2022-05-31-accounts - The Koppel Project

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Charity Registration Number: 1171650

THE KOPPEL PROJECT FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2022

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 2022

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 Zanst Mohamad Kadir (appointed 5 June 2023) Independent Examiners Goldwins Chartered Accountants 75 Maygrove Road West Hampstead London NW6 2EG

THE KOPPEL PROJECT TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MAY 2022

The trustees present their report and accounts for the year ended 31 May 2022.

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
Zanst Mohamad Kadir (appointed 5 June 2023)

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

THE KOPPEL PROJECT TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MAY 2022

venue in Central London is available for the provision of more artist studios, art gallery and an 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 £964,029 (2021: £935,411) for the year ended 31 May 2022. After expenditure of £973,166 (2021: £932,866) there was a deficit of £9,137 (2021 surplus of £2,545).

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 £107,320. 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 2022/23.

THE KOPPEL PROJECT TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MAY 2022

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

07/08/2023 Date ……………………

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE KOPPEL PROJECT FOR THE YEAR ENDED 31 MAY 2022

I report to the trustees on my examination of the accounts of the The Koppel Project for the year ended 31 May 2022.

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: 7 August 2023

The Koppel Project Statement of financial activities (incorporating an income and expenditure account) For the year ended 31 May 2022

2022 Unrestricted Note £ Income from: Donations 2 12,313 Charitable activities 3 258,926 Investment income 4 692,790 Total income 964,029 Expenditure on: 5 Raising funds 3,999 Charitable activities: 969,167 Total expenditure 973,166 6 (9,137) Transfers between funds - Net movement in funds (9,137) Reconciliation of funds: 12 Total funds brought forward 116,457 Total funds carried forward 107,320 Net income / (expenditure) for the year	2022 Total £ 12,313 258,926 692,790 964,029 3,999 969,167 973,166 (9,137) -	2021 Total £ 70,839 403,307 461,265
		935,411
		3,035 929,831
		932,866

		2,545
		-
(9,137)	(9,137)	2,545
116,457 107,320	116,457 107,320	113,912
		116,457

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 2022

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 assets Funds 12 Unrestricted funds: Total funds	2022 £ 372,837 2,392 375,229 (508,134)	2022 £ 240,225 240,225 (132,905) 107,320 107,320 107,320	2021 £ 164,188 33,771 197,959 (283,753)	2021 £ 202,251
				202,251 (85,794)
				116,457
				116,457
				116,457

07/08/2023 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 2022

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 2022

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 2022

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 3,999 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 - 3,999 Support costs Total expenditure 2022 3,999 Total expenditure 2021 3,035		2022 Unrestricted £ - 12,313	2022 Restricted £ - -	2022 Total £ - 12,313	2021 Total £ 146 70,693
		12,313	-	12,313	70,839
		2022 Unrestricted £ 258,926	2022 Restricted £ -	2022 Total £ 258,926	2021 Total £ 403,307
		258,926	-	258,926	403,307
		2022 Unrestricted £ 692,790	2022 Restricted £ -	2022 Total £ 692,790	2021 Total £ 461,265
		692,790	-	692,790	461,265
		Charitable activities £ - 157,221 20,000 437,263 75,333 26,514 4,561 12,100 94 11,703 3,150 - - -	Support costs £ - - - - - - - - - - - 14,662 126,491 80,075	2022 Total £ 3,999 157,221 20,000 437,263 75,333 26,514 4,561 12,100 94 11,703 3,150 14,662 126,491 80,075	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
	3,999	747,939 221,228	221,228 (221,228)	973,166 -	932,866
	3,999	969,167	-	973,166

	3,035	929,831	-	932,866

The Koppel Project Notes to the financial statements For the year ended 31 May 2022

6 Net income / (expenditure) for the year

This is stated after charging / (crediting): 2022 2021 £ £ Depreciation 80,075 67,416 Independent examiners fees 3,150 2,700 7 Staff costs were as follows: 2022 2021 £ £ Salaries and wages 146,072 100,305 Social security costs 8,676 9,051 Pension contributions 2,473 2,161 157,221 111,517 Analysis of staff costs, trustee remuneration and expenses, and key management personnel costs	2022 £ 80,075 3,150	2021 £ 67,416 2,700
	157,221	111,517

None of the employees received remuneration of over £60,000 during the year. (2021:Nil)

The total employee benefits including pension contributions of the key management personnel were £55,167 (2021: £49,221).

The average number of employees during the year were 9 (2021:6)

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	£ 354,425 117,150 Leasehold improvement	£ 47,597 899 Fixtures and equipment	£ 402,022 118,049 Total 2022	326,298 75,724 Total 2021
	471,575	48,496	520,071	402,022
	173,154 74,605	26,617 5,470	199,771 80,075	132,355 67,416
	247,759	32,087	279,846	199,771

	223,816	16,409	240,225	202,251

	181,271	20,980	202,251

All of the above assets are used for charitable purposes.

The Koppel Project Notes to the financial statements For the year ended 31 May 2022

10 Debtors

Trade debtors Prepayments Other debtors 11 Creditors: amounts falling due within one year Trade creditors Other creditors Deferred income	2022 £ 201,587 51,250 120,000	2021 £ 85,188 34,000 45,000
	372,837	164,188
	2022 £ 76,929 358,702 72,503	2021 £ 150,351 84,659 48,743
	508,134	283,753

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 116,457 Total unrestricted funds 116,457 At the start of the year	Unrestricted £ 240,225 (132,905)	Restricted £ - -	Total funds £ 240,225 (132,905)
	107,320	-	107,320
	£ 964,029 Income	£ (973,166) Expenditure	£ 107,320 At the end of the year
116,457	964,029	(973,166)	107,320

14 Related party transactions

There are no related party transactions to disclose for 2022. There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.