RRL Charty Registration No. 1146825 Company Registration No. 07871063 IEngland and Wales) ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING LEGAL AND ADMINISTRATIVE INFORMATION RRL" Trustees N Scoll (Chairman) . JL Hancock L Sludley H Willett J Wood TC Cole IAppoinled 14 October 20211 Members of the finance sub-committee Chief executive Alison Sharkey Charty number 1146825 Company number 07871063 Principal address Porthmeor Studio Back Road West ST IVES Cornwall TR26 1NG Reglstered offlc• Porthmeor Studio Back Road West ST IVES Cornwall TR26 1NG Independent examiner Mark Williams FCA DChA RRL LLP Peal 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 RRL" 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 RRL" Page Trustees, report Independent examiner's report Statement of financial activities Balance sheet 9-10 Notes lo the financial statements 12-28
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 2021 RRL" The trustees present their annual report and financial statements for the year ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies sel out in note 1 to the financial st8lements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practi applicable lo charities preparing their accounts in acwrdance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191°. Objective8 and activities In 2021 our key objectives were to". Continue lo strengthen the online offer. Maintain our reserve lo carry us through the predicted lean earfy months of 2022 and potential continued disruption from Covid-19. Safely reopen lo face lo face teaching in line with government's advice. Anticipated lo 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 Kickstart roles lo support our online programme including developing an online programme for young people. The Kickslart Scheme is 8 6 month paid job part funded by the Government. Jobs from the Kickstart Scheme are open lo 16-24 year olds, who are claiming Universal Credit, and are at risk of long lem unemployment. Ensure we support staff with the resources they need lo 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 lesm work together. Re-building the team.. some team members are new Sin 2020, some staff left in 2020, existing staff have had job changes, most have been worf(ing from home $0 we need lo re- group with the new business model and staffing structure as the focus. Training and perf0mlan management. Developing an internal communication strategy. Improved office environment. Adequate stsffing levels. Improved IT infraslruclure, support and equipment. Develop a flexible balance between home working and Offi working.
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 2021 RRL" Achievements and perf0rn7ance Review of activities and achievemènts in 2021 We remain committed lo our core strategic aim for the period 2020 - 2022 which is lo engage with a more diverse range of students with programmes that deliver social impact and al the same time grow income. The continued irnpacl of the Covid-19 crisis however means we had lo adapt to the financial and operational challenges of another disrupted year for the School. Our hope was lo use 2021 as a year of consolidation and recovery from 2020 but in the New Year we entered another national lock down losing 4 months of face-lo- fa teaching the same as in the previous year. This was a huge stressor for the School's finances, staff morale and stamina. We received 65K in govemmenl support including fudoughing payments. However despite 4 months of closure by the end of the year we exceeded income from the delivery of courses, compared lo the pre-COVID year 2019. by 7.10. This was down lo the immense dedication of staff and tutors and the support of our student community with their continued enthusiasm for the School. Over 3,000 sILJdents engaged with us over the year either by returning lo the studios when we reopened or continuing to support our online delivery. The online School continues lo be an exciting new platform for the School, enabling longer lasting connections with many more people of all ages and from all around the world. The vital new income stream has also meant the charity has kept its reserve intact for another year of the pandemic, ensuring a vital resource is in place for what is likely to be a challenging few years ahead with COVID continuing to impact on bookings and the cost of delivery and the looming cost of living crisis. In May 2021 our Iruslee and previous principal of the School Roy Ray sadly passed away. He left a legacy in his will lo the School and, alongside contributions from friends and family, this will specifically be used to support young people lo pursue their ambition to be an artist through mentoring or training. As a long term commemoration, the School also sel up the Roy Ray Fund which enables the public lo donate lo the running of our overall youth programme. In addition, the School also created a film of memories gathered from staff, trustees and friends lo capture some of the many special stories about Roy and his life in Sl Ives and his incredible contribution to the School and local community. We successfully recruited a Kickstart role to support our online programme including developing an online programme for young people. The government scheme was open to 16-24 year olds claiming Universal Credit, and al risk of long term unemployment. We developed a new online programme lled Porthmeor Art Collective for teens aged 13-16, delwered as a series of stand-alone free workshops in June and July. The role gained additional support from Little Par¢ Owles Trust that helped pay for additional mentoring lo be an arts facilitator. In the second phase of the project in October and November, a series of free workshops laughl young people how lo make a painting from scratch. The results were then exhibited in an exhibition al the Island Centre and a private view was held. Our Youth Manager also worked lo develop an online version of our Inclusion Culture Camp with Bronze Arts Award. The experience included a remote Porthmeor Studios tour, a virtual gallery visit to the Guggenheim Bilbao, Spain, a remote Leach Pottery Museum lour and a 'make your own clay cup, activity and an artist studio lour, Q&A with an artist and technique share. Sl Ives School, Pool Academy and Cape Cornwall look part. Delivered remotely over five mornings in August, 12 young people look part. Teachers selected students for being on Pupil Premium funds and having poverty indicators. Our artist tutors brosdcasl from Porthmeor Studios, while the young people were in their own homes. Each young person received an art and clay hamper. The camp was labour intensive bul a big success. each young person joined every session and successfully completed their Bronze ArtsAward. A faCe-tO-fa Culture Camp funded by the Wilhelmina Barns Graham Trust with Nine Maidens Pupil Referral Unil, also look place in November 2021 for one week in the Porthmeor Studios and all participants successfully completed their Arts Award. Using funds from St Ives Rotary brought forward from 2020, during the early part of the year we adapted our Sunday Club for 7- 12 yr olds lo work online. By autumn we were able lo reintroduce face-lo-face workshops again.
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 2021 RRL" Despite the uncertainties and challenges of the last year, the Trustees and staff continue lo embra innovation and an entrepreneurial spirit in everything they do. In 2021 we made the positive decision to invest in our staff team and plan for a brighter future when our fa¢e-It>face teaching returns to pre-COVID levels complimented by a thriving online School. A Cultivator Innovation & Inclusion Placement Award supported this ambition. part funding several placement opportunities resulting in an additional Administrative role, Course Designer and Videographer joining the team. A project sL9rted at the end of 2021 to grow our marketing capscity with an additional staff member cruited to focus on social media supported by Unlocking Potential as part of the ERDF Breakthrough Programme. An Unlocking Potential Growth & Produclivily grant supported the purchase of video conferencing equipment enabling large mixed meetings to lake place where staff members and Trustees could connect from home with colleagues in the offi. It has also enabled students lo dial in lo allend long term courses where COVID restrictions have prevented travel. Cotnwall Development Company provided ERDF CIOS Kickslart funds for IT equipment to enable flexibility in the delivery of online classes and increase our social media presence. Alongside this grant support the School invested considerable resources of ils own in improving equipment and technology evident in the increase in the fixed assets for the year. In spring we look on a new offi leased from the Penwith Gallery- another key slep in planning for growth. We are aware that in a volatile wodd our ambition lo grow our impact will be a challenging journey and will require several years of investment and support using our reserve. Mainly to cover the investment in our staff team. Bul we are confident we Can make it a Suc$$. Success for the charity means reaching many more people across the wodd, diversifying our audience, and creating a Warding and healthy Workpla for all our staff and tutors. In November of 2021 our Director Alison Shart(ey, after 11 years in post, decided she would be handing the mantle on and would be moving on lo focus on her own practice. The Trustees aim lo recruit her repla¢emenl by summer 2022. The process for this started at the end of 2021 and the aim is to have a new Director in post for June 2022 to lead the charity on lo ils next stage. In October Thea Cole joined the board. Thea is a digital media expert with a background in TV production and heads up the creative agency, Latimer. Prior lo this she was Media Com's first Director of Content and BAFTA'S first Head of Communications where she launched the youth brand, BAFTA Guru. Originally from the Wesl Country, Thea has a long track record as a BBC TV producer I director. Thea has been supporting the School as a consultant through the pandemic advising on its online delivery and her appointment lo the board is a key slep in ensuring the School is well prepared for an exciting new future. Financial review The results for the year are shown in the slalement of financial activities on page 8 and show net incoming resources for the year of £28,671, of which £17,359 15 unreslricled and £11,312 is restricted. This result together with the reserves brought fornard of £192,597 12020.. £176,143) gives a lotsl reserves figure of £221,26812020.. £192,597). Of this amount £177,311 12020.. £145,406) relates lo free reserves Inol included within restricted or designated funds) and this is in line with our reserves policy. Designated funds tolalled £25,88412020. £40,23018nd reslricled resèrves lotslled £18,27312020. £6,961).
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 2021 RRL" Reserves policy We have designed the School's reserves policy to provide security lo make plans and ensure the School can deliver ils charitable mission. It responds in particular lo the School's dependence on earned income. The reserves policy supports the School in the event of serious disruption lo income. It also supports the need to cover se8sonal fluclualions in income by operating a healthy cash flow. In view of the above, the trustees have decided that il will be prudent lo aim to keep four months running costs as a General Reserve. Due lo the plan for expanding the staff team in 2022 il will be based on our expenditure forecast for 2022 which equates lo a balance of £177,000 in General Reserve. The purpose of the designated funds is explained in Note 20. The development of the online programme, alongside Government grants, have ensured our reserve of four months operating costs Is intact going into 2022. We expect to utilise this reserve in 2022 and over the following year lo enable the School lo continue its plan for growth despite the anticipated fall in income and increased costs. The anticipated reduction in income is due lo the continued hesitancy In our customer base lo return lo fat0-fa experien$ as well as the cost of living Crisis looming in 2022 and beyond also impacting on bookings. Meanwhile costs of delivery continue lo increase 8cross stsffing, nt, materials and IT. These multiple challenges will likely mean a tough few years ahead and we expect the reserve will be ulilised lo carry the charity through this lime. 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. Rlsk management The trustees regularly review the risks to which the charity is exposed and ensure appropriate controls are in place lo provide reasonable assurance against fraud and error. Tax status The company being a registered charity is exempl from corporation lax. Public benefit The charity complies with the public benefit requirement through its charitable objectives. The trustees confirm they have referred lo the guidance contsined In the Charity Commission's general guidan 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 sel.
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 2021 RRL" Key objectives for 2022 Recruit the new Director Expand the tutor team lo enable us lo deliver a varied programme across face-to-face and online Expand our Culture Camp initiative for young people and secure funding to ensure its continued growth reaching more vulnerable young people. Use the reserve to enable investment in infrastructure, people and marketing to raise the profile of our online delivery and enable us lo build our earned income over the next three years. Develop a sustainable safe working environment for the team and students as we adapt lo living with COVID. Develop a wellbeing action plan lo support the expanded staff team. Start the pro$$ of developing a business plan with the incoming Director informed by our learning from COVID-19, focussing on articulating a clear direction of travel for the stsff le8m as well as othèr stakeholders, including a digital strategy and social impact and diversity plan for the charity. Develop innovative ways of using online programme to diversify our audience. Continue lo improve internal communication ulilising our confidence with digitsl plattom)s lo enable a mix of home and office working for most staff. Structure, governance and management Sl Ives School of Art is a company Limited by guarantee governed by ils 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 lo £10 per member of the charity. The trustees, who are also the directors for the purpose of company law, and who setved during the year were.. N Scott Ichairmanl . JL Hancock G Rashidi RG Ray L Studley H Willell J Wood CM Clough TC Cole (Resigned 28 June 20211 (Resigned 24 May 20211 (Resigned 25 March 20211 (Appointed 14 October 20211 Members of the finance sub-committee
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 2021 RRL" 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 lo focus recruitment. To ensure the diversity of the trustee board we identify possible trustees through a combination of recommendation and public appeals. Vve use local papers, social media and the School's own extensive database of past students lo do this. An open evening is organised where interested people meet with staff and existing trustees lo 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 Iruslees, 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 lo 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 servi. 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 organisalional knowledge and experien. The Board meets four times a year. It is also organised into working groups. Finan 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 (Direclorl ¢atries out executive functions. Remuneration policy for key management personnel The trustees consider the Chief Executive Officer, Alison Sharkey, lo comprise the key management personnel of the charity- The pay of the senior staff is reviewed annually and normally increased in accordan 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 lo have taken as Iruslees in order lo make themselves aware of any relevant information and lo 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 lo Small Companies. The trustees, report was approved by the Board of Trustees. N Scott Ichalrmanl Trustee Dated. 25 April 2022
ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING INDEPENDENT EXAMINER'S REPORT RRL" TO THE TRUSTEES OF ST IVES SCHOOL OF ART ILIMITED BY GUARANTEE report lo the trustees on my examination of the financial statements of St Ives School of Art (Limited by guarantee) Ithe charilyl for the year ended 31 December 2021. R&sponsibiliti•s and basis of report As the Iruslees of the charity land also its directors for the purposes of company law} you are responsible for the preparation of the financial ststements in accordance with the requirements of the Companies Act 2006 Ilhe 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 Ithe 2011 Acll. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145151 Ibl of the 2011 Act. Independent examinerfs statement Since the charity's gross Income exceeded £250,000 your examiner must be a member of a body listed in se¢lion 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because l am a member of ICAEW, which is one of the listed bodies. I have completed my examination. I confirm that no mallers have come to my attention in connection with the examination giving me cause lo believe that in any material respect.. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act,. or the financial statements do not accord with those records., or the financial slalemenls 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 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 accordan with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland IFRS 1021. 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 lo enable a proper understanding of the financial statements to be reached. Mark Williams FCA DChA RRL LLP Peal House Newham Road TRURO Cornwall TR12DP Dated.. 5 May 2022
ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT RRL" FOR THE YEAR ENDED 31 DECEMBER 2021 Unrestricted Restricted fund8 fund$ 2021 2021 Total Unrestricted Restricted funds funds 2020 2020 Total 2021 2020 Notes Donations and legacies Charitable activities Other trading activities Investments 73,498 419,272 2,260 1,137 33,361 106,859 419,272 2,260 1,137 145,716 242,491 1,914 1,130 6,102 151,818 242,491 1,914 1,130 Total income 496,167 33,361 529,528 391,251 6,102 397,353 enditure on-. Raising funds 35,604 3S,604 43,009 43,009 Charitable activities 443,204 22,049 46S,253 335,175 2,715 337,890 Total resources expended 478,808 22,049 500,857 378,184 2,715 380,899 Net income for th& ygarl Ngt movgmenl in fund$ 17.359 11.312 28,671 13,067 3,387 16.454 Fund balances at 1 January 2021 185,638 6,961 192,597 172,569 3,574 176,143 Fund balances at 31 December 2021 202,995 18,273 221,268 185,636 6,961 192,597 The slalemenl of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing aclivilies. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING BALANCE SHEET RRL" AS AT 31 DECEMBER 2021 2021 2020 Notes Fixed assets Intangible assets Tangible assets 14 3,187 23,205 2,390 11,727 26,392 14,117 Currgnt a$sgts Stocks Debtors Cash al bank - deposit accounts Cash at bank and in hand 12.407 2.827 184.070 172.674 8,325 11,661 142,932 180,005 16 371,978 342,923 Creditors.. amounts falling due within one year 17 1177,1021 1164,4431 Net current assets 194,876 178,480 Total assets less current liabilities 221,268 192,597 Income funds Restricted fLJnds Unreslri¢led fund Designated funds General unrestricted funds 19 18,273 6,961 20 25.684 177,311 40,230 145,406 202,995 185,636 221,268 192,597
ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2021 RRL" The company is entitled lo the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these financial slalemenls. The directors acknowledge their responsibilities for ¢omplying with the requirements of the Companies Act 2006 with respect lo accounting records and the preparation of financial slalemenls. These financial statements have been prepared in accordance with the provisions applicable lo companies subject lo the small companies regime. The financial ststements were approved by the Trustees on 25 April 2022 N Scott (Chairman) Trustee Company Registration No. 07871063 10-
ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING STATEMENT OF CASH FLOWS RRL" FOR THE YEAR ENDED 31 DECEMBER 2021 2021 2020 Notes Cash flows from operating activities Cash generated from operations 24 58,576 56,520 Investing activities Purchase of intangible assets Purchase of tangible fixed assets Investment income reiVed 12,3901 123,5161 1,137 12,3901 19,1021 1,130 Net cash used in investing activities 124,7691 110,3621 Net cash used in financing activities Net increase in cash and cash equivalents 33,807 46,158 Cash and cash equivalents al beginning of year 322,937 276.779 Cash and cash equivalgnt$ al gnd of year 356,744 322,937
ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING NOTES TO THE FINANCIAL STATEMENTS RRL" FOR THE YEAR ENDED 31 DECEMBER 2021 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 rIStered office is Porthmeor Studio, Back Road West, ST IVES. Cornwall, TR26 1 NG. 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 2021 there were 6 members. 1.1 Accounting convention The financial stslements 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 lo charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" (effective 1 January 20191. The eharily is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP not lo prepare a Slalemenl of Cash Flows. The financial ststements are prepared in slerfing, which is the functional currency of the charity. Monetary amounts in these financial slalemenls are rounded to the nearest £. The financial slalemenls have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Going concern Al the lime of 8pproving the financial slalemenls, the trustees have a reason8ble expectation that the charity has adequate reSoUrS to conts.nue in operational existence for the foreseeable future. Thus the Iruslees continue lo adopt the going wncern basis of aOntIng in preparing the financial ststemenls. 1.3 Charitable funds Unrestricted funds are available for use al the discretion of the IrLJslees in furtherance of their Charitsble objectives unless the funds have been designated for other purposes. Designated funds comprise funds which have been set aside al the discretion of the Iruslees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial ststements. Restricted funds are subject lo specrfic conditions by donors as lo how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial stalemenls. 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 il is probable that income will be received. Cash donations are cOgnised on receipt. Other donations are recognised once the ¢harily has been notified of the donation, unless performance conditions require deferral of the amount. Income lax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the ty'me of the donation. Income from trading activities includes income earned from fundraising events and trading activities lo raise funds for the charity. Income is received in exchange for supplying goods and services in order lo raise funds snd is recognised when enlillemenl has occurred. Investsnenl 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. 12-
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 2021 RRL" Accountlng pollcl&s {Contlnued) 1.5 Resources expended Expenditure Is recognised when a there is legal or conslruclive obligation lo make a payment to a third party, il is probable that selllement will be required and the amount of the obligation can be measured reliably. Value added lax 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 ils activities and services for ils beneficiaries. 11 includes both Costs that can be allocated directly lo such a¢tivilies and those of an indirect nature necessary to support them. 1.6 Intangible fixed assets othar than goodwill Intangible fixed assets are Capitalised at wst. Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capilalised lo 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 33% perannum 1.7 Tangible fixed a88ets Tangible fixed assets costing £250 or more are capitalised and are initially measured al cost and subsequently measured al 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 sidual values over their useful lThies on the following bases.. Fixtures and fittings 200/0- 33OA 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 the statement of financial activities. 1.8 Stocks Stocks are stated al 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 incuired in bringing the stocks to their present location and condition. Items held for distribution al no or nominal consideration are measured the lower of replament cost and cost. 1.9 CaBh and cash equivalents Cssh and cash equivalents include cash in hand, deposits held at Call with banks, other short-lerm liquid investments with original malurilies of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 13-
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 2021 RRL" Accountlng pollcl&s {Contlnued) 1.10 Financial instruments The charity has elected lo 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 paty to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the nel amounts presented in the financial statements, when there is a legally enforceable right lo set off the recognised amounts and there is an intention to settle on a nel basis or lo realise the asset and settle the liability simultaneously. Basi¢ 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 constilules a financing transaction, where the transaction is measured at the present value of the future receipts discounted al a market rale of interest. Financial assets classified as receivable within one year are not amortised. Ba$1¢ flnanclal Ilabllltles Basic financial liabilities, including creditors and bank loans are initially recognised al transaction price unless the arrangement constilules a financing transaction, where the debt instrument is measured al the present value of the future payments discounted al a market rale of interest. Financial Iiabililies classrfied as payable within one year are not amortised. Debt instruments are subsequently carried al amortised cost, using the effective interest rate method. Trade creditors are obligations to Pay for goods 01 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 pri and subsequently measured al 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 exempl charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the lesls set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charrtable company for UK corporation tax purposes. 1.12 Employee benefits The cost of any unused holiday enlillement is recognised in the period in which the employee's services are received. Termination benefits are reco9nised Immediately as an expense when the charity Is demonslrab commrtied to leminate the employment of an employee or to provide lemination benefits. 1.13 Retirement benefits Payments lo defined contribution retirement benefit schemes are charged as an expense as they fall due. 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 2021 RRL" Critical accounting estimates and judgements In the application of the charity's accounting policies, the Iruslees 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 associsled Sssumplions are based on historical experience and other factors that are considered tr) be relevant. Actual results may differ from these estimates. The estimates and underfying assumptions are reviewed on an ongoing basis. Revisions to accounting eslimales 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 cutrenl and future periods. Donations and legacies Unro$tricted Rgstricted funds funds Totsl Unrestricted Restricted ftjnds funds Total 2021 2021 2021 2020 2020 2020 Donations and gifts LaCleS re1vable Government grants 7,895 33,361 41,256 15,395 15,DOO 115,321 6,102 21,497 15,OOD 115,321 65.603 65,603 73.498 33.361 106,859 145,716 6,102 151,818 Grants rec•lvabl• for core activitie5 Government grants Comwall Council grant 33,409 32,194 33,409 32,194 92,653 22,668 92,653 22,668 65,603 65,603 115,321 115,321 HMRC grants have been received totalling £33,409 12020.. £92,653> to help with the furloughed stsff whilst in a nationwide lockdown due to COVID-19. Cornwall Council a grant has been received for £32,194 1202D.' £22,668). The local restrictions support grant has been issued lo help businesses during the national lockdown and COVID-19 outbreak. 15-
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 2021 RRL" Charitable activities 2021 2020 Membership income Fees for delivery of art courses Sale of stLJdent arthork 1.395 417,657 220 1,860 240,539 92 419,272 242,491 Other tradlng actlvltles Unre8tricted Unrestricted funds funds 2021 2020 Sale of art materials and refreshments 2,260 1,914 Investments Unre8tricted Unrestricted funds funds 2021 2020 Interest receivable 1,137 1,130 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 2021 RRL" Raising fund5 Unrestricted Unrestricted funds funds 2021 2020 Tradin costs Artwork, materials and marketing Staff costs 10,756 24,848 18,677 24,332 Trading costs 35,604 43,009 35,604 43,009 17-
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 2021 RRL" Charitable activities 2021 2020 Staff costs Depreciation and impairment Cost of courses and projects Repairs and maintenance Research and development lincl. staff coslsl Bank charges and interest Sundry expenses Digital development Amortisalion 193,861 12.038 178,666 13,170 6,167 11.232 1.186 154,341 3,054 119,015 7,262 6,029 6,958 809 5,100 1.593 417,913 302,568 Share of support costs Isee note 91 Share of governance costs Isee note 91 46,440 900 34,472 850 465,253 337,890 Analysis by fund Unrestricted funds Restricted funds 443,204 22,049 465,253 Forthg ygar gndod 31 Docemb*r 2020 Unrestricted funds Restricted funds 335, 175 2,715 337,890 18-
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 2021 RRL" Support costs Support Governance costs costs 2021 Support Governance costs costs 2020 Operating lease charges Eslablishmenl costs Office costs Professional fees 15,998 12,659 12,966 4,817 15,998 12,659 12,968 5,717 9,088 8,084 10,672 6,628 9,088 8,084 10,672 7,478 900 850 46,440 900 47,340 34,472 850 35,322 Analysed between Charitable activities 46,440 900 47,340 34,472 850 35,322 Professional fees include payments to the accountsnts of £1,600 12020.. £1,520) for independent examination and £90012D20.' £8501 for other services provided to the charity. 10 Net movement in funds 2021 2020 Nel movement in funds is stated after chargingllcreditingl Depreciation of owned tangible fixed assets Amortisation of intangible assets Operating lease charges 12,038 1,593 15,998 3,054 9,088 11 Truste•s None of the trustees lor any persons connected with them) received any remuneration during the year, apart from as disclosed in Note 23. 12 Employees The average monthly number of employees during the year was.. 2021 Numbgr 2020 Numbor Raising funds Charitable activities- salaried staff Charitable activities- lulors 13 19 14 Totsl 36 26 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 2021 RRL" 12 Employees {Contlnued) Employment costs 2021 2020 Wages and salaries Social security costs Other pension costs 202,191 12,512 4,006 168,363 8,006 2,304 218,709 178,873 The above staff costs include salaried staff as well as tutors. There were no employees whose annual remuneration was more than £60,000. 13 Tangible fixed as8ets Flxtures and fittlngs Cost Al 1 January 2021 Additions 38,782 23,516 Al 31 December 2021 62,298 Depreciation and impairment At 1 January 2021 Depreciation charged in the year 27,055 12,038 At 31 December2021 39,093 Carrying amount At 31 December2021 23,205 At 31 DeMber2O20 11,727 -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 2021 RRL" 14 Intangible fixed assets Onllno dovelopment c¢)sts Cost Al 1 January 2021 Additions 2,390 2,390 Al 31 December 2021 4,780 Amortisation and impaimient At 1 January 2021 Amortisation charged for the year 1,593 At 31 DeMber2o2l 1,593 Carrying amount At 31 De¢ember2021 3,187 At 31 December2020 2,39D 15 Stocks 2021 2020 Finished goods and goods for resale 12,407 8,325 16 Debtors 2021 2020 Amounts falling due within one year.. Prepayments and accrued income 2,827 11,661 17 Creditors: amounts falling due within one year 2021 2020 Notes Deferred income Trade creditors Accruals 159,104 4,946 13,052 151,025 5,85D 7,568 177,102 164,443 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 2021 RRL" 18 Deterred income 2021 2020 Arising from course fees received in advance 159,104 151,025 Deferred income is included in the financial statements as follows.. 2021 2020 Current liabilities 159,104 151,025 -22-
OTr0 i (n O IQ ¢J) Ln rt Ln o (D u> * Ln 00 o u J CJ (n LU x >L)
ZJ (J c
oop oor 000 000 000 i 000 000 000 000 000 000 00 (TJ o o 00 ¢Doo
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 2021 RRL" 21 Analysis of net assets between funds Unrestricted Restricted funds funds 2021 2021 Total Unrestricted Restricted ftjnds ftjnds 2020 2020 Total 2021 2020 Fund balanS al 31 December 20218re represented by.. Intangible fixed assets Tangible assets Current asselsl 3,187 11,926 3,187 23,205 2,390 7,840 2,390 11,727 11,279 3,887 191,716 3.160 194.876 175,406 3,074 178,480 202,995 18.273 221,268 185,636 6,961 192,597 22 Operating lease commitments Lessee Al the reporting end date the charity had oulsl8nding commitments for future minimum lease payments under nOn-CanlIable operating leases, which fall due as follows.. 2021 2020 Within one year Beeen two and five years In over five years 9,860 22,768 1,328 13,480 9,096 33,956 22,576 23 Rglated party transactions Remuneration of key management personnol The remuneration of key management personnel, as listed in the Trustees, Report, is as follows.. 2021 2020 Aggregate compensation 32,543 33,097 -27-
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 2021 RRL" 23 Related party transactlons {Contlnued) Transactions with related parties During the year the charity entered into the following transactions with related parties.. Transactions with a Trustee lolalling £3,51012020". £Nill were incurred for services lo promoting the online programme of the Charity In the year. There was no amounts outstanding as at 31 December 2021 12020.. £Nil}. 24 Cash ggn9ra19d from op9rations 2021 2020 Surplus for the year 28,671 16,454 Adjuslmenls for.. Investment income recognised in statement of financial activities Amortisation and impairment of intangible assets Depreciation and impairment of tangible fixed assets 11,1371 1,593 12,038 11 1301 3,054 Movements in working capitsl". Ilncreasellde¢rease in stocks Decrease in debtors Increase in creditors Increase in deferred income 14,0821 8,834 4,580 8,079 90 2,370 2,004 33,678 Cash generated from operations 58,576 56,520 -28-