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 Inde￿ndent 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 Ri￿d Stevenage Hertfordshire SGI 3QP Page I COUNTY HALL ART5 GROUP REPORT OF THE TRusfEES FOR THE YEAR ENDED 31ST DECEMBER Z020 The trustees P￿sent 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 reqU1￿ment 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 tWe￿e 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 r￿￿ed 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 p￿VentIOn and detecknon of fraud and other irregularities. Approved by order of the board of trustees on 10 De￿mber 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 ￿50Yr￿S 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 ￿n￿rtaIntIeS 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 sert1￿5 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 the￿under. 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 Pro￿dureS 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 Cons￿ered and addre55ed the F￿tentIal for override of controls or other inappropriate influence over the financial reportin8 process,. challenging assumptions and J￿Igments 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.uVauditors￿5P0n$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 ot￿r 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 pa￿rnt 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