REGISTERED CHARITY NUMBER: 1169698 GROUP REPORT OFTHE TRUSTEES AND CONSOUDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31sr DECEMBER 2020 FOR Wags LLP tla Wagstaffs Chartered Accountants and Statutory Auditors Richmond House Walkern Road Stevenage Hertfordshire SG13QP
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020 Page Referen and Administrative Oetai15 Report of the Trustees 2to4 Report of the Indendent Auditors Sto8 Consolidated Statement of Financial Activities Consolidated Statement of Financial Position Iotoll Charity Statement of Financial Position 12to13 Consolidated Statement of Cash Flows 14 Notes to the Consolidated Statement of Cash Flo¥ds 15 Notes to the Finanaal Statements 16to30
COUNTY HALLARTS REFERENCE AND ADMINISTrATIVE DETAIL5 FOR THE YEAR Et4DED 31ST DECEMBER 2010 TRUSTEES K Okamoto M Okarnoto D Sharpe (resigned 18181211 A L C M Powilewicz (resigned 71121201 J Chauhan (resigned 7111201 l Martinez PRINapALADDRESS The Riverside Building County Hall Westminster Bridge Road London SEI 7PB REGISTERED CHARfTY NUMBER 1169698 AUDITORS Wags LLP tla Wagstaffs Chartered Accountsnts and Statutory Auditor5 Richmond House Walkern Rid Stevenage Hertfordshire SGI 3QP Page I
COUNTY HALL ART5 GROUP REPORT OF THE TRusfEES FOR THE YEAR ENDED 31ST DECEMBER Z020 The trustees Psent their report with the financial statements of the charitable group for the year ended 315t Decernber 2020. The trustees have adopted the provision5 of Accounting and Reportin8 by Charities.. Statement of Recommended Practice èpplicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffertive ljanuary 20151. OBJECTIVES ANO AcrivrriES Objectives JrKI Jlms To advance the education of people in the art5 for the public benefit in particular the arts of, drama. dance. Inu5ic and motlon pirtures and culinary arts primarily but not excluslvely. through the provislon of financial asslstance in the education. acce55 and creation ofarts and culture. To 5UPPOrt these aims, the charity wishes to consider establishing art galleries. museums. schools and culinary arts schools and provide space for cultural events. exhibitions and production of motion pirture film5. Public benefit The trustees have complied with the duty in section 4 of the Charities Act 2011 and have regard to the public benefit guidance as issued by the Charity Commi55ion as shown in the objertive5 above. We have referred to the guidance on public benefit when reviewing our aims and objertive5 and in planning our future artivities in particular. the Trustees consider how planned activities will contribute to the aim5 and objective5 that they have set. This public benefrt statement fomis the basis for all judgements regarding operational report5 to the Board meetings, in orderto be reassured that the facilities and services currently managed by the charity continue to meet these criteria. At these meetings. the Financial Controllera150 pre5ent5 the monthly financial p051tion Includlng taking account of any restricted fund5 and the Charitys status as a goin8 concern. ACHIEVEMENT AND PERFORMANCE Ch4r5tsble artl¥ltle5 Durin8 the year the charitable group received ongoing funding to allow future investment in the education, access and creation of arts and culture. in line with the charitys objertives. Rentswere received from tenants amounting to £6.189.1X)6 for the year12019: £6,139.6691. This 15 included within investment income as set out at note 4 to the financial statements. Included in expenses are the associated expenses incurred in securing rent yields. Ourine the year ongoing fvnding was Secured at sufficient levels to allow the charity to provide support in 5ub5equent accountin8 periods for those activities which facilitate delNery of the charitvs objertives. During the year. the trustees have authorised investment in a freehold property in Spain. This property wès acquired for £4,757,176 and wlll be used as a farmingand cookery School as the charity continuesto promote the culinary arts. FINANaAL REVIEW Flnanclal posltlon Incomin8 resources for the group in the year were £21.158.570- comprising £14.790.889 of donations. £6,241,997 of investment income and £125.684 of trading income. None of the income resources were restricted. A surplus of £20,576,681 was made during the year. As at 310ecember 2020 total con501idated funds were £40.926,719 12019.. £20.350.0381 of which £13,491 12019- £24.5221 is in relation to the non-controllin8 interests. All ol the £40.913.228 12019: £20.325.5161 attributable to the charity relates to general unrestritted fund5. Page 2
COUP4TY HALL ART5 GROUP REPORT OF THE TRusfEES FOR THE YEAR ENDED 31ST DECEM8ER 2020 FINANCIAL REVIEW Investment powers• poll¢y and oblertlb*s A5 required In it5 articles of a550ciation in furtherance of its objert5 and for no other purposes. the A5soclation has the powerto invest the monies of the chartty not immediately required for its purpose5 in or upon such inve5tmentS, 5ecuritie5 or property as may be thought fit. Subject neverthele55 to such condition5 and such consents as may for the time bein8 be imposed or required by law. Reserves policy The Trustees are committed to malntslning a level of unrestrlcted funds as free resenies. The charity's income is subject to property market condition5 and sufficient cash reserves are maintained to allow the charity to take advantsge of projett opportunities and to continue to operate at its forecasted expenditure level for period of twoyears. should a substantial fall in income occur. It is anticipated two years would allow sufficient time for market recovery and based on the most recent bud8eted expenditure the reserves reqU1ment totals £7.5m. FUTURE PLANS The aims and objertives of the charitable group in the future are to continue to raise funds with which to provide a551Stance in the education. acce55 and creation of art5 and culture. The activttie5 planned to achieve these objertions include, and are not limited to. spon50rin8 various motion pirtures to support aspiring script writers, actors and other treative talents. In additlon, the trustee5 11 look to further develop the rental Space within their property aS5et5 in order to generate addilional rental income. The object being that futu rent yields will continue to positivelv contrlbute to the charitles long terni existence. The future direction of the group will remain substantially the same as to date. subject to an ongoin8 monitoring review ty all the Trustees. STRucfuRE, GOVERNANCE AND MANAGEMENT Governing document The charity is controlled by its gthiemin8 documenL a deed of trust and constitutes a charitable incorporated or8anisation. Recruitment and appointment of new trustees Every trustee must be appointed for a tern) of 5 years by a resolution passed at a properly convened meeting of the charitytru5tee5. In 5electin8 individuals for appointment as charity trustee5. the charity tru5tee5 must have regard to the ski115, knowledge and experience needed forthe effettNe administration of the Charitable Incorporated Organisation. As stated in the articles of association the maximum number of trustees is tWee and there must be at least three charity trustee5. If the number falls below this minimurn. the remaining trustee or tru5tee5 may act to call a meetin8 of the charity trustees or appoint a new charity trustee. Organlsational 5trncture The charity trustees mana8e the affairs of the Charttable Incorporation Or8anisation and may for that purpose exercise all the powers of the CIO. Any deci5ion5 rnay betaken either at a meeting of the charitytru5tees or by re501ution in writiri8 or electronic form. Pa8e 3
couriry HALLARTS GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020 STRUCTURE, GOVERNANCE AND MANAGEMENT Indurtion and tralning of new trustee5 The charitytrustees will make availableto each newcharity trustee. on or before his orher first appointment. copy of the current version of the constitution and a copyof the latest trustees annual reportand statement of accounts. Related rtIeS The charitable group is related to the groups of companies headed by London Sky Garden Ltd and Cadogan Entertainment Investments Llmlted via the trustee dlrectorship5 and / or shareholding5 In the aforementioned groups. all of which operate out of The Riverside Buili*n8 at County Hall. All donations receNed during the year have been red from the above-mentioned related parties to facilitate the tharity in its pursuit of its charitsble objectives. STATEMENT OF TRUSTEE5 RESPONSIBILITIES The trustees are responsible for preparing the Report of the Trustees and the financial statement5 in accordance with applicable law and United Kingdom Accountin8 Stsndards (United Kingdom Generally Accepted Accounting Practicel. The law applicable to chartlies in England and Wales. the Charities Act 2011. Charity (Account5 and Reports) Regulations 2008 and the pr¢wisions of the trust deed requires the trustees to prepare consolidated financlal statements for each financial year which give a true and fair view of the state of affairs of the charttable group and of the incoming resource5 and application of sources. includin8 the income and expenditure, of the charitable group for that period. In prepariryg those consolidated finanaal statements, the trustees are required to select suitable accounting policies and then apply them consistentlyi observe the methods and principles in the Charities SORP IFRS 102)- make judgements and estirnate5 that are reasonable and prudent; state whether applicable accounting stsndard5 have been followed. subjert to any material departures disc105ed and explained in the financial statements.. prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the charty will continue in business. The trustees are responsible for keeping proper accountin8 records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements compty with the Charities Act 2011. Ihe Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for tsking reasonable steps for the pVentIOn and detecknon of fraud and other irregularities. Approved by order of the board of trustees on 10 Dember 2021 and signed on its behalf bv: K Okaintr - Trustee Page 4
REPORT OF THE INDEPENDEpif AVDITORS TO THE TRUSTEES OF COUNTY HALL ARTS Oplnion We have audited the financial statements of County Hall Arts Ithe'charity'l and its 5ub5idiaries Ithe"8roup"I for the year ended 31st December 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated Ststement of Financial Posltion. the Charity Statement of Financial Posltion. the Consolidated Statement of Cash Flows and notes to the consolidated financial statements. including a summary of significant accounting policie5. The financial reportinB framework that ha5 been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accountin8 Practice). In our opinion the financial statements- give a true and falr view of the state of the grourfs and charity's affairs as at 315t December 2020 and of the group's incoming resources and application of 50YrS for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Charities Att 2011. Basis for opinion We conducted our audit in accordan with Intemational Standards on Audtting IUKI IISAS (UK)) and applicable law. Our re5pon5ibilities under those Standards are further described in the Auditor5 responsibilities for the audit of the financial statements sertion of our report. We are independent of the charity in accordan with the ethical requirernents that are relevant to our audit of the financial 5taternents in the UK. including the FRC'5 Ethical Standard. and we have fulfilled our other ethical sPonSIbl11t1eS in accordance with these requSrements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basi5 for our opinion. Concluslons relatlng to [n& concern In auditing the financial statements, we have concluded that the trustees, use of the 80ing concern basis of accounting in the preparation of the finandal ststements is appropriate. Based on the work we have performed. we have not Identified any material nrtaIntIeS relating to events or conditions that, individually or collectTvety. may cast Si8nificant doubt on the charity's ability to continue as a going concern for a period of at least twefve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trnstees with respect to 80ing concern are described in the relevant sert15 of thi5 report. Page 5
REPORT OF THE INDEPENDENT AUDITORS TOTHE TRUSTEES OF COUNTY HALL ARTS Other information The tru5tee5 are responsible for the other information. The other informatK)n comprises the information included in the annual reporL Other than the financial stètements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicit stated in our report. we do not express any form of assurnnce conclusion thereon. In connertion with our audit of the financial statements. our sponSibl11ty is to read the other information and, in doing so. consider whether the other informatwjn is Material inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material mi55tatefflents, we are required to determine whether there is a material misstatement in the financial ststements or a material mi55tatement of the other inforniation. If. based on the work we have performed. we conclude that the 15 a material mi5Statement of this other information, we are required to report thatfart. We have nothing to report irb this regard. Matters on vthich TNe are requlred to repixt by ¢ptIon We have nothin8 to report in respert of the following matters where the Charities (Account5 and Reportsl Re8ulatSon5 2008 requires US to report to you if. in our opinion: the information given in the Report ot the Trustees is inconsistent in any material respect with the financial ststements: or Sufficient accounting cordS hève not been kept by the parent entity,. or the parent entity financial statements are not in agreement with the accounting records and returns: or we have not received all the information and explanations we require for our audit. Responslbllllles of Irustee5 As explained more fully in the Statement of Trustees Respon5ibillties. the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessaryto enable the preparation of financial statements that are free from rnatErial misstatement. whether to frnud or error. In preparing the financial ststements. the trustees are responsible for assessin8 the charttable group's ability to continue as a going concern. disdosin& as applicable, matters related to goin8 concern and using the going concern basis of accountin8 unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Page 6
REPORT OF THE INDEPENDENT AUDITORS TO THE TRLisfEES OF COUNTY HALL ARTS Our re5ponslbS1ities for the audit of the finandal statements We have been appointed a5 auditors under Sertion 144 of the Charities Art 2011 and report In accordance with the Act and levant regulations made or having effert theunder. Our objectives are to obtsin reasonable assurance about whether the financial statements as a whole are free from material misstatemenL whether due to fraud or error. and to issue a Repurt of the Independent Auditor5 that includes our opin40n. Reasonable a55urance is a h4Bh level of assurance. but is not a guarantee that an audit conducted in accordance with ISA5 IUKI will always detert a material misstatement when it exists. Misstatements tan arise from fraud or error and are consldered material if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis Df these financial statements. Irregularities, including fraud. are instances of non-compliènce with law5 and regulations. We design procedures in line with our resp)nsibilities, OLrtlined above. to detect material misstatements in SPeCt of irre8ularitie5, including fraud. The extent to whKh our ProdureS are capable of detecting irregularitie5, induding fraud is detailed below: We obtsined an understanding of the legal and regulatory framework applicable to the charity and the sector in which th operate. We determined that the following laws and regulation5 were m05t SlBnificant: the Charities Act 2011. - We obtained an understanding of how the charity is complying with those legal and regulatory frameworks by making inquiries to the management. We corroborated our inquiries through our review of board minute5 and papers provided by those charged wrth governarbce. -we assessed the susceptibillty of the charity's financial statements to material misstatement, Including how fraud might occur. Audit procedures perfomied by the engagement team include.. identifying and asse55ing the de5i8n effectiveness of controLs management has in place to prevent and detect fraud; - under5tandin8 how those char8ed with governance Consered and addre55ed the FtentIal for override of controls or other inappropriate influence over the financial reportin8 process,. challenging assumptions and JIgments made by management in its si8nifKant accounting estimates- identifylnB and testingjournal entrie5. in particular anyjournal entries posted with unusual account combinations.. and assessin8 the extent of compliance with the relevant laws and regulations. We have reviewed the financial statements and considered whether they are consistent with our understanding of the entity or indicate a previously unrecognised risk of material misstatement that could be due to fraud. Afurtherdescription of our respon5ibilrtie5 forthe audit of the financial 5tatement5 is located onthe Financial ReportinB Council's web51te at wwW.frc.org.uVauditors5P0n$ibIllties. This description forms part of our Report of the Independent Auditors. Page 7
REPORT OF THE INDEPENDENT AUDrroRS TO THE TRUSTEE5 OF COUNTY HALL ART5 Useof wr report This report Is made solety to the charity's trustees, as a body. in accordance with Section 144 of the Charities Act 2011 and regulation5 rnade under Settion 154 of that Att. Our audit work ha5 been undertaken so that we might State to the charity's trustees those matters we are required to state to them in an auditors. report and for no other purpose. To the fullest exient perniitted by law, we do not accept or assume responsibility to anyone otr than the chartty and the charity's trustees as a body. for our audit work. for this report. or for the opinion5 we have formed. for and on behalf of Wag5 LLP tla Wa85taffs Chartered Accountants and Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 21) Richmond House Walkern Road Stevenage Hertford5hire SGI 3QP 17 December Date:..................................... 2021 Page 8
CONSOUDATED sfATEMENT OF FINANaAL AcllvTtIES FOR THE YEAR ENDED 31ST OECEMBER 2020 Year Ended Year Ended 31.12.20 31.12.19 Unrestrirted Total fund5 funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies Inve5trnent income Tradin8 income 14.790A89 6,241,997 125.684 2,5(.0 6.283,121 223.637 Ttstsl 11,158?0 9.006,758 EXPENDITURE Raising funds Charitable artivities Direct charitable expenditure Other re50urce5 expended Governance tosts 374,945 380,510 75.174 133,878 9,862 161.421 87.883 9.054 593.859 638.868 Tax 111.970) 3,422 Total 581M9 642.290 NET INCOME RECONCIUATION OF FUNDS Total funds broughtforward 20.350.038 11.985.570 Owners of parnt Non-controllin8 interests ZO,587,712 111.0311 8.363,203 1,265 21 20.576,681 8.364.468 TOTAL FUNDS CARRIED FORWARD 40.926,719 20,350,038 The notes fomi part ofthese financbal ststements Page 9
COUNTY HAU ARTS CONSOUDATED STATEMENT OF FINANaAL POSMON AT 31ST DECEMBER 2020 2020 2019 Unrestrlrted Total funds funds Notes FIXEO ASSETS Tangible assets Heritage assets 14 15 5.586,790 132.510 1.113.993 88.850 5.719,300 1.202,843 CURRENT A55ETS Debtor5 Cash at bank 17 16.972.348 7.390,696 20,225,909 14,044,458 37.198.257 21,435,154 CREDITORS Amounts fallin8 due within one year 18 11.988.620) 12,273,771) NET CURRENT ASSETS 35,209.637 19.161,383 TOTAL ASSET5 LESS CURRENT LIABILMES 40.928,937 20.364,226 PROVISIONS FOR UABIUTIES 19 122181 114.1881 NEf ASSETS 40,926,719 20,350.038 The notes fom part of these finanoal statements Page 10
COUPITY HALLARTS CONSOUDATED STATEMErir OF FINANCIAL POSITION- coKllNUED AT 31ST DECEMBER 2020 2020 2019 Unrestrlcted Totsl funds funds Notes FUNDS Unrestrlrted funds Non<ontrollin8 interests 20 21 40.913,228 20,325.516 13,491 24,522 TOTAL FUNDS 40.926.719 20,350.038 The financial statements were approved by the Board of Trustees on 10 December were signed on its behalf by: 2021 and K okam0t- Trustee The notes fomi part of these financial ststements Page 11
COUNTY HALL ARTS CHARITY STATEMENT OF RNANCIAL POSMON AT 31ST DECEMBER 2020 2020 2019 Unrestrirted Total funds funds Notes FIXED ASSErs Tangible assets Heritage assets Investments 14 15 16 5,575.117 132.510 209,308 835.665 88,850 209.308 5,916,935 1,133,823 CURRENT ASSErs Debtors Cash at bank 17 16,938,90Z 7.334,562 20.052,267 13.975,922 36,991,169 21,310.484 CREDITORS Amounts falling due within one year 18 11.906,992) 12.130.182) NET CURREMT ASSEfs 35,084,177 19.180,302 TOTALASSETS IESS CURRENT UABILITIES 41,WI.IIZ 20,314.125 NET ASSET5 41,CKII.112 20,314,125 The notes form part of these financial 5Latements Page 12
COUNTY HALL ARTS CHARITY STATEMENT OF HNANCIAL P05moN- CONTINUED AT DECEM8ER 2010 2020 2019 Unrestrirted Total funds funds FUND5 Unrestricted funds 41,001,112 20.314,125 TOTAL FUNDS 41.Th)1.112 20,314,125 Charity net movement In funds for the year 20.686.987 8,355,811 The financial statements were approved by the Board of Trustee5 on signed on its behalf by: 10 December 2021 and were K Okamoto- Trustee The notes forni part of these financial ststemet Page 13
COUNTY HALLARTS CONSOUDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2020 Year Ended 31.12.20 Year Ended 31.12.19 Notes Cash flows from operatlry a¢thrttSes: Cash generated from operations 10.727210 7,196,383 Net ¢45h provided by {used in) oper•tinE activitie5 10,727,210 7,196,383 Cash Ilv*s Irom investing artivities: Purchase of fixed assets Disposal of fixed assets 14.802.559) 256 144.3991 Net Cash provided by {u5od in) investin8 actl¥ltEes I445,7$9) 44,399 Change In cash and cash equlvalents In the reportlng perlod Cash and cash eqUalents at the bqlnnlrq of the reportlng perlod 6.181,451 7.151,984 14,IM4N58 6.892,474 Cash and cash equl¥alents at the end of the reporting period 20.225.909 14,044.458 The notes forni part of these financial statements Page 14
COUNTY HALL ARTS JTES TO THE CON5011DATED StATEMENT OF CASH FLOWS FOR THE YEAR ENDED 315T DECEMBER 2020 RECONCILIATION OF NEf INCOME TO CASH FLOW FROM OPERATING AcfiviTIES Year Ended Year Ended 31.12.20 31.12.19 Net Income for the reportlng perknd (as perthe statement of financlal artivities) Adjustments for: Depreciation charges (Decrease) / Increase in defeThed tax provision Increase Sn debtors (Decrease) I InCaSe in cdItorS 20,576MI 8.364.468 29.302 29,659 111.970) 3,422 19,581,643) 11.699.026) 1285.160) 497.860 Net cash provlded by (used Inl OPEratln£ actlvltles 10.727,210 7.196.383 ANALYSIS OF CHANGES IN NEf FUNDS At 1.1.20 Cash flow At 31.12.20 Net cash Cash at bank 14,044A58 6,18L451 20225,909 14.044A58 6.181.451 20.225.909 Totsl 14,044A58 6.181,451 20,225,909 Page 15
couwry HALL ART5 NOTES TO THE CONSOUDATED FINANCIAL ATEmENTS FOR THE YEAR ENDED 31ST OECEMBER 2020 STATufoRY INFORMATlCh County Hall Arts isa tharitable incorporated organi5ation, re8i5tered as a charity in England and Wales. The charity registration number and principal address can be found within the reference and admSnistratlve details on page l. ACCOUNTING POUCIES Basls (rf Prepar1 the flnanclal statements The financial statements of the charitable incorporated oreani5ation. which is a public benefit entfty. have been prepared in accordance with the Charities SORP IFRS 1021 'Accounting and Reporting by Charlties". statement of Recommended Practice applicable to charitie5 preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20191.. Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Iland. and the Companies Act 21x16. The flnancial statements have been prepared under the hlstorical tost convention. The flnanclal statements have been prepared on a going concem basis. Basls of consolklatlon The 8roup consolidated finanaal ststements include the finanaal 5tements of the charity and all of its subsidiary undertakings made up to 31 December 2020. A subsidiary is an entity controlled by the group. Control is power to govern the financial and operating policies of an entity 50 a5 to obtain benefits from Its actfvltles. Where a 5ub55diary ha5 dlfferent accountlng pollcSe5 to the group. adjustments are made to those subsidiary financial statement to apply the group's accounting policies when preparing the consolidated financlal ststements. NoTrcontrolllni Interests Non-controllinE interests at the statement of financial position date. being the portion of the net assets of subsidiaries attributsble to equify interests that are not owned by the Charity, whether directly or Indirert through subsidiaries, are presented in the con501idated statement of financial P051tion as a separate fund. Non-controlling interests in the results of the Group for the year are also separately presented in the consolidated statement of financial artivitie5. Indlvldual Statement of Flfiandal Actlvhles As pemiitted by the Charities Act 2011. the Income Statement of the parent undertakin8 is not presented as part of these financial statements. Slgnlfi(antJu(ements and estlmate5 In the application of the company's accounting policies. which are described throughout note 2, management is requi to make judgements estimates and assumptions about the carrying value of a55ets and liabilitie5 that are not readily apparent from other Sources. The estimates and underlying assumptSons are based on historical experfence and other factors that are considered to be relevant. Actual results may differ from these estimates. Page 16
COUPllY HAtL AR75 NOTES TO THE CONSOUDATED FINANaAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2020 ACCOUNllNG POUCIE5- ¢onthiued 51gnlfifantSudgements arKI estimates The estimates and Undering assumptions are wewed on an ongoing basis. Revisions to accountin8 estlmates are recognised in the period in which the estimate is revised if the revision affett5 only that period, orin the period of the revision and future periods rfthe revision affects both current and future periods. The Key sources of estimation uncertainty that have a signlficant effect on the amounts recognlsed In the financial statements are described below. Useful Economit Life of Tangible Assets: The annual depreciation charge fortangible fixed assets is sensitive to changes in the estimated useful Ilves and residual values of the a55ets. The useful economic lives and residual value5 are re-a55essed annually. They are amended when necessary to reflert current estimate5, based on technological advancement, future investments. economic utilisation. and physical condition of the assets. Income All income is reco8nised in the Ststement of Financial Activities once the charity has entitlement to the funds. It 15 probable that the income will be received, and the amount can be measured reliably. Rental Inrne Rental income from oper*ing leases is recognised on a strai8ht-line basis over the temi of the relevant lease. Inltial dirett e05ts incurred in negotiatlng and arranglng an operating lease are taken to the statement of financial artNlties in the period in which they are incurred. Rental income is invoiced in advance of the per to which it relates and hence 15 shown as deferred Income within Ilabillties on the statement of financial position until the revenue recognition criteria are satisfied. Interest income Interest income 15 Teco8ni5ed when it 15 probable that the economic benefkt will flow to the entity and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principle outstanding and at the effertive interest rate applicable, which is the rate that exartly discounts estimated future cash receipts through the expected lrfe of the financial asset to that asset's net carrying amount on initial recognition. Tradlng In¢ome Trading income is recogni5ed when good5 have been delivered and seTvice5 supplied to customers such that risks and rewards of ownership have transferred to them. Expendltur¢ Liabilities are reco8nised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefit5 will be required in settlement and the amount ot the obligatÉon can be meaSud reliably. Expenditure is accounted for on an accruals basis and has been cla55ified under heading5 that aggregate all c05t related to the category. Where costs cannot be dirertly attributed to particular headlngs they have been allocated to artivitie5 on a basis consistent with the use of resources. Page 17
NOTE5 TO THE CONSOUDATED FINANaAL STATEMEKf5- CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2020 ACCOUNTING pouaE5- continued Expendtture Grants offered Subject to condition5 which haNp not been met at theyear end date are noted as a commitment but not accrued as expenditure. TnEible fixed assets Depreciation is prowded at the following annual rdtes in order to write off each asset over its estimated useful life. Lon8 leasehold Fixtures and T[n85 50 years Straight line and over the lrfe of the lease 20% on cost Herftage assets The heritage assets held by the charity relate to various pieces of arrk. Heritage assets have been recognlsed at cost. No depreciation is provlded on herlta8e assets due to the Indeflnite useful life of the assets. Flxed asset Investments Fixed a55et investments are stated at cost le55 and provision for diminution in value. Ta¥ The charltyls exempt from tax on Its charitsble activities. The subsidiary is sufy'ect to tax at the applicable rates.Taxforthe year comprises current and deferd tax. Tax 15 recognised in the Statement of Financial Activities. except to the extent that it relates to items recognised in other comprehensive income or dirtY In fvnds. Current or deferred tsx assets and1Sabilities are not dbcounted. Current tsx is recognised at the amount of tax payable using the tsx rates and laws that have been enacted or substantive enacted by the statement of finanaal position date. Deferred tax Deferred tax is recognised in resprt of all timin8 differences that have orl8inated but not reversed at the statement of financial posltion date. riming difference5 arise from the inclusion of income and experbses in tax a55e55ments In periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates an(1 laws that have been enacted or substanti¥ety enarted by the year end and that are experted to apply to the reversal of the timing difference. Unrelieved tax losses and other deferred tsx assets are recognised onlytothe extent that it is probable that they will be rKovered a8ainstthe reversal of deferred tax liabilitie5 orotherfuturetaxable profits. PaBe 18
couriry HALL AR75 NOTES TO THE CONSOLIDATED FIP4ANaAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 315T DECEMBER 2020 ACCOUNTING POUCIE5- wntinued Fund accountlni Unrestricted funds can be used in accordance with the tharitable objectives at the discretion of the trustees. Restrirted funds can only be used for particular re5trirted purposes within the objects of the charity. Restrictions arise when Specified by the donor or when fvnds are ralsed for partlcular restrlcted purpose5. All funds were unrestritted as at the perTod end date. Hlre purchase and leasing commitments Rentals paid under operating leases are charged to the Ststement of Financlal Activities on a straight line basis over the period of the lease. Penslon costs and other FX15t-retirement bel The group operate5 a defined contribution pension scheme. Contributions payable to the company's Pen0 scheme are charged to the statement of financval activities in the period to which they relate. Page 19
COUNTY HALL ART5 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- copillNUED FOR THE YEAR ENDED 315T DECEMBER 2020 DONATIONS AND LEGAaES Year Ended Year Ended 31.12.20 31.12.19 Donations 14,790,889 2,500.000 INVEsfMENT INCOME Year Ended Year Ended 31.12.20 31.12.19 Rents received Interest received 6,189.IM16 52.991 6,139.669 143.452 6,241,997 6.283.121 TRADING INCOME Year Ended Year Ended 31.12.20 31.12.19 Income generated from trading attivities 125.684 223.637 Page 20
COUNTY HALL ART5 NOTES TO THE CONSOUDATED FINANaAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2020 RAISING FUNDS Investment manazement costs Year Ended 31.12.20 Year Ended 31.12.19 Rents payable Legal fee5 Consultanry and Design fees 252.580 214 122,151 254.532 2,774 123.204 374.945 380.510 CHARITABLE ACTIVITIES cosrs Grant Direct funding of Support costs altIeS costs (See note 8) (See note 9) Year Ended Totals 31.12.19 Dirett charitable expenditure other resources expended Governance costs 32N50 15,(¥XI 17.724 I3378 9.862 75,174 161,421 133,878 87.833 9.862 9.054 32.450 161A64 218.914 258,308 TAXATION Year Ended 31.12.20 Yèar Ended 31.12.19 Deferred tax 111,9701 Page 21
coup4rY HALL ARTS NOTES TOTHE CONSOLIDATED FINANCIAL sfATEMENfs- CONllNUED FOR THE YEAR ENDED 31ST DECEMBER 2020 GRANTS PAYABLE Year Endtd Year Ended 31.12.20 31.12.19 Direct charitable expenditure 25.( 123.350 The totsl grants awarded during the year was as follows: Year Ended Year Ended 31.12.20 31.12.19 NFrs Picture HDok5 Y Kawasaki Sponsorship 25.0 3.950 loo,000 19,400 25,(M)O 123,350 10. SUPPORT COSTS Governance Costs Management FinarKe Other Totals Direct charitable expenditure Other resource5 expended Governance costs 17,724 37.775 17,7Z4 133.878 9,862 95.990 113 9,862 95,9 55M99 161,464 11. TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or expenses paid for the year ended 31st December 2020 nor for the period ended 31st Dernber 2019. Page 22
COUP4TY HALLART5 NOTE5 TO THE CONSOLIDATED FINANCIAL STATEMENTS- corinNUED FOR THE YEAR ENDED 3] DECEM8ER 2020 12. STAFF COSTS Year Ended Year Ended 31.12.20 31.12.19 Wa8e5 Social security Pension 78,160 52.280 3.938 962 No employees recer¥ed emoluments in excess of £60.rxiJ12019: None) The average number of employees during the year was 3 (2019: 31 13. COMPARATIVE5 FOR THE CONSOLIDATED STATEMENT OF FINANaAL AcfMTlfS Unrestrirted funds INCOME AND ENI)OWMENTS FROM Oonation5 and le8acies Investment Income Trading income 2.500,000 6.283,121 223,637 Total 9.Crf)6,758 EXPENDITURE ON Raising fund5 Charitable artl¥ltles Direct charitsble expenditure Other resources expended Governarbce c05t5 380.510 161.421 87,883 9.054 638,868 3,422 Tax Total 642.290 INCOME RECONCILIATION OF FVNDS Total funds brought forward 11,985,570 Funds attributable to group Non<ontrolling interests 8.363.203 1,265 8.364,468 TOTAL FUNDS CARRIED FORWARD Page 23
COUNTY HAiLART5 r4oTESTO THE CONSOUDATED FINANCIAL STATEMEKfs- CONnNUED FOR THE YEAR ENDED 31ST DECEMBER 2020 I TANGIBLE FIXED ASSETS Group Flxtures and fftUnz5 leuehold Total Cost or valuatlon At 1st January 2020 Addition5 Disposals 886.197 4,757,176 322,047 1,208.244 1,723 4.758,899 {256.799) 1256.7991 At 31st December 2020 5.643,373 66,971 5.710,344 Depreciat5on At 1st January 2020 Charge for year so32 17.724 43.719 11,579 94,251 29.303 At 31st December 2020 6B.2S6 S5398 113.554 Net book value At 31st December 2020 5.575.117 11.673 5.586.790 At 31st December 2019 835,665 278,328 1.113,993 Page 24
COUNTY HALLARTS NOTES TO THE CONSOUDATED FINANaAL STATEMENTS- CONTINUED FOR THE YEAR ENDEO 315T DECEMBER ZOZO 14. TANGIBLE FIXED A55ETS- contlnued Charity Long leasehold Cost At 1st january 2020 Additions B86,197 4,757.176 At 31st December 2020 5,643,373 DepreclatSan At IstJanuary2020 Charge for year 50,532 17,724 At 315t December 2020 68.256 Net l)ook ¥alue At 31st December 2020 5,575.117 At 31st December 2019 835,665 PaBe 25
COUNTY HALL ARTS r40TES TO THE CONSOLIDATED FINANCIAL sfATEMENTS- CONTINUED FOR THE YEAR ENDED 315T DECEMBER 2020 15. HERITAGE ASSEfs Group and Charlty Totsl Market value At 1st January 2020 Addition5 88A50 43 At 315t Dernber 2020 132.510 Net book value At 31st Oecember 2020 132,510 At 31st Oecember 2019 88.850 Pa8e 26
NOTES TO THE CONSOLIDATED FINANaAI STATEMENTS- COKnNUED FOR THE YEAR ENDED 31ST DECEMBER 2020 16. FIXED ASSET INVEsfMEpirs Charlty Equltv Investment In 8roup undertakln15 Market value As at 1st January 2020 and 31t December 2020 209.308 Net book v•lue At 31st December 2020 209,308 At 31st December 2019 209,308 There were no investment assets outside the UK. The charity's investments at the Statement of Financial Position date in the share capital of companies indude the following- Subsidiaries Zen Arts Ltd Registered office- County Hall. Ri¥er5ide Buildings. Westminster Bridge. London. SEI 7PB Company number.. 0759f3404 Nature of business- Specialised design activitie5 Class of shares: Ordinary Holding zozo 2019 Aggregate capital and re5erve5 IL0551 I Profrt for the year 134.914 1110,3071 245.221 12,655 Pa8e 27
COUKtY HALL ARTS NOTES TO THE CONSOUDATED FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31sr DECEMBER 2020 17. DEBTORS: AMOUNTS FALUNG DVE WITHIN ONE YEAR Group Ch•rfty 2019 2020 2019 Trade debtor5 Other debtors 1370,019 15.602329 733.289 1.343.137 6.657,407 15,S95,76S 706,409 6,628.153 16.972348 7,390,696 16,938.902 7.334.562 CREDITORS.. AMOUNT5 FALLING DUE WITHIN ONE YEAR Group Charity 2020 2019 2020 2019 Trade creditors Taxation and social security Other creditor5 171 257,369 1.731.079 315.239 1.958,364 198,763 1,708,229 308,489 1,821.693 1.988.620 2.273.771 1.906,992 2.130,182 Included in other creditors of both the Group and Charity 15 deferred income of El,348.79212019.. £1.558,7431 relating to rent5 received in respect of a future financial period. 19. PROVISIONS FOR LIABIUTIES Group 2020 2019 Delerred tax Accelerated capital allowance5 2.218 14.188 Deferred tax At IstJanuary2020 Provided during year 14,188 111,9701 Balance at 31st December 2020 2.218 Page 28
couriTY HALLARTS NOTES TO THE CONSOUDATED FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2020 20. CONSOLIDATED MOVEMENT IN FUNDS Net movement in fund5 Transfers between fund5 At 31.12.20 At 1.1.20 Unfestrlrted funds General fund Designated funds Nonrycontrolling interest 20.325.516 20.587.712 113.550.000) 27363,228 I350,000 I350,000 13,491 24.522 111.0311 TOTAL FUNDS 20350,038 20,576,681 40,926,719 Net movement in fvnds. included in the above are as follows- Incomlng resources Resource5 Movement expended in funds Unrestricted funds General fund Non-controlllng interests 21.146JXIZ I28 1558,290) ZO,587,712 (23.599) {11,0311 TOTAL FUNDS 21,158,570 1581.8891 20,576,681 Designated funds are eamiarked as such by the recommendation of the trustees for use in performing future charitable activities. As at 31st March 2021. funds have been designated for future charitable activities Including various film projects. 5ponsor5hips to be made by the charity and for the establishment of the MOM Culinary Institute. The trustees believe these eamiarked funds to total £13,550,CW. Page 29
COUNTY HALL ARTS NOTESTO THE CONSQUDATED FINANaAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2020 21. NONIONTROiLING IrirERESTS 2020 2019 On acquisitlon Share of results 23,257 19,7661 23.257 1.265 Closing norKontrolling interests 13.491 24.522 RELATED PARTY DISCLOSURES Durln8 the year County Hall Arts recelved donatlons from related parties totalling £14.790,88912019= £2,5DJ,01. No conditions were attached to these donations. At the financial reporting date an amount of £14,349.539 {2019: £5.1(M),0001 was receNable from Ozu Ltd, a company connected to County Hall Arts through the trustees, involvement in the company. This amount comprise5 of two loan5. £12.487.23412019: £Nil) and £1.862.30512019: £5.100.LX)01. The loan amount of £12.487.23412019: £Nill is repayable by 31st August 2030 and is free of interest. There15 a form31 loan agreement in place for the loan of £1.862.30512019: £5,100.OLKII which states the repayment date to be within the next twelve months and interest 15 to be charged at 2% above the Bank of England base rdte perannum. 23. LEASING AGREEMErirs Minimum estlmated lease payments under non<ancellable operatlng leases fall due as follows: Group and tharlty 2019 Within one year Betweers one and five years In more than five years 213,OlS 802,746 2.(¥)9.893 263,863 992.144 2,278,984 3,025,654 3.534,991 Page 30