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2022-03-31-accounts

Business Plan

Art Care Education Old Town Hall Market Place Somerton Somerset TA11 7NB

Charity Number: 1166886

01458 273008 hello@acearts.co.uk www.acearts.co.uk

IN BRIEF

ACEarts has been established for over five years and continues to grow, both within the community and in the wider art world. Our annual programme of exhibitions underpins all the other work we do: supporting local artists and makers; working with specific groups through our outreach programme and; holding workshops, classes, group meetings and other events. We aim to inspire everyone to engage with art in some way for their well-being, growth and personal development, whatever their circumstances. We believe everyone can, and should, benefit from creativity.

We want to remain a valuable part of our local community, in our beautiful building centrally based in this picturesque, historic town. We want to be financially stable, independent and able to offer art based opportunities to all, whilst continuing to support local artists.

ABOUT THE CHARITY

Art Care Education, known as ACEarts, was created in 2016 starting out in The Courthouse, West Street whilst renovations were completed on our current building. The charity then moved into The Old Town Hall, a centrally located listed building with a ground floor retail space and upper gallery area. Exhibitions began in January 2017 with works by three local artists and we continue expand our annual exhibition programme and the range of work by local artists sold in the retail space. We introduced events and workshops to complement the gallery shows and commenced our outreach projects February 2017 working with a local school. In our fifth year ACEarts is now an important part of the both the local artists community and the town’s growing population. We have a small team lead by our Gallery Manager, all of whom offer a warm welcome and extensive knowledge of the exhibitions and items for sale.

AIM AND PURPOSE

The charity’s aim is to provide art and creative activity to inspire, empower and enable people to develop and grow. We pursue this objective through the delivery of an annual programme of exhibitions and associated workshops and creative activities designed to encourage people of all ages and abilities to benefit from engagement with the arts. A significant proportion of our work focuses on the mutual benefits that can be derived from activities which combine art, healthcare and education …. hence the name of our charity.

Art: enabling art and crafts people to have an opportunity to bring their work into the public domain – giving them the chance to display and sell their work to the public via the retail space, through exhibitions and to connect directly with their audience

Care: working closely with other organisations to bring creativity into the lives of the people who use their services, with a focus on health and wellbeing for the local community, especially older people, school aged children and those with mental health difficulties and learning differences.

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Education: providing workshops and courses for all members of the local community to attend and to become involved in “art” in the broadest sense; increased gallery engagement through artist talks and resource packs themed on current exhibition.

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WHAT WE DO

Within our dedicated exhibition space in the upper part of the building we present an inspiring annual programme of free exhibitions providing a platform for mainly local and some national artists. We are delighted with the response that we have received from a wide range of artists and makers who continue to contribute to our broad spectrum of exhibitions since starting in January 2017.

Alongside the programme of exhibitions, we deliver events, workshops, talks and activities that complement and enhance the exhibits. The latest being the 2021 Summer School – a series of subsidised family friendly courses running alongside ‘Putting on a Show’, a community exhibition showcasing the work of local school children and older residents resulting from a number of sessions facilitated by a local artist making puppets. Summer school offers everyone the opportunity to take part in a wide range of art and craft based activities in the inspiring gallery surroundings including the opportunity to make their own additions to the show.

The lower floor of the building is dedicated to a retail space/gallery where up to 100 local artists display and sell their work to the general public. ACEarts curates this space and receives 45% from the sale of each item, all profits go towards the delivery of our charitable activities. As a result of restrictions and lockdowns in 2020, we worked on our digital development with free make along online courses and introduction of the on-line shop, showcasing a curated range of the items available in store.

WHO WE DO IT FOR

We aim to provide accessible community art and craft based activities to everyone - we would like to reach all of the local community as well as being an interesting tourist addition to our beautiful town. We encourage everyone to participate in creativity in some way; by visiting an exhibition, browsing our retail space, attending one off cultural events or by being involved in one of many outreach projects.

To further this end, we have created a short questionnaire for all residents of Somerton to complete – we want to discover which art based activities would inspire more people to become involved with the charity in some capacity.

WHAT WE HOPE TO ACHIEVE

Our Vision Statement

To secure our position by preserving the Old Town Hall as a place where artists and craftspeople can engage with the public through exhibitions, educational opportunities and workshops, and outreach into the community.

Financial Stability

Although successful in accessing funding for projects, we need to access larger funding pots to fund core costs and improve financial stability. Demonstrating community involvement and security of building are fundamental to this. We will continue to seek funding for both core and project costs as well as looking at

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ways to fundraise including regular giving, Somerton Market and other community events.

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Expanding the Range of Activities

Broadening range of activity from types of exhibitions to activities and events taking place will maximise use of the building and increase income from it. The Second Space exhibition area should increase footfall, and enable us to support emerging artists. Utilising the space in the evenings by holding a varied range of events (ACE Late?) will attract different people into the gallery. Getting a licence to enable serving of alcohol would increase attractiveness. We will work with more local artists to show their work in our main gallery or the Second Space where we will champion under-represented groups such as emerging or returning to practice artists – exhibiting and viewing in either gallery will remain free to all.

Engaging with art can have a very positive effect on mental health. We want to focus more on mental health, which feels appropriate as we gradually emerge from the pandemic, with young people 16 – 21 particularly affected. We are keen to explore the benefits of intergenerational work, and a proposal was made to access research expertise to help develop what we offer. We want to expand the range of outreach projects we can undertake and as well as those mentioned above, want to remain working with those sections of the community who find it harder to access art based experiences.

Marketing

We need to develop a marketing strategy to widen the publicity and increase the number of people visiting, attracting people who wouldn’t normally visit a gallery. This will include expanding our social media output to cover Twitter and Pinterest as well as increased presence on Facebook and Instagram.

We want to increase our profile in the local community, so we need to find out what the community want from us, via a survey. This will also help us to access core funding streams. We have a great volunteer base who can help with surveys and promotion. We will analyse the results of the survey to assess where we can best offer art experiences to reach a wider and more diverse audience. This would be reflected in increased visitor numbers, greater digital reach and more people added to our mailing list.

Although we aim to be a local hub, we also want to attract visitors from further afield and become a regional / national destination. We could tap into the increased popularity of other local arty destinations such as Bruton and Frome. There is also potential synergy with other organisations locally. We will continue to visit and converse with other arts organisations to look at areas of commonality and contrast as well as taking part in joint initiatives where all concerned benefit from the partnerships and increased opportunities for engagement with art.

Broaden Trustee Base

We wish to recruit another trustee from younger age band.

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Securing the Building

The gallery and exhibitions are central to ACEart’s activities - Art, Care and Education. As such our long term plan is to purchase the building and we will be looking at the various options available to ensure we can do so. Buying our beautiful property will ensure more financial stability, independence and security for the charity, our network of local artists and the community as a whole.

----- Start of picture text -----
ART
CARE
Buil-
ding
EDUCATION
----- End of picture text -----

This would also mean we could invest in the building to make it more accessible, for instance by installing a lift. The ability to isolate access to the shop would enable independent events in the gallery.

.

OUR PEOPLE

The charity currently has 6 / 7 trustees, they are:

The gallery has been managed since its inception by Nina Gronw-Lewis, an experienced artist whose expertise and enthusiasm ensures the charity remains a great amenity for artists and participants alike. She is supported by a small, friendly and knowledgeable part-time team comprising 2 Gallery Assistants, an Outreach Coordinator, a Fundraiser and a Finance Officer. We currently have a young person working with us through the Kickstart scheme.

The Gallery benefits from the contribution of a growing band of volunteers. Volunteer numbers have grown considerably to 44 in number and contribute in varying ways:

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FINANCIALS

Statement of Financial Activities for the year ending March 21: see accounts

Income and Endowments from Donations and £ Legacies: Expenditure on Raising Funds: -£ Transfers between Funds: -£ Total Funds brought forward: £ Total Funds carried forward £

Balance Sheet for the year ending March 21: see accounts

Fixed Assets: £ Current Assets £ Creditors with Amounts Falling Due within One Year -£ Net Current Assets: £ Total Assets less Current Liabilities: £ Total Funds of the Charity: £

Income

The charity generates income in the following ways:

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Funding

£78,000 received in grants over the last year, which have helped ACE over these challenging times.

----- Start of picture text -----
Funder Amount Project
Arts Council England 18000 Digital Development
Arts Council England 50000 Core and ongoing costs
Arts Society 1500 Outreach project
Somerset Community Fund 1500 Exhibition
National Lottery 25th
1000 Project based
Birthday
Awards for All 2250 Putting on a Show
Tesco Bags for Life Scheme 1000 Putting on a Show
Somerton Town Council 750 Putting on a Show
WG Edwards 1500 Outreach – elderly specific
Art packs for those
Tesco Bags of Help Covid 500
isolating
Co-op Community Fund 155+TBC Summer School
----- End of picture text -----

Fundraising

£1300 mostly from ebay sales, clothes sales and £96 from give as you live platforms.

Despite a year of restrictions and lockdowns, the charity raised £578.76 from the monthly Somerton market.

Donations

A local company, The Stepping Stone Group, is a major sponsor for the gallery and donations have also been received from individuals and other organisation totalling £619.

Gift aid

The sum of £3986.66 includes monies received from the Museum and Exhibition tax back dated 3 years. We have applied for 2020/2021 and will be due approximately £500.

Regular monthly giving

Regular sums, totalling £521, help towards core costs.

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Expenditure

The main items of expenditure are:

Reserves Policy

ACEarts aims to retain a minimum of 3 months’ costs in the bank.

Forecasts

Sales in on-line shop have risen steadily over the first 5 years of operation, but we do still need this to be supplemented by grant funding for the foreseeable future. Although we do now have an online shop, sales from this are limited due to the nature of items for sale – art and craft is very visual, and customers very often need to see the physical product to appreciate it fully.

Growth from sales is not expected to be huge and experience elsewhere advises that it will most likely reach a plateau and remain there – we could be there or very close currently. It is anticipated that the charity will continue to need around £30,000 per annum in grant funding to remain financially stable.

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For Internal Use Only:

CRITICAL RISKS

The pandemic has been an unexpected and extremely critical risk to the business – without support from Arts Council England the charity would not have survived being closed for over half of the last financial year. The chance of this reoccurring remains probably the biggest risk for the organisation currently. Other risk factors include loss of key members of staff and potential loss of the building, through decrepitude or sale, it is currently on a short term lease and the landlord is changing this year.

To minimise risk we continue to seek suitable funding, have unrestricted reserves of around 2 – 3 months operating costs, and are looking at ways to purchase the building for the charity.

SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats

Strengths

Weaknesses

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Opportunities

Threats

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Company registration number: 09815245 Charity registration number: 1166886

Art Care Education

(A company limited by share capital) Annual Report and Financial Statements

for the Year Ended 31 March 2022

Accounting Angels (SW) Ltd Walker House Market Place Somerton Somerset TA10 7LX

Art Care Education

Contents

Reference and Administrative Details 1
Strategic Report 2
Trustees' Report 3 to 4
Statement of Trustees' Responsibilities 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 to 18

Art Care Education

Reference and Administrative Details

Chairman Sir John Sebastian Chance Trustees Mrs Alyson Lynne Martin Mr Hugh Francis Rex Martin Sir John Sebastian Chance Mrs Shirley Ann Chapman Mr Andrew Elffick Geoffrey Bertram Lucy Knapp Mrs Mary-Clare Helene Rodwell Principal Office Art Care and Education Market Place Somerton Somerset TA11 7NB Company Registration Number 09815245 Charity Registration Number 1166886 Independent Examiner Accounting Angels (SW) Ltd Walker House Market Place Somerton Somerset TA10 7LX Accountants Accounting Angels (SW) Ltd Walker House Market Place Somerton Somerset TA10 7LX

Page 1

Art Care Education

Strategic Report for the Year Ended 31 March 2022

The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 March 2022, in compliance with s414C of the Companies Act 2006.

The strategic report was approved by the trustees of the charity on 7 July 2022 and signed on its behalf by:

......................................... Mr Hugh Francis Rex Martin Trustee

Page 2

Art Care Education

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2022.

Objectives and activities

Public benefit

Activities undertaken to further public benefit

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Structure, governance and management Financial instruments

Objectives and policies

The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.

Cash flow risk

The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Credit risk

The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments.

The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance. Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.

Page 3

Art Care Education

Trustees' Report

The annual report was approved by the trustees of the charity on 7 July 2022 and signed on its behalf by:

......................................... Mr Hugh Francis Rex Martin Trustee

Page 4

Art Care Education

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Art Care Education for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

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 state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

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.

Approved by the trustees of the charity on 7 July 2022 and signed on its behalf by:

......................................... Mr Hugh Francis Rex Martin Trustee

Page 5

Art Care Education

Independent Examiner's Report to the trustees of Art Care Education

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2022 which are set out on pages 7 to 18.

Respective responsibilities of trustees and examiner

As the charity’s trustees of Art Care Education (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 Art Care Education 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 confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of Art Care Education as required by section 386 of the 2006 Act; or

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

  3. the accounts 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 accounts 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 accounts to be reached.

...................................... Mrs L Wright MAAT ACA Chartered Accountant

Walker House Market Place Somerton Somerset TA10 7LX

7 July 2022

Page 6

Art Care Education

Statement of Financial Activities for the Year Ended 31 March 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Investment income
4
Other income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
22
Note
Income and Endowments from:
Donations and legacies
3
Investment income
4
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
22		 Unrestricted
funds
£
181,417
3
841
182,261
(144,119)
(39,322)
(183,441)
(1,180)
(1,180)
37,000
35,820
Unrestricted
funds
£
152,019
8
152,027
(97,873)
(31,079)
(128,952)
23,075
23,075
13,925
37,000		 Unrestricted
funds
£
181,417
3
841		 Total
2022
£
181,417
3
841
182,261 182,261
(144,119)
(39,322)		 (144,119)
(39,322)
(183,441) (183,441)
(1,180) (1,180)
(1,180)
37,000		 (1,180)
37,000
35,820 35,820
Total
2021
£
152,019
8
152,027
(97,873)
(31,079)
(128,952)
23,075
23,075
13,925
37,000

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 22.

The notes on pages 9 to 18 form an integral part of these financial statements. Page 7

Art Care Education

(Registration number: 09815245) Balance Sheet as at 31 March 2022

Note
Fixed assets
Tangible assets
14
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
17
Creditors: Amounts falling due within one year
18
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
19
Net assets
Funds of the charity:
Unrestricted income funds
Unrestricted funds
Total funds
22		 2022
£
1,064
2,500
2,624
31,231
36,355
(1,599)
34,756
35,820
-
35,820
35,820
35,820		 2021
£
1,483
2,000
5,722
39,110
46,832
(1,315)
45,517
47,000
(10,000)
37,000
37,000
37,000

For the financial year ending 31 March 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements on pages 7 to 18 were approved by the trustees, and authorised for issue on 7 July 2022 and signed on their behalf by:

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

Mr Hugh Francis Rex Martin Trustee

The notes on pages 9 to 18 form an integral part of these financial statements. Page 8

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

1 Charity status

The charity is limited by share capital, incorporated in .

The address of its registered office is: Walker House Market Place Somerton Somerset TA11 7LZ

These financial statements were authorised for issue by the trustees on 7 July 2022.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Art Care Education 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

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Income and endowments

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 the income receivable can be measured reliably.

Page 9

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Gifts in kind

Gifts in kind are recognised in different ways dependent on how they are used by the charity:

(i) Those donated for resale produce income when they are sold. They are valued at the amount actually realised.

(ii) Those donated for onward transmission to beneficiaries are included in the Statement of Financial Activities as incoming resources and resources expended when they are distributed. They are valued at the amount the charity would have had to pay to acquire them.

(iii) Those donated for use by the charity itself are included when receivable. They are valued at the amount the charity would have had to pay to acquire them.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

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Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £0.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

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:

Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

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.

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Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

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

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3 Income from donations and legacies

Page 12

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

Donations and legacies;
Legacies
Gift aid reclaimed
Grants, including capital grants;
Government grants
Regular giving and capital donations
Gifts in kind
Total for 2022
Total for 2021
4
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits
Total for 2022
Total for 2021
5
Other income		 Unrestricted
funds
General
£
22,087
558
20,641
120,881
8,250
172,417
152,019
Unrestricted
funds
General
£
3
3
8		 Total
funds
£
22,087
558
20,641
120,881
8,250
172,417
152,019
Total
funds
£
3
3
8
Total
funds
£

6 Expenditure on raising funds

a) Costs of trading activities

Note
Costs of goods sold
Total for 2022
Total for 2021		 Unrestricted
funds
General
£
89,039
89,039
59,269		 Total
funds
£
89,039
89,039
59,269

Page 13

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

Total costs £

7 Expenditure on charitable activities

Note
Governance costs
8
Total for 2021		 Unrestricted
funds
General
£
39,322
31,079		 Total
funds
£
39,322
31,079

Total expenditure £

In addition to the expenditure analysed above, there are also governance costs of £39,322 (2021 - £31,079) which relate directly to charitable activities. See note 8 for further details.

8 Analysis of governance and support costs

Governance costs

Staff costs
Pension costs
Other staff costs
Audit fees
Other fees paid to auditors
Marketing and publicity
Depreciation, amortisation and other similar costs
Other governance costs
Total for 2022
Total for 2021		 Unrestricted
funds
General
£
831
96
853
4,608
418
32,516
39,322
31,079		 Total
funds
£
831
96
853
4,608
418
32,516
39,322
31,079

Page 14

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

9 Net incoming/outgoing resources

9
Net incoming/outgoing resources
Net (outgoing)/incoming resources for the year include:
2022
£
Depreciation of fixed assets
418
10 Trustees remuneration and expenses
11 Staff costs
The aggregate payroll costs were as follows:
2022
£
Staff costs during the year were:
Wages and salaries
55,080
Pension costs
831
Other staff costs
96
56,007
No employee received emoluments of more than £60,000 during the year.
12 Auditors' remuneration
2022
£
Other fees to auditors
The auditing of accounts of any associate of the charity
853		 2021
£
589
2021
£
38,604
926
-
39,530
2021
£
1,554

Page 15

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

13 Taxation

The charity is a registered charity and is therefore exempt from taxation.

14 Tangible fixed assets

Cost
At 1 April 2021
At 31 March 2022
Depreciation
At 1 April 2021
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
15 Stock
Stocks
16 Debtors
Trade debtors
Prepayments
Other debtors
17 Cash and cash equivalents
Cash on hand
Cash at bank
Short-term deposits		 Furniture and
equipment
£
3,618
3,618
2,554
2,554
1,064
1,064
2022
£
2,500
2022
£
510
1,273
841
2,624
2022
£
196
8,263
22,772
31,231		 Furniture and
equipment
£
3,618
3,618
2,554
2,554
1,064
1,064
2022
£
2,500
2022
£
510
1,273
841
2,624
2022
£
196
8,263
22,772
31,231		 Total
£
3,618
3,618
2,554
2,554
1,064
1,064
2021
£
2,000
3,618
2,554
2,554
1,064
1,064
2022
£
2,500
2022
£
510
1,273
841
2,624
2022
£
196
8,263
22,772
31,231
2021
£
5,722
-
-
5,722
2021
£
50
1,891
37,169
39,110

Page 16

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

18 Creditors: amounts falling due within one year

18 Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals
19 Creditors: amounts falling due after one year
Bank loans		 2022
£
378
447
201
573
1,599
2022
£
-		 2021
£
162
405
176
572
1,315
2021
£
10,000

20 Pension and other schemes Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £831 (2021 - £926).

21 Share capital

22 Funds

Unrestricted funds
General
Unrestricted funds
General		 Balance at 1
April 2021
£
37,000
Balance at 1
April 2020
£
13,925		 Incoming
resources
£
182,261
Incoming
resources
£
152,027		 Resources
expended
£
(183,441)
Resources
expended
£
(128,952)		 Balance at 31
March 2022
£
35,820
Balance at 31
March 2021
£
37,000

Page 17

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

23 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets		 Unrestricted
funds
General
£
1,064
36,355
(1,599)
35,820
Unrestricted
funds
General
£
1,483
46,832
(1,315)
(10,000)
37,000		 Total funds
at 31 March
2022
£
1,064
36,355
(1,599)
35,820
Total funds
at 31 March
2021
£
1,483
46,832
(1,315)
(10,000)
37,000

24 Analysis of net funds

Cash at bank and in hand
Net debt
Cash at bank and in hand
Net debt		 At 1 April
2021
£
39,110
39,110
At 1 April
2020
£
8,395
8,395		 Financing
cash flows
£
(39,110)
(39,110)
Financing
cash flows
£
(8,395)
(8,395)		 At 31 March
2022
£
-
-
At 31 March
2021
£
-
-

Page 18

Art Care Education

Statement of Financial Activities by fund for the Year Ended 31 March 2022

Unrestricted Funds

Total Total
Unrestricted Unrestricted
Funds Funds
2022 2021
£ £
Income and Endowments from:
Donations and legacies 181,417 152,019
Investment income 3 8
Other income 841 -
Total income 182,261 152,027
Expenditure on:
Raising funds (144,119) (97,873)
Charitable activities (39,322) (31,079)
Total expenditure (183,441) (128,952)
Net (expenditure)/income (1,180) 23,075
Net movement in funds (1,180) 23,075
Reconciliation of funds
Total funds brought forward 37,000 13,925
Total funds carried forward 35,820 37,000

This page does not form part of the statutory financial statements. Page 19

Art Care Education

Detailed Statement of Financial Activities for the Year Ended 31 March 2022

Income and Endowments from:
Donations and legacies (analysed below)
Investment income (analysed below)
Other income (analysed below)
Total income
Expenditure on:
Raising funds (analysed below)
Charitable activities (analysed below)
Total expenditure
Net (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Total
2022
£
181,417
3
841
182,261
(144,119)
(39,322)
(183,441)
(1,180)
(1,180)
37,000
35,820		 Total
2021
£
152,019
8
-
152,027
(97,873)
(31,079)
(128,952)
23,075
23,075
13,925
37,000

This page does not form part of the statutory financial statements. Page 20

Art Care Education

Detailed Statement of Financial Activities for the Year Ended 31 March 2022

Donations and legacies
Sales
Donations and legacies
Gift Aid tax reclaimed
Trusts and foundations
UK Government grants
Rent Donation
Investment income
Interest on cash deposits
Other income
Other income
Raising funds
Opening stock
Purchases
Direct costs
Closing stock
Wages and salaries
Subcontract cost
Charitable activities
Staff pensions (Defined contribution) - pension scheme 1
Staff training
Rent
Rates
Light, heat and power
Insurance
Repairs and maintenance
Telephone and fax
Computer software and maintenance costs
Printing, postage and stationery
Trade subscriptions
Charitable donations
Sundry expenses		 Total
2022
£
120,881
22,087
558
9,000
20,641
8,250
181,417
3
3
841
841
(2,000)
(13,282)
(75,405)
2,500
(55,080)
(852)
(144,119)
(831)
(96)
(19,654)
(426)
(2,101)
(2,225)
(2,330)
(768)
(513)
(742)
(1,726)
(50)
(970)		 Total
2021
£
49,321
5,708
3,987
66,000
16,503
10,500
152,019
8
8
-
-
(2,550)
(5,245)
(52,490)
2,000
(38,604)
(984)
(97,873)
(926)
-
(19,500)
(362)
(1,381)
(916)
(832)
(605)
(462)
(330)
(1,077)
(50)
(521)

This page does not form part of the statutory financial statements. Page 21

Art Care Education

Detailed Statement of Financial Activities for the Year Ended 31 March 2022

Advertising
Accountancy fees
Legal and professional fees
Card charges
Depreciation expense		 Total
2022
£
(4,608)
(853)
-
(1,011)
(418)
(39,322)		 Total
2021
£
(1,374)
(1,554)
(600)
-
(589)
(31,079)

This page does not form part of the statutory financial statements. Page 22

Company registration number: 09815245 Charity registration number: 1166886

Art Care Education

(A company limited by share capital) Annual Report and Financial Statements

for the Year Ended 31 March 2022

Accounting Angels (SW) Ltd Walker House Market Place Somerton Somerset TA10 7LX

Art Care Education

Contents

Reference and Administrative Details 1
Strategic Report 2
Trustees' Report 3 to 4
Statement of Trustees' Responsibilities 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 to 18

Art Care Education

Reference and Administrative Details

Chairman Sir John Sebastian Chance Trustees Mrs Alyson Lynne Martin Mr Hugh Francis Rex Martin Sir John Sebastian Chance Mrs Shirley Ann Chapman Mr Andrew Elffick Geoffrey Bertram Lucy Knapp Mrs Mary-Clare Helene Rodwell Principal Office Art Care and Education Market Place Somerton Somerset TA11 7NB Company Registration Number 09815245 Charity Registration Number 1166886 Independent Examiner Accounting Angels (SW) Ltd Walker House Market Place Somerton Somerset TA10 7LX Accountants Accounting Angels (SW) Ltd Walker House Market Place Somerton Somerset TA10 7LX

Page 1

Art Care Education

Strategic Report for the Year Ended 31 March 2022

The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 March 2022, in compliance with s414C of the Companies Act 2006.

The strategic report was approved by the trustees of the charity on 7 July 2022 and signed on its behalf by:

......................................... Mr Hugh Francis Rex Martin Trustee

Page 2

Art Care Education

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2022.

Objectives and activities

Public benefit

Activities undertaken to further public benefit

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Structure, governance and management Financial instruments

Objectives and policies

The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.

Cash flow risk

The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Credit risk

The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments.

The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance. Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.

Page 3

Art Care Education

Trustees' Report

The annual report was approved by the trustees of the charity on 7 July 2022 and signed on its behalf by:

......................................... Mr Hugh Francis Rex Martin Trustee

Page 4

Art Care Education

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Art Care Education for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

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 state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

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.

Approved by the trustees of the charity on 7 July 2022 and signed on its behalf by:

......................................... Mr Hugh Francis Rex Martin Trustee

Page 5

Art Care Education

Independent Examiner's Report to the trustees of Art Care Education

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2022 which are set out on pages 7 to 18.

Respective responsibilities of trustees and examiner

As the charity’s trustees of Art Care Education (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 Art Care Education 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 confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of Art Care Education as required by section 386 of the 2006 Act; or

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

  3. the accounts 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 accounts 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 accounts to be reached.

...................................... Mrs L Wright MAAT ACA Chartered Accountant

Walker House Market Place Somerton Somerset TA10 7LX

7 July 2022

Page 6

Art Care Education

Statement of Financial Activities for the Year Ended 31 March 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Investment income
4
Other income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
22
Note
Income and Endowments from:
Donations and legacies
3
Investment income
4
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
22		 Unrestricted
funds
£
181,417
3
841
182,261
(144,119)
(39,322)
(183,441)
(1,180)
(1,180)
37,000
35,820
Unrestricted
funds
£
152,019
8
152,027
(97,873)
(31,079)
(128,952)
23,075
23,075
13,925
37,000		 Unrestricted
funds
£
181,417
3
841		 Total
2022
£
181,417
3
841
182,261 182,261
(144,119)
(39,322)		 (144,119)
(39,322)
(183,441) (183,441)
(1,180) (1,180)
(1,180)
37,000		 (1,180)
37,000
35,820 35,820
Total
2021
£
152,019
8
152,027
(97,873)
(31,079)
(128,952)
23,075
23,075
13,925
37,000

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 22.

The notes on pages 9 to 18 form an integral part of these financial statements. Page 7

Art Care Education

(Registration number: 09815245) Balance Sheet as at 31 March 2022

Note
Fixed assets
Tangible assets
14
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
17
Creditors: Amounts falling due within one year
18
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
19
Net assets
Funds of the charity:
Unrestricted income funds
Unrestricted funds
Total funds
22		 2022
£
1,064
2,500
2,624
31,231
36,355
(1,599)
34,756
35,820
-
35,820
35,820
35,820		 2021
£
1,483
2,000
5,722
39,110
46,832
(1,315)
45,517
47,000
(10,000)
37,000
37,000
37,000

For the financial year ending 31 March 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements on pages 7 to 18 were approved by the trustees, and authorised for issue on 7 July 2022 and signed on their behalf by:

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

Mr Hugh Francis Rex Martin Trustee

The notes on pages 9 to 18 form an integral part of these financial statements. Page 8

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

1 Charity status

The charity is limited by share capital, incorporated in .

The address of its registered office is: Walker House Market Place Somerton Somerset TA11 7LZ

These financial statements were authorised for issue by the trustees on 7 July 2022.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Art Care Education 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

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Income and endowments

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 the income receivable can be measured reliably.

Page 9

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Gifts in kind

Gifts in kind are recognised in different ways dependent on how they are used by the charity:

(i) Those donated for resale produce income when they are sold. They are valued at the amount actually realised.

(ii) Those donated for onward transmission to beneficiaries are included in the Statement of Financial Activities as incoming resources and resources expended when they are distributed. They are valued at the amount the charity would have had to pay to acquire them.

(iii) Those donated for use by the charity itself are included when receivable. They are valued at the amount the charity would have had to pay to acquire them.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Page 10

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £0.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

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:

Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

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.

Page 11

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

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

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3 Income from donations and legacies

Page 12

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

Donations and legacies;
Legacies
Gift aid reclaimed
Grants, including capital grants;
Government grants
Regular giving and capital donations
Gifts in kind
Total for 2022
Total for 2021
4
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits
Total for 2022
Total for 2021
5
Other income		 Unrestricted
funds
General
£
22,087
558
20,641
120,881
8,250
172,417
152,019
Unrestricted
funds
General
£
3
3
8		 Total
funds
£
22,087
558
20,641
120,881
8,250
172,417
152,019
Total
funds
£
3
3
8
Total
funds
£

6 Expenditure on raising funds

a) Costs of trading activities

Note
Costs of goods sold
Total for 2022
Total for 2021		 Unrestricted
funds
General
£
89,039
89,039
59,269		 Total
funds
£
89,039
89,039
59,269

Page 13

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

Total costs £

7 Expenditure on charitable activities

Note
Governance costs
8
Total for 2021		 Unrestricted
funds
General
£
39,322
31,079		 Total
funds
£
39,322
31,079

Total expenditure £

In addition to the expenditure analysed above, there are also governance costs of £39,322 (2021 - £31,079) which relate directly to charitable activities. See note 8 for further details.

8 Analysis of governance and support costs

Governance costs

Staff costs
Pension costs
Other staff costs
Audit fees
Other fees paid to auditors
Marketing and publicity
Depreciation, amortisation and other similar costs
Other governance costs
Total for 2022
Total for 2021		 Unrestricted
funds
General
£
831
96
853
4,608
418
32,516
39,322
31,079		 Total
funds
£
831
96
853
4,608
418
32,516
39,322
31,079

Page 14

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

9 Net incoming/outgoing resources

9
Net incoming/outgoing resources
Net (outgoing)/incoming resources for the year include:
2022
£
Depreciation of fixed assets
418
10 Trustees remuneration and expenses
11 Staff costs
The aggregate payroll costs were as follows:
2022
£
Staff costs during the year were:
Wages and salaries
55,080
Pension costs
831
Other staff costs
96
56,007
No employee received emoluments of more than £60,000 during the year.
12 Auditors' remuneration
2022
£
Other fees to auditors
The auditing of accounts of any associate of the charity
853		 2021
£
589
2021
£
38,604
926
-
39,530
2021
£
1,554

Page 15

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

13 Taxation

The charity is a registered charity and is therefore exempt from taxation.

14 Tangible fixed assets

Cost
At 1 April 2021
At 31 March 2022
Depreciation
At 1 April 2021
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
15 Stock
Stocks
16 Debtors
Trade debtors
Prepayments
Other debtors
17 Cash and cash equivalents
Cash on hand
Cash at bank
Short-term deposits		 Furniture and
equipment
£
3,618
3,618
2,554
2,554
1,064
1,064
2022
£
2,500
2022
£
510
1,273
841
2,624
2022
£
196
8,263
22,772
31,231		 Furniture and
equipment
£
3,618
3,618
2,554
2,554
1,064
1,064
2022
£
2,500
2022
£
510
1,273
841
2,624
2022
£
196
8,263
22,772
31,231		 Total
£
3,618
3,618
2,554
2,554
1,064
1,064
2021
£
2,000
3,618
2,554
2,554
1,064
1,064
2022
£
2,500
2022
£
510
1,273
841
2,624
2022
£
196
8,263
22,772
31,231
2021
£
5,722
-
-
5,722
2021
£
50
1,891
37,169
39,110

Page 16

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

18 Creditors: amounts falling due within one year

18 Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals
19 Creditors: amounts falling due after one year
Bank loans		 2022
£
378
447
201
573
1,599
2022
£
-		 2021
£
162
405
176
572
1,315
2021
£
10,000

20 Pension and other schemes Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £831 (2021 - £926).

21 Share capital

22 Funds

Unrestricted funds
General
Unrestricted funds
General		 Balance at 1
April 2021
£
37,000
Balance at 1
April 2020
£
13,925		 Incoming
resources
£
182,261
Incoming
resources
£
152,027		 Resources
expended
£
(183,441)
Resources
expended
£
(128,952)		 Balance at 31
March 2022
£
35,820
Balance at 31
March 2021
£
37,000

Page 17

Art Care Education

Notes to the Financial Statements for the Year Ended 31 March 2022

23 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets		 Unrestricted
funds
General
£
1,064
36,355
(1,599)
35,820
Unrestricted
funds
General
£
1,483
46,832
(1,315)
(10,000)
37,000		 Total funds
at 31 March
2022
£
1,064
36,355
(1,599)
35,820
Total funds
at 31 March
2021
£
1,483
46,832
(1,315)
(10,000)
37,000

24 Analysis of net funds

Cash at bank and in hand
Net debt
Cash at bank and in hand
Net debt		 At 1 April
2021
£
39,110
39,110
At 1 April
2020
£
8,395
8,395		 Financing
cash flows
£
(39,110)
(39,110)
Financing
cash flows
£
(8,395)
(8,395)		 At 31 March
2022
£
-
-
At 31 March
2021
£
-
-

Page 18

Art Care Education

Statement of Financial Activities by fund for the Year Ended 31 March 2022

Unrestricted Funds

Total Total
Unrestricted Unrestricted
Funds Funds
2022 2021
£ £
Income and Endowments from:
Donations and legacies 181,417 152,019
Investment income 3 8
Other income 841 -
Total income 182,261 152,027
Expenditure on:
Raising funds (144,119) (97,873)
Charitable activities (39,322) (31,079)
Total expenditure (183,441) (128,952)
Net (expenditure)/income (1,180) 23,075
Net movement in funds (1,180) 23,075
Reconciliation of funds
Total funds brought forward 37,000 13,925
Total funds carried forward 35,820 37,000

This page does not form part of the statutory financial statements. Page 19

Art Care Education

Detailed Statement of Financial Activities for the Year Ended 31 March 2022

Income and Endowments from:
Donations and legacies (analysed below)
Investment income (analysed below)
Other income (analysed below)
Total income
Expenditure on:
Raising funds (analysed below)
Charitable activities (analysed below)
Total expenditure
Net (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Total
2022
£
181,417
3
841
182,261
(144,119)
(39,322)
(183,441)
(1,180)
(1,180)
37,000
35,820		 Total
2021
£
152,019
8
-
152,027
(97,873)
(31,079)
(128,952)
23,075
23,075
13,925
37,000

This page does not form part of the statutory financial statements. Page 20

Art Care Education

Detailed Statement of Financial Activities for the Year Ended 31 March 2022

Donations and legacies
Sales
Donations and legacies
Gift Aid tax reclaimed
Trusts and foundations
UK Government grants
Rent Donation
Investment income
Interest on cash deposits
Other income
Other income
Raising funds
Opening stock
Purchases
Direct costs
Closing stock
Wages and salaries
Subcontract cost
Charitable activities
Staff pensions (Defined contribution) - pension scheme 1
Staff training
Rent
Rates
Light, heat and power
Insurance
Repairs and maintenance
Telephone and fax
Computer software and maintenance costs
Printing, postage and stationery
Trade subscriptions
Charitable donations
Sundry expenses		 Total
2022
£
120,881
22,087
558
9,000
20,641
8,250
181,417
3
3
841
841
(2,000)
(13,282)
(75,405)
2,500
(55,080)
(852)
(144,119)
(831)
(96)
(19,654)
(426)
(2,101)
(2,225)
(2,330)
(768)
(513)
(742)
(1,726)
(50)
(970)		 Total
2021
£
49,321
5,708
3,987
66,000
16,503
10,500
152,019
8
8
-
-
(2,550)
(5,245)
(52,490)
2,000
(38,604)
(984)
(97,873)
(926)
-
(19,500)
(362)
(1,381)
(916)
(832)
(605)
(462)
(330)
(1,077)
(50)
(521)

This page does not form part of the statutory financial statements. Page 21

Art Care Education

Detailed Statement of Financial Activities for the Year Ended 31 March 2022

Advertising
Accountancy fees
Legal and professional fees
Card charges
Depreciation expense		 Total
2022
£
(4,608)
(853)
-
(1,011)
(418)
(39,322)		 Total
2021
£
(1,374)
(1,554)
(600)
-
(589)
(31,079)

This page does not form part of the statutory financial statements. Page 22