``` REGISTERED CHARITY NUMBER: 1177900 ``` ``` Report of the Trustees and ``` ``` Financial Statements for the Year Ended 31 May 2022 ``` ``` for ``` ## **`ARTHOUSE Unlimited`** ``` Bennewith 2018 Limited (Statutory Auditors) ``` ``` 3 Wey Court Mary Road Guildford Surrey GU1 4QU ``` ``` ARTHOUSE Unlimited ``` ## **`Contents of the Financial Statements for the Year Ended 31 May 2022`** ||**`Page`**| |---|---| |**`Chair's Report`**|`1 to 2`| |**`Report of the Trustees`**|`3 to 4`| |**`Report of the Independent Auditors`**|`5 to 7`| |**`Statement of Financial Activities`**|`8`| |**`Balance Sheet`**|`9`| |**`Cash Flow Statement`**|`10`| |**`Notes to the Cash Flow Statement`**|`11`| |**`Notes to the Financial Statements`**|`12 to 20`| |**`Detailed Statement of Financial Activities`**|`21 to 22`| ``` ARTHOUSE Unlimited ``` ## **`Chair's Report for the Year Ended 31 May 2022`** ``` Thisreportcoversourfourthyearofoperationasastand-alonecharity,andithasbeenanotheryearofthe most unusualcircumstancesin whichthe charityhas managedto continueto thrive- just.Ourthanksgo to ourartists, the staff, our wonderful volunteers and of course our customers and as well as the donors who support us. ``` ``` The interventionof Covid meant disruptionfor the artistsfor a long periodof time but they have been hugely resilient andbacktheycameinfullswingandwithgreatenthusiasm.Asateamwemanagedtokeepintouchwith them through all the Covid interruptions via interactive technology (thank you to Shanley Homes). ``` ``` This year there was huge excitementwhen the RoyalAcademyselectedthree of our artist'spicturesfor their Summer Exhibition(heldintheAutumnbecauseofCovid),arealtestimonytothedeterminationofalltheArtistsand the quality of the art instructors. Our inclusion has been repeated again in 2022. ``` ``` Whenwe set the budgetsfor the year,we were not sure if shopswouldever openroutinelyagain,andif online sales wouldholdup,strengthenorcollapse.ThewholestaffteamledbyourremarkableCEOBeckySheraidahFRSA set about working on being as flexible as possible to respond to each and every issue thrown at them. ``` ``` The resultscontainedin this reportshows that all their hard work, flexibility,expertiseand determinationhas paid off and we have continued to grow this year with turnover reaching £1.3m. ``` ``` WewereofcourseheavilyimpactedbyCovidandoneoftheissuesoutsidethestudiohasbeenourability to introducenewproductswhicharethelifebloodofourgrowingsocialenterprise.Existingsuppliers,new suppliers, finishingdesigns with artists in the studiowere all in a difficultpositionso the flow of new productsslowed and with it our growth opportunity. ``` ``` Add to this, a key plank of our social enterpriseis selling to retail outletsand the exhibitionswe usuallyattended were heavily disrupted. However, this turned out to be a huge area of success for us as we grew our reach into this sector. ``` ``` Thereasonsellingproductissoimportanttousisthatthisishowtheartistsachievetherecognitioninsociety that theydeserve.Moreandmoreindividualsaroundthecountryknowoftheirwork,theirability,theirtalentand they arebeingfullyincludedandrecognisedoneveryitemwesell.Onekeystatisticthatissoimportantisthat 420,000 individualitems of producthave been sold across the UK in the past year, each tellingthe story of our artistsand their creativity.This is an amazingstatistic.In addition,we now have HollyTuckerMBE as a Patronso ourreachhas grown again. ``` ``` UrbanOutfittershavebecomeacustomerandjoinLush,HealsandtheRoyalAcademyamongstsomeof our better-knownoutlets.Overall,we haveover600outletsintheUK sellingourproducts.We areverygratefulto every oneofthemandtheyareallpartofour'community'ofsupporters.OnInstagramwe haveanother29,000 followers who know of us and support us. ``` ``` We are now backup andrunningfullspeedandwe have two new rangespreparedreadyfor launchin the early part ofourfifthyear(oneofthemayearlateduetoalltheholdupsCovidcreated).Sonotonlyhavewe been outstandinglysuccessfulthisyearbutlookingaheadwe see theopportunitytocontinuegrowingandexpanding. We just hope that the new 'cost of living' issues that the UK is facing do not knock us off course. ``` ``` Ourloyalvolunteersarenowsteadilyreturning,andwearestillactivelyseekingnewonestojoinus.Lastyear we received and provided over 3400 hours of volunteering. Needless to say, the five trustees are all volunteers. ``` ``` WehaveaverycloserelationshipwithMencapBerkshirewhodoallourtradepick,packandfulfilment.We are mutually supportive of each other's work and the positive affect on the 65 beneficiaries who are involved in Newbury. We have neededhelpfrom externaldonors,andwe are so very gratefulfor theirsupportandwithoutthatsupport it would have been difficult to have got through the early years of the charity with such robust growth. ``` ``` The team have made great progressin improvingour technologyand it has been one of the factorsin containing costs of operatingthe charity.Obviously,every charityhas to keep a very close eye on costs,andwe are alwayslooking for ways to remain effective without increasing our spending. This was signalled in last year's report. ``` ``` Page 1 ``` ``` ARTHOUSE Unlimited ``` ## **`Chair's Report for the Year Ended 31 May 2022`** ``` A key event in our annualcalendaris our Christmaspartyfor the artistsand their familiesand carers.This year held in Maydueto Covid,it was theopportunityto awardeveryartista personalcertificaterecognisingtheirown individual contribution.It is an amazingeveningandone whichis enthusiasticallywelcomedby ourmost importantpeople, the artists. ``` ``` We are delighted that early in the year we appointed a new trustee, Joanna Nagel, who is now fully active. ``` ``` We wouldhaveideallyfounda largerstudiothisyearorexpandedouractivitytonewpasturesbutitwasnotto be. However, we still have big ambitions for our charity. ``` ``` Ineverywayourfinancialresultsfortheyeardonotreflecttheturmoilwehavebeenthrough.Weface2022 with excitementevenconsideringhowthenew'costofliving'andotherchallengesintheeconomycouldaffect our progress. It means I can repeat last year's final paragraph: ``` ``` ARTHOUSEUnlimitedgoesintothenextfinancialyearinaverystrongposition- productrange,staffteam,artists in thestudio,tradesalesgoingwell,strongonlinebusinessandtradeshowsplannedforSeptember2022and January 2023. ``` ``` Dr Colin Stokes MBE ``` ``` Chair of Trustees ``` ``` Page 2 ``` ``` ARTHOUSE Unlimited ``` ## **`Report of the Trustees for the Year Ended 31 May 2022`** ## **`STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document`** ``` The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity. ``` ## **`REFERENCE AND ADMINISTRATIVE DETAILS`** ## **`Registered Charity number`** ``` 1177900 ``` ``` Principal address 96 High Street Godalming Surrey GU7 1DW ``` ## **`Trustees`** ``` Dr C Stokes J T Pepper A L Cross S J Longdon J Nagel (appointed 10.9.21) ``` ## **`Auditors`** ``` Bennewith 2018 Limited (Statutory Auditors) 3 Wey Court Mary Road Guildford Surrey GU1 4QU ``` ## **`STATEMENT OF TRUSTEES' RESPONSIBILITIES`** ``` ThetrusteesareresponsibleforpreparingtheAnnualReportandthefinancialstatementsinaccordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). ``` ``` ThelawapplicabletocharitiesinEnglandandWales,theCharitiesAct2011,Charity(Accountsand Reports) Regulations2008andtheprovisionsofthetrustdeedrequiresthetrusteestopreparefinancialstatementsfor each financialyearwhichgiveatrueandfairviewofthestateofaffairsofthecharityandoftheincomingresources and applicationofresources,includingtheincomeandexpenditure,ofthecharityforthatperiod.Inpreparing those financial statements, the trustees are required to ``` - `select suitable accounting policies and then apply them consistently;` - `observe the methods and principles in the Charity SORP;` - `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 financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.` ``` Thetrusteesareresponsibleforkeepingproperaccountingrecordswhichdisclosewithreasonableaccuracyat any time the financialpositionof the charityandto enablethem to ensurethatthe financialstatementscomplywith the CharitiesAct 2011, the Charity(Accountsand Reports)Regulations2008 and the provisionsof the trust deed. They are alsoresponsibleforsafeguardingtheassetsofthecharityandhencefortakingreasonablestepsforthe prevention and detection of fraud and other irregularities. ``` ``` Page 3 ``` ``` ARTHOUSE Unlimited ``` ## **`Report of the Trustees for the Year Ended 31 May 2022`** ``` Approved by order of the board of trustees on ............................................. and signed on its behalf by: ``` ``` ........................................................................ Dr C Stokes - Trustee ``` ``` Page 4 ``` ## **`Report of the Independent Auditors to the Trustees of ARTHOUSE Unlimited`** ## **`Opinion`** ``` WehaveauditedthefinancialstatementsofARTHOUSEUnlimited(the'charity')fortheyearended31May 2022 whichcomprisetheStatementofFinancialActivities,theBalanceSheet,theCashFlowStatementandnotesto the financialstatements,includingasummaryofsignificantaccountingpolicies.Thefinancialreportingframework that hasbeenappliedintheirpreparationisapplicablelawandUnitedKingdomAccountingStandards(United Kingdom Generally Accepted Accounting Practice). ``` ``` In our opinion the financial statements: ``` - `give a true and fair view of the state of the charity's affairs as at 31 May 2022 and of its 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`** ``` WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UK)(ISAs(UK))andapplicable law. OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditors'responsibilitiesfortheauditof the financialstatementssectionofourreport.Weareindependentofthecharityinaccordancewiththe ethical requirementsthat are relevantto our auditof the financialstatementsin the UK, includingthe FRC's Ethical Standard, andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethat the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ``` ## **`Conclusions relating to going concern`** ``` In auditingthe financialstatements,we have concludedthat the trustees' use of the going concernbasis of accounting in the preparation of the financial statements is appropriate. ``` ``` Basedontheworkwehaveperformed,wehavenotidentifiedanymaterialuncertaintiesrelatingtoevents or conditionsthat,individuallyorcollectively,maycastsignificantdoubtonthecharity'sabilitytocontinueasa going concern for a period of at least twelve months from when the financial statements are authorised for issue. ``` ``` Our responsibilitiesand the responsibilitiesof the trusteeswith respect to goingconcernare describedin the relevant sections of this report. ``` ## **`Other information`** ``` Thetrusteesareresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincluded in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. ``` ``` Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationand,excepttotheextent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. ``` ``` Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand, in doingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsor our knowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.Ifweidentifysuch material inconsistenciesorapparentmaterialmisstatements,wearerequiredtodeterminewhetherthisgivesriseto a materialmisstatementin the financialstatementsthemselves.If, based on the work we have performed,we conclude thatthereis a materialmisstatementof thisotherinformation,we are requiredto reportthatfact.We have nothing to report in this regard. ``` ## **`Matters on which we are required to report by exception`** ``` We have nothingto reportin respect of the followingmatters where the Charities(Accountsand 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; or` - `the 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.` ``` Page 5 ``` ## **`Report of the Independent Auditors to the Trustees of ARTHOUSE Unlimited`** ## **`Responsibilities of trustees`** ``` As explainedmore fullyin the Statementof Trustees'Responsibilities,the trusteesare responsiblefor the preparation ofthefinancialstatementswhichgivea trueandfairview,andforsuchinternalcontrolasthetrusteesdetermine is necessaryto enablethe preparationof financialstatementsthat are free from materialmisstatement,whetherdue to fraud or error. ``` ``` Inpreparingthefinancialstatements,thetrusteesareresponsibleforassessingthecharity'sabilitytocontinueas a goingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasis of accountingunlessthetrusteeseitherintendtoliquidatethecharityortoceaseoperations,orhaveno realistic alternative but to do so. ``` ## **`Our responsibilities for the audit of the financial statements`** ``` WehavebeenappointedasauditorsunderSection144oftheCharitiesAct2011andreportinaccordancewith the Act and relevant regulations made or having effect thereunder. ``` ``` Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefree from materialmisstatement,whether due to fraud or error, and to issue a Report of the IndependentAuditorsthat includes ouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconducted in accordancewithISAs(UK)willalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarise from fraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpected to influence the economic decisions of users taken on the basis of these financial statements. ``` ``` Weobtainedanunderstandingofthelegalandregulatoryframeworksthatareapplicabletotheentity and determinedthemostsignificantarethosethatrelatetoFRS102Section1A,pensionlawsandregulationsand tax regulations. ``` ``` We assessed the risks of material misstatement in respect of fraud as follows: ``` ``` - Enquiries made of management and those charged with governance as well as the payroll services - Analytical procedures were used to identify if there were any unusual or unexpected relationships - Discussions with management to identify any fraud risk factors of related party relationships and transactions ``` ``` Basedontheresultsofourriskassessmentwedesignedourauditprocedurestoidentifynon-compliancewith such laws and regulations identified above. ``` ``` Enquiriesweremadeofmanagementandthosechargedwithgovernance.Wecorroboratedourenquiries through the review of Board minutes and other papers provided. There was no contradictory evidence. ``` ``` Weconsideredtheriskoffraudthroughmanagementoverrideand,inresponse,weincorporatedtestingof manual journalentriesintoourauditapproach.Wetestedyearendjournalsaswellasjournalentriesthroughoutthe year. There were no transactions identified outside the normal course of business. ``` ``` Basedontheresultsofourriskassessmentwedesignedourauditprocedurestoidentifyandtoaddress material misstatementsinrelationtofraud.Weincorporatedanelementofunpredictabilityintheselectionofthe nature, timing, and extent of audit procedures. ``` ``` Wheretransactionmeetingriskcriteriawereidentified,wecarriedoutfurtherworksuchasadditionaltesting to source information. ``` ``` Afurtherdescriptionofourresponsibilitiesfortheauditofthefinancialstatementsislocatedonthe Financial ReportingCouncil'swebsiteatwww.frc.org.uk/auditorsresponsibilities.ThisdescriptionformspartofourReport of the Independent Auditors. ``` ``` Page 6 ``` ## **`Report of the Independent Auditors to the Trustees of ARTHOUSE Unlimited`** ## **`Use of our report`** ``` This reportis made solelyto the charity'strustees,as a body,in accordancewith Part 4 of the Charities(Accounts and Reports)Regulations2008. Our auditwork has been undertakenso that we might state to the charity'strustees those matterswearerequiredtostatetotheminanauditors'reportandfornootherpurpose.Tothefullest extent permittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthanthecharityandthe charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. ``` ``` Bennewith 2018 Limited (Statutory Auditors) 3 Wey Court Mary Road Guildford Surrey GU1 4QU Date: ............................................. ``` ``` Page 7 ``` ``` ARTHOUSE Unlimited ``` ## **`Statement of Financial Activities`** ## **`for the Year Ended 31 May 2022`** |`Notes`
**`INCOME AND ENDOWMENTS FROM`**
`Donations and legacies`
`2`
**`Charitable activities`**
`4`
`Shop sales`
`Commissions`
`Online retail sales`
`Trade sales`
`Art sessions`
`Corporate gift sales`
`Investment income`
`3`
`Other income`
**`Total`**
**`EXPENDITURE ON`**
**`Charitable activities`**
`5`
`Goods Purchased for Resale`
`Miscellaneous Purchases`
`Packaging and Carriage- Retail Sales`
`Marketing and PR`
`Courier Fees`
`Package and Carriage - Trade Sales`
`Artist Materials`
`Other`
**`Total`**
**`NET INCOME`**
**`RECONCILIATION OF FUNDS`**
`Total funds brought forward`
**`TOTAL FUNDS CARRIED FORWARD`**|`Unrestricted`
`funds`
`£`
`66,512`
`46,182`
`20,615`
`171,016`
`795,611`
`97,403`
`26,933`
`14`
`-`
`1,224,286`
`541,415`
`3,001`
`2,720`
`34,016`
`5,702`
`73,553`
`1,252`
`531,510`
`1,193,169`
`31,117`
`144,691`
`175,808`|`Restricted`
`funds`
`£`
`80,087`
`-`
`-`
`-`
`-`
`-`
`-`
`-`
`-`
`80,087`
`-`
`-`
`-`
`-`
`-`
`-`
`412`
`46,209`
`46,621`
`33,466`
`10,173`
`43,639`|`31.5.22`
`Total`
`funds`
`£`
`146,599`
`46,182`
`20,615`
`171,016`
`795,611`
`97,403`
`26,933`
`14`
`-`
`1,304,373`
`541,415`
`3,001`
`2,720`
`34,016`
`5,702`
`73,553`
`1,664`
`577,719`
`1,239,790`
`64,583`
`154,864`
`219,447`|`31.5.21`
`Total`
`funds`
`£`
`116,422`
`22,607`
`18,000`
`296,546`
`452,487`
`68,590`
`-`
`34`
`13,720`| |---|---|---|---|---| |||||`988,406`| |||||`349,862`
`2,729`
`8,800`
`15,251`
`5,799`
`39,612`
`1,022`
`518,376`| |||||`941,451`| |||||`46,955`
`107,909`| |||||`154,864`| ``` The notes form part of these financial statements ``` ``` Page 8 ``` ``` ARTHOUSE Unlimited ``` ## **`Balance Sheet`** ## **`31 May 2022`** |`Unrestricted`
`funds`
`Notes`
`£`
**`FIXED ASSETS`**
`Tangible assets`
`14`
`26,082`
**`CURRENT ASSETS`**
`Stocks`
`15`
`150,844`
`Debtors: amounts falling due within one year`
`16`
`50,168`
`Prepayments and accrued income`
`21,926`
`Cash at bank`
`180,914`
`403,852`
**`CREDITORS`**
`Amounts falling due within one year`
`17`
`(84,732)`
**`NET CURRENT ASSETS`**
`319,120`
**`TOTAL ASSETS LESS CURRENT LIABILITIES`**
`345,202`
**`CREDITORS`**
`Amounts falling due after more than one year`
`18`
`(169,394)`
**`NET ASSETS`**
`175,808`
**`FUNDS`**
`19`
`Unrestricted funds`
`Restricted funds`
**`TOTAL FUNDS`**|`Restricted`
`funds`
`£`
`-`
`-`
`-`
`-`
`43,639`
`43,639`
`-`
`43,639`
`43,639`
`-`
`43,639`|`31.5.22`
`Total`
`funds`
`£`
`26,082`
`150,844`
`50,168`
`21,926`
`224,553`
`447,491`
`(84,732)`
`362,759`
`388,841`
`(169,394)`
`219,447`
`175,808`
`43,639`
`219,447`|`31.5.21`
`Total`
`funds`
`£`
`15,552`
`125,405`
`25,436`
`22,051`
`176,816`
`349,708`
`(63,169)`
`286,539`
`302,091`
`(147,227)`
`154,864`
`144,691`
`10,173`
`154,864`| |---|---|---|---| ``` ThefinancialstatementswereapprovedbytheBoardofTrusteesandauthorisedforissue on ............................................. and were signed on its behalf by: ``` ``` ............................................. C Stokes - Trustee ``` ``` The notes form part of these financial statements ``` ``` Page 9 ``` ``` ARTHOUSE Unlimited ``` ## **`Cash Flow Statement`** |**`for the Year Ended 31 May 2022`**
`31.5.22`
`Notes`
`£`
**`Cash flows from operating activities`**
`Cash generated from operations`
`1`
`68,953`
`Net cash provided by operating activities`
`68,953`
**`Cash flows from investing activities`**
`Purchase of tangible fixed assets`
`(21,216)`
`Net cash used in investing activities`
`(21,216)`
**`Change in cash and cash equivalents in the`**
**`reporting period`**
`47,737`
**`Cash and cash equivalents at the beginning`**
**`of the reporting period`**
`176,816`
**`Cash and cash equivalents at the end of`**
**`the reporting period`**
`224,553`|`31.5.21`
`£`
`31,592`
`31,592`
`(7,927)`
`(7,927)`
`23,665`
`153,151`
`176,816`| |---|---| ``` The notes form part of these financial statements ``` ``` Page 10 ``` ``` ARTHOUSE Unlimited ``` ## **`Notes to the Cash Flow Statement`** ## **`for the Year Ended 31 May 2022`** ## **`1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES`** ||`31.5.22`|`31.5.21`| |---|---|---| ||`£`|`£`| |**`Net income for the reporting period (as per the Statement of Financial`**||| |**`Activities)`**|`64,583`|`46,955`| |**`Adjustments for:`**||| |`Depreciation charges`|`10,686`|`12,083`| |`Increase in stocks`|`(25,439)`|`(8,181)`| |`Increase in debtors`|`(24,607)`|`(43,822)`| |`Increase in creditors`|`43,730`|`24,557`| |**`Net cash provided by operations`**|`68,953`|`31,592`| ## `2.` **`ANALYSIS OF CHANGES IN NET FUNDS`** ||`At 1.6.21`|`Cash flow`|`At 31.5.22`| |---|---|---|---| ||`£`|`£`|`£`| |**`Net cash`**|||| |`Cash at bank`|`176,816`|`47,737`|`224,553`| ||`176,816`|`47,737`|`224,553`| |**`Total`**|`176,816`|`47,737`|`224,553`| ``` The notes form part of these financial statements ``` ``` Page 11 ``` ``` ARTHOUSE Unlimited ``` ``` Notes to the Financial Statements for the Year Ended 31 May 2022 ``` ## **`1. ACCOUNTING POLICIES`** ## **`Basis of preparing the financial statements`** ``` Thefinancialstatementsof thecharity,whichis a publicbenefitentityunderFRS 102,havebeenprepared in accordancewiththeCharitiesSORP(FRS102)'AccountingandReportingbyCharities:Statement of RecommendedPracticeapplicabletocharitiespreparingtheiraccountsinaccordancewiththe Financial ReportingStandardapplicablein the UK and Republicof Ireland(FRS 102) (effective1 January2019)', Financial ReportingStandard102 'The FinancialReportingStandardapplicablein the UK and Republicof Ireland'and the Charities Act 2011. The financial statements have been prepared under the historical cost convention. ``` ## **`Income`** ``` All incomeis recognisedin the Statementof FinancialActivitiesoncethe charityhasentitlementto the funds, it is probable that the income will be received and the amount can be measured reliably. ``` ``` Legacies are accounted for when received. ``` ## **`Expenditure`** ``` Liabilitiesarerecognisedasexpenditureassoonasthereisalegalorconstructiveobligationcommitting the charitytothatexpenditure,itisprobablethatatransferofeconomicbenefitswillberequiredin settlement andtheamountof theobligationcanbe measuredreliably.Expenditureis accountedforonanaccruals basis andhas been classifiedunderheadingsthataggregateall costrelatedto the category.Wherecostscannot be directlyattributedtoparticularheadingstheyhavebeenallocatedtoactivitiesonabasisconsistentwith the use of resources. ``` ## **`Stocks`** ``` Stock consists of good for resale. Stocks are valued at the lower of cost and net realisable value. ``` ## **`Taxation`** ``` The charity is exempt from tax on its charitable activities. ``` ## **`Fund accounting`** ``` Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. ``` ``` Restrictedfundscanonlybeusedforparticularrestrictedpurposeswithintheobjectsofthe charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. ``` ``` Furtherexplanationofthenatureandpurposeofeachfundisincludedinthenotestothe financial statements. ``` ## **`Pension costs and other post-retirement benefits`** ``` Thecharityoperatesadefinedcontributionpensionscheme.Contributionspayabletothecharity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ``` ## **`Bounce back loan scheme`** ``` TheCharityreceivedGovernmentsupportduringthepreviousperiodintheformoftheBounceBack Loan Scheme.Some paymentshavebeenmadein the currentperiodandthe remainingbalanceat the yearend is £49,537.04. ``` ``` continued... ``` ``` Page 12 ``` ``` ARTHOUSE Unlimited ``` ## **`Notes to the Financial Statements - continued`** ## **`for the Year Ended 31 May 2022`** |**`2.`**
**`DONATIONS AND LEGACIES`**
`Donations`
`Gift aid`
**`3.`**
**`INVESTMENT INCOME`**
`Investment income`
**`4.`**
**`INCOME FROM CHARITABLE ACTIVITIES`**
`Activity`
`Charitable Activities`
`Shop sales`
`Charitable Activities`
`Commissions`
`Charitable Activities`
`Online retail sales`
`Charitable Activities`
`Trade sales`
`Charitable Activities`
`Art sessions`
`Charitable Activities`
`Corporate gift sales`
**`5.`**
**`CHARITABLE ACTIVITIES COSTS`**
`Goods Purchased for Resale`
`Miscellaneous Purchases`
`Packaging and Carriage- Retail Sales`
`Marketing and PR`
`Courier Fees`
`Package and Carriage - Trade Sales`
`Artist Materials`|| |---|---| ``` continued... ``` ``` Page 13 ``` ``` ARTHOUSE Unlimited ``` ## **`Notes to the Financial Statements - continued`** ## **`for the Year Ended 31 May 2022`** ## **`6. SUPPORT COSTS`** |**`6.`**
**`SUPPORT COSTS`**|| |---|---| |`Governance`
`Other`
`costs`
`£`
`£`
`Other resources expended`
`129,720`
`6,000`
**`7.`**
**`AUDITORS' REMUNERATION`**
`31.5.22`
`£`
`Fees payable to the charity's auditors for the audit of the charity's financial`
`statements`
`4,000`
`Auditors' remuneration for non audit work`
`2,000`|`Totals`
`£`
`135,720`| ||`31.5.21`
`£`
`-`
`-`| ## **`8. TRUSTEES' REMUNERATION AND BENEFITS`** ``` Therewerenotrustees'remunerationorotherbenefitsfortheyearended31May2022norforthe year ended 31 May 2021. ``` ## **`Trustees' expenses`** ``` Duringthe year no trusteewas reimbursedfor expenses.One Trusteeswas reimbursed£1,740for expenses in the previous year. ``` ## **`9. STAFF COSTS`** ||`2022`|`2021`| |---|---|---| ||`£`|`£`| |`Wages and salaries`|`375,110`|`337,810`| |`Social security`|`28,510`|`29,734`| |`Pension costs`|`18,330`|`19,610`| |`Other staff costs`|`3,354`|`3,070`| |||| |`Total`|`425,305`|`390,224`| |||| |`The average monthly number of employees during the year was as follows:`
`Staff`|`31.5.22`
`27`|`31.5.21`
`23`| ``` No employees received emoluments in excess of £60,000. ``` ``` continued... ``` ``` Page 14 ``` ``` ARTHOUSE Unlimited ``` ## **`Notes to the Financial Statements - continued`** ## **`for the Year Ended 31 May 2022`** ## **`10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES`** |`Unrestricted`
`funds`
`£`
**`INCOME AND ENDOWMENTS FROM`**
`Donations and legacies`
`38,731`
**`Charitable activities`**
`Shop sales`
`22,607`
`Commissions`
`18,000`
`Online retail sales`
`296,546`
`Trade sales`
`452,487`
`Art sessions`
`68,590`
`Investment income`
`34`
`Other income`
`13,720`
**`Total`**
`910,715`
**`EXPENDITURE ON`**
**`Charitable activities`**
`Goods Purchased for Resale`
`349,862`
`Miscellaneous Purchases`
`2,729`
`Packaging and Carriage- Retail Sales`
`8,800`
`Marketing and PR`
`-`
`Courier Fees`
`5,799`
`Package and Carriage - Trade Sales`
`39,612`
`Artist Materials`
`-`
`Other`
`439,156`
**`Total`**
`845,958`
**`NET INCOME/(EXPENDITURE)`**
`64,757`
**`RECONCILIATION OF FUNDS`**
`Total funds brought forward`
`79,934`
**`TOTAL FUNDS CARRIED FORWARD`**
`144,691`|`Restricted`
`funds`
`£`
`77,691`
`-`
`-`
`-`
`-`
`-`
`-`
`-`
`77,691`
`-`
`-`
`-`
`15,251`
`-`
`-`
`1,022`
`79,220`
`95,493`
`(17,802)`
`27,975`
`10,173`|`Total`
`funds`
`£`
`116,422`
`22,607`
`18,000`
`296,546`
`452,487`
`68,590`
`34`
`13,720`| |---|---|---| |||`988,406`| |||`349,862`
`2,729`
`8,800`
`15,251`
`5,799`
`39,612`
`1,022`
`518,376`| |||`941,451`| |||`46,955`
`107,909`| |||`154,864`| ``` continued... ``` ``` Page 15 ``` ``` ARTHOUSE Unlimited ``` ## **`Notes to the Financial Statements - continued`** ## **`for the Year Ended 31 May 2022`** ## **`11. KEY MANAGEMENT`** ``` The total amount of employee benefits received by its Key Management personnel was £54,591 ``` ## **`12. CORONAVIRUS JOB RETENTION SCHEME`** ``` A sum of £13,720.17 was received in the 2021 (£nil in 2022) from the government towards salaries and wages ``` ## **`13. FUTURE COMMITMENTS`** ``` At 31 May 2022 the Charity had annual commitments under operating leases as follows: ``` ||`96 High Street`|`Vehicle`|`Total 2021`|`Total 2020`| |---|---|---|---|---| ||`£`|`£`|`£`|`£`| |||||| |`Within one year`|`35,000`|`3,324`|`38,324`|`36,762`| |`Within 2-5 years`|`140,000`|`1,662`|`141,662`|`144,986`| |`More than 5 years`|`56,863`|`-`|`56,863`|`91,863`| |||||| |`Total`|`231,863`|`4,986`|`236,849`|`273,611`| |||||| ## **`14. TANGIBLE FIXED ASSETS`** ``` Depreciationisprovidedatthefollowingannualratesinordertowriteoffthecostlessestimated residual value of each asset over its estimated useful life. ``` |`Furniture, fittings and office equipment`
**`15.`**
**`STOCKS`**
`Goods held for resale`
**`16.`**
**`DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR`**
`Trade debtors`|`20%-33.3% straight line`|`20%-33.3% straight line`| |---|---|---| ||`31.5.22`
`£`
`150,844`
`31.5.22`
`£`
`50,168`|`31.5.21`
`£`
`125,405`
`31.5.21`
`£`
`25,436`| ``` continued... ``` ``` Page 16 ``` ``` ARTHOUSE Unlimited ``` ## **`Notes to the Financial Statements - continued`** ## **`for the Year Ended 31 May 2022`** ## **`17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR`** |`Trade creditors`
`Taxation and social security`
`Other creditors`
**`18.`**
**`CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR`**
`Other creditors`
**`19.`**
**`MOVEMENT IN FUNDS`**
`At 1.6.21`
`£`
**`Unrestricted funds`**
`General fund`
`144,691`
**`Restricted funds`**
`Awards for all`
`4,722`
`Fundraising`
`417`
`The National Lottery Community Fund`
`3,534`
`Artist fund`
`1,500`
`Big Issue`
`-`
`Wates foundation`
`-`
`10,173`
**`TOTAL FUNDS`**
`154,864`
`Net movement in funds, included in the above are as follows:`
`Incoming`
`resources`
`£`
**`Unrestricted funds`**
`General fund`
`1,224,286`
**`Restricted funds`**
`The National Lottery Community Fund`
`42,087`
`Big Issue`
`31,000`
`Wates foundation`
`7,000`
`80,087`
**`TOTAL FUNDS`**
`1,304,373`|`31.5.22`
`£`
`25,461`
`23,924`
`35,347`
`84,732`
`31.5.22`
`£`
`169,394`
`Net`
`movement`
`in funds`
`£`
`31,117`
`-`
`-`
`(3,534)`
`-`
`31,000`
`6,000`
`33,466`
`64,583`
`Resources`
`expended`
`£`
`(1,193,169)`
`(45,621)`
`-`
`(1,000)`
`(46,621)`
`(1,239,790)`|`31.5.21`
`£`
`13,889`
`24,505`
`24,775`
`63,169`
`31.5.21`
`£`
`147,227`
`At`
`31.5.22`
`£`
`175,808`
`4,722`
`417`
`-`
`1,500`
`31,000`
`6,000`
`43,639`
`219,447`
`Movement`
`in funds`
`£`
`31,117`
`(3,534)`
`31,000`
`6,000`
`33,466`
`64,583`| |---|---|---| ``` continued... ``` ``` Page 17 ``` ``` ARTHOUSE Unlimited ``` ## **`Notes to the Financial Statements - continued`** ## **`for the Year Ended 31 May 2022`** ## **`19. MOVEMENT IN FUNDS - continued`** ## **`Comparatives for movement in funds`** |`At 1.6.20`
`£`
**`Unrestricted funds`**
`General fund`
`79,934`
**`Restricted funds`**
`Awards for all`
`4,722`
`Fundraising`
`417`
`The National Lottery Community Fund`
`22,336`
`Artist fund`
`500`
`27,975`
**`TOTAL FUNDS`**
`107,909`
`Comparative net movement in funds, included in the above are as follows:`
`Incoming`
`resources`
`£`
**`Unrestricted funds`**
`General fund`
`910,715`
**`Restricted funds`**
`The National Lottery Community Fund`
`76,691`
`Artist fund`
`1,000`
`77,691`
**`TOTAL FUNDS`**
`988,406`|`Net`
`movement`
`At`
`in funds`
`31.5.21`
`£`
`£`
`64,757`
`144,691`
`-`
`4,722`
`-`
`417`
`(18,802)`
`3,534`
`1,000`
`1,500`
`(17,802)`
`10,173`
`46,955`
`154,864`
`Resources`
`Movement`
`expended`
`in funds`
`£`
`£`
`(845,958)`
`64,757`
`(95,493)`
`(18,802)`
`-`
`1,000`
`(95,493)`
`(17,802)`
`(941,451)`
`46,955`| |---|---| ``` continued... ``` ``` Page 18 ``` ``` ARTHOUSE Unlimited ``` ## **`Notes to the Financial Statements - continued for the Year Ended 31 May 2022`** ## **`19. MOVEMENT IN FUNDS - continued`** ``` A current year 12 months and prior year 12 months combined position is as follows: ``` |**`Unrestricted funds`**
`General fund`
**`Restricted funds`**
`Awards for all`
`Fundraising`
`The National Lottery Community Fund`
`Artist fund`
`Big Issue`
`Wates foundation`
**`TOTAL FUNDS`**|`At 1.6.20`
`£`
`79,934`
`4,722`
`417`
`22,336`
`500`
`-`
`-`
`27,975`
`107,909`|`Net`
`movement`
`in funds`
`£`
`95,874`
`-`
`-`
`(22,336)`
`1,000`
`31,000`
`6,000`
`15,664`
`111,538`|`At`
`31.5.22`
`£`
`175,808`
`4,722`
`417`
`-`
`1,500`
`31,000`
`6,000`| |---|---|---|---| ||||`43,639`| ||||`219,447`| ``` A currentyear12monthsandprioryear12monthscombinednetmovementinfunds,includedinthe above are as follows: ``` |**`Unrestricted funds`**
`General fund`
**`Restricted funds`**
`The National Lottery Community Fund`
`Artist fund`
`Big Issue`
`Wates foundation`
**`TOTAL FUNDS`**|`Incoming`
`resources`
`£`
`2,135,001`
`118,778`
`1,000`
`31,000`
`7,000`
`157,778`
`2,292,779`|`Resources`
`expended`
`£`
`(2,039,127)`
`(141,114)`
`-`
`-`
`(1,000)`
`(142,114)`
`(2,181,241)`|`Movement`
`in funds`
`£`
`95,874`
`(22,336)`
`1,000`
`31,000`
`6,000`
`15,664`
`111,538`| |---|---|---|---| ``` continued... ``` ``` Page 19 ``` ``` ARTHOUSE Unlimited ``` ## **`Notes to the Financial Statements - continued`** ## **`for the Year Ended 31 May 2022`** ## **`20. RELATED PARTY DISCLOSURES`** ``` There were no related party transactions for the year ended 31 May 2022. ``` ## **`21. ULTIMATE CONTROLLING PARTY`** ``` The Board of Trustees are considered to be the ultimate controlling party. ``` ## **`22. FUNDS`** ## **`General Fund`** ``` The general fund is used for the day to day running of the Charity. ``` ## **`Awards for All`** ``` This fund is for the purpose of recruiting, supporting and training volunteers. ``` ## **`Fundraising`** ``` This fund is for the purpose of employing a fundraising consultant for 12 months. ``` ## **`The National Lottery Fund`** ``` ThisfundistosupporttheprovisionofartopportunitiesinSurreycommunities,specificallyforadultswith a dual diagnosis of a complex learning disability and epilepsy. ``` ## **`Artist Fund`** ``` Thisfundis to enableprovisionof improvedandbespokesound,communicationandIT equipmentforuse by the Artists to enhance the atmosphere and working environment of the studio. ``` ## **`Wates Foundation`** ``` Received for the provision of support work training for the Art Instructors ``` ## **`Big Issue Grant`** ``` Fundingprovidedfor improvementof premises which can be moved in the futureshouldARTHOUSE Unlimited relocate. ``` ``` Page 20 ``` ``` ARTHOUSE Unlimited ``` ## **`Detailed Statement of Financial Activities for the Year Ended 31 May 2022`** |**`INCOME AND ENDOWMENTS`**
**`Donations and legacies`**
`Donations`
`Gift aid`
**`Investment income`**
`Investment income`
**`Charitable activities`**
`Charitable Activities`
**`Other income`**
`Government grant`
**`Total incoming resources`**
**`EXPENDITURE`**
**`Charitable activities`**
`Marketing and PR`
`Artist materials`
`Goods purchased for sale`
`Carriage/courier`
`Packaging and carriage`
`Miscellaneous purchases`
**`Other`**
`Wages`
`Social security`
`Pensions`
`Bank charges`
`Professional fees`
`Bad debts`
`Other staff costs`
`Depreciation of tangible fixed assets`
**`Support costs`**
**`Other`**
`Light and heat`
`Carried forward`|`31.5.22`
`£`
`145,523`
`1,076`
`146,599`
`14`
`1,157,760`
`-`
`1,304,373`
`34,016`
`1,664`
`541,415`
`5,702`
`76,273`
`3,001`
`662,071`
`375,111`
`28,510`
`18,330`
`3,363`
`2,345`
`300`
`3,354`
`10,686`
`441,999`
`5,849`
`5,849`|`31.5.21`
`£`
`115,306`
`1,116`
`116,422`
`34`
`858,230`
`13,720`
`988,406`
`15,251`
`1,022`
`349,862`
`5,799`
`48,412`
`2,729`
`423,075`
`337,810`
`29,734`
`19,610`
`2,592`
`10,333`
`(17,500)`
`3,070`
`12,083`
`397,732`
`5,028`
`5,028`| |---|---|---| ``` This page does not form part of the statutory financial statements ``` ``` Page 21 ``` ``` ARTHOUSE Unlimited ``` ## **`Detailed Statement of Financial Activities`** |**`Detailed Statement of Financial Activities`**||| |---|---|---| |**`for the Year Ended 31 May 2022`**
**`Other`**
`Brought forward`
`Telephone`
`Sundries`
`Rent and rates`
`Travelling`
`Printing and stationery`
`Maintenance, equipment hire an d rental`
**`Governance costs`**
`Auditors' remuneration`
`Auditors' remuneration for non audit work`
`Total resources expended`
**`Net income`**|`31.5.22`
`£`
`5,849`
`44,671`
`12,033`
`47,221`
`7,619`
`6,616`
`5,711`
`129,720`
`4,000`
`2,000`
`6,000`
`1,239,790`
`64,583`|`31.5.21`
`£`
`5,028`
`35,175`
`5,698`
`48,294`
`2,128`
`13,628`
`10,693`| |||`120,644`
`-`
`-`| |||`-`| |||`941,451`| |||`46,955`| ``` This page does not form part of the statutory financial statements ``` ``` Page 22 ```