2020-12-31-accounts

CHARITY REGISTRATION NUMBER: 1168685

lifracombe Art & Craft Society Unaudited Financial Statements 31 December 2020 :

THOMAS WESTCOTT Chartered accountants 96 High Street lifracombe Devon England EX34 SNH

Ilfracombe Art & Craft Society

Financial Statements

Year ended 31 December 2020

	Page
Trustees’ annual report	1-3
Independent examiner's report to the trustees	4
Statement offinancial activities	5
Statement offinancial position	6
Notestothefinancialstatements	7-16

Ilfracombe Art & Craft Society

Trustees’ Annual Report

Year ended 31 December 2020

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endedThe trustees31 Decemberpresent2020.their report and the unaudited financial statements of the charity for the year

Reference and administrative details

Registeredcharityname	IlfracombeArt& CraftSociety
Charity registration number	1168685
Principal office	9/10 The Promenade
	Wider Road
	\lfracombe
	EX34 8DQ
	Devon
The trustees	Mrs L Beard
	Mr C Curtis
	MrA Kift
	MrsS Kelly MrsA Rawlings
Independentexaminer	Catherine WilliamsACADChA
	Thomas Westcott Chartered Accountants
	96 High Street
	\lfracombe
	Devon
	England
	EX349NH

Structure, governance and management

This Charitable Incorporated Organisation (CIO) was formed and registered with the Charities Commission on 9th August 2016. It remained dormant until 1st September 2016 when it acquired the assets, liabilities and obligations of the organisation known as the Ilfracombe Art and Craft Society on 1st September 2016. It also took over that organisation's operations from that date.

The charity is governed by its trustees who were appointed on its formation. The power of appointing new trustees is vested with the existing continuing trustees and/or approval at the charity's AGM.

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Ilfracombe Art & Craft Society Trustees’ Annual Report (continueg)

Year ended 31 December 2020 aa

Objectives and activities

The charitable objects are to promote art for the benefit of the public by the establishment and maintenance of an art and craft gallery. To advance the education of the public in the arts, including (but not limited to) young people and disabled people.

Also, the prevention or relief of poverty in Ilfracombe and neighbouring districts by providing grants, items and services to individuals in need and/or charities, or other organisations working to prevent or relieve poverty.

The relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage. To advance for the benefit of the public such other exclusively charitable purposes (in accordance with the laws of England and Wales) as the trustees of the charity shall from time to time select.

The charity/society operates an art and craft gallery, showcasing work from local North Devon Residents. It charges commission on sales of artwork displayed, receives donations and carries out fund raising including an annual draw. Surpluses after expenses are or will be applied to assist in helping local causes in the welfare of the public. A community area is made available for schools and local groups to give them wider public support in the community. Workshops are also provided to individuals and groups.

Achievements and performance

The charity negotiated a new 10-year lease with its landlord in 2017. The charity intends carrying out re-furbishment of the premises (it leases) during future years by utilising the funds it has accumulated. The charity has carried out its objectives successfully with the assistance of volunteers who have given their time and energy to enable the charity to continue to run its operations as planned.

Despite the restrictions imposed under the COVID 19 lockdown measures with social distancing 2020.requirements etc. The charity has managed to achieve a good performancein its activities throughout Coronavirus grants of £11,334 was received which enabled the charity to maintain its reserve at a reasonable level during a difficult year.

Financial review

The charity had net incoming resources for the year of £2,342 (2019: £2,435).

The annual draw was cancelled in 2020 due to the number of weeks closed during the pandemic restrictions as we felt that not enough tickets would be sold to cover the costs and expenses of the draw.

Funds held in reserves

There is no formal reserves policy but this will be reviewed during 2021, as at the year end the charity holds £56,843 in reserves (2019: £54,501). The charity intends using much of these reserves carrying out re-furbishment of the premises (it leases) during future years.

Plans for future periods

The charity intends to continue using the art gallery to raise funds to fulfil the objectives referred to above for the foreseeable future. The charity intends carrying out re-furbishment of the premises (i.e. leases) during future years by utilising the funds it has accumulated.

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Ilfracombe Art & Craft Society

Trustees' Annual Report (continuea)

Year ended 31 December 2020

trusteesThe trustees’by: annual report was approved on col , L/L and signed on behalf of the board of

Mrs L Beard Trustee

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llfracombe Art & Craft Society

Independent Examiner's Report to the Trustees of Ilfracombe Art & Craft Society

Year ended 31 December 2020 Se iC PD

| report to the trustees on my examination of the financial statements of Ilfracombe Art & Craft Society (‘the charity’) for the year ended 31 December 2020.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

| report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination | have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

| have completed my examination. | confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

2. _ the financial statements do not accord with those records; or

3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

| 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.

oOWas. _ Catherine Williams ACA DChA Thomas Westcott Chartered Accountants Independent Examiner 96 High Street \lfracombe Devon England EX34 9NH

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Ilfracombe Art & Craft Society

Statement of Financiai Activities

Year ended 31 December 2020

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||||||||| |---|---|---|---|---|---|---|---| |2020|2019| |Unrestricted| |funds|Totalfunds|Total|funds| |Note|£|£|£| |Income|and|endowments| |Donations|and|legacies|4|12,717|12,717|1,494| |Charitable|activities|5|13,689|13,689|21,345| |Other|trading|activities|6|-|-|679| |Investment|income|7|221|221|190| |Total|income|26,627|26,627|23,708| |Expenditure| |Expenditure|on|raising|funds:| |Costs|of other|activities|8|(103)|(103)|(74)| |Expenditure on|charitable|activities|9,10|(24,218)|(24,218)|(21,208)| |Taxation|12|36|36|9| |Total|expenditure|(24,285)|(24,285)|(21,273)| |Net income|and|net movement|in|funds|2,342|2,342|2,435| |Reconciliation|of funds| |Total|funds|brought forward|54,501|54,501|52,066| |Total funds|carried|forward|56,843|56,843|54,501|

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The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages7 to 16 form part of these financial statements. areneila I

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Ilfracombe Art & Craft Society

Statement of Financial Position

31 December 2020

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		2020	2019
Fixed assets	Note	£	£
Tangible fixed assets	17	403	474
Current assets
Stocks Debtors Cash at bank and in hand	18 19	300 518 61;231	241 655 57,972
		62,049	58,868
Creditors: amounts falling due within one year	20	5,609	4,841
Netcurrent assets		56,440	54,027
Total assets less current liabilities		56,843	54,501
Netassets		56,843	54,501
Funds ofthe charity
Unrestricted funds		56,843	54,501
Totalcharityfunds	21	56,843	54,501

Theserenal far? e cial andstatements are signedwere on behalfapproved of theby boardthe boardby: of trustees and authorised for issue on

Mrs L Beard Trustee

The notes on pages 7 to 16 form part of these financial statements. ee ir a RNR A eR Sh ep sc

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llfracombe Art & Craft Society

Notes to the Financial Statements

Year ended 31 December 2020

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1. General information

The charity is a Charitable Incorporated Organisation (CIO). It was formed and registered with the Charities Commission on 9th August 2016. It remained dormant until 1st September 2016 when it acquired the assets, liabilities and obligations of the organisation known as the Ifracombe Art and Craft Society on 1st September 2016. It also took over that organisation's operations from that date.

The address of the principal office is: 9/10 The Promenade

Wilder Road Ilfracombe Devon EX34 8DQ

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, ‘The Financial Reporting Standard applicable in the UK and the Republic of Ireland’, the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

1. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

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Ilfracombe Art & Craft Society Notes to the Financial Statements (continuea) Year ended 31 December 2020 —_— oe

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1. Accounting policies (continuea)

Corporation tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period.

Current tax is recognised on taxable income or expenditure for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Subject to agreement with HMRC no Corporation Tax is payable and an adjustment has been made in the 2020 accounts to show an adjustment for previous years liabilities overprovided for.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• e income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• e legacy income is recognised when receipt is probable and entitlement is established.

• e income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.

• e income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

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Ilfracombe Art & Craft Society Notes to the Financial Statements (continueq) Year ended 31 December 2020 i 3. Accounting policies (continued)

Resources expended

• Expenditure is recognised on an accruals basis asa liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: e expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.

• e expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

• e other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings - 15% ona reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

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llfracombe Art & Craft Society . Notes to the Financial Statements (continue) Year ended 31 December 2020 Nace 3. Accounting policies (continued)

Impairment of fixed assets (continued)

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

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lifracombe Art & Craft Society Notes to the Financial Statements (continuea

Year ended 31 December 2020 eee

3. Accounting policies (continued)

Financial instruments (continued)

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Donations and legacies

		Unrestricted	Total Funds		Unrestricted	Total Funds
		Funds	2020		Funds	2019
		£	£		=	£
	Donations
	Otherdonations	313	313		404	404
	Grants
	Coronavirus Grant	11,334	11,334		-	-
	Subscriptions
	Membership	1,070	1,070		1,090	1,090
		12.717	12,717,		1,494	1,494
5.	Charitable activities
		Unrestricted	Total Funds		Unrestricted	Total Funds
		Funds	2020		Funds	2019
		£	£		£	£
	Commission from sales	13,689	13,689		21,345	21,345
6.	Other activities
		Unrestricted	Total Funds		Unrestricted	Total Funds
		Funds	2020		Funds	2019
		£	£		£	£
	Fundraising events	-	-		679	679
7.	Investment income
		Unrestricted	Total Funds		Unrestricted	Total Funds
		Funds	2020	.	Funds	2019
		E	£		£	£
	Bankinterestreceivable	221	221		190	190

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Ilfracombe Art & Craft Society

Notes to the Financial Statements (continueg)

Year ended 31 December 2020

Year endedended 31 December 2020	Year endedended 31 December 2020	Year endedended 31 December 2020	Year endedended 31 December 2020	Year endedended 31 December 2020	Year endedended 31 December 2020	Year endedended 31 December 2020
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8.	Costs of other activities
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2020	Funds		2019
		£	£	2		£
	Fundraising costs	103	103	74		74
9.	Expenditure on charitable activities byfund	fund type
		Unrestricted	Total Funds	Unrestricted	Total	Funds
		Funds	2020	Funds		2019
		£	£	£		is
	Donations made	900	900	821		821
	Support costs—Art gallery expenses	23,318	23,318	20,387		20,387
		24,218	24,218	21,208	21,208
10.	Expenditure on charitable activities by	activity type
		Donations	Support	Totalfunds	Total fund
		made	costs	2020		2019
		£	£	£		£
	Artgallery expenses, etc.,	900	23,318	24,218	21,208
11.	Analysis ofsupport costs
			Analysis of
			support costs
			activity	Total2020	Total 2019
			5	£		a
	Premises Communications and IT		12,750 461	12,750 461	12,750 404
	General office		431	431		545
	Rates, water, light and heat Repairs and Maintenance Insurance Miscellaneous costs		1,116 1,505 878 145	1,116 1,505 878 145		1,432 1,081 1,222 163
	Accountancy / Independent examination Depreciation Memberships		1,962 71 36	1,962 71 36		1,411 83 370
	Protective equipment - Coronavirus Streamline charges		3,085 878	3,085 878		926
			23,318	23,318	20,387

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Ilfracombe Art & Craft Society

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Notes to the Financial Statements (continue)

Year ended 31 December 2020

—seee

12. Taxation

Major components of tax income

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|||||||||| |---|---|---|---|---|---|---|---|---| |2020|2019| |Current|tax:|£|£| |UK current tax income|(36)|(9)| |Taxation|(36)|(9)| |13.|Net|income| |Net|income|is|stated|after|charging/(crediting):| |2020|2019| |Depreciation|£|£| |of tangible|fixed|assets|71|83| |14.|Independent|examination|fees| |2020|2019| |Fees|payable|to|the|independent|examiner|for:|£|fe| |Independent|examination|of the|financial|statements|1,758|-|

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15. Staff numbers

There were no paid staff during 2020 or 2019. The charity had 43 volunteers working for it during 2020 (including the trustees) (2019: 40).

No employee received any employee benefits during the year (2019: Nil).

16. Trustee remuneration and expenses

No remuneration or expenses have been paid to any of the trustees during the period.

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lifracombe Art & Craft Society

Notes to the Financial Statements (continuea)

Year ended 31 December 2020

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17. Tangible fixed assets

	Fixtures and
	fittings
	£
Cost
At 1 January 2020 and 31 December 2020	637
Depreciation
At 1 January 2020	163
Charge forthe year	71
At 31 December 2020	234
Carrying amount
At 31 December2020	403
At31December2019	474

The cost, at 1 January 2018, of the tangible assets shown above are the written down value of those assets acquired from the organisation who previously ran the gallery where those assets are located. This was part of the net assets transferred to the charity shown as donation from |.A and C.S. (pre ClO).

18. Stocks

		2020	2019
		£	£
	Packaging and draw prizes	300	241
19.	Debtors
		2020	2019
		£	£
	Prepayments and accrued income	518	655
20.	Creditors: amounts falling due within one year
		2020	2019
		£	£
	Trade creditors	3,640	3,323
	Accruals and deferred income Corporation tax	1,969 -	1,482 36
		5,609	4,841

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Ilfracombe Art & Craft Society

Notes to the Financial Statements (continuea)

Year ended 31 December 2020 et

21. Analysis of charitable funds

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|||||||| |---|---|---|---|---|---|---| |Unrestricted|funds| |1|At|At| |January|31|December| |2020|Income|Expenditure|2020| |General|£|£|£|£| |funds|54,501|26,627|(24,285)|56,843| |At|At| |1|January|31|December| |2019|Income|Expenditure|2019| |General|£|£|£|£| |funds|52,066|23,708|(21,273)|54,501| |22.|Analysis|of net|assets|between|funds| |Unrestricted|Total|Funds| |Funds|2020| |Tangible|£|£| |Current|fixed assets|403|403| |assets|62,049|62,049| |Creditors|less|than|1|year|(5,609)|(5,609)| |Net assets|56,843|56,843| |Unrestricted|Total|Funds| |Funds|2019| |Tangible|2|£| |Current|fixed assets|474|474| |assets|58,868|58,868| |Creditors|less than|1|year|(4,841)|(4,841)| |Net assets|54,501|54,501|

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23. Post balance sheet events

The COVID19 restrictions imposed by the UK government have continued into 2021. The gallery has been closed for the early part of 2021 but has opened again when the restrictions lifted. Reserves accumulated and grants received should allow the charity to assume its activities in due course.

24. Other financial commitments

The charity negotiated a new 10-year lease with its landlord in 2017. Rent payable at £12,750pa (with a rent review due in 2022) therefore the future leasing commitments are: £89,250 (for the next 7 years in total) assuming there is no change in the rent payable after the rent review in 2022.

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Ilfracombe Art & Craft Society

Notes to the Financial Statements (continued)

Year ended 31 December 2020 sas

25. Related parties

During the year, the following trustees paid commission to the charity for the sale of their art work and craft: Alan Kift £50.42 (2019 £81.55), Chris Curtis £252.50 (2019 £357.50), Sally Kelly £1,575.79 (2019 £1,872.12), Arlene Rawlings £443.74 (2019 £439.40) and Linda Beard £323.00 (2019 £1,142.75). All transactions are on normal commercial terms.

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