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2021-08-31-accounts

Company Registration No. 00294310 (England and Wales) Registered Charity No. 234239 (England and Wales) Registered Charity Number SC040142 (Scotland)

The Embroiderers’ Guild

Report and Financial Statements

For the year ended 31 August 2021

The Embroiderers’ Guild Report of the Trustees For the year ended 31 August 2021

Report of the Board of Trustees for the year ended 31st August 2021.

The Board of Trustees present their report and financial statements of the Embroiderers’ Guild (EG) for the year ended 31st August 2021. The activities and financial statement incorporate the results of the regions and branches of the Guild.

This document conforms to the Charities SORP (FRS 102) for the Trustees’ Report disclosure requirements.

Objectives and Activities

Vision

Our ‘Vision’ is that… the Guild is recognised and valued as a central educational and inspirational resource – a hub for all who are attracted to or experienced in embroidery/stitch, textiles and related arts and crafts. It is seen as being supportive of all levels of ability whether for personal enjoyment through to an increasingly rewarding and enriching experience of personal accomplishment in the furtherance of historical skills, techniques, and artistic excellence.

Objectives

The principal objectives of the Charity as defined in the Articles of Association are to:

Activities for the Public Benefit

The pandemic created difficulties for many organisations in 2020/2021 and the Guild was no exception. During that time and as activities started to return to normal the Trustees have worked to deliver activities that meet the Guild’s objectives, and the summary below goes beyond the end of the financial year 20/21 to show the delivery of activities prepared within the financial year.

During a period of general uncertainty, the Trustees have focused on developing activities that are not dependent on face-to-face contact, will appeal to members and the wider public, and that will provide some contribution towards gaining financial stability for the Guild. These include….

  1. Planned and commenced virtual educational talks with a range of artists and makers

  2. a. Advertised on our website and through social media

  3. b. Online booking through Eventbrite minimised admin costs.

  4. Planned virtual Sit and stitch sessions for those unable to attend in person stitch groups.

  5. a. These enabled those who are geographically remote, with caring responsibilities or socially isolated due to health or disabilities to attend sessions delivered via Zoom.

  6. b. More are planned for the coming quarters.

  7. Explored relaunching the Guild’s virtual courses for beginners working with a former Guild Scholar.

  8. Supported graduates and scholars to exhibit at shows once the pandemic eased and in person shows returned.

  9. Created a collaborative stitched wall hanging entitled “Reasons to be Thankful” which gave thanks to NHS workers for the efforts during the pandemic.

  10. a. Prepared to display hangings at the Knitting and Stitching Show in October 2021

  11. b. Prepared eBook of the contributions to the hangings for members to virtually view the contributions.

  12. Exquisite Containers was the Members' Challenge for 2020. The title was inspired by three new and exciting donations to the Guild and resulted in many entries including some 3D pieces for the first time. Pieces were displayed at Knitting & Stitching Shows Alexandra Palace and Harrogate. The winners excelled in five categories which commemorated different aspects of embroidery and the names of deceased embroiderers, who have contributed greatly to embroidery teaching, with one overall winner.

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The Embroiderers’ Guild Report of the Trustees For the year ended 31 August 2021

  1. Continued publishing Embroidery Magazine, promoting textile artists around the world.

  2. a. Revamped website for Embroidery magazine enabling more people to find the magazine and subscribe to it.

  3. Provided digital subscriptions to Embroidery Magazine to enable readers around the world to access the publication easily, cost effectively and in a more climate friendly manner.

  4. a. By continuing to provide and promote digital subscriptions we have overcame issues with sending printed magazines overseas post Brexit when extra duty and VAT was applied to magazines in some markets.

  5. Digitised and launched the online archive of Embroideress and Embroidery magazine

  6. a. The archive covers magazines from 1922 to the current time.

  7. b. Hard copies of each magazine remain in the archives.

  8. Continued maintenance of the collection at Bucks County Museum.

  9. Continued running the Birds Exhibition at the Beryl Dean Gallery in Bucks County Museum (now called Discover Bucks).

  10. a. Produced an eBook on the Birds exhibition for members who couldn’t physically attend the exhibition.

  11. Created a new exhibition in the Beryl Dean Gallery – “Sew New” – which highlights new acquisitions to the collection.

  12. Created two new folios on the topic of Val Campbell Harding.

  13. Prepared inspiration packs of fabric, threads, and other haberdashery items from donated items for sale at shows.

  14. Produced display boards of examples stitched using inspiration packs.

  15. Prepared to exhibit elements of the collection at Knitting and Stitching shows in London and Harrogate in 2021.

Assessing Achievements

Public Benefit

Most activities we have undertaken (listed above) have been for the benefit of everyone who wants to engage with them, through exhibitions or virtual talks. Therefore, this fulfils the public benefit requirement and contributes to the objects and related aims of the charity.

Members, volunteers, and Trustees are mindful of the benefit to the public that embroidery brings and therefore conscious of it when planning events.

We have had regard to the Charity Commission’s guidance on public benefit when exercising any powers or duties to which the guidance is relevant.

Additional Information

During the 2020/21 financial year and subsequently the Guild has transitioned to being a volunteer run organisation. This has been achieved with significant effort from Trustees and volunteers.

During the financial years volunteering activity included….

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The Embroiderers’ Guild Report of the Trustees For the year ended 31 August 2021

Achievements and Performance

Main Achievements in relation to direct beneficiaries…

Main Achievements in relation to society as a whole

Fundraising

– 2020/2021 What happened

The Guild Trustees realised that with a significant reduction in membership renewals in September-November 2020 the primary source of income of the Guild was insufficient to cover the outgoing cost commitments. There was a significant risk that the Guild as a charity would have to close if urgent and significant action was not taken.

The CEO and Trustees, in place at that time, assessed the options and decided to try to put the Guild into a sustainable position as they were reluctant to close the Guild which had been running for over 125 years.

The outgoing cost commitments were reviewed, and the difficult decision was taken that the network of branch and regional groups would need to close. As the reserves of the Charity were held in the branch and region bank accounts the Trustees had no alternative but, in line with well recognized financial protocols, to freeze and call in these funds immediately when they announced the closure of the branches and regions.

Unfortunately, as became clear after the accounts were frozen, the branches and regions had not fully appreciated that their accounts were the reserves of the overall organisation and could be called in. In the past, the financial structure of the Guild was not clearly communicated to regions and branches by head office.

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The Embroiderers’ Guild Report of the Trustees For the year ended 31 August 2021

Current factors influencing the future of the Charity are:

Plans for Future Periods

The future direction of the charity is to…

Risks facing the Charity

The Guild maintains and regularly reviews a register of high-risk topics and factors that have the potential to undermine the viability of the charity and/or the wholly owned subsidiary – EG Enterprises Ltd. The board meets two to three times a month and this enables the Trustees to actively manage risks much more effectively than in the past.

– Risks facing the wholly owned subsidiary EG Enterprises Ltd

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The Embroiderers’ Guild Report of the Trustees For the year ended 31 August 2021

Financial Review

The main sources of income of the Guild are members’ subscriptions, donations, legacies, and profit on the sale of magazines from our trading company EG Enterprises Limited, (EGE). In addition, these accounts include income from branches and regions, until the accounts were called in as discussed above. During the current financial year 21/22 the Trustees sought new income sources and specifically online talks have been well received and proven a good source of revenue. This has built on one of the outcomes of the pandemic which is people getting used to using virtual platforms to communicate with others.

The Embroiderers’ Guild recorded a deficit of £217,261 (2020: deficit of £114,010).

The Guild deficit was primarily due to a decline in membership subscriptions in the year and the continuing impact of the pandemic. The Guild continues to be extremely grateful to its benefactors. The Trustees are committed to monitoring and exercising tight control over all costs. During 20/21 and in the current year 21/22 they have achieved a significant reduction in support costs, to achieve a target of breaking even in future financial years.

Branch and Regional funds

Once all branch and region expenses have been paid and grant specific restricted funds transferred back to the relevant group the net amount retained by the Guild will be £510,000.

Two branches are still to finalise the remaining funds that need to be transferred to the Guild as they did not use Unity Bank accounts. The Trustees are pursuing this within their remit.

Reserves Policy

The Charity holds both restricted and unrestricted funds. These funds relate to a wide range of Guild activities and exist to cover future expenditure on these charitable activities.

The Trustees have been unable to utilise the restricted fund “Teaching Support Nottingham” so far due to the limited purposes applied to the funds. After the year end, the Trustees have obtained permission from the Charity Commission to widen the purposes of this fund, so that the Charity can effectively use the funds whilst still recognising the intentions of the legator to further education on embroidery. The balance of this fund is currently £181,891.

The other restricted fund is for the upkeep of the Collection and has a balance of £57,794. This was augmented in the year by a legacy of £10,000.

The balance of unrestricted funds on 31[st] August 2021 was £218,109, including £25,389 held by branches (Note 18 of the accounts). Excluding fixed assets held for the charitable company’s own use, reserves amounted to £208,109.

Under its Articles of Association, the Charity has the power to make investments as the Trustees see fit, subject to the jurisdiction of the Charity Commissioners. The Guild realised its holdings with Cazenove Fund Management Limited during the year.

Concerns about the Charity as a going concern

The Guild are projecting a further loss in 21/22, partially due to redundancy payments to staff and moving to a volunteer run organisation.

Due to significant effort on behalf of the Trustees the Guild’s operating costs have been significantly reduced.

Events are starting to provide a consistent income that has offset some of the reduction in income from membership fees.

Providing there are sufficient volunteers to organise events as well as manage other activities of the Guild to keep current membership levels the Guild should break even in 22/23.

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The Embroiderers’ Guild Report of the Trustees For the year ended 31 August 2021

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law and the law applicable to charities in England and Wales requires the Charity 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 its incoming resources and application of resources, including the income and expenditure of the Charitable Company, for that period. In preparing these financial statements, the Trustees are required to: -

The Trustees are responsible for the Guild keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charity (Accounts and Reports) Regulations 2008, Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Structure, Governance and Management

Type of Governing Document

Articles of Association approved by members at an Extraordinary General Meeting (EGM) held on 20[th] June 2015. It is recognised the Articles need reviewing however the Trustees have had higher priorities, so it is still to be done.

The Embroiderers’ Guild is a charitable company limited by guarantee.

Trustee Selection Methods

Trustees may be nominated by members of the Guild and are appointed by the Trustees.

During the significant changes during the past 18 months the Trustees have worked together as a team, pooling their skills and experience to complete the activities and tasks required to resolve the Guild’s financial difficulties. The Trustees have also strengthened by recruiting new Trustees. The recovery work is still ongoing and part of this will include the Trustees reviewing how the Guild should be structured and administered. This will include a review of the appropriateness of the Trustee Seats for the future.

The Chair of the Board of Trustees is elected by the members of the board from their number. The period of “office” as Chair of the Board is normally between 2 and 4 years.

Muriel Campbell was the elected ‘Chair of the Board’ on 31[st] August 2018. She subsequently retired as Chair on 30[th] September 2020. During the past year Dr Penny Hill has deputised as Chair of the Board. The review of the structure and administration will include redefining the role of Chair of the Board of Trustees and seeking an appropriate person to fulfil that role.

Board of Trustees

Due to current circumstances the Board of Trustees meets two to three times each month, as it governs and operates the Charity.

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The Embroiderers’ Guild Report of the Trustees For the year ended 31 August 2021

The Board’s focus is on the Objectives and Activities.

The Trustees regularly declare any conflicts of interest as part of the Board meeting process to recognise, manage and eliminate the possibilities of risks related to the activities of Trustees and related parties (company directors or family members).

The authority of the Trustees is set out clearly in the Articles of Association approved by members at the EGM on 20[th] June 2015. The Board of Trustees delegated authority to the CEO prior to his retirement to make operational and employment decisions and to contract with others on behalf of the Guild. The Board of Trustees are now responsible for these decisions and contracting with others.

Some decisions, normally related to the membership as a whole or the conduct of the company, require the approval of members, either by a simple majority or, in some instances, a minimum of 75%. Such decisions are set out in the Articles of Association and members may vote in person or by proxy usually at an AGM or EGM.

Trustees are conscious of the obligations of corporate governance and duties as defined by the Charity Commission and as set out under the accountabilities of directors as stated in the Companies Act 2006. Trustees are encouraged to visit the National Council for Voluntary Organisations (NCVO) website for further guidance and clarity. Trustees are encouraged to acquire and maintain relevant knowledge and experiences to be able to provide the leadership and/or guidance necessary to the board. All Trustees are required to sign and observe a ‘Code of Conduct’.

Trustees have put members and the sustainable future of the Charity at the heart of their immediate and mid-term strategic decisions.

Organisation and Management

During the year ended 31[st] August 2021 the Guild comprised of the Board of Trustees, Head Office (CEO until 31st January 2021, and staff) and volunteers. In particular, volunteers working at Discover Bucks Museum and a volunteer managing insurance cover.

During the year ended 31 August 2021 the Guild had four employees (three full-time and one part-time). In addition, it contracted with sole traders, private limited companies, and PLCs, as appropriate, for network support, programming, magazine production services, accountancy, banking, and audit services and, from time-to-time, legal advice. The staff worked remotely from home with reliable communication links between each other and with the CEO.

Post year end due to further financial constraints the staff have been made redundant and the Trustees along with volunteers have taken on the administration of the Guild.

Membership

At the end of August 2021, the Guild had 4,116 adult members. These comprise Life Members and Individual Members. Young embroiderers are no longer required to be members of an affiliated independent stitch group.

Compliant with the law of England & Wales DBS (Disclosure and Barring Service) checks and the law in Scotland PVG (Protection of Vulnerable Groups) checks and records have been maintained and updated in 2020/21.

– The Trading Company EG Enterprises Ltd, a wholly owned subsidiary

The Guild’s wholly owned subsidiary, EG Enterprises Ltd, sold its Stitch publication in January 2020 but continues to publish Embroidery magazine. The directors of EG Enterprises Ltd may be drawn from the Trustees, the staff and, subject to Board approval, external persons. EG Enterprises Ltd contracts with editors, designers, photographers, printers, subscriptions management providers, retail chain account managers, advertising agencies and distributors. It does not directly employ staff, nor does it have separate premises. However, it is assigned a share of Guild resources sufficient only to publish and distribute the magazine. EG Enterprises Ltd may develop new and alternative income streams, but it has no working capital. Taxable profits are ‘gift aided’ to the Guild.

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The Embroiderers’ Guild Report of the Trustees For the year ended 31 August 2021

Reference and Administration Details of the Charity, its Trustees and Advisors

President Alice Kettle – Resigned April 2021
Trustees Muriel Campbell (Chair of the Board) – Retired 30th September 2020
Anthea Godfrey (Artistic Director)
Anne Haigh – Appointed 8th July 2021
Dr Penny Hill (Special interest - Social Media)
Neil Hitchins – Appointed 12th January 2021
Alex Messenger (Artistic Director for Young & Student Embroiderers)
Helen Miller – Appointed 20th June 2021
Amanda Smith (Special interest - Education)
Elizabeth Smith (Special interest - Conservation) – Retired 31st December 2020
Julie Stenning – Appointed 20th June 2021
CEO Terence Murphy – Retired 31st January 2021
Registered
Office		 Embroiderers’ Guild at Bucks County Museum, Church Street, Aylesbury HP20 2QP
Bankers Unity Trust Bank plc, Four Brindley Place, Birmingham B1 2JB
Independent
Examiners		 Knox Cropper LLP, Chartered Accountants, 65 Leadenhall Street, London, EC3A 2AD
Company &
Charity
Registrations		 Charity in England & Wales No. 234239 and Scotland SCO40142
Company limited by guarantee No. 00294310

Acknowledgements

The continued commitment and achievements of all staff, volunteers, and members, in whatever capacity they are working to make this year’s achievements possible, is gratefully acknowledged by the Trustees.

This report has been prepared in accordance with provisions applicable to companies entitled to small companies’ exemption.

This Report of the Trustees was approved on 10th May 2022 and signed on its behalf by:

Dr Penny Hill - Director / Trustee

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The Embroiderers’ Guild Report of the Independent Examiner For the year ended 31 August 2021

I report to the charity trustees on my examination of the financial statements of The Embroiderers’ Guild (‘the charitable company’) for the year ended 31 August 2021.

This report is made to the Trustees, as a body, in accordance with the terms of my engagement. Our work has been undertaken so that we might carry out an Independent Examination of the financial statements in accordance with the General Directions given by the Charity Commissioners. 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 work or for this report.

Responsibilities and basis of report

As the charity trustees of the charitable company, (who are also the directors of the charitable 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 charitable company are not required to be audited for this year under Part 16 of the 2006 Act. I report in respect of my examination of the charitable company's accounts carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’) and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charitable company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accounts in England and Wales (‘ICAEW’), which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in accordance with Section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Charities SORP (FRS 102).

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.

James Holland-Leader FCA Knox Cropper LLP 65 Leadenhall Street London EC3A 2AD

18[th] May 2022

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The Embroiderers’ Guild

Statement of Financial Activities (incorporating the Income and Expenditure Account) For the year ended 31 August 2021

Income From
Notes
Donations and Legacies
2
Other Trading Income
3
Investments
4
Charitable activities
Member activities
5
Subscriptions
6
Other income
Total income
Expenditure on
Raising Funds
7
Charitable activities
8
Collection and curatorial
Member activities
Grant making
Education
Exhibition and shows
Young Embroiderers
Membership services
Total expenditure
Net (losses) /gains on investments
13
Net (expenditure)/income
Transfers between funds
18&19
Net movement in funds
Fund balances at 1st September 2020
Fund balances at 31st August 2021
15&16		 Unrestricted
Funds
£
40,252
1,264
51
50,378
158,656
-
250,601
12,530
2,020
137,356
30,390
21,182
3,057
33,802
195,707
423,514
436,044
(185,443)
-
(185,443)
79,143
(106,300)
324,409
£218,109		 Restricted
Funds
£
14,124
-
-
-
-
-
14,124
-
20,984
117
21,961
-
-
2,880
-
45,942
45,942
(31,818)
-
(31,818)
(79,143)
(110,961)
358,343
£247,382		 Total
2021
£
54,376
1,264
51
50,378
158,656
-
264,725
12,530
23,004
137,473
52,351
21,182
3,057
36,682
195,707
469,456
481,986
(217,261)
-
(217,261)
-
(217,261)
682,752
£465,491		 Unrestricted
Funds
£
24,650
29,289
885
296,380
307,611
-
658,815
16,921
3,667
438,826
-
27,195
55,885
55,733
150,324
731,630
748,551
(89,736)
-
(89,736)
32,861
(56,875)
381,284
£324,409		 Restricted
Funds
£
-
-
-
4,988
-
-
4,988
-
16,350
5,298
-
5
1,585
675
4,385
28,298
28,298
(23,310)
(964)
(24,274)
(32,861)
(57,135)
415,478
£358,343		 Total
2020
£
24,650
29,289
885
301,368
307,611
-
663,803
16,921
20,017
444,124
-
27,200
57,470
56,408
154,709
759,928
776,849
(113,046)
(964)
(114,010)
-
(114,010)
796,762
£682,752

The results for the year are all derived from continuing activities. There are no gains or losses other than those disclosed above.

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The Embroiderers’ Guild Balance Sheet As at 31 August 2021

Notes
Fixed assets
Intangible assets
11
Tangible assets
12(a)
Heritage assets
12(b)
Investment in subsidiary company
14
Current assets
Debtors
16
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
Net assets
Capital and reserves
Unrestricted
18
Restricted
19		 2021
£
-
-
10,000
100
10,100
46,623
482,372
528,995
(73,604)
455,391
465,491
-
£465,491
218,109
247,382
£465,491		 2020
£
25,826
-
10,000
100
35,926
15,872
711,651
727,523
(80,697)
646,826
682,752
-
£682,752
324,409
358,343
£682,752

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st August 2021.

The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31 August 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

The financial statements have been prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies.

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The Embroiderers’ Guild Balance Sheet As at 31 August 2021

The financial statements were approved by the Board of Trustees on 10th May 2022 and signed on its behalf by:

Dr Penny Hill - Director / Trustee

The notes on pages 13-24 form part of the financial statements. Registered company Number 00294310 Charity Number 234239 (England), Charity Number SC040142 (Scotland)

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The Embroiderers’ Guild Notes to the Financial Statements For the year ended 31 August 2021

1 Accounting policies

The Charitable Company’s registered office is stated on Page 8.

1.2 Basis of Preparation and Assessment of going concern

The accounts have been prepared under the historical cost convention with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) (effective 1st January 2019) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Charity constitutes a public benefit entity as defined by FRS 102.

The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. The Board has considered the impact of Covid-19 on the short and long term health of the Charity, and is content that the measures taken, combined with sufficient reserves, provides assurance that the going concern basis is appropriate in preparing the financial statements.

The financial statements contain information about The Embroiderers’ Guild as an individual company and do not contain consolidated information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirement to prepare consolidated financial statements.

Intangible assets comprise externally acquired computer software and databases. These are carried at cost less accumulated amortisation and any recognised impairment loss. Intangible assets such as externally acquired computer software and software licences are capitalised and amortised on a straight-line basis over their useful lives of three to fifteen years.

Amortisation of intangible assets is calculated on a straight-line basis from the date of which they are brought into use, charged to support costs, and is calculated based on the useful lives indicated below:

Computer software and databases 3-15 years, or the lease term if shorter

Amortisation periods and methods are reviewed annually and adjusted if appropriate.

Estimation of Useful Life

The charge in respect of periodic amortisation is derived by estimating an asset’s expected useful life and the expected residual value at the end of its life. Increasing an asset’s expected life or its residual value would result in a reduced amortisation charge in the Statement of Financial Activities.

The useful life is determined by management at the time the software is acquired and brought into use and is regularly reviewed for appropriateness. For computer software licences, the useful life represents management’s view of the expected period over which the charitable company will receive benefits from the software.

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The Embroiderers’ Guild Notes to the Financial Statements For the year ended 31 August 2021

1 Accounting policies (continued)

1.5 Heritage assets

The Guild maintains a collection of embroidery and related items. This collection of approximately 8,500 items has been built up over many years.

The original cost of individual items acquired historically is not available. Many items have been donated. The nature of the collection means that a sufficiently reliable method of valuation for accounting purposes is not available for items acquired prior to 1st August 2007. Items acquired subsequently are disclosed at cost.

1.6 Other tangible fixed assets

Other tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is calculated at the following annual rates on the bases shown in order to write off each asset over its estimated useful life:

Computer equipment 33% of cost Furniture, fittings and equipment 33% of written down value Other assets – held by regions and branches 33% of cost

1.7

Investments

The investment in the subsidiary company is disclosed on the balance sheet at cost.

Investments are a form of basic financial investment and are initially recognised at their transaction value and subsequently measured at fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluations and disposals throughout the year.

Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value.

1.8 Stocks

Stocks have been valued at the lower of cost and estimated net realisable value.

1.9 Leases

Operating lease rentals are charged to the Statement of Financial Activities when payments to the lessor fall due. Currently no assets are held under finance leases.

1.10 Pension fund contributions

The pension costs charge represents the Charity’s contributions to personal pension plans of staff members, and these are brought into account when payments arising to the scheme fall due.

1.11 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. Legacies and donations are recognised when the Charity is entitled to receipt and the amount can be ascertained with reasonable certainty. Subscriptions and membership fees (other than Life Membership fees) are spread over the period covered by the subscription and amounts received in excess of the amounts credited are deferred. Life membership subscriptions once paid are not refundable. They are therefore credited as income in the year of receipt.

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The Embroiderers’ Guild Notes to the Financial Statements For the year ended 31 August 2021

1 Accounting policies (continued)

1.12 Expenditure and cost allocation

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is recognised on an accruals basis.

Costs that relate direct to charitable activities or fund-raising activities of the Charity are charged to those activities. All other expenses are allocated on the basis of time spent by staff on the various activities.

Governance costs include the costs of administering the Charity as a legal entity and include costs of Trustees meetings, audit fees, other statutory costs and allocated to support costs.

The Charity is not registered for VAT and costs are disclosed inclusive of VAT where charged.

Unrestricted funds are donations and other incoming resources that can be used at the discretion of the Trustees for charitable purposes. Restricted funds are funds received from donors for specific activities. Expenditure which meets the criteria can be charged to the funds. Designated funds are unrestricted funds which have been earmarked by the Board for specific purposes.

1.14 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.15 Cash at bank and in hand

Cash bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.16 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.17 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.18 Significant judgements and estimates

The following are the critical judgements and key sources of estimation uncertainty that the Board has made in the process of applying the charity’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements:

Useful life of intangible fixed assets

The Trustees reviews its estimate of the useful lives of intangible assets at each reporting date based on the expected utility of the assets. Uncertainties in these estimates relate to future technological obsolescence of membership database software.

15

The Embroiderers’ Guild Notes to the Financial Statements For the year ended 31 August 2021

2
Voluntary income
Donations
Donations received by branches
Gift Aid
Legacies
3
Other trading activities
Other income
Branch fundraising activities
4
Investment income and interest
Investment income
Interest received by branches
5
Member activities
Courses
Regional income
Activities by branches
6
Subscriptions
Embroiderers’ Guild
Retained by branches
7
Raising Funds
Support Costs (Note 9)
Branch Fundraising
Fundraising costs		 2021
£
8,357
4,927
31,092
10,000
£54,376
654
610
£1,264
-
51
£51
6,846
9,500
34,032
£50,378
148,278
10,378
£158,656
12,227
121
182
£12,530		 2020
£
7,427
17,223
-
-
£24,650
16,610
12,679
£29,289
124
761
£885
-
-
301,368
£301,368
222,736
84,875
£307,611
14,667
2,051
203
£16,921

16

The Embroiderers’ Guild Notes to the Financial Statements For the year ended 31 August 2021

8 Charitable Activities

Collection and curatorial
Member activities
Grant making
Education
Exhibitions and shows
Young Embroiderers
Membership
Collection and curatorial
Member activities
Grant making
Education
Exhibitions and shows
Young Embroiderers
Membership		 Direct Costs
£
15,056
133,296
47,460
1,007
-
-
10,315
£207,134
Direct Costs
£
16,350
432,294
-
3,000
3,937
675
9,511
£465,767		 Support Costs
£
7,948
4,177
4,891
20,175
3,057
36,682
185,392
£262,322
Support Costs
£
3,667
11,830
-
24,200
53,533
55,733
145,198
£294,161		 Total
2021
£
23,004
137,473
52,351
21,182
3,057
36,682
195,707
£469,456
Total
2020
£
20,017
444,124
-
27,200
57,470
56,408
154,709
£759,928

Expenditure on grant making represents funding awarded to Independent Stitch Groups that affiliated to the Guild. Grants were awarded at £250 per ISG with additional amounts awarded where the Guild held funds restricted to use in the area served by an ISG.

9 Support Costs

Staff costs & training
Less recharged to subsidiary
CEO
Database & website
IT support & maintenance
Accounting & bookkeeping
Travel & Subsistence
Administration & office costs
Insurance
Amortisation of intangibles
Impairment of intangibles
Governance costs
Other		 2021
£
106,592
(8,864)
37,400
13,426
13,165
25,650
925
32,096
8,031
3,664
22,162
16,125
4,177
£274,549		 2020
£
103,142
-
73,614
25,151
8,796
33,715
9,293
24,203
11,830
3,664
-
10,473
4,947
£308,828

Included within Governance costs is £5,520 relating to the independent examination of the Charity (2020: £10,320 relating to audit).

17

The Embroiderers’ Guild Notes to the Financial Statements For the year ended 31 August 2021

10 Total resources expended

Total resources expended are stated after charging:

Auditor’s remuneration
Independent examiner’s remuneration
Depreciation
Amortisation
Impairment
Operating Lease Payments
mployee Information
taff Costs
Salaries
Social security costs
Pension
Other staff benefits
The average number of staff employed
(including part time members) during the year was:
Emoluments of the Board of Trustees		 2021
£
-
5,520
-
3,664
22,162
5,263
2021
£
96,427
3,534
5,786
545
£106,292
4
£NIL		 2020
£
9,885
-
-
3,664
-
20,019
2020
£
92,150
4,906
5,529
557
£103,142
4
£NIL

11 Employee Information

Staff Costs

No employee was paid remuneration in excess of £60,000 (2020: Nil). No trustee received any remuneration in the current or preceding year. Key Management Personnel of the Charity comprises the Trustees and Chief Executive and total remuneration payable to them amounted to £37,400 (2020: £73,614).

18

The Embroiderers’ Guild Notes to the Financial Statements For the year ended 31 August 2021

11 Intangible fixed assets

Cost
At 1 September 2020
Additions this year
Disposals
At 31 August 2021
Amortisation
At 1 September 2020
Charge for the year
Impairment
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020
12 (a)Tangible fixed assets
Cost
At 1 September 2020
Additions this year
Disposals
At 31 August 2021
Depreciation
At 1 September 2020
Disposals
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020
All fixed assets were used for charitable purposes.
12 (b)Heritage assets
Cost or valuation
At 1 September 2020
Additions this year
At 31 August 2021		 Computer
Software
£
36,640
-
-
36,640
10,814
3,664
22,162
36,640
£ -
£25,826
Furniture,
Fittings and
Computer
Equipment
£
121,460
-
-
121,460
121,460
-
-
121,460
£ -
£ -
£
10,000
-
£10,000

19

The Embroiderers’ Guild Notes to the Financial Statements For the year ended 31 August 2021

12 (b) Heritage assets

The Guild maintains a collection of embroidery and related items. Proceeds from disposals of heritage assets amounted to £nil in the year ended 31/08/2021, £12,180 in the year ended 31/08/2020, £112 in the year ended 31/08/2019, £nil in the year ended 31/08/2018 and £78,466 in the year ended 31/08/2017.

The Guild has a permanent gallery at Bucks County Museum, which is available to members in business hours, 5 days a week. The Guild plans to continue to provide the general public with access to the travelling exhibition of the Collection. Though the Collection is insured for £642,000, this figure is for insurance purposes only and is not reflected as an asset in the accounts.

The original cost of individual items acquired historically is not available and many items have been donated. The nature of the Collection means that a sufficiently reliable method of valuation for accounting purposes is not available for items acquired prior to 1st August 2007. Items acquired subsequently are disclosed at cost.

13 Investments

Market value at 1 September 2020
Additions
Disposals proceeds
Net investment (losses)/gains
Market value at 31 August 2021
Historical cost at 31 August 2021		 2021
£
-
-
-
-
£ -
£ -		 2020
£
25,883
-
(24,919)
(964)
£ -
£ -

14 Investment in trading subsidiary

The Embroiderers’ Guild holds 100% of the ordinary share capital (100, £1 ordinary shares) of E G Enterprises Limited, a company incorporated in England and Wales. The principal activities of the company are magazine publishing, tours and retailing, in connection with the craft of embroidery. A summary of its trading results is shown below:

ading results is shown below:
Turnover
Costs of sales
Gross profit
Administrative expenses
Other operating income
Operating profit/(loss)
Interest receivable
Profit before taxation
Tax
Profit for the financial year		 2021
£
119,589
(106,141)
13,448
(11,757)
548
2,239
-
2,239
213
£2,452		 2020
£
167,969
(156,888)
11,081
(12,299)
42,034
40,816
-
40,816
-
£40,816

The aggregate capital and reserves of the company at 31 August 2021 was £6,509, 2020: £4,057.

20

The Embroiderers’ Guild Notes to the Financial Statements For the year ended 31 August 2021

16 Debtors

Trade debtors
Prepayments and accrued income
Other debtors
17
Creditors: Amounts falling due within one year
Trade creditors
Taxes and social security costs
Other creditors
Accruals and deferred income
Amount due to subsidiary company		 2021
£
483
37,276
8,864
£46,623
2021
£
12,548
1,440
945
22,889
35,782
£73,604		 2020
£
221
15,651
-
£15,872
2020
£
15,323
1,317
1,066
24,552
38,439
£80,697

18 Unrestricted Funds

General (Guild Headquarters)
Branches and regions
Branches Support Fund
Unrestricted Funds
General (Guild Headquarters)
Branches and regions
Branches Support Fund		 B/f
01/09/2020
£
(356,748)
593,020
88,137
£324,409
B/f
01/09/2019
£
(329,303)
683,070
27,517
£381,284		 Income
£
195,643
54,958
-
£250,601
Income
£
246,898
411,917
-
£658,815		 Expenditure
£
(312,910)
(123,134)
-
£(436,044)
Expenditure
£
(307,204)
(441,347)
-
£(748,551)		 Transfers
£
664,235
(499,455)
(85,637)
£79,143
Transfers
£
32,861
(60,620)
60,620
£32,861		 C/f
31/08/2021
£

190,220

25,389
2,500
£218,109
C/f
31/08/2020
£

(356,748)

593,020

88,137
£324,409

General reserves represent funds freely available to further the objects of the Charity. The branches and regions fund represents resources held by the branches and regions, the majority of these funds have been transferred back to central funds during the year as part of the reorganisation of the Guild’s structure.

21

The Embroiderers’ Guild Notes to the Financial Statements For the year ended 31 August 2021

19 Restricted Funds

Restricted Funds
De Denne Memorial Fund and Young
Embroiderers
Folios
Broderers Annual Members
Collection
Madeira Fund
Teaching Support Nottingham
Regions and Branches
Total Restricted Funds		 B/f
01/09/2020
Income
Expenses
Gains/
(Losses)
Transfers
Total
31/08/2021
£
£
£
£
£
£
66,329
-
(2,880)
-
(60,465)
2,984
456
-
-
-
(456)
-
874
-
-
-
(874)
-
68,778
10,000
(20,984)
-
-
57,794
432
181,891
-
-
-
-
-
-
(432)
-
-
181,891
39,583
4,124
(22,078)
-
(16,916)
4,713
£358,343
£14,124
£(45,942)
£ -
£(79,143) £247,382
De Denne Memorial Fund and Young
Embroiderers
Exhibitions
Folios
Broderers Annual Members
Education Resources
Collection
Madeira Fund
Teaching Support Nottingham
Digital Resources
Database and Website
Regions and Branches
Total Restricted Funds		 B/f
01/09/2019
Income
Expenses
Gains/
(Losses)
Transfers
Total
31/08/2020
£
£
£
£
£
£
67,768
-
(475)
(964)
-
66,329
2,029
-
(1,585)
-
(444)
-
456
-
-
-
-
456
874
-
-
-
-
874
5
-
(5)
-
-
-
117,545
-
(16,350)
-
(32,417)
68,778
632
181,891
-
-
(200)
-
-
-
-
-
432
181,891
2,425
-
(2,425)
-
-
-
1,960
-
(1,960)
-
-
-
39,893
4,988
(5,298)
-
-
39,583
£415,478
£4,988
£(28,298)
£(964) £(32,861) £358,343

The restricted funds include the Regions and Branches fund (which consists of the restricted funds within all the regions and branches, usually recent project grants), the Collection fund (which represents funds receive to support the costs of preserving the Guild’s collection of embroidery items), the De Denne Memorial Fund (which represents funds received to be used for the benefit of young embroiderers) and the Teaching Support Nottingham Fund.

The Trustees have been unable to utilise the Teaching Support Nottingham funds so far due to the limited purposes applied to the funds. Subsequent to the year end, the Trustees have obtained permission from the Charity Commission to widen the purposes of this fund, so that the Charity can effectively use the funds whilst still recognising the intentions of the legator.

Transfers from restricted funds to unrestricted funds in the current and previous year represent a correction to the fund balances for expenses incurred in previous years which were charged against unrestricted funds, rather than the relevant restricted fund.

22

The Embroiderers’ Guild Notes to the Financial Statements For the year ended 31 August 2021

20 Branches and Regions Financial Statements

Branch Income and Expenditure Account

ranch Income and Expenditure Account
Income
Net Subscription income
Donations and tax reclaimed
Bank Interest
Fundraising income
Meetings income
Class, workshop and lecture income
Exhibition and project income
Sales table income
Branch outings
Regional day income
Magazine subs received
Library Loan Income
Young Embroiderers income
Other
Less: amounts refunded by head office
Total Income
Expenditure
Regional levy and affiliation fees
Insurance
Officers and committee expenses
Meetings costs and expenses
Class, workshop and lecture expenses
Exhibition and projects expenses
Branch outings
Fundraising expenses
Regional day expenses
Office costs
Branch magazine
Magazine Income paid to Guild
Young Embroiderers expenses
Activity expenses paid from head office
Other net expenses
Total Expenditure
(Deficit) for the year		 2021
£
£
10,378
9,887
51
610
3,016
20,972
2,179
1,024
883
595
-
-
191
24,167
(18,995)
34,032
54,958
600
-
460
11,721
29,886
3,390
220
121
3,267
10,772
596
-
309
36,113
25,779
123,234
£(68,276)		 2020
£
£
84,875
17,223
761
12,679
46,332
131,558
18,107
14,265
32,972
19,716
950
455
6,928
30,085
-
301,368
416,906
2,781
11,255
7,979
92,715
173,184
17,434
34,189
2,051
19,889
16,244
1,079
-
6,962
59,564
445,326
£(28,420)
416,906
445,326
£(28,420)

23

The Embroiderers’ Guild Notes to the Financial Statements For the year ended 31 August 2021

21 Analysis of Net Assets between Funds

Analysis of Net Assets between Funds
2021
Tangible Fixed Assets
Investment Assets
Current Assets
Current Liabilities
2020
Intangible Fixed Assets
Tangible Fixed Assets
Investment Assets
Current Assets
Current Liabilities		 Unrestricted
Funds
10,000
100
281,613
(73,604)		 Restricted
Funds
Total
Funds

-
10,000

-
100

247,382
528,995

-
(73,604)
£218,109
£247,382
£465,491

-
25,826

-
10,000

-
100

358,343
727,523

-
(80,697)
25,826
10,000
100
369,180
(80,697)
£324,409
£358,343
£682,752

22 Related Party Transactions

The Guild’s Chief Executive Officer is an independent contractor who invoiced the Charity £51,800 (2020: £68,222) during the year for their services as Chief Executive Officer. £NIL (2020: £1,702) was owed to them at the year end.

Three trustees were reimbursed for computer expenses totalling £1,309 (2020: six trustees reimbursed for travel and overnight accommodation totalling £4,468).

At the year end, £35,782 (2020: £38,439) was owed by the Charity to its subsidiary, E.G. Enterprises Limited. The balance is interest free and repayable on demand.

23 Operating Lease Commitments

In the next twelve months the charitable company is committed to the following payments under operating leases which expire:

Land and
Office
Building Equipment
£
£
0 – 1 Year 2,406
-
1 – 2 Years -
-
2 – 5 Years -
-

In addition, the charitable company has a minimum twelve month notice period under the agreement with Bucks County Museum for the storage and display of the collection and thus has a minimum commitment of £16,097 at the year-end date.

24