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2021-03-31-accounts

Charity Registration No. 1147318

Company Registration No. 02063893 (England and Wales)

SOFT TOUCH ARTS LIMITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

SOFT TOUCH ARTS LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees S Alizart (Co-Chair)
DE Francis (Co-Chair)
KM Hudson (Honorary Treasurer)
VJ Attwood
J Crofton
NS Nightingale
SK Norman
HD Pearson
CC Wigmore
S Mahomed (Appointed 26 January 2021)
C Stocker (Appointed 26 January 2021)
MN Oldman (Appointed 14 April 2021)
Charity number 1147318
Company number 02063893
Principal address 50 New Walk
Leicester
LE1 6TF
Registered office 50 New Walk
Leicester
LE1 6TF
Auditor Newby Castleman LLP
West Walk Building
110 Regent Road
Leicester
LE1 7LT
Bankers National Westminster Bank Plc
1 Granby Street
Leicester
LE1 6EJ

SOFT TOUCH ARTS LIMITED

CONTENTS

Page
Trustees' report 1 - 9
Independent auditor's report 10 - 12
Statement of financial activities 13
Balance sheet 14 - 15
Statement of cash flows 16
Notes to the financial statements 17 - 31

SOFT TOUCH ARTS LIMITED

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The trustees who are also directors of the charitable company present their report and financial statements for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), Accounting and Reporting by Charities: Statement of Recommended Practice for charities applying FRS 102 (2019), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

OBJECTIVES AND ACTIVITIES

The charity's objects per the Articles of Association are as follows:

  1. To advance the education of the public in the appreciation and practice of the arts.

  2. To relieve the needs of those who are most disadvantaged in society by way of social and economic deprivation, mental and physical disability and vulnerable physical circumstance, such as being in care or homeless, through participation in the arts, in particular but not exclusively through the creation of music, film and video, multimedia installations, sculpture, drama and graphic designs with the aim of improving their quality of life.

  3. To advance education, learning and personal development for the public benefit in particular but not limited to promoting the development of skills and aptitudes (such as creative expression, selfconfidence, group working and communication) through participation in the arts in all their forms.

  4. 1 -

SOFT TOUCH ARTS LIMITED

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Our Model of Working – Engage – Develop – Progress

We have a three-stage process which takes young people with challenging lives on a developmental journey; through engaging positive and inspiring activities, developing creative and life skills and giving them opportunities to progress in a positive way. To do this we work with a range of funders and partners from the public sector and business community, to ensure we have robust support mechanisms and progression opportunities for each young person we work with.

Our Values

Our values of creativity, respect, integrity, co-operation and caring, shape the way we engage children and young people who are struggling because of the life challenges they face. Experience and evaluation show that the creative processes we use (music, art, film, fashion, craft, cooking) are fun, inspiring and help people to feel good about themselves. The quality of the process, with creativity at its heart, along with the engagement skills of our staff, fosters trust, unlocks self-belief and untapped talent and inspires young people to feel valued as members of their communities and to aspire to a more positive future.

SOFT TOUCH ARTS LIMITED

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

The need/case for support

If you don’t have the security of a happy and stable home or have problems relating to others it can be difficult to view the future positively and know how to move forward. It can seem easier to withdraw from or fight against society. Leicester has one of the highest levels of child poverty in England, 40%. Children that live in poverty are more likely to leave school without five good GCSEs, and have low aspirations and an uncertain or insecure future in terms of finding employment. They are at increased risk of teenage pregnancy, drug use and anti-social behaviour. They have multiple challenges at an important transition point in their lives where their more privileged peers are far more likely to go into further education or find jobs.

What we do

The young people we work with have chaotic home lives, are in the care system, have mental health and behaviour issues, learning or physical disabilities, have been in trouble or in prison, or live in homes with very low incomes. They struggle to access activities that benefit their personal development, health and wellbeing and have often missed out on, or been failed by mainstream education.

Soft Touch Arts has been using creative projects to engage and bring out the best in young people that the system has failed in Leicestershire since 1986. Our creative projects unlock creativity, facilitate selfexpression and a sense of purpose, and support the development of personal and social skills. We support young people to have a more positive outlook and introduce them to new and inspiring opportunities, people and places.

Our work has kept young people out of prison, helped them re-engage with education, gives them employability skills and improves health and wellbeing and social and communication skills. You can see what young people say about the impact of our work here: https://www.youtube.com/watch?v=0r0Gf4Q8jBc

In 2016/17, we reviewed our strategic vision and set a 10-year mission to be more focused in our delivery to ensure that young people have the opportunity to engage in longer-term personal development opportunities. We developed our Engage – Develop – Progress model which underpins our fundraising strategy. Our current challenge is to secure more resources and generate income in our ‘progress stage’ to give young people opportunities to grow through work experience, mentoring and involvement in creative enterprise activities.

Public Benefit Statement

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aim and objectives.

The charity provides public benefit through the services provided to disadvantaged young people in Leicester city and Leicestershire.

ACHIEVEMENTS AND PERFORMANCE

The year 2020/21 was not a typical year as our operations were affected by the Covid-19 pandemic. This meant that we delivered less work than usual. For comparison, the numbers in brackets below relate to 2019/20. We have commented on the effect of the pandemic in more detail below.

We measure success through monitoring user engagement and evaluating the impact of projects and programmes. This includes using Charitylog software for quantitative recording and evaluation tools such as those based on the ‘Outcomes Star’.

Headline statistics:

SOFT TOUCH ARTS LIMITED

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Artistic programme

In spite of the disruption caused by the pandemic we continued to deliver several large, long-term programmes:

Big Lottery funded UpSTart programme working across New Parks, Beaumont Leys and Stocking Farm Online sessions were set up two weeks after the first lockdown and between March and September, 23 young people took part in these. There were many challenges, such as participants having a lack of equipment at home, and some young people did not want to take part. Social isolation was difficult to deal with for many and even when young people didn’t come to sessions, we made an effort to keep in touch. The case study below shows how this worked for one young person.

One young person attended the UpSTart group and was approaching her 25th birthday. She struggled with isolation during lockdown but kept herself busy being creative and joining as many Soft Touch online sessions as she could. She was a participant that we were particularly concerned about but actually coped better than we feared she might. She has now progressed from UpSTart onto our Enterprise project which works with young people to take the next steps in selling and marketing their creative work and has taken on a voluntary befriending role within her community. The young person stated “I’m sad and lonely… It’s [online sessions] a good way of keeping in touch with people while in isolation”.

Unlocked prison art programme

This three-year project was run in partnership with Leicestershire NHS Partnership Trust but we were not able to carry out any face-to-face work after the first lockdown. We re-aligned the project to engage with a group of former offenders/prisoners to create a virtual exhibition and launch, ‘Images of Release’.

NoteAble Youth Music funded programme

The sessions were moved online until the summer when, given that many of the young people that access this programme have high support needs and are particularly vulnerable, we decided to re-start small group face to face sessions three times a week.

Enterprise programme

This project supports young people to sell their work. Because of the nature of the participants once lockdown came in a focus was on supporting wellbeing. This took the form of online group sessions to begin with, followed by 121 ‘walk and talk’ sessions over the summer. In March we started a group photography project, walking around Leicester and preparing for an online exhibition.

YES

This project is aimed at young people farthest from the labour market and is delivered as part of a consortium through European and Lottery funding. The sessions went online from April 2020 but it took a few months to build up engagement. We worked with the project managers at Voluntary Action Leicester to put together and deliver art packs to young people at home. As soon as we were able to start face to face delivery again participation increased and since then we have had regular attendance.

Creative Studio is our paid-for alternative education service. Although everything stopped in April 2020, we were subsequently able to re-establish provision both online and face to face (this was allowable as participants were vulnerable students).

Other projects we were able to continue delivering through both online and face to face sessions include:

SOFT TOUCH ARTS LIMITED

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

enSENble

This Saturday morning session for young people with disabilities proved to be popular online. It was really important to keep it going because many of these participants were already socially isolated, before lockdown. Between September and December 2020, we were able to deliver the project at our building, restarting in March 2021 with January and February being online again.

SEN schools

Between Jan – March 2021 we delivered outdoor music at SEN schools. We had great engagement from students and teachers, and the musicians delivering reported that it helped them develop new delivery skills and ideas for how to deliver in a different way. This has now gone on to be a regularly commissioned service.

Café

At the start of the year this had been running three days a week. Between mid-April and early August, we were able to use the kitchen to run Zoom cooking sessions. Between 19 August and 4 November, we were able to open to the public with a limited menu.

We successfully organised a number of online exhibitions and events:

‘Images of Release’

This was viewed by some 320 people during February and March 2021.

NoteAble

1,524 people attended an online music gig.

Staffing

Coronavirus Job Retention Scheme

During 2020-21, we made full use of the Government’s Coronavirus Job Retention Scheme and established a ‘furlough’ rota for directors, project workers and support staff while we were operating a reduced and online delivery of services. From 30 June, as we were able to deliver more services and the CJRS enabled part-time working, we continued to furlough staff based on operational requirements, initially with project workers returning to work on a part-time basis. From July to September, there was a phased increase back to work and once schools returned in September, our project workers returned to work full time. Throughout the period, we topped up salaries to 100%. Overall, we received over £78,000 from the scheme.

We took on a new permanent member of staff, Chloe Frost as part time marketing assistant.

Due to the pandemic the funding for our existing Rank-supported young employee, Muzi Moyo, was extended for three months. We were successful in getting a further placement, with Nidah Hanif starting in September for one year. Our other young person, funded through the Rank Time to Shine scheme left early in February 2020.

Funding

Grant funders

Our grant funders, such as Youth Music, BBC Children in Need and Big Lottery continued with payments in spite of the fact that we couldn’t deliver the projects in the same way as planned, which recognised the work to find alternative ways of reaching our participants.

Earned income

We saw a 20% drop in fee income as a result of reduced activity and the income from the café was limited to the summer months resulting in an over 80% loss in café revenue.

Donations

Our regular and new donors were extraordinarily generous in supporting us through the lockdown period providing funds for additional equipment, for example Hastings providing funding for outdoor café furniture and a smoothie bike, Persimmon Homes and Rank emergency funding. Our business board set up a Virgin Money donations page, and through a variety of activities raised in excess of £3,000.

SOFT TOUCH ARTS LIMITED

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

- Emergency and Covid specific funding

We were able to access several emergency funding streams such as: the local authority business support grant for lost revenue over the lockdown period; Clothworkers’ Foundation; Children In Need COVID funding; and Highcross funds. This enabled us to buy much needed IT equipment and on-line meeting subscriptions to deliver on-line sessions and funding for ‘art packs’ which we were able to deliver to participants so they could take part in the online activities and work at home. In addition, we were able to secure funding from the COVID safe fund for refurbishment and reconfiguration of our youth arts toilets making them fit for purpose to meet COVID requirements. The Rank Coronavirus Recovery Grant enabled us to bring staff back from part-time furlough as well as contributing to lost café income when the 2nd national lockdown was brought in.

Core funding

Our primary core funders continue to be the Arts Council England and Leicester City Council. We have been able to access an Arts Council Coronavirus Recovery Grant to help with replacement IT equipment to enable staff to work from home more easily, contribution to staff salaries for development work and to help boost our reserves.

Business Development Board

As the Covid lockdown hit in March 2020, our business development board, alongside other business community contacts, rallied round to contribute ideas and activity to help generate funds to cover fee-based income that we lost as schools and other referral and funding partners were unable to operate. The business board helped organise and promote some online chef sessions which raised over £1,000 and gave us new restaurant contacts for our café project post-pandemic. They helped us get chosen to benefit from the Business Lockdown Fundraising Group which raised over £12,000 for Soft Touch Arts and two other local charities. Another locally-based company, Hastings Direct, invited us to apply four times to their Covid community support fund and this helped us buy equipment and materials to switch to online working. We received circa £4,000 in donations between April – August 2020.

This fundraising helped to make up for cancelling the bigger annual business comedy fundraising event. Positive new relationships with the other charities involved have developed and we are planning to run joint fundraising events in the future to spread the workload and costs of organising and promotion.

Due to the difficulty of extended Leicester lockdowns the business board decided to focus on maximising potential for new business relationships and support during our 35th year (October 2021 - September 2022).

Unfortunately, during the year one of our long-standing business board members, Tracey Miller, sadly passed away unexpectedly. She was a positive driving force within the board and we would like to acknowledge her support for Soft Touch over the years.

Adapting to the Covid-19 pandemic

Covid-19 and lockdown have, of course, had an impact on Soft Touch Arts. When lockdown started, we had to move all sessions with young people online. We made every effort we could to contact young people to inform them about this and to find out how they were coping with lockdown. Most young people chose to engage online, some didn’t and a few preferred this as a means of communication including some who returned having previously stopped attending in person.

We introduced a new strand of cooking work which was open to all participants. This involved dropping ingredients round to young people’s homes so that they could follow along on a Zoom session, and over the summer running socially distanced sessions in the forecourt of our building.

Given that we were classed as a youth setting working with vulnerable young people, over the summer we introduced some carefully managed and socially distanced face-to-face sessions, and for some projects continued to blend in some contact continuing online.

SOFT TOUCH ARTS LIMITED

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL REVIEW

The results for the year ended 31 March 2021 are shown in the Statement of Financial Activities on page 13. This, together with the balance sheet on pages 14-15, should be read in conjunction with the related notes which have been prepared in accordance with the Charities SORP 2019 (FRS 102).

Total income for the year amounted to £690,517 (2020 - £524,521). The principal funding source continued to be grant income. Total expenditure for the year amounted to £519,348 (2020 - £600,382). A breakdown of expenditure is set out in notes to the financial statements.

After transfers between funds, there was a surplus on unrestricted funds for the year totalling £181,544 and a deficit on restricted funds totalling £10,375. This has resulted in a total increase in funds for the year of £171,169. The funds for the charity at the year-end totalled £1,407,433 which comprise restricted funds of £1,066,877 and unrestricted funds of £340,556, of which £30,000 has been designated.

Reserves

Reserves are needed to cover any immediate drop in income caused by external unforeseeable circumstances. It is the policy of the board of trustees to maintain free reserves (unrestricted general funds less tangible fixed assets and long-term liabilities) at £137,000, being approximately six months unrestricted expenditure. The Board has designated £30,000 for a Property Maintenance reserve for future property capital repairs and maintenance. Soft Touch Arts currently has £159,683 in free reserves (see note 24), therefore free reserves are in excess of the reserves policy by approximately £23,000, which will be utilised in 2021-22.

PLANS FOR THE FUTURE

We feel a sense of achievement that we weathered the Covid storm and our financial position by the end of the 2020/21 year was far better than expected. This was as a result of the amazing support from our funders both in terms of ongoing grant support and additional emergency funding, generous donations from a multitude of fundraising activities, and Government support both locally through ongoing business support grants and the Coronavirus Job Retention Scheme grant which provided cover for almost 30% of salary costs. In addition, we experienced a greater up-surge in fees in the last quarter than was expected as schools were keen to utilise our alternative education provision. This has left us with a buffer in our unrestricted reserves in line with our policy of three months working capital.

At the time of writing, we fully expect to meet our income targets for 2021/22. We have had success with two large funding applications for one-year projects:

Additionally, we supported a successful application to the National Lottery by a consortium of organisations in the New Parks neighbourhood, which includes funding for us to support delivery.

We are working to an income generation strategy which we fully expect to bring in the rest of the income we need for 2021/22, as well as a proportion for the following years, through grants, fees and donations.

We are working towards launching a capital campaign following a feasibility study to upgrade the New Walk facing side of the building/forecourt. Succession planning for the director team continues, with it likely that in the year ahead one of the long-term directors will stand down and the trainee director will take their place.

SOFT TOUCH ARTS LIMITED

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Soft Touch Arts Limited is a company limited by guarantee and is governed by its Memorandum and Articles of Association. It is a charity registered with the Charity Commission. The charity is based in Leicester and

aims to engage with and change the lives of disadvantaged young people through the use of arts, media and music activities.

The following trustees / directors have served during 2020/21: S Alizart (co-Chair) DE Francis (co-Chair) KM Hudson (Honorary Treasurer) VJ Attwood TJ Burke – resigned 9 November 2020 J Crofton NS Nightingale SK Norman HD Pearson CC Wigmore S Mahomed – appointed 26 January 2021 C Stocker – appointed 26 January 2021 MN Oldman – appointed 14 April 2021

VJ Attwood, J Crofton, SK Norman, HD Pearson and CC Wigmore are the only salaried directors. These salaried directors deliver projects as well as operating as the charity's executive directors. The board meet on a periodic basis to make decisions on strategy and direct the management of the charity’s affairs. The Articles of Association set out the required quota of salaried and voluntary directors at any one meeting of the board.

The trustees are appointed in accordance with the company’s Articles of Association and are chosen to bring in the various knowledge, skills and experience required to meet the charity’s objectives. New trustees are given a full induction programme when they join and are offered training opportunities.

At the AGM the board elects a Chair, Vice Chair and Treasurer for an annual term. On 16 November 2020, DE Francis and S Alizart were reappointed as co-Chairs and K Hudson was reappointed Honorary Treasurer. It was decided that the role of Vice Chair was not needed as there are co-Chairs.

Risk Management

The trustees have identified and reviewed the major risks to which the charity is exposed and procedures have been established to mitigate these risks and are regularly addressed at the Board meetings.

The main key risks for the charity:

SOFT TOUCH ARTS LIMITED

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

STATEMENT OF TRUSTEES’ RESPONSIBILITES

The trustees (who are also directors of Soft Touch Arts Limited for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

AUDITORS

A resolution to reappoint Newby Castleman as our auditors will be put to members at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

On behalf of the board of trustees

KM Hudson (Honorary Treasurer) Trustee

Date: 27 November 2021

SOFT TOUCH ARTS LIMITED

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF SOFT TOUCH ARTS LIMITED

Opinion

We have audited the financial statements of Soft Touch Arts Limited (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustee's report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustee's report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

SOFT TOUCH ARTS LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SOFT TOUCH ARTS LIMITED

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement set out on page 9 the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. However, responsibility for the prevention and detection of fraud ultimately rests with both those charged with governance and management of the charitable company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

SOFT TOUCH ARTS LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SOFT TOUCH ARTS LIMITED

Audit response to risks of irregularities identified

Our procedures to respond to risks identified included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

This report is made solely to the charitable company's members, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Newby Castleman LLP 2 December 2021 Chartered Accountants Statutory Auditor West Walk Building 110 Regent Road Leicester LE1 7LT

Newby Castleman LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

SOFT TOUCH ARTS LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations
3
70,414
115,603
Charitable activities
4
208,124
265,713
Other trading activities
5
20,601
-
Investments
6
5,392
-
Other income
7
4,485
185
Total
309,016
381,501
Expenditure on:
Raising funds
8
31,563
-
Charitable activities
9
103,207
305,547
Other
12
77
78,954
Total
134,847
384,501
Net income/(expenditure)
174,169
(3,000)
Transfers between funds
7,375
(7,375)
Net movement in funds
181,544
(10,375)
Reconciliation of funds
Total funds brought forward
159,012
1,077,252
Total funds carried forward
340,556
1,066,877		 Total
2021
£
186,017
473,837
20,601
5,392
4,670
690,517
31,563
408,754
79,031
519,348
171,169
-
171,169
1,236,264
1,407,433		 Total
2020
£
23,544
461,551
22,246
12,095
5,085
524,521
31,507
568,875
-
600,382
(75,861)
-
(75,861)
1,312,125
1,236,264

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

All income and expenditure derive from continuing activities.

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

SOFT TOUCH ARTS LIMITED

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Intangible assets
15
Tangible assets
16
Current assets
Debtors
17
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
19
Total net assets
The funds of the charity
Restricted funds
22
Unrestricted funds:
Designated funds
23
General funds
Total charity funds		 2021
£
£
4,500
1,101,535
1,106,035
128,119
381,430
509,549
(86,323)
423,226
1,529,261
(121,828)
1,407,433
1,066,877
30,000
310,556
340,556
1,407,433		 2020
£
£
5,051
1,128,764
1,133,815
82,730
227,749
310,479
(83,843)
226,636
1,360,451
(124,187)
1,236,264
1,077,252
-
159,012
159,012
1,236,264

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

For the year ending 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies but as this company is a charity, it is subject to audit under the Charities Act 2011.

SOFT TOUCH ARTS LIMITED

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2021

Directors' responsibilities:

The financial statements were approved and authorised for issue by the board of trustees on 27 November 2021 and are signed on its behalf by:

KM Hudson (Honorary Treasurer)

Trustee

Company Registration No. 02063893

The notes on pages 17 - 31 form part of these financial statements.

SOFT TOUCH ARTS LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from operations
26
Investing activities
Purchase of intangible assets
Purchase of tangible fixed assets
Investment income
Net cash used in investing activities
Financing activities
Repayment of ICOF loan
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
-
(10,446)
5,392
(2,202)		 £
160,937
(5,054)
(2,202)
153,681
227,749
381,430		 2020
£
(5,510)
(11,177)
12,095
(6,518)		 £
20,826
(4,592)
(6,518)
9,716
218,033
227,749

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Soft Touch Arts Limited is a private company limited by guarantee incorporated in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office and place of business is given in the legal and administrative information page of these financial statements.

1.1 Basis of preparation

The charity is a public benefit entity as defined by FRS 102. These financial statements have been prepared in accordance with: the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102"), Accounting and Reporting by Charities: the Statement of Recommended Practice for charities applying FRS 102 (2019), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

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

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

1.2 Going concern

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

1.3 Charitable funds

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

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

1.4 Income recognition

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

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

Income from charitable activities includes income received from local authorities, project fees and other grant providers. Income from these categories is recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured with reliability. If entitlement is not met, then the amounts are deferred.

Income from trading activities comprises sponsorship income and income derived from fundraising events. Income is received in exchange for supplying goods and services and is recognised when entitlement occurs.

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

Investment income is earned through holding assets for investment purposes. It comprises bank interest and rental income, which are recognised on an accruals basis.

Government grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured with reliability. If entitlement is not met, then the amounts are deferred.

1.5 Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to the category. Expenditure is recognised when there is a legal or constructive obligation to make payments to third parties, it is probable that settlement will be required and the amount of the obligation can be measured reliably. It is recognised under the following headings:

Irrecoverable VAT is charged against the category of resources expensed for which it was incurred.

1.6 Support costs

Support costs are those that assist the work of the charity but do not directly represent charitable activities and costs of raising funds and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Support costs are allocated to costs of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

The analysis of these costs is included in note 11.

1.7 Intangible fixed assets other than goodwill

Intangible assets are measured at cost, net of amortisation and any impairment losses.

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

Software 10 years

1.8 Tangible fixed assets

Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.

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

Freehold land Not depreciated Freehold buildings 2% per annum of cost Fixtures, fittings & equipment 10% per annum of net book value, straight line over 3, 5 or 7 years Motor vehicles 20% per annum of net book value

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

1.10 Financial instruments

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

Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the Statement of Financial Activities ("SOFA").

1.11 Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

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

1.12 Retirement benefits

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

1.13 Leases

Rentals payable under operating leases, including any lease incentives received, are charged to the SOFA on a straight line basis over the term of the relevant lease.

1.14 Taxation

Soft Touch Arts Limited is a registered charity and no taxation provision is required as its income from charitable activities falls within the various exemptions available to registered charities.

2 Critical accounting estimates and judgements

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

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of land and buildings

The valuation of land and buildings has been assessed by the trustees, who consider that the value in use by the charity is consistent with the value included in the accounts.

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

3 Income from donations

Unrestricted
Restricted
Total Unrestricted
Restricted
funds
funds
funds
funds
2021
2021
2021
2020
2020
£
£
£
£
£
Donations
9,986
6,940
16,926
20,067
3,477
Grant income
60,428
108,663
169,091
-
-
70,414
115,603
186,017
20,067
3,477
Income from charitable activities
Unrestricted Restricted
Total
Unrestricted Restricted
funds
funds
funds
funds
2021
2021
2021
2020
2020
£
£
£
£
£
Arts activities
207,829
265,016
472,845
181,012
271,814
Catering activities
295
697
992
3,620
5,105
208,124
265,713
473,837
184,632
276,919
Income from arts activities include the following:
Core funding
102,939
Project grants
283,890
Project fees
86,016
472,845		 Total
2020
£
23,544
-
23,544
Total
2020
£
452,826
8,725
461,551
101,310
245,501
106,015
452,826

4 Income from charitable activities

5 Income from other trading activities

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Sponsorship income
-
-
Fundraising events
20,601
-
20,601
-		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
-
500
800
20,601
20,946
-
20,601
21,446
800		 Total
2020
£
1,300
20,946
22,246

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

6 Income from investments

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Rental income
5,329
-
Interest receivable
63
-
5,392
-		 Unrestricted
Restricted
funds
funds
2021
2021
£
£
Rental income
5,329
-
Interest receivable
63
-
5,392
-		 Unrestricted
Restricted
funds
funds
2021
2021
£
£
Rental income
5,329
-
Interest receivable
63
-
5,392
-		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
5,329
11,757
-
63
338
-
5,392
12,095
-		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
5,329
11,757
-
63
338
-
5,392
12,095
-		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
5,329
11,757
-
63
338
-
5,392
12,095
-		 Total
2020
£
11,757
338
12,095
Other income
Unrestricted
Restricted
funds
funds
2021
2021
£
£
Other income
4,485
185
Expenditure on raising funds
Unrestricted
Restricted
funds
funds
2021
2021
£
£
Staging fundraising
events
2,361
-
Staff costs
29,202
-
31,563
-		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
4,670
1,802
3,283
Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
2,361
2,604
-
29,202
28,903
-
31,563
31,507
-		 Total
2020
£
5,085
Total
2020
£
2,604
28,903
31,507

7 Other income

8 Expenditure on raising funds

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

9 Expenditure on charitable activities

Activities
undertaken
directly
Note 10
£
Arts and catering activities
273,638
Unrestricted funds
Restricted funds		 Support
Costs
Note 11
£
135,116		 Total
2021
£
408,754
103,207
305,547
408,754		 Total
2020
£
568,875
233,808
335,067
568,875

10 Expenditure on activities undertaken directly

Staff costs
Project costs
Motor and transport costs
Project worker costs		 2021
£
222,586
30,535
1,539
18,978
273,638		 2020
£
313,794
66,673
4,713
29,738
414,918

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

11 Expenditure on support costs

Staff costs
Depreciation
Premises costs
Motor and transport costs
Audit fees
Printing, postage and stationery
Computer costs
Telephone
Legal and professional
Loan interest and bank charges
Irrecoverable VAT
Sundry
Charitable activities		 2021
£
42,945
37,320
15,704
1,609
8,125
1,106
2,728
2,763
5,128
8,346
6,748
2,594
135,116
135,116		 2020
£
49,077
37,196
16,662
5,497
8,125
4,663
2,631
2,970
6,361
8,745
1,925
10,105
153,957
153,957

All support costs have been allocated to charitable activities based on their usage.

Support costs include governance costs totalling £51,070 (2020: £57,203) which comprise a proportion of staff costs and audit fees.

The amount charged to the SOFA in respect of auditor's remuneration was £8,125 (2020 - £8,125).

12 Other expenditure

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Loss on disposal of
tangible fixed assets
77
829
Staff costs
-
78,125
77
78,954		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
906
-
-
78,125
-
-
79,031
-
-		 Total
2020
£
-
-
-

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

13 Trustees

Five of the trustees received remuneration during the year totalling £122,770 (2020 - £131,235). This is as permitted by the Articles of Association and is made up as follows:

SK Norman £26,545 (2020 - £26,545) VJ Attwood £26,545 (2020 - £26,545) HD Pearson £16,590 (2020 - £18,419) CC Wigmore £19,909 (2020 - £26,545) J Crofton £33,181 (2020 - £33,181)

Pension contributions for the above Trustees amounted to £3,032 (2020 - £3,263).

Two trustees were reimbursed a total of £267 travelling expenses (2020 - five were reimbursed £1,121).

14 Employees

The average monthly number of employees during the year was:

Directors
Project workers
Administrative workers
Sessional workers
Apprentice
Intern
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
5
5
6
6
1
2
25
2021
£
344,659
21,997
6,202
372,858		 2020
Number
5
5
6
7
1
2
26
2020
£
360,186
25,111
6,477
391,774

There were no employees whose annual remuneration was £60,000 or more.

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

15 Intangible fixed assets

Cost
At 1 April 2020 and 31 March 2021
Amortisation and impairment
At 1 April 2020
Amortisation charged for the year
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020
Tangible fixed assets
Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation and impairment
At 1 April 2020
Depreciation charged in the year
Eliminated in respect of disposals
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020		 Freehold
land and
buildings
Fixtures,
fittings &
equipment
£
£
1,183,529
169,819
2,967
7,479
-
(41,968)
1,186,496
135,330
105,296
124,943
22,830
12,794
-
(41,062)
128,126
96,675
1,058,370
38,655
1,078,233
44,876		 Motor
vehicles
£
8,016
-
-
8,016
2,361
1,145
-
3,506
4,510
5,655		 Software
£
5,510
459
551
1,010
4,500
5,051
Total
£
1,361,364
10,446
(41,968)
1,329,842
232,600
36,769
(41,062)
228,307
1,101,535
1,128,764

16 Tangible fixed assets

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

17
Debtors
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income		 2021
£
42,824
85,295
128,119		 2020
£
21,059
61,671
82,730

18 Creditors: amounts falling due within one year

Notes
ICOF loan
20
Taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
7,085
15,621
2,965
2,053
58,599
86,323		 2020
£
6,928
22,283
2,190
1,842
50,600
83,843

Deferred income is provided for in respect of grant income and income invoiced in advance for projects occurring in the next financial year.

19 Creditors: amounts falling due after more than one year

19
Creditors: amounts falling due after more than one year
Notes
ICOF loan
20
20
Loans and overdrafts
ICOF loan
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 2021
£
121,828
2021
£
128,913
7,085
121,828
88,839		 2020
£
124,187
2020
£
131,115
6,928
124,187
91,861

The loans are secured by a first legal charge over the freehold land and property and a fixed and floating charge over all other assets.

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

21 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees.

The charge to the SOFA in respect of defined contribution schemes was £6,202 (2020 - £6,477). This expenditure has been allocated to support costs and unrestricted general funds.

22 Restricted funds

The funds of the charity include restricted funds held for specific purposes:

Balance at 1
April 2020
£
New Building
830,440
Time to Shine
3,212
UpSTart
103,757
Prison Unlocked
64,527
STARS and Soft
Sell
26,652
NOTEable
4,550
RAP
8,719
What If
-
Coronavirus Job
Retention Scheme
-
Rank
-
Other funds
35,395
1,077,252		 Movement in funds
Income Expenditure Depreciation
charge
£
£
£
-
(829)
(21,791)
12,555
(15,767)
-
83,124
(78,254)
(746)
330
(62,723)
(40)
11,500
(16,047)
-
33,324
(34,749)
-
30,500
(27,106)
-
63,808
(2,501)
(17)
78,125
(78,125)
-
22,271
(22,271)
-
45,964
(21,142)
(2,393)
381,501
(359,514)
(24,987)		 Transfers Balance at 31
March 2021
£
£
-
807,820
-
-
-
107,881
-
2,094
-
22,105
-
3,125
-
12,113
-
61,290
-
-
-
-
(7,375)
50,449
(7,375)
1,066,877

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

22 Restricted funds

Restricted funds
Balance at 1
April 2019
£
New Building
856,283
HLF - 1950s
10,967
Time to Shine
8,152
UpSTart
82,840
Prison Unlocked
50,129
STARS and Soft
Sell
46,258
MODS Grant
38,702
NOTEable
-
RAP
-
Profit for Good
-
Other funds
44,311
1,137,642		 Movement in funds
Income Expenditure Depreciation
charge
£
£
£
-
(829)
(25,843)
-
(519)
(357)
8,668
(13,608)
-
94,354
(72,691)
(746)
39,000
(24,595)
(7)
17,615
(37,221)
-
11,351
(47,435)
-
49,179
(44,629)
-
20,094
(11,375)
-
11,233
(11,160)
-
32,985
(42,879)
(2,002)
284,479
(306,941)
(28,955)		 (Continued)
Transfers Balance at 31
March 2020
£
£
-
830,440
-
10,091
-
3,212
-
103,757
-
64,527
-
26,652
(2,618)
-
-
4,550
-
8,719
-
73
(7,184)
25,231
(9,802)
1,077,252

Transfers have been made into unrestricted funds from restricted funds to represent a fund that is an invoiced fee project rather than a genuine restricted fund.

New building

Part funding received in respect of the Soft Touch Arts building.

Time to Shine

Funding to employ a young marketing intern for a year.

UpSTart

The UpSTart programme has five years of funding from the Big Lottery targeting young people from the New Parks, Beaumont Leys, stocking Farm and Mowmacre Hill areas of Leicester. The programme has three phrases of engagement, development, and progression for participating young people.

Prison Unlocked

Prison Unlocked is a three year programme working on behalf of Leicestershire Partnership (NHS) Trust in partnership with HMP Prison and probation aiming to use art as a means to improving mental health and wellbeing. The programme will have annual exhibitions across the New Walk Museum and Soft Touch Arts sites as well as other smaller exhibitions throughout each year. De Montfort University are conducting research alongside the programme into the positive effects of art on mental health and wellbeing.

STARS and Soft Sell

STARS & Soft Sell Creative Enterprise project aims to support budding artists and makers with selling and marketing their work. Participants work closely with our Creative Enterprise programme coordinator as well as receiving guidance from industry professionals on a range of creative business skills. In addition, Soft Touch support these artists and maker by providing a space for them to sell work at weekly market events and online, use their extensive network to reach out to local businesses to commission work and provide participants with opportunities to network and find work experience.

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

22 Restricted funds

(Continued)

NOTEable

The very popular Mixt up funding from youth music came to an end in December 2018 with another busy year of sessions at our studios, however youth music have kindly continued to fund us, continuing sessions at Soft Touch Arts studios. This will allow us to continue our sessions in 2020/21 with a focus on girls, people with SEN needs, deprived neighbourhoods and also a strand of outreach sessions working with the YOS.

RAP

RAP is an offer to fund a fulltime 1-year internship through RANK at the national living wage to develop an intern as a young leader, moving them forward in life and offering them further opportunity with support from RANK and Soft Touch Arts.

What If

The "What IF…" inspiring futures project is designed for young people aged 15-24, living in the Leicester or Leicestershire area and have left school or college in the last couple of years feeling unsure of the next steps required to access employability or college.

The main aims of the project are to engage with young people through The Arts and increase their employability through personal development and creative skills. Running through the core of the project will be creativity.

Throughout the "What IF..." project young people will learn interpersonal skills, employer expectations, interview techniques, managing emotions and behaviours for the workplace and confidence building skills. During practical sessions they will experience creative workshops such as graffiti art and music whilst working on skills to help them in the next stage of their life, whether that’s finding a job, going to college or getting an apprenticeship.

Coronavirus Job Retention Scheme

Represents amounts received from the Government to cover staff costs during the Covid-19 pandemic.

Other funds

Other funds comprises of several funds that have been aggregated together for disclosure purposes, with only material fund balances and movements being disclosed separately.

23 Designated funds

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

Movement in funds
Balance at 1 Income Expenditure Transfers Balance at 31
April 2020 March 2021
£ £ £ £ £
Property maintenance reserve - - - 30,000 30,000
- - - 30,000 30,000

Property maintenance reserve

The Trustees have designated £30,000 via a transfer from general funds for use in respect of future property repairs and maintenance.

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

24
Analysis of net assets between funds
Fund balances at 31 March 2021 are
represented by:
Intangible fixed assets
Tangible assets
Current assets/(liabilities)
Long term liabilities
Fund balances at 31 March 2020 are
represented by:
Intangible fixed assets
Tangible assets
Current assets/(liabilities)
Long term liabilities		 General
funds
Designated
funds
Restricted
funds
2021
2021
2021
£
£
£
4,500
-
-
268,201
-
833,334
159,683
30,000
233,543
(121,828)
-
-
310,556
30,000
1,066,877
General
funds
Designated
funds
Restricted
funds
2020
2020
2020
£
£
£
5,051
-
-
277,253
-
851,511
895
-
225,741
(124,187)
-
-
159,012
-
1,077,252		 Total
2021
£
4,500
1,101,535
423,226
(121,828)
1,407,433
Total
2020
£
5,051
1,128,764
226,636
(124,187)
1,236,264

25 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 151,019 146,123

Transactions with related parties

During the year, ER Crofton, the spouse of J Crofton, was paid £1,737 (2020: £290) for her services as an employee. SJ Collier, the spouse of VJ Attwood, was paid £2,592 (2020: £2,584) for her services as an employee. Purchases totalling £2,998 (2020: £1,300) were made from C Lincoln, the spouse of C Wigmore.

No guarantees have been given or received.

SOFT TOUCH ARTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

26 Cash generated from operations 2021 2020
£ £
Surplus/(deficit) for the year 171,169 (75,861)
Adjustments for:
Investment income (5,392) (12,095)
Loss on disposal of tangible fixed assets 906 -
Amortisation and impairment of intangible assets 551 459
Depreciation and impairment of tangible fixed assets 36,769 36,737
Movements in working capital:
(Increase)/decrease in debtors (45,389) 66,304
Increase in creditors 2,323 5,282
Cash generated from operations 160,937 20,826
27 Analysis of changes in net funds
At 1 April Cash flows At 31 March
2020 2021
£ £ £
Cash at bank and in hand 227,749 153,681 381,430
Loans falling due within one year (6,928) (157) (7,085)
Loans falling due after more than one year (124,187) 2,359 (121,828)
96,634 155,883 252,517
At 1 April Cash flows At 31 March
2019 2020
£ £ £
Cash at bank and in hand 218,033 9,716 227,749
Loans falling due within one year (6,543) (385) (6,928)
Loans falling due after more than one year (131,090) 6,903 (124,187)
80,400 16,234 96,634

28 Controlling party

Soft Touch Arts Limited is a company limited by guarantee and not having a share capital; it is incorporated under the Companies Act and governed by the Memorandum and Articles of Association of the company. The Trustees of the company are elected members and act as directors of the company and are deemed to be the controlling party of the company.