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2024-03-31-accounts

Charity Registration No. 1152149

ARTIFICATION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 March 2024

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Sulaiman Othman Dr Susan Edwards Trustees Mary Collier Barry Khwatenge Sarah Constable Rachael Owhin Timothy Owen William Bruce Harron HSBC 8 Canada Square London, England Bankers UK Charity number 1152149 Principal Address W3 Gallery 185 High Street Acton London W3 9DJ Independent Examiner Syon Associates 6 Portland Business Centre Manor House Lane Datchet SL3 9EG

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CONTENTS

Trustees' report 4 Independent examiner's report 5 Statement of financial activities 6 Balance sheet 7 Notes to the financial statements 8 - 11

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TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2024

The trustees present their report and financial statements for the year ended 31 March 2024. The charity’s trustees are responsible for the preparation of the accounts and under the Charities Act 2011 Section 144(2) an independent examination is required. Though an audit is not required for these charity accounts.

Objectives and activities

The trust's objects are to promote the transformation of communities through Arts with the aim to strengthen diversity and health of the widespread community. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.

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 trust’s current activities while consideration is given to ways in which additional funds may be raised.

Structure, governance and management

The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity.

The trustees who served during the year were:

Sulaiman Othman Dr Susan Edwards Mary Collier Barry Khwatenge Sarah Constable Rachael Owhin Timothy Owen William Bruce Harron

New trustees are appointed when needed by the existing trustees. The trustees' report was approved by the Board of Trustees.

……………………………. William Bruce Harron 19/11/2024

………………………………Timothy Owen 19/11/2024

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INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF ARTIFICATION

I report to the trustees on my examination of the financial statements of ARTification (the trust) for the year ended 31 March 2024.

Responsibilities and basis of report

As the trustees of the trust, you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the trust’s financial statements carried out under section 145 of 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

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland I understand that this has been done for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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:

Signature: T Khan

19/11/2024

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Statement of financial activities (including summary income and expenditure account)

Recommended categories by activity
Income
Income and endowments from:
Donations and legacies
Other
Total
Expenditure
Expenditure on:
Charitable activities
Total
Net income/(expenditure) before tax
for the reporting period
Net movement in funds		 Unrestricted
funds
£		 Restricted in-
come funds
£		 Total funds
2024
£		 Prior year
funds
2023
£
146,753.00 78,819.00 225,572.00 150,211.00
391.00 391.00 92.00
147,144.00 78,819.00 225,963.00 150,303.00
80,875.00 129,441.00 210,316.00 169,922.00
80,875.00 129,441.00 210,316.00 169,922.00
66,269.00 -50,622.00 15,647.00 -19,619.00
66,269.00 -50,622.00 15,647.00 -19,619.00

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Balance Sheet

Unrestricted funds Restricted
income		 Total this year Total last year
funds 2024 2023
£ £ £ £
Current assets
Debtors (Note 3) 1,082.00 -
1,082.00		 1,150.00
Cash at bank and in hand 22,616.00 20,536.00
43,151.00		 25,912.00
Total current assets 23,697.00 20,536.00 44,233.00 27,062.00
Current Account(Note 4) 20,536.00 20,536.00 3,687.77
Saving Accounts 22,615.00 22,615.00 22,224.24
Creditors: amounts falling due
within one year (Note 5)		 2,125.00 - 2,125.00 600.00
Net current assets/(liabilities) 21,572.00 42,108.00 26,462.00
Total assets less current liabilities 21,572.00 42,108.00 26,462.00

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NOTES TO THE FINANCIAL STATEMENTS

1 Accounting policies

Charity information

ARTification is a registered charity, registration number: 1152149. The registered office is W3 Gallery, 185 High Street, Acton, W3 9DJ

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's [governing document], the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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

The accounts 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 accounts, 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 accounts. In making this assertion the trustees have considered the current uncertain economic conditions due to the Coronavirus pandemic. The trustees have not yet seen any adverse impact on the charity however they continue to assess its impact on the going concern basis of accounting. The trustees believe that the charity has a strong asset base which, combined with its cash reserves, will enable it to meet the challenges presented by this virus and to continue with its charitable objectives.

1.3 Charitable funds

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

Restricted funds are 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 accounts.

1.4 Incoming resources

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

Donations are accounted for on a receivable basis as soon as they are capable of accurate financial measurement.

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Donations are accounted for on a receivable basis as soon as they are capable of accurate financial measurement.

1 Accounting policies

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated items have been met, the receipt of economic benefit from the use by the charity of the items probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

Donated professional services and donated facilities are recognised based on the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Grants are accounted for in the year in which they are receivable in accordance with the terms of the grant.

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

Direct Charitable Expenditure

Expenditure which is directly attributable to specific activities has been allocated directly.

Support Costs

The costs of the charity are all allocated directly to the main activities and the charity does not therefore have any material support costs.

Governance Costs

Includes staff time and expenses for time spent in connection with trustees meetings, plus the cost of accounting and professional fees.

1.6 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:

Freehold land and buildings 2% Leasehold improvements Lease period Fixtures and fittings 10% Computers 10%

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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 net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible 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 Accounting policies

1.8 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.

Basic financial assets

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.9 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.

1.10 Retirement benefits

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

1.11 Pensions

In line with pension legislation ARTification has enrolled eligible employees into an auto- enrolment pension scheme. The basic contributions for the scheme are 3% of pensionable earnings by the charity and 5% by the employees. Pension costs are charged to the Statement of Financial Activities as incurred.

1.12 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable activities.

2 Critical accounting estimates and judgements

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

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

Note 3 Debtors and prepayments

Analysis of debtors

Trade debtors
Total		 This year
£		 Last year
£
1,082.00 1,150.00
1,082.00 1,150.00

Note 4

The closing cash at bank was for savings account £22,615.44 The current account balance was £20,536.22 The charity had two accounts which HSBC

Note 5 Creditors and accruals

Analysis of creditors

Trade creditors

Total Amounts falling due within one
year		 Amounts falling due within one
year
This year
£		 Last year
£
2,125.00 600.00
2,125.00 600.00

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