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2021-06-30-accounts

Charity Registration No. 1190216

Company Registration No. 12121475 (England and Wales)

UNDEREXPOSED ARTS

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2021

AMENDED

UNDEREXPOSED ARTS

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr J E L Fraser Mr Franklyn Rodgers Mr Graham Martin FCCA (Appointed 31 March 2021) Dr Faisal Abdu'Allah (Appointed 31 March 2021) Ms Gemma Diane Seltzer (Appointed 2 November 2021)

Secretary Mr J E L Fraser Charity number 1190216 Company number 12121475 Registered office 27 Mortimer Street London W1T 3BL Independent examiner Stephen McAlpine BA (Econ) FCA SBM Associates Limited, trading as SBM & Co 24 Wandsworth Road London SW8 2JW

UNDEREXPOSED ARTS

CONTENTS

Page
Trustees' report 1 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 11

UNDEREXPOSED ARTS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE PERIOD ENDED 30 JUNE 2021

The trustees present their annual report and financial statements for the Period ended 30 June 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's memorandum and articles , the Companies Act 2006 and "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

Policies and objective s

UNDEREXPOSED ARTS is a Black-led creative charity celebrating black British, dual heritage African/Caribbean and culturally diverse talent and promoting aspiration through national arts-led initiatives.

The policies and objectives are closely tied with the aim of the charity described above. In setting objectives and planning for activities, the founders and trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit and there has been no change in these during the Period.

Activities for achieving objectives

The charity’s activities towards achieving its objectives are:

UNDEREXPOSED ARTS’ key strategic objectives this year were:

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

UNDEREXPOSED ARTS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2021

Achievements and performance

During 2020/21, UNDEREXPOSED ARTS successfully met its objectives in the following ways:

We also increased our resilience as an organisation by working closely with a fundraising specialist at Almond Tree Consulting and by recruiting a part time Operations Manager:

We also expanded our board of trustees, to enhance our governance and infrastructure:

The management of the charity is the responsibility of the trustees who are appointed and co-opted under the terms of the Articles of Association. New trustees are proposed following a transparent, skills-based recruitment process and approved by trustees at board meetings.

In terms of our fundraising achievements, we were successful in achieving an Arts Council Cultural Recovery Fund grant of £88,200. We also secured £175,000 and support in kind from Amazon.

UNDEREXPOSED ARTS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2021

Going Forward

We are confident that we’ll continue to grow and develop our projects in 2022, despite the uncertainty of funding and challenges of working in the public sphere and with people during the global pandemic.

We continue to develop our own work and seek collaborations that underpin and deliver our core objectives.

Our key plans for the next 1-2 years include:

We will make the role of Operations Manager permanent. We will work closely with our team of exceptional freelancers, as well as our Board of Trustees to deliver our aims for 2021/22 to the highest standard.

Financial review

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity ’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the Period.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The charity is a company limited by guarantee and was set up by a Memorandum of association on 2 July 2022 .

The trustees, who are also the directors for the purpose of company law, and who served during the Period and up to the date of signature of the financial statements were: Mr J E L Fraser

Mr Franklyn Rodgers Mr Graham Martin FCCA (Appointed 31 March 2021) Dr Faisal Abdu'Allah (Appointed 31 March 2021) Ms Gemma Diane Seltzer (Appointed 2 November 2021)

UNDEREXPOSED ARTS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2021

Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The company's current policy concerning the payment of trade creditors is to:

Trade creditors of the company at the year end were equivalent to XX day's purchases, based on the average daily amount invoiced by suppliers during the year.

The trustees' r eport was approved by the Board of Trustees.

Mr Graham Martin FCCA

UNDEREXPOSED ARTS

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF UNDEREXPOSED ARTS

I report to the trustees on my examination of the financial statements of Underexposed Arts (the charity) for the Period ended 30 June 2021.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable 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 that in any material respect:

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 financial statements to be reached.

Stephen B McAlpine BA(Econ) FCA

SBM Associates Limited, trading as SBM & Co 24 Wandsworth Road London SW8 2JW

Dated: 1 April 2022

UNDEREXPOSED ARTS

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 30 JUNE 2021

Unrestricted Unrestricted
funds
funds
2021
2020
Notes
£

£
Income from:
Donations and legacies 3 90,796
31,964
Expenditure on:
Charitable activities
4 77,789
31,964
Total charitable expenditure 77,789
31,964
Net income for the Period/
Net movement in funds 13,007
-
Fund balances at 1 July 2020 -
-
Fund balances at 30 June 2021 13,007
-

The statement of financial activities includes all gains and losses recognised in the Period.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

UNDEREXPOSED ARTS

BALANCE SHEET

AS AT 30 JUNE 2021

Notes
Current assets
Cash at bank and in hand
Creditors: amounts falling due within
one year
7
Net current assets
Income funds
Unrestricted funds
2021
£
19,007
(6,000)
2020
£
£
22,496
(22,496)
13,007
13,007
13,007
£
-
-
-

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the Period ended 30 June 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the Period in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 1 April 2022

Mr Graham Martin FCCA

Trustee

Company registration number 12121475

UNDEREXPOSED ARTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2021

1 Accounting policies

Charity information

Underexposed Arts is a private company limited by guarantee incorporated in England and Wales. The registered office is 27 Mortimer Street, London, W1T 3BL.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006 and "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)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention. The accounts present a true and fair view and no changes have been made to the principal accounting policies adopted below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

The charity received money mainly through Arts Council grants during the year. Total of the grants received is shown in note 3 of the accounts.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Costs are accounted for when they are incurred, with irrecoverable VAT being charged as a cost against the relevant activity.

UNDEREXPOSED ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2021

1 Accounting policies

(Continued)

Costs of charitable activities relate to the furtherance of the charitable objectives

Costs of raising funds relate to events and other activities through which the companies raises its profile

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7 Financial instruments

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets classified as receivable within one year are not amortised

Basic financial liabilities

Trade creditors are obligations to pay for gods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

UNDEREXPOSED ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2021

3 Donations and legacies

Unrestricted Unrestricted
funds
funds
2021
2020
£
£
Donations and gifts 100
3,000
Grants receivable 90,696
28,964
90,796
31,964

4 Charitable activities

Exhibition expenses
Computer running costs
Travelling expenses
Legal and professional fees
Bank charges
Insurance
Printing and stationery
Research and development costs
2021
£
71,914
4,169
579
-
6
1,121
-
-
77,789
77,789
2020
£
28,493
2,475
189
619
17
-
3
168
31,964
31,964

5 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the Period.

6 Employees

The average monthly number of employees during the Period was:

2021 2020
Number Number
Trustees 5 4

UNDEREXPOSED ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 JUNE 2021

6
Employees
There were no employees whose annual remuneration was more than £60,000.
7
Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income
(Continued)
2021
2020
£
£
6,000
6,000
-
16,496
6,000
22,496

8 Related party transactions

Transactions with related parties

During the Period the charity entered into the following transactions with related parties:

Franklyn Rodgers and James Fraser were both paid fees for £14,800 each for services provided for the charity.