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2022-12-31-accounts

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

REGISTERED CHARITY NUMBER: 1169698

GROUP REPORT OF THE TRUSTEES AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022

FOR COUNTY HALL ARTS

Menzies LLP Chartered Accountants and Statutory Auditors Richmond House Walkern Road Stevenage Hertfordshire SG1 3QP

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 6
Report of the Independent Auditors 7 to 10
Consolidated Statement of Financial Activities 11
Consolidated Statement of Financial Position 12 to 13
Charity Statement of Financial Position 14 to 15
Consolidated Statement of Cash Flows 16
Notes to the Consolidated Statement of Cash Flows 17
Notes to the Financial Statements 18 to 33
Consolidated Detailed Statement of Financial 34 to 36
Activities

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31ST DECEMBER 2021

TRUSTEES K Okamoto M Okamoto I Martinez PRINCIPAL ADDRESS The Riverside Building County Hall Westminster Bridge Road London SE1 7PB REGISTERED CHARITY NUMBER 1169698

AUDITORS Menzies LLP Chartered Accountants and Statutory Auditors Richmond House Walkern Road Stevenage Hertfordshire SG1 3QP

Page 1

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2022

The trustees present their report with the financial statements of the charitable group for the year ended 31st December 2021. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

To advance the education of people in the arts for the public benefit in particular the arts of, drama, dance, music and motion pictures and culinary arts primarily but not exclusively, through the provision of financial assistance in the education, access and creation of arts and culture. To support 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 picture films.

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 Commission as shown in the objectives above.

We have referred to the guidance on public benefit when reviewing our aims and objectives and in planning our future activities in particular, the Trustees consider how planned activities will contribute to the aims and objectives that they have set.

This public benefit statement forms the basis for all judgements regarding operational reports to the Board meetings, in order to be reassured that the facilities and services currently managed by the charity continue to meet these criteria. At these meetings, the Financial Controller also presents the monthly financial position including taking account of any restricted funds and the Charity's status as a going concern.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

During the year the charity provided £250k funding to produce creative content including filmmaker, animator, visual artist & musician sponsorships some of which included international arts education. These sponsorships resulted in the creation of over 70 short films which were all published on the County Hall Arts website for public viewing. During the year the charity also ran a “Riverside Views” landscape painting competition, held a public exhibition of the shortlisted paintings submitted, and awarded the winner and two runners up prize money of £10k and £1k respectively. Later in the year another competition opened for the composing of a symphony inspired by Kyoto. This “Symphony Kyoto” concours will award a winner €50k and up to 5 other shortlisted entrants €10k each. The competition winner will be selected in 2023 with an orchestra performance of the winning work then intended to follow. The Trustees plan to continue to hold regular competitions in future with all competitions open to the general public and involving industry professionals in the selection and judging of the works submitted.

During the year the feature film “Living” (£3m investment funding provided by County Hall Arts in 2022) was released. The film received many positive critic and audience reviews as well as industry awards nominations. The Trustees continue to look for opportunities for the charity to support the production of quality feature length films which are considered to have artistic merit and positive themes but are unlikely to receive full commercial funding.

The MOM Culinary Institute established by County Hall Arts in Madrid in 2021 continued to provide education in the culinary arts to 120 students studying to complete their 2 year Diplomas, the first cohort to graduate will do so in 2023. During the year the charity provided £165k in course & student sponsorship funding. The Trustees are pleased with the progress of the school and the charity will continue its financial support in 2023.

Page 2

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2022

In 2021 the acquisition of a property in San Sebastian was completed with it to be used for the establishment of a Classical Music school. During 2022 the Trustees released €520k of funds to obtain usage permission and conduct repairs to the exterior of the property as well creating student accommodation facilities including 23 furnished bedrooms with en suites. The Trustees have spoken with a number of potential partners regarding the creation of the school however the search is ongoing.

In 2022 the charity began construction of facilities to house an agricultural & culinary arts university at its property in El Pardo, Madrid. During the year funds were released in the amount £1.76m for the refurbishment, change of use, as well as the creation of classroom and kitchen facilities, student accommodation and botanical gardens. The university named Madrid Culinary Campus (MACC) will initially offer a Degree in Gastronomy and Culinary Innovation with plans for further training courses to be established in future. Construction will continue in 2023 with the university scheduled to open later that year.

FINANCIAL REVIEW

Financial position

Incoming resources for the group in the year were £7,891,391: comprising £6,086,911 of investment income and £1,804,480 of trading income. None of the income resources were restricted.

A surplus of £4,719,709 was made during the year. As at 31 December 2022 total consolidated funds were £51,984,941 (2021: £47,264,393) of which £108,314 (2021: £142,737) is in relation to the non-controlling interests. All of the £51,984,941 (2021: £47,393,639) attributable to the charity relates to general unrestricted funds.

Page 3

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2022

FINANCIAL REVIEW

Investment powers, policy and objectives

As required in its articles of association in furtherance of its objects and for no other purposes, the Association has the power to invest the monies of the charity not immediately required for its purposes in or upon such investments, securities or property as may be thought fit, subject nevertheless to such conditions and such consents as may for the time being be imposed or required by law.

Reserves policy

The Trustees are committed to maintaining a level of unrestricted funds as free reserves. The charity’s income is subject to property market conditions and sufficient cash reserves are maintained to allow the charity to take advantage of project opportunities and to continue to operate at its forecasted expenditure level for a period of five years, should a substantial fall in income occur. It is anticipated five years would allow sufficient time for market recovery and based on the most recent budgeted expenditure the reserves requirement totals £15m.

The Trustees have ear marked future expenditure on the following projects:

For the creation of a new creative arts feature length film to inspire and educate involving both emerging talent and recent film school graduates £10,000,000 For commissioning emerging film makers to create short films with educational and artistic focus £500,000 Committed to sponsorships for scholarships for book illustrators, creative art students, culinary art students, painting, music, and film making £500,000 For the set up of a new Culinary Arts & Agriculture School in El Pardo and a Music and Culinary School in St Sebastian. £3,500,000 Total Expenditure £14,500,000

Total Expenditure

FUTURE PLANS

The aims and objectives of the charitable group in the future are to continue to raise funds with which to provide assistance in the education, access and creation of arts and culture. The activities planned to achieve these objections include, and are not limited to, sponsoring various motion pictures to support aspiring script writers, actors and other creative talents.

In addition, the trustees will look to further develop the rental space within their property assets in order to generate additional rental income. The object being that future rent yields will continue to positively contribute to the charities long term existence.

The future direction of the group will remain substantially the same as to date, subject to an ongoing monitoring review by all the Trustees.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust and constitutes a charitable incorporated organisation.

Page 4

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

GROUP REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST DECEMBER 2022

Recruitment and appointment of new trustees

Every trustee must be appointed for a term of 5 years by a resolution passed at a properly convened meeting of the charity trustees. In selecting individuals for appointment as charity trustees, the charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the Charitable Incorporated Organisation.

As stated in the articles of association the maximum number of trustees is twelve and there must be at least three charity trustees. If the number falls below this minimum, the remaining trustee or trustees may act to call a meeting of the charity trustees or appoint a new charity trustee.

Organisational structure

The charity trustees manage the affairs of the Charitable Incorporation Organisation and may for that purpose exercise all the powers of the CIO.

Any decisions may be taken either at a meeting of the charity trustees or by resolution in writing or electronic form.

Page 5

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

GROUP REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST DECEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Induction and training of new trustees

The charity trustees will make available to each new charity trustee, on or before his or her first appointment, a copy of the current version of the constitution and a copy of the latest trustees annual report and statement of accounts.

Related parties

The charitable group is related to the groups of companies headed by London Sky Garden Ltd and Cadogan Entertainment Investments Limited via the trustees’ directorships and / or shareholdings in the aforementioned groups, all of which operate out of The Riverside Building at County Hall.

All donations received during the year have been received from the above-mentioned related parties to facilitate the charity in its pursuit of its charitable objectives.

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare consolidated financial statements for each financial year which give a true and fair view of the state of affairs of the charitable group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing those consolidated financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting 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 comply with the Charities Act 2011, the 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 taking reasonable steps for the prevention and detection of fraud and other irregularities.

31-Oct-2023

Approved by order of the board of trustees on 2023 and signed on its behalf by:

............................................. K Okamoto - Trustee

Page 6

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF COUNTY HALL ARTS

Opinion

We have audited the financial statements of County Hall Arts (the 'charity') and its subsidiaries (the “group”) for the year ended 31st December 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Statement of Financial Position, the Charity Statement of Financial Position, the Consolidated Statement of Cash Flows and notes to the consolidated financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Page 7

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF COUNTY HALL ARTS

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements 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 explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially 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 misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF COUNTY HALL ARTS

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF COUNTY HALL ARTS

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work has 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 extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

for and on behalf of Menzies LLP Chartered Accountants and Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Richmond House Walkern Road Stevenage Hertfordshire SG1 3QP

31-Oct-2023 Date: ..................................... 2023

Page 10

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Investment income
4
Trading income
5
Total
EXPENDITURE ON
Raising funds
6
Charitable activities
7
Direct charitable expenditure
Other resources expended
Governance costs

Tax
8
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
Owners of parent
Non-controlling interests
22

Issue of share capital
TOTAL FUNDS CARRIED FORWARD
Year Ended
31.12.22
Unrestricted
funds
£
-
6,086,911
1,804,480
7,891,391
509,798
1,389,106
1,267,366
14,027
3,180,297
(8,615)
3,171,682
4,719,709
47,265,232
4,828,023
(108,314)
4,719,709
-
51,984,941
Year Ended
31.12.22
Total funds
£
-
6,086,911
1,804,480
7,891,391
509,798
1,389,106
1,267,366
14,027

3,180,297
(8,615)
3,171,682
4,719,709

47,265,232
4,828,023
(108,314)
4,719,709
-
51,984,941
Year Ended
31.12.21
Total funds
£
2,312,656
5,531,735
402,491
8,246,882
611,625
750,511
541,769
9,886
1,913,791
(4,583)
1,909,208
6,337,674
40,926,719
6,480,411
(142,737)
6,337,674
839
47,265,232












Page 11

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31ST DECEMBER 2022


Notes
FIXED ASSETS
Tangible assets
14
Heritage assets
15
CURRENT ASSETS
Inventory
17
Debtors
18
Cash at bank
CREDITORS
Amounts falling due within one year
18
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
PROVISIONS FOR LIABILITIES
19

NET ASSETS
2022
Unrestricted
funds
£
12,891,626
176,250

13,067,876
3,028,000
15,398,033
23,907,062

42,333,095
(3,427,010)

38,906,085
51,973,961
10,980
51,984,941
2022
Total funds
£
12,891,626

176,250
13,067,876
3,028,000
15,398,033
23,907,062

42,333,095
(3,427,010)
38,906,085

51,973,961
10,980
51,984,941
2021
Total funds
£
10,501,315
167,250
10,668,565
3,028,000
16,476,770
19,838,921
39,343,691
(2,747,024)
36,596,66
47,265,232
-
47,265,232



Page 12

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION - CONTINUED AT 31ST DECEMBER 2022

Notes
FUNDS
Unrestricted funds
20
Non-controlling interests
21
TOTAL FUNDS
2022
Unrestricted
funds
£
52,221,662
(236,721)
51,984,941
2021
Total funds
£
47,393,639
(128,407)
47,265,232

The financial statements were approved by the Board of Trustees on 2023 and were signed on 31-Oct-2023 its behalf by:

............................................. K Okamoto - Trustee

Page 13

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

CHARITY STATEMENT OF FINANCIAL POSITION AT 31ST DECEMBER 2022


Notes
FIXED ASSETS
Tangible assets
14
Heritage assets
15
Investments
16
CURRENT ASSETS
Inventory

Debtors
17
Cash at bank
CREDITORS
Amounts falling due within one year
18
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
2022
Unrestricted
funds
£
10,805,892
176,250
211,747
11,193,889
3,028,000
17,206,729
23,855,769
44,090,498
(2,219,914)
41,870,584
53,064,473
53,064,473
2021
Total funds
£
8,593,439
167,250
211,158
8,971,847
3,028,000
18,324,028
19,777,720
41,129,748
(2,091,476)
39,038,272
48,010,119
48,010,119

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COUNTY HALL ARTS

CHARITY STATEMENT OF FINANCIAL POSITION - CONTINUED AT 31ST DECEMBER 2022


FUNDS
Unrestricted funds

TOTAL FUNDS
Charity net income for the year
2022
Unrestricted
funds
£
53,064,473
53,064,473
5,054,354
2021
Total funds
£
48,010,119
48,010,119
7,009,007

The financial statements were approved by the Board of Trustees on 2023 and were 31-Oct-2023 signed on its behalf by:

............................................. K Okamoto - Trustee

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DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2022


Notes
Cash flows from operating activities:
Cash generated from operations
1
Net cash provided by (used in) operating
activities
Cash flows from investing activities:
Purchase of fixed assets
Disposal of fixed assets
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period
Year Ended
31.12.22

£
6,707,857
6,707,857
(2,639,716)
-
(2,639,716)
-
4,068,141
19,838,921
23,907,062
Year Ended
31.12.21
£
7,695,397
7,695,397
(8,083,224)
-
(8,083,224)

(386,988)
20,225,909
19,838,921

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2022

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES


Net income for the reporting period (as per the statement of
financial activities)
Adjustments for:
Depreciation charges
Decrease in deferred tax provision
Decrease in debtors
Increase in creditors
Net cash provided by (used in) operating activities
Year Ended
31.12.22

£
4,719,709
240,405
(8,615)
1,076,372
679,986
6,707,857
Year Ended
31.12.21
£
6,337,674
105,959
(4,583)
497,943
758,404
7,695,397

2. ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank
Total
At 1.1.22
£
19,838,921
19,838,921
19,838,921
Cash flow
£
4,068,141
4,068,141
4,068,141
At 31.12.22
£
23,907,062
23,907,062
23,907,062

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022

1. STATUTORY INFORMATION

County Hall Arts is a charitable incorporated organisation, registered as a charity in England and Wales. The charity registration number and principal address can be found within the reference and administrative details on page 1.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable incorporated organisation, which is a public benefit entity, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis.

Basis of consolidation

The group consolidated financial statements include the financial statements of the charity and all of its subsidiary undertakings made up to 31 December 2022. A subsidiary is an entity controlled by the group. Control is power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statement to apply the group's accounting policies when preparing the consolidated financial statements.

Non-controlling interests

Non-controlling interests at the statement of financial position date, being the portion of the net assets of subsidiaries attributable to equity interests that are not owned by the Charity, whether directly or indirectly through subsidiaries, are presented in the consolidated statement of financial position 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 activities.

Individual Statement of Financial Activities

As permitted by the Charities Act 2011, the Income Statement of the parent undertaking is not presented as part of these financial statements.

Significant judgements and estimates

In the application of the company's accounting policies, which are described throughout note 2, management is required to make judgements estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

2. ACCOUNTING POLICIES - continued

Significant judgements and estimates

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Useful Economic Life of Tangible Assets:

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation, and physical condition of the assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.

Rental income

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are taken to the statement of financial activities in the period in which they are incurred. Rental income is invoiced in advance of the period to which it relates and hence is shown as deferred income within liabilities on the statement of financial position until the revenue recognition criteria are satisfied.

Interest income

Interest income is recognised when it is probable that the economic benefit 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 effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Trading income

Trading income is recognised when goods have been delivered and services supplied to customers such that risks and rewards of ownership have transferred to them.

Expenditure

Liabilities are recognised 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 benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Page 19

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

2. ACCOUNTING POLICIES - continued

Expenditure

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long leasehold - 50 years straight line and over the life of the lease Fixtures and fittings - 20% on cost

Heritage assets

The heritage assets held by the charity relate to various pieces of artwork. Heritage assets have been recognised at cost. No depreciation is provided on heritage assets due to the indefinite useful life of the assets.

Fixed asset investments

Fixed asset investments are stated at cost less and provision for diminution in value.

Inventory

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Film rights are stated at the lower of minimum guarantee payments less value charged against sales and net realisable value. Minimum guarantee costs are expensed in line with the expected sales profile over the period of expected sales.

Tax

The charity is exempt from tax on its charitable activities.

The subsidiary is subject to tax at the applicable rates. Tax for the year comprises current and deferred tax. Tax is recognised in the Statement of Financial Activities, except to the extent that it relates to items recognised in other comprehensive income or directly in funds.

Current or deferred tax assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity.

Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

All funds were unrestricted as at the period end date.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the statement of financial activities in the period to which they relate.

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

3.
DONATIONS AND LEGACIES
Year Ended
31.12.22

£
Donations
-
4.
INVESTMENT INCOME
6,086,911

5.
TRADING INCOME
Year Ended

31.12.22
£
Rents received
6,076,430
Interest received
10,481
Year Ended

31.12.22
£
Income generated from trading activities
1,804,480
Year Ended
31.12.21
£
2,312,656
5,531,735
Year Ended
31.12.21
£
5,516,073
15,662
Year Ended
31.12.21
£
402,491

Page 22

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

6. RAISING FUNDS


Rents payable
Rates
Legal fees
Consultancy and Design fees
CHARITABLE ACTIVITIES COSTS
Direct charitable expenditure
Other resources expended
Governance costs
Year Ended
Year Ended
31.12.22
31.12.21
£
£
244,656
428,830
-
19,959
83,233
21,948
181,909
140,888
509,798
611,625
Direct
costs
Grant
funding of
activities
Support
costs
Totals
Year
Ended
31.12.21
(See note 9)
(See note
10)
£
£
£
£
£
974,210
175,795
239,101
1,389,106
750,511
1,267,366
1,267,366
541,769
-
-
14,027
14,027
9,886
974,210
175,950
1,520,494
2,670,4991,302,166

7. CHARITABLE ACTIVITIES COSTS

8. TAXATION
Year Ended Year Ended
31.12.22 31.12.21
£ £
Deferred tax 8,615 4,583
8,615 4,583

Page 23

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

9. GRANTS PAYABLE

Year Ended Year Ended
31.12.22 31.12.21
£ £
Direct charitable expenditure 175,795 103,750
The total grants awarded during the year was as follows:
Year Ended Year Ended
31.12.22 31.12.21
£ £
NFTS 14,613 3,750
Picture Hooks - 100,000
Agricooking S.L. 149,182 -
Riverside Views 12,000 -
175,795 103,750

The total grants awarded during the year was as follows:

10. SUPPORT COSTS

Management
£
Direct charitable expenditure
-
Other resources expended
1,158,900
Governance costs
-
1,158,900
Finance
£
-
3,882
-
3,882
Other
Governance
Totals
Costs
£
£
£
239,101
-
239,101
104,584
-
1,267,366
-
14,027
14,027
343,685
14,027
1,520,494

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or expenses paid for the year ended 31st December 2022 nor for the period ended 31st December 2021.

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

12. STAFF COSTS

Year Ended Year Ended
31.12.22 31.12.21
£ £
Wages 930,238 482,530
Social security 225,654 17,044
Pension 3,008 3,022
1,158,900 502,596

No employees received emoluments in excess of £60,000 (2021: £60,000)

The average number of employees during the year was 32 (2021: 14)

13. COMPARATIVES FOR THE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies 2,312,656
Investment income 5,531,735
Trading income402,491
Total8,246,882
EXPENDITURE ON
Raising funds 611,625
Charitable activities
Direct charitable expenditure 750,511
Other resources expended 541,769
Governance costs9,886
Tax(4,583)
Total1,909,208
NET INCOME6,337,674
RECONCILIATION OF FUNDS
Total funds brought forward
40,926,719
Funds attributable to group
6,480,411
Non-controlling interests
(142,737)
TOTAL FUNDS CARRIED FORWARD
47,265,232
Total funds
£
2,312,656
5,531,735
402,491
8,246,882
611,625
750,511
541,769
9,886
(4,583)
1,909,208
6,337,674
40,926,719
6,480,411
(142,737)
47,265,232

Page 25

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

14. TANGIBLE FIXED ASSETS

Group


Cost or valuation
At 1st January 2022
Additions
Disposals
At 31st December 2022
Depreciation
At 1st January 2022
Charge for year

At 31st December 2022

Net book value
At 31st December 2022

At 31st December 2021

Freehold
7,793,222
2,230,177
-
10,023,399
-
-
-
10,023,399
7,793,222


Long
leasehold
£
2,180,191
205,726
-
2,385,917
137,740
154,888
292,628
2,102,128
2,042,451
Fixtures
and
fittings
£
757,415
194,813
-
952,228
91,773
85,517
177,290
766,099
665,642
Total
£
10,730,828
2,630,716
-
Total
£
10,730,828
2,630,716
-
Total
£
10,730,828
2,630,716
-
13,361,544
229,513
240,405
469,918
229,513
240,405
469,918
12,891,626
10,501,315

Page 26

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

14. TANGIBLE FIXED ASSETS - continued

Charity

Cost
At 1st January 2022
Additions
At 31st December 2022
Depreciation
At 1st January 2022
Charge for year
At 31st December 2022
Net book value
At 31st December 2022
At 31st December 2021
Long
Freehold
Leasehold
Total
£
£
£
7,793,222 886,197
8,679,419
2,230,177 -
2,230,177
10,023,399 886,197
10,909,596
- 85,980
85,980
- 17,724
17,724
- 103,704
103,704
10,023,399 782,493
10,805,892
7,793,222 800,217
8,593,439

Page 27

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

15.
HERITAGE ASSETS
Group and Charity
Total
£
Market value
At 1st January 2022
167,250
Additions
At 31st December 2022
9,000
176,250
Net book value
At 31st December 2022
176,250
At 31st December 2021
167,250
16.
FIXED ASSET INVESTMENTS
Group and Charity
Equity
investment in
group
undertakings
£
Market value
As at 1st January 2022
Additions
At 31th December 2022
211,158
589
211,747
Net book value
At 31st December 2022
211,747
At 31st December 2021
211,158
15.
HERITAGE ASSETS
Group and Charity
Total
£
Market value
At 1st January 2022
167,250
Additions
At 31st December 2022
9,000
176,250
Net book value
At 31st December 2022
176,250
At 31st December 2021
167,250
16.
FIXED ASSET INVESTMENTS
Group and Charity
Equity
investment in
group
undertakings
£
Market value
As at 1st January 2022
Additions
At 31th December 2022
211,158
589
211,747
Net book value
At 31st December 2022
211,747
At 31st December 2021
211,158
15.
HERITAGE ASSETS
Group and Charity
Total
£
Market value
At 1st January 2022
167,250
Additions
At 31st December 2022
9,000
176,250
Net book value
At 31st December 2022
176,250
At 31st December 2021
167,250
16.
FIXED ASSET INVESTMENTS
Group and Charity
Equity
investment in
group
undertakings
£
Market value
As at 1st January 2022
Additions
At 31th December 2022
211,158
589
211,747
Net book value
At 31st December 2022
211,747
At 31st December 2021
211,158
211,747
211,158

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 include the following:

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

Subsidiaries

Zen Arts Ltd

Registered office: County Hall, Riverside Buildings, Westminster Bridge, London, SE1 7PB Company number: 07596404

Nature of business: Specialised design activities

%
Class of shares: Holding
Ordinary 90.00

Agricooking Global SL

Registered office: Calle Serrano, 95, Madrid 28006, Madrid. Company number: B42801324

Nature of business: Cookery school

Company number: B42801324
Nature of business: Cookery school
%
Class of shares: Holding
Ordinary 82.50
Agricooking SL

Registered office: Calle Serrano, 95, Madrid 28006, Madrid. Company number: B42801324 Nature of business: Cookery school % Class of shares: Holding Ordinary 82.50

Agricooking El Pardo SL Registered office: Calle Serrano, 95, Madrid 28006, Madrid. Company number: B44594224 Nature of business: Cookery school % Class of shares: Holding Ordinary 82.50

Page 29

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

17. INVENTORY
Group
2022
Total
£
Market value
At 1st January 2022 3,028,000
Additions
3,028,000
At 31st December 2022
Net book value
At 31st December 2022 3,028,000
At 31st December 2021 3,028,000

Page 30

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

18. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Deferred tax

Other debtors
Group
2022
2021
£
£
1,024,380
1,956,912
10,980 2,365
14,362,673
14,517,493
15,398,033
16,476,770
Charity
2022
2021
£
£
976,946
1,960,775
- -
16,229,783
16,363,253
17,206,72918,324,028

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Taxation and social security
Other creditors
Group
2022
2021
£
£
863,466
47,200
35,412
3,680
2,528,132
2,696,144
3,427,010
2,747,024
Charity
2022
2021
£
£
-
-
299,047
293,581
1,611,619
1,797,895
2,219,914
2,091,476

Included in other creditors of both the Group and Charity is deferred income of £1,934,584 (2021: £1,427,985) relating to rents received in respect of a future financial period.

20. PROVISIONS FOR LIABILITIES

Deferred tax
Accelerated capital allowances
Tax losses carried forward
At 1st January 2022
Provided during year
Balance at 31st December 2022
Group
2022
2021
£
£
324 572
(11,304)
(2,937)
Deferred
tax
£
(2,365)
(8,615)
(10,980)

Page 31

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

21. CONSOLIDATED MOVEMENT IN FUNDS

Unrestricted funds
General fund
Designated funds
Sub-total
Non-controlling interest
TOTAL FUNDS
At 1.1.22
£
36,243,639
11,150,000
47,393,639
(128,407)
47,265,232
Net

movement
in funds
£
1,478,023
3,350,000
4,828,023
(108,314)
4,719,709
Transfers
between
funds
£
-
-
-
-
-
At
31.12.22
£
37,721,662
14,500,000
52,221,662
(236,721)
51,984,941

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Non-controlling interests
TOTAL FUNDS
Incoming
resources
£
7,891,391
-
7,891,391
Resources
expended
£
3,279,995
(108,314)
3,171,681
Movement
in funds
£
4,828,023
(108,314)
4,719,709

Purpose of funds

Designated funds are earmarked as such by the recommendation of the trustees for use in performing future charitable activities. As at 31st December 2022, funds have been designated for future charitable activities including various film projects, sponsorships to be made by the charity and for the establishment of the MOM Culinary Institute. The trustees believe these earmarked funds to total £14,500,000.

Page 32

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2022

22. NON-CONTROLLING INTERESTS

On acquisition
Share of results
Issue of share capital
Closing non-controlling interests
2022
£
23,257
(259,978)
-
(236,721)
2021
£
23,257
(152,503)
839
(128,407)

23. RELATED PARTY DISCLOSURES

During the year County Hall Arts received no donations from related parties (2021: £2,312,656).

At the financial reporting date an amount of £12,487,209 (2021: £13,128,249) was receivable from Ozu Ltd, a company connected to County Hall Arts through the trustees' involvement in the company.

24 . LEASING AGREEMENTS

Minimum estimated lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years
In more than five years
Group and charity
2022
2021
£
£
235,047
206,076
879,288
796,548
1,610,619
1,810,756
2,724,954
2,813,381

Page 33

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

DETAILED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2022


INCOME AND ENDOWMENTS
Donations and legacies
Donations
Investment income
Rents received
Interest received
Trading Income
Total incoming resources
EXPENDITURE
Investment management costs
Rents payable
Rates
Legal fees
Consultancy and Design fees
Charitable activities
Architecture and professional fees
Grants to institutions
Operating expenses
Suppliers
Exchange rate variances
Other operating leases

Year Ended
31.12.22

£
-
6,076,430
10,481
1,804,480
7,891,391
7,891,391
244,656
-
83,233
181,909
509,798
215,799
425,795
316,255
39,215
(98,277)
251,218





1,150,005
Year Ended
31.12.21
£
2,312,656
5,516,073
15,662
402,491
5,934,226
8,246,882
428,830
19,959
21,948
140,888
611,625
124,145
103,750
266,121
17,136
142,893
-
654,045

Page 34

DocuSign Envelope ID: 330C1275-0851-40C7-B065-ABA7BDEFE397

COUNTY HALL ARTS

DETAILED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2022

Support costs
Management
Insurance
Finance
Bank charges
18,494
18,494
3,883
15,752
15,752
110

Page 35

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COUNTY HALL ARTS

DETAILED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2022


Other
Leasehold depreciation
Fixtures and fittings depreciation
Wages
Social security
Pensions
Telephone
Post and stationery
Advertising
Travelling
Computer costs
Licenses and insurance
Sundry expenses
Subscriptions
Legal and professional fees
Governance costs
Auditors’ remuneration
Deferred tax
Total resources expended
Net income
Year Ended
31.12.22
£
239,101
1,304
930,238
225,654
3,007
4,735
394
13,781
1,347
212
134
611
2,136
61,435
1,484,090
14,027
14,027
(8,615)
3,171,682
4,719,709
Year Ended
31.12.21
£
96,466
9,493
482,530
17,044
3,022
1,810
541
-
124
115
134
6,490
1,921
2,683
622,373
9,886
9,862
(4,583)
1,909,208
6,337,674

Page 36