**Charity registration number 1160651** **Company registration number 03284438 (England and Wales)** ## **DESIGN SOUTH EAST LIMITED** **Formerly known as The North Kent Architecture Centre Limited ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** ## **DESIGN SOUTH EAST LIMITED** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|H Satchwell|| |---|---|---| ||B Condon|| ||B Rogers|| ||S Willcox|| ||M Cook|| ||J Martin|| ||A Von Bradsky|| ||R Nazzari|| ||L Archer|| ||J Stockwell|(Appointed 12 July 2023)| |**Secretary**|Mr C A Lamb|| |**Charity number**|1160651|| |**Company number**|03284438|| |**Registered office**|70 Cowcross Street|| ||London|| ||EC1M 6EJ|| |**Independent examiner**|Crossley Financial Accounting|| ||Star House|| ||Star Hill|| ||Rochester|| ||Kent|| ||ME1 1UX|| |**Bankers**|Barclays PLC|| ||62 Earl Street|| ||Maidstone|| ||Kent|| ||ME14 1PS|| ## **DESIGN SOUTH EAST LIMITED** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 6| |Independent examiner's report|7| |Statement of financial activities|8| |Statement of financial position|9| |Statement of cash flows|10| |Notes to the financial statements|11 - 19| ## **DESIGN SOUTH EAST LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2023**_ The trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of The North Kent Architecture Centre Limited (the company) for the year ended 31 March 2023. The Trustees confirm that the Annual report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). The company trades under the name Design South East. ## **Constitution** Design South East (name changed from The North Kent Architecture Centre on 01.04.22) is a Company Limited by Guarantee governed by its Memorandum and Articles of Association dated 18 December 2014. It is registered as a charity with the Charity Commission. ## **Method of appointment or election of trustees** Directors are either 'A' or 'B' directors. 'A' directors are those appointed by 'A' members. 'A' members are currently: - Medway Council - University of Greenwich - Gravesham Borough Council Each 'A' member may nominate one 'A' director, carried out in accordance with our Articles of Association. A 'B' member is a member admitted as a 'B' member in accordance with the Articles of Association. A 'B' director is any director appointed as a 'B' member. Anyone wishing to become a B director must make an application for membership and an appointment is subject to approval by a majority of the directors. When considering applications the Board has regard to the requirement for any specialist skills on the board and geographic representation, in addition to the understanding of and alignment with the objects of the company. ## **Policies adopted for the induction and training of trustees** New trustees undergo an orientation session to brief them on their legal obligations under charity and company law, the Charity Commission guidance on public benefit; and to inform them of the content of the memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During induction they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. - 1 - ## **DESIGN SOUTH EAST LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_ ## **Organisational structure and decision making** The board administers the charity. The board meets quarterly, or more frequently, if necessary. There is a finance and audit subcommittee which also meets quarterly, or more frequently if required. A Chief Executive whose title is Director (though he is not a director for legal purposes) is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and programme related activity. ## Our objects are: 1. To advance public education and to develop and improve the skills and capabilities of people of all ages by encouraging the understanding of the arts, architecture and the built environment; 1. To promote social inclusion for the public benefit in particular those that are, or feel they are, excluded from society by helping local people to participate in the improvement of the quality of their built environment (being "excluded" from society, or part of society, as a result of being a member of a socially and economically deprived community or on the grounds of their social and economic position); 1. To promote sustainable development for public benefit in particular best practice in the field of sustainable development. Sustainable development means "development which meets the needs of the present without compromising the ability of future generations to meet their own needs"; 1. To advance the education of the public in urban and rural regeneration by promoting best practice in the field of regeneration in areas of social and economic deprivation for the public benefit; 1. To help young people advance in life by developing their skills in the arts, architecture and the built environment; and 1. To further such other charitable purposes (charitable under English law) as the Directors see fit from time to time primarily, but not exclusively in the south of England. - 2 - ## **DESIGN SOUTH EAST LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_ ## **Review of activities** Throughout the year we have focused on education in urban and rural regeneration by promoting best practice, the promotion of sustainable development and the development of people's skills and capabilities to deliver sustainable development. We continued with our return to in-person delivery where it was more effective. However, where there was no advantage to in-person delivery, we delivered the activity online, enabling us to be more sustainable and often to reach a more diverse audience. Though design review remained our dominant activity and means of promoting sustainable development, we have sought to ensure that we contribute to the education of everyone involved in the process. As one council officer said: "Design South East’s work has been very valuable in improving the quality of schemes and has improved officers understanding of what constitutes ‘exceptional design’. In all reviews to date, the added value is from positive changes arising from DRP recommendations as well as suppressing poor quality design, which is considered to represent positive planning for our future." We also received positive feedback in terms of how our work benefits local authority elected members and communities. Another council officer said: “In my opinion, the design process for this project, which involved the community and councillors, is a good example of what can be achieved through collaboration.” ## **Increased emphasis on promoting zero carbon development.** We continued to increase the emphasis on sustainable development in our design review delivery and made this a dominant factor in how we assessed the quality of development proposals. This was particularly important in relation to larger urban projects, where we consistently pressed for a coherent sustainability strategy to underpin design development, and for specific measures like the reuse of built form and inclusion of sustainable urban drainage. It was also vitally important on the major rural sites that we reviewed, where again we pushed for developments based on a sustainability strategy and strongly promoted multi-modal travel, sustainable drainage and coherent energy strategies. Other ways in which we promoted net zero carbon development included the development of a Strategic Sites Design Review Panel to support North Hertfordshire District Council, a Dover Design Review Panel to support Dover District Council and a Design Review Panel to support Westminster City Council. One of the key areas of focus for the Design Review Panel for Westminster City Council will be the delivery of its zero carbon commitments. For Oxford City Council we delivered sustainability training for officers. As part of our Kent Design Learning Programme, our masterclasses brought together practitioners across Kent and the south east, learning from specialists on Integrating Design and Sustainability in Planning, Water Sensitive Urban Design, Landscape Transformation and Climate Change, and Sustainable and Low Carbon Design Principles. These activities not only promoted sustainable development, but also helped to build public and private sector capabilities by promoting best practice. ## **Activities to influence policies and projects and promote social inclusion and engagement.** We continued to engage earlier in the planning process at the visioning, strategy, policy- or plan-making stages of projects through support with design coding, co-design, and community engagement. This enabled us to embed the principles of sustainable development at the formative stage of projects and extended to advising at the policy and strategic framework scale on major sites. We continued to increase the range of activities we delivered to promote social inclusion, improve the skills and capabilities of people, and advance the engagement of the public in regeneration. This work focused on engaging communities in shaping their neighborhoods. We continued to deliver the engagement work to enable local communities to help to shape the Royal Borough of Kingston’s Town Centre Vision. The value of this has been recognised by the council’s Communication and Engagement staff who said: “It has been great to have Design South East independently facilitate and support our Citizens' Panel, which is creating a community-led vision for the Kingston town centre area. They have been a helpful sounding board before and after the workshops to review the content and structure and discuss the outcomes. During the workshop they have helped encourage full engagement from all attendees and brought an independent perspective, allowing us to better resolve alternative viewpoints among panel members and keep meetings on track. After the workshops they have helped us to capture the discussions and present this in detailed reports which we can share.” We delivered activity to embed Building for a Healthy Life principles into the end-to-end development process for major sites in partnership with organisations that share our values and purpose across England. - 3 - ## **DESIGN SOUTH EAST LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_ ## **Going Concern** After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. ## **Financial review** It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to manage the major risks facing the business. We consider the main risks facing the company that might impact on financial performance to be: - Economic recession and/or a downturn in housebuilding. To mitigate this risk, we are diversifying our - activities in training and mentoring and therefore our sources of revenue. - A change in government policy on planning generally, or specifically on design review, causing a steep reduction in demand for our work. To mitigate this risk, we are diversifying our activities and therefore our sources of revenue. - Litigation, including the risk of judicial review, because of any perceived inadequacy of our professional advice. ## **Reserves policy** From 2021-22 this level has been set at £225,000. The trustees considered that reserves at this level ensured that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level was met throughout 2021-22. The level set by this policy is under review by the trustees. Income rose in the year to £858,561 (£880,688 2021-22). However, costs also rose leading to a deficit for the year of £71,075 (£18,473 deficit 2021-22). As small deficits have continued into the 2023-24 financial year the trustees have resolved to reduce costs this year to improve the position significantly. ## **Plans for future periods** During the year we continued to implement our diversification strategy and to make improvements to the efficiency of our processes. The diversification strategy includes diversification into activities that deliver built environment education and engage stakeholders and communities in place making. - 4 - ## **DESIGN SOUTH EAST LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_ ## **Arrangements for setting pay of key personnel** All employees of Design South East are subject to annual appraisal. In the case of the Chief Executive the appraisal is conducted with the Chair of the Board. The remuneration committee comprising three directors of the company, advised by the Chief Executive. Pay rises for staff were agreed by this committee. The pay of the Chief Executive was also agreed by the committee but without the presence of the Chief Executive. Decisions are reached in the light of individual performance as judged by the appraisal process, and the financial position of the company. ## **Structure, governance and management** The charity is a company limited by guarantee. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: J J Armitt (Resigned 29 June 2023) H Satchwell B Condon B Rogers S Willcox M Cook J Martin M Parsons (Resigned 15 October 2022) A Von Bradsky R Nazzari L Archer J Stockwell (Appointed 12 July 2023) None of the trustees has any beneficial interest in the company. - 5 - ## **DESIGN SOUTH EAST LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_ ## **Trustees' responsibilities statement** The Trustees (who are also directors of The North Kent Architecture Centre Limited for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under Company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the situation of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies _Act_ 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees' report was approved by the Board of Trustees. B Rogers 23 October 2023 - 6 - ## **DESIGN SOUTH EAST LIMITED** ## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF DESIGN SOUTH EAST LIMITED** I report to the trustees on my examination of the financial statements of Design South East Limited (the charity) for the year ended 31 March 2023. ## **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 financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ACCA, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the accounting requirements of 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 - 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (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 financial statements to be reached. S Meah FCCA ## **Crossley Financial Accounting** Star House Star Hill Rochester Kent ME1 1UX Dated: 6 November 2023 - 7 - ## **DESIGN SOUTH EAST LIMITED** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 MARCH 2023**_ |||**Unrestricted Unrestricted**|**Unrestricted Unrestricted**| |---|---|---|---| |||**funds**|**funds**| |||**2023**|**2022**| ||**Notes**|**£**|**£**| |**Income from:**|||| |Charitable activities|**3**|858,561|880,688| |Investments|**4**|1,543|145| |**Total income**||860,104|880,833| |**Expenditure on:**|||| |Charitable activities|**5**|931,179|899,306| |**Net expenditure for the year/**|||| |**Net movement in funds**||(71,075)|(18,473)| |Fund balances at 1 April 2022||249,704|268,178| |**Fund balances at 31 March 2023**||178,629|249,705| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 8 - ## **DESIGN SOUTH EAST LIMITED** ## **STATEMENT OF FINANCIAL POSITION** ## _**AS AT 31 MARCH 2023**_ |**2023**
**Notes**
**£**
**Fixed assets**
Tangible assets
**10**
**Current assets**
Debtors
**11**
115,723
Cash at bank and in hand
251,551
367,274
**Creditors: amounts falling due within**
**one year**
**12**
(194,095)
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds|**2022**
**£**
**£**
5,450
176,029
201,800
377,829
(135,135)
173,179
178,629
178,629
178,629|**£**
7,011
242,694| |---|---|---| |||249,705| |||249,705| |||249,705| The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 23 October 2023 B Rogers **Trustee** ## **Company registration number 03284438** - 9 - ## **DESIGN SOUTH EAST LIMITED** ## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2023**_ |**Notes**
**Cash flows from operating activities**
Cash generated from/(absorbed by)
operations
**16**
**Investing activities**
Purchase of tangible fixed assets
Investment income received
**Net cash used in investing activities**
**Net cash used in financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2023**
**£**
(3,321)
1,543|**£**
51,529
(1,778)
-
49,751
201,800
251,551|**2022**
**£**
**£**
(123,450)
(2,839)
145
(2,694)
-
(126,144)
327,944
201,800| |---|---|---|---| - 10 - ## **DESIGN SOUTH EAST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_ ## **1 Accounting policies** ## **Charity information** Design South East Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 70 Cowcross Street, London, EC1M 6EJ. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. Design South East Limited 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. The company's functional and presentational currency is GBP. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for the other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charges against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. ## **1.4 Income** All income is recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Grants received from County Council and Medway Council and are accounted for on receivable basis. - 11 - ## **DESIGN SOUTH EAST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_ ## **1 Accounting policies** **(Continued)** Project income is recognised when the company obtains the right to consideration under the terms of the individual contract. Where the right to consideration occurs before the service is invoiced the income is accrued. When the right to consideration occurs after the service is invoiced the income is deferred. ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Fixtures and fittings 33% straight line Computer Equipment 33% straight line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. ## **1.7 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.8 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. - 12 - ## **DESIGN SOUTH EAST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_ ## **1 Accounting policies** ## **(Continued)** ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## **1.9 Company status** The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company. ## **1.10 Pensions** The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. ## **2 Critical accounting estimates and judgements** The estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions: The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The recoverability of debtors is considered to be an area where there is significant estimation involved in valuing the debtors of the charitable company as at the year end date. Critical areas of judgement: No significant judgments have had to be made by management in preparing these financial statements. - 13 - ## **DESIGN SOUTH EAST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2023**_ ## **3 Charitable activities** ||**Unrestricted**|
**Unrestricted**| |---|---|---| ||**funds**|**funds**| ||**2023**|**2022**| ||**£**|**£**| |All charitable activities|858,561|880,688| **4 Investments** |||**Unrestricted **|**Unrestricted**| |---|---|---|---| |||**funds**|**funds**| |||**2023**|**2022**| |||**£**|**£**| ||Interest receivable|1,543|145| |**5**|**Charitable activities**||| ||**Unrestricted**|
**Unrestricted**| |---|---|---| ||**funds**|**funds**| ||**2023**|**2022**| ||**£**|**£**| |Panel fees|238,341|238,704| |Panel expenses|15,639|6,029| |Venue hire|2,223|240| |Catering design review|2,782|88| |Wages and salaries|387,951|351,158| |National insurance|37,854|32,361| |Pension cost|10,448|9,279| |Seminars and conference fees|2,173|55| |Literature and brochures|-|788| ||697,411|638,702| |Share of support costs (see note 6)|232,353|259,354| |Share of governance costs (see note 6)|1,415|1,250| ||931,179|899,306| - 14 - ## **DESIGN SOUTH EAST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_ ## **6 Support costs** |Consultancy
Premises costs
Travel & entertainment
Office costs
Accountancy fees
Professional fees
Marketing and
communications
Bad debts
Subcontract costs
Wages and salaries
National insurance
Pension costs
Depreciation
Independent examiners'
remuneration
Analysed between
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
25,917
-
34,168
-
8,852
-
45,594
-
2,917
-
8,506
-
4,045
-
-
-
-
-
86,761
-
9,257
-
1,452
-
4,884
-
-
1,415
232,353
1,415
232,353
1,415|**2023**Support costs Governance
costs
**£**
£
£
25,917
-
-
34,168
28,595
-
8,852
3,017
-
45,594
44,574
-
2,917
2,683
-
8,506
12,029
-
4,045
8,310
-
-
(1,650)
-
-
22,247
-
86,761
118,798
-
9,257
13,650
-
1,452
2,056
-
4,884
5,045
-
1,415
-
1,250
233,768
259,354
1,250
233,768
259,354
1,250|2022
£
-
28,595
3,017
44,574
2,683
12,029
8,310
(1,650)
22,247
118,798
13,650
2,056
5,045
1,250
260,604
260,604| |---|---|---|---| ## **7 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. - 15 - ## **DESIGN SOUTH EAST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_ ## **8 Employees** The average monthly number of employees during the year was: ||**2023**|**2022**| |---|---|---| ||**Number**|**Number**| |Director|1|1| |Head of Programmes|1|1| |Programme Coordinator|2|1| |Programme Administrator|1|1| |Events and Marketing Coordinator|1|2| |Finance Manager|1|1| |Head of Service Delivery|1|1| |Design Advisor|3|4| |Total|11|12| |The number of employees whose annual remuneration was more than £60,000||| |---|---|---| |is as follows:||| ||**2023**|**2022**| ||**Number**|**Number**| |In the band £70,001 - £80,000|1|1| The key management personnel of the charity comprise, the Chief Executive Officer, Operations Manager and the Head of Programmes. The total employee benefits of the key management personnel of the Charity were £151,586 (2022 - £149,377). ## **9 Taxation** The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. - 16 - ## **DESIGN SOUTH EAST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_ |**10**
**Tangible fixed assets**
**Fixtures and**
**fittings**
**Computer**
**Equipment**
**£**
**£**
**Cost**
At 1 April 2022
1,360
27,954
Additions
-
3,321
At 31 March 2023
1,360
31,275
**Depreciation and impairment**
At 1 April 2022
1,360
20,941
Depreciation charged in the year
-
4,884
At 31 March 2023
1,360
25,825
**Carrying amount**
At 31 March 2023
-
5,450
At 31 March 2022
-
7,011
**11**
**Debtors**
**2023**
**Amounts falling due within one year:**
**£**
Trade debtors
102,854
Other debtors
300
Prepayments and accrued income
12,569
115,723
**12**
**Creditors: amounts falling due within one year**
**2023**
**Notes**
**£**
Other taxation and social security
37,588
Deferred income
**13**
62,675
Trade creditors
29,048
Other creditors
2,220
Accruals
62,564
194,095|**Total**
**£**
29,314
3,321| |---|---| ||32,635| ||22,301
4,884| ||27,185| ||5,450| ||7,011| ||**2022**
**£**
156,198
8,150
11,681| ||176,029| ||**2022**
**£**
36,390
13,145
51,928
592
33,080| ||135,135| - 17 - ## **DESIGN SOUTH EAST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2023**_ ## **13 Deferred income** |Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 April 2022
Released from previous periods
Resources deferred in the year
Deferred income at 31 March 2023|**2023**
**£**
62,675
**2023**
**£**
62,675
13,145
(13,145)
62,675
62,675|**2022**
**£**
13,145
**2022**
**£**
13,145
43,375
(43,375)
13,145
13,145| |---|---|---| ## **14 Analysis of net assets between funds** |**Analysis of net assets between funds**||| |---|---|---| ||**Unrestricted**|
**Unrestricted**| ||**funds**|**funds**| ||**2023**|**2022**| ||**£**|**£**| |Fund balances at 31 March 2023 are represented by:||| |Tangible assets|5,450|7,011| |Current assets/(liabilities)|173,179|242,694| ||178,629|249,705| ## **15 Related party transactions** During the year under review the following transactions took place with the company Tibbalds Planning and Urban Design Ltd, a company in which H Satchwell is a Director and shareholder; Sales of £600 (2022 - £600) All transactions were at arms' length and as at 31 March 2023 £Nil (2022 - £Nil) was due from Tibbalds Planning and Urban Design Ltd. - 18 - ## **DESIGN SOUTH EAST LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_ |**16**
**Cash generated from operations**
Deficit for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Increase/(decrease) in deferred income
**Cash generated from/(absorbed by) operations**|**As restated**
**2023**
**2022**
**£**
**£**
(71,075)
(18,473)
(1,543)
(145)
4,884
5,045
60,303
(25,676)
9,430
(53,971)
49,530
(30,230)
51,529
(123,450)| |---|---| Within the prior years' accounts the allocation of the above figures had been revised. The figures have been re-allocated within the current accounts with the result having no change on the bottom line. ## **17 Analysis of changes in net funds** The charity had no debt during the year. - 19 -