DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
Registered number: 00899449 Charity number: 235914
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Company, its Trustees and Advisers | 1 |
| Chairman's statement | 2 |
| Trustees' report | 3 - 8 |
| Trustees' responsibilities statement | 9 |
| Independent examiner's report | 10 - 11 |
| Statement of financial activities | 12 |
| Balance sheet | 13 - 14 |
| Statement of cash flows | 15 |
| Notes to the financial statements | 16 - 34 |
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
| Trustees | Ms Carina Ciscato (resigned 26 March 2020) |
|---|---|
| Mr Andrew Galloway | |
| Dr Tanya Harrod (resigned 26 March 2020) | |
| Ms Marya Hoffman Hudson | |
| Ms Marlene McKibbin | |
| Mr Oliver Parker (resigned 11 June 2020) | |
| Ms Simone ten Hompel | |
| Ms Judith Unwin, OBE | |
| Ms Georgina Louise Stewart (appointed 25 March 2020) | |
| Company registered number 00899449 Charity registered number 235914 Registered office 6 Paddington Street Marylebone London W1U 5QG Company secretary V Speziali (resigned 30 September 2020) Accountants MHA MacIntyre Hudson Chartered Accountants Maidstone United Kingdom Bankers National Westminster Bank PLC 1 Portman Square London W1A ADW CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET Patron The late Duke of Edinburgh, H R H Prince Philip (deceased 9 April 2021) |
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DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
CHAIRMAN'S STATEMENT FOR THE PERIOD ENDED 30 SEPTEMBER 2020
The chairman presents her statement for the period.
CAA is a maker member organisation across all the crafts disciplines and this, together with our 70+ year history, our charitable status, our mission of advocacy and education, makes us unique. But those characteristics - special though they are - are not sufficient to carry us through what is now a very significantly changed crafts landscape. The foundation stones of a transformed CAA were thus laid during the period which is the subject of this report; and we are optimistic for the future.
This report, which covers the period April 2019 to September 2020, encompasses what were, arguably, the most volatile and challenging months in CAA's history.
We moved location from Southwark Street to Marylebone in early summer 2019, launched our new website in autumn 2019, moved into our winter/Christmas period (traditionally our strongest sales time) when political uncertainties were negatively affecting the High Street and roadworks were disrupting Paddington Street; and were then locked down with enforced gallery closure in March 2020.
Our main income stream was substantially reduced as a result and we took the opportunity to review CAA's operational structure. We spent a considerable amount of time debating what and how we needed to change and adapt to steer ourselves away from the threat of insolvency, reviewing every aspect of CAA’s modus operandi and thinking very carefully about options and the best future course(s) of action. The challenges were huge but we were, as a Board, completely focussed on how we could best navigate our way through and continue to support makers as well as our founding objectives.
We secured emergency COVID-19 funding from the Arts Council, the Government's Coronavirus Job Retention Scheme and Westminster Council as well as a generous private donation from one of our collectors. In addition to grants and donations, we also took a Bounce Back Loan which we adjudged an appropriate facility for us given its flexibility and long repayment tenor.
Following the departure of our Executive Director in July 2020, the Board agreed to delegate responsibilities for running CAA to a committee comprising me and two trustees, Marya Hudson and Georgina Stewart. I am extremely grateful for their ongoing support and commitment during this time.
I also want to extend my and the Board's heartfelt thanks to our advisors and lawyer for their guidance, the committed and hard-working gallery team and, most importantly, our maker members for their talent, creativity and loyalty.
Judith Unwin, OBE (Chair) Date: 6/29/2021
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DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2020
The Trustees present their annual report together with the financial statements of the Company for the period 1 April 2019 to 30 September 2020. The Annual Report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Company qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Policies and objectives
Contemporary Applied Arts ("CAA") is London's original multi-disciplinary applied arts gallery which champions and promotes only the very best of British craft. CAA is a membership organisation, comprising around 280 leading British-based makers, professionals who create one-off pieces in ceramics, glass, jewellery, metal, paper, textiles, wood and furniture. This is a unique model in the art world. Our makers' work demonstrates a perfect harmony of technical skill and artistic vision. CAA's gallery is a respected place for learning about, appreciating and purchasing contemporary craft. We expose the public to high-quality applied arts in an accessible and engaging way, through our gallery displays and exhibitions, educational events, outreach and publications.
The objects and purposes of CAA are wholly charitable and are to preserve, promote and advocate for the craftsmanship in the United Kingdom.
In particular, we aim to:
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Further the study and understanding of the crafts in the UK by encouraging people to learn from CAA's activities, exhibitions and displays. We support our maker membership by displaying, publicising, promoting and selling their work in the company's gallery, in other venues and online.
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Act as a champion for the crafts, working to ensure that excellence in the applied arts in Britain is recognised, valued, experienced and enjoyed by the widest possible audiences.
In these ways, CAA supports the market place for craft in the UK and supports our nationally-distributed maker members by offering the public access to their work via a commercial gallery, which exposes them to diverse audiences and often offers them opportunities to extend their practice and participate in creative projects.
Achievements and performance
a. Main achievements of the Company
EXHIBITIONS
CAA is respected by makers and artists, collectors and applied arts enthusiasts for the scope and range of the temporary exhibitions mounted. These are in addition to the display of work by its makers, shown on a frequently rotating basis in the gallery.
Our exhibition programme for April 2019 to September 2020 remained a key area of activity, seen as important in several ways to the organisation: special exhibitions engage and spotlight maker members, draw new audiences to the gallery and keep CAA in the public eye. However, we were not able to effect our planned
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DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020
exhibition programme in full in the period under review given the severe constraints arising from COVID 19 between March - September 2020. Additionally, our move from Southwark to Marylebone in June 2019 meant a change of location which affected our local outreach and education activities. We have not yet had sufficient time fully to establish collaborative ventures but these are planned for the future. Our exhibition programme (listed in Appendix 1) mounted during the period was nonetheless critically well received, by makers, peers and visitors.
GALLERY RELOCATION
We moved from our Southwark Street location in June 2019 to delightful new venue in Marylebone. This was a key strategic decision for us. The Southwark gallery was a wonderful space but, ultimately, a disappointment in terms of sales and footfall. The Board and Executive Director devoted a considerable amount of time and research discussing our location options. Our decision was to relocate north of the river to a prosperous residential area with independent shops. Our new home benefits from the attractions of Marylebone High Street and excellent transport links although we have necessarily sacrificed space. Once again, however, our plans to maximise the considerable benefits of moving were severely impacted not just by the pandemic but also the need to carry out a refit of our new premises which took several weeks (with concomitant closure) in summer 2019.
LAUNCH OF NEW WEBSITE
The new website was launched in October 2019 enabling us to present the work of our makers in a more effective and professional way. The site includes an e-commerce function (a virtual shop), enabling CAA to sell the work of its makers online for the first time. This new capability is needed to generate more sales and increase financial sustainability of the organisation. The website is essential to CAA’s stability and future self-sufficiency, making us more visible in the marketplace, increasing sales and communicating the dynamism of the organisation. Work will continue on improving its appearance and functions in the future.
We are most grateful to a private charitable fund (who have asked to remain anonymous) for their generous donation which provided the core element of funding.
MEMBERSHIP
As a membership organisation for craft artists across disciplines, CAA is unique in the UK. We currently represent around 250 - 300 designer makers, spanning the entire spectrum of the applied arts. Members range from well-established artist makers to graduates from leading applied art courses.
Our members are craft professionals and are selected by a panel of their peers. Only professional makers working in the applied arts may apply for membership of CAA. This allows artists to exhibit and sell their work through the gallery. Membership is open to makers living and working in the United Kingdom for at least six months of the year.
The panel is currently made up of five professional artist makers, all respected leaders in their fields. Panel members represent their own specialist discipline but are also responsible for contributing to the selection of makers from each field. The current panel was formed in November 2014 and the serving members are:
John Creed – metal Sarah Kay – furniture/wood Alice Kettle – textiles Jacqueline Mina, OBE – jewellery Gabriele Koch – ceramics/glass (joined in spring 2018)
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CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020
FRIENDS OF CAA
By supporting CAA, our Friends also support the arts and crafts of Britain. Membership privileges include preview information, invitations to private views, lectures and events. Friends are regularly notified about gallery events and also receive a discount on purchases of between £200 and £2000 from the gallery.
FUNDRAISING
CAA continued with its ambitions to seek to diversify its sources of non-sales income, with an ongoing focus on raising funds from individuals, trusts, foundations, corporates and other sources but recognise that we need to be far more pro-active and this will be a key area of future activity. We are especially grateful to the Arts Council for its support through the COVID Emergency Fund. Additionally, we were supported very generously indeed by members of our Collectors’ Circle which was launched in 2016 seeking three-year commitments, an important step forward in deepening and making more meaningful our relationships with our supporters. We are extremely grateful to the individuals who donated and we are aiming to relaunch the Circle at a future date when circumstances allow.
Financial review
a. Going concern
The financial statements have been prepared on a going concern basis. The Trustees have reviewed the Company’s forecasts and projections covering a period of 12 months from the date of signing these financial statements. As a result of the Coronavirus pandemic, there is uncertainty over whether the future cashflows will be sufficient to cover the Company’s liabilities that fall due. This indicates that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern.
The Company has taken all necessary steps to protect itself until normal income levels resume, including furloughing staff under the Government Coronavirus Job Retention Scheme, applying for emergency loan funding and the receipt of emergency grant funding. The Trustees have reviewed the projected cashflows of the Company and are satisfied on the basis of those projections that it is appropriate to prepare the financial statements on a going concern basis.
Included within the deficit shown on the statement of financial activities is depreciation on fixed assets amounting to £24,000. These charges have been calculated in line with the Company’s accepted accounting policies.
During the previous year £100,000 was received in respect of an interest-free SITR loan. SITR is an HMRC scheme, where an unsecured, interest-free loan of a maximum of £200,000 is given to a charity in return for income tax relief for the lender. The minimum loan period is three years. CAA has been approved for the scheme by HMRC. This loan has been recognised as a liability on the balance sheet as required by the Charites SORP. The loan was used to develop the charity’s activities, in particular by supporting the gallery move from Southwark to Marylebone in June 2019 and to provide partial funding for the new website.
b. Reserves policy
A review of the reserves policy to determine what level of reserves CAA should prudently maintain took into account:
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CAA's cash flow sensitivity, based on the uncertain nature of CAA's sales and donations, - revenues compared with its fixed costs,
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the amounts needed to pay CAA's creditors in the event of an unplanned winding-up,
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the need for an additional contingency, including allowance for any on-going losses
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DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020
It was agreed that reserves would ideally be at least £150,000, equivalent to some four months of unrestricted expenditure. This target was not achieved in recent years but it remains a principle that a substantial reserve should be built up.
c. Principal funding
CAA runs on earned income, the majority of which is made through sales of the maker members' work. In addition to this, the maker members pay an annual fee, the total income from which represents about 10% of CAA's core running costs. We also seek donations and support (for exhibitions, education and outreach, publications and other activities) from grant making trusts, foundations and individuals. We welcome 'support in kind' where appropriate.
In 2016 we established a Collectors' Circle of individuals who support the gallery through annual donations. In addition, their engagement with CAA in this personal way enables them to be advocates for CAA in the wider world.
Structure, governance and management
a. Constitution
CAA is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 1 March 1967 as last amended on 9 August 1994. It was founded as the Crafts Centre of Great Britain in 1948 and changed its name to Contemporary Applied Arts (CAA) in 1987.
b. Governance of the Board of Trustees
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The management of Contemporary Applied Arts ("CAA") is the responsibility of the Board of Trustees who are elected and co-opted under the terms of the Articles of Association.
The Articles of Association stipulate that the Board of Trustees consist of up to twelve members and that three of the Board members must be maker members. Trustees are eligible to serve for two three-year-terms with reelection at the end of the first. The Chair holds office for two terms and there is a provision for extension if appropriate.
New Trustees are identified and recruited through recommendations, particularly by members of CAA, Friends and fellow arts organisations. Trustees are chosen on the basis of their professional skills, which might be of value to CAA as a business and/or arts charity, and also for their personal interests and activities, which often include engagement within the applied arts. There are currently two maker Trustees, and four non-maker Trustees on the Board. Applications for new trustees are being sought at this time to ensure CAA is operating in line with the governing document.
c. Organisational structure and decision-making
The Board of Trustees, who are the Trustees of the charity registered with the Charity Commission, are responsible for the executive decisions.
d. Management of conflicts and Related parties
The Board of Trustees has adopted a policy which requires its members to declare any conflicts of interest and the agenda for each Board of Trustees meeting includes an item inviting such disclosure.
A Declaration of Conflicts of Interest Form highlights the conflict which might exist where work of a trustee who is also a maker is sold or exhibited by CAA on preferential terms not available to other makers. During the year all sales were on an arm's length basis and no work of a trustee was sold or exhibited on a preferential basis. During the year, the work of maker members who are currently serving as Trustees sold by CAA totalled £4,286
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CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020
(2019: £4,064).
e. Risk management
CAA has identified risks faced by the organisation, completed a risk register and adopted a risk management policy in 2012. The Charities Commission guide for charities on how to approach risk management and Arts Council England's Introduction to Boards of Arts organisations were used as the basis for this. In each case, the risk map spells out the potential impact on the risk, steps taken by CAA to mitigate it and who is responsible for managing the risk. A traffic system then assesses the likelihood and potential impact of each risk before and after control measures are applied. The Board has a policy of reviewing the risk register and policy at least once a year.
Appendix 1 - Exhibition Programme 2019-20
CAA - EXHIBITIONS SUMMARY
Spotlight on Hugh Miller
7 Mar to 6 Apr 2019
Neil Bottle, Thirty Years in the Making – All That Remains
13 Sep to 19 Oct 2019
Present and Collect
21 Nov to 24 Dec 2019
Celebrating Janice Tchalenko
21 Feb to 14 Mar 2020
Zest - a CAA Spring Showcase
19 March 2020 to 18 April 2020
Kate Maestri, Colour in Architecture – Glass by Kate Maestri
11 Sep to 19 Sep 2020
Board of Trustees (as at the date the accounts were approved)
Judith Unwin OBE, Chair
Long term member of the Board; Judith Unwin has served as chair since Autumn 2013. Keenly interested in contemporary craft, she bought her first piece of ceramics from CAA over 25 years ago. She graduated from Oxford in 1976. Now retired, Judith Unwin spent her career in international banking, predominantly in the field of arranging financing for a wide variety of transactions in the emerging markets.
Andrew Galloway
Andrew Galloway is an art and high-end craft collector and a finance expert. After a degree in Classics at Oxford, he joined a merchant bank in the City and then moved to the Far East for a number of years. On his return to London, he was involved in a wide variety of advice to companies on raising capital and the purchase and sale of businesses. In 2003, he set up his own business, West Hill, to carry on advising clients on a more personal basis. Although his focus has been on the financial services sector, he has also been involved in advising some art galleries and businesses on their options for either a sale or raising capital which has brought
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CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020
him into further contact with the Arts. He also set up a sister business more recently to place securities in smaller, growing companies privately with individual HNW investors.
Marya Hoffman Hudson
Marya Hoffman Hudson has held leadership positions in both major organisations and start-ups, covering finance, software implementation, consulting and technology sales. She has a wide range of business experience, including a knowledge of communications, customer service, corporate strategy and business development. She is passionate about the applied arts and holds an MA in Contemporary Design from Sotheby’s Institute of Art (awarded by University of Manchester).
Marlene McKibbin
Jeweller; maker Trustee
Marlene McKibbin is a leading contemporary jeweller. Born in Newry, Co Down, she holds a BA from Ulster College of Art and an M.Des from the Royal College of Art. She has been making and exhibiting jewellery for over four decades and has shown in the UK and internationally. Her work is held in many major collections including the Victoria & Albert Museum London, Aberdeen Art Gallery, National Museum of Scotland, British Council Collection, MIMA Middlesbrough, The Alice and Louis Koch Collection Switzerland, and Fuller Craft Museum Brockton, MA, USA. She is a long-standing CAA maker member and, since 2001, Associate Lecturer at Central Saint Martins.
Simone ten Hompel
Metalsmith; maker Trustee
After training as a blacksmith and undertaking a degree in jewellery and silversmithing at the University of Applied Sciences, Duesseldorf, German-born Simone ten Hompel came to the UK in 1987 to study for a Master's Degree at the Royal College of Art, London. She has been working as a metalsmith in London since 1989. Her work has been exhibited in the UK and internationally, including solo exhibitions at the Scottish Gallery in Edinburgh, Gallery Maarzee in the Netherlands, and other major galleries. Simone was awarded the Jerwood Applied Arts Prize for Metal in 2005. She has been teaching at CASS School of Art, London Metropolitan University as Reader in Metal, Studio Leader of Assorted Jewels, MA by Project and PhD supervisor for a number of years.
Georgina Louise Stewart
Georgina is a senior marketing professional with over 30 years' experience working with professional services firms, both in-house and as a consultant. She joined Sackers LLP as Director of Business Development in 2013, where she has worked since, and is responsible for developing and implementing the firm's business development plan. She has been a magistrate since 2006 and a trustee of the Freshfields Pension Plan since 2017.
Approved by order of the members of the board of Trustees and signed on their behalf by:
Judith Unwin Trustee & Chair Date: 6/29/2021
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DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE PERIOD ENDED 30 SEPTEMBER 2020
The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial period. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on its behalf by:
Judith Unwin Trustee & Chair Date: 6/29/2021
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CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
INDEPENDENT EXAMINER'S REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Independent examiner's report to the Trustees of Contemporary Applied Arts Limited ('the Company')
I report to the charity Trustees on my examination of the accounts of the Company for the period ended 30 September 2020.
Responsibilities and basis of report
As the Trustees of the Company (and 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 the Company's accounts 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, other than those fully detailed below, have come to my attention in connection with the examination giving me reasonable cause to believe that in any material respect:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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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).
Material uncertainty related to going concern: We draw attention to note 1.2 in the financial statements, which indicates that as a result of the Coronavirus pandemic, there is uncertainty over whether future cashflows will be sufficient to cover the Company’s liabilities as they fall due. As stated in note 1.2, these events and conditions indicate that a material uncertainty exists that may cast signficant doubt on the Company’s ability to continue as a going concern.
I confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached.
Disclosure section
Since the 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 can confirm that I am qualified to undertake the examination because I am a member of the ICAEW, which is one of the listed bodies.
This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's
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CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020
Trustees those matters I am required to state to them in an Independent Examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report.
6/29/2021 Signed: Dated:
Duncan Cochrane-Dyet BSc BFP FCA, Independent Examiner
MHA MacIntyre Hudson Chartered Accountants Maidstone United Kingdom
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CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE PERIOD ENDED 30 SEPTEMBER 2020
| Note Income from: Donations and legacies 3 Charitable activities: 4 Membership subscriptions Sales Grants received Investments 5 Total income Expenditure on: Charitable activities: 6 Cost of sales Wages and salaries Gallery running expenses Total expenditure Net expenditure before taxation Net expenditure Transfers between funds 16 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Restricted funds 2020 £ - - - 27,000 - 27,000 - - 30,250 30,250 (3,250) (3,250) (10,000) (13,250) 20,350 (13,250) 7,100 |
Unrestricted funds 2020 £ 47,827 39,713 327,780 75,693 165 491,178 144,580 228,096 185,747 558,423 (67,245) (67,245) 10,000 (57,245) (126,777) (57,245) (184,022) |
Total funds 2020 £ 47,827 39,713 327,780 102,693 165 518,178 144,580 228,096 215,997 588,673 (70,495) (70,495) - (70,495) (106,427) (70,495) (176,922) |
Total funds 2019 £ 12,583 29,773 394,358 15,200 180 452,094 173,409 137,062 224,920 535,391 (83,297) (83,297) - (83,297) (23,130) (83,297) (106,427) |
|---|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the period.
The notes on pages 16 to 34 form part of these financial statements.
The statement of financial activities covers the 18 month period from 1 April 2019 to 30 September 2020.
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CONTEMPORARY APPLIED ARTS LIMITED (A company limited by guarantee) REGISTERED NUMBER: 00899449
BALANCE SHEET AS AT 30 SEPTEMBER 2020
| Note Fixed assets Tangible assets 11 Investments 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year 15 Net liabilities excluding pension asset Total net assets Charity funds Restricted funds 16 Unrestricted funds 16 Total funds |
45,074 45,122 90,196 (151,644) |
30 September 2020 £ 51,398 - 51,398 (61,448) (10,050) (166,872) (176,922) (176,922) 7,100 (184,022) (176,922) |
30,597 86,459 117,056 (185,057) |
31 March 2019 £ 61,570 4 61,574 (68,001) (6,427) (100,000) (106,427) (106,427) 20,350 (126,777) (106,427) |
|---|---|---|---|---|
The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the period in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
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CONTEMPORARY APPLIED ARTS LIMITED (A company limited by guarantee) REGISTERED NUMBER: 00899449
BALANCE SHEET (CONTINUED) AS AT 30 SEPTEMBER 2020
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Judith Unwin OBE Trustee & Chair Date: 6/29/2021
The notes on pages 16 to 34 form part of these financial statements.
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CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
| STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 SEPTEMBER 2020 |
2019 £ 91,236 (12,500) (12,500) - - 78,736 7,723 86,459 |
|
|---|---|---|
| Cash flows from operating activities Net cash used in operating activities (see note 18) Cash flows from investing activities Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Cash inflows from new borrowing Net cash provided by financing activities Change in cash and cash equivalents in the period Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period (see note 19) |
2020 £ (97,887) (13,450) (13,450) 70,000 70,000 (41,337) 86,459 45,122 |
The notes on pages 16 to 34 form part of these financial statements
Page 15
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
1. Accounting policies
1.1 Basis of preparation of financial statements
Contemporary Applied Arts is a Company registered by guarantee in England. The nature of the charity's operations and principal activities are to preserve, promote and advocate for the craftsmanship in the United Kingdom.
The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Contemporary Applied Arts Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. The financial statements prepared are for the 18-month period 1 April 2019 to 30 September 2020, and the comparative figures are for the year ending 31 March 2019. The figures therefore are not entirely comparable.
The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
1.2 Going concern
The financial statements have been prepared on a going concern basis. The Trustees have reviewed the Charity’s forecasts and projections covering a period of 12 months from the date of signing these financial statements. As a result of the coronavirus pandemic there is uncertainty over whether the future cashflows will be sufficient to cover the Charity’s liabilities that fall due. This indicates that a material uncertainty exists that may cast significant doubt on the Charity’s ability to continue as a going concern.
The Charity has taken all necessary steps to protect itself until normal income levels resume, including furloughing staff under the governments Coronavirus Job Retention Scheme, applying for emergency loan funding and the receipt of emergency grant funding. The Trustees have reviewed the projected cashflows of the Charity and are satisfied on the basis of those projections that it is appropriate to prepare the financial statements on a going concern basis.
Page 16
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
1. Accounting policies (continued)
1.3 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustee's report for more for more information about their contribution.
On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Company which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
1.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters.
Charitable activities and Governance costs are costs incurred on the company's charitable operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
Page 17
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
1. Accounting policies (continued)
1.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
1.6 Tangible fixed assets and depreciation
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives.
Depreciation is provided on the following bases:
- Gallery improvements over 20 years - Gallery equipment over 3 years Website - over 5 years Fixtures and fittings - 20% on cost Computer equipment - 33% on cost
1.7 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
1.8 Stocks
The Company holds consignment stock on behalf of individual sellers, however the risks and rewards of ownership remain with the sellers up to the point of sale. Accordingly, consignment stock is not recognised on the balance sheet.
1.9 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.10 Cash at bank and in hand
Cash at bank and 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.
Page 18
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
1. Accounting policies (continued)
1.11 Liabilities and provisions
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
1.12 Financial instruments
The Company 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.
1.13 Pensions
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents the contributions payable by the Company to the fund.
1.14 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
2. Critical accounting estimates and areas of judgement
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are the estimated useful lives of fixed assets.
Page 19
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
3. Income from donations and legacies
| Donations Donations |
Unrestricted funds 2020 £ 47,827 Unrestricted funds 2019 £ 12,583 |
Total funds 2020 £ 47,827 |
|---|---|---|
| Total funds 2019 £ 12,583 |
4. Income from charitable activities
| Membership subscriptions Sale of craftwork Grants received Total 2020 |
Restricted funds 2020 £ - - 27,000 27,000 |
Unrestricted funds 2020 £ 39,713 327,780 75,693 443,186 |
Total funds 2020 £ 39,713 327,780 102,693 |
|---|---|---|---|
| 470,186 |
Amounts were received during the period in respect of the Coronavirus Job Retention Scheme amounting to £50,693, included within unrestricted grants.
Page 20
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
4. Income from charitable activities (continued)
| Membership Subscriptions Sale of craftwork Grants received Total 2019 |
Restricted funds 2019 £ - - 15,200 15,200 |
Unrestricted funds 2019 £ 29,773 394,358 - 424,131 |
Total funds 2019 £ 29,773 394,358 15,200 |
|---|---|---|---|
| 439,331 |
5. Investment income
| Unrestricted funds 2020 £ Bank interest received 165 Unrestricted funds 2019 £ Bank interest received 180 |
Total funds 2020 £ 165 |
|---|---|
| Total funds 2019 £ 180 |
Page 21
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
6. Analysis of expenditure by activities
| Charitable activities Governance Total 2020 Charitable activities Governance |
Activities undertaken directly 2020 £ 571,946 - 571,946 Activities undertaken directly 2019 £ 516,421 - 516,421 |
Support costs 2020 £ 10,447 6,280 16,727 Support costs 2019 £ 12,270 6,700 18,970 |
Total funds 2020 £ 582,393 6,280 |
|---|---|---|---|
| 588,673 | |||
| Total funds 2019 £ 528,691 6,700 |
|||
| 535,391 |
Page 22
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
6. Analysis of expenditure by activities (continued)
Analysis of direct costs
| Wages and salaries Purchases Exhibition expenses Rent Light, heat and phone Depreciation and amortisation Independent examiners remuneration Advertising Insurance Rates and service charges Security Repairs to property and equipment Internet costs Sundry expenses Printing, postage and stationery Professional fees Total 2020 |
Charitable activities 2020 £ 228,096 144,580 54,301 79,705 3,652 23,623 2,833 194 15,851 5,873 2,139 9,075 (5,267) 962 4,751 1,578 571,946 |
Total funds 2020 £ 228,096 144,580 54,301 79,705 3,652 23,623 2,833 194 15,851 5,873 2,139 9,075 (5,267) 962 4,751 1,578 571,946 |
|---|---|---|
Total direct costs attributable to restricted expenditure amounted to £37,350.
Page 23
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
6. Analysis of expenditure by activities (continued)
Analysis of direct costs (continued)
| Wages and salaries Purchases Exhibition expenses Rent Light, heat and phone Depreciation and amortisation Independent examiners remuneration Insurance Rates and service charges Security Repairs to property and equipment Internet costs Sundry expenses Printing, postage and stationery Professional fees |
Charitable activities 2019 £ 137,062 173,409 10,705 72,421 2,090 65,992 7,966 12,711 5,829 1,778 3,137 6,012 5,062 5,886 6,361 516,421 |
Total funds 2019 £ 137,062 173,409 10,705 72,421 2,090 65,992 7,966 12,711 5,829 1,778 3,137 6,012 5,062 5,886 6,361 |
|---|---|---|
| 516,421 |
Total direct costs attributable to restricted expenditure during the previous year amounted to £nil.
Analysis of support costs
| Charitable activities Bookkeeping Total 2020 |
Charitable activities 2020 £ 10,447 - 10,447 |
Governance 2020 £ - 6,280 6,280 |
Total funds 2020 £ 10,447 6,280 |
|---|---|---|---|
| 16,727 |
Total support costs attributable to restricted expenditure amounted to £nil.
Page 24
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
6. Analysis of expenditure by activities (continued)
Analysis of support costs (continued)
| Charitable activities Bookkeeping |
Charitable activities 2019 £ 12,270 - 12,270 |
Governance 2019 £ - 6,700 6,700 |
Total funds 2019 £ 12,270 6,700 |
|---|---|---|---|
| 18,970 |
Total support costs attributable to restricted expenditure during the previous year amounted to £nil.
7. Analysis of depreciation and impairment
| Depreciation Impairment Total 2020 Depreciation Impairment Total 2019 |
Unrestricted funds 2020 £ 23,622 - 23,622 Unrestricted funds 2019 £ 15,388 50,604 65,992 |
Total funds 2020 £ 23,622 - |
|---|---|---|
| 23,622 | ||
| Total funds 2019 £ 15,388 50,604 |
||
| 65,992 |
8. Independent examiner's remuneration
The Independent examiner's remuneration amounts to a fee of £4,500 (2019: £7,966).
Page 25
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
9. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2020 £ 215,915 8,336 3,845 228,096 |
2019 £ 128,311 7,121 1,630 |
|---|---|---|
| 137,062 |
As disclosed on the statement of financial activities, the expenditure for the 2020 period covers 18 months from 1 April 2019 to 30 September 2020.
The average number of persons employed by the Company during the period was as follows:
| 2020 | 2019 | |
|---|---|---|
| No. | No. | |
| Employees | 6 | 8 |
No employee received remuneration amounting to more than £60,000 in either period.
10. Trustees' remuneration and expenses
During the period, no Trustees received any remuneration or other benefits (2019 - £NIL).
During the period ended 30 September 2020, no Trustee expenses have been incurred (2019 - £NIL).
Page 26
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
11. Tangible fixed assets
| Cost or valuation At 1 April 2019 Additions At 30 September 2020 Depreciation At 1 April 2019 Charge for the period At 30 September 2020 Net book value At 30 September 2020 At 31 March 2019 |
Gallery improvem'ts £ 252,054 - 252,054 201,054 15,300 216,354 35,700 51,000 |
Plant and machinery £ 53,128 - 53,128 52,558 427 52,985 143 570 |
Office equipment Computer equipment & website £ £ 68,547 19,700 550 12,900 69,097 32,600 68,547 9,700 275 7,620 68,822 17,320 275 15,280 - 10,000 |
Total £ 393,429 13,450 |
|---|---|---|---|---|
| 406,879 | ||||
| 331,859 23,622 |
||||
| 355,481 | ||||
| 51,398 | ||||
| 61,570 |
Page 27
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
12. Fixed asset investments
| At 1 April 2019 Disposals At 30 September 2020 Net book value At 30 September 2020 At 31 March 2019 |
Investments in subsidiary companies £ 4 (4) - - 4 |
|---|---|
There was one wholly owned subsidiary, Contemporary Applied Arts Trading Limited (Company number 06191939) that was wound up and dissolved during the period. The subsidiary was dormant and incurred no income or expenditure during the period.
13. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income |
30 September 2020 £ 20 24,000 21,054 45,074 |
31 March 2019 £ - - 30,597 |
|---|---|---|
| 30,597 |
Page 28
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
14. Creditors: Amounts falling due within one year
| Other loans Trade creditors Other taxation and social security Other creditors Accruals and deferred income |
30 September 2020 £ 3,128 68,072 25,932 37,472 17,040 151,644 |
31 March 2019 £ - 150,135 5,016 17,381 12,525 |
|---|---|---|
| 185,057 |
15. Creditors: Amounts falling due after more than one year
| 30 | ||
|---|---|---|
| September | 31 March | |
| 2020 | 2019 | |
| £ | £ | |
| Other loans | 166,872 | 100,000 |
During the previous year, the Charity acquired a SITR loan of £100,000 which was used for the deposit and purchase of premium for lease of new premises. As at the period end, the full balance of £100,000 is included within creditors as the loan cannot be called before December 2022.
Other loans include aggregate amounts of £22,048 which fall due after five years and are payable by instalments. Interest rates on these loans are 0% to 2.5%.
A bounce back loan included within other creditors amounting to £50,000 is repayable by instalments over the duration of the loan, with repayments commencing 1 year after the loan was received.
Page 29
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
16. Statement of funds
Statement of funds - current period
| Unrestricted funds Reserves Restricted funds Better Bankside Arts Council Anonymous Craft Potters Charitable Trust Arts Council Cultural Recovery Fund Total of funds |
Balance at 1 April 2019 £ (126,777) 8,750 1,400 10,000 200 - 20,350 (106,427) |
Income £ 491,178 - - - - 27,000 27,000 518,178 |
Expenditure £ (558,423) (5,000) (1,400) - (200) (23,650) (30,250) (588,673) |
Transfers in/out £ 10,000 - - (10,000) - - (10,000) - |
Balance at 30 September 2020 £ (184,022) 3,750 - - - 3,350 7,100 (176,922) |
|---|---|---|---|---|---|
£8,750 Better Bankside grants were received for expenditure relating to outreach workshops.
£1,400 Arts Council grant was received for expenditure on the Home from Home project.
£10,000 Anonymous grant was received for expenditure on the development of the Company's new website. The grant was fully spent during the year and therefore transferred out to unrestricted general reserves.
£200 Craft Potters Charitable Trust donation was received for expenditure towards producing the Home from Home catalogue.
£27,000 Arts Council Cultural Recovery fund was received from the Arts Council to provide financial assistance and help the Charity during the COVID-19 pandemic.
Page 30
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
16. Statement of funds (continued)
Statement of funds - prior period
| Unrestricted funds Reserves Restricted funds Anonymous Better Bankside Arts Council Craft Potters Charitable Trust Total of funds |
Balance at 1 April 2018 £ (28,280) - 3,750 1,400 - 5,150 (23,130) |
Income £ 436,894 10,000 5,000 - 200 15,200 452,094 |
Expenditure £ (535,391) - - - - - (535,391) |
Balance at 31 March 2019 £ (126,777) 10,000 8,750 1,400 200 20,350 (106,427) |
|---|---|---|---|---|
17. Analysis of net assets between funds
Analysis of net assets between funds - current period
| Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Total |
Restricted funds 30 September 2020 Unrestricted funds 30 September 2020 £ £ - 51,398 7,100 83,096 - (151,644) - (166,872) 7,100 (184,022) |
Total funds 30 September 2020 £ 51,398 90,196 (151,644) (166,872) |
|---|---|---|
| (176,922) |
Page 31
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
17. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior period
| Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year Total |
Restricted funds 31 March 2019 £ - - 20,350 - - 20,350 |
Unrestricted funds 31 March 2019 £ 61,570 4 96,706 (185,057) (100,000) (126,777) |
Total funds 31 March 2019 £ 61,570 4 117,056 (185,057) (100,000) (106,427) |
|---|---|---|---|
18. Reconciliation of net movement in funds to net cash flow from operating activities
| Net expenditure for the period (as per Statement of Financial Activities) Adjustments for: Depreciation charges Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash provided by/(used in) operating activities |
30 September 2020 £ (70,495) 23,622 (14,475) (36,539) (97,887) |
31 March 2019 £ (83,297) 65,992 2,065 106,476 91,236 |
|---|---|---|
Page 32
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
19. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
30 September 2020 £ 45,122 45,122 |
31 March 2019 £ 86,459 |
|---|---|---|
| 86,459 |
20. Analysis of changes in net debt
| Cash at bank and in hand Debt due within 1 year Debt due after 1 year |
At 1 April 2019 £ 86,459 - (100,000) (13,541) |
Cash flows £ (41,337) (3,128) (66,872) (111,337) |
At 30 September 2020 £ 45,122 (3,128) (166,872) (124,878) |
|---|---|---|---|
21. Pension commitments
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents the contributions payable by the Company to the fund and amounted to £3,845 (2019 - £1,630). Contributions totalling £397 (2019 - £291) were payable to the fund at the balance sheet date.
Page 33
DocuSign Envelope ID: 1D452E10-9574-4E82-A41F-136541706BCB
CONTEMPORARY APPLIED ARTS LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020
22. Related party transactions
The following craft items made by the Board of Trustees were sold through CAA's gallery during the period:
| Carina Ciscato Simone ten Hompel Marlene McKibbin |
30 September 2020 £ 410 2,000 1,876 4,286 |
31 March 2019 £ 410 2,000 1,654 |
|---|---|---|
| 4,064 |
During the period the Charity received loans from certain Trustees totalling £20,000 (2019 - £nil). The loans are unsecured and interest free. Loans are separately repayable, £15,000 on 31 December 2021 and £5,000 on 31 December 2025. There are no conditions attached to the loans and the Trustees anticipate repayments to be made when the loans mature, unless future cashflow allows for earlier repayments.
During the period the Charity received £3,535 (2019 - £nil) in donations from its Trustees, before gift aid. The donors did not attach any conditions to their gifts which required the Charity to alter the nature of any of the existing activities.
During the period the Charity received £17,395 sales income and £390 membership income from its Trustees.
Page 34