at a time of huge isolation and stress for many. It has laid the foundation for some new and exciting ways of working. 

The skills of the staff team were utilised and developed resulting in the promotion of an Administrative Assistant to the role of Digital Production Manager.  Existing studio technicians, an administrator and Youth Arts Manager were trained to support the DPM on the technical skills needed to use the new broadcasting equipment.  Short promotion films of courses advertised were produced by the Youth Arts Manager who taught herself new skills. 

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**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


The Trustees would like to thank the tutors who stepped forward to innovate during this difficult time, the staff who built and developed the programme at immense speed and with minimal support.  In addition, the Trustees would like to thank the studio staff team responsible for keeping the studios safe with additional measures when it re-opened. 

Finally thanks go to our community of students who have been patient, enthusiastic and generous throughout. 

## **Financial review** 

The results for the year are shown in the statement of financial activities on page 9 and show net  incoming resources for the year of £ 16,45 4, which includes grants received in the previous year and spent in the current year. 

This result together with the reserves brought forward of £176,143 (2019: £184,233) gives a total reserves figure of £ 192,59 7  (2019: £176,143). Of this amount £145,406 (2019: £143,890) relates to free reserves (not included within restricted or designated funds) and this is in line with our reserves policy.  Designated funds totalled £40,230  (2019: £28,679) and restricted reserves totalled £6,961 (2019: £3,574). 

## **Reserves policy** 

We have designed the School’s reserves policy to provide security to make plans and ensure the School can deliver its charitable mission. It responds in particular to the School’s dependence on earned income. 

The reserves policy supports the School in the event of serious disruption to income. It also supports the need to cover seasonal fluctuations in income by operating a healthy cash flow. 

In view of the above, the trustees have decided that it will be prudent to aim to keep four months running costs as a General Reserve.  Due to the disrupted nature of 2020 this figure will be based on our expenditure forecast for 2021 which equates to a balance of £145,000 in General Reserve. 

The purpose of the designated funds is explained in Note 20. 

Covid-19 has had a huge impact on the income generation for the year. Over the full year we lost a significant proportion of our face to face income for 2020, originally budgeted at £426K. We have been able to respond to the challenge of maintaining our reserves in line with our Reserves Policy by furloughing staff through the government Job Retention Scheme, accessing the small business grant funding and replacing some of our lost income through pioneering new income streams. Our 2019 accounts showed free reserves of £143,890. We drew on this reserve at different points in 2020. As we enter 2021 we are still closed to the public and any plans for reopening are looking at operating at initially 40% capacity. We would always expect to make a trading loss between December and March which is when we need adequate free reserve for cash flow purposes until our face to face teaching income increases with the start of the tourist season. With the impact of Covid-19 we predict this trading loss will be higher and for a longer period. For the charity to remain operating as a going concern it has been imperative to have enough reserve as we go into 2021 to carry us through what is always a challenging period amplified by the uncertainties brought on by Covid-19. 

## **Investment policy** 

The trustees regularly review the cash held by the charity and whilst maintaining access to funds for operational purposes, will place any surplus funds in an interest bearing deposit account when appropriate. 

## **Risk management** 

The trustees regularly review the risks to which the charity is exposed and ensure appropriate controls are in place to provide reasonable assurance against fraud and error. 

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**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **Tax status** 

The company being a registered charity is exempt from corporation tax. 

## **Public benefit** 

The charity complies with the public benefit requirement through its charitable objectives. The trustees confirm they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aim and objectives and in planning future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. 

Covid-19 seriously disrupted our plans in 2020. However, despite this there has been considerable achievements in the delivery of public benefit via a hugely successful diversification into online delivery. 

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**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **Key objectives for 2021** 

We remain committed to our three year strategic aim for the period 2020 – 2022 which is to engage with a more diverse range of students with programmes that deliver social impact and at the same time grow income. 

The impact of the Covid-19 crisis however means we also must adapt to the financial and operational challenges of another disrupted year for the School. Our hope was to use 2021 as a year of consolidation and recovery from 2020 but in the New Year we entered another national lock down. This is a huge stressor for the School’s finances, staff morale and stamina. However, despite this we are still determined to use the opportunities brought about through our adapting to the impacts of Covid-19 on the business to transform the future business model of the School in the short, medium and long term. In 2021 are key objectives are to: 

- Continue to strengthen the online offer. 

- Maintain our reserve to carry us through the predicted lean early months of 2022 and potential continued disruption from Covid-19. 

- Safely reopen to face to face teaching in line with government’s advice. Anticipated to be in May. 

- Develop innovative ways of using online programme to diversify our audience. 

- Rethink the business plan informed by our learning from Covid-19, focussing on articulating a clear direction of travel for the staff team as well as other stakeholders, including a digital strategy and social impact and diversity plan for the charity. 

- Recruit 3 or 4 additional Trustees with relevant skills for the charity. 

- Recruit two Kickstart roles to support our online programme including developing an online programme for young people. The Kickstart Scheme is a 6 month paid job part funded by the Government. Jobs from the Kickstart Scheme are open to 16-24 year olds, who are claiming Universal Credit, and are at risk of long term unemployment. 

- Ensure we support staff with the resources they need to do their job well and build a culture of wellbeing in the workplace. We will ensure all managers understand and implement our Staff Wellbeing Policy.  In addition, we will invest in: 

   - Improving how the leadership team work together. 

   - Re-building the team: some team members are new since 2020, some staff left in 2020, existing staff have had job changes, most have been working from home so we need to regroup with the new business model and staffing structure as the focus. 

   - Training and performance management. 

   - Developing an internal communication strategy. 

   - Improved office environment. 

   - Adequate staffing levels. 

   - Improved IT infrastructure, support and equipment. 

   - Develop a flexible balance between home working and office working. 

## **Structure, governance and management** 

St Ives School of Art is a company Limited by guarantee governed by its Memorandum and Articles of Association dated 5 December 2011.  It is registered as a charity with the Charity Commission.  In the event that the company is wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. 

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**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


The trustees, who are also the directors for the purpose of company law, and who served during the year were: 

N Scott (Chairman) * S Evered (Treasurer) * CM Clough JL Hancock G Rashidi RG Ray L Studley H Willett J Wood 

(Resigned 24 August 2020) 

* Members of the finance sub-committee 

The existing trustees identify suitable individuals, based on their skills and knowledge and the current needs of the board. We have introduced an annual skills audit to help clarify where to focus recruitment. To ensure the diversity of the trustee board we identify possible trustees through a combination of recommendation and public appeals. We use local papers, social media and the School’s own extensive database of past students to do this.  An open evening is organised where interested people meet with staff and existing trustees to discuss the trustee position available as a group. Following this process, applications are invited and interviews held. 

As part of the induction programme for newly recruited trustees, information is shared on the financial statements and future plans and they meet with key staff. We invite them to attend one of the weekly lunches with students and tutors to help build a more informal picture of what we do and provide context to their new role. There is an expectation of a minimum of three years of service. Every three years the board and individual will review their role and decide to step down or extend for a further three years. No strict time limit on length of service is in place. This reflects the challenge of recruiting high quality candidates in the region and the importance of retaining valuable organisational knowledge and experience. 

The Board meets four times a year.  It is also organised into working groups.  Finance meets on a bi-monthly basis and the others as and when required (HR and operations, fundraising, marketing and creative programming).  A permanent staff team led by Alison Sharkey (Director) carries out executive functions. 

## **Remuneration policy for key management personnel** 

The trustees consider the Chief Executive Officer, Alison Sharkey, to comprise the key management personnel of the charity. 

The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the charity, the trustees benchmark against pay levels in similar organisations. 

## **Statement of disclosure to independent examiner** 

So far that the trustees are aware, there is no relevant information of which the charity's independent examiner is unaware. 

Additionally the trustees have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant information and to establish that the charity's independent examiner is aware of that information. 

This report has been prepared in accordance with the special provision of Part 15 of the Companies Act 2006 relating to Small Companies. 

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**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


The trustees'  r eport was approved by the Board of Trustees. 

## **N Scott (Chairman)** 

Trustee Dated: 1 April 2021 

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**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING INDEPENDENT EXAMINER'S REPORT** 


## **TO THE TRUSTEES OF ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE)** 

I report to the trustees on my examination of the financial statements of St Ives School of Art (Limited by guarantee) (the charity) for the year ended 31 December 2020. 

## **Responsibilities and basis of report** 

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). 

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination,  I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. 

## **Independent examiner's statement** 

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies. 

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 

- 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or 

- 2 the financial statements do not accord with those records; or 

- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or 

- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. 

Mark Williams FCA DChA 

RRL LLP Peat House Newham Road TRURO Cornwall TR1 2DP 

Dated: 11 May 2021 

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## **ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

|**Unrestricted**<br>**Restricted**<br>**funds**<br>**funds**<br>**2020**<br>**2020**<br>**Notes**<br>**£**<br>**£**<br>**Income from:**<br>Donations and legacies<br>**3**<br>145,716<br>6,102<br>Charitable activities<br>**4**<br>242,491<br>-<br>Other trading activities<br>**5**<br>1,914<br>-<br>Investments<br>**6**<br>1,130<br>-<br>**Total income**<br>391,251<br>6,102<br>**Expenditure on:**<br>Raising funds<br>**7**<br>43,009<br>-<br>Charitable activities<br>**8**<br>335,175<br>2,715<br>**Total resources**<br>**expended**<br>378,184<br>2,715<br>**Net incoming/**<br>**(outgoing) resources**<br>**before transfers**<br>13,067<br>3,387<br>**Net income/(expenditure)**<br>**for the year/**<br>**Net movement in funds**<br>13,067<br>3,387<br>Fund balances at 1<br>January 2020<br>172,569<br>3,574<br>**Fund balances at 31**<br>**December 2020**<br>185,636<br>6,961|**Total**Unrestricted<br>Restricted<br>funds<br>funds<br>**2020**<br>2019<br>2019<br>**£**<br>**£**<br>**£**<br>151,818<br>7,146<br>39,856<br>242,491<br>395,156<br>-<br>1,914<br>6,671<br>-<br>1,130<br>1,226<br>-<br>397,353<br>410,199<br>39,856<br>43,009<br>42,545<br>-<br>337,890<br>376,748<br>38,852<br>380,899<br>419,293<br>38,852<br>16,454<br>(9,094)<br>1,004<br>16,454<br>(9,094)<br>1,004<br>176,143<br>181,663<br>2,570<br>192,597<br>172,569<br>3,574|Total<br>2019<br>**£**<br>47,002<br>395,156<br>6,671<br>1,226<br>450,055<br>42,545<br>415,600<br>458,145<br>(8,090)<br>(8,090)<br>184,233<br>176,143|
|---|---|---|



The statement of financial activities includes all gains and losses recognised in the year. 

All income and expenditure derive from continuing activities. 

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 

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## **ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING BALANCE SHEET** 

## _**AS AT 31 DECEMBER 2020**_ 

|**2020**<br>**Notes**<br>**£**<br>**Fixed assets**<br>Intangible assets<br>**13**<br>Tangible assets<br>**14**<br>**Current assets**<br>Stocks<br>**15**<br>8,325<br>Debtors<br>**16**<br>11,661<br>Cash at bank - deposit accounts<br>142,932<br>Cash at bank and in hand<br>180,005<br>342,923<br>**Creditors: amounts falling due within**<br>**one year**<br>**17**<br>(164,443)<br>Net current assets<br>**Total assets less current liabilities**<br>**Income funds**<br>Restricted funds<br>**19**<br>Unrestricted funds<br>Designated funds<br>**20**<br>40,230<br>General unrestricted funds<br>145,406|**2019**<br>**£**<br>**£**<br>2,390<br>11,727<br>14,117<br>8,415<br>14,031<br>146,110<br>130,669<br>299,225<br>(128,761)<br>178,480<br>192,597<br>6,961<br>28,679<br>143,890<br>185,636<br>192,597|**£**<br>-<br>5,679<br>5,679<br>170,464<br>176,143<br>3,574<br>172,569<br>176,143|
|---|---|---|



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## **ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING BALANCE SHEET (CONTINUED)** 

## _**AS AT 31 DECEMBER 2020**_ 

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements. 

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. 

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. 

The financial statements were approved by the Trustees on 1 April 2021 

## **N Scott (Chairman) Trustee** 

## **Company Registration No. 07871063** 

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**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **1 Accounting policies** 

## **Charity information** 

St Ives School of Art (Limited by guarantee) is a private company limited by guarantee incorporated in England and Wales. The registered office is Porthmeor Studio, Back Road West, ST IVES, Cornwall, TR26 1NG. In the event of winding up, registered members are liable to contribute a sum not exceeding £10 per member towards the debts and liabilities of the charity and the costs and expenses of winding up. At 31 December 2020 there were 8 members. 

## **1.1 Accounting convention** 

The financial statements have been prepared in accordance with the charity's governing document,  the Companies Act 2006 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 UK and Republic of Ireland (FRS 102)” (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. 

The charity has taken advantage of the provisions in the SORP not to prepare a Statement of Cash Flows. 

The financial statements are prepared in sterling , which is the functional currency of the charity.  Monetary a mounts  in these financial statements are  rounded to the nearest £. 

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 

## **1.2 Going concern** 

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees  continue  to adopt the going concern basis of accounting in preparing the financial statements. 

## **1.3 Charitable funds** 

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. 

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements . 

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. 

## **1.4 Incoming resources** 

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. 

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. 

Investment income is earned through holding assets for investment purposes such as shares and deposit accounts, it includes dividends and interest and is recognised on a receivable basis. 

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**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **1 Accounting policies** 

## **(Continued)** 

## **1.5 Resources expended** 

Expenditure is recognised when a there is legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Value added tax is not recoverable by the charity and as such is included within the item of expense to which it relates. 

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those of an indirect nature necessary to support them. 

## **1.6 Intangible fixed assets other than goodwill** Intangible fixed assets are capitalised at cost. 

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated. 

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the bases: 

Online development costs 

## **1.7 Tangible fixed assets** 

Tangible fixed assets costing £250 or more are capitalised and  are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. 

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: 

Fixtures and fittings 20% - 33% per annum 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in  net income/(expenditure) for the year. 

## **1.8 Stocks** 

Stocks are stated at the lower of cost and  estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost. 

## **1.9 Cash and cash equivalents** 

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 

- 14 - 



**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **1 Accounting policies** 

## **(Continued)** 

## **1.10 Financial instruments** 

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. 

Financial instruments are recognised in the charity's  balance sheet  when the charity becomes party to the contractual provisions of the instrument. 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 

## _**Basic financial assets**_ 

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. 

## _**Basic financial liabilities**_ 

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of  operations  from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. 

## _**Derecognition of financial liabilities**_ 

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. 

## **1.11 Taxation** 

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. 

## **1.12 Employee benefits** 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 

## **1.13 Retirement benefits** 

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 

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**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **2 Critical accounting estimates and judgements** 

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 

## **3 Donations and legacies** 

|**Unrestricted**<br>**Restricted**<br>**funds**<br>**funds**<br>**2020**<br>**2020**<br>**£**<br>**£**<br>Donations and gifts<br>15,395<br>6,102<br>Legacies receivable<br>15,000<br>-<br>Government grants<br>115,321<br>-<br>145,716<br>6,102<br>**Grants receivable for**<br>**core activities**<br>Government grants<br>92,653<br>-<br>Cornwall Council grant<br>22,668<br>-<br>115,321<br>-|**Total**Unrestricted<br>Restricted<br>funds<br>funds<br>**2020**<br>2019<br>2019<br>**£**<br>£<br>£<br>21,497<br>7,146<br>39,856<br>15,000<br>-<br>-<br>115,321<br>-<br>-<br>151,818<br>7,146<br>39,856<br>92,653<br>-<br>-<br>22,668<br>-<br>-<br>115,321<br>-<br>-|Total<br>2019<br>£<br>47,002<br>-<br>-<br>47,002<br>-<br>-<br>-|
|---|---|---|



HMRC - grants have been received totalling £92,653 (2019:Nil) to help with the furloughed staff whilst in a nationwide lockdown due to COVID-19. 

Cornwall Council - a grant has been received for £22,668 (2019: Nil). The local restrictions support grant has been issued to help businesses during the national lockdown and COVID-19 outbreak. 

- 16 - 



**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **4 Charitable activities** 

|||**2020**|<br>**2019**|
|---|---|---|---|
|||**£**|<br>**£**|
||Membership income|1,860|<br>3,780|
||Fees for delivery of art courses|240,539|<br>390,520|
||Sale of student artwork|92|<br>856|
|||242,491|<br>395,156|
|**5**|**Other trading activities**|||
|||**Unrestricted**|Unrestricted|
|||**funds**|funds|
|||**2020**|2019|
|||**£**|£|
||Sale of art materials and refreshments|1,914|6,671|
|**6**|**Investments**|||
|||**Unrestricted**|Unrestricted|
|||**funds**|funds|
|||**2020**|2019|
|||**£**|£|
||Interest receivable|1,130|1,226|



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**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **7 Raising funds** 

||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2020**|2019|
||**£**|£|
|Trading costs|||
|Artwork, materials and marketing|18,677|17,762|
|Staff costs|24,332|24,783|
|Trading costs|43,009|42,545|
||43,009|42,545|
|**Charitable activities**|||
||**2020**|**2019**|
||**£**|**£**|
|Staff costs|154,341|150,389|
|Depreciation and impairment|3,054|5,362|
|Cost of courses and projects|119,015|148,829|
|Repairs and maintenance|7,262|8,063|
|Research and development (incl. staff costs)|6,029|6,863|
|Bank charges and interest|6,958|8,612|
|Sundry expenses|809|2,244|
|Digital development|5,100|45,896|
||302,568|376,258|
|Share of support costs (see note 9)|34,472|38,397|
|Share of governance costs (see note 9)|850|945|
||337,890|415,600|
|**Analysis by fund**|||
|Unrestricted funds|335,175||
|Restricted funds|2,715||
||337,890||
|**For the year ended 31 December 2019**|||
|Unrestricted funds||376,748|
|Restricted funds||38,852|
|||415,600|



## **8 Charitable activities** 

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**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


|**9**<br>**Support costs**<br>**Support**<br>**costs**<br>**Governance**<br>**costs**<br>**£**<br>**£**<br>Operating lease charges<br>9,088<br>-<br>Establishment costs<br>8,084<br>-<br>Office costs<br>10,672<br>-<br>Professional fees<br>6,628<br>850<br>34,472<br>850<br>Analysed between<br>Charitable activities<br>34,472<br>850|**2020**<br>**£**<br>9,088<br>8,084<br>10,672<br>7,478<br>35,322<br>35,322|Support<br>costs<br>Governance<br>costs<br>£<br>£<br>13,047<br>-<br>12,369<br>-<br>8,760<br>-<br>4,221<br>945<br>38,397<br>945<br>38,397<br>945|2019<br>£<br>13,047<br>12,369<br>8,760<br>5,166<br>39,342<br>39,342|
|---|---|---|---|



Professional fees  include payments to the  accountants  of £1,520  (2019:  £7 00 ) for  independent examination and £ 850 (2019: £ 980 ) for other services provided to the charity . 

|**10**|**Net movement in funds**|**2020**|**2019**|
|---|---|---|---|
|||**£**|**£**|
||Net movement in funds is stated after charging/(crediting)|||
||Depreciation of owned tangible fixed assets|3,054|5,362|
||Operating lease charges|9,088|13,047|



## **11 Trustees** 

None of the trustees (or any persons connected with them) received any remuneration during the year . T rustees  w ere reimbursed a total of £Nil for travelling  and subsistence during the year  (2019 : £239 two trustees ). 

## **12 Employees** 

The average monthly number of employees during the year was: 

|Raising funds<br>Charitable activities - salaried staff<br>Charitable activities - tutors<br>Total<br>**Employment costs**|**2020**<br>**Number**<br>3<br>9<br>14<br>26<br>**2020**<br>**£**|**2019**<br>**Number**<br>3<br>8<br>15<br>26<br>**2019**<br>**£**|
|---|---|---|



168,363 163,050 

Wages and salaries 

- 19 - 



**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


|**12**<br>**Employees**<br>Social security costs<br>Other pension costs<br>There were no employees whose annual remuneration was £60,000 or more.<br>**13**<br>**Intangible fixed assets**<br>**Cost**<br>At 1 January 2020<br>Additions<br>At 31 December 2020<br>**Amortisation and impairment**<br>At 1 January 2020 and 31 December 2020<br>**Carrying amount**<br>At 31 December 2020<br>At 31 December 2019<br>**14**<br>**Tangible fixed assets**<br>**Cost**<br>At 1 January 2020<br>Additions<br>At 31 December 2020<br>**Depreciation and impairment**<br>At 1 January 2020<br>Depreciation charged in the year<br>At 31 December 2020<br>**Carrying amount**<br>At 31 December 2020<br>At 31 December 2019|**(Continued)**<br>8,006<br>9,083<br>2,304<br>3,039<br>178,673<br>175,172<br>**Online development costs**<br>**£**<br>-<br>2,390<br>2,390<br>-<br>2,390<br>-<br>**Fixtures and fittings**<br>**£**<br>29,680<br>9,102<br>38,782<br>24,001<br>3,054<br>27,055<br>11,727<br>5,679|
|---|---|



- 20 - 



**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


|**15**<br>**Stocks**<br>Finished goods and goods for resale<br>**16**<br>**Debtors**<br>**Amounts falling due within one year:**<br>Trade debtors<br>Prepayments and accrued income<br>**17**<br>**Creditors: amounts falling due within one year**<br>**Notes**<br>Deferred income<br>**18**<br>Trade creditors<br>Accruals<br>**18**<br>**Deferred income**<br>Arising from course fees received in advance<br>Deferred income is included in the financial statements as follows:<br>Current liabilities|**2020**<br>**£**<br>8,325<br>**2020**<br>**£**<br>-<br>11,661<br>11,661<br>**2020**<br>**£**<br>151,025<br>5,850<br>7,568<br>164,443<br>**2020**<br>**£**<br>151,025<br>**2020**<br>**£**<br>151,025|**2019**<br>**£**<br>8,415<br>**2019**<br>**£**<br>7,930<br>6,101<br>14,031<br>**2019**<br>**£**<br>117,347<br>4,102<br>7,312<br>128,761<br>**2019**<br>**£**<br>117,347<br>**2019**<br>**£**<br>117,347|
|---|---|---|



- 21 - 



**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **19 Restricted funds** 

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: 

|||**Movement in funds**|**Movement in funds**|||**Movement in funds**|**Movement in funds**||
|---|---|---|---|---|---|---|---|---|
||**Balance at**|**Incoming**|**Resources**||**Balance at**|**Incoming**|**Resources**|**Balance at**|
||**1 January 2019**|**resources**|**expended**|<br>**1**|**January 2020**|**resources**|**expended**|**31 December**|
|||||||||**2020**|
||**£**|**£**|**£**||**£**|**£**|**£**|**£**|
|Oxford|||||||||
|Innovation|||||||||
|Services,|||||||||
|Online|||||||||
|Training|||||||||
|Portal|-|-|-||-|1,215|(1,215)|<br>-|
|Superfast|||||||||
|Business|||||||||
|Cornwall|-|22,843|(22,843)||<br>-|-|-|-|
|National|||||||||
|Lottery|||||||||
|Awards|-|3,500|(3,500)||<br>-|-|-|-|
|St Ives|||||||||
|Rotary Youth|||||||||
|Donation|1,750|1,500|(1,750)||<br>1,500|1,000|(1,500)|<br>1,000|
|Cultivator|||||||||
|Internship|||||||||
|Programme|-|1,333|(1,333)||<br>-|-|-|-|
|West|||||||||
|Cornwall|||||||||
|Youth Trust|820|-|(820)||<br>-|-|-|-|
|Trinity|||||||||
|College|||||||||
|London Arts|||||||||
|Award|||||||||
|Access Fund|<br>-|794|(794)||<br>-|-|-|-|
|Wilhelmina|||||||||
|Barns-|||||||||
|Graham|||||||||
|Trust|-|4,500|(2,426)||<br>2,074|-|-|2,074|
|Cultivator|||||||||
|Networking|||||||||
|Development|||||||||
|Agreement|-|150|(150)||<br>-|-|-|-|
|The Cornwall|||||||||
|Museums|||||||||
|Partnership|-|436|(436)||<br>-|-|-|-|
|Cultivator|||||||||
|Braver|||||||||
|Recruitment|||||||||
|Placement|-|4,800|(4,800)||<br>-|-|-|-|
|CDC|||||||||
|Cornwall -|||||||||
|CLLD Project|<br>-|-|-||-|3,887|-|3,887|



- 22 - 



**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **19 Restricted funds** 

||||||**(Continued)**|
|---|---|---|---|---|---|
|2,570|39,856|(38,852)|3,574|6,102|(2,715)<br>6,961|



## **Purpose of restricted funds:** 

_Superfast Business Cornwall_ - Digital development. 

_National Lottery Awards_ - Funding towards running Culture Camps with Bronze Arts Award. 

_St Ives Rotary Youth Donation_ -  Young Artist Programme Funding received from Rotary St Ives is used to cover a range of youth activities at the School attended by mainly local children aged 6 to 18. 

_West Cornwall Youth Trust_ - This supports our Youth programme. It allows young people referred by local schools and key workers to attend our Porthmeor Young Artist Programme. 

_Oxford Innovation Services, Online Training Portal_ - Grant for professional services. 

_Trinity College London Arts Award Access Fund_ - Arts Funding for Award Moderation for the Pupil Referral Unit Culture Camp. 

_Wilhelmina Barns-Graham Trust_ - Funding towards running Culture Camps with Bronze Arts Award. 

_Cultivator Networking Development Agreement_ - The aim was to bring together three separate networks to help key organisations in St Ives to share audiences more effectively and introduce diverse artists and ideas to those networks. 

_The Cornwall Museums Partnership_ - Funding to enable attendance on Digital Leadership Retreat for Chair of Trustees and Director. 

_Cultivator Braver Recruitment Placement_ - The Braver Recruitment Programme, delivered by RIO as part of the Cultivator programme, offered and employment incentive to creative businesses to support them in diversifying their workforce and recruitment practices. 

_CDC Cornwall - CLLD Project_ - Funded by the European Regional Development Fund, for investment in broadcast-quality recording equipment, studio lighting and training to deliver a professional, high quality online learning experience. 

- 23 - 



**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **20 Designated funds** 

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes: 

||**Balance at**|**Resources**|**Transfers**|**Balance at**|**Resources**|**Transfers**|**Balance at**|
|---|---|---|---|---|---|---|---|
||**1 January 2019**|**expended**|**1**|**January 2020**|**expended**||**31 December**|
||||||||**2020**|
||**£**|**£**|**£**|**£**|**£**|**£**|**£**|
|Digital||||||||
|Development|<br>30,000|(27,844)|2,844|5,000|(5,000)|-|-|
|Subsidy||||||||
|Fund|15,700|-|(5,700)|<br>10,000|(2,500)|2,500|10,000|
|Capital||||||||
|Reserve|5,243|-|436|5,679|-|4,551|10,230|
|Wider||||||||
|Learning||||||||
|Development|<br>-|-|5,000|5,000|(5,000)|-|-|
|Studio||||||||
|Development|<br>-|-|3,000|3,000|(3,000)|-|-|
|IT Equipment||||||||
|to Support||||||||
|Online||||||||
|Development|<br>-|-|-|-|-|10,000|10,000|
|Office Move|-|-|-|-|-|5,000|5,000|
|Covid Safety||||||||
|Screens|-|-|-|-|-|5,000|5,000|
||50,943|(27,844)|5,580|28,679|(15,500)|27,051|40,230|



- 24 - 



**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **20 Designated funds** 

## **(Continued)** 

## **Purpose of designated funds:** 

_Digital Development –_ We have been putting money into savings to fund a digital development project. This is for a new website that we will fully integrate with our customer management system and online booking system.  This project was largely finished by the end of 2019. 

_Subsidy Fund  –_ The primary use of this fund is to ensure the future of our youth programme. 

_Capital Reserve –_ Represents the net book value of fixed assets held, recognising that these funds cannot be easily converted to cash. 

_Wider Learning Development_ - Investment in projects to widen participation. 

_Studio Development_ - Substantial improvements and investments to the studio's equipment. 

_IT Equipment to Support Online Development_ - To improve production values for online delivery in 2021. 

_Office Move_ - In Spring 2021 the School will relocate from The Island Centre to a new office closer to the School. 

_Covid Safety Screens -_ Screens need to be installed in the Roy Ray studio to enable the space to be multi purpose and to be used safely. 

## **21 Analysis of net assets between funds** 

|**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**2020**<br>**2020**<br>**£**<br>**£**<br>Fund balances at 31<br>December 2020 are<br>represented by:<br>Intangible fixed assets<br>2,390<br>-<br>Tangible assets<br>7,840<br>3,887<br>Current assets/<br>(liabilities)<br>175,406<br>3,074<br>185,636<br>6,961|**Total**Unrestricted<br>funds<br>Restricted<br>funds<br>**2020**<br>2019<br>2019<br>**£**<br>£<br>£<br>2,390<br>-<br>-<br>11,727<br>5,679<br>-<br>178,480<br>166,890<br>3,574<br>192,597<br>172,569<br>3,574|Total<br>2019<br>£<br>-<br>5,679<br>170,464<br>176,143|
|---|---|---|



- 25 - 



**ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


## **22 Operating lease commitments** 

## **Lessee** 

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: 

|Within one year<br>Between two and five years|**2020**<br>**£**<br>13,480<br>9,096<br>22,576|**2019**<br>**£**<br>13,480<br>22,576<br>36,056|
|---|---|---|



## **23 Related party transactions** 

There were no related party transactions during the year (2019 - none) other than those already disclosed in note 11. 

## **Remuneration of key management personnel** 

The remuneration of key management personnel, as listed in the Trustees' Report, is as follows: 

||**2020**|**2019**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|33,097|30,767|



- 26 -