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 2024
THE ASPECT FOUNDATION FOR MUSIC AND ARTS LEGAL AND ADMINISTRATIVE INFORMATION Trustees S JDhnslon l Knasler F Friedman Charlty number 1197785 Company number 13632478 Reglstered offlce 25 Park Lane London W1K1RA Auditor Vvhitley Stimpson Limited Penrose House 87 Hightown Road Banbury Oxfordshire OX169BE
THE ASPECT FOUNDATION FOR MUSIC AND ARTS CONTENTS Page Trustees, report Stslemenl of trustees, responsibilities Independent auditorfs report Stslemenl of financial activities Balance sheet Statement of cash flows Notes lo the financial statements
THE ASPECT FOUNDATION FOR MUSIC AND ARTS TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024 The trustees present their annual report and financial statements for the year ended 31 December 2024. 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 goveming document, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191. The finanryal stslemenls have been prepared having taken advantage of the small mpanIeS exemption in the Companies Act 2006. Objectlves and actlvltles 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 l°Aspecl°l. The objectives of the charity are the advancement and promotion of the arts, culture, heritage and science, in particular music and visual arts. In furtheran 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 artists. All funds held by the charity al the reporting dale are unreslri¢led and may be spent al the absolute discretion of the trustees in furtherance of its objectives. There have been no changes lo this policy during the year. The trustees have paid dLJe regard to guidance iSSLJed by the Charity Commission for England and INales in deciding what activities the charity should undertake with regard to public benefit. Achlevemènts and porfomianc In 2021, Aspect purchased a concert and education venue, as a suitable facility for the charity's ongoing and growing activities wrthin the ¢ullur818nd educational space. The venue required total refurbishment in order lo be effectively ulilised in furtherance of Aspect's charitable aims. This refurbishment work is ongoing, with completion expected in 2027. Once completed. the venue wll be used extensively lo host concerts, and lo provide music practice spaces and educational fa¢ilrties lo local musicians and community groups. In addition to supervising the ongoing works on the new building, Aspect has also continued ils cultural and educational activities in the year, including the hosting of a classical concert in April 2024 at a third party venue. The charity has not perfomied any fundraising activf(ies during the year. Financial review For the year ended 31 Dember 2024. Aspect received donations lolalling £1,375,000. The charity ended the year with a cash at bank and in hand balan of £400.331 and liabilities due within one year of £51,586. There is a liability due after one year of £18,425,763, being amounts due lo Mr A Knaster. Mr A Knasler is a related paty lo the charity by virtue of being the SPOLJse of a trustee, Mrs l 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 8 strong oversight of upcoming liabilities and is therefore comfortable of ils ability lo meet any such liabilities and charitable needs as these fall due. The Iruslees 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.
THE ASPECT FOUNDATION FOR MUSIC AND ARTS TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 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 ils objects and powers, and is govemed under its Articles of Assoaation. both together fomiing the charitable company's constitution. In the event of the Company being WOLJnd up, members are required to contribute an amount not exceeding £1. As the Incorporated form of a charitable trust (Aspect Foundation for Music and Artsl, the charitable company formed ils constitution based on the charitable trust's Deed of Trust dated 23 March 2011 las amended 10 May 20111. The conslitulion, and fotmedy, 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 Wdles. Specifically, the trustees must use the income and may use the capital of the charitable company in promoting ils 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. Al other trustees may be appointed for a year term of offi. 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 a recruited from individuals who are known to be sympathetic lo the aims and objectives of the charitable company. There has been no change of the trustees since the eslablishmenl of Aspect and the Iruslees are up lo date on their obligations and responsibilities to the charity. As such, no fomial trustee training is usually considered necessary, but this is kept under review by the Iruslees on an ongoing basis. Trustees The Iruslees, who are also the directors for the purpose of company law, and who seNed during the year and up to the dale of signature of the financial stslemenls were.. S Johnston l Knasler F Friedman No trustees received any remuneration from the charitable company during the year ended 31 December 2024. Relationship with rèlated partias 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 ils net assets to the charitable company and is now dormant. 11 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 l Knaster and is outstanding as al the balance sheet dale. Donations have been made lo the charity by the spouse of Mrs l Knaster amounting to £1,325,000 in the year ended 31 December 202412023 - £300.0001. Auditor In accordance wth the company's artides, a resolution proposing that leY Stimpson Limited be reappointed as auditor of the Company will be pul at a General Meeting.
THE ASPECT FOUNDATION FOR MUSIC AND ARTS TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Disclosure of infomiation to auditor Each of the trustees has confirmed that there is no information of which they are aware which is relevant lo the audit. bul of which the audV(or is unaware. They have further confirmed that they have taken appropriate steps lo 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. l Knasler Tru$taa 10 July 2025
THE ASPECT FOUNDATION FOR MUSIC AND ARTS STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2024 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 Iunited Kingdom Generally Accepted Accounting Practice). Company Law requires the Iruslees lo prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the charitsble company and of the incoming resources and application of resources, including the income and expenditLJre, 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 eslimales that are reasonable and prudent., state whether applicable UK Accounting Standards have been followed, subject to any material departures disdosed and explained in the financial statements,. and prepare the financial statements on the going concern basis unless il is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping adequate accounting records that disdose with reasonable accuracy al any lime the financial position of the charitsble company and enable them lo ensure that the financial slalements 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.
THE ASPECT FOUNDATION FOR MUSIC AND ARTS INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THEASPECT FOUNDATION FOR MUSIC ANDARTS Opinion We have audited the financial stslemenls of The Aspect Foundats'on for Music and Arts Ilhe 'charilable company'l for the year ended 31 December 2024 which comprise the statement of financial aclivilies, the balance sheet. the statement of cash flows and notes to the financial ststements, induding 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 Iland (United Kingdom Generally Accepted Accounting Practi1. In our opinion, the financial slatemenls.. give 8 true and fair view of the slate of thè charitable company's affairs as al 31 December 2024 and of its incoming resources and application of resources for the year then ended", have been properly prepared in accordance with United Kingdom Generally Aepted A¢¢ounling Pra¢ty'¢e,' and have bèen prepared in accordance with the requirements of the Charities Act 2011 Basis for opinion We conducted our audit in accordance with International Stsndards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Audilorts SponSIbl1itAes for the audit of the financial statemenls section of our report. We are independent of the charitable company in accordance with Ihe ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical standard, and we have fijlfilled our other ethical responsibilities in accordance wth these requirements. We believe that the audit evidence we have obtsined is sufticienl and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial ststemenls, we have concluded that the Iruslees, 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 Sponsibl11t1es of the ttuslees wth respect lo going concern are described in the relevant sections of this report. Other inforniation The other infomiation comprises the information included in the annual report, including the Iruslees report. other than the financial slalements and our auditor's report Ihereon. The Iruslees 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 fomi of assurance conclusion thereon. Our responsibility is to read the other information and, In doing so, consider whether the other Information is materially inconsistent wlh the financial slalemenls or our knowledge obtained in the course of the audit, or otherwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misslalemenls, we are required lo detemiine whether this gives rise lo a material misstslemenl in the financial statements themselves. If. based on the work we have performed, we conclude that there is a material misstslement of this other information, we are required lo report that fact. We have nothing to report in this regard.
THE ASPECT FOUNDATION FOR MUSIC AND ARTS INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THEASPECT FOUNDATION FOR MUSIC ANDARTS Matters on which we are required to report by exception In the light of the knowledge and understsnding of the company and ils environment obtained in the course of the audit, we have not identified material misslalements in the directors, report which is included within the Iruslees, report. We have nothing lo report in respect of the following matters in relation lo which the Charities (Accounts and Reports) Regulations 2008 require us lo report lo 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 Iruslees, remuneration specified bylaw are not made, or we have not received all the information and explanations we require for our audit., or the Iruslees were not entitled lo prepare the financial slalements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the trustees, report and from the requirement lo prepare a strategic report. Responsibilities of trustees As explained more fully in the statement of Iruslees. 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 slalements and for being satisfied that they give a true and fair view, and for such intemal 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 lo continue as a going concern, disclosing, as applicable, mallers related lo going concem and using the going concern basis of accounting unless the trustees either Intend lo liquidate the chantsble company or to cease operations, or have no realistic allernalive bul lo do 50. Auditorfs 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 accordan wth the Act and relevant regulations made or having effect Ihereunder. Our objectives are lo obtain reasonable assurance about whether the financial stslemenls as a whol& are free from material misslalement, 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 bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo Influence the economic decisions of users taken on the basis of these financial slalemenls. Irregularities, induding fraud, are instances of non-compliance wV(h laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delecl material misstslements in respect of irregularities, including fraud. The extent lo which our procedures are capable of delecling irregularrties. 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 lo the financial reporting framework FRS102 SORP, Companies Ad 2006, Charities Act 2011 and VAT legislation. We assessed the risks of material misstslemenl in respect of fraud. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial slalements. We made enquiries with management and those charged ¥Arith governance and corroborated our enquiries through review of third paty documentation and correspondence where appropriate. We identified that the principal risks related to income recognition being materially misstated due lo fraud. We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries and management eslimales into our audit approach.
THE ASPECT FOUNDATION FOR MUSIC AND ARTS INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THEASPECT FOUNDATION FOR MUSIC ANDARTS 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 lo identify and lo address material misslalemenls in relation lo fraud. The engagement team collectively had the appropriate competence capabilities lo identify and recognise non- compliance 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 dient to fraud., Consideration of the risk of fraud when documenting and reviewing internal controls and procedures., EnqLJiring of management how they assess the risk of fraud, and identify and respond to the risks of fraud., EnqLJiring of management whether they have any knowledge of actual or suspected frauds or non- compliance with laws and regulations.. Review of how those charged with governance exercise oversight of management's prOsS for identtying and responding to the risk of fraud., Subslanlive lesling of income, including review and lesling of donations received,. Review of joumals for unusual items, Review of indicators of impairment relating lo propety., Review of VAT return entries and perform analytical procedures on input VAT recovery., Substantive testing on fixed assets, induding physical verification., Review of bank reconciliations and the statement of cash flows for evidence of window dressing,. Substantive testing of expenditure, and., Review of trade creditors and loans due after more than one year to confirm existen and appropriate presentation wthin the financial slatemenls. There are inherent limitations in the audit procedures described above. We are less likely lo become aware of instsnces of non-compliance wth laws and regulations that are not closely related lo events and transactions reflected in the financial slalements. Also, the risk of not detecting a material misstalemenl 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 websrf(e al.. https'.11 www.frc.org.uklaudilorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely lo charitable company's trustees. as a body, in accordance with part 4 of the Charities (Accounts and Reportsl Regulations 2008. Our audit work has been undertaken so that we might state lo charitable company's trustees those matters we are required to State lo them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo 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. Date10 July 2025 Whltley Stlmpson Llmlted Chartered Accountants Stslulory Auditor Penrose House 67 Highlown Road Banbury Oxfordshire OX18 gBE Vvhilley Slimpson Limited is eligible for appointrnenl as auditor of the charitable company by virtue of ils eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
THE ASPECT FOUNDATION FOR MUSIC AND ARTS STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2024 Unrestrlcted Unrestrlcted funds funds 2024 2023 Notes Income from: Donations and legacies Charitable activities Investments 1,375,000 1,100 4,293 435,303 717 4,064 Total income 1,380,393 440,084 Expenditure on- Charitablè activities Concert expenditure Property eosls 7,112 62,333 4,397 77,074 Total charitsble expenditure 69,445 81,471 Total expenditure 69,445 81,471 Net income and movement in funds 1,310,948 358,613 Reconciliation of funds: Fund balances al 1 January 2024 1,175,816 817,203 Fund balances at 31 December 2024 2,488,764 1,175,816 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from Continuing activities.
THE ASPECT FOUNDATION FOR MUSIC AND ARTS BALANCE SHEET AS AT 31 DECEMBER 2024 2024 2023 Notes Fixed assets Tangible assets 12 20,480,362 19,430,136 Current assets Debtors Cash at bank and in hand 13 83,420 400,331 17,876 213,849 483,751 231,725 Creditors: amounts falllng due wlthln one year 15 {51,5861 160,2821 Net current assets 432,165 171,443 Total assets less current liabilities 20,912,527 19,601,579 Creditors- amounts falling due after more than one year 16 118,425,763) 118,425,763) Net assets 2,486,764 1,175,816 Income funds Unrestricted funds 2,486,764 1,175,816 2,486,764 1,175,816 The company is enliued to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2024, aythough an audit has been carried out under section 144 of thè Charities Act 2011. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect lo accounting records and the preparation of financial ststemenls. The members have not required the company lo obtain an audit of f(s 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 stslemenls were approved by the Trustees on 10 July 2025 l Knasler Trustee Company r&glstratlon number 13632478
THE ASPECT FOUNDATION FOR MUSIC AND ARTS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Notes Cash flovts from operating activities Cash generated from operations 21 1,232,415 358,239 Investlng actlvltl&s Purchase of tangible fixed assets Investment income received 11,050,226) 4,293 1248,1381 4,064 Net cash used in investing activities 11,045,933) 1244,0741 Net cash used in financing activities Not Increase In cash and ¢a$h equlvalgnts 186,482 114.165 Cash and cash equivalents at beginning of year 213,849 99,684 Cash and cash equlvalents at end of year 400,331 213,849 10-
THE ASPECT FOUNDATION FOR MUSIC AND ARTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies Charity inforniation 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, W1 K 1 RA. 1.1 Accounting convention The financial slalements have been prepared in ac¢ordance 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. I'FRS 102.1 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 IFRS 1021" leffective 1 January 20191. The charitsble company Is a Public Benefit Enlily as defined by FRS 102. The financial slaternenls are prepared in sterfing, which is the functional currency of the charitable company. Monetary amounts in these financial stslemenls are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are sel out below. 1.2 Going concern Al the lime of approving the financial slalemenls, the Iruslees have a reasonable expectation that the charitsble company has adequate resources lo continue in operational existence for the foreseeable future. Thus the trustees continue lo 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 al the year end of £18,425,763, being a loan due lo Mr A Knasler. Within the terms of the agreement for this loan, Mr A Knaslei holds no rights to recall the loan before 115 repayment dale. The current funding for the charitable company is provided in the fom of donations from Mrs l Knasler, a trustee of the charitable company, and Mr A Knaster, the spouse of a Iruslee. The Iruslees have obtsined confirmation that Mr and Mrs Knasler will continue lo fund the charitable Company in the 12 months from approving the financial slalements. allowing the charitable company to continue to further its objectives. 1.3 Charitable funds Unrestricted funds are available for use al the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject lo 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 slalements. 1.4 Income Income is renised when the charitsble company is legally entitled to it after any perfomiance Conditions have been met, the amounts can be measured reliably. and il is probable that income will be received. Cash donations are recogni5ed on receipt. Other donations are recognised once the eharilable company has been notified of the donation, unless performance conditions require deferral of the amount. Income lax recoverable in relation to donations received under Grft Aid or deeds of Covenant is recognised al the lime of il being claimed from the relevant tsx authorities. Charitable income is raised through Conrts, One being held in the year. The income is recognised on completion of the concert, and consists of the lolal ticket sales.
THE ASPECT FOUNDATION FOR MUSIC AND ARTS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2024 Accountlng pollcles Icontlnuedl 1.5 Expendlture Expenditure is recognised once there is a legal or Conslruclive obligation lo transfer ewnomic benefit to a third paty, il 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 lolal of direct costs and shared Costs, including support Costs involved in undertaking each activity. Direct costs attributable lo a single activity are allocated directly lo that activity. Shared costs which contribute to more than one activity and support ¢osls which are not allribulable lo 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, nel 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 detemined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the slalement of financial activities. 1.7 Impairment of fixed assats Al each reporting end dale, the charitable company reviews the carrying amounts of ils tangible assets to determine whether there is any indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of the asset is eslimaled in order lo determine the extent of the impaiment loss lif anyi. 1.8 Cash and cash equivalents Cash and cash equivalents indude cash in hand, deposits held al call wth banks, other short-lerm liquid investments with original malurilies of three months or less. 1.9 Financial instruments The charitable company has elected lo apply the provisions of Section 11 '8asic Financial Inslrumenls, and Section 12 '0ther Financial Instruments l$sues' of FRS 102 10 ils finanryal inslrumenl$. Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party lo the conlraclual provisions of the Instrument. Financial assets and liabilities are offset, wrth the net amounts presented In the financial statements, when there is a legally enforceable right to sel off the recognised amounts and there is an intention to sellle on a nel basis or lo realise the asset and setue the liability simultaneously. Basie financial assets Basic fi'nancial assets. which include debtors and cash and bank balances, are initially measured al transaction price including transaction costs and are subsequently carried at amot*'sed 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 al 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 2024 Accountlng pollcles Icontlnuedl 8aslc flnanclal Ilabllltles 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 al amortised cost, using the effective interest rale method. Public bènefit entity concessionary loans received are inikn.ally recognised al the IT8nsaclion price. Subsèquently, the cairying amount of concessionary loans is adjusted lo 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. Crltlcal accountlng estlmates and Judgements In the application of the charitsble 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 eslimales 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 charitsble company's key accounting estimates include the measurement of impairment on land and buildings and the useftjl economic life of the charitable company's fixed assets. As at 31 December 2024, the land and buildings owned by the charity, together with the capital costs added during ownership, have been recognised as an asset under construction. No depreciation is currently being charged on the property. The trustees have determined that this is the most appropriate treatment, given that the project is not yet complete. The property is recognised al accumulated cost to dale. As al 31 December 2024, no impairment charge has been pul through on the value of the propety. Taken into account the position of the project, the future developments, and the expected outcomes, the trustees do not consider there to be any indications of impairment. The value of the asset under construction at 31 Dember 2024 is £20,480,36212023- £19,430,136). In¢omg from donatlons and 19gac19$ Unrestrlctod Unrestrlcted funds funds 2024 2023 Donations and grfts Gift aid from previous year donations 1,375,000 300,000 135,303 1,375,000 435,303 13-
THE ASPECT FOUNDATION FOR MUSIC AND ARTS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2024 Income from charitable activities Unrestrlcted Unrestrlcted funds funds 2024 2023 Events income Sale of lickels 1,100 717 Income from investments Unrestricted Unrestricted funds funds 2024 2023 Interest receivable 4,293 4,064 Expenditure on charitable activities Concert expenditure 2024 Property costs 2024 Total Concert expenditure 2023 Property costs 2023 Total 2024 2023 Direct costs Propety repairs and maintenance Legal and professional fees Light and heal Insurance Rates Event costs 1,198 1,196 1,989 1,989 14,003 2,890 29,885 185 14,003 2.890 29,885 185 1,391 20,173 3,169 28,747 136 20,173 3.169 28,747 138 1,993 1,391 1,993 1.391 48,159 49.550 1.993 54,214 56,207 sha of support and governance costs (see note 71 Support costs 4,118 125 Governance costs 1,603 14,049 4,243 15,652 1,100 1,304 1,100 24,164 22,860 7,112 62,333 69,445 4,397 77,074 81,471 Analysls by fund Unrestricted funds 7,112 62,333 69,445 4,397 77,074 81,471 14-
THE ASPECT FOUNDATION FOR MUSIC AND ARTS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2024 Support costs allocated to activities 2024 2023 Administrative support Bank charges Governance costs 4,103 140 15,652 1,100 24,164 19,895 25,264 Analysed between- Concert expenditure Propety costs 5,721 14,174 2,404 22,860 19,895 25,264 2024 2023 Govèrnance costs comprisè.. Audit fees Accountancy 10,500 5,152 13,000 11,164 15,652 24,164 Net movement In funds 2024 2023 The nel movement in funds is slated after chargingllcredilingl.. Fees payable lo the charity's auditor.. for the audit of the charity's financial slalements for other financial services 10,500 5,152 13,000 11,164 Trustees None of the trustees lor any persons connected wth them) received any remuneration or benefits from the charitable company during the year12023- £nill. 10 Employees The charitable company had 1 employee during the year {2023- 11. There were no employees whose annual remuneration was more than £60,000. 11 Taxation The charity is exempt from taxation on its activities because all ils income is applied for charitable purposes. 15-
THE ASPECT FOUNDATION FOR MUSIC AND ARTS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2024 12 Tangible fixed assets Assets under construction Cost At 1 January 2024 Additions 19,430,136 1,050,226 At 31 December 2024 20,480,362 Carrying amount Al 31 December 2024 20,480,362 Al 31 December 2023 19,430,136 13 Debtors 2024 2023 Amounts falling due within one year: Trade debtors Other debtors Prepayments and a¢¢rued income 160 69,486 13,774 3,633 14,243 83,420 17,876 14 Loans and overdrafts 2024 2023 Loans from related parties 18,425,763 18,425,763 Payable after one year 18,425,763 18,425,763 Loans from related parties include arnounts received under a public benefit concessionary loan, being £18,425,763. This was a loan provided in 2021 from an individual connected lo the charitable company, Mr A Knaster, lo 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 lemis of the loan, no interest is charged on the loan by MrA 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 charitsble company's tangible fixed assets. No security is pledged lo Mr A Knasler for the purpose of this loan. 16-
THE ASPECT FOUNDATION FOR MUSIC AND ARTS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2024 15 Creditors- amounts falling due within one year 2024 2023 Trade creditors Accruals and deferred income 38,074 13,512 47,182 13,100 51,586 60,282 16 Creditors- amounts falling due after rnore than one year 2024 2023 Note Borrowings 14 18.425.763 18,425.763 17 Unrestricted funds The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject ID specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unreslricled funds by the trustees for specific purposes. At 1 January 2024 Incoming resources Resources expended At31 December 2024 General funds 1,175,816 1,380,393 169,4451 2,486,764 Prevlous year: At 1 January 2023 Incomlng resources Resou9$ expended At31 December 2023 General funds 817,203 440,084 181,4711 1,175,816 18 Capital commitments 2024 2023 Amounts contracted for but not provided in the financial stslemenls.. 2024 2023 Acquisition of propety. plant and equipment 1,242.067 The capital commitment is in relation lo a building contract for the propety. 17-
THE ASPECT FOUNDATION FOR MUSIC AND ARTS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2024 19 Events after the reporting date On 24 April 2025 the charity entered a contract wth builders for £1,068,444 of capfcal works lo be completed on the propety. 20 Related party transactions Transactions with related parties During the year the charitable company entered into the followng transactions with related parties.. Donations recelved 2024 2023 MrA Knasler 1,375,000 300,000 1,375,000 300,000 The followng amounts were outstanding at the reporting end dale.. Amounts owed to related parties 2024 2023 MrA Knasler 18,425,763 18,425,763 The amounts detailed above are due lo Mr A Knasler {husband of a Irusteel. No condf(ions are attached lo the loan outstanding. 21 Cash generated from operations 2024 2023 Surplus for the year 1,310,948 358,613 Adjustments for.. Investment income recognised in statement of financial aclivf(ies 14,2931 14,0641 Movements in working capital". {Increaselldecrease in debtors IDecreasel in ereditors 165,5441 18,6961 13,847 110,1571 Cash generated from operations 1,232,415 358,239 18-
THE ASPECT FOUNDATION FOR MUSIC AND ARTS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2024 22 Analysis of changes in net Idebtllfunds At l January 2024 Cash flow5 At 31 D8comb8r 2024 Cash al bank and in hand 213,849 186,482 400,331 Loans falling due after more than one year 118,425,763) 118,425,763) 118,211,914) 186,482 118,025,432) 19-