REGISTERED COMPANY NUMBER: 00899449 (England and Wales) REGISTERED CHARITY NUMBER: 235914
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 30 September 2023
for
Contemporary Applied Arts (A Company Limited by Guarantee)
Alexanders, Chartered Accountants 27 High Street Horley Surrey RH6 7BH
Contemporary Applied Arts
Contents of the Financial Statements for the Year Ended 30 September 2023
| Page | |
|---|---|
| Report of the Trustees | 1 to 9 |
| Statement of Trustees' Responsibilities | 10 |
| Independent Examiner's Report | 11 to 12 |
| Statement of Financial Activities | 13 |
| Balance Sheet | 14 to 15 |
| Notes to the Financial Statements | 16 to 25 |
| Detailed Statement of Financial Activities | 26 to 27 |
Contemporary Applied Arts
Report of the Trustees for the Year Ended 30 September 2023
The Trustees present their annual report together with the financial statements of the Company for the period 1 October 2022 to 30 September 2023. 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.
Business review
The period has been one of consolidation and stabilisation following the previous periods which were so adversely affected by the pandemic. We have sought to husband our resources, minimise any cash loss and manage our limited resources as best we can to refocus CAAs activities back to its core objectives. We are grateful to the maker members and volunteers who have donated freely of their time to assist in the plans which were discussed at the previous AGM in November 2022.
Trustee changes
We reported last year on the retirement of our previous Chair and our search for a replacement. We have still not been able to find a suitable candidate and although we have not undertaken another formal search we continue to make informal enquiries and approaches as and when we can.
We are well aware of the need to fill this vacancy with an individual who has the appropriate knowledge of the industry and skills to focus on the fundraising that is needed to put CAA back on the path it should be treading to a more sustainable future. Full details of the trustees who served during the period and a resignation since the year end are set out below in this report.
Financial review
During the period under review, CAA achieved Sales of £271,000 (2022 £248,000) a 9 % increase and our gross margin on sales remained broadly constant at 57% (2022 56%). Our operating expenses were reduced to £194,000 (2022- £210,000) but this still left us with an overall operating loss of £26,000. This was an improvement on the prior period (2022 loss £42,000).
However as disclosed in the previous Trustee report, in April 2023 our SITR lender agreed to write off the debt owed meaning at the end of the accounting period we were able to show a surplus for the period of £98,000 and a reduction in our net deficit to £37,000.
We are pleased also to be able to report that after the end of the period covered by these accounts a further loan of £15,000 has been written off with the agreement of the lender. We are left with only one loan, a government backed COVID “bounce back” loan. We continue to be able to service this debt which is payable in monthly instalments up until 2030. All payments have been made on time.
We have one additional positive item to report. We reached out to some of the generous donors who had supported CAA in its time of need during the pandemic. One of them has agreed to extend further support to us and has agreed to give £50,000 per annum for three years the first instalment of which was paid in February 2024. This gives us more than a lifeline, it enables us to plan for the
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Contemporary Applied Arts
Report of the Trustees for the Year Ended 30 September 2023
longer term and continue with our transformation project without undue concentration on the vagaries of daily sales.
At 30 May 2024 (the most recent date available before finalising this report), our cash balance was approximately £105,000 roughly sufficient to cover 7 months expenses.
Gallery makeover, Exhibitions and other activities
T his year marked the 75[th] anniversary of CAA’s founding and despite our enduring financial resource constraints, we tried to maximise our promotional efforts to remind patrons of both our heritage and continuing relevance. Many of our events took up this anniversary theme and were held within the gallery space at Paddington Street. These events were curated in-house by gallery staff and maker trustees.
Exhibiting makers were very much encouraged to attend in person and evening “private views” were well attended. With limited space in the gallery, private views were aimed primarily at CAA supporters and buyers. All exhibitions and shows were widely promoted through social media. Long-standing supporters were sent physical invitations to events where appropriate.
New Maker Showcase | Nov 2022
A one week event with a chance to see the works of 25 New Maker members from all disciplines
Mallams Auction Thurs | 8th December 2022
A small collection of selected works were offered at Mallams Oxford Modern Art Auction. This was part of a series of events to celebrate our 75[th] anniversary. All the works were generously donated by the makers and Mallams waived their usual fees.
Woodstock Oxfordshire Pop Up | 13-17 December 2022
We opened a pop-up in Woodstock in the run up to Christmas featuring works by makers of all disciplines and at various price points.
12 Days of Craftmas | Dec 2022
A specially curated mix to encourage a bit of seasonal retail therapy
Collect 2023 Call Out | 20 Dec 22
Collect 2023 | 3-5 March 2023
We joined the 19[th] edition of Collect showcasing the works of 10 makers who all contributed to the cost of attendance. Given our financial constraints, we would not have been able to attend without their support. Sales were reasonable but had the benefit of re-introducing CAA to many who had forgotten us as well as to a new audience.
Ceramics + Jewellery | 4-22 April 2023
The first of three extended exhibitions to commemorate CAA’s 75[th] birthday, this one featuring Ceramics and Jewellery.
London Craft Week | 8-14 May 2023
We once again took part in London Craft Week featuring the works of seven makers across seven disciplines.
Glass + Textiles | 30 May – 24 June 2023
The second of the gallery’s commemorative events featuring two more disciplines.
Call Out New Makers | 4th July – 1 September 2023
Outreach events to promote the work of CAA and attract new and emerging talent.
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Contemporary Applied Arts
Report of the Trustees for the Year Ended 30 September 2023
Wood, Metal Paper Showcase | 12 Sept – 7 November 2023
The final exhibition to mark our 75 years highlighting the works of Wood, Metal and Paper craft people.
Marketing achievements and E-Commerce growth
At the end of the 2021-22 year, the board reviewed CAA's online presence and agreed to invest in an upgrade of its digital touchpoints - the website, online shop, newsletter, and social media strategy - with a focus on two objectives:
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Increasing online revenue: last year, the board commissioned a new website using the ArtLogic platform, which provided us with an upgraded gallery website, an advanced E-commerce shop, a fully integrated digital database and a CRM system. The gallery staff completed the content migration around the end of 2022, and the website now features 202 Makers’ profiles, regular blog posts, and thousands of artworks. The website attracts 10,000 visitors each month generating a 5-digit revenue figure from the UK and international markets.
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Growing CAA’s exposure and following: the gallery’s new brand guidelines and marketing strategy were rolled out across the website, newsletter and social media accounts (Facebook, Instagram and Pinterest), creating a consistent brand experience across all CAA digital touch points. The gallery’s monthly online reach has since doubled, with currently over 100,000 users engaging with our content every month.
In 2023-24, we will continue improving the gallery's online presence and expand into new channels, driving brand awareness and further growth in online & offline sales.
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Contemporary Applied Arts
Report of the Trustees for the Year Ended 30 September 2023
OBJECTIVES AND ACTIVITIES
CONSTITUTIONAL AND GOVERNANCE REPORT
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 230 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 applied arts 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. Our mission is to show 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 applied arts in the United Kingdom.
In particular, we aim to:
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.
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 marketplace for craft in the UK and supports our nationallydistributed 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.
MEMBERSHIP
As a membership organisation for craft artists across disciplines, CAA is unique in the UK. We currently represent around 200 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 panel was formed in 2014 with the panel members changing annually. The currently serving members are:
Jane Adam (jewellery) Tanya Gomez (ceramics)
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Contemporary Applied Arts
Report of the Trustees for the Year Ended 30 September 2023
Helen Yardley (textiles) Mathew Pare (wood) Helen Slater-Stokes (glass)
FRIENDS OF CAA
Our Friends’ generosity is an integral part of CAA’s ability to carry its mission - advocating and campaigning for the applied arts, and fostering quality and innovation across our disciplines. From our mentorship initiative connecting emerging and experienced makers to CAA's outreach programme encouraging school children to actively engage with materials, donations help us nurture and promote young makers to build the next generation of applied artists in Britain.
In line with CAA’s 75th anniversary, we reviewed the Friends of CAA programme and updated it to fit the organisation’s changing needs and the role it plays in the art world. The new Friends Scheme offers three tiers of support to choose from - Supporter, Friend and Patron - with an array of new benefits, including a Supporters' Newsletter, access to private sales, and invites to gallery events and openings.
With the planned launch of the new Friends scheme next year, we will phase out the current Friends of CAA scheme that offered members an ongoing discount on gallery purchases in return for a onetime donation.
OUTREACH & EDUCATION
The trustees are conscious that we were unfortunately not in a position to do any outreach or education activities but given the exceptional circumstances we had no alternative but to focus on the priorities of cutting costs and staffing the gallery ourselves.
RADCLIFFE TRUST
We received a grant from The Radcliffe Trust just before the end of the 2022 financial period. The Textile Artist Lara Pane was mentored by CAA member Jennifer Shellard. The commissioned piece was made for the New Makers Exhibition and sold for a four figure sum, setting a new benchmark for Lara.
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 legacy of the Coronavirus pandemic, there remains uncertainty over whether the future cashflows will be sufficient to cover the Company's liabilities that fall due. The trustees have cut expenditures to the greatest extent possible but future revenues may still be insufficient to maintain a viable organisation.
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Contemporary Applied Arts
Report of the Trustees for the Year Ended 30 September 2023
FINANCIAL REVIEW Reserves policy
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,
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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
It was agreed that reserves would ideally be at least £60,000, 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.
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Contemporary Applied Arts
Report of the Trustees for the Year Ended 30 September 2023
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 re-election at the end of the first. The Chair holds office for two terms and there is a provision for extension if appropriate. Judith Unwin retired as Chair in December 2022 after the end of the accounting period. A search for a successor has been undertaken but has so far not been successful.
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.
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 £4,909 (2022: £10,015).
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 of 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.
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Contemporary Applied Arts
Report of the Trustees for the Year Ended 30 September 2023
STRUCTURE, GOVERNANCE AND MANAGEMENT
Board of Trustees (as of the date the accounts were approved, in alphabetical order)
David Eton
David Eton is a Chartered Accountant with more than 30 years of experience in the financial services Industry predominantly working with smaller entrepreneurial businesses. He has been Treasurer since November 2021.
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.
Rt Hon Dame Janet Paraskeva
Janet has extensive experience of regulation and of leading Boards gained during a highly successful career in a range of high-profile national organisations. She was the first Chief Executive of the National Youth Agency and created the European Confederation of Youth Club organisations. She went on to establish and manage the England operation of the National Lottery Charities Board and was Chief Executive of the Law Society from 2000 to 2006. Janet was First Civil Service Commissioner from January 2006 and then Chair of the Appointments Commission for the States of Jersey. She is also Chair of the Board of the Council of Licensed Conveyancers, Chair of Primary Eye Care Services, Chair of the Government Legal Department, Vice Chair of the Video Standards Council and a trustee of Contemporary Applied Arts. Janet was appointed Dame Commander of the Order of the British Empire in 2010. She is a member of the Privy Council.
Helen Yardley Textiles Maker Trustee
Helen Yardley was born in Plymouth, Devon. She studied printed and woven textiles at Manchester where she obtained a first class degree before obtaining her masters at the Royal College of Art.
She has served as a Trustee of the Crafts Council from 2003 to 2007 and is an Honorary Fellow of Design Nation.
She has received notable commissions for British Ambassadors Residences, Moscow and Vienna, London Stock Exchange, Abu Dhabi Stock Exchange, Coutts Bank The Strand, Fidelity Investments Tokyo and London HQ.
Her work is held in the V&A, House of Commons Collection, Crafts Council Collection, Southampton Art Gallery. In addition to the UK she has exhibited in the USA, Japan, Germany, France and Italy.
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Contem Re ort of the Trustees for the Year Ended 30 Se tember 2023 STRUCTURE. GOVERNANCE AND MANAGEME REFERENCE AND ADMINISTRATIVE DETAILS Registered Company numbor 00899449 (England and Wales) Registered Charty number 235914 Reglslarod ofFIco 6 Paddington Street Marylebone London W1U5QG Trustees JR Unwin (resigned 31.12.22} D Eton O HaWon (appointed 13.02.22,' resigned 01.05.241 MP McKibbin RtHon DameJH Paraskeva GL Stewart (resigned 31.12.221 HC Yardley Independent Examiner Alexanders, Chartered Accountants 27 High Street Horley Surrey RH6 7BH Approved by order of the board of trustees on .. by.. and signed on ils b8ha J H Paraskeva- Trustee Page 9
Contemporary Applied Arts
Statement of Trustees' Responsibilities for the Year Ended 30 September 2023
The trustees (who are also the directors of Contemporary Applied Arts for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those 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 in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Independent Examiner's Report to the Trustees of Contemporary Applied Arts
Independent examiner's report to the trustees of Contemporary Applied Arts ('the Company') I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 September 2023.
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.
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Inde endenl Examiner's R onlem ora A lied Arts o the Trustees of Indopendent examin•rf8 Statement- matters of con¢gm Idontlfiod Since your charity's gross income exceeded £250,000 your examiner musl be a mernber of a listed bc)dy. I can confirm that l am qualffied lo undertake the examination because l am a member of the Association of Accounting Technicians, which is one of the listed bodies. I have completed my examinab'on. Material uncertainty related to going concern-. I draw attention to note 1 in the financial slalemenls on going Concern. whtch indicates that, there is uncertainty over whether future cashflows will be sufficient to cover the Company's liabilities as they fall due. Due lo the uncertain outcome of these cashflows, a material uncertainty exists that may cast a significant doubt on the Company'5 ability to continue as a going concern. I confirm that no other matters have come to my attention in connection wf(h the examination giving me reasonable Cause to believe that in any material respect.. accounting records were not kept in respect of the Company as required by Section 386 (rf the 2006 Act., or the accounts do not accord with those records., or 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 Mew which is not a matter considered as part of an independent examination,. and the aOuntS have not been prepared in accordan with the methods and principles of the ststement of Recommended Pracliee for accounting and reporting by charities lapplicab lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republi¢ of Ifeland IFRS 1021}. I confirm that there are no other matters to which your allenlion should be drawn to enable a proper understanding of the accounts to be reached. Michael Lewin The Association of Acwunting Technicians Aexanders, Chartered Aeeountants 27 High Street Horley Surrey RH6 78H Dale.. Page12
Contemporary Applied Arts
Statement of Financial Activities
(Incorporating an Income and Expenditure Account) for the Year Ended 30 September 2023
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Membership subscriptions Sales Grants received Investment income 3 Total EXPENDITURE ON Charitable activities Charitable activities Governance Other Total NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted fund £ 125,626 17,324 271,086 - 2 414,038 306,661 4,562 1,018 312,241 101,797 (139,068) (37,271) |
Restricted funds £ - - - - - - 3,000 - - 3,000 (3,000) 3,000 - |
30.9.23 Total funds £ 125,626 17,324 271,086 - 2 414,038 309,661 4,562 1,018 315,241 98,797 (136,068) (37,271) |
30.9.22 Total funds £ 2,291 22,919 247,928 12,500 160 285,798 317,668 8,883 1,132 327,683 (41,885) (94,183) (136,068) |
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The notes form part of these financial statements
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Contemporary Applied Arts
Balance Sheet
30 September 2023
| CREDITORS Unrestricted funds: FIXED ASSETS Notes Tangible assets 8 CURRENT ASSETS Debtors 9 Cash at bank CREDITORS Amounts falling due within one year 10 NET CURRENT ASSETS/(LIABILITIES) TOTAL ASSETS LESS CURRENT LIABILITIES Amounts falling due after more than one year 11 NET ASSETS/(LIABILITIES) FUNDS 13 General fund Restricted funds: Radcliffe Trust Grant TOTAL FUNDS |
Unrestricted fund £ 5,565 21,491 49,418 70,909 (66,034) 4,875 10,440 (47,711 ) (37,271 ) |
Restricted funds £ - - - - - - - - - |
30.9.23 Total funds £ 5,565 21,491 49,418 70,909 (66,034 ) 4,875 10,440 (47,711 ) (37,271 ) (37,271 ) - (37,271 ) |
30.9.22 Total funds £ 21,537 18,336 45,171 63,507 (168,064 ) (104,557 ) (83,020 ) (53,048 ) (136,068 ) (139,068 ) 3,000 (136,068 ) |
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The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2023.
The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 2023 in accordance with Section 476 of the Companies Act 2006.
The notes form part of these financial statements
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Contemporary Applied Arts
Notes to the Financial Statements for the Year Ended 30 September 2023
1. ACCOUNTING POLICIES
Basis of preparing the 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 year ended 30 September 2023, and the comparative figures are for the year ended 30 September 2022.
The members of the company are the Trustees named on page 9. 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.
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 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 economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
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Contemporary Applied Arts
Notes to the Financial Statements - continued for the Year Ended 30 September 2023
1. ACCOUNTING POLICIES - continued
Income
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.
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 benefit 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
Tangible fixed assets
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:
| Depreciation is provided on the | following bases: |
|---|---|
| Gallery improvements | - over the remaining term of the lease |
| Gallery equipment | - over 3 years |
| Website | - over 5 years |
| Plant and machinery | - 20% on cost |
| Office equipment | - 33% on cost |
Taxation
The charity is exempt from corporation tax on its charitable activities.
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Contemporary Applied Arts
Notes to the Financial Statements - continued for the Year Ended 30 September 2023
1. ACCOUNTING POLICIES - continued
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.
Pension costs and other post-retirement benefits
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.
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 combination of a number of factors including the legacy of the pandemic, there remains uncertainty over whether the future cashflows will be sufficient to cover the Company's liabilities that fall due. The Trustees have cut expenditure to the greatest extent possible but future revenues may still be insufficient to maintain a viable organisation.
CAA was the beneficiary of an interest free SITR loan in 2019. During the pandemic, the maturity of this loan was extended to December 2022. As noted in the Trustees Report the lender agreed to waive repayment and convert this into a Donation. This together with the associated gift aid has made significant progress in reducing the net deficit in the Company's reserves, and the Trustees believe that CAA will have sufficient resources to meet its obligations as they fall due in the next 12 months. However, there does still remain material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.
Interest received
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 funds are deposited.
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.
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Contemporary Applied Arts
Notes to the Financial Statements - continued for the Year Ended 30 September 2023
1. ACCOUNTING POLICIES - continued
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.
Debtors
Trade and other debtors are recognised at the settlement amount after any trade discounts offered.
Prepayments are valued at the amount prepaid net of any trade discounts due.
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.
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 amount 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.
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.
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Contemporary Applied Arts
Notes to the Financial Statements - continued for the Year Ended 30 September 2023
2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
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 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.
3. INVESTMENT INCOME
| INVESTMENT INCOME | ||
|---|---|---|
| 30.9.23 | 30.9.22 | |
| £ | £ | |
| Interest received | 2 | 160 |
| NET INCOME/(EXPENDITURE) | ||
| Net income/(expenditure) is stated after charging/(crediting): | ||
| 30.9.23 | 30.9.22 | |
| £ | £ | |
| Depreciation - owned assets | 15,972 | 15,768 |
4. NET INCOME/(EXPENDITURE)
5. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 30 September 2023 nor for the year ended 30 September 2022.
Trustees' expenses
There were no trustees' expenses paid for the year ended 30 September 2023 nor for the year ended 30 September 2022.
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Contemporary Applied Arts
Notes to the Financial Statements - continued for the Year Ended 30 September 2023
6. STAFF COSTS
The average monthly number of employees during the year was as follows:
| 30.9.23 | 30.9.22 | ||||
|---|---|---|---|---|---|
| Employees | 1 | 1 | |||
| No employees received emoluments in excess of £60,000. | |||||
| 7. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES | ||||
| Unrestricted | Restricted | Total | |||
| fund | funds | funds | |||
| £ | £ | £ | |||
| INCOME AND ENDOWMENTS FROM | |||||
| Donations and legacies | 2,291 | - | 2,291 | ||
| Charitable activities | |||||
| Membership subscriptions | 22,919 | - | 22,919 | ||
| Sales | 247,928 | - | 247,928 | ||
| Grants received | 9,500 | 3,000 | 12,500 | ||
| Investment income | 160 | - | 160 | ||
| Total | 282,798 | 3,000 | 285,798 | ||
| EXPENDITURE ON | |||||
| Charitable activities | |||||
| Charitable activities | 317,668 | - | 317,668 | ||
| Governance | 8,883 | - | 8,883 | ||
| Other | 1,132 | - | 1,132 | ||
| Total | 327,683 | - | 327,683 | ||
| NET INCOME | (44,885) | 3,000 | (41,885) | ||
| Transfers between funds | - | - | - | ||
| Net movement in funds | (44,885) | 3,000 | (41,885) | ||
| RECONCILIATION OF FUNDS | |||||
| Total funds brought forward | (94,183) | - | (94,183) | ||
| TOTAL FUNDS CARRIED | |||||
| FORWARD | (139,068) | 3,000 | (136,068) |
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Contemporary Applied Arts
Notes to the Financial Statements - continued for the Year Ended 30 September 2023
8. TANGIBLE FIXED ASSETS
| Gallery Plant & Office improvements machinery equipment £ £ £ COST At 1 October 2022 51,000 1,425 2,232 Disposls - (1,425) - At 30 September 2023 51,000 - 2,232 DEPRECIATION At 1 October 2022 35,700 1,425 1,115 Eliminated on disposal (1,425) Charge for year 10,200 - 652 At 30 September 2023 45,900 - 1,767 NET BOOK VALUE At 30 September 2023 5,100 - 465 At 30 September 2022 15,300 - 1,117 9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Other debtors Prepayments and accrued income 10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other loans (see note 12) Trade creditors Social security and other taxes Other creditors Accruals and deferred income |
Website £ 25,400 - 25,400 20,280 5,120 25,400 - 5,120 30.9.23 £ 9,738 700 11,053 21,491 30.9.23 £ 5,332 20,580 7,025 2,866 30,231 66,034 |
Totals £ 80,057 (1,425) 78,632 58,520 (1,425) 15,972 73,067 5,565 21,537 30.9.22 £ 6,850 - 11,486 18,336 30.9.22 £ 105,200 27,677 5,899 7,322 21,966 |
Totals £ 80,057 (1,425) |
|
|---|---|---|---|---|
| 78,632 | ||||
| 58,520 (1,425) 15,972 |
||||
| 73,067 | ||||
| 5,565 | ||||
| 21,537 | ||||
| 30.9.22 £ 6,850 - 11,486 |
||||
| 18,336 | ||||
| 168,064 |
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Contemporary Applied Arts
Notes to the Financial Statements - continued for the Year Ended 30 September 2023
| 11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 30.9.23 £ Other loans (see note 12) 47,711 12. LOANS An analysis of the maturity of loans is given below: Amounts falling due within one year on demand: 30.9.23 £ Other loans 5,332 Amounts falling between one and two years: Other loans - 1-2 years 20,467 Amounts falling due between two and five years: Other loans - 2-5 years 17,243 Amounts falling due in more than five years: Repayable by instalments: Other loans more 5yrs instal 10,001 13. MOVEMENT IN FUNDS At Net movement 1.10.22 in funds £ £ Unrestricted funds General fund (139,068 ) 101,797 Restricted funds Radcliffe Trust Grant 3,000 (3,000) TOTAL FUNDS (136,068 ) 98,797 |
30.9.22 £ 53,048 30.9.22 £ 105,200 |
|---|---|
| 5,332 | |
| 37,710 | |
| 10,006 At 30.9.23 £ (37,271) - (37,271) |
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Contemporary Applied Arts
Notes to the Financial Statements - continued for the Year Ended 30 September 2023
13. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Incoming Resources resources expended £ £ Unrestricted funds General fund 414,038 (312,241 ) Restricted funds Radcliffe Trust Grant - (3,000) TOTAL FUNDS 414,038 (315,241 ) Comparatives for movement in funds Net Transfers At movement between 1.10.21 in funds funds Unrestricted funds £ £ £ General fund (94,183 ) (44,885) - Restricted funds Radcliffe Trust Grant - 3,000 - TOTAL FUNDS (94,183 ) (41,885) - Comparative net movement in funds, included in the above are as follows: Incoming resources Resources expended £ £ Unrestricted funds General fund 282,798 (327,683 ) Restricted funds Radcliffe Trust Grant 3,000 - TOTAL FUNDS 285,798 (327,683 ) |
Movement in funds £ 101,797 (3,000) 98,797 At 30.9.22 £ (139,068 ) 3,000 (136,068 ) Movement in funds £ (44,885) 3,000 (41,885) |
|---|---|
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Contemporary Applied Arts
Notes to the Financial Statements - continued for the Year Ended 30 September 2023
14. RELATED PARTY DISCLOSURES
The following craft items made by the Board of Trustees were sold through CAA's gallery during the year / period:
during the year / period: |
||
|---|---|---|
| YE 30 | YE 30 | |
| September | September | |
| 2023 | 2022 | |
| £ | £ | |
| Helen Yardley | 2,276 | 769 |
| Simone ten Hompel | - | 2,175 |
| Marlene McKibbin | 2,633 | 7,071 |
| 4,909 | 10,015 |
The Charity previously received a loan of £15,000 from a Trustee which was repayable on 24th November 2025. Since the year end this loan has been written off with the agreement of the Trustee lender.
During the year the Charity received £NIL (2022 - £1,500) in donations from its Trustees, before gift aid. The donors did not attach any conditions to their gifts which require the Charity to alter the nature of any of the existing activities.
During the year the Charity received £3,681 (2022 - £9,134) sales income and £260 (2022 - £355) membership income from its Trustees.
15. FUNDS
The Radcliffe Trust grant of £3,000 was spent during the year to discover, support and enrich emerging talent; more details of which are detailed in the Trustees’ Report.
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Contemporary Applied Arts
| Detailed Statement of Financial Activities for the Year Ended 30 September 2023 INCOME AND ENDOWMENTS Donations and legacies Donations Investment income Interest received Charitable activities Membership subscriptions Sales Grants received - unrestricted Grants received - restricted Total incoming resources EXPENDITURE Charitable activities Wages Social security Pensions Rates and water Insurance Postage and stationery Sundries Purchases Exhibition expenses Rent Telephone Independent examiners remuneration Repairs to property and equipment Computer & Internet costs PayPal fees Bookkeeping Bank and processing charges Interest payable Carried forward |
30.9.23 £ 125,626 2 17,324 271,086 - - 288,410 414,038 65,478 - - 4,046 7,282 3,675 1,406 115,041 13,891 50,961 2,632 3,200 3,473 6,470 - 9,373 6,761 - 293,689 |
30.9.22 £ 2,291 160 22,919 247,928 9,500 3,000 |
|---|---|---|
| 283,347 | ||
| 285,798 67,034 - 509 4,365 9,536 3,413 1,792 107,296 17,690 49,996 1,792 1,475 3,074 6,833 340 8,697 7,527 133 291,502 |
This page does not form part of the statutory financial statements
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Contemporary Applied Arts
| Contemporary Applied Arts | ||
|---|---|---|
| Detailed Statement of Financial Activities for the Year Ended 30 September 2023 Charitable activities Brought forward Bad debts Depreciation of Gallery Improvements Depreciation of Plant and machinery Depreciation of Office equipment Depreciation of Website Other Bank loan interest Support costs Governance costs Bookkeeping Legal fees Total resources expended Net (expenditure)/income |
30.9.23 £ 293,689 - 10,200 - 652 5,120 309,661 1,018 3,124 1,438 4,562 315,241 98,797 |
30.9.22 £ 291,502 10,397 10,200 - 489 5,080 |
| 317,668 1,132 2,899 5,984 |
||
| 8,883 | ||
| 327,683 | ||
| (41,885) |
This page does not form part of the statutory financial statements
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