2023-12-31-accounts

Charity registration number 1197785

Company registration number 13632478 (England and Wales)

THE ASPECT FOUNDATION FOR MUSIC AND ARTS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

S Johnston I Knaster F Friedman

Charity number 1197785 Company number 13632478 Registered office 25 Park Lane London W1K 1RA Auditor Whitley Stimpson Limited Penrose House 67 Hightown Road Banbury Oxfordshire OX16 9BE

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

CONTENTS

	Page
Trustees' report	1 - 3
Statement of trustees' responsibilities	4
Independent auditor's report	5 - 7
Statement of financial activities	8
Balance sheet	9
Statement of cash flows	10
Notes to the financial statements	11 - 19

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees present their annual report and financial statements for the year ended 31 December 2023.

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 charitable company'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 financial statements have been prepared having taken advantage of the small companies exemption in the Companies Act 2006.

Objectives and activities

The Aspect Foundation for Music and Arts is the incorporated form of the charitable trust, Aspect Foundation for Music and Arts, sharing the same trustees and charitable objectives (“Aspect”).

The objectives of the charity are the advancement and promotion of the arts, culture, heritage and science, in particular music and visual arts. In furtherance of these objectives, the charity arranges cultural and educational activities which are accessible to the public, in particular classical concerts, educational talks and meetings with musicians and artists.

All funds held by the charity at the reporting date are unrestricted and may be spent at the absolute discretion of the trustees in furtherance of its objectives. There have been no changes to this policy during the year.

The trustees have paid due regard to guidance issued by the Charity Commission for England and Wales in deciding what activities the charity should undertake with regard to public benefit.

Achievements and performance

In 2021, Aspect purchased a concert and education venue, as a suitable facility for the charity’s ongoing and growing activities within the cultural and educational space. The venue required total refurbishment in order to be effectively utilised in furtherance of Aspect’s charitable aims. This refurbishment work is ongoing, with completion expected towards the end of 2025. Once completed, the venue will be used extensively to host concerts, and to provide music practice spaces and educational facilities to local musicians and community groups.

In addition to supervising the ongoing works on the new building, Aspect has also continued its cultural and educational activities in the year, including the hosting of a classical concert in June 2023 at a third party venue.

The charity has not performed any fundraising activities during the year.

Financial review

For the year ended 31 December 2023, Aspect received donations totalling £300,000 together with Gift Aid recoveries relating to prior year donations of £135,303. The charity ended the year with a cash at bank and in hand balance of £213,849 and liabilities due within one year of £60,282. There is a liability due after one year of £18,425,763, being amounts due to Mr A Knaster. Mr A Knaster is a related party to the charity by virtue of being the spouse of a trustee, Mrs I Knaster.

Taking all of the above into account, the trustees consider that the charity's financial position at the year end is satisfactory.

Aspect does not have a policy of maintaining a set level of reserves because it has a strong oversight of upcoming liabilities and is therefore comfortable of its ability to meet any such liabilities and charitable needs as these fall due.

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 such risks.

• 1 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Structure, governance and management

Aspect operates as a charitable company which is a registered, incorporated charity established in England and Wales. The company was established under a Memorandum of Association, establishing its objects and powers, and is governed under its Articles of Association, both together forming the charitable company's constitution. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.

As the incorporated form of a charitable trust (Aspect Foundation for Music and Arts), the charitable company formed its constitution based on the charitable trust's Deed of Trust dated 23 March 2011 (as amended 10 May 2011). The constitution, and formerly, the Deed of Trust, sets out the principal objectives and purposes of the charitable company which are exclusively charitable under the law of England and Wales. Specifically, the trustees must use the income and may use the capital of the charitable company in promoting its charitable objectives.

The constitution provides for a minimum of three trustees. Founder trustees, being a trustee appointed at the incorporation of the charitable company, are appointed for a five year term of office. All other trustees may be appointed for a two year term of office. Trustees may be appointed by a resolution of the serving trustees and may be removed by a resolution of all trustees other than the one to be removed.

Trustees are recruited from individuals who are known to be sympathetic to the aims and objectives of the charitable company. There has been no change of the trustees since the establishment of Aspect and the trustees are up to date on their obligations and responsibilities to the charity. As such, no formal trustee training is usually considered necessary, but this is kept under review by the trustees on an ongoing basis.

Trustees

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

S Johnston I Knaster F Friedman

No trustees received any remuneration from the charitable company during the year ended 31 December 2023.

Relationship with related parties

As previously mentioned, the charitable company is the incorporated form of Aspect Foundation for Music and Arts, a charitable trust which has common trustees with the charitable company. In 2022, the trust entity donated its net assets to the charitable company and is now dormant. It is expected that the trust will be liquidated in due course.

A long term, non-recourse, interest free loan was made to Aspect in 2021 by the spouse of Mrs I Knaster and is outstanding as at the balance sheet date.

Auditor

In accordance with the company's articles, a resolution proposing that Whitley Stimpson Limited be reappointed as auditor of the company will be put at a General Meeting.

• 2 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

I Knaster

Trustee

26 September 2024

• 3 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees, who are also the directors of The Aspect Foundation for Music and Arts for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

• 4 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE ASPECT FOUNDATION FOR MUSIC AND ARTS

Opinion

We have audited the financial statements of The Aspect Foundation for Music and Arts (the ‘charitable company’) for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 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

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, including the trustees report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

• 5 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE ASPECT FOUNDATION FOR MUSIC AND ARTS

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report which is included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to the financial reporting framework FRS102 SORP, Companies Act 2006, Charities Act 2011 and VAT legislation.

We assessed the risks of material misstatement in respect of fraud. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements. We made enquiries with management and those charged with governance and corroborated our enquiries through review of third party documentation and correspondence where appropriate.

We identified that the principal risks related to income recognition being materially misstated due to fraud. We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries and management estimates into our audit approach.

• 6 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE ASPECT FOUNDATION FOR MUSIC AND ARTS

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above and to identify and to address material misstatements in relation to fraud. The engagement team collectively had the appropriate competence and capabilities to identify and recognise noncompliance with laws and regulations and fraud and perform these procedures effectively.

Audit procedures performed included:

• Discussion amongst the audit team regarding the susceptibility of the client to fraud;

• Consideration of the risk of fraud when documenting and reviewing internal controls and procedures;

• Enquiring of management how they assess the risk of fraud, and identify and respond to the risks of fraud;

• Enquiring of management whether they have any knowledge of actual or suspected frauds or noncompliance with laws and regulations;

• Review of how those charged with governance exercise oversight of management's process for identifying and responding to the risk of fraud;

• Substantive testing of income, including review and testing of donations received;

• Review of journals for unusual items;

• Review of indicators of impairment relating to property;

• Review of VAT return entries and perform analytical procedures on input VAT recovery;

• Substantive testing on fixed assets;

• Review of bank reconciliations and the statement of cash flows for evidence of window dressing;

• Substantive testing of expenditure, including review and testing of repairs, light and heat, insurance and legal costs; and

• Review of trade creditors and loans due after more than one year to confirm existence and appropriate presentation within the financial statements.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to charitable company's trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to charitable company's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Date26 September 2024

Whitley Stimpson Limited

Chartered Accountants Statutory Auditor Penrose House 67 Hightown Road Banbury Oxfordshire OX16 9BE

Whitley Stimpson Limited is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

• 7 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

		Unrestricted	Unrestricted
		funds	funds
		2023	2022
	Notes	£	£
Income and endowments from:
Donations and legacies	3	435,303	541,169
Charitable activities	4	717	-
Investments	5	4,064	-
Other income	6	-	329,415
Total income		440,084	870,584
Expenditure on:
Charitable activities
Governance costs	7	-	11,123
Concert expenditure	7	4,397	-
Property costs	7	77,074	42,258
Total charitable expenditure		81,471	53,381
Total expenditure		81,471	53,381
Net income and movement in funds		358,613	817,203
Reconciliation of funds:
Fund balances at 1 January 2023		817,203	-
Fund balances at 31 December 2023		1,175,816	817,203

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

• 8 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

BALANCE SHEET AS AT 31 DECEMBER 2023

Notes Fixed assets Tangible assets 13 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Net assets Income funds Unrestricted funds	2023 £ £ 19,430,136 17,876 213,849 231,725 (60,282) 171,443 19,601,579 (18,425,763) 1,175,816 1,175,816 1,175,816	2022 £ £ 19,181,998 31,723 99,684 131,407 (70,439) 60,968 19,242,966 (18,425,763) 817,203 817,203 817,203

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023, although an audit has been carried out under section 144 of the Charities Act 2011.

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 under the requirements of the Companies Act 2006, for the year 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 26 September 2024

I Knaster Trustee

Company registration number 13632478

• 9 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

			2023		2022
	Notes	£	£	£	£
Cash flows from operating activities
Cash generated from operations	21		358,239		281,308
Investing activities
Purchase of tangible fixed assets		(248,138)		(181,624)
Investment income received		4,064		-
Net cash used in investing activities			(244,074)		(181,624)
Net cash used in financing activities			-		-
Net increase in cash and cash equivalents			114,165		99,684
Cash and cash equivalents at beginning of year			99,684		-
Cash and cash equivalents at end of year			213,849		99,684

• 10 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

Charity information

The Aspect Foundation for Music and Arts is a private company limited by guarantee incorporated in England and Wales. The registered office is 25 Park Lane, London, W1K 1RA.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charitable company's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company 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.

As the basis for the trustees determining this, the trustees have considered the liabilities of the charitable company and the future funding requirements. The charitable company has a long-term liability at the year end of £18,425,763, being a loan due to Mr A Knaster. Within the terms of the agreement for this loan, Mr A Knaster holds no rights to recall the loan before its repayment date. The current funding for the charitable company is provided in the form of donations from Mrs I Knaster, a trustee of the charitable company, and Mr A Knaster, the spouse of a trustee. The trustees have obtained confirmation that Mr and Mrs Knaster will continue to fund the charitable company in the 12 months from approving the financial statements, allowing the charitable company to continue to further its objectives.

1.3 Charitable funds

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

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charitable company 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 charitable company 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 it being claimed from the relevant tax authorities.

Charitable income is raised through concerts, one being held in the year. The income is recognised on completion of the concert, and consists of the total ticket sales.

• 11 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

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.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Freehold land and buildings under the course of construction are not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 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.

1.9 Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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 using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

• 12 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Public benefit entity concessionary loans received are initially recognised at the transaction price. Subsequently, the carrying amount of concessionary loans is adjusted to reflect any accrued interest payable.

Derecognition of financial liabilities

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

2 Critical accounting estimates and judgements

In the application of the charitable company’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.

The charitable company's key accounting estimates include the measurement of impairment on freehold land and buildings and the useful economic life of the charitable company's fixed assets.

In estimating the useful economic life of the charitable company's fixed assets, the trustee's have considered the use for each separate category of asset. In determining this, the trustee's have reviewed the actual use expected for each asset, together with reviewing this in line with typical useful lives of each category.

3 Income from donations and legacies

	Unrestricted	Unrestricted
	funds	funds
	2023	2022
	£	£
Donations and gifts	300,000	541,169
Gift aid from previous year donations	135,303	-
	435,303	541,169

• 13 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

4	Income from charitable activities
		Unrestricted	Unrestricted
		funds	funds
		2023	2022
		£	£
	Events income
	Sale of tickets	717	-
5	Income from investments
		Unrestricted	Unrestricted
		funds	funds
		2023	2022
		£	£
	Interest receivable	4,064	-
6	Other income
		**Total **	Unrestricted
			funds
		2023	2022
		£	£
	Net gain on transfer of assets	-	329,415

• 14 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

7 Expenditure on charitable activities

Concert expenditure Property costs 2023 2023 £ £ Direct costs Property repairs and maintenance - 1,989 Legal and professional fees - 20,173 Light and heat - 3,169 Insurance - 28,747 Rates - 136 Event costs 1,993 - 1,993 54,214 Share of support and governance costs (see note 8) Support costs 1,100 - Governance costs 1,304 22,860 4,397 77,074 Analysis by fund Unrestricted funds 4,397 77,074 8 Support costs allocated to activities Administrative support Governance costs Analysed between: Governance costs Concert expenditure Property costs Governance costs comprise: Audit fees Accountancy	Total Governance costs 2023 2022 £ £ 1,989 - 20,173 - 3,169 - 28,747 - 136 - 1,993 - 56,207 - 1,100 - 24,164 11,123 81,471 11,123 81,471 11,123	Property costs 2022 £ 5,224 19,708 3,467 13,581 278 - 42,258 - - 42,258 42,258 2023 £ 1,100 24,164 25,264 - 2,404 22,860 25,264 2023 £ 13,000 11,164 24,164	Total 2022 £ 5,224 19,708 3,467 13,581 278 -
			42,258 - 11,123
			53,381
			53,381
			2022 £ - 11,123
			11,123
			11,123 - -
			11,123
			2022 £ 10,000 1,123
			11,123

• 15 -

THE ASPECT FOUNDATION FOR MUSIC AND ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

9	Net movement in funds	2023	2022
		£	£
	The net movement in funds is stated after charging/(crediting):
	Fees payable to the charity's auditor:
	- for the audit of the charity's financial statements	13,000	10,000
	- for other financial services	11,164	1,123
	Loss/(profit) on transfer of tangible fixed assets	-	(329,415)

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year (2022 - £nil).

11 Employees

The charitable company had 1 employee during the year (2022 - 0).

There were no employees (2022 - 0) whose annual remuneration was more than £60,000.

12 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

13 Tangible fixed assets

Cost At 1 January 2023 Additions At 31 December 2023 Carrying amount At 31 December 2023 At 31 December 2022 14 Debtors Amounts falling due within one year: Other debtors Prepayments and accrued income	Assets under construction £ 19,181,998 248,138 19,430,136 19,430,136 19,181,998 2023 2022 £ £ 3,633 18,775 14,243 12,948 17,876 31,723

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THE ASPECT FOUNDATION FOR MUSIC AND ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

15 Loans and overdrafts

Loans from related parties Payable after one year	2023 £ 18,425,763 18,425,763	2022 £ 18,425,763
		18,425,763

Loans from related parties include amounts received under a public benefit concessionary loan, being £18,425,763. This was a loan provided in 2021 from an individual connected to the charitable company, Mr A Knaster, to a charitable trust, Aspect Foundation for Music and Arts. As detailed further within note 19, this loan was transferred to The Aspect Foundation for Music and Arts in 2022 as part of a wider transfer of trade and assets.

Under the terms of the loan, no interest is charged on the loan by Mr A Knaster. The loan is also not repayable on demand and instead, is repayable three months after completion of a sale of property recorded in the charitable company's tangible fixed assets.

No security is pledged to Mr A Knaster for the purpose of this loan.

16 Creditors: amounts falling due after more than one year

Note Borrowings 15 Creditors: amounts falling due within one year Trade creditors Accruals and deferred income	2023 £ 18,425,763 2023 £ 47,182 13,100 60,282	2022 £ 18,425,763
		2022 £ 59,389 11,050
		70,439

17 Creditors: amounts falling due within one year

18 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

	At	1	January	Incoming	Resources	At 31
			2023	resources	expended	December
						2023
			£	£	£	£
General funds			817,203	440,084	(81,471)	1,175,816

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THE ASPECT FOUNDATION FOR MUSIC AND ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

18	Unrestricted funds				(Continued)
	Previous period:	At 1 January	Incoming	Resources	At 31
		2022	resources	expended	December
					2022
		£	£	£	£
	General funds	-	870,584	(53,381)	817,203

19 Related party transactions

Transactions with related parties

During the year the charitable company entered into the following transactions with related parties:

Mrs I Knaster Mr A Knaster Aspect Foundation for Music and Arts	Donations received Payment of expenses on behalf of the charitable company 2023 2022 2023 2022 £ £ £ £ - 41,214 - - 300,000 500,000 - - - - - 582,458 300,000 541,214 - 582,458	Donations received Payment of expenses on behalf of the charitable company 2023 2022 2023 2022 £ £ £ £ - 41,214 - - 300,000 500,000 - - - - - 582,458 300,000 541,214 - 582,458
		582,458

During the year ended 31 December 2023, an amount of £nil (2022 - £1,833) due to Mrs I Knaster was waived, with this being in relation to expenses settled on behalf of the charitable company.

During the prior period, being the period ended 31 December 2022, the trade and assets of a connected charitable trust, Aspect Foundation for Music and Arts, were transferred in to the charitable company. This transfer included freehold property of £18,465,459, a cash balance of £9,090 and the benefit of a loan made to The Aspect Foundation for Music and Arts of £291,552. Also transferred was a loan due to Mr A Knaster of £18,425,763 as detailed in note 15. No comparable transfers were made during the current financial period, being the year ended 31 December 2023.

No conditions were attached to any of the transferred items detailed above.

The following amounts were outstanding at the reporting end date:

	Amounts owed to related	Amounts owed to related
	parties
	2023	2022
	£	£
Mr A Knaster	18,425,763	18,425,763

The amounts detailed above are due to Mr A Knaster (husband of a trustee).

No conditions are attached to the loan outstanding.

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THE ASPECT FOUNDATION FOR MUSIC AND ARTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

20 Analysis of changes in net (debt)/funds At 1 January 2023 £ Cash at bank and in hand 99,684 Loans falling due after more than one year (18,425,763) (18,326,079) 21 Cash generated from operations Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Gain on acquisition of tangible fixed assets Non-cash transactions with related party Movements in working capital: Decrease/(increase) in debtors (Decrease)/increase in creditors Cash generated from operations

Cash flows At 31 December 2023 £ £ 114,165 213,849 - (18,425,763) 114,165 (18,211,914) 2023 2022 £ £ 358,613 817,203 (4,064) - - (329,415) (245,196) 13,847 (31,723) (10,157) 70,439 358,239 281,308

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