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2021-03-31-accounts

Prism Arts CIO

Registration number: 1159797 Annual Report and Financial Statements

31 March 2021

Prism Arts CIO

Contents

Reference and Administrative Details 1
Trustees' report 3
Trustees' responsibilities 19
Independent examiner's report 20
Statement of financial activities 21
Balance sheet 22
Notes to the financial statements 23

Prism Arts CIO

Reference and Administrative Details

Charity name Prism Arts CIO
Charity registration number 1159797
Principal office The Old Methodist Hall
5 Market Street
CARLISLE
CA3 8QJ
Registered office The Old Methodist Hall
5 Market Street
CARLISLE
CA3 8QJ
Trustees H Stewart, Chair
J Cobbold, Vice-chair
A Fazal, Treasurer
J Rocks (Resigned 3 April 2020)
L Telford
A Lynch
S Ghafoor
Solicitor Burnetts
6 Victoria Place
CARLISLE
CA1 1ES
Accountant Dodd & Co Limited
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

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Prism Arts CIO

Reference and Administrative Details

Bankers

CAF Bank Ltd 25 Kings Avenue Kings Hill WEST MALLING ME19 4JQ

Cumberland Building Society Cumberland House Cooper Way Parkhouse CARLISLE CA3 0JF

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

The financial statements have been prepared in accordance with the accounting policies set out in the accounts and comply with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland.

1. STRUCTURE, GOVERNANCE AND MANAGEMENT

1.1 Governing Document

Prism Arts is a Charitable Incorporated Organisation (CIO). The charity was established by a trust deed dated 10th January 1992 and is governed by its constitution dated 26th March 1992 and addendum dated June 1996. The charity was re-registered as a CIO with the Charity Commission under the charity number 1159797 on 6 January 2015.

1.2 Recruitment/Induction and Training of Trustees

Prism Arts works to ensure that the charity is supported by a board of trustees with expertise, knowledge, and experience. Excellence and inclusivity governance has been embedded as a key priority within Prism Arts Business Plan 2021-2024, with KPIs and Targets designed to support our development in this area.

The Governance and Audit Subgroup met to explore diversifying trustee recruitment and enabling full accessibility to governance and decision-making structures.

Plans to establish a new Advisory Group will ensure that lived experience and knowledge is embedded across recruitment and inclusion planning.

Recruitment: Currently prospective trustees are recommended to the Board, candidates are then followed up by the Chair and Governance and Audit Group. If the candidate remains of interest to Prism Arts, the Chair invites the prospective Trustee to attend a Board meeting as an observer. Once Trustee(s) have met the Chair and attended a Board meeting, and both parties agree, prospective Trustees are invited to become full members of the Board at the following meeting or AGM.

The charity recognises that this is not a sustainable or inclusive recruitment process. Following the revision of our Business Plan we now have a clear plan in place that will be developed over 2021/22. A task and finish group combining trustees, staff and advisors will oversee the process. Trustee recruitment in the future will be operated through a clear inclusive process, including open advertising and some targeted approaches in order to address skills gaps.

Induction: New Trustees receive an induction pack including a copy of the Business Plan, Trustee Registration Form and Diversity Monitoring Form, Constitution, Board Rules, recent board papers, a copy of the Essential Trustee (Charity Commission) and current policies. Trustees are invited to events, exhibitions, and workshops. Trustees are also invited to engage in training opportunities and Away Day sessions.

In 2020/21: No new trustees joined; no trustees stepped down.

Covid-19: Trustee meetings were held via Zoom, with papers circulated via Google Docs.

1.3 Organisational Structure 2020/21

The Board met quarterly (4 meetings). Trustees were responsible for overseeing strategic direction, finance, risk management, safeguarding and policies. The Director reported to Trustees at meetings and continued to be a non-voting member of the Board. The Director set out the in-year operational strategy in response to Covid and business priorities and was responsible for day-to-day management of the charity. Trustees managed oversight of risk management, HR, health and safety, safeguarding and relationships with key funders and stakeholders. The Director was responsible for developing a Prism Arts Business Plan revision including working with the board to develop SMART targets, Key Performance Indicators and finance targets 2020/21.

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

1.4 Risk Management

• Risk was reported quarterly through a Risk register and Director's Report. Areas of risk were highlighted, alongside recommended actions to mitigate risk.

• Our Risk Register captures strategic areas of risk and assesses risk rating. Key risk headings include Governance, Operations, Finance, External and Environmental risk. This document is reviewed quarterly at board meetings.

• Arts Council England measures risk with all NPO funded organisations. Prism Arts was rated as moderate risk.

• All relevant policies and procedures were updated and approved to ensure compliance and safeguarding responsibilities were met. A quarterly meeting and policy approval cycle is followed in order to manage this process.

Key Areas of Risk 2020/21:

  1. Relocation of the charity 2020: Risk resulting from increased core costs. Offset by development of a full cost recovery model.

2. Covid-19: Loss of critical income

• A staffing review reduced overheads by 25% ensuring the charity could continue to meet operational staffing costs.

• Successful crisis fundraising and Government grants offset lost income.

  1. Covid-19: Wellbeing of our participants and core clients. The charity switched to a distributed and digital delivery model and not furloughing key staff, enabled regular contact with participants.

  2. Covid-19: Communication issues: The charity switched to Microsoft 365 and a digital communication model maintaining contact with people and ensuring communication and flow of data throughout the crisis.

  3. Covid-19: Cumbria County Council blocked the relaunch of projects and allocation of Direct Payments funding until all individuals had received best interest assessments led by Social Services. We worked in partnership with the Council to meet required levels of covid security and worked to support each individual to assist with best interest and capacity assessments.

  4. Trustee Recruitment: Lottery investment to support engagement and inclusion alongside a new trustee recruitment process will ensure new trustees are recruited from 2021/22.

1.5 Related Parties

Key Partners

We work with a number of key strategic partners across our activity, including (but not limited to) the following:

Arts organisations and Museums

Specialist Organisations

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

Local Authorities

Educational Partners

We work with educational partners including schools, colleges and universities as well as those that specialise in supporting children with special educational needs, to engage new participants for our regular programmes and to shape the design of future activity in line with the needs of young people.

Networks

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

2. FINANCIAL REVIEW

2.1 Investment Policy

Prism Arts invests funds (restricted and unrestricted) to meet charitable objects.

The Trustees have the power to invest in such assets as they see fit, in line with the charitable objects and a responsibility to due care and diligence.

2.2 Reserves Policy

Reviewed and approved April 2020.

Prism Arts reserves consist of that part of its unrestricted funds that is freely available to spend on any of the charity’s purposes. They are held to help the charity operate effectively.

Prism Arts will hold reserves equal to between 3 and 6 months of its expected expenditure in a year as shown in the Budget and by quarterly financial reports. These reserves are intended to:

• Provide at least 3 months of operating expenditure so as to enable the charity to find new sources of income if a source is not renewed or there is an unforeseen decline in an area of income generation, or an expected grant does not become available even though the Trustees had sound expectations that it would. During this time Prism Arts would either attempt to find new funding sources or would close the previously supported activity in an orderly manner.

• Provide the means for the charity to settle any contracts to which it is tied and to pay some or all of its employees their entitiled redundancy depending on whether there are, or are not, sufficient funds for it to continue.

The Trustees monitor the level of reserves quarterly to both ensure that they are maintained in line with the above and to identify reasons for fluctuations which indicate that reserves will exceed or not meet the required level. If reserves during the year are below target or exceed target, the trustees will consider whether this is due to a short-term situation or a longer-term issue. In the case of the latter, action will be taken to replenish or spend reserves.

We will monitor the level of reserves at every board meeting (on a quarterly basis). At present, the reserves are for the most part held in working capital and an investment bank account.

Trustees review the reserve policy annually. A financial position and cash in bank update are provided quarterly at board meetings.

Trustees designated reserves were £67,714, in line with the reserve policy.

2.3 Principal income and funding sources 2020/21 (in order of value)

Arts Council England NPO and Culture Recovery Grants: £71,544

National Lottery Community Fund: £66,235

UK Govt Grants: £38,365

Esmee Fairburn Foundation £37,721

Heritage Lottery Fund (HLF) £20,147

Cumbria County Council £10,000

Children in Need £3,136

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

*Direct Payments income £3,886

Commissions £3,154

Other Grants (Cumbria Community Foundation) £1,500

Donations £662

Fees and tickets £0

*COVID-19: The significant reduction in earned income 2020/21 placed the charity at risk. Crisis funding and government grants enabled the charity to stabilise. Earned income will gradually rebuild as Direct Payments income for Studio Programme workshops return from 2021/22.

3. OBJECTIVES AND ACTIVITIES

Navigating Covid

Restrictions linked to the Covid-19 pandemic led to a cessation of in-person group workshops on the 16th March 2020, with Prism Arts pivoting to a distributed delivery model that saw beneficiaries engaged through online delivery. Participants began to return to workshops via digital and remote working methods from November 2020 with a phased return starting from May 2021 under social distancing measures and with smaller face to face groups blended with digital participation.

Online delivery included Zoom workshops, accessible YouTube and Vimeo videos providing workshops and masterclasses in artistic practice and supporting at-home creativity through resources and guidance packs distributed to participants.

Prism Arts fully engaged participants and families since lockdown 1 in March 2020. Whilst some Prism Arts staff were furloughed, the team remaining were able to ensure essential contact with participants, especially those considered vulnerable.

Some projects, performances and exhibitions were postponed until restrictions are lifted, including the Whale Tales exhibition at Tullie House Museum & Art Gallery, the Dove Cottage Commission and the Youth Theatre.

In November 2020 we launched our new website, allowing us to engage and share digital work and information more effectively. www.prismarts.org.uk

In December 2019, (due to landlord closure of its previous home) Prism Arts moved to new premises: The Central Methodist Hall in the centre of Carlisle. However, in making this move, Prism Arts now pays commercial rent, rather than its previously subsidised arrangement. From this site, Prism Arts continued to deliver its usual programme of workshops and projects until March 2020. Live sessions were relaunched in May 2021

Navigating the Crisis in 3 steps: Prism Arts successfully navigated the Covid pandemic crisis by implementing a strategy focussing on the following 3 areas:

A. We maintained delivery of essential services to adults, children and young people with learning disabilities and autism and older people with underlying health conditions. Introducing them to a new element of artistic practice, helping individuals with learning disabilities to explore new disciplines and use creativity to support wellbeing. Video topics have included Vocal Warm-Ups, Using Paper Maquettes for Visual Arts, and a Performance Character Workshop.

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

B. Increased and deepened support for individuals with disabilities and underlying health conditions (targeting people confined to their homes).

C. Met the immediate challenge of Prism Arts' acute financial difficulties.

Emergency funding enabled us to meet core costs and offset the significant losses that the charity faced because of Covid-19.

To develop the charity following these changes, we strengthened internal practices and processes:

  1. Digital switch. Switching to Microsoft 365 enabled the charity to move away from analogue practices, improving communication practices and data sharing enabled us to streamline and improve data sharing.

  2. Designing impact and evaluation models : We developed a stronger evaluation and impact model both to capture individual impact data and to strengthen our development as a charity through the implementation of an impact framework.

  3. Supporting our team : We developed staff support processes. Supervision, training and development plans and a new appraisal system.

4. PUBLIC BENEFIT: In 2020/21 we met our Charitable Objectives

Our Charitable Objectives (CIO):

• The advancement of education through the medium of creative arts.

• To relieve the needs and promote social inclusion of persons who are socially excluded because of their disability, age or ill health, by the provision of the creative arts with a view to overcoming barriers to inclusion into society.

In determining these objectives the Trustees have paid due regard to the Charity Commission guidance on public benefit.

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

Prism Arts activities and programme continued to span visual and performing arts, working to engage people with additional learning needs, older people and younger people.

In 2020/21 we achieved public benefit through our two main strands of work. During 2020/21 this work was delivered digitally.

We continued to work with four core audiences:

Prism Arts is embedded in the community of Carlisle, reaching audiences in the local area. Our work on the West Coast was sustained over this period. Our digital programme has enabled to sustain engagement and reach.

5. THE TRUSTEE REPORT: ACTIVITY

OUR PROJECTS and PROGRAMMES

STUDIO PROGRAMME:

Our Core Programme engaged young people and adults with learning disability and autism. Covid required us to firstly engage individuals and then develop a more formal remote working offer which focussed on the needs of our people. We used the artform specialisms and practice knowledge of our Lead Artists and Project Managers to shape and develop this work around the needs of our people. Following our staffing restructure and National Lottery Community Fund investment we were able to allocate a clear focused programme of engagement to our new Participant Support Lead. This resource has been transformational enabling engagement of our people with creative opportunities and progression.

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

REMOTE WORKING OFFER:

The digital engagement of the studio programme has developed over the last year. Beginning with paper activities being sent out, we have evolved to video creative activities as these are more accessible. As of the 8th March we have 15 creative activity videos on our Youtube channel, including a virtual exhibition of a recent Tullie House Exhibition. During a period of time we were able to burn some of these videos on DVD and post them out as we found more people had access to playing DVDs than on YouTube. (3 series of DVDs sent out, with at least 4-7 videos on each.)

The activities, on paper and video, have covered a wide variety of themes and creative practice, from performing arts theatre practice to a diverse mix of visual arts activities from watercolour painting techniques to abstract drawing sounds. We have begun to develop these videos to have a through line that builds upon skills learnt from previous videos.

We have posted, as well as delivered in person when able, art materials, some material packs were groundwork packs that included all of the necessary items required to get going with art, whilst some directly related to the video activities that were going out. We also put together bespoke material packs for some participant artists as they requested them. When we were able to hand deliver the packs we had valuable reconnection to all of our participants.

We have also been delivering zoom calls, either larger group ones or smaller contact zooms such as part of the Travelling Stories project. These have enabled direct contact with people and have allowed us to run online sessions that are engaging and exciting.

Our videos can be seen here: https://www.youtube.com/channel/UCl8O6dPfQz9QZ-13H9xhpSA

STUDIO ARTS – Visual Arts sessions in Carlisle: Supported by Direct Payments and NPO investment. Adults with learning disabilities and autism met on a weekly basis to develop visual arts practice and skills.

Over the lockdown 1 and 2 the visual arts strand was maintained through digital channels and posted activity packs that included materials, videos via online and DVD, zoom calls and the Travelling Stories project.

“Despite the challenges we have strived to achieve a high standard of creative practise. Creating activities and videos that built upon what participants have done in the past whilst also challenging them to try new things. We planned out a week by week video activity as a project, so that someone could follow each video to progress and develop on the theme of “movement”. We have aimed to incorporate a variety of mediums including performance into this theme, covering techniques from maquettes, movement drawing, creating stories through physical movement, flip books, visual arts warm ups, perspective drawing to name a few.

During one of the arts and social group zooms we included a high quality visual arts activity including a quick paced portrait drawing session, which made the most of zoom being able to see everyone’s faces! This was led in a way that we would normally do in a physical session, moving at a quick pace to keep everyone engaged and in high spirits”.

Katie Lock Lead Visual Artist

STUDIO THEATRE – Theatre sessions in Carlisle: Supported by Direct Payments and Arts Council of England NPO Investment. Adults with learning disabilities and autism met on a weekly basis to develop visual arts practice and skills.

Switching to a remote working offer, combined with Zoom enabled work to progress around theatre practice and engagement. Over 2020/21 we looked at skills development in mask, character, story and shadow puppetry alongside group and individual session delivery. We worked across the company as a team to develop the right approach for each individual. Theatre was very difficult to deliver outside of a live sessions. Planning to relaunch from April 2021 has been a very positive process but we will be looking at a combination of remote and live practice as a future model going forwards.

STUDIO THEATRE WEST – Funded by Heritage Lottery Funding and Direct Payments.

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

Despite the challenges of COVID 19 particularly being unable to work in school and face to face with participants, we continued to deliver Discovering Kurt Schwitters: Artist and Refugee albeit in a remote model. We kept in touch with our participants during the first lockdown to ensure that they were safe and well and provided opportunities for them to be creative.

From September we delivered poetry workshops remotely with students from Mayfield School, Distington Primary school and Studio West working with 23 people. Studio West members also took part in animation workshops with Haltwhistle Film Project and design of puppets for the final film with Ali McCaw.

We made the decision during the second lockdown to make the final production into a film rather than a live performance as we were restricted by the numbers of participants that we could work with due to CCC’s one service provider rule and restricted access into school. Therefore, we engaged Youth Theatre members to perform in the film, extending their experiences of performance and introducing them to the heritage explored through this project.

DIVERSE ARTIST DEVELOPMENT:

Partnerships: We continued to work remotely with mainstream partners to sustain or engage in new programming opportunities for diverse emerging artists and their work.

www.creepingtoad.blogspot.com/2021/02/honey-for-soul.html

Progression of individuals through our core programmes:

Led by Lead Artists and supported by our Participant Lead: Emerging Diverse Artists development through the Studio Programme (visual arts and theatre) was maintained by developing individual bespoke opportunities to engage alongside small group work, via Zoom or Teams. This work was facilitated by not furloughing key staff and underpinned by digital learning and progression plans.

STEP UP: ESME Fairburn Funded Programme

The Step Up programme exploring progression in partnership with the University of Cumbria was placed on hold. This artist project will be relaunched September 2021.

The Esmee Fairbairn funded project will develop a sustainable model of learning and teaching at The University of Cumbria that supports the progression of artists with disabilities.

It was decided that a more structural and formal approach was needed so that opportunities for Prism emerging artists are embedded in the annual timetable at the Institute of the Arts.

To include

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

focus for workshops and practical activities.

YOUTH THEATRE: Weekly theatre skills workshops for young people.

Our Youth Theatre project was placed on hold initially. Contact continued with individuals and families. However, once we moved to a digital delivery model we were able to continue to work with people. Engagement has been really good, with only 2 members not engaging with us online, due to personal reasons. We have been in touch with these families.

The group have been designing and making their own masks for performance.

We delivered a box of materials to each of our Youth Theatre members, containing all the equipment needed to make their masks. By the end of March each young person will have a mask ready to perform with. Due to the pandemic, changes have been made to the original project. The project will still result in small mask performances, but they will be filmed by the young people and distributed via our social media and YouTube channels. Sessions were delivered via Zoom, in small groups, which have given young people more focus on their character. Some young people benefited hugely from individual support delivered via follow up zoom workshops.

WHALE TALES:

A partnership project between Prism Arts and Tullie House Museum, funded by The National Lottery Heritage Fund. Covid impacted on delivery based work however the project was completed and exhibition launched in May 2021. The exhibition tells the story of Driggsby the Fin Whale as imagined by school children from West Cumbria and is brought to life with puppets, props, animations and a soundscape. The exhibition was developed from a wonderful, illustrated storybook which has been created by Early Years and Key Stage 1 pupils from the west coast, based on their exploration of the life of Driggsby the fin whale, who washed up on Drigg beach and is now on display at the museum. The pupils explored life in our oceans, discovered how Driggsby might have journeyed to Cumbria and learnt why whales have been the inspiration for many myths and legends.

During the 18-month project, the children conducted beach cleans led by Workington Nature Partnership and saw for themselves how much rubbish can be found on our coastline. They left with a greater understanding and appreciation for the environment and are keen to spread the message that, in their own words, “The ocean is not a bin!”

https://www.prismarts.org.uk/driggsby-a-whales-tale/

6. GOVERNANCE

1. Staffing and Governance

COVIID 19: A Staffing Restructure was delivered to ensure future viability of the charity, completed in July 2020 a revised staffing model will enable the charity to place people at the centre of an exciting programme of work.

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

Prism Arts has always had high staffing costs due to its participants’ need for specialist support during workshops. The financial impact of Covid-19 led to an organisational restructure, with staff moving into new roles or leaving the organisation. The new staffing structure is as follows:

Overall, this core team is the equivalent of 5.1 full time staff members.

The team is supported by a board of six trustees, which in its current composition brings together expertise in local issues, charity management and research:

2. Organisational Development Projects 2020/21:

STRENGTHING the CHARITY FOLLOWING September 2020 – March 2021

Between September 2020 and March 21, we delivered an organisational development project to strengthen and stabilise the charity. The charity:

  1. Supported staff following the restructure and created stronger supervision practices

  2. Implemented new digital practices and processes,

  3. Developed an impact framework.

  4. Diversity and Safeguarding

This work has enabled us to develop a much stronger platform from which we will be able to strengthen the charity into the future.

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Trustees' Report for the Year Ended 31 March 2021

Prism Arts CIO

This work resulted in:

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

2. We developed a new Business Plan and SMART Targets. Launched March 2021.

We were particularly keen to embed Arts Council investment principles around ambition, quality, dynamism, diversity and environmental impact.

Working with Cause4 we developed a new Business Plan and Smart Targets. Through this process we developed a new vision and mission:

Vision: Art Without Barriers

Mission: Delivering arts programmes and creating space for excellent work that empowers people with disabilities to drive their own creative journey as artists, leaders and advocates for change

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

3. Environmental Sustainability

We maintain a Sustainability Action Plan and Environmental Policy. We delivered our Sustainability Action Plan. Our Environment Policy is available on our website.

Prism Arts is committed to reducing, and avoiding where possible, operational activities which will negatively impact on the wider environment.

The organisation will:

http://www.prismarts.org.uk/about/policies-accounts/environmental-policy/

4. Equality and Diversity

1. Governance and Equality:

• 2020/21 trustees have explored routes to achieving better Governance and inclusion. As such the charity has embedded a series of actions and key performance indicators within our Business Plan. KPIs will be monitored by Trustees.

http://www.prismarts.org.uk/wp-content/uploads/2012/04/Prism-Arts-Diversity-Policy-2017.pdf

2. Promoting equality of access.

• We ensured that all our work is only ever delivered in accessible venues and spaces.

• We only employ artists and staff with high-level skills in delivery of accessible and inclusive work. We offer training and development to young emerging artists to develop these skills.

• We undertake risk assessments to ensure that all participants have equal engagement both in our own projects but also for opportunities led by partner organisations.

• We actively worked with parents, carers, and social services to ensure all particpants are properly supported to fully re-engage and participate in our projects and programmes of work.

• We implement individual progression and development plans for our core participant groups. Data is stored digitally.

3. Programming

• We applied the Creative Case for Diversity (https://www.artscouncil.org.uk/how-we-make-impact/diversity) throughout our programme. We report progress at our quarterly board meetings.

• Our programme that placed people and inclusion at the very heart of our work. Adapted to meet the challenge of Covid-19 this programme has used digital and remote working practices to ensure participation and engagement throughout the year. Our programme is underpinned by our new vision and mission, our impact framework and business plan.

4. Diveristy and Safeguarding

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Prism Arts CIO

Trustees' Report for the Year Ended 31 March 2021

Approved by the Trustees on 30 July 2021 and signed on their behalf by:

.........................................

H Stewart Trustee

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Prism Arts CIO

Trustees' Responsibilities in relation to the Financial Statements

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards.

The law applicable to charities in England and Wales 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations and the provisions of the trust deed. They are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection fraud and other irregularities.

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Independent Examiner's Report to the Trustees of

Prism Arts CIO

I report on the accounts of the charity for the year ended 31 March 2021, which are set out on pages 21 to 33.

Your attention is to drawn to the fact that the Charity has prepared the financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has since been withdrawn.

We understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

Respective responsibilities of trustees and examiner

The Charity's trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

The charity's gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of The Institute of Chartered Accountants in England and Wales.

It is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

have not been met; or

......................................... Joanne Thomlinson Dodd & Co Limited Chartered Accountants

FIFTEEN Rosehill Montgomery Way Rosehill Estate CARLISLE CA1 2RW

30 July 2021

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Prism Arts CIO

Statement of Financial Activities for the Year Ended 31 March 2021

Note
Income and endowments from:
Donations and legacies
2
Investments
3
Charitable activities
4
Total income
Expenditure on:
Charitable activities
Total expenditure
Net incoming resources before transfers
Transfers
Gross transfers between funds
Net movements in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
206,451
251
6,910		 Restricted
Funds
£
57,355
-
130		 Total Funds
2021
£
263,806
251
7,040		 Total Funds
2020
£
176,136
858
135,974
213,612 57,485 271,097 312,968
174,868 57,485 232,353 302,963
174,868 57,485 232,353 302,963
38,744
-		 -
-		 38,744
-		 10,005
-
38,744
158,650		 -
-		 38,744
158,650		 10,005
148,645
197,394 - 197,394 158,650

The notes on pages 23 to 33 form an integral part of these financial statements.

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Prism Arts CIO

Balance Sheet as at 31 March 2021

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: Amounts falling due within
one year
13
Net current assets
Net assets
The funds of the charity:
Restricted funds
Unrestricted funds
Unrestricted income funds
Total charity funds		 2021
£
£
11,471
2,464
234,790
237,254
(51,331)
185,923
197,394
-
197,394
197,394		 2020
£
£
9,109
10,472
208,655
219,127
(69,586)
149,541
158,650
-
158,650
158,650		 2020
£
£
9,109
10,472
208,655
219,127
(69,586)
149,541
158,650
-
158,650
158,650
158,650
-
158,650
158,650

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Approved by the Board on 30 July 2021 and signed on its behalf by:

.........................................

H Stewart Trustee

The notes on pages 23 to 33 form an integral part of these financial statements.

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Prism Arts CIO

Notes to the Financial Statements for the Year Ended 31 March 2021

1 Accounting policies

Statement of compliance

The accounts (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 (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Basis of preparation

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

These financial statements have been prepared on a going concern basis.

Following the outbreak of the COVID-19 pandemic, the trustees have prepared detailed budgets to take into account the uncertainties surrounding the pandemic. As a result of this review, the trustees remain confident that there are financial resources available to see the charity through until normal operations resume and are satisified that there are no material uncertainties about the charity's ability to continue as a going concern.

Fund accounting policy

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Designated funds are unrestricted funds set aside at the discretion of the trustees for specific purposes.

Further details of each fund are disclosed in note 17.

Income and endowments

Donations and legacies including donations, legacies and grants that provide core funding or are of a general nature are recognised where there is entitlement, probability of receipt and the amount can be measured with sufficient reliability.

Investment income is recognised on a receivable basis.

Income received to fund projects is recognised as the project takes place. Project funding received in advance of a project taking place is deferred in the accounts. The trustees consider that although this may not be strictly in line with the SORP, this departure is necessary in order to ensure that the accounts show a true and fair view of the charity's affairs. Details of deferred income is provided in note 13 of the accounts.

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Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

Expenditure

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Fixed assets

Individual fixed assets costing £100 or more are initially recorded at cost.

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Fixtures, fittings and equipment

15% reducing balance basis

Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Investments

Fixed asset investments are included at market value at the balance sheet date.

Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the statement of the financial activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the statement of financial activities based on the market value at the year end.

Operating leases

Rentals payable under operating leases are charged in the statement of financial activities on a straight line basis over the lease term.

Pensions

The charity operates a defined contribution pension scheme. Contributions are charged in the statement of financial activities as they become payable in accordance with the rules of the scheme.

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Prism Arts CIO

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

2 Donations and legacies

Donations and legacies
Appeals and donations
Grants
UK Government grants
Carlisle City Council
Arts Council England NW
HLF
Other grants
Children In Need
Esme Fairburn Foundation
Big Lottery
Cumbria Chamber
Cumbria County Council
Cumbria Community Foundation		 Unrestricted
Funds
£
662		 Restricted
Funds
£
-		 Total Funds
2021
£
662		 Total Funds
2020
£
1,085
38,365
14,469
71,544
-
-
-
15,000
54,911
-
10,000
1,500		 -
-
-
20,174
-
3,136
22,721
11,324
-
-
-		 38,365
14,469
71,544
20,174
-
3,136
37,721
66,235
-
10,000
1,500		 3,239
10,000
52,692
43,435
449
9,977
10,283
32,984
1,992
10,000
-
205,789 57,355 263,144 175,051
206,451 57,355 263,806 176,136

Of the donations and legacies income in 2020, £76,218 related to unrestricted funds and £96,679 related to restricted funds.

3 Investments

Interest on cash deposits Unrestricted
Funds
£
251		 Restricted
Funds
£
-		 Total Funds
2021
£
251		 Total Funds
2020
£
858

Of the investment income in 2020, all related to unrestricted funds.

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Prism Arts CIO

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

4 Charitable activities

Commissions
Studio programme		 Unrestricted
Funds
£
3,154
3,756
6,910		 Restricted
Funds
£
-
130
130		 Total Funds
2021
£
3,154
3,886
7,040		 Total Funds
2020
£
69,222
66,752
135,974

Of the income from charitable activities in 2020, all related to unrestricted funds.

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Prism Arts CIO

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

5 Total resources expended

Direct costs
Artist fees
Artist materials
Equipment
Employment costs
Venue hire
Publicity costs
Sundry expenses
Travel and subsistence
Support costs
Employment costs
Rent and utilities
Insurance
Telephone and internet
Office expenses
Trade subscriptions
Sundry expenses
Cost of trustee meetings
Accountancy fees
Payroll costs
Independent examiner's fee
Legal and professional fees
Bank charges
Depreciation of plant and
machinery		 Prism Arts
£
10,300
334
754
-
80
2,500
496
58
14,522
88,620
16,267
1,162
2,727
12,304
284
304
25
1,437
2,832
650
-
69
1,653
128,334
142,856		 Commission
£
3,600
-
-
5,422
-
-
-
70
9,092
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,092		 Studio
theatre
£
5,630
1,007
20
73,258
-
-
-
14		 Total
2021
£
19,530
1,341
774
78,680
80
2,500
496
142		 Total
2020
£
54,293
6,909
729
107,949
103
5,400
176
12,572
79,929 103,543 188,131
370
-
-
-
106
-
-
-
-
-
-
-
-
-		 88,990
16,267
1,162
2,727
12,410
284
304
25
1,437
2,832
650
-
69
1,653		 85,943
5,783
1,435
912
13,708
170
50
381
2,433
1,002
650
1,116
60
1,189
476 128,810 114,832
80,405 232,353 302,963

Of the expenditure in 2020, £206,284 related to unrestricted funds and £96,679 related to restricted funds.

6 Governance costs

Cost of trustee meetings
Accountancy fees
Independent examiner's fee
Legal and professional fees		 2021
£
25
1,437
650

2,112		 2020
£

381

2,433

650
-
1,116
4,580

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Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

7 Trustees' remuneration and expenses

No trustees received remuneration or expenses during the year.

8 Net incoming resources

Net incoming resources is stated after charging:

Depreciation of owned assets 2021
£
1,653		 2020
£
1,189

9 Employees' remuneration

The monthly average number of persons (including senior management) employed by the charity during the year was as follows:

Charitable activities
The aggregate payroll costs of these persons were as follows:
Wages and salaries
Social security
Other pension costs
Redundancy costs		 2021
No.
11
2021
£
151,139
4,844
2,617
7,978
166,578		 2020
No.
12
2020
£
177,048
9,225
3,298
-
189,571

No employee received emoluments of more than £60,000 during the year.

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Prism Arts CIO

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

10 Taxation

The registered charity is exempt from taxation on income and gains.

11 Tangible fixed assets

Cost
As at 1 April 2020
Additions
As at 31 March 2021
Depreciation
As at 1 April 2020
Charge for the year
As at 31 March 2021
Net book value
As at 31 March 2021
As at 31 March 2020
Debtors
Trade debtors
Other debtors
Prepayments and accrued income		 2021
£
-
1,374
1,090
2,464		 Fixtures,
fittings and
equipment
£
13,153
4,015
17,168
4,044
1,653
5,697
11,471
9,109
2020
£
7,233
3,239
-
10,472

12 Debtors

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Prism Arts CIO

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

13 Creditors: Amounts falling due within one year

Trade creditors
Accruals and deferred income		 2021
£
3,128
48,203
51,331		 2020
£
956
68,630
69,586

Included within the accruals and deferred income balance are the following grant monies:

Youth Theatre - £6,841 Esmee Fairburn - £26,996 HLF - £9,815

These grant monies have been deferred to 2021/22 as projects either start in 2021/22 or straddle financial years.

See accounting policies on page 8.

14 Operating lease commitments

As at 31 March 2021 the charity had total future minimum lease payments under non-cancellable operating leases as follows:

Within one year Land and Buildings
2021
£
2020
£
15,000
-

15 Pension scheme

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the charity to the scheme and amounted to £2,617 (2020 - £3,298).

There were no outstanding or prepaid contributions at either the beginning or end of the financial year.

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Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

16 Related parties

Controlling entity

The charity is controlled by the trustees.

17 Analysis of funds

Designated Funds
Designated funds
General Funds
General funds
Training
Commissions
Studio Programme
Restricted Funds
Studio Programme
Youth Theatre
Esme Fairburn
Big Lottery		 At 1 April
2020
£
67,714
(8,919)
11,340
27,997
60,518
90,936
-
-
-
-
-
158,650		 Incoming
resources
£
-
206,942
-
2,994
3,676
213,612
20,304
3,136
22,721
11,324
57,485
271,097		 Resources
expended
£
-
(101,138)
(250)
(9,092)
(64,388)
(174,868)
(20,304)
(3,136)
(22,721)
(11,324)
(57,485)
(232,353)		 At 31 March
2021
£
67,714
96,885
11,090
21,899
(194)
129,680
-
-
-
-
-
197,394

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Prism Arts CIO

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

Studio Programme (formerly Studio Theatre) was established in 2012 as a one day course. Studio Theatre has now expanded to become Studio Programme and delivers 4 courses across visual arts and theatre for young people and adults with learning disabilities. The fund was previously fully treated as restricted at the discretion of Prism Arts thereby reducing the flexibility in how any monies can be used. Only the funding and consequential expenditure relating to HLF is deemed restricted.

Youth Theatre: A weekly session for young people with additional needs between the ages of 10 and 19. Youth Theatre provides an exciting opportunity for young people to create, develop and perform their own theatre. Prism Arts uses a variety of art forms including puppetry, music, drama, mask and making and is kindly funded from Children in Need and Carlisle City Council.

Esme Fairburn: A progression project enabling Prism Arts to deepen our work with Studio Programme members enabling a cohort of people individual progression and development as artists. Working in partnership with the University of Cumbria Fine Art Dept. the project will enable emerging artists to access University facilities and expertise. The project will also work with students, developing new diverse collaborations and partnerships. The project will be funded for 2 years ending with a national seminar celebrating our learning and setting out a future programme of work.

Big Lottery: The National Lottery Community Fund: Development Fund enabling Prism Arts to meet the significant challenge of having to relocate the charity. The fund supported critical pastoral work to ensure a smooth relocation process for our participants, support for additional rent, legal and core costs. Essentially the fund also enabled the charity to undertake critical work to revise our Business Plan in light of the relocation, and commissioning essential work to strengthen, sustain and develop.

See the reserves policy on page 5.

Prior period

Designated Funds
Designated funds
General Funds
General funds
Training
Commissions
Studio Programme
Restricted Funds
Studio Programme
Youth Theatre
Esme Fairburn
Big Lottery		 At 1 April
2019
£
-
(5,052)
11,458
70,105
72,134
148,645
-
-
-
-
-
148,645		 Incoming
resources
£
-
68,253
74
80,546
67,416
216,289
43,435
9,977
10,283
32,984
96,679
312,968		 Resources
expended
£
-
(72,120)
(192)
(54,940)
(79,032)
(206,284)
(43,435)
(9,977)
(10,283)
(32,984)
(96,679)
(302,963)		 Transfers
£
67,714
-
-
(67,714)
-
(67,714)
-
-
-
-
-
-		 At 31 March
2020
£
67,714
(8,919)
11,340
27,997
60,518
90,936
-
-
-
-
-
158,650

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Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

18 Net assets by fund

Unrestricted Unrestricted Restricted Total Funds Total Funds
Funds Funds 2021 2020
£ £ £ £
Tangible assets 11,471 - 11,471 9,109
Current assets 193,602 43,652 237,254 219,127
Creditors: Amounts falling due
within one year		 (7,679) (43,652) (51,331) (69,586)
Net assets 197,394 - 197,394 158,650
Prior period
Unrestricted Restricted Total Funds Total Funds
Funds Funds 2020 2019
£ £ £ £
Tangible assets 9,109 - 9,109 7,088
Current assets 169,421 49,706 219,127 189,507
Creditors: Amounts falling due
one year		 within (19,880) (49,706) (69,586) (47,950)
Net assets 158,650 - 158,650 148,645

Page 33