Charity Registration No. 114882S Company Reglstratlon 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 2022
ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING LEGAL AND ADMINISTRATIVE INFORMATION Trustses N Scott (Chairman) . JL Hancock L Sludley H Vlfillett J Wood TC Cole NJ Ellis JW Chiaro, K Harding IAppointed 31 October 2022} IAppoinled 5 August 20221 (Appointed 22 April 20221 ' Members of the finance sul>committee Chief executive Alison Sharkey (until 30th June 20221 Jane Cowans (from 1st July 20221 Charlty number 1146825 Company number 07871063 Principal address Porthmeor Studio Back Road West ST IVES Cornwall TR26 1NG Rogl$tgrgd offl¢g Porthmeor Studio Back Road West ST IVES Cornwall TR26 1NG Independent examiner Mark Wlliams FCA DChA RRL LLP Peat House Newham Road TRURO Cornwall TR1 2DP Bankers CCLA Investment Management Limited Senator House 85 Queen Victoria Street LONDON EC4V 4ET HSBC 1 Green Market PENZANCE Cornwall TR18 2SD
ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING LEGAL AND ADMINISTRATIVE INFORMATION CAF Bank Limited 25 Kings Hill Avenue ngs Hill ST MALLING Kent ME19 4JQ Charity Bank Fosse House 182 High Street TONRIDGE Kent TN9 1BE
ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING CONTENTS Page Trustees. report Independent examine¢s report statement of financial activities Balance sheet 11 Notes lo the financial ststemenls 13-28
ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022 The trustees present their annual report and financial statements for the year ended 31 December 2022. The financial slalements have been prepared in accordance with the accounting policies sel out in note 1 to the financial slalements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and 'Accounling and Reports"ng by Charities". Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable In the UK and Republie of Ireland IFRS 1021 leffeclive 1 January 20191°. Objectives and activities In 2022 our kay obj&ctiv8$ werg: 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 lo ensure its continued growth reaching more vulnerable young people. Use the reserves lo enablè investment in infrastructure, people and marketing lo raise the profile of our online delivery and enable us lo build our eamed income over the next three years. Develop a sustainable safe working environment for the team and students as we adapt to living with COVID. Develop a wellbeing action plan to support the expanded stsff team. Start the pro¢ess of developing a business plan with the incoming Director informed by our learning from COVID-19, focusing 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. Develop innovative ways of using online programme lo diversify our audience. Continue to improve intemal communication ulilising our confidence ¥Mth digitsl plattorms lo enable a mix of home and office Working for most staff.
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 2022 Achievements and perforniance Revlew of actlvltles and a¢hlevements In 2022 Ggneral Summary We remain committed to our mission and vision to enrich people's lives by nurturing and enabling their creative spirit. We do this by providing high quality tuition, whether delivered online or in our inspirational spaces. Our online programme has extended our reach worldwide and enabled us lo retain relationships with students who would be unable lo travel lo Sl Ives. Our studio programme provides a unique leaming and well-being experience, and our ongoing support for regular life drawng sessions, provides a low cost option for local artists. In 2022 we started to rebuild our face lo fa teaching following the recent disruption of the pandemic, doubling the number of studio courses. ensuring Covid safely by restricting the number of students in the studio and using screening. Audience participation in online courses has understandably dedined compared to the time of lockdowns, however we continue to develop our online programme, which enables us to reach a wde range of students across the globe al an affordable price point and is key lo our strategy of widening participation in our course5. We continue to fine tune the quality of oulpul, investing in a high quality camera, supported by a grant for 500A of the cost from the ERDF Future Focus project managed by University of Exeler. During the year. over 2,500 individuals benefrtted from nearly 7.000 courses,. our charitable income was 250 above that in 2019 and 20Q/o above that of 2021. As forecast in 2021, we utilised retained funds lo support the school's long temi plan. This policy allowed us to support the Youth Project by £20K and invest a further £29K to build and develop an online learning platform to improve the student experience of online courses and enable us to better manage our online resources, this was part supported by a grant from ERDF Superfast 3 Inclusive Growth. Our challenge over the next few years is lo manage our expenditure whilst investing for our future. We are still recovering from the pandemic, re-eslablishing business practices and restoring face lo face leaching whilst continuing to develop online. 2023 looks set lo be another challenging year, navigating an uncertain economic climate with a cost of living Crisis, rising fuel costs and interest rate rises. In the year ahead we plan to draw on our reserves to continue the vitsl work of our youth programme and continue to invest in digital. Trustees An effective charity board has trustees wth a good range of skills and qualities, and a variety of professional and personal experience. Therè were skill gaps in our board including in finance, youth and Creative programming. We therefore appointed three new trustees." Kerry Harding w8s appointed in April 2022 and is a professional artist who used to tutor al the school. Jan Chiaro was appointed in August 2022 and has a professional finance background. Natalie Ellis was appointed in October 2022 and has been a secondary school art teacher for the last 18 years with a strong interest in inclusion work. Additional working groups of trustees and relevant staff were sel up induding one for youth, another for creative programming and finally a third for grant funding. These are In addition lo the HR and Finance Working Groups. This means we now have trustees engaging more in the work of the school offering their skills and knowledge to support continuous Improvement. New Dlrector In Spring 2022. the school embarked on a robust process for recruiting a new director. After exploring external candidates, it was decided to draw on knowledge and skills held within the existing team. The previous Director, Alison Sharkey, left on 30tr June 2022. Jane Cowans was appointed Interim Director on 1s1 July 2022 and her appointment confirmed as Director on 5th December 2022. Jane has been with the school since 2011, previously holding the post of Head of Commerce and has a wide range of experience in management, sales and marketing. A new post of Deputy Director was created In the interim period Janel Vvynne, Head of Operations & HR, was appointed lo this post on the same dates.
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 2022 Busines5 Plan 2023 Jane Cowans produced a business plan for trustees and this was approved in November 2022. 11 sel out key areas of focus including plans for". Customer Experience. Local Community Engagement Reach and Diversity Youth Charity Fundraising Online Programming Development staffing and restructuring to build resilien Increase èarned Income Sustainability and carbon neutral tsrgels More information Can be found on Key Objectives for 2023 section. Human Rosourcos To maximise our impact and achieve further growth we have reviewed the organisation structure following the changes to the Director appointment, seeking lo retain talent, promote from wthin and ensure we have the requisite skills and knoedge to develop. We continued our investment in a social media role supported by ongoing 2021 funding from Unlocking Potential Graduate Jobs, part of the ERDF Breakthrough Programme. In addition adminislralion, design and videographer roles were supported by cU1vatOr Innovation and Inclusion Placement Awards. In addition in July 2022 we introduced one lo one meetings to be held every months between line managers and their individual staff members. The aim was to facilitate collaboration time enabling employees and managers lo connect. The focus was lo look at results, wellbeing, development and for managers to re1ve feedback from employees. This will work alongside a new appraisal scheme that will be launched in April 2023 as part of the school's Wellbeing Policy. We approved flexible working for some staff lo improve their capacity and performance in line with the operational needs of the charity and stsff Continue lo work from home where appropriate. We increased staff salaries by 4.50h on 1 April 2022 and this was based on affordability as well as the Consumer Prices Index including owner occupiers, housing costs ICPIHI and the Consumer Prices Index ICPI}. The lowest paid salaries were maintained to the National Living Wage. We also reviewed and increased the salaries of 3 members of staff lo reflect their increased duties and responsibilities. We continued to use digital platforms (Zoom, Teams) for intemal communication to enable a mix of home and office working as well as for Iruslee meetings. Also we used these platfomis lo enable 1-1 training, 1-1 meetings and working groups too. Fa to face meetings continued lo be important and departmentsl managers meet weekly lo review performance, systems, operations and plans. A whole team meeting was held in December to celebrate successes and achievements in 2022. In addition a social event was held for the first time in three years, due to Covid reslriclions, lo bring the whole school together including trustees, staff, tutors, life models and local partners. Tutors We recruited seven new tutors lo the team during 2022, six of those were recruited in the latter half of the year. The widened teaching team enabled the school lo offer a diverse range of Courses, writh a variety of artisti¢ styles to appeal to a broader audience. We currently have over 30 artists actively leaching for us. We have created a robust induction process for welcoming new tutors into the school and improved the information we give them including teaching standards.
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 2022 We undertook a review of tutor appointments and terms as well as intellectual property rights. This was due to thè impact of Covid and the Introduction of onlinè courses which had Changed the terms in which we engaged them. We obtained legal advice, partially funded by Cullivalor Creative Investment, and undèrtook consultation with tutors who all agreed the new terms. This resulted in updating and re-issuing all lulors with new contracts and fee payments in July 2022. We ran a training day on how to deal with difficult stLJdent behaviour for tutors and staff in October 2022. A student code of conduct was also published on the website following this work. Compliance After the Govemment's public4lion, Living wth Covid, the sch¢x)I reviewed the risks to ils staff, lulors and students after 2 key changes". free mass lesling no longer available on 1 April and face mask wearing no longer a legal requirement from January 2022. As a result the school removed most of the control measures it had pul in place bul retained a requirement for staff to work from home if unwell and the use of air purifiers, which had been specifically purchased during Covid. Work was completed on developing an inventory of all school equipment lo ensure the school's insurance policies were adequate. A health and safety audit was undertaken wlh departmental managers in August 2022 and improvements implemented. In addition further work was undertaken lo review our child safeguarding policy and procedures and improvements were made. All staff undertook and passed complian training online in June 2022 wvering Data Protection, Infomiation Security, Equity Diversity and Inclusion, Display Screen Equipment and Health and Safety. Company Following an application to the Intellectual Property Office in June 2022, the IPO slated on 3 November 2022 that evidents provided proved that the mark of St Ives School of Painting had become distinctive by the use made of il in relation to Education Services. As no objections We ceiVed the Trademark was awarded lo Sl Ives School of Painting by the IPO on 27 January 2023. After the registration of a number of our competitor ¢ompanies with Companies House, using similar names to the school, the trustees voted lo have the registration of 3 new companies al Companies House that would remain inactive. The following companies were registered in September 2022.. St Ives Art School Ltd, Sl Ives School of Painting Ltd, Cornwall School of Painting Ltd. Youth Programme Open Access Sunday Clubs for Kids and Teens This continues lo be a well-attended monthly offer with sessions available for kids 17 10 10 year olds) and teenagers111 to 16 year olds), This is a unique opportunity for children lo work in a professional art studio wth contemporary artists and the Sl Ives Rotsry Club support us with funding which subsidises the cost. On each course a quarter of the places are offered free of charge as a scholarshiplbursary lo low income families. The Youth Arts Manager's salary plus other Costs continue to be supported by the school. Culture Camp and Youth Inclusion Projects Culture Camps offer disadvantaged young people access lo St Ives, cultural inslilulions. Led by artists, they lake part in a set of workshops, gallery visits and talks. Bronze Arts Award is embedded in the projèct which gives young people a nationally recognised qualification. For Culture Camps, the Youth Arts Manager is an Arts Award Advisor, plus oversees the scholarship programme for the Kids Club and PorthmeorArt Collective. In 2022, the Youth Programme led by the Youth Arts Manager expanded its Culture Camp inclusion work from two projects to four. A partnership was arranged with the Community Hospital Education Service ICHESI who work with young people that are loo ill lo go to school, so attend a hospital school part-lime. The second new partnership was with the Penwf(h Allernalive Provision Academy of excluded teenagers. Both these groups were supported by funding secured through the Cornwall Community Foundation, Headstart Kemow Young People's Mentsl Wellking Fund.
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 2022 The third project was with Nine Maidens Pupil Referral Unil and the fourth project was for young people living in poverty, Classed as Pupil Premium who are referred by schoo15 in West Comwall. Wlhelmin8 Barns-Gr8ham Trust continued lo fund these projects in 2022. In lolal forty Iwo sessions were run throughout the year on the youth programme. Culture Camp worked with four alternative provisions and engaged foty two young people who were excluded or loo ill to go lo school. Thity seven of these achieved a recognised Arts Award through the project. Feedback on this work induded Nine Maiden's Ofsted inspection staling the Culture Camp was a beacon of good practice. The work stood out as it raised the expectations of young people and gave them cultural capital. We utilised regular donations from Taylor Money Ltd for the entire Youth Programme. Little Parc Owles Trust supported our Porthmeor Art Collective that provided free online sessions, an exhibition and mentoring in 2021. Roy Ray donations reiVed in 2022 will be added lo those already held lo offer three emerging artists who want to start an art career as a Porthmeor Programme placement. Flnanclal revlew The results for the year are shown in the slalement of financial activities on page 10 and show nel outgoing resources for the year of £40,007, of which £7,632 is restricted and £32,375 is unreslricled. This result together with the reserves brought forward of £221,26812021.' £192,597) gives a total reserves figure of £181,261 12021.. £221,268). Of this amount £120,98612021.' £177,311) relates lo free reserves Inol included within reslricled or designated funds) and this is in line ¥hrith our reserves policy. Designated funds tolalled £49.83412021'. £25.6841 and restricted reserves totslled £10,641 12021.. £18,273). Reserves pollcy We have designed the School's reseNes policy to provide security to make plans and ensure the School can deliver ils charitable mission. 11 responds in particular to 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 seasonal fluctuations in income by operating a healthy cash flow. In view of the above and in response lo climate conditions the trustees have decided that il will be prudent to aim to keep three lo four months running costs as a General Reserve. Our expenditure forecast for 2023 excluding costs within designated spend equates lo minimum balance of £117,409 that should be held in General Reserve. The purpose of the designated funds is explained in Note 20. In 2021 we predicted the need to utilise reserves during 2022 land beyond) to enable the School lo continue its long term mission., a policy which allows the School lo continue to support the Youth Programme, invest in staff and improve online technology. The ongoing hesitancy in our customer base to return to face-lo-face experiences as well as the cost of living crisis and rising supplier costs are expected lo impad operations in the year ahead. These external factors focus the importance of a skilled a staff team, diverse presentslion methods and a continuous drive to be the best in our field. Investment pollcy 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. We are committed to ethical investing avoiding banks whose investments are at a detriment lo climate change issues wherever possible. Rlsk management The trustees regulady review the risks lo which the charity is exposed and ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
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 2022 Tax status The company being a gIStered charity is exempl from corporation tsx. Public benefit The ¢harily complies with the public benefit requirement through its charitable objectives. The trustees Confimi they have referred lo 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. Key objectives for 2023 Delivery Aim to restore studio courses lo pre pandemic levels, creating opportunity for over 1,000 students to learn in our studios. Restore and enhance our studio spaces, removing screening installed during Covid. Tutors Continue lo develop the tutor team to offer a diverse programme of leaming both face to fa and online. Customers Enhance the student experience of online Courses by refining the digitsl lèaming platform. Review the user experience of our website and Invest lo improve ease of use for students. Develop our CRM system lo improve efficiency. Sustainability and Climate Change Explore sustainable initiatives to set us on the path to be carbon neutral by 2030. Finance Continue lo lean on the reserve 10 5UPPOrt long term growth plans of restoring studio courses lo pre- pandemic levèl whilst retaining our digitsl art school. Increase visibility of our charitable slalus lo actively seek donations and legacies. YouthlDlverslty and In¢luslon Vlfiden our reach and increase diversity by continued investment in online courses which offer a lower cost option to engage with us. Seek opportunities lo widen partiapalion and remove barriers of access. Work wth local partners lo create opportunities lo engage with local young people. Ensure long term security of our vitsl inclusion projec15 for young people. Nurture the development of artists through the Roy Ray Fund. Marketlng and Sales Invest in digitsl marketing lo raise brand awareness, increase tumover, develop and diversify our audience. Human Resources Review the appraisal scheme and reintroduce in April 2023. Pay Increase for lowest paid lo the Real Living Wage rate from 1.4.23 as recommended by the Resolution Foundation and overseen by the Living Vvage Commission. This is 8 7.60h increase for some key members of staff. The remaining staff lo be paid 4%. Ensure effective change management and monitor impact of any staffing or organisalional changes. Security and Compliance Undertake cyber security risk assessment and implement control measures. Undertake data protection audit and update privacy notice, policies and contracts.
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 2022 structure. governance and management St Ives School of Art is a company Limited by guarantee governed by ils Memorandum and Articles of Association dated 5 Dember 2011. 11 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 served during the year were.. N Scott Ichaimianl ' JL Hancock L Sludley H Wllett J Wood TC Cole NJ Ellis JW Chiaro. K Harding IAppoinled 31 October 20221 (Appointed 5 August 20221 (Appointed 22 April 20221 ' Members of the finan Sucommittee The existing trustees and Diredor identify suitable individuals, based on their skills and knowledge and the current needs of the board. We currenuy have 9 Iruslees, wth 3 rentlY recruited in 2022 fDIIo¥Mng a skills gap check. As part of the induction programme for newly recruited trustees, information is shared on the financial slalements and future plans and they meet with key staff. There Is an expectation of a minimum of three years of service. Every three years the board and Individual will review their role decide lo step down or extend for a further three year5. No strict lime limit on length of Service is in place. Thi5 reflects the challenge of rectuib.ng high quality candidates in the region and the importance of retsining valuable organisalional knowledge and experience. The Board meets four times a year. 11 is also organised into working groups. Finance meets on a bi-monthly basis and the others (Youth, HR, Grant Funding, Programming) as and when required. Remuneration policy for key management personnel The trustees consider the Chief Executive Officer, Jane Cowans lo comprise the key management personnel of the charity. The pay of the senior stsff is reviewed annually and normally increased in accordan rith cost of living in line with other staff. In view of the nature of the charity, the trustees benchmarf( against pay levels in similar organisalions but also use Consumer PrIS Index including owner occupiers, housing costs ICPIHI and the Consumer Prices Index ICPII. Ststement of disclosure to independent examiner So far that the trustees are aware, there is no relevant infomiation 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 lo establish that the charity's independent examiner is aware of that infomation. This report has been prepared in accordance with the special provision of Part 15 of the Companies Act 2006 relating lo Small Companies.
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 2022 The trustees, report was approved by the Board of Trustees. N Scott (Chairman) Trustee Dated.. 3 May 2023
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 Sl Ives School of Art (Limited by guarantee) Ilhe charilyl for thè year ended 31 December 2022. Responsibilities and basis of report As the trustees of the charity land also ils directors for the purposes of company lawl you are responsible for the preparation of the financial slalements in accordance with the requirements of the Companies Act 2006 Ilhe 2006 Act). Having satisfied myself that the financial slalements of the charity are not required lo be audited under Part 16 of the 2006 Act and are eligible for independent examination. I report in respect of my examination of the ¢harity's financial statements carried OLJI 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 14515llbl of the 2011 Act. Independent examinerfs ststement 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 l am qualified lo 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 matters have come lo 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 slalements do not accord with those records., or the financial slalemenls do not Comply with the a¢untIng 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 maller considered as part of an independent examination,. or the financial slalements have not been prepared in accordance wth the methods and principles of thè Statement of Recommended Practice for accounting and reporting by charities Spplicable lo Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. I have no concems and have come across no other matters in connection with the examination lo which attention should be drawn in this report in order lo enable a proper understanding of the financial slalements lo be reached. Mark Williams FCA DChA RRL LLP Peal House Newham Road TRURO Cornwall TR12DP Dated.. 5 May 2023
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 2022 Unrestri¢ted Restricted funds fund$ 2022 2022 Total Unrestricted Reslricled funds funds 2021 2021 Totsl 2022 2021 Notes Income from: Donations and legacies Charitable activities other trading activities Investments 9,335 499,796 3,652 1,028 44,665 54,000 499.796 3,652 1,028 73,498 419,272 2,260 1,137 33,361 106,859 419,272 2,260 1,137 Total income 513,811 44,665 558,476 496,167 33,361 529,528 Ex enditure on: Raising funds 35,031 35,031 35,604 35,604 Charitable activities 511,155 52,297 563,452 443,204 22,049 465,253 Total resources expended 546,186 52,297 598,483 478,808 22,049 500,857 Net lexpendlturelllncome for the yearl Net movement in funds 132,3751 17,6321 140,0071 17,359 11,312 28,671 Fund balances al 1 January 2022 202,995 18,273 221,268 185,636 6,961 192,597 Fund balances at 31 December 2022 170,620 10,641 181,261 202,995 18,273 221,268 The stslemenl 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. 10-
ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING BALANCE SHEET AS AT 31 DECEMBER 2022 2022 2021 Notes Flxed assets Intangible assets Tangible assets 1,594 17,217 3,187 23,205 14 18,811 26,392 Current assets Stocks Debtors Cash at bank- deposit accounts Cash at bank and in hand 12,704 3,040 185,008 165,147 12,407 2,827 184,070 172,674 16 365,899 371,978 Credltors: amounts falllng due wlthln one year 17 1203,4491 1177,1021 Net current assets 162,450 194,876 Total assets leys current liabilities 181,261 221,268 Income funds Restricted funds Unrestricted funds Designated ftjnds General unrestricted funds 19 10.641 18,273 20 49.634 120,986 25,684 177,311 170.620 202,995 181,261 221,268 The company is entitled lo the exemption from the audit requirement contained in section 477 of the Companies A 2006, for the year ended 31 Dember 2022. No member of the company has deposited a notice, pursuant lo section 476, requiring an audit of these financial statements. The directors acknoTMedge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. 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 24 April 2023 N Scott Ichalrmanl Trustee Company Registration No. 07871063
ST IVES SCHOOL OF ART (LIMITED BY GUARANTEE) OPERATING AS ST IVES SCHOOL OF PAINTING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Notes Cash flows from operatlng actlvltles Cash (absorbed byllgeneraled from operations 24 12,2751 58,576 Invg$tlng al¥ll1$ Purchase of intangible assets Purchase of tangible fixed assets Investment income reiVed 12,3901 123,5161 1,137 15,3421 1,028 Net cash used In Investlng actlvltl&s 14,3141 124,7691 Net cash used In flnanclng actlvltles Net Idecreasellincrease in cash and cash equivalents 16,5891 33,807 Cash and cash equivalents at beginning of year 35S,744 322,937 Cash and cash equivalents at end of year 350,155 356,744 12-
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 2022 Accounting policies Charity inforniation Sl 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 Wesl, 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 2022 there were 6 members. 1.1 A¢¢ounllng ¢onvgntlon The finanaal statements have been prepared in accordance with the charity's goveming document, the Companies Act 2006 and 'Accounling and Reporting by Charities.. Slalement of Recomrnended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 {effeclive 1 January 20191. The charity Is 8 Public Benefit Entity as defined by FRS 102. The financial slalements are prepared in sleding, which is the functional currency of the charity. Monetsry amounts in these financial stslemenls are rounded lo the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are sel out below. 1.2 Going ¢on¢em Al the lime of approving the financial ststemenls, the trustees have a reasonable expectation that the charity has adequate resources to conlinLJe in operational existence for the foreseeable fLJture. 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 al the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. Designated fvnds cornprise funds which have been set aside at the discretion of the trustees for speafic purposes. The purposes and uses of the designated funds are set out in the notes to the financial slalements. Reslricled funds are subject to specific 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 statements. 1.4 Incoming resources Income is recognised when the charity is legally enlilled to il after any performance conditions have been mel, the amounts can be measured reliably, and il 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 perfomiance conditions require defeal of the amount. Income tax recoverable in relation to donations received under GiftAid or deeds of covenant is recognised at the lime 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 enlitlemenl 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. 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 2022 Accountlng pollcles Icontlnuedl 1.5 Resources expended Expenditure is recognised when a there is legal or constructive obligation to make a payment to a third paty, it is probable that selllemenl 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 induded 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 benefi¢iaries. It includes both ¢osls that Can be allocated directly lo such activities and those of an indirect nature necessary lo support them. 1.6 Intangible fixed assets other than goodwill Intsngible fixed assets are capitslised 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 feasibilty 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 330A per annum 1.7 Tangible fixed assets Tangible fixed assets costing £250 or more are capilalised and are initially measured at cost and subsequenuy measured al Cost or valuats'on, nel of depreciation and any impairment losses. Depreaation is recognised so as lo write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Fixtures and fittings 200A - 330/0 per annum The gain Dr 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 slated at the lower of ¢osl and eslimaled selling price less costs lo ¢omplele and sell. Cost mprises 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 al call wth banks, other short-term liquid investments wlh original maturities of three month5 or less, and bank overdrafts. Bank overdrafts are shown wthin 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 2022 Accountlng pollcles Icontlnuedl 1.10 Flnanclal 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 ils finanaal inslrumenls. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the conlraclual provisions of the Inslrumenl. Financial assets and liabilities are offset, with the net amounts presented in the financial stslemenls, when there is a legally enforceable right to set off the recognised amounts and there is an intenb'on lo settle on a net basis or to realise the asset and settle Ihe liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balans, are initially measured at transaction pri including transaction costs and are subsequently carried al amortised cost using the effective Interest method unless the arrangement con51ilules a financing transaction, where thè transaction is measured at the present value of the future retsipls discounted al a market rale 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 al transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rale of interest. Financial liabilities dassified as payable within one year are not amortised. Debt instruments are subsequendy carrieLI al amortised cost, using the effective Interest rale 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-currenl liabilities. Trade Creditors are recognised initially at transaction price and subsequendy 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 charty within the meaning of schedule 3 of the Charities Act 2011 and is conSided lo pass the lesls sel out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore il meets the definition of a charitable company for UK corporab'on tsx purposes. 1.12 Employee beneflts The cost of any unused holiday enb'tlement is recognised in the period in which the employee's services are received. Temiination benefits are recognised immediately as an expense when the charity is demonstrably committed lo lerminale the employment of an employee or to provide lerminalion benefits. 1.13 Retirement benefits Payments to defined contribution retirement benefit heMeS are charged as an expense as they fall due. 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 2022 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 eslimales and associated assumptions are based on historical experience and other factors that are considered lo be relevant. Actual resu115 Tnay differ from these eslimales. The estimates and underlying 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 ftjture periods where the revision affects both current and future periods. Donatlons and legaclgs Unrestrlcted Restrlcted funds funds Total Unrestricted funds Restricted nds Total 2022 2022 2022 2021 2021 2021 Donations and gifts Grants receivable 9,335 5,500 39,165 14,835 39,165 7,895 65,603 33,361 41,256 65,603 9,335 44,665 54,000 73,498 33,361 106,859 HMRC - grants have been received tolalling £Nil12021.' £33,409) to help with the furfoughed staff whilst in a nationwide lockdown due to COVID-19. Cornwall Council a grant has been received for £5,33412021'. £32,1941. The local restrictions support grant has been issued to help businesses during the national lockdown and COVID-19 outbreak. Charitable activities 2022 2021 Membership income Fees for delivery of art courses Sale of student artwork 2,850 496,023 923 1,395 417,657 220 499,796 419,272 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 2022 Other trading activities Unrestricted Unrestricted funds funds 2022 2021 Sale of art materials and refreshments 3,652 2,260 Invostments Unrestrled Unrestricted funds funds 2022 2021 Interest receivable 1,028 1,137 Raising funds unrgstrlOd Unrestricted funds funds 2022 2021 Tradin cost5 Athork, materials and marketing staff costs 8,341 26,690 10,756 24,848 Trading costs 35.031 35,604 35,031 35,604 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 2022 Charitable activitie5 2022 2021 Staff costs Depreciation and impaimienl Cost of courses and projects Repairs and maintenance Research and development lincl. staff costs) Bank charges and interest Sundry expenses Amortisab'on 246,982 11.330 171,553 14,315 29,276 13,274 3,943 1,593 193,861 12.038 178,666 13,170 6,167 11,232 1,186 1,593 492.266 417,913 Share of support costs (see note 91 Share of governance costs (see note 91 60,919 10,267 46,440 900 563,452 465,253 Analysis by fund Unrestricted funds Restricted funds 511,155 52.297 563.452 For the year ended 31 December 2021 Unrestricted funds Restricted funds 443,204 22,049 465,253 Support costs Support Governance costs costs 2022 Support Governance costs costs 2021 Operating lease charges Establishment costs Office costs Professional fees 20,503 18,087 16,624 5,705 20,503 18,087 16,624 6,905 15,998 12,659 12.966 4,817 15,998 12,659 12,966 5,717 1,200 900 Legal and professional 9,067 9,067 60,919 10,267 71,186 46,440 900 47,340 Analysed between Charitable activities 60,919 10,287 71,186 46,440 900 47,340 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 2022 10 Net movernent in funds 2022 2021 Net movement in funds is staled after Chargin(CreditingI Depreaation of owned tangible fixed assets Amortisation of intangible assets Operating lease charges 11,330 1,593 20,503 12,038 1,593 15,998 11 Trustees None of the trustees lor any persons connected with them) received any remuneration during the year, apart from as disdosed in Note 23. 12 Employees The average monthly number of employees during the year was.. 2022 Number 2021 Number Raising funds Charitable activities- salaried staff 13 Total 17 Employment costs 2022 2021 Wages and salaries Social security costs Other pension costs 271,455 14,873 4,811 245,391 12,512 4,006 291,139 261,909 There were no employees whose annual remuneration was more than £60,000. 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 2022 13 Intangible fixed assets Online development ¢05ts Cost Al 1 January 2022 and 31 December 2022 4,780 Amortlsatlon and Impalmient At 1 January 2022 Amortisation charged for the year 1,593 1,593 At 31 December 2022 3,186 Carrying amount Al 31 December 2022 1,594 At 31 December 2021 3,187 14 Tangible fixed assets Fixture5 and fitting5 Cost At 1 January 2022 Additions 62,298 5,342 At 31 December 2022 67,640 Deprociation and Impalrment At 1 January 2022 Depreciation charged in the year 39,093 11,330 Al 31 December 2022 50,423 Carrying amount Al 31 December 2022 17,217 Al 31 December 2021 23,205 15 Stocks 2022 2021 Finished goods and goods for resale 12,704 12,407 -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 2022 16 Debtors 2022 2021 Amounts falling due within one year: Prepayments and accrued income 3,040 2,827 17 Creditors: amounts falling due within one year 2022 2021 Notes Deferred income Trade creditors Accruals 18 189,879 3,273 10,297 159,104 4,946 13,052 203,449 177,102 18 Deferred Income 2022 2021 Arising from course fees received in advance 189,879 159,104 Deferred income is included in the financial statements as follows.. 2022 2021 Current liabilities 189,879 159,104 21
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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 2022 21 Analysis of net assets between funds Unrestrlcted RestrlGted funds funds 2022 2022 Total Unrestricted funds 2021 Restricted ftjnds 2021 Total 2022 2021 Fund balances at 31 December 2022 are represented by.. Intangible fixed assets Tangible assets Current assetsllliabililiesl 1,594 6.847 2,200 1,594 17,217 162,450 3,187 11,926 3,160 3,187 23,205 194,876 10,370 160,250 11,279 191,716 170,620 10,641 181,261 202,995 18,273 221,268 22 Operatlng lease commltments 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.. 2022 2021 Within one year Between two and five years In over five years 16,004 57,192 85,925 16,004 62,048 97,073 159.121 175,125 23 Related party transactions Remuneration of key management personnel The remuneration of key management personnel, as listed in the Trustees, Report, is as follows.. 2022 2021 Aggregate compensation 35,167 32,543 -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 2022 23 Related party transactlons Icontlnuedl Transactlons wlth lated partles During the year the charity entered into the following transactions with related parties.. Transactions wth a Trustee lotalling £Nil 12021.. £3,510) were incurred for serViS lo promoting the online programme of the Charity in the year. There was no amounts outstanding as al 31 December 2022 12021.. £NIl}. 24 Cash generated from operatlons 2022 2021 {Defiatllsurpus for the year 140,0071 28,671 Adjustments for.. Investment income recognised in statement of financial aclivf(ies Amortisation and impairment of intangible assets Depreaation and impairment of tangible fixed assets 11,0281 1,593 11,330 11,1371 1,593 12,038 Movements in working capital.. Ilncreasel in stocks Ilncreasellde¢rease in debtors {Decreasellincrease in creditors Increase in deferred income 12971 12131 14,4281 30,775 14,0821 8,834 4,580 8,079 Cash (absorbed byllgenerated frorn operations 12,2751 58,576 -28-