COMPANY REGISTRATION NUMBER: 07123227 CHARITY REGISTRATION NUMBER: 1148716
Project Space Leeds
Company Limited by Guarantee
Financial Statements
31st March 2022
Project Space Leeds
Company Limited by Guarantee
Financial Statements
Year ended 31st March 2022
| Page | |
|---|---|
| Trustees' annual report (incorporating the director's report) | 1 |
| Independent auditor's report to the members | 6 |
| Consolidated statement of financial activities (including income and expenditure account) | 9 |
| Consolidated and charity statement of financial position | 10 |
| Consolidated statement of cash flows | 11 |
| Notes to the financial statements | 12 |
Project Space Leeds
Company Limited by Guarantee
Trustees' Annual Report
Year ended 31st March 2022
The Trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31st March 2022.
Reference and administrative details
| Registered charity name | Project Space Leeds | |
|---|---|---|
| Charity registration number | 1148716 | |
| Company registration number | 07123227 | |
| Principal office and registered | The Tetley | |
| office | Hunslet Road | |
| Leeds | ||
| LS10 1JQ | ||
| The Trustees | Mr J D Hill | |
| Mr J M Straight | (Resigned 7 September 2022) | |
| Ms J D Cameron | (Resigned 7 September 2022) | |
| Mr M D Pattinson | (Resigned 16 May 2022) | |
| Miss S Netherwood | ||
| Mr A M P L Lovitt | ||
| Mr D J Warren | ||
| Mr S J Foster | ||
| Mr F J Finlay (Chair) | ||
| Ms G Pollock | ||
| Mr S Barclay | ||
| Ms S Cooper | (Appointed 16 March 2022) | |
| Ms M J Duxbury | (Appointed 16 March 2022) | |
| Miss T Ahmed | (Appointed 16 March 2022) | |
| Ms L Nhuyen | (Appointed 16 March 2022) | |
| Company secretary | Joss Richardson | |
| Auditor | Sagars Accountants Ltd | |
| Chartered accountants & statutory auditor | ||
| Gresham House | ||
| 5-7 St Paul's Street | ||
| Leeds | ||
| LS1 2JG | ||
| Bankers | Lloyds | |
| 65-68 Briggate | ||
| Leeds | ||
| LS1 6LH |
- 1 -
Project Space Leeds
Company Limited by Guarantee
Trustees' Annual Report (continued)
Year ended 31st March 2022
Structure, governance and management
Governing document
Project Space Leeds (also known as PSL) is the charity that operates The Tetley. The Tetley is a pioneering centre for contemporary art located in the stunning art deco headquarters of the former Tetley Brewery. From the heart of Leeds' South Bank, The Tetley creates a platform for amazing emerging artists, presents breath-taking free exhibitions and helps communities and young people in Leeds find their creative voice.
The charity is a company limited by guarantee. The company gained charitable status on 9 August 2012 and since then it has been governed by its Memorandum and Articles of Association, as amended by special resolution on 9 August 2012. The Articles of Association were amended and the revised articles adopted on 13 March 2018.
Recruitment and appointment of new Trustees
The charity may by ordinary resolution appoint a director. Directors serve for a fixed term of three years. At the end of the fixed term, that director must retire and, if recommended for re-election by the directors, may serve for a second three year fixed term and then must retire as a director and member at the end of this second three year term. Exceptionally, after a second three-year term, a director may be re-elected for one further one year term.
Induction and training of new Trustees
All new Trustees are sent an induction pack on appointment to provide them with background information on the organisation, its structure, business plan, its policies and its finances. This forms part of the training of Trustees. Away days and formal training days for Trustees are held from time-to-time.
Insurance
In line with good practice, the charity purchased insurance to indemnify its Trustees against losses caused by any legal actions taken against them.
Organisational structure
The day-to-day management of the charity is delegated to the management team listed below:
| Director | Bryony Bond |
|---|---|
| Deputy Director | Samantha Fish (maternity leave from 13 September 2021 to 16 |
| August 2022) | |
| Head of operations (maternity cover) | Adam Dabrowski (6 September 2021 to 6 March 2022) |
| Head of operations | Holly Jackson (1 April 2022 to 30 September 2022) |
Pay for key management personnel, which is agreed by the Trustees, is set and agreed by reference to budgets and against industry standards.
The trading subsidiary, PSL Enterprises Ltd (PEL), also has an active board of directors, who also report into the main charity board.
Risk management
The Trustees understand their duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
A strategic risk register is in place and is reviewed on a quarterly basis by the Audit Committee and by the board.
The Trustees consider that the principal risks facing the charity and its subsidiary undertakings are the short-term nature of the lease of the Tetley’s current location, the disruption to trading and activities as the redevelopment of Aire Park continues, and any further impact of Covid-19 on trading. In order to mitigate the above risks the trustees have a delegated property group who are working in close consultation with Vastint the developers of Aire Park and likely future owners of the Tetley’s current location, Leeds City Council and other property owners as well as other key stakeholders to ensure the long-term future of Project Space Leeds whether in its current location or elsewhere.
- 2 -
Project Space Leeds
Company Limited by Guarantee
Trustees' Annual Report (continued)
Year ended 31st March 2022
Objectives and activities
Objectives and aims
The objects of the charity are:
The advancement of public education in and appreciation of the arts in particular but not exclusively by: - Fostering and promoting an understanding and appreciation of the arts for the benefit of the public. - Promoting and advancing the participation and education of the general public in the visual arts. - Providing and maintaining an art gallery for the exhibition of visual art to the general public. - Delivering visual arts and education programmes to children, young adults and adult learners. - Providing artists with advice, assistance and access to non-commercial gallery space for the public benefit.
The Trustees have considered the Charity Commission's guidance on public benefit and believe that all of the core objects of the charity are clearly aligned with this. The charity is providing and maintaining a centre for contemporary art, offering the opportunity for the general public to view free visual art. This directly relates to the aims of the charity. Further to this, and also in line with the objects of the charity, opportunities, education, advice and assistance are available to artists and an arts and education programme is in place with offerings for participants of different ages.
Achievements and performance
Main activities of the year
The Tetley fully reopened to the public on 20 May 2021, and have been open 5 days a week since. We opened six major exhibitions this year, including a new artist-designed play space, commissioned 12 artists based in the Leeds city region to make new work in our building and on-line, and supported other artists and makers with smaller-scale showing and selling opportunities and access to space to rehearse and try out new ideas..
“Mel Brimfield: From This World, To That Which Is To Come” opened digitally in March 2021, and then physically from 20 May. Lauren Gault: Cithra (17 Sept 21 – 3 Jan 2022) was co-commission with Gasworks, London. Superheroes of Leeds (18 August – 12 December 2021), Beth Shapeero: The Shape of Things (19 Nov 2021 – 6 Mar 2022) made in collaboration with learners from Leeds City College and was supported by the Alexandra Reinhardt Memorial Award (ARMA) which is managed by Engage, the National Association for Gallery Education. Justin Fitzpatrick: Alpha Salad (26 Jan – 8 May 2022) was supported with funds from Fluxus (Institute Francais) and the Henry Moore Foundation.
On 23 Feb 2022, The Tetley launched Tiny Tetley Studio by Stephanie Jefferies: an artist designed play space for children under 5 and their families, which is free to access five days a week.
The Tetley partnered with Art Night London to bring international artists The Guerrilla Girls’ major public art commission ‘The Male Graze’, to a billboard in Leeds (18 June to 18 July 2021).
We also commissioned Leeds-based artists Herfa Thompson and Hollie Fuller to make year-long interventions in the café and on the terrace.
Over this year we ran PANIC (Promoting an Artists’ Network in the Crisis) and commissioned 16 artists in the region to make new work in response to the pandemic, presenting it online. We also continued our programme sponsored by Tetley’s Beer supporting four regional artists to develop their work with a bespoke programme of support over a year, including access to the artist studio and showcasing opportunities. We continued our partnership with Opera North and the University of Leeds with an open studio with the DARE prize winner Redell Olsen.
We delivered over 130 sessions of participation and over 2,200 people took part in our activities which ranged from sessions using the exhibitions to promote mental health, discussions on disability in the arts, professional development sessions and family creative activities.
Financial review
Covid-19 has continued to have a lasting impact on The Tetley’s finances, particularly in December 2021 when many events had to be cancelled. This has been further compounded by the ongoing development of Aire Park, which has made access to our building difficult over the year ending 31 March 2022. As a result, income into the trading company continues to be less than we would expect in a normal year. However, venue hire, in particular weddings, are steadily recovering to their preCovid levels.
The deficit shown in this year relates to the expenditure of grants received and recognised in prior years, with several projects delayed due to Covid-19 and other grants for multiple years.
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Project Space Leeds
Company Limited by Guarantee
Trustees' Annual Report (continued)
Year ended 31st March 2022
Financial review (continued)
These accounts were prepared in advance of the Arts Council England's announcement of National Portfolio Organisations 2023-26 and have been prepared on the assumption that Project Space Leeds will continue to be included in the portfolio.
As stated in note 3 to the financial statements the trustees have made an informed judgement at the time of approving the financial statements that there is a reasonable expectation that the group has reasonable expectations of income, adequate resources and stakeholder support to continue in operational existence for the foreseeable future.
Reserves policy
The reserves policy is for the charity to aim to have unrestricted (free) group reserve levels sufficient to cover the cost of six months of overheads relating to charitable activities. Future budgets are designed to build up free reserves, although it is acknowledged that the charity may take some time to achieve its desired policy.
Funds in deficit
There are currently no funds in deficit as at 31 March 2022 (2021: £nil).
Future developments
The Tetley’s strategic priorities are:
1.To produce excellence
We are ambitious and pursue the highest quality in everything we do, we develop talent and continuously improve the quality of all our work and processes
2.To be more inclusive and relevant to more people
We champion diversity across all levels of the organisation, in all activities and build powerful connections with our communities and audiences
3.To operate a dynamic and resilient business model
We build on current income streams and develop new revenue streams, adapting to any challenges and taking advantage of opportunities
4.To be an exemplar of environmental responsibility
Environmental strategy is a core part of our business plan and we advocate and educate through our all our activities
And has the following high-level objectives:
-To devise and deliver an ambitious and high-quality programme that champions diverse voices and which supports individuals who may have faced barriers to developing their creative practice.
-To build powerful connections between our audiences and The Tetley’s creative programme; to increase our understanding of, and be more inclusive of the diverse communities that live and work in Leeds.
-To increase the depth and breadth of experiences available for families and young people; expanding the possibilities of our galleries to offer self-directed play and creative expression.
-To make the most of digital opportunities to widen audiences, increase income and be more inclusive.
-To enable our people to thrive; create a unified team that reflects the population of Leeds, where diversity is valued, and conditions support an individual's needs
-To secure the long-term future of The Tetley in Leeds
-To better understand and reduce our carbon footprint
-To develop a consistent income stream that enables us to sustain our own future, and align contemporary art with a contemporary commercial offer suitable for our audience.
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Project Space Leeds
Company Limited by Guarantee
Trustees' Annual Report (continued)
Year ended 31st March 2022
Trustees' responsibilities statement
The Trustees, who are also directors 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 charity Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the applicable Charities SORP;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a Trustee at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
-
they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
Sagars Accountants Ltd are deemed to be re-appointed as auditors under section 487(2) of the Companies Act 2006. 20-Oct-2022
The Trustees' annual report were approved on ………………………. and signed on behalf of the board of Trustees by:
Mr F J Finlay Trustee
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Project Space Leeds
Company Limited by Guarantee
Independent Auditor's Report to the Members of Project Space Leeds (continued)
xxxxxxxxxxxxx
Year ended 31st March 2022
Opinion
We have audited the group and parent company financial statements of Project Space Leeds (the 'charity') for the year ended 31st March 2022 which comprise the consolidated statement of financial activities (including income and expenditure account), the group and charity statement of financial position, consolidated statement of cash flows and the related notes, 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:
-
give a true and fair view of the state of the group and charitable company’s affairs as at 31 March 2022 and of the group’s incoming resources and application of resources, including its income and expenditure for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
-
have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011
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 charity 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.
Material uncertainty relating to going concern
In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 3 to the financial statements regarding the ability of the Charity and its subsidiary (‘the Group’) to continue as a going concern. Note 3 outlines the impact of the uncertainties facing the Group, in particular with regards to the property from which the Group operates and the level and sources of funding available in the foreseeable future. These conditions indicate the existence of material uncertainties, which may cast significant doubt as to the company’s ability to continue as a going concern. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.
Other information
The Trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Trustees' report has been prepared in accordance with applicable legal requirements.
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Project Space Leeds
Company Limited by Guarantee
Independent Auditor's Report to the Members of Project Space Leeds (continued)
Year ended 31st March 2022
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
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.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019.
We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context were Charities Commission Regulations and Health and Safety and safeguarding considerations.
- 7 -
Project Space Leeds
Company Limited by Guarantee
Independent Auditor's Report to the Members of Project Space Leeds (continued)
Year ended 31st March 2022
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be with regards to the timing of recognition of income and the override of controls by management.
Our audit procedures to respond to these risks included:
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enquiries of management and the Trustees about their own identification and assessment of the risks of irregularities,
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sample testing on the posting of journals,
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reviewing accounting estimates for biases,
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reviewing agreements and carrying out detailed substantive testing on the completeness of income,
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reading minutes of meetings of those charged with governance; and
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obtaining confirmation from the Trustees that there was no regulatory correspondence with the Charity Commission or other regulatory bodies.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Susan Seaman
(Senior Statutory Auditor)
For and on behalf of Sagars Accountants Ltd Chartered accountants & statutory auditor Gresham House 5-7 St Paul's Street Leeds LS1 2JG
20 Oct
…………………….2022
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Project Space Leeds
Company Limited by Guarantee
Consolidated Statement of Financial Activities (including income and expenditure account)
Year ended 31st March 2022
| 2022 | 2021 | |||||
|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Endowment | ||||
| funds | funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | £ | |
| Income and endowments | ||||||
| Donations and legacies | 5 | 599,200 | 29,917 | – | 629,117 | 1,449,420 |
| Charitable activities | 6 | 41,375 | 41,000 | – | 82,375 | 37,069 |
| Other trading activities | 7 | 544,354 | – | – | 544,354 | 69,009 |
| Investment income | 8 | 8 | – | – | 8 | 15 |
| Other income | 9 | 15,332 | – | – | 15,332 | 16,794 |
| ------------------------------ | -------------------------- | ------------- | ------------------------------ | ------------------------------ | ||
| Total income | 1,200,269 | 70,917 | – | 1,271,186 | 1,572,307 | |
| ============================== | ========================== | ============= | ============================== | ============================== | ||
| Expenditure | ||||||
| Expenditure on: | ||||||
| Raising funds | 10/11 | (803,538) | (26,000) | – | (829,538) | 605,136 |
| Charitable activities | 10/11 | (493,169) | (278,660) | (19,250) | (791,079) | 544,410 |
| ------------------------------ | -------------------------- | -------------------------- | ------------------------------ | ------------------------------ | ||
| Total expenditure | (1,296,707) | (304,660) | (19,250) | (1,620,617) | 1,149,546 | |
| ============================== | ========================== | ========================== | ============================== | ============================== | ||
| ------------------------------ | -------------------------- | -------------------------- | ------------------------------ | ------------------------------ | ||
| Net income/(expenditure) | and | |||||
| net movement in funds | (96,438) | (233,743) | (19,250) | (349,431) | 422,761 | |
| ============================== | ========================== | ========================== | ============================== | ============================== | ||
| Reconciliation of funds | ||||||
| Total funds brought forward | 346,114 | 293,091 | 51,333 | 690,538 | 267,777 | |
| ------------------------------ | -------------------------- | -------------------------- | ------------------------------ | ------------------------------ | ||
| Total funds carried forward | 249,676 | 59,348 | 32,083 | 341,107 | 690,538 | |
| ============================== | ========================== | ========================== | ============================== | ============================== |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 12 to 26 form part of these financial statements.
- 9 -
Project Space Leeds
Company Limited by Guarantee
Consolidated and Charity Statement of Financial Position
31st March 2022
| 31st March 2022 | |||||
|---|---|---|---|---|---|
| 2022 | 2021 | ||||
| Note | £ | £ | £ | £ | |
| Group | Charity | Group | Charity | ||
| Fixed assets | |||||
| Intangible assets | 18 | 25,837 | 25,837 | 4,267 | 4,267 |
| Tangible fixed assets | 19 | 139,597 | 110,994 | 185,440 | 140,629 |
| Investments | 20 | - | 1 | - | 1 |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ||
| 165,434 | 136,832 | 189,707 | 144,897 | ||
| Current assets | |||||
| Stock | 21 | 12,844 | - | 8,468 | - |
| Debtors | 22 | 129,771 | 305,531 | 38,123 | 172,933 |
| Cash at bank and in hand | 370,186 | 269,246 | 722,426 | 640,918 | |
| ------------------------------ | ------------------------------ | ----------------------------- | ------------------------------ | ||
| 512,801 | 574,777 | 769,017 | 813,851 | ||
| Creditors:amounts falling due within | |||||
| one year | 23 | (269,618) | (116,074) | (169,641) | (39,315) |
| ------------------------------ | ----------------------------- | ----------------------------- | ------------------------------ | ||
| Net current assets | 243,183 | 458,703 | 599,376 | 774,536 | |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ||
| Total assets less current liabilities | 408,617 | 595,535 | 789,083 | 919,433 | |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ||
| Creditors: amounts falling due after more24 | |||||
| than one year | (67,510) | - | (98,545) | - | |
| -------------------------- | ----------------------------- | ----------------------------- | ------------------------------ | ||
| Net assets | 341,107 | 595,535 | 690,538 | 919,433 | |
| ============================== | ============================== | ============================== | ============================== | ||
| Funds of the charity | |||||
| Endowment funds | 32,083 | 32,083 | 51,333 | 51,333 | |
| Restricted funds | 59,348 | 59,348 | 293,091 | 293,091 | |
| Unrestricted funds | 249,676 | 504,104 | 346,114 | 575,009 | |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ||
| Total charity funds | 25 | 341,107 | 595,535 | 690,538 | 919,433 |
| ============================== | ============================== | ============================== 20-Oct-2022 |
============================== |
These financial statements were approved by the board of Trustees and authorised for issue on ……………, and are signed on behalf of the board by:
Mr F J Finlay Trustee
Registered office: The Tetley Hunslet Road Leeds LS10 1JQ
Company registration number: 07123227 Charity registration number: 1148716
The notes on pages 12 to 26 form part of these financial statements.
- 10 -
Project Space Leeds
Company Limited by Guarantee
Consolidated Statement of Cash Flows
Year ended 31st March 2022
| Year ended 31st March 2022 | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Cash flows from operating activities | ||
| Net (expenditure)/income | (349,431) | 422,761 |
| Adjustments for: | ||
| Depreciation of tangible fixed assets | 72,448 | 81,819 |
| Amortisation of intangible assets | 3,256 | 1,600 |
| Interest paid | 4,811 | 2,863 |
| Changes in: | ||
| Trade and other debtors | (91,648) | (1,865) |
| Trade and other creditors | 96,793 | (5,561) |
| Stocks | (4,376) | 399 |
| Other adjustments | 369 | |
| -------------------------- | -------------------------- | |
| Cash generated from operations | (267,778) | 502,016 |
| ========================== | ========================== | |
| Cash flows from investing activities | ||
| Purchase of tangible and intangible assets | (54,678) | - |
| Proceeds from sale of tangible assets | 3,247 | - |
| -------------------------- | -------------------------- | |
| Net cash used in investing activities | (51,431) | - |
| ========================== | ========================== | |
| Cash flows from financing activities | ||
| Proceeds from borrowings | - | 50,000 |
| Repayment of borrowings | (28,220) | (11,858) |
| Interest paid | (4,811) | (2,863) |
| -------------------------- | -------------------------- | |
| Net cash used in investing activities | (33,031) | 35,279 |
| Net (decrease)/increase in cash and cash equivalents | (352,240) | 537,295 |
| Cash and cash equivalents at beginning of year | 722,426 | 185,131 |
| ------------------------------ | -------------------------- | |
| Cash and cash equivalents at end of year | 370,186 | 722,426 |
| ============================== | ========================== |
The notes on pages 12 to 26 form part of these financial statements. - 11 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 31st March 2022
1. General information
The charity is a public benefit entity as defined by FRS102 and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is The Tetley, Hunslet Road, Leeds, LS10 1JQ.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis.
The financial statements are prepared in sterling, which is the functional currency of the entity. The financial statements are presented in units of £1.
Going concern
The trustees, having made due and careful enquiry, are of the opinion that the charitable company and group has adequate working capital to execute its operations for at least one year from the date of approval of the accounts. Forecasts have been prepared covering the period to October 2023 which show that the group has sufficient funds to meet liabilities as they fall due. In preparing these forecasts, assumptions have been made with regards to quantum and timing of grant funding which is not currently secured; the cash flow forecasts are dependent on this funding for future operations and confirmation of the outcome of the funding application won’t be known until end of October 2022. Whilst the directors are confident the grant funding will be secured this does represent a material uncertainty as to the ability of the group to continue as a going concern. The property lease is due to end in November 2023, but the Trustees are in discussions with the developers who are purchasing The Tetley’s current location and actively considering alternatives as well as liaising closely with key stakeholders, such as Leeds City Council, to ensure the long-term future of Project Space Leeds. The trustees, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and so the accounts have been prepared on a going concern basis.
In arriving at this conclusion, the trustees have given due consideration to the impact of the external environment and the uncertainties around future funding on operations and recognise that the situation remains highly fluid and as a result making accurate forecasts on the likely implications is difficult.
Consolidation
The Consolidated Statement of Financial Activities, Consolidated Cash Flow Statement and Consolidated Balance Sheet include the financial statements of the company and its subsidiary undertaking made up to 31 March 2022. The results of subsidiaries sold or acquired are included in the Statement of Financial Activities up to, or from, the date control passes. Intra-group sales and profits are eliminated fully on consolidation. The entity has taken exemption from presenting its unconsolidated Statement of Financial Activities under section 408 of Companies Act 2006.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Fund accounting
Unrestricted funds are available for use at the discretion of the Trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the Trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
- 12 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
3. Accounting policies (continued)
Incoming resources
All incoming resources are recognised when the group has entitlement to the funds, receipt is probable and the amount can be measured with sufficient reliability. Turnover is derived from the provision of goods and services and is stated after trade discounts, other sales taxes and net of VAT. Further details on specific income streams are provided below.
Grants receivable
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the year is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Capital grants are recognised when receivable and are not deferred over the life of the asset on which they are expended. Unspent amounts of capital grant are reflected in the balance in restricted or endowment funds.
Grants which are given for specific service provision are included within incoming resources from charitable activities.
Grants where there is no specific service provision are included within donations and legacies. Grants receivable which are capital in nature or are of a general nature are included within donations and legacies.
Donations
Donations are recognised on a receivable basis where receipt is probable and the amount can be reliably measured.
Other income
Other income is recognised in the year it is receivable and to the extent the goods have been provided or on completion of the service.
Rental income
Rental income received under operating leases is credited to income on a straight line basis over the lease term.
Donated services and gifts in kind
The value of donated services and gifts in kind provided to the charity are recognised at their open market value in the year in which they are receivable as incoming resources, where the benefit to the charity can be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the Statement of Financial Activities, except where the gift in kind was a fixed asset in which case the amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the charity's policies.
Resources expended
All expenditure is recognised in the period in which there is a legal or constructive obligation to make payment to a third party and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources. Details of the basis of allocation of support costs are given in the notes to the financial statements. All creditors and provisions for liabilities are allocated on the same basis. All resources expended are inclusive of irrecoverable VAT.
Cost of raising funds
Expenditure on raising funds includes all expenditure incurred by a charity to raise funds for its charitable purposes. It includes the costs of all fundraising activities, events and non-charitable trading activities.
Charitable activities
These are costs which directly relate to activities which further the charitable objectives of the charity.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.
- 13 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
3. Accounting policies (continued)
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
- Development costs 5 years
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its residual value, over the useful economic life of that asset as follows:
- Short leasehold property over the period of the lease - Fixtures and fittings 3 to 10 years
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Stock
Stock is valued at the lower of cost or net realisable value. Stocks are valued using the first-in, first-out (FIFO) method.
Taxation
The charity is exempt from tax on its charitable activities. The charity is able to claim Museum and Galleries tax relief, this is accounted for on a receipts basis.
Deferred tax is recognised in the subsidiary company and consolidated accounts in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.
Defined contribution plans
The group operates a defined contribution pension scheme. Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
4. Limited by guarantee
The charity is a company limited by guarantee.
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he/she ceases to be a member.
- 14 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
5. Donations and legacies
| Donations and legacies | |||
|---|---|---|---|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Donations | |||
| Grants receivable | 335,195 | 29,917 | 365,112 |
| Donated goods and services | 248,012 | - | 248,012 |
| Other donations | 15,993 | - | 15,993 |
| ------------------------------ | -------------------------- | ------------------------------ | |
| 599,200 | 29,917 | 629,117 | |
| ============================== | ========================== | ============================== | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Donations | |||
| Grants receivable | 852,585 | 252,480 | 1,105,065 |
| Donated goods and services | 218,012 | – | 218,012 |
| Other donations | 1,343 | 125,000 | 126,343 |
| ------------------------------ | ------------------------------ | ------------------------------ | |
| 1,071,940 ============================== |
377,480 ============================== |
1,449,420 ============================== |
Donated goods and services above includes the following items which have been included at the Trustees best estimates of the amounts they would have to pay to obtain similar goods and services on the open market.
| 2022 | 2021 | |||
|---|---|---|---|---|
| Rent and rates | 248,012 | 218,012 | ||
| ------------------------------ | ------------------------------ | |||
| 248,012 | 218,012 | |||
| ============================== | ============================== | |||
| 6. | Charitable activities | |||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2022 | ||
| £ | £ | £ | ||
| Rental income | 39,370 | – | 39,370 | |
| Grants received | - | 31,000 | 31,000 | |
| Other charitable income | 2,005 | 10,000 | 12,005 | |
| -------------------------- | ------------- | -------------------------- | ||
| 41,375 | 41,000 | 82,375 | ||
| ========================== | ============= | ========================== | ||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2021 | ||
| £ | £ | £ | ||
| Rental income | 25,092 | – | 25,092 | |
| Grants received | - | 11,779 | 11,779 | |
| Other charitable income | 198 | – | 198 | |
| -------------------------- | -------------------------- | -------------------------- | ||
| 25,290 | 11,779 | 37,069 | ||
| ========================== | ========================== | ========================== |
- 15 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
7. Other trading activities
| 7. | Other trading activities | ||||
|---|---|---|---|---|---|
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2022 | Funds | 2021 | ||
| £ | £ | £ | £ | ||
| Sponsorships | 10,000 | 10,000 | - | - | |
| Bar and restaurant sales | 534,354 | 534,354 | 69,009 | 69,009 | |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ||
| 544,354 | 544,354 | 69,009 | 69,009 | ||
| ============================== | ============================== | ============================== | ============================== | ||
| 8. | Investment income | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2022 | Funds | 2021 | ||
| £ | £ | £ | £ | ||
| Other interest receivable | 8 | 8 | 15 | 15 | |
| ============= | ============= | ============= | ============= | ||
| 9. | Other income | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2022 | Funds | 2021 | ||
| £ | £ | £ | £ | ||
| Museum and galleries tax relief | 15,127 | 15,127 | 16,794 | 16,794 | |
| Other income | 205 | 205 | - | - | |
| -------------------------- | -------------------------- | -------------------------- | -------------------------- | ||
| 15,332 | 15,332 | 16,794 | 16,794 | ||
| ========================== | ========================== | ========================== | ========================== | ||
| 10. | Resources expended | ||||
| Costs of charitable activities | |||||
| Other direct | Total Funds | ||||
| Staff costs | costs | Support costs | 2022 | ||
| £ | £ | £ | £ | ||
| Costs of charitable activities | 173,588 | 216,870 | 400,621 | 791,079 | |
| ============================== | ========================== | ========================== | ============================== | ||
| Other direct | Total Funds | ||||
| Staff costs | costs | Support costs | 2021 | ||
| £ | £ | £ | £ | ||
| Costs of charitable activities | 158,125 | 39,568 | 346,717 | 544,410 | |
| ============================== | ============================== | ========================== | ============================== | ||
| Costs of raising funds | |||||
| Other direct | Total Funds | ||||
| Staff costs | costs | Support costs | 2022 | ||
| £ | £ | £ | £ | ||
| Costs of raising funds | 403,306 | 255,987 | 170,245 | 829,538 | |
| ============================== | ============================== | ============================== | ============================== | ||
| Other direct | Total Funds | ||||
| Staff costs | costs | Support costs | 2021 | ||
| £ | £ | £ | £ | ||
| Costs of raising funds | 341,990 | 110,290 | 152,856 | 605,136 | |
| ============================== | ============================== | ========================== | ============================== |
- 16 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
11. Expenditure by fund type
| xpenditure by fund type | ||||
|---|---|---|---|---|
| Cost of charitable activities- 2022 | Unrestricted | Endowment | Total Funds | |
| funds | Restricted funds | fund | 2022 | |
| £ | £ | £ | £ | |
| Staff costs | 138,948 | 34,640 | - | 173,588 |
| Curatorial costs | 42,402 | 28,802 | - | 71,204 |
| Participation costs | (19,154) | 141,823 | - | 122,669 |
| Advertising and promotion | 15,567 | 2,593 | - | 18,160 |
| Other direct costs | 4,837 | - | - | 4,837 |
| Support costs (see note 12) | 310,569 | 70,802 | 19,250 | 400,621 |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | |
| 493,169 | 278,660 | 19,250 | 791,079 | |
| ============================== | ========================== | ========================== | ============================== | |
| Cost of charitable activities- 2021 | Unrestricted | Endowment | Total Funds | |
| funds | Restricted funds | fund | 2021 | |
| £ | £ | £ | £ | |
| Staff costs | 138,125 | 20,000 | - | 158,125 |
| Curatorial costs | 18,564 | - | - | 18,564 |
| Participation costs | 2,817 | 8,285 | - | 11,102 |
| Advertising and promotion | 9,522 | - | - | 9,522 |
| Other direct costs | 380 | - | - | 380 |
| Support costs (see note 12) | 319,780 | 7,687 | 19,250 | 346,717 |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | |
| 489,188 | 35,972 | 19,250 | 544,410 | |
| ============================== | ========================== | ========================== | ============================== | |
| Cost of raising funds- 2022 | Unrestricted | Restricted | Endowment | Total Funds |
| funds | funds | fund | 2022 | |
| £ | £ | £ | £ | |
| Staff costs | 377,306 | 26,000 | - | 403,306 |
| Other direct costs | 255,987 | - | - | 255,987 |
| Support costs (see note 12) | 170,245 | - | - | 170,245 |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | |
| 803,538 | 26,000 | - | 829,538 | |
| ============================== | ========================== | ========================== | ============================== | |
| Cost of raising funds- 2021 | Unrestricted | Restricted | Endowment | Total Funds |
| funds | funds | fund | 2021 | |
| £ | £ | £ | £ | |
| Staff costs | 278,510 | 63,480 | - | 341,990 |
| Other direct costs | 110,290 | - | - | 110,290 |
| Support costs (see note 12) | 152,856 | - | - | 152,856 |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | |
| 541,656 | 63,480 | - | 605,136 | |
| ============================== | ========================== | ========================== | ============================== |
- 17 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
12. Support costs
| Support costs | ||||
|---|---|---|---|---|
| Cost of | Cost of | |||
| raising | charitable | |||
| funds | activities | Total 2022 | Total 2021 | |
| Administrative expenditure | ||||
| Staff costs | 9,533 | 69,906 | 79,439 | 57,310 |
| Staff training & expenses | 797 | 5,847 | 6,644 | 1,668 |
| Print, postage and stationery | 235 | 1,725 | 1,960 | 1,772 |
| IT expenses | 1,241 | 9,101 | 10,342 | 10,050 |
| Bank charges | 44 | 323 | 367 | 189 |
| Legal & Professional | 2,249 | 16,492 | 18,741 | 6,190 |
| Telephone | 57 | 421 | 478 | 256 |
| Amortisation | 192 | 1,408 | 1,600 | 1,600 |
| Other administrative expenditure | 832 | 6,094 | 6,926 | 10,275 |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | |
| Total administrative expenditure | 15,180 | 111,317 | 126,497 | 89,310 |
| Premises costs | ||||
| Staff costs | 12,770 | 22,702 | 35,472 | 34,100 |
| Rent & Rates | 78,484 | 139,528 | 218,012 | 218,012 |
| Heat, light & water | 10,503 | 18,673 | 29,176 | 29,121 |
| Insurance | 6,555 | 11,653 | 18,208 | 16,435 |
| Cleaning | 15,934 | 28,327 | 44,261 | 12,941 |
| Health & Safety | 1,132 | 2,013 | 3,145 | 13,433 |
| Maintenance & Repairs | 5,968 | 10,610 | 16,578 | 6,111 |
| Security | 477 | 847 | 1,324 | 673 |
| Depreciation | 20,788 | 36,956 | 57,744 | 56,288 |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | |
| Total premises costs | 152,611 | 271,309 | 423,920 | 387,114 |
| Governance costs | ||||
| Staff costs | 934 | 6,846 | 7,780 | 10,879 |
| Legal and professional | 176 | 1,293 | 1,469 | - |
| Audit fees | 1,344 | 9,856 | 11,200 | 11,650 |
| Meeting costs | - | - | - | 620 |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | |
| Total governance costs | 2,454 | 17,995 | 20,449 | 23,149 |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | |
| Total support costs | 170,245 | 400,621 | 570,866 | 499,573 |
| ============================== | ============================== | ============================== | ============================== |
Support costs are allocated on a basis consistent with the use of resources. The Trustees have determined that the most consistent and reliable basis for the allocation is the use of full-time equivalent staff for administrative expenses and governance and floor area for premises costs. Costs allocated to the charitable company’s subsidiary are in line with the agreed recharge basis between the two companies.
13. Taxation
PSL Enterprises Limited has tax losses of £266,075 (2021: £254,866) available to carry forward against future trading profits. A deferred tax asset of £nil (2021: £nil) has been recognised in relation to these amounts and fixed asset timing differences.
- 18 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
14. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 629,468 | 557,048 |
| Social security costs | 49,826 | 37,438 |
| Pensions | 12,150 | 7,920 |
| Consultants and freelancers | 4,070 | 27,442 |
| ------------------------------ | ------------------------------ | |
| 695,514 ============================== |
629,848 ============================== |
Where appropriate the charity enters into contracts with self-employed freelance staff for the provision of the charity’s services. This provides flexibility for the charity in planning its operations for the year.
The average head count of employees during the year was 35 (2021: 37).
No employee received employee benefits of more than £60,000 during the year (2021: £60,000).
The group operates a defined contributions pension scheme. The assets of the scheme were held separately from those of the company. At the year end pension contributions of £5,991 (2021: £3,128) were outstanding. Included within this is £3,376 (2021: £2,302) relating to the subsidiary company.
Key Management Personnel
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £129,787 (2021: £133,242).
15. Trustee remuneration and expenses
The board of Trustees during the year served on a voluntary basis and received no remuneration for their services to the company (2021: £nil). The charity reimbursed or incurred expenses directly on behalf of 1 (2021: 1) Trustee for expenditure totalling £1,100 (2021: £620). Other related party transactions involving the Trustees are set out in note 27.
16. Net movement in funds
Net movement in funds is stated after charging:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Auditors remuneration- audit services | 8,750 | 7,700 |
| Auditors remuneration- other services | 3,150 | 2,280 |
| Amortisation | 3,256 | 1,600 |
| Depreciation | 72,448 | 81,819 |
17. Surplus/(deficit) of parent charity
As permitted by Section 408 of the Companies Act 2006 and the concession in paragraph 397 of the Charities SORP, a Statement of Financial Activities and the Income and Expenditure account of the parent charity is not presented as part of these financial statements. The parent charity’s gross income for the financial year was £707,670 (2021: £1,333,070) and deficit for the financial year was £323,897 (2021: surplus £572,408).
- 19 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
18. Intangible assets
| Charity and Group | Development | ||
|---|---|---|---|
| costs | |||
| Cost | £ | ||
| At 1st April 2021 | 8,000 | ||
| Additions | 24,826 | ||
| ------------------------------ | |||
| At 31st March 2022 | 32,826 | ||
| ===================== | |||
| Amortisation | |||
| At 1st April 2021 | 3,733 | ||
| Charge for the year | 3,256 | ||
| --------------------- | |||
| At 31st March 2022 | 6,989 | ||
| ===================== | |||
| Carrying amount | |||
| At 31st March 2022 | 25,837 | ||
| ===================== | |||
| At 31st March 2021 | 4,267 | ||
| ===================== | |||
| Tangible fixed assets | |||
| Charity | Short leasehold | Fixtures and | |
| property | fittings | Total | |
| Cost | £ | £ | £ |
| At 1st April 2021 | 434,732 | 106,415 | 541,147 |
| Additions | 16,059 | 10,395 | 26,454 |
| Disposals | (3,217) | (50,792) | (54,009) |
| ------------------------------ | ------------------------------ | ------------------------------ | |
| At 31st March 2022 | 447,574 | 66,018 | 513,592 |
| ============================== | ============================== | ============================== | |
| Depreciation | |||
| At 1st April 2021 | 316,526 | 83,992 | 400,518 |
| Charge for the year | 44,626 | 9,300 | 53,926 |
| Disposals | (2,393) | (49,453) | (51,846) |
| ------------------------------ | ------------------------------ | ------------------------------ | |
| At 31st March 2022 | 358,759 | 43,839 | 402,598 |
| ============================== | ============================== | ============================== | |
| Carrying amount | |||
| At 31st March 2022 | 88,815 | 22,179 | 110,994 |
| ============================== | ============================== | ============================== | |
| At 31st March 2021 | 118,206 | 22,423 | 140,629 |
| ============================== | ============================== | ============================== | |
| Group | Short leasehold | Fixtures and | |
| property | fittings | Total | |
| Cost | £ | £ | £ |
| At 1st April 2021 | 434,732 | 307,471 | 742,203 |
| Additions | 16,059 | 13,793 | 29,852 |
| Disposals | (3,217) | (103,685) | (106,902) |
| ------------------------------ | ------------------------------ | ------------------------------ | |
| At 31st March 2022 | 447,574 | 217,579 | 665,153 |
| ============================== | ============================== | ============================== | |
| Depreciation | |||
| At 1st April 2021 | 316,526 | 240,237 | 556,763 |
| Charge for the year | 44,626 | 27,822 | 72,448 |
| Disposals | (2,393) | (101,262) | (103,655) |
| ------------------------------ | ------------------------------ | ------------------------------ | |
| At 31st March 2022 | 358,759 | 166,797 | 525,556 |
| ============================== | ============================== | ============================== | |
| Carrying amount | |||
| At 31st March 2022 | 88,815 | 50,782 | 139,597 |
| ============================== | ============================== | ============================== | |
| At 31st March 2021 | 118,206 | 67,234 | 185,440 |
| ============================== | ============================== | ============================== |
19. Tangible fixed assets
- 20 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
| 20. | Investments | |
|---|---|---|
| Charity | Shares in group | |
| undertakings | ||
| £ | ||
| Cost | ||
| At 1st April 2021 and 31st March 2022 | 1 | |
| ============= | ||
| Impairment | ||
| At 1st April 2021 and 31st March 2022 | – | |
| ============= | ||
| Carrying amount | ||
| At 31st March 2022 | 1 | |
| ============= | ||
| At 31st March 2021 | 1 | |
| ============= |
The charity owns 100% of the issued share capital in PSL Enterprises Ltd, company number 08246664. The address of its registered office is The Tetley, Hunslet Road, Leeds, LS10 1JQ. During the year the company was used for nonprimary purpose trading activities, namely the operation of the bar and kitchen and the organisation of commercial events at The Tetley.
The investment in subsidiary is shown at cost, being issued share capital.
All activities of the subsidiary company have been consolidated on a line by line basis in the consolidated Statement of Financial Activities. Income for the year ended 31 March 2022 amounted to £563,515 (2021: £239,236) with associated expenditure of £584,238 (2021: £386,020), interest payable of £4,811 (2021: £2.863) and a tax charge of £Nil (2021: £Nil). Net liabilities of the company at 31 March 2022 are £254,429 (2021: £228,895).
21. Stock
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| Group | Charity | Group | Charity | ||
| Bar and kitchen stocks | 12,844 | - | 8,468 | - | |
| ========================== | ========================== | ========================== | ========================== | ||
| 22. | Debtors | ||||
| 2022 | 2021 | ||||
| £ | £ | £ | £ | ||
| Group | Charity | Group | Charity | ||
| Trade debtors | 37,550 | 16,926 | 7,693 | 5,829 | |
| Amounts owed by group undertakings | - | 206,968 | - | 149,566 | |
| Prepayments and accrued income | 90,335 | 81,637 | 7,973 | 7,973 | |
| Other debtors | 1,886 | - | 22,457 | 9,565 | |
| -------------------------- | -------------------------- | -------------------------- | -------------------------- | ||
| 129,771 | 305,531 | 38,123 | 172,933 | ||
| ========================== | ========================== | ========================== | ========================== |
A loan of £100,000 was issued from the charity to PSL Enterprises Ltd in the prior year. The loan is repayable on demand, there is no interest being charged for the year to 31 March 2022.
The remainder of the loan from the charity to PSL Enterprises Ltd is unsecured, interest free and repayable on demand.
- 21 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
23. Creditors: amounts falling due within one year
| 2022 | 2021 | |||
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Group | Charity | Group | Charity | |
| Loan | 36,400 | - | 33,216 | - |
| Trade creditors | 51,383 | 32,282 | 20,120 | 13,695 |
| Accruals and deferred income | 150,317 | 72,312 | 71,317 | 19,457 |
| Social security and other taxes | 21,352 | 6,611 | 41,648 | 5,091 |
| Other creditors | 10,166 | 4,869 | 3,340 | 1,072 |
| -------------------------- | -------------------------- | -------------------------- | -------------------------- | |
| 269,618 | 116,074 | 169,641 | 39,315 | |
| ========================== | ========================== | ========================== | ========================== |
Included in the other creditors is deferred income of £108,180 (2021: £39,848). Income is deferred when the criteria to recognise it as income has not been met.
24. Creditors: amounts falling due after more than one year
| 2022 | 2021 | |||
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Group | Charity | Group | Charity | |
| Loans | 67,510 | - | 98,545 | - |
| ========================== | ========================== | ========================== | ========================== |
£61,411 of the loan is unsecured, under the agreement in place the loan is due for repayment by August 2023. The interest rate applicable is 4% over the bank’s base rate.
An additional loan of £42,500 is unsecured, under the agreement in place the loan is due for repayment by July 2026 including a 12 month capital repayment holiday. The interest rate applicable is 2.5% over the bank’s base rate.
25. Analysis of charitable funds
| At 1st April | Incoming | Resources | At 31st March | |
|---|---|---|---|---|
| Group | 2021 | Resources | Expended | 2022 |
| £ | £ | £ | £ | |
| Restricted funds | 293,091 | 70,917 | (304,660) | 59,348 |
| Endowment funds | 51,333 | - | (19,250) | 32,083 |
| Unrestricted funds | 346,114 | 1,200,269 | (1,296,707) | 249,676 |
| -------------------------- | -------------------------- | -------------------------- | -------------------------- | |
| Total funds | 690,538 | 1,271,186 | (1,620,617) | 341,107 |
| ========================== | ========================== | ========================== | ========================== |
- 22 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
25. Analysis of charitable funds (continued)
Restricted funds- Group and Charity
| At 1st April | Incoming | Resources | At 31st March | |
|---|---|---|---|---|
| 2021 | Resources | Expended | 2022 | |
| £ | £ | £ | £ | |
| LCC Arts Funding | - | 26,000 | (26,000) | - |
| Garfield Weston | 161,650 | - | (140,195) | 21,455 |
| PANIC! | 119,662 | 10,000 | (109,663) | 19,999 |
| Jerwood | 11,779 | 31,000 | (24,885) | 17,894 |
| Other restricted funds | - | 3,917 | (3,917) | |
| --------------------- | -------------------------- | -------------------------- | --------------------- | |
| 293,091 | 70,917 | (304,660) | 59,348 | |
| ===================== | ========================== | ========================== | ===================== | |
| At 1st April | Incoming | Resources | At 31st March | |
| 2020 | Resources | Expended | 2021 | |
| £ | £ | £ | £ | |
| Esmee Fairbairn | - | 20,000 | (20,000) | - |
| LCC Arts Funding | - | 43,480 | (43,480) | - |
| Garfield Weston | - | 184,000 | (22,350) | 161,650 |
| Catalyst | - | 5,000 | (5,000) | - |
| PANIC! | - | 125,000 | (5,338) | 119,662 |
| Jerwood | - | 11,779 | - | 11,779 |
| Women's Health Matters | 858 | - | (858) | - |
| Other restricted funds | 2,426 | - | (2,426) | - |
| --------------------- | -------------------------- | -------------------------- | --------------------- | |
| 3,284 | 389,259 | (99,452) | 293,091 | |
| ===================== | ========================== | ========================== | ===================== | |
| Endowment funds- Group | and Charity | |||
| At 1stApril | Incoming | Resources | At 31st March | |
| 2021 | Resources | Expended | 2022 | |
| £ | £ | £ | £ | |
| The Tetley capital funding | 51,333 | (19,250) | 32,083 | |
| ========================== | ============= | ========================== | ========================== | |
| At 1stApril | Incoming | Resources | At 31stMarch | |
| 2020 | Resources | Expended | 2021 | |
| £ | £ | £ | £ | |
| The Tetley capital funding | 70,583 | - | (19,250) | 51,333 |
| ============================== | ============= | ========================== | ========================== |
- 23 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
25. Analysis of charitable funds (continued)
Unrestricted funds- Charity
| Unrestricted funds- Charity | |||||
|---|---|---|---|---|---|
| At 1stApril | Incoming | Resources | Transfers | At 31st March | |
| 2021 | Resources | Expended | between funds | 2022 | |
| £ | £ | £ | £ | £ | |
| Project Space Leeds | 519,009 | 636,753 | (658,728) | - | 497,034 |
| Assets purchased with capital | |||||
| grants | 56,000 | - | (48,929) | - | 7,071 |
| Designated fund | - | - | - | - | - |
| ------------------------------ | ------------------------------ | ------------------------------ | -------------------------- | ------------------------------ | |
| 575,009 | 636,753 | (707,657) | 504,104 | ||
| ============================== | ============================== | ============================== | ========================== | ============================== | |
| At 1stApril | Incoming | Resources | Transfers | At 31stMarch | |
| 2020 | Resources | Expended | between funds | 2021 | |
| £ | £ | £ | £ | £ | |
| Project Space Leeds | 181,158 | 943,811 | (620,960) | 15,000 | 519,009 |
| Assets purchased with capital | |||||
| grants | 77,000 | - | (21,000) | - | 56,000 |
| Designated fund | 15,000 | - | - | (15,000) | - |
| ------------------------------ | ------------------------------ | ------------------------------ | -------------------------- | ------------------------------ | |
| 273,158 | 943,811 | (641,960) | - | 575,009 | |
| ============================== | ============================== | ============================== | ========================== | ============================== | |
| Unrestricted funds - Group | |||||
| At 1stApril | Incoming | Resources | Transfers | At 31st March | |
| 2021 | Resources | Expended | between funds | 2022 | |
| £ | £ | £ | £ | £ | |
| Unrestricted reserves | 290,114 | 1,200,269 | (1,247,778) | - | 242,605 |
| Assets purchased with capital | |||||
| grants | 56,000 | - | (48,929) | - | 7,071 |
| Designated fund | - | - | - | - | - |
| ------------------------------ | ------------------------------ | ------------------------------ | -------------------------- | ------------------------------ | |
| 346,114 | 1,200,269 | (1,296,707) | - | 249,676 | |
| ============================== | ============================== | ============================== | ========================== | ============================== | |
| At 1stApril | Incoming | Resources | Transfers | At 31stMarch | |
| 2020 | Resources | Expended | between funds | 2021 | |
| £ | £ | £ | £ | £ | |
| Unrestricted reserves | 101,910 | 1,183,048 | (1,030,844) | 15,000 | 269,114 |
| Assets purchased with capital | |||||
| grants (restated) | 77,000 | - | (21,000) | - | 56,000 |
| Designated fund | 15,000 | - | - | (15,000) | - |
| ------------------------------ | ------------------------------ | ------------------------------ | -------------------------- | ------------------------------ | |
| 193,910 ============================== |
1,183,048 ============================== |
(1,030,844) ============================== |
- ========================== |
346,114 ============================== |
Unrestricted funds - Group
Unrestricted fund – represents resources available at the Trustees discretion in meeting the charitable objects of the charity. At the year-end PSL Enterprises Ltd had a deficit on its profit and loss reserves of £254,430 (2021: £228,896) this is due to a combination of start-up costs and losses incurred in initial and 2020/21 trading.
Assets purchased with capital grants – this designated fund represents the Net Book Value of assets purchased with grants received for capital funding.
The designated fund represents funding received in advance from Garfield Weston in 2019 to be used against core costs over the subsequent two years.
Restricted funds - PANIC! (Promoting an Artists' Network in the Crisis) funding has been received to create an artists' network in Leeds through mentoring, support and bursaries for practising artists. The remaining funds will continue to support Artist Development work in 2022/23.
- 24 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
25. Analysis of charitable funds (continued)
Garfield Weston funding was received to improve IT infrastructure, commission artwork, develop the external space around The Tetley and a contribution to overheads. The remaining funds are for a commission that has taken longer than expected and the contribution to overheads.
The Tetley Jerwood Commissions, supported by the Jerwood Arts’ Development Programme Fund continue into 2022/23 with all exhibitions completing in this year.
26. Analysis of net assets between funds (Group)
| Unrestricted | Restricted | Endowment | Total Funds | |
|---|---|---|---|---|
| Funds | Funds | Funds | 2022 | |
| £ | £ | £ | £ | |
| Fixed assets | 133,351 | - | 32,083 | 165,434 |
| Current assets | 453,453 | 59,348 | - | 512,801 |
| Creditors less than 1 year | (269,618) | - | - | (269,618) |
| Long term liabilities | (67,510) | - | - | (67,510) |
| -------------------------- | --------------------- | -------------------------- | -------------------------- | |
| Net assets | 249,676 | 59,348 | 32,083 | 341,107 |
| ========================== | ===================== | ========================== | ========================== | |
| Unrestricted | Restricted | Endowment | Total Funds | |
| Funds | Funds | Funds | 2021 | |
| £ | £ | £ | £ | |
| Fixed assets | 138,374 | - | 51,333 | 189,707 |
| Current assets | 475,926 | 293,091 | - | 769,017 |
| Creditors less than 1 year | (169,641) | - | - | (169,641) |
| Long term liabilities | (98,545) | - | - | (98,545) |
| ------------- | --------------------- | -------------------------- | -------------------------- | |
| Net assets | 346,114 | 293,091 | 51,333 | 690,538 |
| ============= | ===================== | ========================== | ========================== |
Analysis of net assets between funds (Charity)
| Unrestricted | Restricted | Endowment | Total Funds | |
|---|---|---|---|---|
| Funds | Funds | Funds | 2022 | |
| £ | £ | £ | £ | |
| Fixed assets | 104,749 | - | 32,083 | 136,832 |
| Current assets | 515,429 | 59,348 | - | 574,777 |
| Creditors less than 1 year | (116,074) | - | - | (116,074) |
| -------------------------- | --------------------- | -------------------------- | -------------------------- | |
| Net assets | 504,104 | 59,348 | 32,083 | 595,535 |
| ========================== | ===================== | ========================== | ========================== | |
| Unrestricted | Restricted | Endowment | Total Funds | |
| Funds | Funds | Funds | 2021 | |
| £ | £ | £ | £ | |
| Fixed assets | 93,564 | - | 51,333 | 144,897 |
| Current assets | 520,760 | 293,091 | - | 813,851 |
| Creditors less than 1 year | (39,315) | - | - | (39,315) |
| ------------- | --------------------- | -------------------------- | -------------------------- | |
| Net assets | 575,009 | 293,091 | 51,333 | 919,433 |
| ============= | ===================== | ========================== | ========================== |
- 25 -
Project Space Leeds
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31st March 2022
27. Related parties
The company has taken advantage of the exemption in Financial Reporting Standard number 102 from the requirement to disclose the transactions with group companies on the grounds that they are wholly owned.
Engage (a company in which Dawn Cameron, a trustee, is the extend programme co-ordinator) made purchases from the group totalling £1,100 (2021: £2,743), purchases were also made from Engage totalling £nil (2021: £1,452). At the year end there was £600 outstanding from Engage (2021: £nil).
Chapter 81 (a company in which Simon Fogal, a trustee, is a director) made sales to the group for £11,760 (2021: £16,829). At the yearend there was £900 due to Chapter81 (2021: £nil).
The group made purchases from The University of Leeds (of which Frank Finlay and Griselda Pollock, Trustees, are both employed) totalling £240 (2021: £nil). At the year end the outstanding balance was £240 (2021: £nil).
The charity received donations from 1 (2021: 1) related party totalling £10,000 (2021 - £125,000).
Leeds Culture Trust, where both Fank Finlay (trustee) and Taneesha Ahmed (trustee) are trustees, made purchases from the group totalling £2,290 (2021: £nil). At the year end there was no outstanding balance.
The group made purchases from Carlsberg, where Mark Pattinson (trustee) is a director, totalling £86,807 (2021: £6,727) and paid £22,841 in loan repayments (2021: £14,575). Carlsberg made purchases from the group totalling £188.80.
The group paid artist Simon Barclay, who is also a trustee, £1,100 as part of the PANIC! sessions (2021: £400).
The group paid Owen Neary (partner of Samantha Fish) £500 (2021: £180) in exchange for his DJ services.
- 26 -