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2022-03-31-accounts

HYPHA STUDIOS

TRUSTEES REPORT AND FINANCIAL STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

Charity Reg. No: 1194915

CONTENTS

CONTENTS
Charity Information 1-3
Trustees Annual Report 4-10
Independent Examiner Report 11
Statement of Financial Activities 12
Balance Sheet 13
Notes to Accounts 14-16

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CHARITY INFORMATION

CONSTITUTION

Charitable Incorporated Organisation Constitution Model: The Charity Commission’s ‘Foundation’ model constitution

TRUSTEES

William Davis Appointed 23/06/2021 Joseph Green Appointed 23/06/2021 Natasha Marks Appointed 23/06/2021 Hannah Travers Appointed 01/04/2022 Natalie Bone Appointed 18/03/2022

EMPLOYEES

Camilla Cole Founder and Managing Director Will Jennings Non-Executive Director Anna Gaskell Fundraising Manager

ADVISORY BOARD

Adam Walker Nicola Blake

ADMINISTRATIVE INFORMATION

Registered Charity Number: 1194915

Registered Address: 3rd Floor 86-90 Paul Street, London, EC2A 4NE

Bankers: CAF Bank Limited

Accountants: Enodel UK Limited t/a i-solve Accounting & HR, 29 Main Road, Romford, Essex, RM1 3DD

Solicitors: Greenwoods 1 Bedford Row, London, WC1R 4BZ

Insurers: Weald Insurance, Knighthood House, Imberhorne Ln, East Grinstead RH19 1LB

www.hyphastudios.com Twitter @hyphastudios Facebook@hyphastudios LinkedIn Hypha Studios Instagram @hyphastudios

We are supported by Arts Council England

WHY HYPHA STUDIOS ARE HERE:

Hypha Studios is a charity matching creatives with empty spaces & regenerating the high street with cultural hubs & events for local communities.

By providing free studios & project space Hypha Studios acts as an incubator for creatives to test new ideas without financial obstacles. The Charity provides opportunities to those who might not be able to access space, support or visibility.

In return for the free space, creatives organise public events, engaging communities, supporting the locality & benefiting the high street.

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TRUSTEES ANNUAL REPORT

The Trustees submit their annual report together with the financial statements of Hypha Studios (the charity) for the year ended 31 March 2022. The Trustees confirm that the annual report and financial statements of the church comply with current statutory requirements, the requirements of the church's governing documents and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in March 2005.

LEGAL STRUCTURE, GOVERNANCE AND MANAGEMENT

CONSTITUTION

Hypha Studios was established as a CIO in July 2021. The company was established under a Memorandum of Association, stating the objects and powers of the charitable company, and is governed and administered in accordance with its Articles of Association.

METHOD OF APPOINTMENT OR ELECTION OF DIRECTORS/TRUSTEES

The Board of trustees comprises individuals. Trustees serve for 1 or 2 years and are eligible for re-election. All members of the Board serve in an individual capacity with a duty to support Hypha Studios rather than to act as representatives of a particular interest group.

Trustees are recruited through an open process. Vacancies are advertised widely, with an emphasis on recruiting from a diverse range of backgrounds to meet the organisation’s skills and knowledge needs. Applications are shortlisted by the Nominations Committee, which comprises the Chair, two trustees and the CEO. Following interview of shortlisted candidates, recommendations for appointment are proposed to the full Board for their consideration and approval.

Following a recruitment campaign in early 2021, we received 8 applications from individuals seeking to join the Board. Following interviews in March, we invited two new trustees onto the Board.

On appointment, trustees receive an induction pack comprising the governing documents, strategic planning documents, corporate policies and any other relevant materials. They are also provided with up-to-date materials on charity governance, including Charity Commission guidance, the Charity Governance Code. New trustees meet with staff to understand their roles in the organisation and are invited to attend Hypha Studios’ events. Opportunities for Trustee training are provided.

ORGANISATIONAL STRUCTURE AND DECISION MAKING

COMMITTEES

Establishment and Authority

The Governing Document or Constitution of the Charity contains provisions relating to the establishment of committees by the trustees. Each committee shall have such powers and authority as shall be authorised by the trustees, and may fix its own rules and procedures, and adopt its own charter, in each case subject to approval by the trustees.

The trustees may abolish any such committee at any time in their sole discretion, and any committee members may resign at any time in writing, or be removed by action of a majority of trustees. Any committee to which the trustees delegate any of their powers shall maintain records of its meetings and shall report its actions to the trustees.

The trustees shall have the power to rescind any action of any committee, but no such rescission shall have retroactive effect. The trustees shall have the power at any time to fill vacancies in the committees. The trustees may designate one or more trustees as alternate members of any committee who may replace any

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absent member at any meeting of the committee.

To date, no Committees have been established, but Charity trustees are aware that if the Charity gains NPO status, a designated Chairperson will be appointed to represent the views of the Board and communicate with Arts Council England independently of the Charity’s leadership.

Regular Meetings

Regular meetings of the trustees are held at least every three months. The agenda is circulated at least one week prior to the meeting.

In the 2021/22 financial year, the board of trustees have had quarterly meetings: September 2021 January 2021 April 2022

Special Meetings

Special meetings of the trustees may be held at any time and at any place (including for these purposes, by means of conference telephone circuit, video conferencing or similar communications equipment by means of which all persons participating in the meeting can hear each other as provided for in the Declaration) designated in the call of the meeting when called by the Chair, or by two or more trustees, sufficient notice thereof as described below being given to each Trustee by the person calling the meeting.

EXECUTIVE TEAM

The Board appoints a Managing Director to shape Hypha Studios strategic direction and lead the organisation. The Managing Director (who is also the Chief Executive) formally reports on progress to the full Board every quarter. Staff remuneration is subject to the Charity’s actual income - currently all three staff members do not receive salaries, although they receive financial contributions (as the Charity can afford) for their work and time from unrestricted revenue or from restricted income in the form of allocations for their specific tasks on specific projects.

DECISION MAKING - OPEN CALLS - ARTISTS

The Charity accepts applications from creative practitioners across all mediums and has a variety of sites coming up to host a variety of art forms. The Charity understands application processes can be time consuming so have restricted the answers to a maximum of 100 words.

For short-term project space, there are approximately two to three weeks between the initial publication of the ‘Open Call’ and the application deadline date. For each placement five proposals are shortlisted by the Charity to be put forward to the selection panel composed of trustees and a local cultural partner (such as a curator of a museum).

The areas that the Charity, trustees and cultural partners focus on are the applicant’s plans for using the space, how it would develop their practice, and their public engagement event(s). Artists do not need to apply with a fully formed event plan as the Charity understands work in the studio space (and the space itself) may inform what the artist does, but an initial plan is required. The objectives are to engage local communities and show artists’ work to a wider audience.

The selection panel makes the final selection based on: need, merit, career impact and public programme. The cultural partner(s) on the selection panel ensures that the selected artists suit the needs and desires of the local community.

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GRANT MAKING POLICIES

Currently Hypha Studios does not give grants. Should this change in the future a Grant Policy must be approved by the trustees before any funds are granted.

RISK MANAGEMENT

The trustees meet regularly to review the financial position and to ensure that effective management and controls are in place. The trustees have assessed the major risks to which Hypha Studios is exposed. In particular, these relate to securing sufficient number of new sites, securing sufficient remuneration for existing and new staff, financial sustainability, and external contractors’ compliance with the Charity’s Service Agreements.

The Board of trustees review the charity’s risk register (established June 2022) quarterly where there are changes, and otherwise annually. Attending to all risk categories (governance, operational, financial, external), they monitor risk status (probability and impact) and take action to manage each risk as appropriate.

The trustees and leadership ensure that Hypha Studios’ operations are protected against significant risk through annual monitoring, action planning and risk assessment procedures. Hypha Studios has Public Liability Insurance cover of up to £10m and a reserves policy that includes a continuation fund of 6 months operating costs.

The Board is satisfied that systems are in place to mitigate, or control where possible, Hypha Studios’ exposure to the risks mentioned above.

VOLUNTEERS

Hypha Studios does not have any volunteers.

OBJECTIVES AND ACTIVITIES

The objects of the CIO are for the benefit of the general public to promote and advance creative arts in all its forms in particular but not exclusively by:

SUMMARY FOR ACHIEVING OBJECTIVES

STRATEGIES:

A) The creative(s) that Hypha Studios selects for each space deliver a public programme that is of interest to the local community. This can be a workshop, exhibition, or performance. Wherever possible the Charity will invite a local cultural institution to be part of the selection committee (alongside the trustees) to ensure the selected candidate is most beneficial and interesting to the local community.

B) By working with landlords and councils the Charity places creatives in publicly facing properties, which can be in any part of the country, allowing engagement with the arts in areas where there is often very little investment in culture and in spaces which communities are comfortable going into - like former shops. This creates great access for the arts for the general public across Britain, as all the creatives produce events that engage local communities, for free or at low cost.

C) The Charity secures vacant commercial space and matchmake local creatives with it to use for free from short-term project space to longer. The Charity does not charge anything for use of the spaces - no utilities (where possible), rates or rent.

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ACTIVITIES FOR ACHIEVING OBJECTIVES

A) Collectively, the artists have put on 148 events for the public, including exhibitions; workshops; performances and portraiture, engaging an estimated 3,169 people (live). Audiences represented a broad mix of ethnicities and were a mix of those new to art (curious, just passing by) and more seasoned art-goers.

B) The Charity has built 17 working relationships with councils, cultural and private partners in these areas, with new ones in the making. The Charity works in shopping centers (Bristol), high street shops (Crawford, Eastbourne, Horsham, Derby, Southport and Islington), council assets (Chingford and Barking), arcades (Penrith and Dudley). These spaces spread across Britain are often in areas without cultural offerings and provide access to the creative arts to the public that did not exist before

C) In the Charity’s 1st year we supported 32 artists/artists’ collectives (over 100 individual artists in total) with free space and visibility near where they live, saved them thousands on rent, supported them to develop new work and engage the public, and kickstarted or re-invigorated their careers. In terms of representation and broadening engagement: 30% of the artists have had ethnic backgrounds that were not white British.

AWARDS

Shortlisted for The Pineapples awards for the Hypha Studios’ project at Broadwalk Shopping Centre in Bristol. The Pineapples are the only awards that celebrate making places where people thrive with an emphasis on the social and environmental impact of a project’s design and development.

Launched in 2019 by The Developer, The Pineapples are unique in their judging format and process. Shortlisted built projects are visited by at least one judge, who assesses the quality of these places using methodology developed with the Design Council and shaped using the 12 principles of public space by the Gehl Institute and the UN Sustainable Development Goals.

MONITORING AND EVALUATION

The Charity is monitoring its impact to:

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The Charity gathers baseline data from application and onboarding forms, residency-specific data from surveys sent to the artists at middle and end of their placements (end only if the residency is under 4 weeks), audience feedback via placed creatives, and qualitative and anecdotal data from artists and audiences via interviews and regular communications. Data is collected via conversations, emails, forms and surveys, and summarised verbally (as above), and in basic infographics (via Zoho Surveys). The Charity is transparent about its data collection purposes.

FINANCIAL RESILIENCE AND FUNDRAISING PERFORMANCE

Charitable activities income:

Even though the Charity is under a year old, and started in a pandemic - through careful financial management, cost control and early stage fundraising performance, the Charity managed risk by minimising costs and eliminating non-essential expenditure, and the Charity grew from one full time member of staff to include an additional two part time staff members. The Charity now needs to build up its reserves, which will be £13,000 (see Reserves Policy below). The Charity does not pay for offices so the charity’s main expenditures are staffing, administration and money for the public programmes.

In order to scale the work of the Charity and become increasingly financially resilient, the Charity is applying to Nesta for a loan (£150,000, September 2022) to recruit two new members of staff and access impact consultancy services - expenditures that are projected to increase capacity, productivity and income. The Charity has also applied for National Portfolio Organisation (NPO) status from Arts Council England for three years of core funding to enable the Charity to deliver on Arts Council Englands’ Let’s Create Strategy). The Charity will be notified of the outcome in October 2022, and, if successful, will receive this funding from April 1st 2023 to March 31st 2026.

Income at 1 April 2021: £22,327

Fundraising Performance

During the year, the charity has secured:

Arts Council England: £42,000

London Borough of Lewisham: £2,499

London Borough of Lewisham and Barking: £3,000

The Charity is now working on its fundraising strategy, with plans to concentrate on project grant applications for Arts Council England or Government/Town Centre grants and securing donations from private donors. Although at early stages, the Charity has had some interest from potential donors.

RESERVES POLICY

Reserves are intended to cover:

  1. Essential activities whilst sourcing income to a maximum of six months budgeted activity.

  2. The costs of dissolution should the charity be unable to continue. It is only to be used in the event of the trustees’ deciding the charity should cease to exist. It will be used to pay notice periods, redundancies and the expenses of running Hypha Studios until closure of the organisation.

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Amounts:

Amounts:
1.
Essential activities for six months		 £12,000
2.
Organisation dissolution costs		 £1,000

Notes:

Dissolution costs at 24[th] May 2022 are set at £1,000 to cover legal fees and other contingency fees of the process. Notice periods and redundancy costs are not included due to all staff working on a voluntary basis without contracts.

Annual review of Reserves Policy

Due to the nature of the organisation and the regular review of income and expenditure, this policy should be reviewed on an annual basis to ensure:

Policy dated 24[th] May 2022

Review date: June Quarterly meeting, 2023.

FUTURE PLANS

Hypha Studios plans to continue to scale its support and work across the UK. The Charity is seeking funding for key roles (Artist Manager and Property Professional) that are projected to (respectively) increase support for artists and increase the number of sites the Charity operates in. Dedicated staff in these roles will also enable the existing team to focus on strategy, fundraising, and to learn how to effectively monitor, evaluate, and communicate impact. The aim is to work in more places, supporting more artists and communities, as well as to build the Charity’s reserves for financial resilience and sustainable organisational development.

To secure these future plans, the Charity has been focusing on

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Trustees' Responsibilities in Relation to the Financial Statements

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and regulations.

The Charities Act requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for that period. In preparing these financial statements, the trustees are required to:

a) Select suitable accounting policies and apply them consistently;

b) Make judgments and estimates that are reasonable and prudent;

c) State whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements.

d) 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 proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the Financial statements comply with the Charities Act 1993. They are also responsible for safeguarding the assets of the charity and hence for taking any reasonable steps for the prevention and detection of fraud and other irregularities.

Approval

This report was approved by the Board of Trustees and signed on their behalf by:

Signature:

Position: Chair

Name: William Davis Date: 30 June 2022

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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HYPHA STUDIOS

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2022, which are set out on pages 15 to 19.

RESPONSIBILITIES AND BASIS OF REPORT

As the charity’s trustees of the Company (who are also the directors of the company 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 for this year 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 Act2011 (“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 and can confirm that no material matters have come to my attention, which gives me cause to believe that:

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

Olusiji Odeleye Director

Enodel UK Ltd t/a i-solve Accounting & HR 29 Main Road Romford Essex RM1 3DD

21 June 2022

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HYPHA STUDIOS

STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 31 March 2022

Unrestricted Restricted
funds funds Total
Notes 2022 2022 2022
£ £ £
INCOMING RESOURCES
Grants & Donations - 43,011 43,011
Charitable activities 18,874 - 18,874
TOTAL INCOMING RESOURCES 1 18,874 43,011 61,885
RESOURCES EXPENDED
Raising funds 2 5,252 - 5,252
Charitable activities:
Fostering & improving public education, interest and appreciation in
all forms of the creative arts 3 - 6,203 6,203
Provision of public programme & encouraging access to arts for the
general public 4 - 16,097 16,097
Provision & facilitating of access to affordable workspace & assisting
artists 5 - 12,006 12,006
TOTAL RESOURCES EXPENDED 5,252 34,306 39,558
NET INCOMING / (OUTGOING) RESOURCES FOR THE YEAR 13,622 8,705 22,327
TOTAL FUNDS AT 1 APRIL 2021 - - -
Transfer between funds - - -
TOTAL FUNDS AS AT 31 MARCH 2022 13,622 8,705 22,327

HYPHA STUDIOS

BALANCE SHEET as at 31 March 2022

Note
FIXED ASSETS
Tangible fixed assets
CURRENT ASSETS
Debtors
6
Cash in hand / bank
CURRENT LIABILITIES :
amounts falling due within one year
7
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
FUNDS
Unrestricted
Restricted
8
TOTAL FUNDS		 £
15,949
8,978		 2022
£
-
22,327
13,622
8,705
22,327

a) For the year ending 31 January 2021 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

b) The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

c) The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

Approved by the Trustees and Signed on their behalf:

Signature:

Name: William Davis

Date: 30 June 2022

HYPHA STUDIOS

NOTES TO THE ACCOUNTS

For the year ended 31 March 2022

1. DONATIONS

1.
DONATIONS
Grants & Donations
CHARITABLE ACTIVITIES
Contributions towards Art projects
2.
RAISING FUNDS
Accountancy Fees
Insurance
Misc Expenses
Office Admin
Repairs, maintenance & renewals
Bank Charges
Travel & Subsistence
Others		 Unrestricted
funds
2022
£
-
-
Unrestricted
funds
2022
£
18,874
18,874
Unrestricted
funds
2022
£
1,800
1,694
688
879
-
40
151
-
5,252		 Restricted
funds
2022
£
43,011
43,011
Restricted
funds
2022
£
-
-
Restricted
funds
2022
£
-
-
-
-
-
-
-
-
-		 Total
2022
£
43,011
43,011
Total
2022
£
18,874
18,874
Total
2022
£
1,800
1,694
688
879
-
40
151
-
5,252

HYPHA STUDIOS

NOTES TO THE ACCOUNTS

For the year ended 31 March 2022

3. Fostering & improving public education, interest and appreciation in all forms of the creative arts:

Unrestricted
funds
2022
£
Marketing & PR
-
-		 Restricted
funds
2022
£
6,203
6,203		 Total
2022
£
6,203
6,203

4. Provision & facilitating of access to affordable workspace & assisting artists:

Unrestricted
funds
2022
£
Consultancy
-
Recruitment
-
Legal & other professional fees
-
-		 Restricted
funds
2022
£
14,237
-
1,860
16,097		 Total
2022
£
14,237
-
1,860
16,097

5. Provision of public programme & encouraging access to arts for the general public:

Unrestricted Restricted
funds funds Total
2022 2022 2022
£ £ £
Public Programme days (Event costs) - 12,006 12,006

HYPHA STUDIOS

NOTES TO THE ACCOUNTS

For the year ended 31 March 2022

6 DEBTORS

DEBTORS
Accrued Income
CREDITORS - due within one year
Accruals
Other Creditors		 2022
£
15,949
15,949
2022
£
900
1,700
2,600

7 CREDITORS - due within one year

8 RESTRICTED FUNDS

RESTRICTED FUNDS
Arts Council England
London Borough of Lewisham
London Borough of Barking & Dagenham		 Movement in funds
Balance at
Incoming
01 April 2021
Designations
£
£
-
40,512
-
2,499
-
3,000
-
46,011		 Expenditure,
gains, losses
Released
£
31,807
2,499
3,000
37,306		 Balance at
31 March 2022
£
8,705
-
-
8,705