## **Trustees’ Annual Report for the period** **From:** 01 April 2020 **Period start date** **To:** 31 March 2021 **Period end date** ## **Charity name:** KARST ## **Charity registration number:** 1157242 ## **Objectives and Activities** ||SORP reference|| |---|---|---| |Summary of the purposes of
the charity as set out in its
governing document|Para 1.17|1.
To promote art and to advance education in
the arts for the benefit of the public by the
establishment and maintenance of an art
gallery, artist studios and project space.
2.
To establish outreach projects in order to
harness further engagement with our local
communities.
3.
To provide a creative hub for local
contemporary artists to develop their
creative and professional practice.
4.
To illuminate, expand and drive engagement
in contemporary art practice, for the benefit
of the public.
5.
To develop KARST’s profile through curating
an exhibition programme that identifies and
setsinternational agendas and trends within
contemporary art practice.
6.
To operate as an important and essential
example of a contemporary visual arts
initiative principally in the South West of
England.
7.
To exist and operate as an independent,
artist led visual arts project space.
8.
To open and maintain a bank account or
bank accounts in the name of the Charity.
9.
To enter into agreement with artists,
curators, writers, galleries and other creative
contributors.
10. To employ and remunerate such staff as are
necessary for the carrying out of the work of
the Charity. The Charity may employ or
remunerate a director only to the extent it is
permitted to do so by these articles and
provided it complies with the conditions of
article 49(2).
11. Subject to such consents as may be
required by law, to purchase, take on lease
or in exchange, hire or otherwise acquire
any real or personal property and any rights
or privileges which the Charity may think
necessary for the promotion of its objects;
and to construct, maintain and alter any
buildings or erections necessary for the
work of the Charity.
12. To undertake and execute any charitable
trusts which may lawfully be undertaken by
the Charity and may be necessary for its
objectives.
13. Subject to such consents as may be
required bylaw,to sell,let,mortgage,| |||dispose of or turn to account all or any of the
property or assets of the Charity as may be
thought necessary for the promotion of its
objectives. In exercising this power, the
Charity must comply, as appropriate, with
sections 117 and 122 Charities Act 2011.
14. Subject to such consents as may be
required by law, to borrow or raise money
for the purposes of the Charity on such
terms and on such security as may be
thought fit. The Charity must comply as
appropriate, with sections 124 to 126
Charities Act 2011 if it wishes to mortgage
land.
15. To invest the monies of the Charity not
immediately required for its purposes in or
upon such investments, securities or
property as may be thought fit, subject
nevertheless to such conditions (if any) and
such consents (if any) as may for the time
being be imposed or required by law and
subject also as hereinafter provided.
16. To establish and support or aid in the
establishment and support of any charitable
Companies or institutions and to subscribe
or guarantee money for charitable purposes
in any way connected with the purposes of
the Charity or calculated to further its
objectives (to acquire, merge with or to enter
into any partnership or joint venture
arrangement with any other charity).
17. To do all such other lawful things as shall
further any or all of the above objectives.
18. To procure to be written, printed, published
and issued gratuitously or otherwise such
papers, books, pamphlets or other
documents as shall further the above
objectives.
19. To pay out of the funds of the Charity the
costs of forming and registering the Charity
as a charity.| |---|---|---| |Summary of the main
activities in relation to those
purposes for the public
benefit, in particular, the
activities, projects or
services identified in the
accounts.|Para 1.17 and
1.19|The reason for which the Charity is established
is to advance the arts for public benefit by the
promotion and education, in particular but not
exclusively, of contemporary art for the benefit
of the public. It also establishes outreach
projects in order to harness further engagement
with local communities to promote art and to
advance education in the arts for the benefit of
the public by the establishment and
maintenance of an art gallery, artist studios and
project space.
KARST gallery delivers regional, national and
international cutting edge contemporary art
exhibitions and event projects, all offering a
variety of artistic content and audience
engagement. We deliver high profile exhibitions
& work with ambitious, experimental
international artists & curators to programme
challenging, critically engaging work.| |||KARST studio complex provides a creative hub
for local artists who are in varying stages of
their careers, ranging from graduate, emerging,
mid, and established artists, to promote and
develop their creative and professional practice
for a minimum of a six-month period. Studios
provide affordable space for up to 9 local
contemporary visual artists. The studios
operate as a collective of ambitious artists, with
an ethos to share knowledge, skills &
opportunities. Studio artists have worked &
exhibited regionally, nationally & internationally.
KARST talent development programme to
support the vibrant and diverse Contemporary
arts sector in Plymouth.
Graduate Residency – one Bath Spa University
graduate used Studio 2 for five months, with an
exhibition of their work upon conclusion of their
residency in February 2021.
Project Assistant/Intern/Volunteer Programme -
we developed our programmes and
supported/worked with 2 interns and up to 5
volunteers during this period.
Partnerships - KARST collaborates with visiting
exhibition artists/curators to facilitate
one-to-ones and studio visits. KARST
collaborated & worked in partnership with
Plymouth Culture (PC), The Box, Plymouth City
Council (PCC), Plymouth College of Art (PCA),
Plymouth University (PU), City Key Stakeholder
Group to capitalise on cross-city exhibition
programming to ensure increased capacity,
develop audiences, promote cohesion & extend
outreach & engagement.
KARST has a key strategic role to play within
Plymouth & continues to work in partnership
with key stakeholders to collectively deliver a
collaborative & cohesive approach to
developing & maintaining a rich & valued
cultural offer within the City & to support the
Plymouth Culture Strategy & Visual Arts Plan.| |---|---|---| |Statement confirming
whether the trustees have
had regard to the guidance
issued by the Charity
Commission on public
benefit|Para 1.18|The KARST trustees have all had regard to the
guidance issued by the Charity Commission on
public benefit| **Additional information (optional)** You may choose to include further statements where relevant about: SORP reference Para 1.38 Policy on grant making Para 1.38 Policy on social investment including program related investment Para 1.38 Contribution made by volunteers Other ## **Achievements and Performance** SORP reference **COVID 19** KARST closed between Apr 2020 - June 2020. Summary of the main Para 1.20 achievements of the charity, Exhibitions and Events programme had to be identifying the difference the cancelled from Apr 2020 - August 2020. charity’s work has made to the circumstances of its Studios closed from Apr 2020 - June 2020. beneficiaries and any wider Studios opened from June 2020 onwards, where benefits to society as a artists used studios as their main place of work. whole. Due to a combination of lockdown and changes to capital project dates, we were able to programme the gallery in September, during Plymouth Art Weekend. Oct 2020 – Nov 2020 we migrated KARST studios and office to the space under KARST, ready for UCS construction works to start in Dec 2020. **Gallery Programme** - We delivered the following projects: Apr - Sept 2020 - PAW artist co- commission: John Walter - KARST and Visual Arts Plymouth co-commissioned _Lockdown Tarot:_ new fortune-telling performance by John Walter. _Lockdown Tarot_ demonstrates Walter’s approach to using hospitality as a device for engaging audiences in his ideas and images. Tarot readings took place across the city, including KARST, JAR and Sloggett and Sons during PAW. Civic Centre Mural - August 2020 - 0ngoing: KARST was a partner on a large-scale public art project at Civic Plaza, curated by KARST’s Head of Programme, creating a 200m mural in collaboration with the local skateboarding community. Over 70 participants got involved, including the Civic skaters, young people from Prime Skatepark, random passersby and others who heard about it through word of mouth or social media (such as Luke Pollard MP). The project continues to generate substantial social media activity and the audience for this was estimated at 1million Sept 2020-March 2021 (totalling 3m to March 2022). Sept 2020 - No Soap Radio - Street photography exhibition by analogue photography collective of skateboarders associated with Civic Centre mural. DJ and live event where the public could come and skate the mini ramp in the gallery. Bringing in audiences and participants in excess of 1K. Sept 2020 - ‘In The Future We Will’ - PAW panel discussion about Covid, Mayflower and the future, with Ben Borthwick (KARST), Paula Orrell (VASW), Stephanie Pratt (native american art historian), Laura Hopes and Leonie Hampton (Still Moving CIC). Feb 2021, KARST secured £20K British Council Arts Digital Collaboration funding to research the development of a collaborative digital platform that aims to preserve and interpret Highlife’s legacy, reinventing it for a new generation of musicians and audiences in Ghana and internationally. Through the project Mogya Na Nsuo, KARST will work with Julia Greenway, a curator focussing on how digital media influences the aesthetic presentation of gender, economics and environment. Mar 2020 to Apr 2021 (Ongoing) KARST is a founding partner with OUTLANDS, a National Experimental Music Touring network made up of 6 other venues across the UK dedicated to commissioning art and experimental music crossover. Due to the pandemic it was not possible to tour and unknown when live music would return to venues. The partners decided to reposition as a sector support network offering bursaries, and online support including mentoring, networking events, live streams, etc. |||British Art Show 9 (BAS9) - Oct 2022: BAS9 is a
landmark touring exhibition organised every five
years by Hayward Gallery Touring. BAS9 is
curated by Irene Aristizábal and Hammad Nasar,
and presented in partnership with the cities of
Aberdeen, Wolverhampton, Manchester, and
Plymouth where it will be presented at KARST,
The Box, Levinsky Gallery (UoP), and Mirror
(PCA). Planning and development for BAS9,
October 2022, continued.
All KARST exhibitions are free entry and where
possible we aim to ensure our events are
affordable or have concessions, if they are not
free. This enables us to extend and drive
engagement within contemporary art practice
and ensure we are inclusive to all audiences,
including cultural, community, education and
those audiences that might not normally engage
to drive engagement in contemporary art
practice for the benefit of the public.
KARST currently hosts eight artists working
within its studios. The studio complex at KARST
provides a creative hub for local artists to
promote and develop their creative and
professional practice. We were able to add to
the original ethos of the studios by offering:
●
One to one critiques and group talks
with KARST exhibition artists and
curators visiting as part of the exhibition
install and delivery; these were offered
to studio artists and interns.
●
The studio artists are increasingly using
the studio space to share knowledge,
discuss methods of collaboration and
use time to critically engage with each
other’s practice.
●
Graduate residents and interns are
regularly invited to critique their work at
KARST, with studio artists.
We also work in partnership with other UK
studios, which included Backlit Studios
Nottingham: online critiques where three KARST
artists presented to over 20 of Backlit’s crit group
'Share Bears'.

We recognise the location of KARST and the
importance of being an integral part of our
community. Stonehouse is an area of significant
social and economic deprivation so we have
started to develop a new ‘Voices’ learning and
engagement pilot strategic project, to develop a
series of co-designed, co-created and| |---|---|---| |||co-produced, community-led activities shaped
by our creative programme.
We continue to play a key strategic role within
Plymouth and will continue to work in
partnership with key stakeholders to collectively
deliver a collaborative and cohesive approach to
developing and maintaining a rich and valued
cultural offer within the City and to support the
Plymouth Culture Strategy and Visual Arts Plan.
Current partners include Hayward Gallery
Touring, British Art Show 9 National Group and
City Groups, Plymouth Culture (PC), The Box,
Plymouth College to Art, Plymouth University
(PU), Plymouth City Council (PCC), Plymouth
City NPO/Key Stakeholder Group and Plymouth
Cultural Educational Partnership (PCEP).
In 2020, KARST successfully secured the full
£410K Unlocking Creative Space (UCS) capital
funding, through successful applications to Arts
Council England, Foyle Foundation, Garfield
Weston Foundation, Plymouth City Council, The
Box and ACE Relief Grant Funding.
Phase 1 UCS project construction work started
in December 2020, with scheduled completion,
June 2021. We worked with LHC architects and
Ward Williams Associates (Project Manager) to
deliver against our original aims, including:
●
installation of eco-efficient heating,
●
installed disabled access platform
lift,
●
fully accessible & DDA compliant
WC & facilities,
●
reconfiguration and refurbishment of
studios, office and communal areas
and accessible entry points,
●
new entrances to the building, huge
glass public entrance,
●
new double glazed windows and
external doors and entrances.
Completed construction works will enable us to
operate as a fully-functioning, physically
accessible, secure, welcoming and
environmentally-responsible cultural space.
Creating conditions that will retain and attract
the highest level studio artists, increase
commissioning opportunities, increase audience
numbers and participation opportunities,
increase income generated opportunities,
enhance our profile and attract private and
corporate investors.
UCS construction works up to 31st March 2021
were beingdelivered on-time and within budget.| |---|---|---| ## **Additional information (optional)** You may choose to include further statements where relevant about: |||| |---|---|---| |Achievements against
objectives set|Para 1.41|| |Performance of fundraising
activities against objectives
set|Para 1.41|| |Investment performance
against objectives|Para 1.41|| |Other||| |||| ## **Financial Review** |**Financial Review**||| |---|---|---| |Review of the charity’s
financial position at the end
of the period|Para 1.21|The Charity is in a good financial position. We
have secured Funding from Arts Council
England National Portfolio Organisation grants
20218-2023. This ensures the charity has
operational funds to continue to operate
securely for the foreseeable future.| |Statement explaining the
policy for holding reserves
stating why they are held|Para 1.22|
As of the 1 Apr 2020 we held zero reserves. It is
company policy to maintain sufficient funds to
deliver the current programme of work.| |
Amount of reservesheld|Para 1.22|None.| |Reasons for holding zero
reserves|Para 1.22|We forecast a modest profit in the coming years
prior to COVID and our intention was to begin to
build reserves from this surplus.| |Details of fund materially in
deficit|Para 1.24|None of the charity's funds at the end of the
financialyear were in deficit.| |Explanation of any
uncertainties about the
charity continuing as a going
concern|Para 1.23|There are no uncertainties about the charity
moving forward as a going concern.| |**Additional information (optional)**
You may choose to include further statements where relevant about:||| |
The charity’s principal
sources of funds (including
any fundraising)|
Para 1.47|
Arts Council England National Portfolio
Organisation funding.
Earned Income: Studio hire and gallery hire.
Other grant income: Creative Programme and
Capital Development.| |Investment policy and
objectives including any
social investment policy
adopted|Para 1.46|| |A description of the principal
risks facing the charity|Para 1.46|| |Other||| ## **Structure, Governance and Management** |Description of charity’s
trusts:||| |---|---|---| |Type of governing document
(trust deed, royal charter)|Para 1.25|Memorandum & Articles of Association of
KARST| |How is the charity
constituted?
(e.g unincorporated
association, CIO)|Para 1.25|Charity Limited by Guarantee| |
Trustee selection methods
including details of any
constitutional provisions e.g.
election to post or name of
any person or body entitled
to appoint one or more
trustees|Para 1.25|Appointed - Executive Director and Trustees will
look to appoint a new trustee when a specific
area of expertise is required and/or when a
person is recognised to be of significant benefit
to KARST and its core aims and objectives.
Executive Director and Trustees will make a
named recommendation at programmed
KARST Board Meetings.| ## **Additional information (optional)** You may choose to include further statements where relevant about: Policies and procedures adopted for the induction Para 1.51 and training of trustees The charity’s organisational structure and any wider Para 1.51 network with which the charity works Relationship with any related Para 1.51 parties Other ## **Reference and Administrative details** |Charity name|KARST| |---|---| |
Other name the charity uses|| |Registered charity number|1157242| |
Charity’s principal address|22 George Place, Plymouth PL1 3NY| ||| **Names of the charity trustees who manage the charity** |1
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20|**Trustee name**|**Office (if any)**|**Dates acted if not for**
**whole year**
**f person (or body)**
**entitled to appoint**
**trustee (ifany)**| |---|---|---|---| ||Nicholas Buckland||| ||Mark Cotton||| ||MandyPearce||| ||ChristyJohnson||| ||Alan Qualtrough||| ||||| ||||| ||||| ||||| ||||| ||||| ||||| ||||| ||||| ||||| ||||| ||||| ||||| ||||| ||||| – Corporate trustees names of the directors at the date the report was approved **Director name** Donna Howard Name of trustees holding title to property belonging to the charity **Trustee name Dates acted if not for whole year** ## **Funds held as custodian trustees on behalf of others** |Description of the assets
held in this capacity|N/A| |---|---| |Name and objects of the
charity on whose behalf the
assets are held and how this
falls within the custodian
charity’s objects|N/A| |Details of arrangements for
safe custody and
segregation of such assets
from the charity’s own assets|N/A| ## **Additional information (optional)** ## **Names and addresses of advisers (Optional information)** |**Type of adviser**
**Name**
**Address**|**Type of adviser**
**Name**
**Address**|**Type of adviser**
**Name**
**Address**| |---|---|---| |
**Accountancy**|Lee
Hardacre|Precise Accountants Ltd, Soldiers Quarters 3, Crownhill
Fort, Crownhill, Plymouth, Devon, PL6 6HA| |**Banking and**
**Finance**|Branch
Manager|Natwest, 14 Old Town Street, Plymouth, PL11DG| ## **Name of chief executive or names of senior staff members (Optional information)** ## **Exemptions from disclosure** Reason for non-disclosure of key personnel details ## **Other optional information** ## **Declarations** **The trustees declare that they have approved the trustees’ report above.** **Signed on behalf of the charity’s trustees** **Signature(s) Full name(s)** Nicholas Brian Buckland OBE **Position (eg Secretary,** Chair **Chair, etc) Date** 26th February 2021 KARST Charity No. 1157242 Company No. 08653315 Trustees, Report and Unaudlted Accounts 31 March 2021 I(ARST Contents Pages Trustees, Annual Report Independent Examiner's Report Statement of Flnancial Activities Summary Income and Expenditure Account Balance Sheet Notes to the Accounts 7t014 Detailed Statement of Financial Activities 15to16 Page I KARST Trustees Annual Report The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006. Present their report with the unaudited financlal statements of the charity for the year ended 31 March 2021. REFERENCE AND ADMINISTRATIVE DEfAIIS Company No. 08653315 Charity No. 1157242 Registered Offlce 22 George Place Stonehouse Plymouth Devon PLI 3NY Directors and Trustees The Dirertors of the charitable company are its Trustees for the purposes of charity law. The followlng Directors and Trustee5 served during the year: N.B. Buckland M.A. Cotton K. Harrison C.A. Johnson A.J. Precious A. Qualtrough IResigned 6 April 20201 (Resigned 8 September 20211 Accountants Precise Accountants Ltd Unit 6, 8rookland5 Budshead Road Plymouth Devon PL6 5XR The Trustees are responsible for keeplng proper accountlng record5 that dSsclose with reasonable accuracy at any time the financial posltSon of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are olso ie5ponslble for safeguarding the assets of the charity and hence taking reasonable steps for the preventlon and detection of fraud and other irregularitie5. The above report ha5 been prepared in accordance with the provislons appllcable to companies subject to the small companies feglme as set out in Port 15 of the Companies Art 2006 and In accordance with the Charities SORP IFRS 1021. Sign n behalf of the board uckland Trus ee 27 January 2022 Page 2 KARST Independent Examlners Report Independent Examlner's Report to the trustees of KARST I report to the charity trustees on my examination of the accounts of KARST for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes. Responslbllltles and basls of report As the trustees of the charity land also its directors for the purposes of company lawl you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 20061'the 2006 Act. Having satisfied myself that the account5 of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 20111'the 2011 Act'l. In carrying out my examination I have followed the Directions given by the Charity Commisslon under section 1451511bl of the 2011 Act. Independent examlner's statement I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that: accounting records were not kept in accordance with section 386 of the 21YJ6 Art; or the accounts do not accord with those recortls,- or the accounts do not comply with the accounting requirements under section 396 of the 2￿6 Att other than any requirement that the accounts give a 'true and fairf view which is not a matter considered as part of an Independent examination,. or • the account5 have not been prepared in accordance wrth the Charities SORP IFRS 1021. I have no concerns and have come across no other matters in connection wlth the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Mr Lee James Hardacre FCCA IAs50ciation of Chartered Certified Accountants) Precise Accountants Ltd Unit 6, Brooklands Budshead Road Plymouth Devon PL6 5XR 27January 2022 Page 3 KARST Statement of Flnanclal Actlvltle5 for the year ended 31 March 2021 Unrestrlrted funds Total funds Total funds 2021 2020 2021 Notes Incorne and endowments from: Donations and legacies Charitable attivities Other trading activitie5 Investments 217,423 1,090 11,7601 30 217,423 1,090 11,7601 30 140,000 4,842 25,041 Total 216.783 216,783 169,885 Expendlture on: Charitable artivities Other 25,437 128,733 25,437 128,733 69.361 100,435 Total 154,170 154,170 169,796 Net gains on Investments Net Income io 62.613 62,613 89 Transfers between funds Net income before other 8•lnsl{lossesl 62,613 62,613 89 Other Balns and losses Net movement In fund5 62,613 62,613 89 Retonclllatlon of funds: Total funds brought forward 2,5B8 2,588 2,499 Total tund5 carrled forward 65,201 65,201 2,588 Page 4 KARST Summary Incorne and Expendlture Account for the year ended 31 March 2021 20ZI 2020 Income 216.753 169.883 Interest and investment Income 30 Gross Income for the year Expenditure 216,783 169,885 143,045 169,214 Depreciation and charges for Impalrment of fixed assets 11,125 582 Total expendlture for the year Net income before tax for the year 154,170 169,796 62.613 89 Net Income for the year 62,613 89 Page S KARST Balance Sheet at 31 March 2021 Company No. 08653315 Notes 2021 2020 Fixed assets Tangible assets 12 391.221 391,221 1,500 1,500 Current assets Oebtors Cash at bank and in hand 13 21,390 107.641 129,031 1455,051) 1326.0201 65,201 1,608 82,900 84,508 183,4201 1.088 Credltors: Amount falling due within one year Net ¢urrent Illabilttie5)lassets Total assets less current liabilities 14 2.588 Net assets excluding pension asset or liability Total net assets 65.201 2,588 65,201 2,588 The funds of the charity Restrlrted fvnd5 Unrestricted funds Designated funds 15 15 65,201 2,588 65,201 2,588 Reserves 15 Total funds 65,201 2,588 These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companles. For the year ended 31 March 2021 the company was entitled to exemption under settion 477 of the Companie5 Act 2006 relatlng to small companles. The members have not requlred the company to obtaln an audlt In accordance with sectlon 476 of the Companles Act 2006. The directors acknowledge thelr responslbllitles for complylng with the requlrements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. Approved by the board on 27January 2022 And signed on its behalf by.. N.B. 8 ckland Trustee 27 January 2022 Page 6 KARST Notes to the Accounts for the year ended 31 March 2021 l Accounting pollcles &75is of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their account5 in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective I January 20151 (Charities SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Change In basls of accountlng or to previou5 accounts There has been no change to the accounting policies Ivaluation rules and method of accountinEI sinte last year and no changes have been made to accounts for previou5 years. Fund accounting Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity. These are unrestricted funds earmarked by the trustees for particular purposes. These are unrestrirted funds which include a revaluation reserve representing the restatement of investment a55ets at their market values. These are available for use subject to restrictions imposed by the donor or through terms of an appeal. Designated funds Revaluation funds Restricted funds Income Recognition of income Income is included in the Ststement of Financial Activities ISOFAI when the charity becornes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability. Income with related Where income ha5 related expenditure the income and related expenditure 15 expenditure reported gross in the SOFA. Donations and legacies Voluntsry Income received by way of grants, donations and glfts Is Included in the the SOFA when receivable and only when the Charity has unconditSonal entitlement to the income. Tax reclaSms on Income from tax reclaims Is included In the SOFA at the same time as the donations and gifts gift/donation to whlch it relates. Donated services These are only Included In income Iwith an equlvalent amount in expenditurel and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material. Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/llosses1 on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gainslllossesl on investment assets This includes any gain or1055 on the sale of investments. Page 7 KARST Notes to the Account5 Expendlture Recognition of expenditLtre Expenditure 15 recognised on an accruals basis. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. Expenditure on These comprise the costs associated with attrarting voluntary income, fundraising raisinE funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable artivities services in the furtherance of its objects, including the making of grants and Eovernance costs. All grant expenditure 15 accounted for on an actual paid basis plus an accrual for grants that have been approved by the trystees at the end of the year but not yet paid. These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees. Costs linked to the strategic management of the Charity, together with a share of other administration costs. These are support costs not allocated to a particular activity. Grants payable Governance costs Other expenditure Taxatlon The charity is exempt from corporation tax on its charitable attivities. Tangible fixed assets and depreclatlon Depreciation is provided at the following annual rates In order to write off each asset over it5 estimated Useful life: Studio Equipment Fixtures, fitting5 and equipment 33% Straight Line 33% Straight Llne Freehold Investment property Investment properties are measured Initially at tost and subsequently at falr value at each balance sheet date and are not depreciated. All 8ains or losses are taken to the Statement of Financial Artivities as thev arise. Stocks Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the Items on the open market. Trade and other debtor5 Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash and cash equNalents Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other 5hort-term highly liquid investments with original maturities of three months or le55 and bank overdrafts. In the statement of financial posttion, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management. Page 8 KARST Notes to the Aciounts Trade and other credltors Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the ch3rity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Research and development Expenditure on research and development is written off in the year in whlch it Is incurred. Forelgn currencles Monetary asset5 and liabilities denominated in currencles other than the functlonal currency of the harity are translated at the rates of exchange prevailin8 at the end of the reporting period. Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred. All exchange differences are are taken into account In arriving at net incomelexpenditure. Leaseil assets Where the charity enters Into a lease whlch entails taking substantially all the risks and rewards of ownership of an asset, the lease Is treated as a flnance lease. Leases whlch do not transfer 5ubstantlally all the risk5 and rewards of ownership to charlty are classified a5 operating leases. Assets held under finance leases are Inltlally reco8nlsed as assets of the chafity at thelr falr value at the Inceptlon of the lease or, if lower, at the present value of the minimum lease payments. The corresponding Ilabillty to the lessor15 Included in the balance sheet date as a finance lease obllgatlon. Lease payments are apportSoned between flnance expenses and reduction of the lease obli8atlon 50 as to 8chieve a constant rate of Interest on the remalnln8 balance of the Ilability. Finance expenses are recognised immediately, unless they are directly attributable to qualifyin8 assets, In which case they are capitalised in accordance wlth the charlty's polScy on borrowing costs. Assets held under flnance leases are depreclated in the same way as owned assets. Operatlng lease payment5 are recoBnlsed as an expense on a 5tral8ht-Ilne basis over the lease term. In the event that lease Incentives are received to enter into operatSng leases, such Incentives are recognlsed as a liability. The aggregate beneflt of Intentlves Is reco8n15ed as a reductlon of rental expense on a straight-line b351s. Penslon costs The charity operates a defined contrSbutlon plan for Its employees. A defined contribution plan is a pension plan under whlch the company pays fixed contributlons Into a separate entity. Once the contributions have been pald the company has no further payments obligations. The contributions are retognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. ReceSpt of donated goods, facllltles and seNlces All donated good5, facilities and services received are reco8nised withSn incoming resources and expenditure at an estimate of the value to the charity. P3ge 9 KARST Notes to the Accounts 2 Cornpany 5tatUS The company is a private company limited by guarantee and consequently does not have share capital. 3 Statement of Financlal Actlvltles- prSor year Unrestricted funds Totsl funds 2020 Z020 Income and endowments from: Donations and legacies Charitable activitie5 Other trading artivities Investments 140,000 4,842 25,041 140,000 4,842 25,041 Total 169.885 169,885 Expenditure on: Charitable attivities 69,361 69,361 100,435 Other 100,435 Total 169,796 169,796 Net Income 89 89 Net Income before other gainsl{lossesl Other gains and losses: Net movement In funds 89 89 89 89 Reconciliation of funds: Total funds carrled fon¥ard 89 89 4 Income from donatlons and legacles Unre5tr5cted Total Total 2021 2020 Grants 142,576 10,754 142,576 10,754 140.000 Capital Grant Digital calibration fund Income 19,782 19,782 Additional grant funding 44,311 217,423 44,311 217,423 140,000 Page 10 KARST Notes to the Accounts 5 Income from charftable actlvltles Unrestrlrted Totsl Total 2021 2020 Philanthropic wving, fundraising and sponsorship Residency 1,692 1,090 1,090 3,150 4,842 1,090 1,090 6 Income from other tradlng artlvltles Unrestrirted Total 2021 Total 2020 Studio Rental 1,990 1.990 8,295 12,596 4,150 25,041 Workshop/Shop Income Other Income 13,7501 11,7601 13,7501 11,7601 7 Income from Investments Unrestrlrted Total Totsl 2021 Z020 Bank Interest re¢elved 30 30 30 30 8 Expendlture on ch•ritsble actlvltles UTrrestrlrted Total 20ZI Total 2020 Expenditure on choritable activities Exhibition costs 6,827 1,745 6,644 6,827 1,745 6,644 23,349 2,038 5,346 1,557 23,342 Event cost5 Marketing Residency Under expenditure Digital calibratlon fund costs Feasibility 9.921 300 9,921 300 13,729 69,361 25,437 25.437 Page 11 KARST Note5 to the Accounts 9 Other expendlture Unrestrlcted Total Total 2021 2020 Employee costs Motor and travel costs 77,361 299 77,361 299 74,551 592 Premises costs Amortisation, depreciation. impairment, profit/loss on disposal of fixed assets General administrative costs 17,414 17,414 15,728 11,125 11.125 582 11,539 11,539 10,995 128,733 2,045 6,937 100,435 Legal and professional costs 10,995 128,733 10 Net income before transfer5 2021 2020 This is stated after charging: Depreciation of owned fixed assets 11 Staff costs Salaries and wages Social security costs Pension costs 11.125 582 75.482 706 1,173 77,361 72,705 888 958 74,551 No employee recelved emoluments In excess of £60.01)0. 12 Tanglble flxed assets Land and bulldlngs Studlo Equlpment Flxtures, fitting5 and equlpment TFA3 Total Cost or ievaluatlon At l April 2020 Additions At 31 Marth 2021 Oepreciation and impairment At l April 2020 Depreciation charge for the year At 31 March 2021 1,500 400,846 402,346 14,608 6.176 22,284 400,846 423,130 14,608 6.176 14,608 6,176 20,784 11,125 11,125 11,125 14,608 6,176 31,909 Net book values At 31 March 2021 At 31 March 2020 391,221 1,500 391,221 1,500 Page 12 KARST Notes to the Accounts 13 Debtors 2021 2020 Trade debtors 21,390 21,390 1,608 1,608 14 Creditors. amoLtnts falling due within one year 2021 2020 Trade creditors Other taxes and social security Other creditors Accruals and deferred income 67,194 1,140 14,262 373,595 455,051 4,524 77,757 83,420 15 Movement In fvnd5 Incomin resources {including other At l April gain511055es 2020 At31 March 2021 Resources expended Restrlcted tund5: Unrestrlcted funds: Deslgnated funds: Designated Funds Total 2.588 216,783 1154,1701 1154,1701 65,201 2,588 216,783 65,201 Revaluatlon Reserves: Total funds 2.588 216,783 1154,1701 65,201 Purposes and restrirtion5 in relation to the funds: Designated fund5'. Designated Funds 16 Analysls of net assets between funds Llnrestrlrted funds Total Fixed assets Net current assets 391.221 391,221 1326,0201 1326,0201 65,201 65,201 Page 13 KARST Notes to the Accounts 17 Reconciliatlon of net debt At31 March 2021 At l April 2020 Cash flows C05h and cash equivalents 82,900 82,900 24,741 24.741 107,641 107,641 Net debt 82,900 24,741 107,641 18 Commitments Operating leose commltments Annual commitments under non-cancellable operating leases are as follows.. 2021 Land and bulldings 2021 2020 Land and buildings 2020 Other Other Operating leases with expiry date- Penslon commltments 2021 2020 The pension cost charge to the company amounted to- 1,173 958 19 Related party dlsclosures Controlllng porty Page 14 KARST Detalled Statement of Flnanclal Actlvltles for the year ended 31 March 2021 Unrestricted funds 2021 Total funds 2021 Total funds 2020 Income and endowments from: Donations and legacles Grarbt5 142.576 10,754 19,782 44,311 217.423 142,576 10,754 19,782 44,311 217,423 140.000 Capital Grant Digital calibration fund income Additional grant funding 140,000 Charitable artivities Philanthropic giving, fundraising and sponsorship Residency 1,090 1.090 1,692 3,150 4,842 1,090 1,090 Other trading artivities studio Rental Workshop/Shop Income Other Income 1,990 1,990 8.295 12.596 4,150 25,041 13,7501 11,7601 13,7501 11,7601 Investments Bank interest received 30 30 30 30 Total Income and endowments 216.783 216.783 169,885 Expendlture on: Charitable activities Exhibition costs 6,827 1,745 6,644 6,827 1,745 6,644 23,349 2,038 5,346 1,557 23,342 Event costs Marketing Residency Under expenditure Digital calibration fund costs Feasibility 9,921 300 9,921 300 13,729 69,361 25,437 25,437 Total of expenditure on charitable actlvltles 25,437 25,437 69,361 Employee costs Salarieslw3ges Employer's NIC Penslon costs 75,482 706 75,482 706 72,705 888 1,173 77,361 1,173 77.361 958 74.551 Motor and travel costs Page 15 KARST Detalled Statement of Flnanclal Artlvltles Travel and subslstence 299 299 299 592 592 299 Premises costs Rent 5,700 2,879 3,513 5.700 2.879 3.513 3,119 2,016 Rates Premises insurances Premises repairs and maintenance 1,012 Utilities and general Insurance 5.322 17,414 5.322 17.414 9,581 15,728 General administratlve costs, including depreciation and amortisation Depreciation of land and buildings Depreciation of Studio Equipment Depreciation of Fixtures. fittings and equipment Software. IT sUPPOrt and related costs 11.125 11.125 468 114 9,092 9.092 1,790 Sundry expenses Telephone, fax and broadband 1,320 1,127 22,664 1,320 1.127 22.664 255 2,627 Legal and professional costs Atcountancy and bookkeeping Consultancy fees Other legal and professional costs 2,972 6,945 2,972 6,945 3,009 3,146 1,078 1.078 782 10,995 10.995 6,937 Total of expendlture of other costs Total expendltuie 128,733 128,733 100,435 154.170 154.170 169.796 Net gains on Investments Net Income 62,613 62.613 89 Net Income before other gainslllossesl Other Gains 62,613 62.613 89 Net movement In funds 62,613 62,613 89 ReconcSllatlon olfunds: Total funds brought forward 2,588 2.588 2,499 Totsl funds carried forward 65.201 65.201 2,588 Page 16 **KARST Independent Examiners Report** ## **Independent Examiner's Report to the trustees of KARST** I report to the charity trustees on my examination of the accounts of KARST for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes. ## **Responsibilities and basis of report** As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act. Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of 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** I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that: - accounting records were not kept in accordance with section 386 of the 2006 Act ; or - the accounts do not accord with those records; or - the accounts do not comply with the accounting requirements under section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or - the accounts have not been prepared in accordance with the Charities SORP (FRS 102). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Mr Lee James Hardacre FCCA (Association of Chartered Certified Accountants) Precise Accountants Ltd Unit 6, Brooklands Budshead Road Plymouth Devon PL6 5XR 27 January 2022 Page 3