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. 

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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 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP (FRS 102); 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

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: 

- give a true and fair view of the state of the group’s and charity's affairs as at 31st December 2021 and of the group’s incoming resources and application of resources 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 Act 2011. 

## **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. 

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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: 

- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or 

- sufficient accounting records have 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. 

## **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: 

- We obtained an understanding of the legal and regulatory framework applicable to the charity and the sector in which they operate. We determined that the following laws and regulations were most significant: 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 minutes and papers provided by those charged with governance. 

- We assessed the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team include: 

- identifying and assessing the design effectiveness of controls management has in 

- place to prevent and detect fraud; 

- understanding how those charged with governance considered and addressed the 

- potential for override of controls or other inappropriate influence over the financial reporting process; 

- challenging assumptions and judgments made by management in its significant 

- accounting estimates; 

- identifying and testing journal entries, in particular any journal entries posted with 

- unusual account combinations; and 

- assessing 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. 

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 

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

## **COUNTY HALL ARTS** 

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

|Notes<br>**INCOME AND ENDOWMENTS FROM**<br>Donations and legacies<br>3<br>Investment income<br>4<br>Trading income<br>5<br>**Total**<br>**EXPENDITURE ON**<br>Raising funds<br>6<br>**Charitable activities**<br>7<br>Direct charitable expenditure<br>Other resources expended<br>Governance costs<br> <br>Tax<br>8<br>**Total**<br>**NET INCOME**<br>**RECONCILIATION OF FUNDS**<br>**Total funds brought forward**<br>Owners of parent<br>Non-controlling interests<br>22<br> <br>Issue of share capital<br>**TOTAL FUNDS CARRIED FORWARD**|Year Ended<br>31.12.22<br>Unrestricted<br>funds<br>£<br>-<br>6,086,911<br> 1,804,480<br>7,891,391 <br>509,798<br>1,389,106 <br>1,267,366 <br>14,027 <br>3,180,297 <br>(8,615) <br>3,171,682<br>4,719,709<br>47,265,232<br>4,828,023<br> (108,314)<br>4,719,709<br>-<br>51,984,941||**Year Ended**<br>**31.12.22**<br>**Total funds**<br>**£**<br>-<br>**6,086,911**<br>**1,804,480**<br>**7,891,391**<br>**509,798** <br>**1,389,106** <br>**1,267,366** <br>**14,027**<br> <br>**3,180,297** <br>**(8,615)**<br>**3,171,682** <br>**4,719,709**<br> <br>**47,265,232** <br>**4,828,023** <br>**(108,314)**<br>**4,719,709**  <br> **-**<br>**51,984,941**<br>|Year Ended<br>31.12.21<br>Total funds<br>£<br>2,312,656<br>5,531,735<br>402,491<br>8,246,882<br>611,625<br>750,511<br>541,769<br> 9,886<br>1,913,791<br> (4,583)<br>1,909,208<br>6,337,674<br>40,926,719<br>6,480,411<br>(142,737)<br>6,337,674<br>839<br>47,265,232|
|---|---|---|---|---|
|||<br> <br> <br> <br>  <br> <br> <br> <br>  <br> <br> <br> <br>|||



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

## **COUNTY HALL ARTS** 

## **CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31ST DECEMBER 2022** 

|<br>Notes<br>**FIXED ASSETS**<br>Tangible assets<br>14<br>Heritage assets<br>15<br>**CURRENT ASSETS**<br>Inventory<br>17<br>Debtors<br>18<br>Cash at bank<br>**CREDITORS**<br>Amounts falling due within one year<br>18<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**PROVISIONS FOR LIABILITIES**<br>19<br>  <br>**NET ASSETS**<br>|2022<br>Unrestricted<br>funds<br>£<br>12,891,626  <br> 176,250<br> <br>13,067,876 <br>3,028,000<br>15,398,033  <br>23,907,062<br> <br> 42,333,095 <br>(3,427,010)<br> <br>38,906,085 <br>51,973,961 <br>10,980<br> 51,984,941|**2022**<br>**Total funds**<br>**£**<br>**12,891,626**<br> <br> **176,250**<br>**13,067,876**<br> **3,028,000**<br>**15,398,033**  <br> **23,907,062**<br> <br>**42,333,095** <br> **(3,427,010)**<br>**38,906,085**<br> <br>**51,973,961** <br>**10,980**<br>**51,984,941**|2021<br>Total funds<br>£<br>10,501,315<br> 167,250<br>10,668,565<br> 3,028,000<br>16,476,770<br>19,838,921<br>39,343,691<br>(2,747,024)<br> 36,596,66<br>47,265,232<br> -<br>47,265,232|
|---|---|---|---|
|||<br> <br>||
|||<br>||



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

## **COUNTY HALL ARTS** 

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

|Notes<br>**FUNDS**<br>Unrestricted funds<br>20<br>Non-controlling interests<br>21<br>**TOTAL FUNDS**|**2022**<br>**Unrestricted**<br>**funds**<br>**£**<br>**52,221,662**<br>**(236,721)**<br>**51,984,941**|2021<br>Total funds<br>£<br>47,393,639<br>(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 

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

## **COUNTY HALL ARTS** 

## **CHARITY STATEMENT OF FINANCIAL POSITION AT 31ST DECEMBER 2022** 

|<br>Notes<br>**FIXED ASSETS**<br>Tangible assets<br>14<br>Heritage assets<br>15<br>Investments<br>16<br>**CURRENT ASSETS**<br>Inventory<br> <br>Debtors<br>17<br>Cash at bank<br>**CREDITORS**<br>Amounts falling due within one year<br>18<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**NET ASSETS**|**2022**<br>**Unrestricted**<br>**funds**<br>**£**<br>**10,805,892**<br>**176,250**<br>**211,747**<br>**11,193,889**<br> **3,028,000**<br>**17,206,729**<br>**23,855,769**<br>**44,090,498**<br>**(2,219,914)**<br>**41,870,584**<br>**53,064,473**<br>**53,064,473**|2021<br>Total funds<br>£<br>8,593,439<br>167,250<br>211,158<br>8,971,847<br> 3,028,000<br>18,324,028<br>19,777,720<br>41,129,748<br>(2,091,476)<br>39,038,272<br>48,010,119<br>48,010,119|
|---|---|---|



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

## **COUNTY HALL ARTS** 

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

|<br>**FUNDS**<br>Unrestricted funds<br> <br>**TOTAL FUNDS**<br>Charity net income for the year|**2022**<br>**Unrestricted**<br>**funds**<br>**£**<br>**53,064,473** <br>**53,064,473**<br>**5,054,354**|2021<br>Total funds<br>£<br> 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** 

|<br>Notes<br>**Cash flows from operating activities:**<br>Cash generated from operations<br>1<br>**Net cash provided by (used in) operating**<br>**activities**<br>**Cash flows from investing activities:**<br>Purchase of fixed assets<br>Disposal of fixed assets<br>**Net cash provided by (used in) investing**<br>**activities**<br>**Cash flows from financing activities**<br>**Change in cash and cash equivalents in the**<br>**reporting period**<br>**Cash and cash equivalents at the beginning of**<br>**the reporting period**<br>**Cash and cash equivalents at the end of the**<br>**reporting period**|**Year Ended**<br>**31.12.22**<br> <br>**£**<br>**6,707,857**<br>**6,707,857**<br>**(2,639,716)**<br>**-**<br>**(2,639,716)**<br>**-**<br>**4,068,141**<br>**19,838,921**<br>**23,907,062**|Year Ended<br>31.12.21<br>£<br>7,695,397<br>7,695,397<br>(8,083,224)<br>-<br>(8,083,224)<br>  <br>(386,988)<br>20,225,909<br>19,838,921|
|---|---|---|



Page 16 



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

## **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** 

|<br>**Net income for the reporting period (as per the statement of**<br>**financial activities)**<br>**Adjustments for:**<br>Depreciation charges<br>Decrease in deferred tax provision<br>Decrease in debtors<br>Increase in creditors<br>**Net cash provided by (used in) operating activities**|**Year Ended**<br>**31.12.22**<br> <br>**£**<br>**4,719,709**<br>**240,405**<br>**(8,615)**<br>**1,076,372**<br>**679,986**<br>**6,707,857**|Year Ended<br>31.12.21<br>£<br>6,337,674<br>105,959<br>(4,583)<br>497,943<br>758,404<br>7,695,397|
|---|---|---|



## **2. ANALYSIS OF CHANGES IN NET FUNDS** 

|**Net cash**<br>Cash at bank<br>**Total**|**At 1.1.22**<br>**£**<br>19,838,921<br>19,838,921<br>**19,838,921**||**Cash flow**<br>**£**<br>4,068,141<br>4,068,141<br>**4,068,141**|**At 31.12.22**<br>**£**<br>23,907,062|
|---|---|---|---|---|
|||||23,907,062<br>**23,907,062**|
||||||



Page 17 



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

## **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. 

Page 18 



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** 

## **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 



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** 

## **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. 

Page 20 



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** 

## **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. 

Page 21 



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** 

|**3.**<br>**DONATIONS AND LEGACIES**<br>**Year Ended**<br>**31.12.22**<br> <br>**£**<br>Donations<br>**-**<br>**4.**<br>**INVESTMENT INCOME**<br>**6,086,911**<br> <br>**5.**<br>**TRADING INCOME**<br>**Year Ended**<br> <br>**31.12.22**<br>**£**<br>Rents received<br>**6,076,430**<br>Interest received<br>**10,481**<br>**Year Ended**<br> <br>**31.12.22**<br>**£**<br>Income generated from trading activities<br>**1,804,480**|Year Ended<br>31.12.21<br>£<br>2,312,656<br>5,531,735<br>Year Ended<br>31.12.21<br>£<br>5,516,073<br>15,662<br>Year Ended<br>31.12.21<br>£<br>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** 

|<br>Rents payable<br>Rates<br>Legal fees<br>Consultancy and Design fees<br>**CHARITABLE ACTIVITIES COSTS**<br>Direct charitable expenditure<br>Other resources expended<br>Governance costs|**Year Ended**<br>Year Ended<br>**31.12.22**<br>31.12.21<br>**£**<br>£<br>**244,656**<br>428,830<br>**-**<br>19,959<br>**83,233**<br>21,948<br>**181,909**<br>140,888<br>**509,798**<br>611,625<br>**Direct**<br>**costs**<br>**Grant**<br>**funding of**<br>**activities**<br>**Support**<br>**costs**<br>**Totals**<br>Year<br>Ended<br>31.12.21<br>**(See note 9)**<br>**(See note**<br>**10)**<br>**£**<br>**£**<br>**£**<br>**£**<br>£<br>**974,210**<br>**175,795**<br>**239,101**<br>**1,389,106**<br>750,511<br>**1,267,366**<br>**1,267,366**<br>541,769<br>**-**<br>**-**<br>**14,027**<br>**14,027**<br>9,886<br>**974,210**<br>**175,950**<br>**1,520,494**<br>**2,670,499**1,302,166|
|---|---|



## **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**<br>**£**<br>Direct charitable expenditure<br>**-**<br>Other resources expended<br>**1,158,900**<br>Governance costs<br>**-**<br>**1,158,900**|**Finance**<br>**£**<br>**-**<br>**3,882**<br>**-**<br>**3,882**|**Other**<br>**Governance**<br>**Totals**<br>**Costs**<br>**£**<br>**£**<br>**£**<br>**239,101**<br>**-**<br>**239,101**<br>**104,584**<br>**-**<br>**1,267,366**<br>**-**<br>**14,027**<br>**14,027**<br>**343,685**<br>**14,027**<br>**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. 

Page 24 



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** 

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

|<br>**Cost or valuation**<br>At 1st January 2022<br>Additions<br>Disposals<br>At 31st December 2022 <br> **Depreciation**<br>At 1st January 2022<br>Charge for year<br> <br>At 31st December 2022<br> <br> **Net book value**<br>At 31st December 2022<br> <br>At 31st December 2021|<br>**Freehold**<br>**7,793,222**<br> **2,230,177**<br> -<br> **10,023,399**<br>**-**<br> **-**<br>  **-**<br> **10,023,399**<br>7,793,222|<br>|<br>**Long**<br>**leasehold**<br>**£**<br>**2,180,191**<br>**205,726**<br>-<br> **2,385,917**<br>**137,740**<br>**154,888**<br>**292,628**<br>**2**,**102,128**<br>2,042,451||**Fixtures**<br>**and**<br>**fittings**<br>**£**<br>**757,415**<br>**194,813**<br>**-**<br>**952,228**<br>**91,773**<br>**85,517**<br>**177,290**<br>**766,099**<br>665,642||**Total**<br>**£**<br>**10,730,828**<br>**2,630,716**<br>**-**|**Total**<br>**£**<br>**10,730,828**<br>**2,630,716**<br>**-**|**Total**<br>**£**<br>**10,730,828**<br>**2,630,716**<br>**-**|
|---|---|---|---|---|---|---|---|---|---|
||||||||**13,361,544**<br>**229,513**<br>**240,405**<br>**469,918**|||
||||||||||**229,513**<br>**240,405**|
||||||||||**469,918**|
||||||||**12,891,626**<br>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**<br> <br>**Cost**<br>At 1st January 2022<br>Additions<br>At 31st December 2022<br>**Depreciation**<br>At 1st January 2022<br>Charge for year<br>At 31st December 2022<br>**Net book value**<br>At 31st December 2022<br>At 31st December 2021|**Long**<br>**Freehold**<br>**Leasehold**<br>**Total**<br>**£**<br>**£**<br>**£**<br> **7,793,222** **886,197**<br>**8,679,419**<br> **2,230,177** **-**<br>**2,230,177**<br> **10,023,399               886,197**<br>**10,909,596**<br>**-** **85,980**<br>**85,980**<br> **-** **17,724**<br>**17,724**<br> **-** **103,704**<br>**103,704**<br> **10,023,399               782,493**<br>**10,805,892**<br>**7,793,222                800,217**<br>**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.**<br>**HERITAGE ASSETS**<br>**Group and Charity**<br>**Total**<br>**£**<br>**Market value**<br>At 1st January 2022<br>**167,250**<br>Additions<br>At 31st December 2022<br>**9,000**<br>**176,250**<br>**Net book value**<br>At 31st December 2022<br>**176,250**<br>At 31st December 2021<br>167,250<br>**16.**<br>**FIXED ASSET INVESTMENTS**<br>**Group and Charity**<br>**Equity**<br>**investment in**<br>**group**<br>**undertakings**<br>**£**<br>**Market value**<br>As at 1st January 2022<br>Additions<br>At 31th December 2022<br>**211,158**<br>  **589**<br> **211,747**<br>**Net book value**<br>At 31st December 2022<br>**211,747**<br>At 31st December 2021<br>**211,158**|**15.**<br>**HERITAGE ASSETS**<br>**Group and Charity**<br>**Total**<br>**£**<br>**Market value**<br>At 1st January 2022<br>**167,250**<br>Additions<br>At 31st December 2022<br>**9,000**<br>**176,250**<br>**Net book value**<br>At 31st December 2022<br>**176,250**<br>At 31st December 2021<br>167,250<br>**16.**<br>**FIXED ASSET INVESTMENTS**<br>**Group and Charity**<br>**Equity**<br>**investment in**<br>**group**<br>**undertakings**<br>**£**<br>**Market value**<br>As at 1st January 2022<br>Additions<br>At 31th December 2022<br>**211,158**<br>  **589**<br> **211,747**<br>**Net book value**<br>At 31st December 2022<br>**211,747**<br>At 31st December 2021<br>**211,158**|**15.**<br>**HERITAGE ASSETS**<br>**Group and Charity**<br>**Total**<br>**£**<br>**Market value**<br>At 1st January 2022<br>**167,250**<br>Additions<br>At 31st December 2022<br>**9,000**<br>**176,250**<br>**Net book value**<br>At 31st December 2022<br>**176,250**<br>At 31st December 2021<br>167,250<br>**16.**<br>**FIXED ASSET INVESTMENTS**<br>**Group and Charity**<br>**Equity**<br>**investment in**<br>**group**<br>**undertakings**<br>**£**<br>**Market value**<br>As at 1st January 2022<br>Additions<br>At 31th December 2022<br>**211,158**<br>  **589**<br> **211,747**<br>**Net book value**<br>At 31st December 2022<br>**211,747**<br>At 31st December 2021<br>**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: 

Page 28 



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** 

## **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<br>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 



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** 

## **18. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Trade debtors<br>Deferred tax<br> <br>Other debtors|**Group**<br>**2022**<br>2021<br>**£**<br>£<br>1,024,380<br>1,956,912<br>10,980                 2,365<br>14,362,673<br>14,517,493<br>**15,398,033**<br>16,476,770|**Charity**<br>**2022**<br>2021<br>**£**<br>£<br>976,946<br>1,960,775<br>-                         -<br>16,229,783<br>16,363,253<br>**17,206,729**18,324,028|
|---|---|---|



## **19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Trade creditors<br>Taxation and social security<br>Other creditors|**Group**<br>**2022**<br>2021<br>**£**<br>£<br>863,466<br>47,200<br>35,412<br>3,680<br>2,528,132<br>2,696,144<br>**3,427,010**<br>2,747,024|**Charity**<br>**2022**<br>2021<br>**£**<br>£<br>-<br>-<br>299,047<br>293,581<br>1,611,619<br>1,797,895<br>**2,219,914**<br>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<br>Accelerated capital allowances<br>Tax losses carried forward<br>At 1st January 2022<br>Provided during year<br>Balance at 31st December 2022|**Group**<br>**2022**<br>2021<br>**£**<br>£<br>324                     572<br>(11,304)<br>(2,937)<br>**Deferred**<br>**tax**<br>**£**<br>(2,365)<br>(8,615)<br>(**10,980)**|
|---|---|



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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** 

## **21. CONSOLIDATED MOVEMENT IN FUNDS** 

|**Unrestricted funds**<br>General fund<br>Designated funds<br>**Sub-total**<br>Non-controlling interest<br>**TOTAL FUNDS**|At 1.1.22<br>£<br>36,243,639<br>11,150,000<br>**47,393,639**<br>(128,407)<br>**47,265,232**|Net<br> <br>movement<br>in funds<br>£<br>1,478,023<br>3,350,000<br> **4,828,023**<br>(108,314)<br>**4,719,709**|Transfers<br>between<br>funds<br>£<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**|At<br>31.12.22<br>£<br>37,721,662<br>14,500,000<br>**52,221,662**<br>(236,721)|
|---|---|---|---|---|
|||||**51,984,941**|



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

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

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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** 

## **22. NON-CONTROLLING INTERESTS** 

|On acquisition<br>Share of results<br>Issue of share capital<br>**Closing non-controlling interests**|**2022**<br>**£**<br>**23,257**<br>**(259,978)**<br> **-**<br>**(236,721)**|2021<br>£<br>23,257<br>(152,503)<br>839<br>(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<br>Between one and five years<br>In more than five years|**Group and charity**<br>**2022**<br>2021<br>**£**<br>£<br>235,047<br>206,076<br>879,288<br>796,548<br>1,610,619<br>1,810,756<br>2,724,954<br>2,813,381|
|---|---|



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

## **COUNTY HALL ARTS** 

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

|<br>**INCOME AND ENDOWMENTS**<br>**Donations and legacies**<br>Donations<br>**Investment income**<br>Rents received<br>Interest received<br>**Trading Income**<br>**Total incoming resources**<br>**EXPENDITURE**<br>**Investment management costs**<br>Rents payable<br>Rates<br>Legal fees<br>Consultancy and Design fees<br>**Charitable activities**<br>Architecture and professional fees<br>Grants to institutions<br>Operating expenses<br>Suppliers<br>Exchange rate variances<br>Other operating leases<br> <br>|**Year Ended**<br>**31.12.22**<br> <br>**£**<br>**-**<br>**6,076,430**<br>**10,481**<br>**1,804,480**<br>**7,891,391**<br>**7,891,391**<br>**244,656**<br>**-**<br>**83,233**<br>**181,909**<br>**509,798**<br>**215,799**<br>**425,795**<br>**316,255**<br>**39,215**<br>**(98,277)**<br>**251,218**<br> <br> <br> <br> <br> <br>**1,150,005**|Year Ended<br>31.12.21<br>£<br>2,312,656<br>5,516,073<br>15,662<br>402,491<br>5,934,226<br>8,246,882<br>428,830<br>19,959<br>21,948<br>140,888<br>611,625<br>124,145<br>103,750<br>266,121<br>17,136<br>142,893<br>-<br>654,045|
|---|---|---|



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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**<br>**Management**<br>Insurance<br>**Finance**<br>Bank charges|**18,494**<br>**18,494**<br>**3,883**|15,752|
|---|---|---|
|||15,752<br>110|



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

## **COUNTY HALL ARTS** 

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

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



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