## 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:
- Sir John Sebastian Chance – Chair, local professional artist and ex-art teacher
- Alyson Martin MBE –Director of a local company
- Frank Martin – Local ceramic artist and founding trustee
- Shirley Chapman – Currently working for local company
- David Lines –
- Andrew Elfick –
- Mary-Clare Rodwell -
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:
- supporting the gallery by attending the opening of exhibitions
- stewarding exhibitions
- offering practical help, e.g. making tea, talking to visitors
- contributing financially to the charity
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- organising and supporting fundraising events
- or just supporting the charity in spirit
## 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:
- Cash sales – 45% of the sales price of items sold from the exhibitions or the retail space
- Classes and workshops – participants are charged to attend, with prices varying by course
- Grants, Fundraising and Donations:
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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:
- Staff costs of employment
- Commission to artists and a small amount of ethically sourced bought in stock
- Rent, rates and utility bills for the Gallery building
- Advertising and PR
- Office and professional costs
## **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**
- Unique combination of supporting care and education through art
- Experience of Gallery Manager, volunteers and Trustees
- Strong connections with the art and care environments
- Having a willing body of volunteers
- Location in a unique historic building with high quality exhibition and sales space
- Situated in thriving market town of Somerton
- Our board members and the skills they bring
- Our target population are our demographic
- Our physical resources, our location, building and equipment
- Our programme, its variety and the audiences that brings.
- New post dedicated to funding and fundraising
- Providing opportunities for artists to develop and exhibit their work
## **Weaknesses**
- Reliance on a small team of key individuals
- Reliance on the goodwill of volunteers
- Lack of core funding
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- Not as well known in local community as we’d like to be
## **Opportunities**
- Delivery of more outreach services into care and education settings
- Becoming a Dementia Friendly Gallery
- The gallery is a great physical environment
- Somerton is a growing town
- The town is on a good bus route
- Cementing closer relationships with the town
- Partnering with other organisations
- Developing relationships with galleries and Art organisations in the South West region and beyond
- Links with HE institutions
## **Threats**
- Lacking charitable investment
- Uncertainty regarding long term future of the building
- Uncertainty around easing of restrictions post-Covid and the economy
- School moving further away
- Lack of public support
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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:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and 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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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:
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
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.
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## **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.
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
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:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and 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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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:
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
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