REGISTERED COMPANY NUMBER: 00294310 (England and Wales) REGISTERED CHARITY NUMBER: 234239
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 August 2022
for
The Embroiderers Guild
Wright Vigar Limited Chartered Accountants & Business Advisers
15 Newland Lincoln Lincolnshire LN1 1XG
The Embroiderers Guild
Contents of the Financial Statements for the Year Ended 31 August 2022
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 9 |
| Independent Examiner's Report | 10 | ||
| Statement of Financial Activities | 11 | ||
| Balance Sheet | 12 | ||
| Notes to the Financial Statements | 13 | to | 21 |
| Detailed Statement of Financial Activities | 22 | to | 23 |
The Embroiderers Guild
Report of the Trustees for the Year Ended 31 August 2022
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2022. The trustees have adopted the provisions of 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 Board of Trustees present their report and financial statements of the Embroiderers' Guild (EG) for the year ended 31st August 2022. This document conforms to the Charities SORP (FRS 102) for the Trustees' Report disclosure requirements.
OBJECTIVES AND ACTIVITIES Objectives and aims 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:
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Encourage new generations to stitch whether for pleasure, technical excellence, or artistic merit.
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Support all who teach, learn, explore, and extend the boundaries of the art of stitch.
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Publish the history of stitch and support contemporary research.
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Collect, preserve, and exhibit items of historical and contemporary significance
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The Embroiderers Guild
Report of the Trustees for the Year Ended 31 August 2022
OBJECTIVES AND ACTIVITIES Significant activities Activities for the Public Benefit
The pandemic continued to create difficulties for many organisations in 2021/2022 and the Guild was no exception. Generally, the return to normal was slow but gradual. 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 21/22 to show the delivery of activities prepared within the financial year.
During a period of continued uncertainty, the Trustees continued to focus on developing activities that are less 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….
- Virtual educational talks with a range of artists and makers
a. Advertised on our website, in our monthly newsletter and through social media
b. Online booking through Eventbrite to minimise administration costs.
- Virtual Sit and stitch sessions for those unable to attend in person stitch groups.
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.
b. Evening sessions have now been added to provide some further flexibility for those who work or have young children or other caring responsibilities.
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Providing introductory courses and workshops for beginners working with a former Guild Scholar and a recent embroidery degree graduate.
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Supporting graduates and scholars to exhibit at shows as in person shows returned.
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Created three collaborative stitched wall panels entitled "Reasons to be Thankful" which gave thanks to NHS workers for the efforts during the pandemic. These were displayed at the Knitting and Stitching Shows in October and November 2021 and have now been donated to the NHS. Two of the panels are now hanging in the reception at the main Hillingdon Hospital and one is hanging in the reception in Mount Vernon Hospital - a sister hospital. In the future, there will be a new hospital at Hillingdon and all three panels will be hung in reception with a plaque. An eBook of the contributions to the hangings for members to view virtually has also been produced and is available on the Guild website.
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The Members' challenge for 2021/22 was 'In and Out of Lockdown' - or 'My Lockdown Year'. Members were challenged to produce a piece that reflected their lockdown experience. Entries ranged from silent screams to the joy of simply sitting in the garden. 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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Continued publishing Embroidery Magazine, promoting textile artists around the world.
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Providing digital access to Embroidery Magazine in a variety of forms to enable readers around the world to access the publication easily, cost effectively and in a more climate friendly manner. By continuing to provide and promote digital subscriptions we have overcome issues with sending printed magazines overseas post Brexit when extra duty and VAT was applied to magazines in some markets.
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Digitised and launched the online archive of Embroideress and Embroidery magazine
a. The archive covers magazines from 1922 to the current time.
b. Hard copies of each magazine remain in the archives.
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Continued maintenance of the collection at Discover Bucks Museum, whilst adding further donations to the Collection, enhancing the representation of contemporary artists.
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During the whole of 2022 exhibited items from the Guild Collection in the Beryl Dean Gallery - "Sew New Exhibition" - which highlighted new acquisitions to the collection.
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Prepared inspiration packs of fabric, threads, and other haberdashery items from donated items for sale at shows.
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Produced display boards of examples stitched using inspiration packs.
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Preparing to exhibit elements of the collection across decades of the 20th Century at Knitting and Stitching shows in London and Harrogate in 2022.
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Began the development of a new, public facing website that would also include a secure members' area. The site has subsequently been launched just after the year end in September 2022.
Assessing Achievements
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All our activities have been inclusive across communities involving members, top practitioners, tutors, speakers, teachers, partners, cultural groups, and the public.
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Adopting the lowest cost, digital administration processes, and communications including the use of social media to greater effect to improve our engagement with the wider community.
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Increased use of digital platforms has enabled the Guild to reach more people and create cost effective events for a worldwide audience.
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The Embroiderers Guild
Report of the Trustees for the Year Ended 31 August 2022
OBJECTIVES AND ACTIVITIES
- Holding exhibitions of embroidery and textile art into high footfall venues, raising the exposure of the Guild and the artistry of stitch by a factor of several thousands. This was achieved at the Knitting and Stitching shows at Alexandra Palace and Harrogate in 2021 and 2022.
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 2021/22 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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Assisting with the EG Collection, folios, and library, including contributions by Trustees.
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Organising Guild Insurance for the Collection and affiliated stitch groups.
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Preparing for exhibitions in Autumn 2021 and 2022
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Running national projects including In and Out of Lockdown and the members project Collections
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Governance and administration of transition from branches and regions to affiliated independent stitch groups.
ACHIEVEMENT AND PERFORMANCE Charitable activities
Main Achievements in relation to direct beneficiaries…
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The annual 'Members' Challenge' which encourages excellence in design, skills, and interpretation.
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Awarded start-up grants (£250) to affiliated stitch groups to assist them to become independent.
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Awarded start-up grants (£150) to Young Stitchers groups associated with affiliated stitch groups.
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Arranged and funded public liability and general insurance cover for affiliated independent stitch groups (ISG) and associated YS groups.
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Published eBooks for members to enable them to view contributions to group projects.
Main Achievements in relation to society as a whole
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Planned access for non-members to virtual talks.
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Focused initial talks on areas of more general interest e.g., historic garments that had featured on TV series.
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Promoted on social media platforms to ensure the widest reach to interested audiences.
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Planned sit and stitch sessions accessible to all members of the public.
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Planning of exhibitions for Knitting and Stitching Shows.
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Launched the exhibition 'Sew New 'at Discover Bucks Museum (when museum was able to reopen post lockdowns).
Fundraising activities
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As required by the Charity Governance code we confirm that the Guild does not employ professional fund raisers. - Additionally, the Guild does not have funds or contracts awarded from local authorities or national or devolved governments.
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The only income received from overseas is the payment of annual personal memberships or magazine subscriptions, and donations for some events.
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The Embroiderers Guild
Report of the Trustees for the Year Ended 31 August 2022
ACHIEVEMENT AND PERFORMANCE
2021/2022 - What happened
The Guild Trustees realised that with a further reduction in membership renewals in September-November 2021, following the restructure earlier in the year, the primary source of income of the Guild was insufficient to cover the outgoing cost commitments. There remained a significant risk that the Guild as a charity would have to close.
The outgoing cost commitments were reviewed, and the difficult decision was taken that the remaining staff could not be retained even on a part-time basis and that the Guild would need to simplify its working structure to reduce overheads and would need to become reliant upon voluntary support.
Current factors influencing the future of the Charity are:
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The public perception of embroidery and the Guild itself, although this is improving through the activities planned and helped by the current Trustees and volunteers.
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An ageing membership.
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Independent stitch group members don't see a benefit in remaining with or joining the Embroiderers' Guild.
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Unfilled vacancies within the governance and volunteering structure.
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Streamlining administration costs. During 20/21 the high cost was an issue, however during 21/22 significant progress has been made to reduce these costs. This has been done through detailed analysis of every single cost and prompt action to reduce or remove costs. During 22/23 this has remained the case.
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Seeking new ways of working that reduce cost while creating opportunities for income generation.
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The need to respond to an increasing expectation of access to digital services and online content.
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Finding a way of engaging, supporting and encouraging young people who have not experienced creative education or family encouragement to enable them to build career aspirations and skills for the future.
Plans for Future Periods
The future direction of the charity is to…
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Attract a new membership drawn from people in two primary groups i.e., those with an interest and personal investment in stitch and textile art who wish to further that interest after leaving further or higher education and those, who wish to pursue a previous or new interest in stitch and textile art for pleasure and general well-being.
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Extend its distance learning offering and capacity to become a significant income stream.
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Further extend its on-line capabilities as part of a digital strategy that will enable the widest access to its resources and become a portal-of-choice for the wider stitch community.
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Continue to extend its reach into the public domain with partnerships and projects that bring stitch and textile art to the widest audience in ways that inspire, educate, and motivate that audience to support and/or participate.
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Graduate and Scholar Showcase at future Knitting and Stitching Shows to highlight young talent in the world of embroidery.
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 of Trustees meet two to three times a month and this enables the Trustees to actively manage risks much more effectively than in the past.
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Declining membership income due, in part, to the age profile of the membership (average 70 years) and the actions the Trustees took in closing the branches and regions in 2021.
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The energy crisis and increasing interest rates impacting on the amount of disposable income people have to spend on memberships and recreational activities.
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Availability of suitably skilled volunteer resources to undertake activities to manage the Guild, especially in developing new activities and projects.
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Unwillingness of members to donate given the change to the relationship with regions and branches. This is a significant risk given the Guild relies on membership fees and donations to fund its activities, especially in developing new activities and projects. Viability of the charity remains a risk because of uncertainty over membership renewals for 23/24 and availability of resources to manage activities.
- Risks facing the wholly owned subsidiary EG Enterprises Ltd
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Embroidery magazine ceases to make a trading profit and/or cannot pay the overhead costs associated with its production and distribution. To be reviewed on an issue-by-issue basis. A detailed review of all costs has been undertaken to ensure effective cost management. Increased social media presence, a new editor and an increased range of subscription options has helped retain and attract new subscribers during the year.
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Increasing costs due to the energy crisis and increased demand for cardboard has moved production away from paper, making it more expensive, and long-term industrial disputes at major suppliers continues to impact the profitability due to increasing costs.
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The Embroiderers Guild
Report of the Trustees for the Year Ended 31 August 2022
FINANCIAL REVIEW
Financial position
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). 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 £104,846 (2021: deficit of £217,261).
The Guild deficit was primarily due to a decline in membership subscriptions in the year. The Guild continues to be extremely grateful to its benefactors. The Trustees are committed to monitoring and exercising tight control over all costs. During 21/22 and in the current year 22/23 they have achieved a significant reduction in support costs, to achieve a target of breaking even in future financial years.
Branch and Regional funds
Two branches were still to finalise the remaining funds that need to be transferred to the Guild at the end of 20/21 as they did not use Unity Bank accounts. This was resolved during 21/22.
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.
In previous years the Trustees have been unable to utilise the restricted fund "Teaching Support Nottingham" due to the limited purposes applied to the funds. During 21/22, the Trustees 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 £158,519.
The other restricted fund is for the upkeep of the Collection and has a balance of £48,300. The Trustees seek to maintain the fund at a sufficient level to cover the costs of maintaining, storage, insurance and curation of the Collection over three years.
The balance of unrestricted funds on 31st August 2022 was £153,826. The reserves amounted to £360,645.
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 has setup a saving deposit platform with CAF/Flagstone to ensure all Guild funds are protected by the FSCS (Financial Services Compensation Scheme) and to take advantage of the increase in interest rates. Restricted funds are held on this platform to generate interest income.
Going concern
The Guild remains conservative in its projections for 22/23, due to the energy crisis and rise in interest rates. For some the annual membership will prove a luxury they will no longer be able to afford.
Due to significant effort on behalf of the Trustees the Guild's operating costs have been significantly reduced.
Events and the relaunched courses "Inspired to Create" are starting to provide a consistent income that has offset some of the reduction in income from membership fees.
Providing the Trustees continue to control costs and efficiently implement effective new income generation ideas for which there is sufficient support from members and volunteers the Guild may be able to break even in 22/23 and 23/24.
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The Embroiderers Guild
Report of the Trustees for the Year Ended 31 August 2022
FINANCIAL REVIEW
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: -
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select suitable accounting policies and apply them consistently.
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observe the methods and principles of the Statement of Recommended Practice, Accounting and Reporting by Charities.
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make judgements and estimates that are reasonable and prudent.
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on a going concern basis, unless it is inappropriate to presume that the Charitable Company will continue to operate.
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
Governing document
Articles of Association approved by members at an Extraordinary General Meeting (EGM) held on 20th 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.
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The Embroiderers Guild
Report of the Trustees for the Year Ended 31 August 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees
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 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 31st August 2018. She subsequently retired as Chair on 30th 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.
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 20th 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.
Page 7
The Embroiderers Guild
Report of the Trustees for the Year Ended 31 August 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT
Organisational structure
During the year ended 31st August 2022 the Guild comprised of the Board of Trustees, Head Office (staff until January 2022) and volunteers. In particular, volunteers working at Discover Bucks Museum and a volunteer managing insurance cover.
During the year ended 31 August 2022 the Guild had four employees (three full-time and one part-time). One member of staff was made redundant in September 2021, the remaining three staff were made redundant in December 2021 and January 2022. In addition, it contracted with sole traders, private limited companies, and PLCs, as appropriate, for network support, programming, magazine production services, accountancy, banking, and, from time-to-time, legal advice. The staff worked remotely from home with reliable communication links between each other and the Trustees.
Since January 2022 the Trustees along with volunteers have taken on the administrative activities of the Guild previously undertaken by staff.
Membership
At the end of August 2022, the Guild had 1,555 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 2021/22.
- The Trading Company EG Enterprises Ltd, a wholly owned subsidiary
The Guild's wholly owned subsidiary, EG Enterprises Ltd continues to publish Embroidery magazine. The directors of EG Enterprises Ltd may be drawn from the Trustees, 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.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
00294310 (England and Wales)
Registered Charity number
234239
Registered office
Bucks County Museum Church Street Aylesbury HP20 2QP
Trustees
Anthea Godfrey (Artistic Director) Anne Haigh Penny Hill (Special interest - Social Media) Neil Hitchins (resigned 22.6.22) Alex Messenger (Artistic Director for Young & Students) Helen Miller Amanda Smith (Special interest - Education) Julie Stenning
Independent Examiner
Wright Vigar Limited Chartered Accountants & Business Advisers 15 Newland Lincoln Lincolnshire LN1 1XG
Approved by order of the board of trustees on 18 April 2023 and signed on its behalf by:
Page 8
The Embroiderers Guild Report of the Trustees for the Year Ended 31 August 2022
Penny Hill - Trustee
Page 9
Independent Examiner's Report to the Trustees of The Embroiderers Guild
Independent examiner's report to the trustees of The Embroiderers Guild ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2022.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of 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
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (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.
Paul Colcomb FCCA
Wright Vigar Limited Chartered Accountants & Business Advisers 15 Newland Lincoln Lincolnshire LN1 1XG
26 April 2023
Page 10
The Embroiderers Guild
Statement of Financial Activities
for the Year Ended 31 August 2022
| Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 21,634 Charitable activities Collection and curatorial 360 Member activities 950 Education 12,453 Exhibitions and shows 7,738 Membership 38,231 Other trading activities 2 1,963 Investment income 3 - Total 83,329 EXPENDITURE ON Raising funds - Charitable activities 4 Collection and curatorial 7,155 Member activities 3,020 Grant making (800) Education (8,779) Exhibitions and shows 27,603 Young Embroiderers 6,537 Membership 112,876 Total 147,612 NET INCOME/(EXPENDITURE) (64,283) RECONCILIATION OF FUNDS Total funds brought forward 218,109 TOTAL FUNDS CARRIED FORWARD 153,826 |
Restricted funds £ - - - - - - - - - - 12,220 402 7,445 20,047 449 - - 40,563 (40,563) 247,382 206,819 |
2022 Total funds £ 21,634 360 950 12,453 7,738 38,231 1,963 - 83,329 - 19,375 3,422 6,645 11,268 28,052 6,537 112,876 188,175 (104,846) 465,491 360,645 |
2021 Total funds £ 54,376 - 50,378 - - 158,656 1,264 51 |
|---|---|---|---|
| 264,725 | |||
| 12,530 23,004 137,473 52,351 21,182 3,057 36,682 195,707 |
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| 481,986 | |||
| (217,261) 682,752 |
|||
| 465,491 |
The notes form part of these financial statements
Page 11
The Embroiderers Guild
Balance Sheet
31 August 2022
| Unrestricted fund Notes £ FIXED ASSETS Heritage assets 12 10,000 Investments 13 100 10,100 CURRENT ASSETS Debtors 14 7,836 Cash at bank 160,596 168,432 CREDITORS Amounts falling due within one year 15 (24,706) NET CURRENT ASSETS 143,726 TOTAL ASSETS LESS CURRENT LIABILITIES 153,826 NET ASSETS 153,826 FUNDS 16 Unrestricted funds Restricted funds TOTAL FUNDS |
Restricted funds £ - - - - 206,819 206,819 - 206,819 206,819 206,819 |
2022 Total funds £ 10,000 100 10,100 7,836 367,415 375,251 (24,706) 350,545 360,645 360,645 153,826 206,819 360,645 |
2021 Total funds £ 10,000 100 |
|---|---|---|---|
| 10,100 46,623 482,372 |
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| 528,995 (73,604) |
|||
| 455,391 | |||
| 465,491 | |||
| 465,491 | |||
| 218,109 247,382 |
|||
| 465,491 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 18 April 2023 and were signed on its behalf by:
Penny Hill - Trustee
The notes form part of these financial statements
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The Embroiderers Guild
Notes to the Financial Statements for the Year Ended 31 August 2022
1. ACCOUNTING POLICIES
Basis of preparing the financial statements and assessment of going concern
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.
The Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.
Preparation of consolidated financial statements
The financial statements contain information about The Embroiderers Guild as an individual company and do not contain consolidated financial information as the parent of a group. The charity is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Legacies and donations are recognised when the Charity is entitled to receipt and the amount 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.
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 a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
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.
Intangible assets
Intangible assets compromise 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, from the date they are brought into use, over their useful lives of three to fifteen years.
Amortisation periods and methods are reviewed annually and adjusted if appropriate.
Estimation of useful life
The charge in respect of the 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 ans 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.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings
- 33% on reducing balance
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.
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The Embroiderers Guild
Notes to the Financial Statements - continued for the Year Ended 31 August 2022
1. ACCOUNTING POLICIES - continued
Heritage assets
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.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
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.
Cash at bank and in hand
Cash at 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.
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.
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,
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.
Pension fund contributions
The pension costs charge represents the Charity's contributions to personal pensions plans of staff members, and these are brought into account when payments arising to the scheme fall due.
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The Embroiderers Guild
Notes to the Financial Statements - continued for the Year Ended 31 August 2022
2. OTHER TRADING ACTIVITIES
| Fundraising events Other income Branch fundraising activities INVESTMENT INCOME Interest received by branches CHARITABLE ACTIVITIES COSTS Direct Costs (see note 5) £ Collection and curatorial 16,265 Member activities (728) Grant making 6,645 Education 2,287 Exhibitions and shows 1,744 Young Embroiderers - Membership (250) 25,963 DIRECT COSTS OF CHARITABLE ACTIVITIES Direct costs |
2022 £ 1,963 - - 1,963 2022 £ - Support costs (see note 6) £ 3,110 4,150 - 8,981 26,308 6,537 113,126 162,212 2022 £ 25,963 |
2021 £ - 654 610 1,264 2021 £ 51 Totals £ 19,375 3,422 6,645 11,268 28,052 6,537 112,876 |
|---|---|---|
| 188,175 | ||
| 2021 £ 207,134 |
3. INVESTMENT INCOME
4. CHARITABLE ACTIVITIES COSTS
5. DIRECT COSTS OF CHARITABLE ACTIVITIES
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.
6. SUPPORT COSTS
| SUPPORT COSTS | |
|---|---|
| Governance Management costs £ £ Collection and curatorial 2,862 248 Member activities 4,150 - Education 7,993 988 Exhibitions and shows 22,355 3,953 Young Embroiderers 5,549 988 Membership 99,538 13,588 142,447 19,765 |
Totals £ 3,110 4,150 8,981 26,308 6,537 113,126 |
| 162,212 |
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The Embroiderers Guild
Notes to the Financial Statements - continued for the Year Ended 31 August 2022
6. SUPPORT COSTS - continued
Support costs, included in the above, are as follows:
| Collection and Member curatorial activities £ £ Wages 957 - Insurance 1,474 2,035 Sundries 3 - CEO Fees - - Wages recharged to subsidiary - - IT support & maintenance - - Database & website 299 - Travel & subsistence - - Admin & office costs 129 2,115 Governance costs - - Amortisation of intangible fixed assets - - Depreciation of tangible and heritage assets - - Accountancy and legal fees 248 - 3,110 4,150 Young Embroiderers Membership £ £ Wages 3,829 60,686 Insurance - - Sundries 10 143 CEO Fees - - Wages recharged to subsidiary - (3,270) IT support & maintenance - 9,320 Database & website 1,195 20,102 Travel & subsistence - 17 Admin & office costs 515 12,540 Governance costs - - Amortisation of intangible fixed assets - - Depreciation of tangible and heritage assets - - Accountancy and legal fees 988 13,588 6,537 113,126 |
Exhibitions Education and shows £ £ 3,829 15,315 - - 10 42 - - - - - - 1,195 4,780 - - 2,959 2,218 - - - - - - 988 3,953 8,981 26,308 2022 2021 Total Total activities activities £ £ 84,616 106,292 3,509 8,031 208 4,477 - 37,400 (3,270) (8,864) 9,320 13,165 27,571 13,426 17 925 20,476 32,096 - 16,125 - 3,664 - 22,162 19,765 25,650 162,212 274,549 |
|---|---|
7. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Computer software amortisation | - | 3,664 |
| Independent examiners fee | 1,993 | 5,520 |
| Impairment | - | 22,162 |
| Operating lease payments | - | 5,263 |
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The Embroiderers Guild
Notes to the Financial Statements - continued for the Year Ended 31 August 2022
8. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 August 2022 nor for the year ended 31 August 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 August 2022 nor for the year ended 31 August 2021.
9. STAFF COSTS
| Wages and salaries | 2022 £ 84,616 84,616 |
2021 £ 106,292 |
|---|---|---|
| 106,292 |
Key management personnel of the charity compromises the Trustees and Chief Executive and total renumeration payable to them amounted to £nil (2021: £37,400). The Chief Executive post ceased in 2020/2021.
The average monthly number of employees during the year was as follows:
| Admin staff No employees received emoluments in excess of £60,000. INTANGIBLE FIXED ASSETS COST At 1 September 2021 and 31 August 2022 AMORTISATION At 1 September 2021 and 31 August 2022 NET BOOK VALUE At 31 August 2022 At 31 August 2021 TANGIBLE FIXED ASSETS COST At 1 September 2021 Disposals At 31 August 2022 DEPRECIATION At 1 September 2021 Eliminated on disposal At 31 August 2022 NET BOOK VALUE At 31 August 2022 At 31 August 2021 |
2022 3 |
2021 4 Computer software £ 36,640 36,640 - - Fixtures and fittings £ 121,460 (121,460) - 121,460 (121,460) - - - |
|---|---|---|
10. INTANGIBLE FIXED ASSETS
11. TANGIBLE FIXED ASSETS
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The Embroiderers Guild
Notes to the Financial Statements - continued for the Year Ended 31 August 2022
12. HERITAGE ASSETS
| HERITAGE ASSETS | |
|---|---|
| COST LESS IMPAIRMENT At 1 September 2021 and 31 August 2022 NET BOOK VALUE At 31 August 2022 At 31 August 2021 |
Total £ 10,000 |
| 10,000 | |
| 10,000 |
The Guild maintains a collection of embroidery and related items. Proceeds from disposals of heritage assets amounted to £nil in the year ended 31/08/2022, £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. FIXED ASSET INVESTMENTS
| FIXED ASSET INVESTMENTS | |
|---|---|
| Shares in | |
| group | |
| undertakings | |
| £ | |
| COST LESS IMPAIRMENT | |
| At 1 September 2021 and 31 August 2022 | 100 |
| NET BOOK VALUE | |
| At 31 August 2022 | 100 |
| At 31 August 2021 | 100 |
There were no investment assets outside the UK.
14.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||
|---|---|---|
| Trade debtors Other debtors Prepayments and accrued income |
2022 £ - 3,270 4,566 7,836 |
2021 £ 483 8,864 37,276 |
| 46,623 |
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The Embroiderers Guild
Notes to the Financial Statements - continued for the Year Ended 31 August 2022
15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||
|---|---|---|
| Trade creditors Amounts owed to group undertakings Social security and other taxes Other creditors Accruals and deferred income |
2022 £ 9,848 11,800 - - 3,058 24,706 |
2021 £ 12,548 35,782 1,440 945 22,889 |
| 73,604 |
16. MOVEMENT IN FUNDS
| MOVEMENT IN FUNDS | |||
|---|---|---|---|
| Net | |||
| movement | At | ||
| At 1.9.21 | in funds | 31.8.22 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 218,109 | (64,283) | 153,826 |
| Restricted funds | |||
| De Denne Memorial Fund and Young | |||
| Embroiderers | 2,984 | (2,984) | - |
| Collection | 57,794 | (9,494) | 48,300 |
| Teaching Support Nottingham | 181,891 | (23,372) | 158,519 |
| Regions and Branches | 4,713 | (4,713) | - |
| 247,382 | (40,563) | 206,819 | |
| TOTAL FUNDS | 465,491 | (104,846) | 360,645 |
| Net movement in funds, included in the above are as follows: | |||
| Incoming | Resources | Movement | |
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 83,329 | (147,612) | (64,283) |
| Restricted funds | |||
| De Denne Memorial Fund and Young | |||
| Embroiderers | - | (2,984) | (2,984) |
| Collection | - | (9,494) | (9,494) |
| Teaching Support Nottingham | - | (23,372) | (23,372) |
| Regions and Branches | - | (4,713) | (4,713) |
| - | (40,563) | (40,563) | |
| TOTAL FUNDS | 83,329 | (188,175) | (104,846) |
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The Embroiderers Guild
Notes to the Financial Statements - continued for the Year Ended 31 August 2022
16. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Net | Transfers | ||||
|---|---|---|---|---|---|
| movement | between | At | |||
| At 1.9.20 | in funds | funds | 31.8.21 | ||
| £ | £ | £ | £ | ||
| Unrestricted funds | |||||
| General fund | 324,409 | (185,443) | 79,143 | 218,109 | |
| Restricted funds | |||||
| De Denne Memorial Fund and Young | |||||
| Embroiderers | 66,329 | (2,880) | (60,465) | 2,984 | |
| Folios | 456 | - | (456) | - | |
| Broderers Annual Members | 874 | - | (874) | - | |
| Collection | 68,778 | (10,984) | - | 57,794 | |
| Madeira Fund | 432 | - | (432) | - | |
| Teaching Support Nottingham | 181,891 | - | - | 181,891 | |
| Regions and Branches | 39,583 | (17,954) | (16,916) | 4,713 | |
| 358,343 | (31,818) | (79,143) | 247,382 | ||
| TOTAL FUNDS | 682,752 | (217,261) | - | 465,491 | |
| Comparative net movement in funds, included in the above are as follows: | |||||
| Incoming | Resources | Movement | |||
| resources | expended | in funds | |||
| £ | £ | £ | |||
| Unrestricted funds | |||||
| General fund | 250,601 | (436,044) | (185,443) | ||
| Restricted funds | |||||
| De Denne Memorial Fund and Young | |||||
| Embroiderers | - | (2,880) | (2,880) | ||
| Collection | 10,000 | (20,984) | (10,984) | ||
| Regions and Branches | 4,124 | (22,078) | (17,954) | ||
| 14,124 | (45,942) | (31,818) | |||
| TOTAL FUNDS | 264,725 | (481,986) | (217,261) |
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.
Transfers from restricted funds to unrestricted funds in the 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.
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The Embroiderers Guild
Notes to the Financial Statements - continued for the Year Ended 31 August 2022
17. RELATED PARTY DISCLOSURES
At the year end, £11,800 (2021: £35,782) was owed by the charity to its subsidiary, E.G. Enterprises Limited. The balance is interest free and repayable on demand.
Page 21
The Embroiderers Guild
Detailed Statement of Financial Activities for the Year Ended 31 August 2022
| INCOME AND ENDOWMENTS Donations and legacies Donations Donations received by branches Gift aid Legacies Other trading activities Fundraising events Other income Branch fundraising activities Investment income Interest received by branches Charitable activities Membership income Collection & curatorial Member activities Education Exhibitions & shows Total incoming resources EXPENDITURE Raising donations and legacies Branch Fundraising Fundraising costs Charitable activities Direct costs Support costs Management Wages Insurance Sundries CEO Fees Wages recharged to subsidiary IT support & maintenance Database & website Travel & subsistence Admin & office costs Governance costs Amortisation of intangible fixed assets Depreciation of tangible and heritage assets |
2022 £ 2,355 - 9,162 10,117 21,634 1,963 - - 1,963 - 38,231 360 950 12,453 7,738 59,732 83,329 - - - 25,963 84,616 3,509 208 - (3,270) 9,320 27,571 17 20,476 - - - 142,447 |
2021 £ 8,357 4,927 31,092 10,000 54,376 - 654 610 1,264 51 158,656 - 50,378 - - 209,034 264,725 121 182 303 207,134 106,292 8,031 4,477 37,400 (8,864) 13,165 13,426 925 32,096 16,125 3,664 22,162 248,899 |
|---|---|---|
This page does not form part of the statutory financial statements
Page 22
The Embroiderers Guild
Detailed Statement of Financial Activities for the Year Ended 31 August 2022
| Management Governance costs Accountancy and legal fees Total resources expended Net expenditure |
2022 £ 19,765 188,175 (104,846) |
2021 £ 25,650 481,986 (217,261) |
|---|---|---|
This page does not form part of the statutory financial statements
Page 23