2021-05-31-accounts - The Koppel Project

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Charity Registration Number: 1171650

THE KOPPEL PROJECT FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2021

INDEX Legal and administrative information Trustees’ Report Independent Examiner’s Report Statement of financial activities Balance Sheet Notes to the Financial Statements	Page
	1 2-4 5 6 7 8-12

THE KOPPEL PROJECT TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MAY 2021

Register Charity Name The Koppel Project Charity Number 1171650 Principal Address C/O 75 Maygrove Road London NW6 2EG Trustees Amir Shaikh Gabriel Gherscovic (resigned 9 November 2022) Maria Lopez Freire Independent Examiners Goldwins Chartered Accountants 75 Maygrove Road West Hampstead London NW6 2EG

THE KOPPEL PROJECT TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MAY 2021

The trustees present their report and accounts for the year ended 31 May 2021.

The financial statements have been prepared in accordance with 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 (FRS102- effective 1 January 2015- (Charities SORP FRS 102).

Structure, governance and management

The Governing document is a Charitable Incorporated Organisation Foundation Constitution dated 7[th] December 2016.The trustees meet quarterly to determine the general policy of the charity. The board is kept rather small to allow work being done efficiently.

The Trustees who served the charity during the year were as follows:

Amir Shaikh
Gabriel Gherscovic (resigned 9 November 2022)
Maria Lopez Freire

None of the trustees have any beneficial interest in the charity.

Appointing and electing trustees

A trustee is elected for the term of three years and may subsequently, whether before or after the expiration the term, be elected again for another term. Any competent trustee may be reappointed. There are inductions and training programs for new trustees. This includes Health and Safety training and objectives of the charity are clearly explained by way of the CIO constitution.

Risk management

The trustees have assessed the major risks to which the charity is exposed. In particular, they have reviewed the bank overdraft arrangements and the ability of the charity to meet its future commitments. The trustees are satisfied that systems are in place to mitigate such risks.

Objects and activities for public benefit

The objectives of the trust are relief of poverty through the provision of general education, support and training. The advancement of education in particular in the arts by providing access to works of contemporary art through exhibitions and at public facilities. The promotion of the arts by cultivating artistic development, through education and training, by mentoring artists working within the field of contemporary art and by providing public seminars on related topics. The advancement of such other charitable purposes as are charitable according to English law.

Grant making policies

All grants are made for the purpose of fulfilling a public benefit in the UK or worldwide. This is accordance with s17 Charities Act 2011. The trust is established for the relief of poverty through the provision of general education, support and training. As such our grant making policy is geared towards these objectives.

Achievements and performance

The charity has successfully supported over a hundred artists at the Holborn campus providing studio space and workshops as well as residence art exhibitions since the formation of the charity. In addition, the charity has provided support to various education programs focusing on English, Security and Forklift courses in order to help relief of poverty through education. A new venue in Central London is available for the provision of more artist studios, art gallery and an

THE KOPPEL PROJECT TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MAY 2021

event space for talks and seminars. Grants are continuously being provided to learners for the provision of licenses to enter the workplace through employment opportunities.

Financial review

The financial statements for the year show an income of £935,411 (2020: £932,774) for the year ended 31 May 2021. After expenditure of £932,866 (2020: £914,377) there was a surplus of £2,545 (2020 surplus of £18,397).

All funds held at the year end are unrestricted. As a result of the funds received in the year the reserves balance as at the year end was £116,457. The trustees aim to sustain the level of reserves in line with its policy stated below.

Reserves Policy

The Koppel Project's reserves policy is to create sufficient reserves to enable the charity to continue its activities and services at a meaningful level, should there be a drop in income. As all income is derived from voluntary donations and other charitable activities, the trustees review this position on a regular basis.

Plans for future periods

By seeking to relieve poverty, the charity performs an enormous public benefit. The charity has achieved its objectives through its grant making program and is planning to continue doing so in 2021/22.

THE KOPPEL PROJECT TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MAY 2021

Statement of the trustees’ responsibilities

The charity's trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and the income and expenditure of the charity for that period.

In preparing these 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;
make judgements and accounting 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 financial statements on the going concern basis unless it is inappropriate to
presume that the charity will continue in operation.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. 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.

……………………… Amir Shaikh On behalf of the trustees of The Koppel Project

20/02/2023

Date ……………………

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE KOPPEL PROJECT FOR THE YEAR ENDED 31 MAY 2021

I report to the trustees on my examination of the accounts of the The Koppel Project for the year ended 31 May 2021.

Responsibilities and basis of report

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

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since the Trust’s gross income exceeded £250,000, I confirm that I am qualified to undertake the examination because I am a member of the ICAEW, which is one of the listed bodies.

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

accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
the accounts do not accord with those records; or
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Stephen Goodwin MA FCA CTA Goldwins Limited Chartered accountants 75 Maygrove Road West Hampstead London NW6 2EG

Date: 20/02/2023

The Koppel Project Statement of financial activities (incorporating an income and expenditure account) For the year ended 31 May 2021

2021 Unrestricted Note £ Income from: Donations 2 70,839 Charitable activities 3 403,307 Investment income 4 461,265 Total income 935,411 Expenditure on: 5 Raising funds 3,035 Charitable activities: 929,831 Total expenditure 932,866 6 2,545 Transfers between funds - Net movement in funds 2,545 Reconciliation of funds: 12 Total funds brought forward 113,912 Total funds carried forward 116,457 Net income / (expenditure) for the year	2021 Total £ 70,839 403,307 461,265 935,411 3,035 929,831 932,866 2,545 -	2020 Total £ 36,021 401,949 494,804
		932,774
		6,435 907,942
		914,377

		18,397
		-
2,545	2,545	18,397
113,912 116,457	113,912 116,457	95,515
		113,912

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above.

The attached notes form part of these financial statements.

The Koppel Project Balance sheet As at 31 May 2021

Note Fixed assets: Tangible assets 9 Current assets: Debtors 10 Cash at bank and in hand Liabilities: Creditors: amounts falling due within one year 11 Net current (liabilities) Total net (liabilities) Funds 12 Unrestricted funds: Total funds	2021 £ 164,188 33,771 197,959 (283,753)	2021 £ 202,251 202,251 (85,794) 116,457 116,457 116,457	2020 £ 280,030 70,861 350,891 (430,922)	2020 £ 193,943
				193,943 (80,031)
				113,912
				113,912
				113,912

20/02/2023 Approved by the trustees on ……………………………… and signed on their behalf by:

Amir Shaikh Trustee

The attached notes form part of the financial statements.

The Koppel Project Notes to the financial statements For the year ended 31 May 2021

1 Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with 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) - (Charities SORP FRS 102).

The charitable company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

b) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

d) Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

e) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds comprise of trading costs and the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose.
Expenditure on charitable activities includes the costs of delivering services, exhibitions and other educational activities undertaken to further the purposes of the charity and their associated support costs.
Other expenditure represents those items not falling into any other heading.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

The Koppel Project Notes to the financial statements For the year ended 31 May 2021

1 Accounting policies (continued)

f) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity and its and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 5.

g) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

h) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Computer equipment 25% reducing balance Leasehold improvements 25% reducing balance

i) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

j) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

k) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

l) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

The Koppel Project Notes to the financial statements For the year ended 31 May 2021

2 Income from donations and legacies

2 Income from donations and legacies	2 Income from donations and legacies
Donations Other income 3 Income from charitable activities Income from charitable activities 4 Income from investment activities Rental income 5 Analysis of expenditure Basis of allocation Raising funds £ Fundraising costs Direct 3,035 Staff costs Direct - Grants paid Direct - Rents and rates Direct - Repairs and maintenance Direct - Light and heat Direct Insurance Direct - Legal and professional fees Direct - Bank charges Direct - Security costs Direct - Independent examiners fee Direct - IT costs Staff time - Other office costs Staff time - Depreciation costs Direct - 3,035 Support costs Total expenditure 2021 3,035 Total expenditure 2020 6,435		2021 Unrestricted £ 146 70,693	2021 Restricted £ - -	2021 Total £ 146 70,693	2020 Total £ 1,301 34,720
		70,839	-	70,839	36,021
		2021 Unrestricted £ 403,307	2021 Restricted £ -	2021 Total £ 403,307	2020 Total £ 401,949
		403,307	-	403,307	401,949
		2021 Unrestricted £ 461,265	2021 Restricted £ -	2021 Total £ 461,265	2020 Total £ 494,804
		461,265	-	461,265	494,804
		Charitable activities £ - 111,517 86,497 401,517 122,948 35,275 2,333 50,871 97 17,089 2,500 - - -	Support costs £ - - - - - - - - - - - 6,522 25,249 67,416	2021 Total £ 3,035 111,517 86,497 401,517 122,948 35,275 2,333 50,871 97 17,089 2,500 6,522 25,249 67,416	2020 Total 6,435 89,219 10,000 364,545 182,804 12,134 5,021 61,654 143 62,143 1,980 18,396 21,491 78,412
	3,035	830,644 99,187	99,187 (99,187)	932,866 -	914,377
	3,035	929,831	-	932,866

	6,435	907,942	-	914,377

The Koppel Project Notes to the financial statements For the year ended 31 May 2021

6 Net income / (expenditure) for the year

This is stated after charging / (crediting): 2021 2020 £ £ Depreciation 67,416 78,412 Independent examiners fees 2,500 1,980 7 Staff costs were as follows: 2021 2020 £ £ Salaries and wages 100,305 81,307 Social security costs 9,051 6,524 Pension contributions 2,161 1,388 111,517 89,219 Analysis of staff costs, trustee remuneration and expenses, and key management personnel costs	2021 £ 67,416 2,500	2020 £ 78,412 1,980
	111,517	89,219

None of the employees received remuneraion of over £60,000 during the year. (2020:Nil)

The total employee benefits including pension contributions of the key management personnel were £49,221 (2020: £31,199).

The average number of employees during the year were 6 (2020:5)

8 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

9 Tangible fixed assets


Tangible fixed assets Cost At the start of the year Additions in year At the end of the year Depreciation At the start of the year Charge for the year At the end of the year Net book value At the end of the year At the beginning of the year	£ 285,766 68,659 Leasehold improvement	£ 40,532 7,065 Fixtures and equipment	£ 326,298 75,724 Total 2021	202,456 123,842 Total 2020
	354,425	47,597	402,022	326,298
	112,731 60,423	19,624 6,993	132,355 67,416	53,943 78,412
	173,154	26,617	199,771	132,355

	181,271	20,980	202,251	193,943

	173,035	20,908	193,943

All of the above assets are used for charitable purposes.

The Koppel Project Notes to the financial statements For the year ended 31 May 2021

10 Debtors

Trade debtors Prepayments Other debtors 11 Creditors: amounts falling due within one year Trade creditors Other creditors Deferred income	2021 £ 85,188 34,000 45,000	2020 £ 278,425 1,605 -
	164,188	280,030
	2021 £ 150,351 84,659 48,743	2020 £ 246,042 136,395 48,485
	283,753	430,922

12 Analysis of net assets between funds Tangible fixed assets Net current assets Net assets at the end of the year 13 Movements in funds £ General funds 113,912 Total unrestricted funds 113,912 At the start of the year	Unrestricted £ 202,251 (85,794)	Restricted £ - -	Total funds £ 202,251 (85,794)
	116,457	-	116,457
	£ 935,411 Income	£ (932,866) Expenditure	£ 116,457 At the end of the year
113,912	935,411	(932,866)	116,457

14 Related party transactions

There are no related party transactions to disclose for 2021. There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.