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2020-08-30-accounts

TRS GALLERY

INDEPENDENTLY EXAMINED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Company Number: 06988365 Charity Number: 1152968

The Royal Standard Northern Lights 5 Mann Street Liverpool L8 5AF

TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES

M Ball M Brewster D Evans M Hooper Y Karcheva L Payot R Stockill

REGISTERED OFFICE

Studio 19, The Bluecoat, 8 School Lane Liverpool, L1 3BX

COMPANY NUMBER

06988365

CHARITY NUMBER

1152968

BANKERS

HSBC

INDEPENDENT EXAMINERS

Adding Value Consultancy Ltd Studio 19, The Bluecoat, 8 School Lane Liverpool, L1 3BX

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

CONTENTS

Page
Report of the Trustees 3
Independent Examiner's Statement 12
Statement of Financial Activities 13
Balance Sheet 14
Notes to the Accounts 15-22
Detailed Statement of Financial Activities 23

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES' REPORT

The trustees present their report and accounts for the year ended 31 August 2020 for TRS Gallery, which is also known as The Royal Standard.

PRINCIPAL ACTIVITIES

The charitable company develops, promotes and advances the arts, including visual arts, craft and design, video, sound and digital arts and performance art.

CHARTIABLE OBJECTIVES

The charitable company aims to:

The charitable company aims to support and develop:

SUMMARY OF ACTIVITIES UNDERTAKEN TO FURTHER THE OBJECTIVES

The charitable company will pursue these aims by the following principles:

PUBLIC BENEFIT STATEMENT

In considering the objectives and activities, the Trustees have considered Charity Commission guidance on public benefit to ensure that the organisation is meeting its public benefit requirements.

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES' REPORT

ORGANISATION AND LEGAL STATUS

The charity is a company limited by guarantee and registered as a Charity. The charitable company is controlled by its governing document, memorandum of articles incorporated on 12[th] August 2009 as amended by special resolution(s) dated 8[th] March 2013 as registered at Companies House on 5[th] April 2013.

The organisation is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is £1.

TRUSTEES AND THEIR APPOINTMENT AND TRAINING

The charitable company is governed by a Board of Trustees, who are also its Directors. Members of the Board of Trustees during the year are listed above.

Trustees are recruited based on a regular review if skills considered necessary and ongoing discussion between the existing Board of Trustees. Numbers are limited and the charitable company has a policy of a rolling Trusteeship/Directorship to keep the charitable company focused and forward thinking. The current Board has a range of skills including business management, sales, fundraising, arts education, art practice, curatorial practice, and arts administration.

ACHIEVEMENTS AND PERFORMANCE DURING THE YEAR

The charitable company delivered several programmes and events in the year attracting new and existing audiences to the gallery and studios. Due to the covid-19 pandemic and nation wide lockdown, the organisations focus was set to support its immediate community of artists through the period and delivering online activity.

After securing Emergency Funding from Arts Council England, we provided reduced rent to studio artists to reduce the financial pressures placed on our community of artists, many of whom had their finances dramatically reduced due to loss of freelance work and commissions. The funding also allowed us to undergo internal organisational development, such as setting up new financial systems and producing a new, fit for purpose website, developing brand guidelines and supporting studio artists though sharing funding opportunities and supporting with grant applications.

STUDIO SHOW — October – November 2020

Celebrating the diversity within our artistic community, Studio Show reflected a unique dialogue between 22 artists at The Royal Standard and drawn parallels between unrelated practices. To accommodate each artist’s unique working habits, the un-themed exhibition reflects the difference voices, ideas and personalities that come together within the studio and the threads of common interest drawn between individual artists working practices and styles.

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES' REPORT

SHUFFLE – February 2020

The Royal Standard acted as leading partners in SHUFFLE — a one night event designed to expose and elevate the most innovative grassroots activity happening in Liverpool. The night brought together artist-led and DIY multi-disciplinary incentives including BITCH Palace, Zooniverse, and Common Zine, as well as independent curators Ben Lunt and Dan Waine to produce micro-exhibitions ‘Hagrid’ and ‘You scratch my back, I’ll scratch yours’. With The Royal Standard acting as a centre point and host, the night produced 8 exhibitions, supporting over 60 artists, and welcoming 400+ visitors.

TRS – GEN: Generator Projects Exchange – October 2019 & March 2020

Part of a cross-city exchange celebrating artist-led organisations nationally & introduces artists from across the Nation to new audiences — we participated in a two-part exchange with Dundee-based artist-led, GENERATOR Projects.

In 2019, GENERATOR Projects hosted four studio members — Ben Lunt, Laura Spark, Gregory Herbert and Amy Mizrahi from The Royal Standard for an exhibition in Dundee. In 2020, an exchange exhibition was hosted at The Royal Standard Gallery, highlighting the work of GENERATOR Projects voluntary team of artists who manage the space, allowing the artists-come-directors to reclaim their practice and showcase their work.

UTOPIA – July – November 2020

In a time of profound environmental, economic, and social crisis, The Royal Standard invited artists to respond to ideas of UTOPIA through a series of micro-commissions.

Overnight, COVID-19 drastically changed global living dynamics. Does this crisis offer us an opportunity to radically reinvent the world in which we live? Can we rethink how we act and connect? Can we live slower and more intentionally, bringing local and global communities together, reducing our impact on the planet and having a positive effect on a mass scale?

Utopian thinking aspires to a better world and has long been harnessed as a tool by artists to contribute to our understanding of culture and to map out future possibilities. However, some argue failed Utopian projects of the past prove radical ideas for social change are impractical and irrational schemes. We invited six artists to respond to such ideas and questions through their projects, plotting out visions and hopes for the future by responding to real or imaginary sites.

Manifesting within the digital realm, the programme commissioned six emerging to midcareer artists produce new digital works. Artists included Kiara Mohammed, Brendan Curtis, John Carney, Bink Bulthaweenan, Rowland Hill and Patt Flynn — threads running through each individual project included how collective thinking can activate social and economic change, the individual’s capacity to create their own utopia and looking to the past to understand or reimagine the present and future.

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES' REPORT

TRS SETS – April – June 2020

‘TRS Sets’ was a social media game-style responsive art challenge conducted through Instagram stories which encouraged audience participation through sharing artworks and images. Each weekend for a 10-week period, The Royal Standard would set a challenge brief on Instagram, giving audiences 48 hours to respond creatively with an artwork or image. At 8:00pm on Sunday we would share all responses, using our online platforms to highlight national artists and draw attention to their work. Providing some light touch fun in what was a testing period, we received 204 submissions with more than 45,900 online engagements over the 10-week period.

LJMU Residency Scheme

As part of our long-standing relationship with Liverpool School of Art and Design, we provided new graduates with a residency space at our studios for a 6 month period. In that time, they have access to our facilities, and we work with them to help support their development through events. This year, we supported four recent graduates including Michael Roberts, and emerging artists Ash//Ella — leading to their first exhibition with Cognitive Sensations, held in July 2021.

FUTURE PLANS

The Royal Standard’s organisational development has been hindered due to the Pandemic; like many organisations, we are a year behind and trying to keep focus our attention internally; focusing on the immediate community of artists we are working with.

Strategic planning work initiated in 2019 has been put on pause for the time being, although our mission and goals as an organisation remain the same and we are consistently looking for ways to improve our services benefit for its artists, volunteers and wider community or emerging practitioners. The tangible steps and goals outlined in our Business Plan and forecast, produced by Andrea Nixon and Jim Buso in 2019, are still attainable but have been delayed due to the pandemic. Moving forward, our main concern is gaining paid capacity to support our community of artists, manage finances and manage regional and national relationships with arts organisations and partners.

Our main focus and priority will be on continuing to support artists through pandemic recovery, through access to opportunities, support with funding and increased opportunities to have a say and participate in the shaping of our programme. We recently initiated a programme committee to give studio artists a say in what they think should be shown in the gallery and what would support their artistic development as a group, many of whom are new graduates and emerging professionals. Our Space Raiders Residencies — a series of 2 week mini-residencies open to artists in Liverpool — initiated late this year has given artists without access to a studio space, the opportunity to produce work at scale, bring new ideas to fruition and generate new thinking.

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES' REPORT

The Royal Standard has been given assess to a former M&S retail space in Bootle, granted by Axis-Web, which offers a unique space for our studio artists and the wider artistic community to come to produce work at scale and have access to affordable space which is near impossible within the city. The open plan space offers the chance for artists to work collaboratively and bounce round new ideas and thinking, rather than working in silos. We plan to utilise the space and invite new artists to do Space Raider residencies similar

We will also continue to work alongside LJMU to facilitate our successful poly residency Scheme, helping to support emerging young artists within the city region. This year, we will continue this relationship and explore ways we can work with MA students, and tap into networks further afield, in Bootle. We are exploring the potential of developing relationships with Hugh Baird University and College, providing their students with access to space, and the energy and expertise of more experienced artists.

We are also keen to consult with the community in terms of what they would like from us as an organisation when planning our future programme for 2022. We plan to hold a series of consultancy sessions in our gallery space, inviting the artists, peers, community members and organisations in to discuss the role we play in the community, collect views on what they would like to see and how our programme can better reflect them and their interests. Hosted in Autumn 2021, the session will inform future bids for our spring to autumn programme in 2022.

GOING CONCERN

The financial statements have been prepared on a going concern basis. The trustees have considered the level of funds held and the expected level of income and expenditure for the twelve months from authorising these financial statements. The trustees assess the charity to be a going concern based on review of financial performance of the 2020/21 year to date, the management accounts forecast for the remainder of 2020/21, the rolling cash flow forecast, funding commitments from Arts Council England, and longer-term plans and forecasts for 2021 and beyond. As a result, the trustees are satisfied that these accounts can be prepared on a going concern basis.

ORGANISATIONAL DEVELOPMENT

Although hindered by the pandemic, we are still working towards building a more sustainable and resilient future as an organisation. We are focusing primarily on how our activity can support emerging artists from our Artist Leads to our volunteers, studio artists and wider community of local artists and participants. We have reduced our public programme to think about organisational development – with our main focus being to gain financial support in the form of a Studio Manger to remove the burden on our Artist Leads which hinders the opportunity to develop creative ideas, support our studio artists and work on networking with local community. Further funding, consultation and support are needed to achieve this – work which will be undertaken by trustees, consultants, and critical friends.

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020 TRUSTEES' REPORT

RISK MANAGEMENT

The main risks to which the charitable company is exposed as identified by the Trustees have been considered and systems have been established to mitigate those risks.

FINANCIAL REVIEW

Incoming resources for the year totalled £105,574 (2019: £56,349) of which £51,447 (2019: £15,140) related to funding for projects upon which restrictions are placed. Total expenditure in the year was £68,925 (2019: £61,837), leaving a surplus for the year of £36,649 (2019: deficit £5,488). At 31 August 2020, the charitable company’s reserves stood at a surplus of £30,403 (2019: deficit £6,246) of which a surplus of £12,276 (2019: surplus £9,793) represented restricted funds.

RESERVES POLICY

The purpose of the Reserves Policy for is to ensure the financial stability of the organisation and that it maintains a viable operating position to deliver on its charitable objectives. Based on the current operating expenditure the Target Operating Reserve is set at £12,500 which is equivalent to three months of operating cash expenses.

Definitions, Targets and Reporting:

The Operating Reserve is intended to provide an internal source of unrestricted funds for unforeseen situations such as a sudden increase in expenses, one-time unbudgeted expenses, unanticipated loss in funding/rental income, or uninsured losses. The Reserve may also be used for one-time, nonrecurring expenses that will build long-term capacity, such as staff development, research and development, or investment in infrastructure. Operating Reserves are not intended to replace a permanent loss of funds or eliminate an ongoing budget gap.

The target minimum Operating Reserve Fund is equal to three months of average operating cash expenses. The calculation of average monthly expenses excludes any costs associated with the delivery of arts related activities which are to be funded from Restricted funds and do not therefore form part of the Operating Reserve Calculation.

The amount of the Operating Reserve Fund target minimum will be calculated each year after approval of the annual budget, and reported by the Finance Sub-Committee to the Full Trustee meeting for formal approval. The Operating Reserve is a live target that will be monitored as part of the Full Trustee meeting cycle.

Funding of Reserves:

The Operating Reserve Fund should be funded with surplus unrestricted operating funds. The Trustees may from time to time direct that a specific source of revenue be set aside for Operating Reserves. Examples may include eligible grant funding with unrestricted access to the funds; donations; and sponsorship related to artistic activity.

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES' REPORT

RESERVES POLICY (continued)

Use of Reserves:

Use of the Operating Reserves requires three steps:

  1. Identification of appropriate use of reserve funds - The Trustees and Directors will identify the need for access to reserve funds and confirm that the use is consistent with the purpose of the reserves as described in this Policy. This step requires analysis of the reason for the shortfall, the availability of any other sources of funds before using reserves, and evaluation of the time period that the funds will be required and replenished.

  2. Authority to use operating reserves - A request to use Operating Reserves will be submitted to Trustees for approval as part of a Full Trustee meeting agenda item. The request should include the analysis and determination of the use of funds and plans for replenishment.

The organisation's goal is to replenish the funds used within twelve months to restore the Operating Reserve Fund to the target minimum amount. If the use of Operating Reserves will take longer than 12 months to replenish, the request will be scrutinized more carefully. The Trustees will approve or modify the request and authorise transfer from the fund. This will be recorded as a minute within the Full Trustee meeting report

  1. Reporting and monitoring - A nominated Director is responsible for ensuring that the Operating Reserve Fund is maintained and used only as described in this Policy. Upon approval for the use of Operating Reserve funds, the Director will maintain records of the use of funds and plan for replenishment. He/she will provide regular reports to the Finance Committee and trustees of progress to restore the Fund to the target minimum amount. The use and current status/level of Operating Reserves will be an Agenda item at the Full Trustee meeting

Actual Operating Reserve:

As of 30 August 2018 the total unrestricted funds available to be ring-fenced for Operating Reserves fell short of the three-month target. The key issue affecting the reserves of the charitable company relate to the relocation of the charitable company in 2017, leading to costs being greater than anticipated. A financial strategy was put in place in 2018 to bring current reserves closer to the target figure.

A number of actions have now been implemented. These include:

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES' REPORT

RESERVES POLICY (continued)

A Finance Sub-Committee has been established to review and monitor the actions above and to report into a strengthened Trustee committee. Despite the challenges presented, the Trustees are confident the actions presented will support the improvement of the current reserve to meet more closely with the Target Operating Reserve over time.

STATEMENT OF TRUSTEES’ RESPONSIBILITES

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the Trustees should follow best practice and:

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

APPROVAL

This report has been prepared in accordance with the Charities Act 2011, Companies Act 2006, Accounting and Reporting by Charities; Statement of Recommended Practice (SORP 2015) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1[st] January 2015).

This report was approved by the Board of Trustees on 4[TH] June 2021.

R Stockill Trustee

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

INDEPENDENT EXAMINER'S STATEMENT

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES

I report to the trustees on our examination of the accounts for the year ended 30 August 2020.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). The trustees consider that an audit is not required for this year under section 144(2) of the Act and that an independent examination is needed.

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

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 accounts to be reached.

Matthew Brown, CPFA Adding Value Consultancy Ltd Accountants and Financial Management Consultants Date: 4[th] June 2021

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

STATEMENT OF FINANCIAL ACTIVITIES

Notes
Income and endowments from:
Donations and legacies
2
Other Trading activities
3
Total Income and endowments
Expenditure:
Expenditure on charitable activities
4
Fundraising
5
Total Expenditure
Net Income (Expenditure) for the Year
Net income/(expenditure) for the year
Total funds brought forward
Net funds carried forward		 Unrestricted
Restricted
2020
2019
funds
funds
Total
Total
13,640
51,447
65,087
16,840
40,487
0
40,487
39,509
54,127
51,447
105,574
56,349
19,140
48,964
68,104
61,441
821
0
821
396
19,961
48,964
68,925
61,837
34,166
2,483
36,649
(5,488)
34,166
2,483
36,649
(5,488)
(16,039)
9,793
(6,246)
(758)
18,127
12,276
30,403
(6,246)

The Statement of Financial Activities includes all gains and losses recognised during the year. All income and expenditure relate to continuing operations.

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

BALANCE SHEET AS AT 31 AUGUST 2020

Notes
FIXED ASSETS
Tangible Fixed Assets
7
CURRENT ASSETS
Debtors (amounts falling due within one year)
8
Cash at bank and in hand
CREDITORS: Amounts falling due within one year
9
NET CURRENT ASSETS (LIABILITIES)
TOTAL NET ASSETS
RESERVES
Unrestricted funds
11
Restricted funds
12		 2020
2019
£
£
-
2,154
1,689
0
40,074
9,885
41,763
9,885
(11,360)
(18,285)
30,403
(8,400)
30,403
(6,246)
18,127
(16,039)
12,276
9,793
30,403
(6,246)

For the year ending 31 August 2020 the company was entitled to exemption under section 477 of the Companies Act relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

Approved by the board of trustees on 4[th] June 2021 and signed on their behalf:

R Stockill Trustee

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

NOTES TO THE ACCOUNTS

1. ACCOUNTING POLICIES

1a. Basis of Accounting

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (SORP 2015) (effective 1[st] January 2015), Charities Act 2011 and the Companies Act 2006.

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

1b. Fund accounting

Unrestricted funds are the charitable company’s free reserves available for the Trustees to apply in accordance with the charitable company’s charitable objectives.

Restricted funds are subject to specific restrictive conditions imposed by the donor. All restricted funds are accounted for as restricted income and expenditure for the purposes is charged to the fund.

1c. Income recognition

All income is recognised once the charitable company has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably.

Donations and legacies comprise of donations and general grants which are recognised in the accounts when received, with the exception of known legacies which are accounted for when their receipt is certain.

Other trading income relates to all fundraising events and is recognised when the amounts are certain.

1d. Expenditure recognition

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charitable company to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

NOTES TO THE ACCOUNTS

1. ACCOUNTING POLICIES (continued)

All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the Statement of Financial Activities. Support and governance costs are applied to unrestricted funds unless specifically included in the restrictions, as specified by the donor.

Expenditure on charitable activities relate to the operation of the charitable company comprising of direct charitable expenditure to meet the objectives of the charitable company. Support and governance costs relate to the management and operation of the organisation and also compliance with constitutional and statutory requirements in producing the annual report. These are dealt with in the Statement of Financial Activities when payment has been approved by the charitable company.

1e. Tangible fixed assets

Tangible fixed assets are stated in the balance sheet as cost or revaluation less accumulated depreciation. Capital expenditure of £100 and above is treated as a fixed asset. Depreciation is provided to write off the cost of each asset over its expected useful life as below:

Improvements to property 25% per annum straight line basis Plant and machinery 25% per annum straight line basis

1f. 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.

1g. Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

1h. 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.

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

NOTES TO THE ACCOUNTS

1. ACCOUNTING POLICIES (continued)

1j. 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 receipts 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.

1k. Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

1l. Taxation

Income and gains are exempt from taxation as they are received and applied for charitable purposes only. The charitable company benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions.

1m. Critical accounting estimates and judgements

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

The estimates and underlying assumptions are reviewed on an on-going 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.

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

NOTES TO THE ACCOUNTS

2. INCOME AND ENDOWMENTS FROM DONATIONS AND LEGACIES

Donations and sponsorship
Grants Receivable
Analysis of grants receivable:
Arts Council England
Commutal
Frolich
Arts Council England - Emergency funding
Liverpool City Council		 Unrestricted Restricted
Funds
Funds
2020
2020
£
£
3,640
-
10,000
51,447		 Total
Total
Funds
Funds
2020
2019
£
£
3,640
1,700
61,447
15,140
13,640
51,447		 65,087
16,840
2020
2019
£
£
14,960
14,890
-
250
9,847
-
26,640
-
10,000
-
61,447
15,140

3. INCOME AND ENDOWMENTS FROM OTHER TRADING ACTIVITIES

Fundraising
Rents Receivable		 Unrestricted Restricted
Total
Total
Funds
Funds
Funds
Funds
2020
2020
2020
2019
£
£
£
£
4,598
-
4,598
4,154
35,889

-
35,889
35,355
40,487
-
40,487
39,509

4. EXPENDITURE ON CHARITABLE ACTIVITIES

Operation of an artists' gallery and exhibitions Direct
Support
Charitable
Expenditure
Finance &
Governanc
Total
Total
2020
2020
2020
2019
£
£
£
£
33,686
34,418
68,104
61,441
33,686
34,418
68,104
61,441

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

NOTES TO THE ACCOUNTS

4. EXPENDITURE ON CHARITABLE ACTIVITIES (continued)

Direct Charitable Expenditure
Fees and other costs
Insurance
Operating Leases
Project Costs
Rates and water
Website & advertising
Subscriptions & office costs
Depreciation
Release of capital grant
Support Finance & Governance
Accountancy and legal fees
Bank charges
Write off of rental income arrears
Insurance
Operating leases
Rates and water
Training
Total expenditure on Charitable Activities		 2020
2019
£
£
-
763
554
546
18,762
17,073
13,474
11,807
341
1,233
178

-
378

-
2,154
2,156
(2,155)
(2,155)
33,686
31,423
2020
2019
£
£
3,121
1,573
77
167
1,644
-
831
819
28,143
25,609
511
1,850
90
-
34,418
30,018
68,104
61,441

£48,964 (2019: £17,729) of the above expenditure relates to restricted funding.

All costs, unless easily identifiable, have been apportioned between Charitable Activities and Support Costs at 40%and 60% respectively. This ratio is considered by the Trustees to fairly reflect the split of expenditure undertaken within the charity.

5. EXPENDITURE ON FUNDRAISING ACTIVITIES

Events Unrestricted Restricted
Total
Total
Funds
Funds
Funds
Funds
2020
2020
2020
2019
£
£
£
£
821
-
821
396
821
-
821
396

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

NOTES TO THE ACCOUNTS

6. TRUSTEES REMUNERATION AND BENEFITS

No Trustees were remunerated during the year.

No Trustees expenses (2019: nil) were paid in the year to cover travel expenses.

7. TANGIBLE FIXED ASSETS

**Improvements ** **Improvements ** Plant and
to property machinery Total
£ £ £
Cost
At 31 August 2019 8,619 2,406 11,025
At 31 August 2020 8,619 2,406 11,025
Depreciation
At 31 August 2019 6,465 2,406 8,871
For the year 2,154 0 2,154
At 31 August 2020 8,619 2,406 11,025
Net Book Value
At 31 August 2020 - - -
At 31 August 2019 2,154 - 2,154
8. DEBTORS
2020 2019
£ £
Amounts falling due within one year:
Rental debtors 1,689 -
1,689 -

8. DEBTORS

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

NOTES TO THE ACCOUNTS

9. CREDITORS: amounts falling due within one year

Accruals
Deferred Income
Deferred government grants		 2020
2019
£
£
7,036
12,013
4,324
4,117
0
2,155
11,360
18,285

10. LEASING AGREEMENTS

The charitable company had outstanding commitments for future minimum lease payments which fall due as follows:

Within one year
Two to five years		 2020
2019
£
£
49,680
49,634
41,400
78,232
91,080
127,866

11. UNRESTRICTED FUNDS

General Fund Brought
Incoming
Outgoing
Carried
forward
resources
resources
forward
£
£
£
£
(16,039)
54,127
(19,961)
18,127
(16,039)
54,127
(19,961)
18,127

12. RESTRICTED FUNDS

Arts Council England
Arts Council England - emergency grant
Frolich Estate
Community Foundation for Merseyside
International Festival for Business
Liverpool Empire Trust
National Lottery Awards for all		 Brought
Incoming
Outgoing
Carried
forward
resources
resources
forward
£
£
£
£
-
14,960
(14,960)
-
26,640
(26,640)
-
9,847
-
9,847
2,429
-
-
2,429
3,028
-
(3,028)
-
1,450
-
(1,450)
-
2,886
-
(2,886)
-
9,793
51,447
(48,964)
12,276

These are the monies given to the charitable company to be spent for specific purposes.

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

NOTES TO THE ACCOUNTS

12. RESTRICTED FUNDS (continued)

Arts Council England is funding towards a development programme to build and expose the charitable company to wider audience.

Arts Council England Emergency Recovery Grant allowed us to provide reduced rent to studio artists to reduce the financial pressures placed on our community of artists, many of whom had their finances dramatically reduced due to loss of freelance work and commissions.

Estate of the Late Mrs AF Frohlich - Bequest granted to contribute towards hiring a permanent Studio Manager & supporting recidency scheme for HEI graduates.

International Festival of Business helped to fund a programme aimed at creating transparency between business and art.

Liverpool Empire Trust is going to be used towards printer costs.

National Lottery Awards for All was used for the ‘Working Together: Improving the Social Space at TRS Gallery’ project.

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

General
**Unrestricted ** Restricted Total
funds funds Funds
£ £ £
Tangible Fixed Assets - - -
Net Current Assets/(liabilities) 18,127 12,276 30,403
18,127 12,276 30,403

14. RELATED PARTY TRANSACTIONS

The trustee L Payot is also a studio holder.

There were no other material related party transactions during the year which require disclosure (2019: none).

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TRS GALLERY ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

This page does not form part of the statutory financial statements

Incoming Resources
for the year ending 31 August 2020
Donations and legacies
Donations and sponsorship
Grants
Other trading activities
Fund raising events
Rents receivable
Total Incoming Resources
Expenditure
for the year ending 31 August 2020
Fundraising
Events
Charitable Activities
Fees and other costs
Insurance
Operating Leases
Project Costs
Rates and water
Website & Advertising
Subscription & office costs
Depreciation
Release of capital grant
Support costs - management
Insurance
Operating leases
Rates and water
Training
Finance Costs
Bank Charges
Write off of rental income arrears
Governance Costs
Governance Costs - Accountancy
Total resources expended
Net Income/ (Expenditure)		 2020
£
3,640
61,447
65,087
4,598
35,889
40,487
105,574
2020
£
821
-

554
18,762
13,474
341
178
378
2,154
(2,155)
33,686
831
28,143
511
90
29,576
77
1,644
3,121
68,925
36,649		 2019
£
1,700
15,140
16,840
4,154
35,355
39,509
56,349
2019
£
396
763
546
17,073
11,807
1,233
-
-
2,156
(2,155)
31,423
819
25,609
1,850
-
28,278
167
-
1,573
61,837
(5,488)

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