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2020-12-31-accounts

Charity Registration No. 236745

Company Registration No. 00816310 (England and Wales)

POLISH SOCIAL AND CULTURAL ASSOCIATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

POLISH SOCIAL AND CULTURAL ASSOCIATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Dr L Bojanowski R Lambourne (Appointed 19 June 2021) R Gawłowski (Appointed 19 June 2021) P Kaczmarski A Kotowicz (Appointed 19 June 2021) J Krupa Dr O Lalko J Mludzinska (Chair) P Pastuszek R Wisniowski A Zakrzewski Secretary A Zakrzewski Charity number 236745 Company number 00816310 Registered office 238-246 King Street London W6 0RF Auditor Bright Grahame Murray Emperor's Gate 114a Cromwell Road Kensington London SW7 4AG Solicitors Bates Wells 10 Queen Street Place London EC4R 1BE

POLISH SOCIAL AND CULTURAL ASSOCIATION

CONTENTS

Page
Trustees' report 1 - 7
Statement of trustees' responsibilities 8
Independent auditor's report 9 - 11
Statement of financial activities 12
Balance sheet 13 - 14
Statement of cash flows 15
Notes to the financial statements 16 - 29

POLISH SOCIAL AND CULTURAL ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees submit their report and the audited financial statements for the year ended 31 December 2020 for the Polish Social and Cultural Association (“POSK” or the “Charitable Company” or the “Charity”). These financial statements are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Reference and administrative details

POSK is a company limited by guarantee (number 816310) and a registered charity (number 236745). It was incorporated on 19 August 1964 and is governed by its Memorandum and Articles as adopted at an Extraordinary General Meeting of Members on 18 May 2019. Each member has provided a guarantee up to a limit of £1 each.

Directors and Trustees:

K Bell (resigned 24 April 2021) Dr L Bojanowski R Lambourne (appointed 19 June 2021) R Gawłowski (appointed 19 June 2021) P Kaczmarski A Kotowicz (appointed 19 June 2021) J. Krupa Dr O. Lalko J Mludzinska (Chair) P Pastuszek R Wisniowski M Wrona (resigned 26 September, 2020) A Zakrzewski

Objectives and activities

The overall objectives of POSK can be summarised as follows:

In pursuance of these aims, POSK has built and maintains a Centre where it promotes and fulfils these aims, largely thanks to the generosity of its members both institutional and individual, but also by raising income from the hire of some office and other space on its premises at commercial rates.

The activities carried out on a regular basis are:

POLISH SOCIAL AND CULTURAL ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

All these activities are carried out with the aim of acting as a focal point within the Polish community for promoting Polish Culture and language both within it as well as to the wider local community.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

In 2020 POSK continued realising its cultural objectives as far as was possible within the constraints of government imposed restrictions due to the coronavirus pandemic.

In the early months before lockdown, two successful theatre productions took place, both aimed at a wide audience including in particular young people of high school age.

Jazz Café POSK continued to be a very popular venue for many fans of various forms of jazz, swing and blues from all over London and beyond, of all ages, backgrounds and cultures, who come to POSK to see a variety of high class acts most weekends right up until lockdown in March, when its activity was paused due to the nature of the club venue..

The POSK Gallery also managed to put on several very interesting exhibitions in those early months of the year. The exhibitions, as ever, brought to the Centre many artists and visitors of culturally diverse backgrounds, including from Lithuania and Croatia and the subjects varied from the Neo-sacral art of Krzysztof Sokolowski to Urban photography of Amir Farhoud.

Later in the year, when restrictions eased a little, POSK was able to organize and host exhibitions commemorating a number of anniversaries of historical events: the 80th anniversary of the Battle of Britain, the 100th anniversary of the Battle of Warsaw in the Polish-Soviet War and the 40th anniversary of the founding of “Solidarity” in Poland. All these were held within the prevailing Covid-safe regulations and attracted a good deal of interest.

The pandemic forced most cultural activity onto the internet and the annual exhibition of the Association of Polish Artists Abroad was held virtually with remarkable success.

POSK Cinema, set up in 2019 was run very successfully by a small group of volunteers working with staff members and with some sponsorship from the Polish Tourist Organisation in London. The tickets are priced very modestly, all films are shown with English subtitles and the project is bringing in a large new audience to POSK. Its success was crowned with the Engholm Prize for Film Society of the Year, awarded by Cinema for All, whose jurors were stunned by its “matchless creativity, dedication to their audiences and the ability to overcome challenges”. POSK Cinema very successfully transferred it activity online, continuing to bring the best of Polish cinema to audiences at home.

In 2020 POSK was able once again to be part of Open House London, with small groups booking visits online and being given guided tours around the building in a Covid-secure manner.

POLISH SOCIAL AND CULTURAL ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

POSK normally provides a venue for many literary evenings such as book launches and discussions, (organised mainly by the Polish Library), as well as celebrations in connection with anniversaries of historical events and other meetings and debates on a wide variety of subjects. In 2020 due to the pandemic and two lockdowns these activities were severely curtailed and a new programme of events – POSK Online – was created. With investment in camera equipment and great enthusiasm from a small team of Directors and staff, POSK Online was able to produce two classical concerts, a jazz concert, a celebration in words and music for Polish Independence Day and a Christmas carol concert with stars of POSK Polish Opera on stage and joining virtually.

Many of POSK’s function rooms, halls and the theatre are hired out on a commercial basis by local schools, choirs, drama, music and opera groups for rehearsals and performances, providing a benefit to the local community as well as much needed revenue for POSK. They include The Arts Educational Schools, W11 Opera, Addison Singers, City Academy and others. In 2020 nearly all of this activity ceased, although ArtsEd were able to use the premises sporadically. The Polish Consulate service on POSK premises for parents applying for children’s’ passports also continued when the regulations allowed and with special health and safety measures in place.

The Trustees consider that the main measures of POSK’s success are a continuing vibrant and diverse programme of events and a high usage of the POSK building in terms of the number of people visiting POSK and attending events. This was obviously severely curtailed during 2020 but the organisation continued to serve all its client groups to the best of its ability in the circumstances of the pandemic, all the while having foremost in mind the health and safety of staff, tenants and visitors.

The Welfare Committee’s activity, while growing in importance, was also circumscribed by the Covid regulations and was reduced primarily to keeping in contact with known vulnerable individuals to offer them support. .

The completed plans for building residential property for rent on property belonging to POSK proved their worth in 2020, when they served as almost the only reliable source of ongoing revenue apart from that from those office tenants who were able to keep up their rent and service charges payments as they fell due.

Other sources of income which were of great help in keeping POSK afloat in 2020 were the Coronavirus Job Retention Scheme, of which it made as much use as was possible while keeping a skeleton staff in place, as well as some grants from London Borough of Hammersmith and Fulham in support of the Jazz Café POSK, which had to close completely for the duration with a consequent loss of revenue.

The Trustees would like to extend their most sincere thanks to all its staff, suppliers, volunteers, tenants and donors who all contributed towards its ability to remain solvent and continue its activities (although clearly on a much diminished scale) during the pandemic

Volunteers

Volunteers are key to POSK’s success. Trustees and members of the Council provide their professional expertise in a voluntary capacity, specifically in terms of day to day running of POSK as well as strategic planning.

In addition to this, POSK has many volunteers who kindly give up their time and without whom POSK would be unable to function. Specifically, POSK’s Gallery is run entirely by volunteers and numerous volunteers assist in putting on POSK events.

It is difficult to estimate the number of hours put in by volunteers however it is clear to the Trustees that without this significant input POSK would find it very difficult to carry out its activities.

POLISH SOCIAL AND CULTURAL ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Structure, Governance and Management

The key management functions of POSK are carried out by Trustees. While a small number of staff manage the day to day affairs of POSK, all strategic decisions are taken by the Trustees who are directly involved in its running.

POSK is governed by two main bodies – the Council of Management (“Council”) and the Directors, known as the Executive Committee.

The Council comprises 51 members of POSK who are elected at General Meetings of POSK plus several members appointed by member organisations. The Chair is elected at POSK’s Annual General Meeting. At the first Council meeting after the Annual General Meeting, an Executive Committee selected by the Chair from among members of the elected Council is presented to the Council. In 2020 the Annual General Meeting was held on Zoom and the voting for candidates for Chair and Council was carried out by post.

The Executive Committee formulates strategy and policy but also performs key management roles and its members are therefore selected for the professional expertise and experience they can bring to the role.

Members of the Executive Committee who acted as the Trustees and Directors of POSK in 2020, are listed earlier in this report.

There are no formal policies and procedures for the training and induction of Trustees. Persons elected as Trustees are usually familiar with POSK and/or charitable organisations in general, and are therefore considered as not needing general induction.

At each Annual General Meeting, under the Articles of Association, one third of the members of the Council retire and, being eligible, may offer themselves for re-election. The Council meets quarterly, but the Executive Committee, which includes chairs of specialist committees, meets monthly to review and take decisions about POSK’s activities.

POSK is closely affiliated with the POSK Foundation, a charity that is registered under charity number 802083 and that has broadly the same charitable objectives as POSK In addition to this, one of the POSK Foundation’s main charitable objects is to support the social, cultural and educational activities undertaken or recommended by POSK .

Financial review

Income generation

Total income for POSK in 2020 was £1,204,117 (2019 - £1,125,825).

POSK’s income is very volatile due to donations and bequests. According to note 3, in 2020, total income from donations and legacies was £471,221 (2019 – £179,939. This included £10,000 from bequests (2019 – £25,195). Once one – off donations of £376,278 are stripped out POSK’s income has declined significantly year on year, which is not unexpected given the pandemic.

During the year POSK received £111,000 from the POSK Foundation (2019 - £60,000) and £273,924 in investment income (2019 - £260,703). The Trustees would like to thank the POSK Foundation for its continuing support. The relatively high level of investment income shows the positive effect of the Trustees’ policy of finding new revenue streams which do not impact materially on POSK’s charitable activities.

Clearly the relative stability of investment income assisted in negating the fact that the vast majority of POSK’s revenue generating activities ceased. The policy of obtaining new revenue streams has led to a relatively stable financial situation insofar as POSK suffered less form the pandemic than if such income did not arise.

POSK gives heartfelt thanks to all its supporters for their continued hard work and generosity in achieving these results.

POLISH SOCIAL AND CULTURAL ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Resources expended

Resources expended on charitable activities and governance costs in 2020 were £915,481 (2019 - £1,080,786). The Trustees are pleased that steps taken when the pandemic and lockdowns hit to renegotiate contracts and curtail expenditure resulted in a significant decrease in costs.

POSK continues to be affected by a high fixed cost base and the Trustees intend to carry on in seeking methods that enable it to minimise its cost base.

A surplus of £301,424 (2019 – £1,236,319 was recorded on the Statement of Financial Activities for the year. The majority of the surplus in 2020 is represented by one – off income of £376,278 as below:

Without these donations and grants POSK would have been significantly lossmaking. The grants of £102,000 and £62,827 were spent on capital assets (Atrium and lift refurbishment respectively) and form part of restricted funds. As the assets they helped fund are depreciated / amortised these restricted funds are reduced accordingly (see note 20)

Bearing in mind that 2020 was a very tough year because of the pandemic the Trustees consider the results for the year to be reasonable, and are hopeful that the continuing policy of keeping costs stable whilst growing investment income will ensure the long-term success of POSK.

Changes in fixed assets

The movements in fixed assets during the year are set out in note 13 to the financial statements.

Reserves Policy and Going Concern

The reserves held by POSK are detailed in note 22 in the financial statements. The purpose of these reserves is to allow it to continue to maintain and develop the POSK building, which is used to house its activities.

POSK has a portfolio of investments that are used to generate income to fund its on-going charitable activities. Additionally, it is the owner of a large building that requires constant expenditure on its fabric. The Trustees are of the opinion that the net assets of POSK are wholly represented by such assets and that this policy will apply until such a time as it is cash-flow neutral and can support itself from on-going cash flows without recourse to one off inflows from asset sales or legacies and donations.

POSK’s reserves amount to £9,142,712 (2018 - £8,841,288) of which £157,525 is restricted (2019 – £nil). Given the future cash flow projections of POSK and resources available to it the Trustees consider the risk of its not being a going concern to be minimal.

Risk management

The Trustees have introduced a formal risk management process to assess business and operational risks. As part of this process a system of internal controls was set up, designed to provide reasonable assurance against material misstatement or loss. These controls include:

POLISH SOCIAL AND CULTURAL ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The principal risks and uncertainties facing POSK are

POSK manages these risks by aiming to make a positive return on investment (such as the development at 3 Ravenscourt Avenue) to help fund its activities and regularly reviewing its expenses to ascertain whether they can be decreased. It also attempts to seek new sources of funding for its activities and both new tenants and hall hirers to diversify its revenue streams.

POSK’s residential property portfolio is providing reliable regular income to supplement POSK’s current income streams and has allowed it to move closer to self-sufficiency, when it will be able to free up any income received from time to time in the form of donations or bequests for use on furthering its social and cultural activities.

With the reduction of financial pressures, POSK should be able to concentrate more on such activities and is already attempting to broaden the scope of these in anticipation. Theatrical productions on a large scale are currently beyond its means, but it hopes to be able to respond to audience demand in this sphere in the future. It will also be better able to support other groups and organisations with limited resources to organise events in the POSK building.

POSK will be looking at building human capital once its financial situation allows. POSK has become a very complex organisation and relying on volunteers to perform key tasks is not viable in the long term.

Plans for future periods

The Trustees are continuing to implement strategies to put POSK on a sound financial footing so that future generations may benefit from its facilities. POSK has been unable to sell the property bequeathed to it in Warsaw due to legal and administrative difficulties, but hopes to do so in the coming year in order to provide funds for investment in human capital, the fabric of the building and its activities.

The development of residential property at 3 Ravenscourt Avenue is providing reliable additional regular income to supplement POSK’s current income streams and has allowed it to move closer to self-sufficiency, when it will be able to free up any income received from time to time in the form of donations or bequests for use on furthering its social and cultural activities

With the reduction of financial pressures, POSK should be able to concentrate more on such activities and is already attempting to broaden the scope of these in anticipation. Theatrical productions on a large scale are currently beyond its means, but it hopes to be able to respond to audience demand in this sphere in the future. It will also be better able to support other groups and organisations with limited resources to organise events in the POSK building.

POLISH SOCIAL AND CULTURAL ASSOCIATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Investments

POSK’s investment policy is to invest in revenue generating assets in order to provide stable, foreseeable cash flows to fund its ongoing activities. The primary aim of this policy is to generate a return that is both a reasonable hedge against inflation and above the Bank of England base rate at the time the investment decision is made. Investment decisions are made by the Trustees and material investment decisions are ratified at meetings of the Council of Management.

During the year to 31 December 2020 POSK has continued to benefit from a high level of rental income and the occupancy of its UK investment property remains at almost 100%. POSK has no intention of selling any UK Investment Property and any revaluation movements will have no effect on future rental streams.

Charity’s Public Benefit

The Trustees have paid due regard to the Charity Commission’s guidance and ensured that all activities throughout the year have been in the interest of public benefit. This is evidenced by the continuing work undertaken to keep the building open to the general public and to ensure that it continues to provide educational and cultural experiences. It also contains and maintains donated Polish artefacts of historic significance for public access.

Trustees’ Declaration

Each of the persons who are members of the Executive Committee at the time when this report is approved has confirmed that:

Auditor

A resolution to appoint Bright Grahame Murray as the Charity’s auditor will be put to the forthcoming Annual General Meeting.

The trustees' r eport was approved by the Board of Trustees.

J Mludzinska (Chair)

Trustee Dated: 28 July 2021

POLISH SOCIAL AND CULTURAL ASSOCIATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees, who are also the directors of Polish Social and Cultural Association for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

POLISH SOCIAL AND CULTURAL ASSOCIATION

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF POLISH SOCIAL AND CULTURAL ASSOCIATION

Opinion

We have audited the financial statements of Polish Social and Cultural Association (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

POLISH SOCIAL AND CULTURAL ASSOCIATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF POLISH SOCIAL AND CULTURAL ASSOCIATION

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

POLISH SOCIAL AND CULTURAL ASSOCIATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF POLISH SOCIAL AND CULTURAL ASSOCIATION

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Cole (Senior Statutory Auditor) for and on behalf of Bright Grahame Murray Chartered Accountants

Statutory Auditor

Emperor's Gate 114a Cromwell Road Kensington London SW7 4AG 4 August 2021

Bright Grahame Murray is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

POLISH SOCIAL AND CULTURAL ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Donations and legacies
3
88,783
382,438
Charitable activities
4
458,972
-
Investments
5
273,924
-
Total income
821,679
382,438
Expenditure on:
Raising funds
6
17,301
-
Charitable activities
7
644,506
224,914
Total resources
expended
661,807
224,914
Net gains/(losses) on
investments
11
(15,972)
-
Gross transfers
between funds
-
-
Net movement in funds
143,900
157,524
Fund balances at 1
January 2020
8,841,288
-
Fund balances at 31
December 2020
8,985,188
157,524		 TotalUnrestricted
funds
2020
2019
£
£
471,221
155,203
458,972
661,615
273,924
260,703
1,204,117
1,077,521
17,301
20,082
869,420
895,399
886,721
915,481
(15,972)
1,191,280
-
(117,001)
301,424
1,236,319
8,841,288
7,604,969
9,142,712
8,841,288		 Restricted
funds
2019
£
24,736
23,568
-
48,304
-
165,305
165,305
-
117,001
-
-
-		 Total
2019
£
179,939
685,183
260,703
1,125,825
20,082
1,060,704
1,080,786
1,191,280
-
1,236,319
7,604,969
8,841,288

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

POLISH SOCIAL AND CULTURAL ASSOCIATION

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
12
Investment properties
14
Investments
15
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
20
Unrestricted funds		 2020
£
£
2,244,835
6,520,000
51,084
8,815,919
284,769
358,588
643,357
(316,564)
326,793
9,142,712
157,524
8,985,188
9,142,712		 2019
£
£
2,045,391
6,520,000
67,058
8,632,449
222,089
408,554
630,643
(421,804)
208,839
8,841,288
-
8,841,288
8,841,288

POLISH SOCIAL AND CULTURAL ASSOCIATION

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2020

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 28 July 2021

J Mludzinska (Chair)

Trustee

Company Registration No. 00816310

POLISH SOCIAL AND CULTURAL ASSOCIATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

2020
Notes
£
Cash flows from operating activities
Cash absorbed by operations
23
Investing activities
Purchase of tangible fixed assets
(274,906)
Purchase of investment property
-
Investment Income
273,924
Net cash used in investing activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2019
£
£
£
(48,984)
(1,130)
(71,295)
(374,377)
260,703
(982)
(184,969)
-
-
(49,966)
(186,099)
408,554
594,653
358,588
408,554

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Polish Social and Cultural Association is a private company limited by guarantee incorporated in England and Wales. The registered office is 238-246 King Street, London, W6 0RF, UK.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. All support costs are allocated to the one charitable activity of Polish social and cultural activities.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings 1% per annum on cost Plant and machinery 10-25% reducing balance Fixtures, fittings & equipment 10-25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Investment properties

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

1.9 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11 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 are subsequently measured at their settlement value.

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/(expenditure) for the period.

1.14 Consolidation

The results of the Polish Trustee Association Limited have not been consolidated on the basis of materiality.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations and gifts
78,783
170,987
Legacies receivable
10,000
-
Grants receivable
-
211,451
88,783
382,438
For the year ended 31 December 2019
155,203
24,736		 Total
2020
£
249,770
10,000
211,451
471,221		 Total
2019
£
154,744
25,195
-
179,939
179,939

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3
Donations and legacies
Donations and gifts
Bequests to POSK
Donations from the POSK Foundation
Other donations and membership subscriptions
Donations to Library
Donations to Cinema
Stowarzyszenie Wspolnota Polska
Polish Trustee Association
Donations for Atrium (see below)
Coronavirus Job Retention Scheme Grant
Ministerstwo Kultury i Dziedzictrwa Narodowego
grant
LBHF – Coronavirus Retail, Hospitality and Leisure
Grant Fund
Donations for Atrium
The POSK Foundation
The Polish Ex-Combatants Association in Great
Britain Trust Fund
Polonia Aid Foundation Trust
The Relief Society for Poles Trust
The Roman and Natalii Guminski Foundation		 10,000
60,000
13,843
-
-
-
4,940
-
-
-
-
88,783
51,000
35,000
10,000
4,000
2,000
102,000		 -
-
1,435
1,625
3,100
62,827
-
102,000
109,340
77,111
25,000
382,438		 (Continued)
10,000
34,015
60,000
60,000
15,278
23,418
1,625
5,220
3,100
-
62,827
15,916
4,940
50,190
102,000
-
109,340
-
77,111
-
25,000
-
471,221
179,939

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4 Charitable activities

Charitable
Facilities, Arts		 Total Total
rental income
Centre,		 2020 2019
Theatre and
Jazz Cafe
£
£		 £ £
Sales within charitable activities 337,237
121,735		 458,972 685,183
Analysis by fund
Unrestricted funds 337,237
121,735		 458,972
For the year ended 31 December 2019
Unrestricted funds 394,611
267,004		 661,615
Restricted funds -
23,568		 23,568
383,531
271,597		 685,183
5 Investments
Unrestricted Unrestricted
funds funds
2020 2019
£ £
Rental income 269,877 252,655
Income from shares and other investments 4,047 8,048
273,924 260,703
6 Raising funds
2020 2019
£ £
Investment management costs 17,301 20,082
17,301 20,082

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 Charitable activities

Staff costs
Depreciation and impairment
Grants payable
Legal and professional
Printing, postage and stationary
Cost of Jazz café events
Other expenses
Bad debts written off
Loss on foreign exchange movements
Speakers and performers' fees and expenses
Share of support costs (see note 8)
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds		 2020
£
352,413
75,462
580
4,840
15,030
4,325
251,505
58,416
4,059
11,723
778,353
82,717
8,350
869,420
644,506
224,914
869,420		 2019
£
389,747
70,844
8,332
16,117
8,508
18,771
357,891
25,226
1,072
59,520
956,028
96,246
8,430
1,060,704
895,399
165,305
1,060,704

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

8 Support costs

Support
costs
Governance
costs
£
£
Staff costs
52,800
-
Printing, postage and
stationary
8,956
-
Other expenses
16,520
-
Irrecoverable VAT
-
-
Accountancy
4,441
-
Audit and accounts
-
8,350
82,717
8,350
Analysed between
Charitable activities
82,717
8,350		 2020
£
52,800
8,956
16,520
-
4,441
8,350
91,067
91,067		 Support
costs
Governance
costs
£
£
56,475
-
13,128
-
22,696
-
363
-
3,584
-
-
8,430
96,246
8,430
96,246
8,430		 2019
£
56,475
13,128
22,696
363
3,584
8,430
104,676
104,676

Governance costs includes payments to the auditors of £ 7,350 ( 2019: £7,350) for audit fees.

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. During the year, the Charity paid a sum of £2,114 (2019: £1,200) in respect of trustee indemnity insurance on behalf of the trustees.

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

10 Employees

Number of employees

The average monthly number of employees during the year was:

House
Library
Part time staff (see below)
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2020
Number
9
6
10
25
2020
£
370,768
26,863
7,582
405,213		 2019
Number
10
7
9
26
2019
£
406,476
31,293
6,262
444,031

POSK employs part time employees in various positions, most notably Front of House. Their hours are minimal and combined are in total equivalent to under one full time annual employee. All other staff noted above are full time employees.

There were no employees whose annual remuneration was £60,000 or more.

11 Net gains/(losses) on investments

Revaluation of investments
Revalution of investment properties (See note 14)		 2020
£
(15,972)
-
(15,972)		 2019
£
4,319
1,186,961
1,191,280

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Tangible fixed assets

Cost
At 1 January 2020
Additions
At 31 December 2020
Depreciation and impairment
At 1 January 2020
Depreciation charged in the year
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019		 Freehold
buildings
£
2,827,848
209,085
3,036,933
979,477
46,306
1,025,783
2,011,150
1,679,342		 Plant and
machinery
£
84,742
-
84,742
65,598
4,787
70,385
14,357
19,163		 Fixtures,
fittings &
equipment
£
742,693
65,821
808,514
564,817
24,369
589,186
219,328
346,886		 Total
£
3,655,283
274,906
3,930,189
1,609,892
75,462
1,685,354
2,244,835
2,045,391

13 Heritage assets

The Charity has been bequeathed, over a number of years, artefacts of cultural and historical significance. These include furniture, paintings, books and sculptures. Due to the unique and specific nature of the artefacts and the context in which they were bequeathed there is no readily ascertainable market value and it has not been sought to attribute one within the financial statements. These assets are therefore included at £nil and it is not practical to provide a five-year summary for the reporting periods prior to 1 January 20 20 .

There were no sales or purchases of heritage assets during the year.

The ownership of the contents of the Central Circulating Library and Polish Library was vested in the Charity by the British Government with effect from 1 April 1967 and 1 August 1967 respectively. The value of these has not been ascertained and has not been brought into the accounts at 31 December 20 20 .

14 Investment property

Investment property
2020
£
Fair value
At 1 January 2020 and 31 December 2020 6,520,000

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

14 Investment property

(Continued)

Movement on investment property - 2020

Market value Additions/ Change in Market value
at 1 January (disposals) value in the at 31
2020 year December
2019
9 Ravenscourt Avenue 1,550,000 - - 1,550,000
Property in Poland (Frascati 4) 970,000 - - 970,000
238A and B King Street 2,150,000 - 2,150,000
3 Ravenscourt Avenue 1,850,000 - - 1,850,000
Total 6,520,000 - - 6,520,000
Movement on investment property - 2019
Market value Additions/ Change in Market value
at 1 January (disposals) value in the at 31
2019 year December
2019
9 Ravenscourt Avenue 1,500,000 - 50,000 1,550,000
Property in Poland (Frascati 4) 912,000 110,620 (52,620)
970,000
238A and B King Street 2,100,000 - 50,000 2,150,000
3 Ravenscourt Avenue 446,661 263,757 1,139,582 1,850,000
Total 4,958,661 374,377 1,186,962 6,520,000

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

14 Investment property

(Continued)

POSK's UK investment properties are valued by the Trustees by comparing the rental yield obtained on these properties to local market yields on similar properties and extrapolating this yield to obtain an estimate of fair value. Furthermore this estimate of fair value is compared to information received from local estate agents in order to ensure that the fair value as calculated is reasonable and adjusting it if necessary.

The Trustees have based the fair value of POSK's investment property in Poland as POSK's share of the estimated proceeds on sale after deducting (1) all estimated costs of sale, obtaining vacant possession and tax and (2) the remuneration of its lawyers in Poland who have dealt with its recovery from the Warsaw authorities, management and subsequent sale amounting to £511,284 (2019: £511,284).

The historic cost of investment properties of £2,343,063 (2019: £2,343,063) comprises of 9 Ravenscourt Avenue at £225,392 (2019: £225,392), 3 Ravenscourt Avenue at £710,418 (2019: £710,418), property held in Poland (Frascati 4) at £900,464 (2019: £900,464) and 238 A/B King Street at £506,789 (2019: £506,789).

The Charity's Investment Property investment portfolio is the key to its long-term financial viability. The Trustees have adopted a policy of investing the Charity's funds into investments that will create additional recurring annual income to support the activities of the Charity. Such investments consist of investment properties and UK equities.

The main risk to the Charity of these investments lies in the uncertainty of the performance of property rental markets.

15 Fixed asset investments

Listed Unlisted Share of Total
investments investments freehold
£ £ £ £
Cost or valuation
At 1 January 2020 60,892 3,166 3,000 67,058
Valuation changes (15,974)
-		 - (15,974)
At 31 December 2020 44,918 3,166 3,000 51,084
Carrying amount
At 31 December 2020 44,918 3,166 3,000 51,084
At 31 December 2019 60,892 3,166 3,000 67,058

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

16
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Equity instruments measured at cost/ fair value less impairment
Carrying amount of financial liabilities
Measured at amortised cost		 2020
£
200,164
51,084
316,564		 2019
£
183,139
67,058
414,125

Debt instruments are made up of trade debtors (£112,231) and other debtors (£143,546). Equity instruments are made up of both listed (£44,918) and other investments (£6,166).

17
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
18
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income (see note 19)		 2020
£
112,231
143,546
28,992
284,769
2020
£
-
13,022
139,568
163,974
316,564		 2019
£
165,076
18,063
38,950
222,089
2019
£
7,679
78,385
149,492
186,248
421,804

19 Deferred Income

Accruals and deferred income of £163,974 (2019: £186,248 ) includes £93,690 (2019: £117,770) in respect of income charged to tenants and hall hirers for the period after 31 December 2020.

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

20 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement Movement in funds Movement in funds
in funds
Incoming
Balance at		 Incoming Resources Balance at
resources
1 January 2020		 resources expended 31 December
2020
£
£		 £ £ £
Building Fund -
-		 102,000 (1,020)
100,980
Asset Purchase Fund -
-		 62,827 (6,283)
56,544
MKiDN Library Fund -
-		 77,111 (77,111)
-
Coronavirus Grants Fund -
-		 134,340 (134,340)
-
Library Fund -
-		 1,625 (1,625)
-
Cinema Fund -
-		 3,100 (3,100)
-
Minor Events Fund -
-		 1,435 (1,435)
-
-
-		 382,438 (224,914)
157,524

The Building Fund represents amounts received in respect of donations towards building works (Atrium). The movement on the fund in the year represents depreciation according to POSK's depreciation policy on these building works .

The Asset Purchase Fund represents amounts received in respect of donations towards replacement of fixed assets (Main Lifts). The movement on the fund in the year represents depreciation according to POSK's depreciation policy on these fixed assets.

The MKiDN Library Fund represents funding from the Polish Ministry of Culture (Ministerstwo Kultury i Dziedzictwa Narodowego) to support library activities. All amounts received were fully spent in the year.

The Coronavirus Grants Fund represents amounts received from HM Government under various initiatives to support businesses during the Coronavirus Pandemic. All amounts received were fully spent in the year

The Library and Cinema funds represent income and expenditure relating to these specific POSK activities.

The Minor Events funds represents income and expenditure for specific POSK concerts or events.

POLISH SOCIAL AND CULTURAL ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

21 Analysis of net assets between funds

Unrestricted
fund
Restricted
fund
£
£
Fund balances at 31 December 2020 are represented by:
Tangible assets
2,087,311
157,524
Investment properties
6,520,000
-
Investments
51,084
-
Current assets/(liabilities)
326,793
-
8,985,188
157,524		 Total
£
2,244,835
6,520,000
51,084
326,793
9,142,712

22 Related party transactions

The POSK Foundation was formed in 1989 to support the charitable objectives of Polish Social and Cultural Association Limited ("POSK") and is a related party to the charity.

During the year, POSK received donation s of £ 111,000 ( 2019: £60,000 ) from the POSK Foundation. AM Zakrzewski and R Wisniowski are Trustees of the POSK Foundation . The administrative costs of the POSK Foundation are borne by POSK.

Mr R. Wisniowski is also a director of Polish Daily Publishers Limited, a company that publishes "Tydzien Polski", a weekly newspaper that POSK advertises in. During the year a total of £ 2,180 (201 9 : £5, 403 ) was paid by POSK to Polish Daily Publishers Limited.

23 Cash generated from operations

23
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investment properties
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Cash absorbed by operations
24
Analysis of changes in net funds
The charity had no debt during the year.		 2020
2019
£
£
301,424
1,236,319
(273,924)
(260,703)
-
(1,186,961)
15,972
(4,319)
75,462
70,844
(62,678)
94,150
(105,240)
49,540
(48,984)
(1,130)