Charity Registration No. 1149607
Company Registration No. 07842254 (England and Wales)
HVH ARTS LTD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
HVH ARTS LTD
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mr T Lomnitzer | |
|---|---|---|
| N Webb | (Appointed 2 November | |
| 2020) | ||
| Mr M Von Herkomer | ||
| Charity number | 1149607 | |
| Company number | 07842254 | |
| Registered office | 4 | |
| Hunter Street | ||
| London | ||
| United Kingdom | ||
| WC1N 1BD | ||
| Independent examiner | Francis James & Partners LLP | |
| 1386 London Road | ||
| Leigh on Sea | ||
| Essex | ||
| England | ||
| SS9 2UJ |
HVH ARTS LTD
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 12 |
HVH ARTS LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 APRIL 2021
The Trustees present their annual report and financial statements for the year ended 30 April 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 Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) " (effective 1 January 2019 ).
Objectives and activities
Objectives and aims
The charity aims to inspire a generation of young people by offering them a gateway to the arts by funding after and out of school classes in primary and secondary state schools in England. The foundation provides children with the inspiration and tools to develop lifelong artistic passions.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Public benefit
The policies adopted to further the object ives of the Charity for public benefit in accordance with section 4 of the 2006 to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties are disclosed in section headed objectives and aims in this report.
Achievements and performance
Financial review
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity ’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Structure, governance and management
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr T Lomnitzer N Webb (Appointed 2 November 2020) Mr M Von Herkomer
Risk management
The trustees have a 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.
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HVH ARTS LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
The Trustees' r eport was approved by the Board of Trustees.
.............................. Mr M Von Herkomer Trustee 30/11/2021 Date: .............................................
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HVH ARTS LTD
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HVH ARTS LTD
I report to the Trustees on my examination of the financial statements of Hvh Arts Ltd (the charity) for the year ended 30 April 2021.
Responsibilities and basis of report
As the Trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Francis James & Partners LLP
1386 London Road Leigh on Sea Essex SS9 2UJ England
3 December 2021 Dated: .........................
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HVH ARTS LTD
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2021
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2021 | 2020 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 2 | 77,088 | 203,226 |
| Charitable activities | 39,238 | - | |
| Investments | 3 | 11 | - |
| Total income | 116,337 | 203,226 | |
| Expenditure on: | |||
| Raising funds | 4 | 2,805 | 3,324 |
| Charitable activities | 5 | 118,169 | 137,231 |
| Other | 8 | 89 | 240 |
| Total resources expended | 121,063 | 140,795 | |
| Net (expenditure)/income for the year/ | |||
| Net movement in funds | (4,726) | 62,431 |
|
| Fund balances at 1 May 2020 | 76,808 | 14,377 | |
| Fund balances at 30 April 2021 | 72,082 | 76,808 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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HVH ARTS LTD
BALANCE SHEET
AS AT 30 APRIL 2021
| Notes Fixed assets Intangible assets 9 Tangible assets 10 Current assets Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2021 £ 65,000 (3,593) |
£ 3,547 7,128 10,675 61,407 72,082 72,082 72,082 |
2020 £ 70,077 (4,016) |
£ 1,243 9,504 |
|---|---|---|---|---|
| 10,747 66,061 |
||||
| 76,808 | ||||
| 76,808 | ||||
| 76,808 |
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 April 2021.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
30/11/2021
The financial statements were approved by the Trustees on .........................
.............................. Mr M Von Herkomer Trustee
Company Registration No. 07842254
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HVH ARTS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
1 Accounting policies
Charity information
Hvh Arts Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is 4, Hunter Street, London, WC1N 1BD, United Kingdom.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
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.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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HVH ARTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.6 Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
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 straight line
1.7 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment 25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
1.8 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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HVH ARTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
1 Accounting policies
(Continued)
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2 Donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Donations and gifts | 61,627 | 62,789 |
| Just giving | 5,634 | 17,575 |
| HMRC and towerbridge | 9,827 | 122,862 |
| 77,088 | 203,226 |
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HVH ARTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
3 Investments
| 4 | Unrestricted Total funds 2021 2020 £ £ Interest receivable 11 - Raising funds Unrestricted Unrestricted funds funds 2021 2020 £ £ Trading costs Depreciation and impairment 2,805 3,324 2,805 3,324 |
Total 2020 £ - |
|---|---|---|
| 3,324 |
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HVH ARTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
5 Charitable activities
| Charitable | Charitable | |
|---|---|---|
| Expenditure | Expenditure | |
| Heading 1 | Heading 1 | |
| 2021 | 2020 | |
| £ | £ | |
| Staff costs | 40,676 | 24,169 |
| Accountancy | 1,034 | 961 |
| Projects | 13,787 | 8,815 |
| Insurance | 681 | 641 |
| Equipment maintenance | 3,033 | 16,319 |
| Telephone | 1,904 | 125 |
| Printing, postage and stationary | 4,554 | 4,131 |
| Photography | 6,396 | 16,682 |
| Exhibition | 1,922 | 10,741 |
| Tutors | 30,917 | 50,355 |
| Travel | 6,193 | 2,622 |
| Marketing | 2,170 | 160 |
| Rent and rates | 2,490 | - |
| Sundry | 2,412 | 1,510 |
| 118,169 | 137,231 | |
| 118,169 | 137,231 |
6 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
7 Employees
The average monthly number of employees during the year was:
| 2021 | 2020 |
|---|---|
| Number | Number |
| 1 | 1 |
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HVH ARTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
| 7 Employees Employment costs Wages and salaries Social security costs Other pension costs There were no employees whose annual remuneration was more than £60,000. |
(Continued) 2021 2020 £ £ 39,477 23,891 1,199 - - 278 40,676 24,169 |
(Continued) 2021 2020 £ £ 39,477 23,891 1,199 - - 278 40,676 24,169 |
|---|---|---|
| 24,169 | ||
| 8 | Other | ||
|---|---|---|---|
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2021 | 2020 | ||
| Bank charges | 89 | 240 | |
| 89 | 240 | ||
| 9 | Intangible fixed assets | ||
| Software | |||
| £ | |||
| Cost | |||
| At 1 May 2020 | 1,561 | ||
| Additions - separately acquired | 2,733 | ||
| At 30 April 2021 | 4,294 | ||
| Amortisation and impairment | |||
| At 1 May 2020 | 318 | ||
| Amortisation charged for the year | 429 | ||
| At 30 April 2021 | 747 | ||
| Carrying amount | |||
| At 30 April 2021 | 3,547 | ||
| At 30 April 2020 | 1,243 |
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HVH ARTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2021
10 Tangible fixed assets
| Cost At 1 May 2020 At 30 April 2021 Depreciation and impairment At 1 May 2020 Depreciation charged in the year At 30 April 2021 Carrying amount At 30 April 2021 At 30 April 2020 Creditors: amounts falling due within one year Other taxation and social security Accruals and deferred income |
Plant and equipment £ 22,528 22,528 13,024 2,376 15,400 7,128 9,504 2021 2020 £ £ 2,632 3,055 961 961 3,593 4,016 |
Plant and equipment £ 22,528 22,528 13,024 2,376 15,400 7,128 9,504 2021 2020 £ £ 2,632 3,055 961 961 3,593 4,016 |
|---|---|---|
| 22,528 | ||
| 13,024 2,376 |
||
| 15,400 | ||
| 7,128 | ||
| 9,504 | ||
| 2020 £ 3,055 961 |
||
| 4,016 |
11 Creditors: amounts falling due within one year
12 Related party transactions
There were no disclosable related party transactions during the year (2020 - none) .
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