**REGISTERED COMPANY NUMBER: CE012173 (England and Wales) REGISTERED CHARITY NUMBER: 1174589** ## **Report of the Trustees and** ## **Unaudited Financial Statements for the Year Ended 31 July 2022** ## **for** ## **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** Knox Cropper LLP 153-155 London Road Hemel Hempstead Hertfordshire HP3 9SQ **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** **Contents of the Financial Statements for the Year Ended 31 July 2022** **----- Start of picture text -----**
Page
Report of the Trustees 1 to 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8 to 9
Notes to the Financial Statements 10 to 14
Detailed Statement of Financial Activities 15 to 16
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**COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** **Report of the Trustees for the Year Ended 31 July 2022** The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2022. 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 2019). ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** To advance education for the public benefit by promoting knowledge and understanding of art and design within higher education institutions. ## **Public benefit** CHEAD Trustees confirm they have complied with their duty to have due regard to the guidance on public benefit published by the Commission in exercising their powers or duties. CHEAD Trustees have applied consideration with regard to public benefit when undertaking strategic planning. Page 1 **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** **Report of the Trustees for the Year Ended 31 July 2022** ## **ACHIEVEMENT AND PERFORMANCE** ## **Charitable activities** CHEAD delivered a full programme of policy work and events in 2021-2022 focussed on promoting knowledge and understanding of art and design within HEI's within an increasingly uncertain policy environment. CHEAD has worked hard to address issues high on the agenda for CHEAD members including social justice and climate change. In November 2021, CHEAD and APDIG embarked on an ambitious series of two roundtables and a policy workshop in a series titled: Realising Art and Design Research in Policy Making Decisions with key speakers from across the sector and contributors and attendees from the CHEAD membership. This series resulted in a policy paper summarising the key messages and three key recommendations. The ongoing impact of this series is that CHEAD and the APDIG are working to develop interactions between Parliamentarians and Advisers to consider adapting existing government policy framework to embed art and design expertise in policy processes. In March 2022, in partnership with the University of the Arts London, CHEAD launched a series of creative and critical encounters Climate Justice: Decolonising Decarbonisation bringing together artists, designers, media makers and educators to address issues around regenerative ecologies and restorative justice. The series showcased over fifteen speakers and reached over 200 participants. A zine featuring artworks created in response to the series is in production. This year CHEAD has responded, on behalf of members, to consultations including: The Office for Students Changes to conditions of registration, Regulating outcomes, TEF, B3, UKRI Research England funding, Department for Culture, Media and Sport Role of Culture in Levelling up. CHEAD also collaborated with the Crafts Council in relation to an HE policy paper relating to FE/HE and attended a Department for Education roundtable meeting at the request of Special Advisors. CHEAD members and those working in the art and design higher education sector benefitted from CHEAD providing a coherent voice on their behalf to government and policy makers. Members tell us that they do not have the time or skills to respond to consultations individually and so benefit from CHEAD taking a lead on key consultation responses through the lens of art and design education on behalf of the sector. During 2021/22, CHEAD continued to deliver a programme of events through its Leadership Programme, designed to support the current and next generation of academic leaders with three seminars taking place, Atypical Leaders in December 2001, Operational Matters in February 2022 and Focus on Programme Leader in June 2022. During 2021/22, CHEAD continued to deliver a programme of membership events focussed on sector specific themes. In November 2021, CHEAD delivered a hugely successful Inclusive learning, digital futures membership dissemination event which provided an opportunity for CHEAD members to share innovations and insights during the recent COVID challenge. During 2022, CHEAD as aforementioned delivered a hugely successful Climate Justice: Decolonising Decarbonisation series with four events delivered over four months with partners University of the Arts, London. During 2021/22, CHEAD continued to support a Subject Association Alliance. The alliance met three times and benefitted from presentations from guest presenters, for example by Professor Jane Harris, Director of the Business of Fashion, Textiles and Technology on the on the Creative Clusters Research Mapping the UK Fashion, Textiles and Technology Ecosystem.The Alliance spans a number of Subject Associations, some of whom are not CHEAD members. The result is that all Subject Associations benefit from the work of the CHEAD supported Alliance. This includes sharing knowledge and best practice, joint events and promoting knowledge and understanding of art and design within higher education institutions. Page 2 **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** **Report of the Trustees for the Year Ended 31 July 2022** During 2021/22, CHEAD continued to deliver a programme of events through its Research Alliance with the aim of supporting research leadership and developing activities and resources to support researchers in the sector. The Alliance also brought together a Strategy Policy Sub Group, set up in March 2021 in response to an ambition by the Research Alliance Strategy Group to create clear policy positions in relation to art & design research with an overarching ambition to raise the profile of CHEAD as a key stakeholder in policy making through the lens of the creative disciplines and specifically art & design research. The Alliance delivered a hugely successful Between Scholarship, Research and interdisciplinarity event bringing together members of the Research Alliance to showcase interdisciplinary case studies. The Research Alliance also delivered a key event What does it mean to work in an interdisciplinary way? enabling to tap into the expertise within our collaborative community by way of a workshop to explore interdisciplinary research proposals. ## **FINANCIAL REVIEW** ## **Financial position** During the year, CHEAD received £107,221 (2021: £105,208) of membership subscriptions and £2,835 (2021: £990) from leadership development projects. The conference generated income of £3,890 (2021: £880). Sponsorship income received during the year was £900 (2021: £650). . Expenditure for the year in relation to the CHEAD's educational activities was £110,343 (2021: £101,714) resulting in net income for the year of £3,853 (2021: £6,014 ). CHEAD finds itself in a strong position at the end of the 2021/2022 period with expenditure well within income levels and reserves being maintained at a healthy level. ## **Principal funding sources** Membership subscriptions. ## **Investment policy and objectives** CHEAD Trustees do not consider it necessary to seek investment advice. Trustees consider that current reserves should remain stable, accessible and risk free. ## **Reserves policy** CHEAD supports an active and responsive programme of events, seminars, policy briefings and annual conference for members across the UK as well as maintaining two part-time staff members and an accounts assistant on a consultancy basis. The CHEAD Reserves Policy is to maintain sufficient level of reserves to enable normal operating activities to continue over a period of up to six months should a shortfall in income occur and to take account of potential risks and contingencies that may arise from time to time. At 31 July 2022, CHEAD had reserves totalling £236,834 (2021: £239,981). CHEAD has taken steps to establish the level of reserve including any risks in respect of expenditure and future income as well as any external risks to income and expenditure. CHEAD also maintains a risk assessment which is reviewed annually and considered as part of the Reserves Policy review. Page 3 **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** **Report of the Trustees for the Year Ended 31 July 2022** ## **FUTURE PLANS** Trustees envisage the future of the Council for Higher Education in Art and Design to be centred around support and sector advocacy for and on behalf of its members. Trustees have been careful to take a responsive and agile response to member needs to ensure it remains valuable and relevant to its membership. A decision to increase membership fee levels in line with RPI to ensure the Charity could continue to deliver its objectives resulted in a positive response from the breadth of the CHEAD membership in near 100% membership renewal. Trustees have been careful in their stewardship of the charities reserves but have also used small amounts of funds to further key projects that have advanced the organisations leadership in art and design research policy. Resource allocation decisions are made upfront to further the aims within the strategic plan, whilst retaining the flexibility to make additional small investments throughout the year as priorities based on member's needs come to the fore and are backed up by a strong proposal. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document** The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. ## **Recruitment and appointment of new trustees** Trustees are appointed to the Board via an annual election at the Annual General Meeting by the CHEAD membership. ## **Organisational structure** The Charity is comprised of a Board of Trustees and two part-time Directors. CHEAD works closely within a network of art and design focussed organisations including: Design Council, Crafts Council, Creative Industries Federation, All-Party Parliamentary Design and Innovation Group, GuildHE, GLAD and NSEAD. ## **Induction and training of new trustees** CHEAD has an adopted policy and procedure for the induction and training of trustees. CHEAD has an adopted handbook for Trustees. ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **Registered Company number** CE012173 (England and Wales) ## **Registered Charity number** 1174589 ## **Registered office** C/O Knox Cropper 153-155 London Road Hemel Hempstead Hertfordshire HP3 9SQ Page 4 **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** ## **Report of the Trustees for the Year Ended 31 July 2022** ## **Trustees** Professor S A Wade Chair Professor R S Smith P MacBeth (resigned 29.6.22) Professor J Kaner Professor A Payne Professor S Manghani D McGravie S Phoca Dr R D Hunter Dr R Adams R Bateman Prof P L Springer (appointed 29.6.22) L OBoyle (appointed 4.10.22) **Senior Management Team** Sandra Booth, Director of Policy and External Relations Anna Maloney, Director of Membership and Operations **Independent Examiner** Knox Cropper LLP 153-155 London Road Hemel Hempstead Hertfordshire HP3 9SQ Approved by order of the board of trustees on ............................................. and signed on its behalf by: .................................................................... Trustee Page 5 **Independent Examiner's Report to the Trustees of Council for Higher Education in Art & Design** ## **Independent examiner's report to the trustees of Council for Higher Education in Art & Design ('the Company')** I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 July 2022. ## **Responsibilities and basis of report** As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act 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; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). 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 Anderson Association of Chartered Certified Accountants Knox Cropper LLP 153-155 London Road Hemel Hempstead Hertfordshire HP3 9SQ Date: ............................................. Page 6 **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** ## **Statement of Financial Activities for the Year Ended 31 July 2022** |**2022**
**Unrestricted**
**fund**
Notes
**£**
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Education
**114,196**
**EXPENDITURE ON**
**Charitable activities**
Education
**110,343**
**NET INCOME**
**3,853**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**232,981**
**TOTAL FUNDS CARRIED FORWARD**
**236,834**|2021
Total
funds
£
107,728
101,714
6,014
226,967
232,981| |---|---| The notes form part of these financial statements Page 7 **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** ## **Balance Sheet 31 July 2022** |**2022**
**Unrestricted**
**fund**
Notes
**£**
**CURRENT ASSETS**
Debtors
5
**6,249**
Cash at bank
**242,332**
**248,581**
**CREDITORS**
Amounts falling due within one year
6
**(11,747)**
**NET CURRENT ASSETS**
**236,834**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**236,834**
**NET ASSETS**
**236,834**
**FUNDS**
7
Unrestricted funds
**236,834**
**TOTAL FUNDS**
**236,834**|2021
Total
funds
£
28,914
225,208
254,122
(21,141)
232,981
232,981
232,981
232,981
232,981| |---|---| The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2022. The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2022 in accordance with Section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for - (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and - (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. The notes form part of these financial statements Page 8 continued... **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** ## **Balance Sheet - continued 31 July 2022** These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: ............................................. Trustee The notes form part of these financial statements Page 9 **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** **Notes to the Financial Statements for the Year Ended 31 July 2022** ## **1. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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. ## **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. ## **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. ## **Taxation** The charity is exempt from corporation tax on its charitable activities. ## **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. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **Pension costs and other post-retirement benefits** The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ## **Going concern** After reviewing the charity's forecasts and projections, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing the financial statements. Page 10 continued... **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** **Notes to the Financial Statements - continued for the Year Ended 31 July 2022** ## **2. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 31 July 2022 nor for the year ended 31 July 2021. |**Trustees' expenses**
Trustees' expenses
**3.**
**STAFF COSTS**
The average monthly number of employees during the year was as follows:
Management
No employees received emoluments in excess of £60,000.
**4.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Education
**EXPENDITURE ON**
**Charitable activities**
Education
**NET INCOME**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**||**2022**
2021
**£**
£
**183**
-
**2022**
2021
**2**
2
Unrestricted
fund
£
107,728
101,714
6,014
226,967
232,981| |---|---|---| Page 11 continued... **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** ## **Notes to the Financial Statements - continued for the Year Ended 31 July 2022** **----- Start of picture text -----**
5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£ £
Trade debtors 4,375 15,645
Other debtors - 919
Prepayments and accrued income 1,874 12,350
6,249 28,914
6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£ £
Trade creditors 187 1,579
Social security and other taxes 589 602
Other creditors 2,572 95
Deferred income 4,800 15,600
Accrued expenses 3,599 3,265
11,747 21,141
7. MOVEMENT IN FUNDS
Net
movement At
At 1.8.21 in funds 31.7.22
£ £ £
Unrestricted funds
General fund 232,981 3,853 236,834
TOTAL FUNDS 232,981 3,853 236,834
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 114,196 (110,343) 3,853
TOTAL FUNDS 114,196 (110,343) 3,853
**----- End of picture text -----**
Page 12 continued... **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** **Notes to the Financial Statements - continued for the Year Ended 31 July 2022** ## **7. MOVEMENT IN FUNDS - continued** ## **Comparatives for movement in funds** |**Unrestricted funds**
General fund|At 1.8.20
£
226,967|Net
movement
in funds
£
6,014|At
31.7.21
£
232,981| |---|---|---|---| |**TOTAL FUNDS**|226,967|6,014|232,981| |Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
107,728||Resources
expended
£
(101,714)|Movement
in funds
£
6,014| |**TOTAL FUNDS**|107,728|(101,714)|6,014| |A current year 12 months and prior year 12 months combined position is as
At 1.8.20
£
**Unrestricted funds**
General fund
226,967||follows:
Net
movement
in funds
£
9,867|At
31.7.22
£
236,834| |**TOTAL FUNDS**|226,967|9,867|236,834| Page 13 continued... **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** **Notes to the Financial Statements - continued for the Year Ended 31 July 2022** ## **7. MOVEMENT IN FUNDS - continued** A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
221,924
221,924|Resources
Movement
expended
in funds
£
£
(212,057)
9,867
(212,057)
9,867| |---|---|---| ## **8. RELATED PARTY DISCLOSURES** There were no related party transactions for the year ended 31 July 2022. ## **9. FORMATION OF CHARITY** The charity was formed on 11 September 2017 and began to operate immediately thereafter when the assets and liabilities of the Council for Higher Education in Art & Design, an unincorporated association, were transferred to this charity. Page 14 **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** ## **Detailed Statement of Financial Activities for the Year Ended 31 July 2022** |**INCOME AND ENDOWMENTS**
**Charitable activities**
Conference income
Sponsorship income
Leadership development
Subscriptions
**Total incoming resources**
**EXPENDITURE**
**Charitable activities**
Annual conference
Special projects
Meeting costs
Stripe & Eventbrite charges
**Support costs**
**Management**
Trustees' expenses
Salaries
Pensions
Insurance
Telephone
Postage and stationery
Sundries
Travel & subsistence
IT support & consumables
Website maintenance & development
Marketing & communications
Remote office expenditure
Payroll service costs
Subscriptions
Staff training, events & conferences
Legal fees
Carried forward|2022
£
**3,890**
**900**
**2,835**
**106,571**
**114,196**
**114,196**
**17,077**
**9,150**
**3,617**
**101**
**29,945**
**183**
**46,490**
**1,017**
**911**
**378**
**-**
**-**
**2,784**
**1,968**
**2,744**
**-**
**73**
**1,066**
**13,830**
**42**
**1,034**
**72,520**|2021
£
880
650
990
105,208
107,728
107,728
18,316
15,650
800
96
34,862
-
45,480
990
2,222
557
56
70
10
1,158
2,798
1,038
-
1,023
2,920
-
994
59,316| |---|---|---| This page does not form part of the statutory financial statements Page 15 **COUNCIL FOR HIGHER EDUCATION IN ART & DESIGN** ## **Detailed Statement of Financial Activities for the Year Ended 31 July 2022** |**Management**
Brought forward
Accountancy fees
**Finance**
Bank charges
Total resources expended
**Net income**|2022
£
**72,520**
**7,576**
**80,096**
**302**
**110,343**
**3,853**|2021
£
59,316
7,236
66,552
300
101,714
6,014| |---|---|---| This page does not form part of the statutory financial statements Page 16