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2021-08-31-accounts

DocuSign Envelope ID: 4DB43AF3-A37E-4487-91FE-2F6CF6F24199

Registered Charity Number 1153570

KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION)

REPORT AND ACCOUNTS For the year ending 31 August 2021

DocuSign Envelope ID: 4DB43AF3-A37E-4487-91FE-2F6CF6F24199

KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 AUGUST 2021 TRUSTEES’ REPORT

As the Board of Trustees, we present our report and financial statements for the year to 31 August 2021.

Registered Charity Number 1153570

Registered Office Unit C, Bewick, Prestwick Park, Prestwick, Newcastle upon Tyne, NE20 9SJ

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

Kielder Observatory Astronomical Society (KOAS) was established as a Charitable Incorporated Organisation (CIO) on 29 August 2013. As a CIO, it is governed by its constitution. This was amended in April 2020 and is in a form specified by the Charity Commission for a Foundation CIO whose only voting members are its Trustees.

Charitable Purpose

KOAS’s charitable objects are:

Structure and Governance

The charity currently has a board of eight non-executive Trustees. The charity is the sole shareholder in its trading subsidiary company, Kielder Observatory Services Limited.

Board of Trustees

The Trustees of KOAS during the period and to the date of signing this report were as follows:

Mr Peter Standfield (Chair) Dr Nigel Metcalfe (Secretary) Mr Trevor Robinson (Treasurer) Mr Tim Care Resigned 19 October 2021 Mr Tom Grieveson Mr Cassian Harrison Appointed 14 July 2021 Mr Stuart Kitching Mr William MacLeod Appointed 29 October 2021 Dr Jürgen Schmoll Chief Executive Officer Catherine Johns

Independent Examiner

Mr P O’Hara FCA, 4 Stoneyhurst Road West, Gosforth, Newcastle Upon Tyne NE3 1PG

Legal Advisers

Muckle LLP, Time Central, 32 Gallowgate, Newcastle Upon Tyne NE1 4BF

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DocuSign Envelope ID: 4DB43AF3-A37E-4487-91FE-2F6CF6F24199

KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 AUGUST 2021 TRUSTEES’ REPORT

STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)

Board Meetings

The Board meets a minimum of seven times per year face to face or via videoconference. It also conducts some business via email and aims to have at least two awayday sessions each year, to discuss policy and strategy. The agenda and written Board reports are prepared by the Chief Executive and Officers of the Board, as appropriate, and circulated in advance of each meeting. The Trustees exercise their duties and responsibilities with appropriate care and diligence.

Recruitment and Appointment of Board of Trustees

The charity may have up to 12 Trustees. New Trustees are appointed by the existing Trustees. In selecting individuals for appointment, the Trustees aim to ensure that the Board has the skills, knowledge and experience needed for the effective administration of the charity.

Trustees are appointed for a term of three years and may not serve for more than three consecutive terms without standing down for an interval of at least one year.

Trustee Induction and Training

New Trustees are inducted by the Chair of the Board and Chief Executive Officer and are provided with a range of resources to support their understanding of KOAS activities.

Management

Day-to-day operation of the charity is delegated to the Chief Executive Officer within the constraints of the annual budget set by the Trustees.

The full staff team currently comprises:

Reserves Policy

The Trustees have reviewed the charity's need for reserves in line with the guidance issued by the Charity Commission.

The Trustees aim to hold a level of Unrestricted Reserves that provides sufficient financial resources to meet the liabilities which would crystalise if KOAS were unable to continue operating. Their current estimate of the amount required for this purpose is approximately £125,000.

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KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 AUGUST 2021 TRUSTEES’ REPORT

STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)

Reserves Policy (Cont.)

They also aim to retain a further £25,000 of Unrestricted Reserves, to enable the charity to respond flexibly to any issues, one-off financial requirements or appropriate initiatives that might be identified outside of its annual budgeting process.

The targeted level of reserves to be retained for the above purposes is therefore considered to be a minimum of £150,000.

The charity’s total Unrestricted Reserves shown in the Balance Sheet as at 31 August 2021 are £94,562 (2020: £144,727). Of these reserves, £48,888 were represented by Fixed Assets (2020: £59,688), leaving £45,674 available as Unrestricted Free Reserves (2020: £85,039).

The Trustees aim, through their budgeting processes, to reach the optimum level of Reserves within three years.

The Trustees will review the charity’s optimum level of reserves as the nation emerges from the pandemic crisis.

Grant Making Policy

The charity does not currently engage in grant-making activity.

The Contribution of Volunteers

The charity is supported by a small core of volunteers who give their time freely to assist with running events. Volunteers come from all walks of life but share a common interest in the science of astronomy. To ensure consistency in the quality and safety of events all volunteers receive training.

Induction training is provided that covers the basic features and operations of the observatory. A handbook is made available which describes the policies and procedures of the charity. For their first few events, volunteers are ‘buddied’ by an experienced volunteer or member of staff. Over a period of a few months, depending on their development and confidence, the volunteer is allowed to assume increasing responsibilities, under appropriate supervision, such as making drinks, setting up for an event and closing down afterwards, taking visitors for telescope tours, finding objects in the sky etc.

During the reporting period, KOAS had 41 registered volunteers.

OBJECTIVES AND ACTIVITIES

Aims & Objectives

The charity exists to:

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KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 AUGUST 2021 TRUSTEES’ REPORT

OBJECTIVES AND ACTIVITIES (CONTINUED)

Aims & Objectives (Cont.)

Our purpose is to create opportunities for people of all backgrounds and abilities to experience moments of inspiration, revelation, wonder and hope through observing the cosmos.

At the beginning of the financial year 2020/21, we agreed three over-arching strategies:

  1. Put people at the heart of everything we do, extending our reach to more people and to a more diverse audience

  2. Build our reputation as a gold standard in dark sky observation, imaging and outreach

  3. Strengthen our organisation

And we established these priorities:

The impact of the COVID-19 pandemic continued to be severe with continual changes to our ability to be open at all, and on the way we could open. We were open at the start of the year but late night events were cancelled in September and October due to curfew restrictions, and then we were completely closed from November to mid-May, initially re-opening with reduced capacity (16 tickets per event, as opposed to 41). We have slowly increased numbers to 30 per event since that time, consulting with the staff team at every point. Even when lockdown restrictions were eased altogether, we continued to operate our COVID-secure procedures, e.g. mask-wearing indoors, and we have received excellent feedback for doing so. Demand for tickets remains very high, with events selling out months in advance. The site itself has seen some recent additions: a SPIDER radio telescope, courtesy of the Tanlaw Foundation, and a Low Earth Orbit Optical Camera Installation, courtesy of Alnwick-based company NORSS.

Our approach to new venues has also been affected by COVID, with many of our potential partners closing their sites, but we have maintained links and we have recently started a Kielder PopUp offer, taking telescopes on tour to public access spaces, such as parks, should the Observatory itself be closed.

We continued developing our digital offer: we launched a monthly podcast featuring different aspects of our work and astronomy themes with guest participants from universities. Phase 1 of our Augmented Reality application, Kielder Constellations, was soft-launched and Phase 2 is due for launch in early 2022. In addition, an online learning resource with additional content themed around our live events is in final testing before launch. All this helps people access content if they cannot attend the Observatory, and enables people who have visited to engage further in our work.

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KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 AUGUST 2021 TRUSTEES’ REPORT

OBJECTIVES AND ACTIVITIES (CONTINUED)

Aims & Objectives (Cont.)

Outreach into schools remained greatly affected by the pandemic, with digital delivery remaining the primary channel until September 2021. Despite this, we reached 139 schools, over 7,000 students and over 240 teachers as part of our project funded by North of Tyne Combined Authority. In addition, we partnered with the Reece Foundation to pilot our Kielder Star Groups concept, which sustains engagement, with weekly observing groups in schools and linking students to mentors.

We launched some new arts projects, including Escape Velocity, which taught children how to image the dark skies with their mobile phone, and Project Inspire, in which we partnered with an artist and community groups in Sunderland to create learning resources around radio astronomy, linking with the SPIDER radio telescope located at Kielder. We secured some funding from Arts Council England to develop a “Kielder Dark Skies” concept: participatory art created with local communities.

Our local dark sky partnership was consolidated with Northumberland National Park and our fellow observatories in Northumberland collaborating on the first Northumberland Dark Sky Festival, which was held online. As we further develop our Astro-Imaging Academy, we intend to work with international dark sky places on various arts and education projects.

The team is at the heart of Kielder Observatory’s success. This year we implemented a new team structure together with an improved benefits package and better development pathways. We also revitalised our volunteering offer, and volunteers now support the staff team at most Observatory events. We continued to improve our sustainability practice, through revised policies and procedures, contracts and procurement processes. Our board has reviewed its operations and, with the pandemic impact now diminishing at last, is developing its strategy for KOAS’s longer-term future with growing confidence.

Ensuring our Work Delivers our Aims

We review our aims, objectives and activities each year. This review considers the achievements and outcomes of our work in the previous 12 months and looks at the success of each key activity and the benefits it has brought to those groups of people we are set up to help. This helps us to ensure that our aims, objectives and activities remained focused on our charitable purposes.

Public Benefit

The Trustees understand and have discussed the implications of the provisions of the Charities Act 2006, which requires all charities to be able to demonstrate that they are established for public benefit and have had due regard to the public benefit guidance issued by the Charity Commission. The Trustees believe that the charity meets both of the key principles.

In essence, this year we have built on the purpose we articulated last year, i.e., our primary purpose is to create opportunities for people of all backgrounds and abilities to experience moments of inspiration, revelation, wonder and hope through observing the cosmos. All the projects that we have selected have fulfilled this broad purpose.

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KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 AUGUST 2021 TRUSTEES’ REPORT

OBJECTIVES AND ACTIVITIES (CONTINUED)

Public Benefit (Cont.)

- Principle 1 There must be an identifiable benefit, or benefits

The primary benefit KOAS delivers is articulated in its charitable objects: to promote interest in the science of astronomy amongst the general public, to facilitate the education of members of the public in the science of astronomy and maintain an astronomical observatory in Kielder Forest which will be used to support the preceding objectives. The Observatory itself is the primary way we achieve our objects. This is the base from which we provide a wide range of events: from premium late-night events at the weekend to introductory and family events.

The event programme is varied to accommodate different interests, from workshop activities for children to topics such as the Aurora, to specialist astrophotography classes. KOAS has concessionary tickets available and events are priced differently to suit different income levels. This ticket income forms the main income of the charity.

All activities are subject to a rigorous process of risk management and benefits analysis to ensure that the benefits to the public outweigh any potential harm. All activities and events are evaluated and analysed to ensure that there is a clearly identifiable benefit delivered: data is gathered from audience surveys, social media, project participants, media and peers.

All of our activities are aimed at the general public, assuming no or little knowledge of astronomy, including events at the Observatory.

The income from events can often act as match funding for projects (either directly or indirectly in the form of staff time) for projects that deliver our charitable objects beyond the Observatory site itself. In the last two years, we have extended our reach significantly to different sections of the public, including those from areas of deprivation. This includes schools outreach (free to schools in North of Tyne Combined Authority Area), a new free augmented reality app, a podcast series and livestreams available to all at no charge, an arts programme with community groups in Sunderland to explore radio astronomy, and, more recently, the Kielder PopUps, where staff take telescopes out to public places, which are free to attend. We have an active volunteering programme, regularly host work placements from schools and universities and provide opportunities for artists to develop their creative practice. We host regular visits from organisations wishing to establish their own observatory or dark sky activities and offer free advice and share best practice. We also collaborate with other existing observatories to offer free activities, such as joint dark sky festivals.

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KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 AUGUST 2021 TRUSTEES’ REPORT

OBJECTIVES AND ACTIVITIES (CONTINUED)

Risk Management

The Trustees of the charity regularly review the major governance, operational and financial risks which the charity faces as part of its annual business planning process and confirm that systems have been established to mitigate these risks.

KOAS has a risk management strategy in place that comprises:

The Trustees are satisfied that appropriate financial systems and controls are in place, together with appropriate employment policies and practices. The staff handbook, financial policies document, and health and safety handbook are reviewed annually, and staff training happens via additional assessments.

The Trustees consider the key risk currently facing the charity to be the ongoing impact of coronavirus, which will continue to impact our usual operating model through the:

To mitigate this, we have accelerated the development of digital delivery, including online learning and augmented reality, and directed more effort towards fundraising (e.g., from grant-giving trusts and foundations).

The Trustees manage the general financial risks by ensuring that:

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KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 AUGUST 2021 TRUSTEES’ REPORT

ACHIEVEMENTS AND PERFORMANCE

Summary of the Charity’s Main Achievements During the Year

Financial Review

The outturn for the year is an unrestricted deficit of £50,165 (2020: deficit of £22,813). The deficit will be taken from Unrestricted Reserves, leaving a balance on Unrestricted Funds at 31 August 2021 of £94,562 (2020: £144,727. 2019: £167,540).

Financial policies are reviewed annually, and the Finance and Risk Committee reviews performance against agreed budgets on a monthly basis. The executive team monitors operational performance against financial controls regularly.

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KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 AUGUST 2021 TRUSTEES’ REPORT

FUTURE PLANS

During 2021/22 KOAS will be further developing its services within a refreshed strategic framework. This articulates three overarching strategies, within each of which we will work towards sub-goals as outlined below.

  1. Putting people at the heart of everything we do, extending our reach to more people and to a more diverse audience:

  2. Ensure the audience experience is excellent and engaging.

  3. Strategically grow audiences, ensuring we meet the motivations of existing audiences and the needs of new audiences.

  4. Use insight into audiences’ needs to shape the most compelling offer.

  5. Build our reputation as a gold standard in dark sky observation, imaging and outreach:

  6. Develop KOAS activity to maintain its pioneering reputation.

  7. Grow our visitor numbers, reputation and reach through our marketing and communication campaigns.

  8. Grow partnerships and deepen our engagement with our stakeholders.

  9. Ensure our brand values, personality and principles are reflected in everything we do.

3. Strengthen our organisation:

Our key objectives for the year are to:

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KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 AUGUST 2021 TRUSTEES’ REPORT

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for managing the business of the charity and may exercise all the powers of the charity unless restricted by the Charities Act or the constitution of the charity.

The Trustees are responsible for the preparation of financial statements for each financial year which show a true and fair view of the state of affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year.

In preparation of the financial statements the Trustees should follow best practice and:

  1. Select suitable accounting policies and apply them.

  2. Make judgements and estimates that are reasonable and prudent.

  3. Prepare the financial statements on a going concern basis unless it is inappropriate to assume that the charity will continue on that basis.

The Trustees are responsible for maintaining proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charity.

The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

DECLARATIONS

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (issued in March 2005 by the Charities Commission England and Wales).

This report was approved by the Board of Trustees on 15 February 2022 and signed on its behalf by:

Peter Standfield Trustee and Chair

Trevor Robinson Trustee and Treasurer

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INDEPENDENT EXAMINER’S REPORT TO THE MEMBERS ON THE UNAUDITED ACCOUNTS OF KIELDER OBSERVATORY ASTRONOMICAL SOCIETY FOR THE YEAR ENDED 31 AUGUST 2021

I hereby report to the Trustees/Members of Kielder Observatory Astronomical Society (Charity Registration Number 1153570) on the accounts for the year ended 31 August 2021 set out on pages 12 to 23.

Responsibilities and Basis of Report

As the charity’s Trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Having satisfied myself that the accounts of the charity are not required to be audited under charity law and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent Examiner’s Statement

Since the Company’s gross income exceeded £250,000, your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountant in England and Wales, which is one of the listed bodies.

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:

  1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or

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

  3. the accounts do not comply with the accounting requirements of section 130 of the 2011 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

  4. the accounts have not been prepared in accordance with the methods or 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 (FRS102)).

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.

Pete O’Hara, FCA, Chartered Accountant

Fellow of the Institute of Chartered Accountants in England & Wales

4 Stoneyhurst Road West, Gosforth, Newcastle upon Tyne NE3 1PG

15 February 2022

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KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) STATEMENT OF FINANCIAL ACTIVITIES YEAR TO 31 AUGUST

2021

Note
Income
Income from Investments
2
Income from Charitable Activities
3
Income from Grants, Donations &
Legacies
4
Other Income
5
Total Income
Expenditure
Expenditure on Raising Funds
6
Expenditure on Charitable Activities
7
Total Expenditure
Net Income/(Expenditure)
8
Balance brought forward at 1 Sept
Balance carried forward at 31
August
18		 Unrestricted
Funds
Restricted
Funds
Total
2021
Total
2020
£
£
£
£
258
-
258
583
254,983
-
254,983
315,555
162,610
128,575
291,185
272,770
-
-
-
8,304
417,851
128,575
546,426
597,212
18,300
-
18,300
4,121
449,716
116,322
566,038
609,349
468,016
116,322
584,338
613,470
(50,165)
12,253
(37,912)
(16,258)
144,727
257,625
402,352
418,610
£94,562
£269,878
£364,440
£402,352

The notes on pages 14 to 23 form part of the financial statements

There are no recognised gains and losses during the year other than as shown above.

All the activities for the year are continuing activities.

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KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) STATEMENT OF FINANCIAL POSITION/BALANCE SHEET At 31 AUGUST 2021

Notes
Fixed Assets
Tangible Fixed Assets
11
Fixed Asset Investments
12
Current Assets
Stock
13
Debtors
14
Cash at Bank and In Hand
Creditors:
Amounts Falling Due Within 1 Year
15
Net Current Assets
Creditors:
Amounts Falling Due After > 1 Year
16
Total Net Assets
17
Represented By:
Unrestricted Funds
18
Restricted Funds
18		 2021
2020

£
£
£
£
285,217
311,214
10
10
285,227
311,224
8,666
-
38,869
74,084
456,099
322,369
503,634
396,453
(381,088)
(305,325)
122,546
91,128
(43,333)
-
£364,440
£402,352
94,562
144,727
269,878
257,625
£364,440
£402,352		 2021
2020

£
£
£
£
285,217
311,214
10
10
285,227
311,224
8,666
-
38,869
74,084
456,099
322,369
503,634
396,453
(381,088)
(305,325)
122,546
91,128
(43,333)
-
£364,440
£402,352
94,562
144,727
269,878
257,625
£364,440
£402,352
£402,352
144,727
257,625
£402,352

The notes on pages 14 to 23 form part of the financial statements.

The financial statements were approved by the Board, and authorized for issue, on 15 February 2022 and signed on its behalf by:

Peter Standfield Trustee and Chair

Trevor Robinson Trustee and Treasurer

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KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 AUGUST 2021

1. Accounting Policies

Charity Information

Kielder Observatory Astronomical Society is a Charitable Incorporated Organisation. The registered office is Unit C, Bewick, Prestwick Park, Prestwick, Newcastle upon Tyne, NE20 9SJ.

The charity is a public benefit entity.

Basis of Accounting

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 – 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Statement of Recommended Practice (Charities SORP FRS 102) "Accounting and Reporting by Charities" and the Charities Act 2011.

The financial statements have been prepared on the historical cost basis, modified to include certain financial instruments at fair value.

Advantage has been taken of the provisions in the SORP for Charities applying FRS 102 Update Bulletin 1 not to prepare a statement of cashflows.

The financial statements are prepared in sterling, which is the functional currency of the charity.

Income

All income, including grant income, is included in the Statement of Financial Activities (SOFA), net of VAT, 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.

Such income is only deferred when the donor or funder has specified that the grant or donation can only be used in future accounting periods or where the donor or funder has imposed conditions which must be met before the charity has unconditional entitlement.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

Income from Investments

Interest receivable on fixed interest securities and bank deposits is included on an accruals basis.

Expenditure

All expenditure is accounted for on an accruals basis and is recognised when a liability is incurred.

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KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 AUGUST 2021

1. Accounting Policies (Cont.)

Expenditure (Cont.)

Irrecoverable VAT

All resources expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Operating Leases

The charity classifies the lease of certain printing equipment as operating leases as the title to the equipment remains with the lessor. Rental charges are charged against income on a straight-line basis over the period of the lease.

Tangible Fixed Assets and Depreciation

Depreciation is provided on the fixed assets at rates calculated to write off the assets over their remaining useful lives as follows:

Office & ICT Equipment – between 3 and 5 years Observatory Equipment – between 5 and 15 years New Observatory – over 25 years

A full year’s depreciation charge is applied in the year of acquisition and no charge is made in the year of disposal.

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).

Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Fund Accounting

The charity has a number of restricted income funds to account for situations in which a funder requires that a grant must be spent on a particular purpose or where funds have been raised for a specific purpose. The aim and use of each restricted fund is set out in Note 18 to the financial statements.

All other funds are considered Unrestricted Funds and are available for use at the discretion of the Trustees in furtherance of the general objects of the charity.

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KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 AUGUST 2021

1. Accounting Policies (Cont.)

Pensions

KOAS contributes to a defined contribution pension scheme. Further details can be found in Note 10.

For the defined contribution scheme, the amount charged to the Statement of Financial Activities in respect of pension costs is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Taxation

KOAS is a registered charity and, as such, is not liable to taxation on its income in the current year.

Foreign Currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the date of the transaction. Exchange differences are taken into account in arriving at the surplus/deficit.

Financial Instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ of FRS102 to all its financial instruments.

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.

2. Income from Investments

Interest on intercompany loan
Interest on cash deposits		 Unrestricted
Funds
Restricted
Funds
2021
2020
£
£
£
£
-
-
-
36
258
-
258
547
£258
£-
£258
£583

The 2020 total of £583 was wholly attributable to Unrestricted Funds.

3. Income from Charitable Activities

Ticket & Event Sales
Merchandising Sales		 Unrestricted
Funds
Restricted
Funds
2021
2020
£
£
£
£
227,462
-
227,462
315,555
27,521
-
27,521
-
£254,983
£-
£254,983
£315,555

The 2020 total of £315,555 was wholly attributable to Unrestricted Funds.

16

DocuSign Envelope ID: 4DB43AF3-A37E-4487-91FE-2F6CF6F24199

KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 AUGUST 2021

4. Income from Grants, Donations & Legacies

Donations - KOSL
Donations & Memberships
Gift Aid
Coronavirus Job Retention
Scheme
Arts Council England
National Lottery Heritage Fund
Joicey Trust
Reece Group
Association for Science &
Discovery Centres
Northumberland Cultural Fund
Northumberland Business Services
North of Tyne Combined Authority
Northumberland County Council
North East Business Innovation
Centre – Social Tech Fund		 Unrestricted
Funds
Restricted
Funds
2021
2020
£
£
£
£
-
-
-
4,080
570
-
570
2,698
72,084
-
72,084
65,781
70,953
-
70,953
67,789
-
14,950
14,950
-
-
23,300
23,300
31,600
-
-
-
4,000
25,000
25,000
-
-
18,250
18,250
-
-
2,000
2,000
-
-
2,500
2,500
-
-
42,575
42,575
76,822
19,003
-
19,003
10,000
-
-
-
10,000
£162,610
£128,575
£291,185
£272,770

Of the 2020 total of £272,770, £114,159 was attributable to Unrestricted Funds and £158,611 to Restricted Funds.

5. Other Income

Management Fees
Other Income		 Unrestricted
Funds
Restricted
Funds
2021
2020
£
£
£
£
-
-
-
7,500
-
-
-
804
£-
£-
£-
£8,304

The 2020 total of £8,304 was wholly attributable to Unrestricted Funds.

6. Expenditure on Raising Funds

Merchandising Costs Unrestricted
Funds
Restricted
Funds
2021
2020
£
£
£
£
18,300
-
18,300
4,121
£18,300
£-
£18,300
£4,121

The 2020 total of £4,121 was wholly attributable to Unrestricted Funds.

17

DocuSign Envelope ID: 4DB43AF3-A37E-4487-91FE-2F6CF6F24199

KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 AUGUST 2021

7. Expenditure on Charitable Activities

Direct Costs
Education Contract Costs
Observatory Hire Costs
Salaries & On Costs
Speakers’ Fees & Event Costs
Staff, Speakers’ and Volunteers’
Expenses
STEM to Stars Project Costs
Support Costs
Loss on Disposal of Fixed Assets
Advertising & Marketing
Bank & Credit Card Charges
Depreciation
Legal & Professional Fees
Motor Expenses & Vehicle Leasing
Other Overhead Costs
Premises & Insurance
Print, Postage & Stationery
Repairs & Maintenance
Telephone, ICT & Website Costs
Governance Costs
Accountancy & Payroll Fees
Trustee Travel & Meeting Costs		 Unrestricted
Funds
Restricted
Funds
2021
2020
£
£
£
£
-
16,498
16,498
7,231
-
-
-
16,593
311,106
62,900
374,006
405,366
4,183
-
4,183
2,143
2,187
-
2,187
3,019
-
5,477
5,477
-
-
-
-
1,201
14,543
-
14,543
11,025
4,725
-
4,725
5,025
10,800
15,197
25,997
26,955
11,382
8,750
20,132
12,811
(89)
-
(89)
2,873
13,135
-
13,135
14,965
51,955
-
51,955
59,482
528
-
528
776
7,078
-
7,078
15,107
10,828
7,500
18,328
16,435
6,729
-
6,729
5,764
626
-
626
2,578
£449,716
£116,322
£566,038
£609,349

Of the 2020 total of £609,349, £457,293 was attributable to Unrestricted Funds and £152,056 to Restricted Funds.

8. Net Income/(Expenditure)

Net income/(expenditure) is stated after charging/(crediting):
Independent Examiner’s Fees
Depreciation of Owned Fixed Assets		 2021
2020
£
£
2,160
2,160
25,997
26,955

18

DocuSign Envelope ID: 4DB43AF3-A37E-4487-91FE-2F6CF6F24199

KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 AUGUST 2021

9. Staff Costs

Gross Salary Costs
Interim Chief Executive Officer Fees
Social Security Costs
Employer’s Pension Contributions –
Defined Contribution Scheme		 2021
2020
£
£
340,204
367,516
-
1,332
27,891
30,027
5,911
6,491
£374,006
£405,366

Of the 2020 total of £405,366, £281,416 was attributable to Unrestricted Funds and £123,950 to Restricted Funds.

The average monthly number of staff employed during the year, was 2021 2020
as follows: No. No.
Education & Learning Programmes 15 14

The number of the above staff expressed as full-time equivalents was 13.6 (2020: 12.9)

No employees received remuneration in excess of £60,000 in the year.

In the year to 31 August 2020, £1,332 was paid to a company controlled by Trustee Trevor Robinson as fees for Mr Robinson for the first week of September, to facilitate handover to the incoming permanent CEO. No sums were outstanding at 31 August 2020.

In the year to 31 August 2020, a further £1,200 was paid to a company controlled by Trustee Trevor Robinson as fees for HR services (not carried out by Mr Robinson). The contract award was subject to a full tendering exercise and represented the best value for money of the quotations received. No sums were outstanding at 31 August 2020.

All payments to Trustees were approved unanimously by the Board of Trustees, without involvement of the individuals concerned, using procedures that complied with all relevant requirements of the Charities Act 2011.

No other remuneration was paid to or waived by Trustees/Directors in the year (2020: £Nil).

£283 (2020: £2,234) was reimbursed to 3 (2020: 4) Trustees in respect of out-of-pocket expenses incurred in carrying out their duties.

19

DocuSign Envelope ID: 4DB43AF3-A37E-4487-91FE-2F6CF6F24199

KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 AUGUST 2021

10. Pension Scheme

Pension benefits are provided through a Group Personal Pension Scheme, which is a defined contribution scheme. The assets of the scheme are held separately from those of the charity in a separately administered fund. KOAS makes an employer's contribution of 3% of pensionable pay, provided that the employee makes a minimum contribution of 5%.

Employer’s contributions totalling £5,911 (2020: £6,491) were paid during the year into the defined contribution pension scheme operated by KOAS.

These amounts are paid over to the scheme on a monthly basis.

£1,114 in pension contributions were outstanding at 31 August 2021 (2020: £2,337).

11. Tangible Fixed Assets

12.

Cost
At 1 September 2020
Additions
Disposals
At 31 August 2021
Depreciation
At 1 September 2020
Charge for year
Disposals
At 31 August 2021
Net Book Value
At 31 August 2021
At 1 September 2020
Investments		 Leasehold
Improvements
– New
Observatory
Observatory
Equipment
Office &
ICT
Equipment
Total
Fixed
Assets
£
£
£
£
223,169
169,183
12,187
404,539
-
-
-
-
-
-
-
-
223,169
169,183
12,187
404,539
26,722
57,630
8,973
93,325
8,929
15,016
2,052
25,997
-
-
-
-
35,651
72,646
11,025
133,002
£187,518
£96,537
£1,162
£285,217
£196,447
£111,553
£3,214
£311,214
Investments
Investment in Kielder Observatory Services Limited 2021
2020
£
£
10
10
£10
£10

As the value of merchandise sales is well below the small trading exemption limit of £80,000, the charity is currently conducting all trading directly, rather than through its wholly owned subsidiary, Kielder Observatory Services Ltd (KOSL). KOSL remains extant and the Trustees will review its continuing relevance on a regular basis.

20

DocuSign Envelope ID: 4DB43AF3-A37E-4487-91FE-2F6CF6F24199

KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 AUGUST 2021

13.
Stock
Goods for Resale
14.
Debtors
Accrued Income - Gift Aid
Accrued Income - Other
Donation from Kielder Observatory Services Limited
Grant Debtors
Loan - Kielder Observatory Services Limited
Prepayments
Trade Debtors
15.
Creditors - Amounts Falling Due Within One Year
Accruals
Advance Ticket Sales
Bounceback Loan
Income Received in Advance
Other Creditors
PAYE & National Insurance
Pension Scheme Creditor
Trade Creditors
Unredeemed Gift Vouchers
16.
Creditors - Amounts Falling Due After One Year
Bounceback Loan		 2021
2020
£
£
8,666
-
£8,666
£-
2021
2020
£
£
7,558
8,664
5,294
15,707
-
4,080
21,974
32,262
2,337
6,036
1,706
2,335
-
5,000
£38,869
£74,084
2021
2020
£
£
109,016
112,445
169,372
92,273
6,667
-
2,725
3,175
625
-
10,117
8,111
1,114
2,337
16,206
15,299
65,246
71,685
£381,088
£305,325
2021
2020
£
£
43,333
-
£43,333
£-

The Bounceback Loan is repayable over 5 years, with an interest rate of 2.5% applicable after the first year.

21

DocuSign Envelope ID: 4DB43AF3-A37E-4487-91FE-2F6CF6F24199

KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 AUGUST 2021

17. Analysis of Net Assets between Funds

Unrestricted Unrestricted Restricted 2021 2020
Funds Funds
£ £ £ £
Fixed Assets 48,888 236,339 285,227 311,224
Stock 8,666 - 8,666 -
Debtors 16,895 21,974 38,869 74,084
Cash at Bank and In Hand 435,784 20,315 456,099 322,369
Creditors – Due Within 1 Year (372,338) (8,750) (381,088) (305,325)
Creditors – Due After 1 Year (43,333) - (43,333) -
£94,562 £269,878 £364,440 £402,352
18. Analysis of Charitable Funds
Fund at 1 Incoming Resources Fund at 31
April 2020 Resources Expended August
for Year for Year 2021
£ £ £ £
Movement on Unrestricted Funds
Unrestricted General Fund 144,727 417,851 (468,016) 94,562
Movement on Restricted Funds
Arts Council England - 14,950 - 14,950
Association for Science & Discovery
Centres		 - 18,250 (8,750) 9,500
Joicey Trust 4,000 - - 4,000
National Lottery Heritage Fund - 23,300 (23,300) -
New Observatory Fund 228,632 - (12,698) 215,934
North East Business Innovation Centre –
Social Tech Fund		 5,000 - (5,000) -
North of Tyne Combined Authority 19,993 42,575 (45,074) 17,494
Northumberland Business Services - 2,500 (2,500) -
Northumberland Cultural Fund - 2,000 (2,000) -
Reece Group 25,000 (17,000) 8,000
Total Restricted Funds 257,625 128,575 (116,322) 269,878
Total Funds £402,352 £546,426 £(584,338) £364,440

22

DocuSign Envelope ID: 4DB43AF3-A37E-4487-91FE-2F6CF6F24199

KIELDER OBSERVATORY ASTRONOMICAL SOCIETY (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 AUGUST 2021

18. Analysis of Charitable Funds

Name of Restricted Fund Description, Nature & Purpose of the Restricted Fund Arts Council England Towards the cost of the Kielder Dark Skies: A Space Odyssey project Association for Science & Towards the cost of the Inspire Digital project Discovery Centres Joicey Trust Towards work with prisons National Lottery Heritage Towards core costs impacted by COVID-19 Fund New Observatory Fund Funding received towards the cost of the new observatory building, which opened in 2018 and is now known as the Gillian Dickinson Astro-imaging Academy North East Business Towards the development of a prototype augmented reality Innovation Centre – Social application Tech Fund North of Tyne Combined Towards the cost of education projects in the North of Tyne Authority area Northumberland Business Towards the cost of a prototype augmented reality application Services Northumberland Cultural Fund Towards the cost of the Escape Velocity project Reece Group Towards the cost of the STEM To Stars project

19. Related Party Transactions

Details of transactions with Trustees are disclosed in Note 9.

There were no other transactions in the year with related parties, such as are required to be disclosed under the Financial Reporting Standard for Smaller Entities (Effective April 2008).

20 Financial Commitments

No material financial commitments have been made in respect of future financial periods.

23