Charity registration number 236745 Company registration number rKJ816310 (England aE)d Wales) POLISH SOCIAL AND CULTURAL ASSOCIATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 POLISH SOCIAL AND CULTURALASSOCIATION LEGALAND ADMINISTRATIVE INFORMATION Trustees J Waida R W Tobiasiewcz E Olbrich M Laskivmcz Zoltanle￿. A BihJziuk App)intsd 9 Octo￿[ 20211 (Appointed 9 October 20211 (Appointed 9 October 20211 IAppointet125 September 2021) (Appointed 9 October 20211 (Appoinled 9 Juty 20221 Secretary JaNsz Waida Charlty number 236745 Company number 00816310 Regl$tered office 238-246 King Street London W8 ORF Audit Bnghl Grahame MLvray Emperorfs Gale 114a Cromwell Ro• Kensingl* London s￿ 4AG Sollcltors Bates Wens 10 Queen Street Place London EC4R 18E POLISH SOCIAL AND CULTURALASSOCIATION CONTENTS Page Trustees, fewt Ststement of trustees, reSpL￿1b1Iffjies Independent audiiorfs report 9-11 Slalement ol financial actMtie5 12 ealan¢e S￿¥1 13 Statement ol Cash IION 14 Notes to the financial slatem•nts 15-27 POLISH SOCIALAND CULTURALASSOCIATION TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORn FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees submti Iheir rep)rt •)d Ihe aLKlited financial stslemeftts for the year ended 31 December 2021 for the Polish Soch71 and CuNural As50ciab"on rPOs￿ or the"Charrtable compan￿ or the"Charty-l. These financial ststéments are also prepared to mèet the requirements for a dire¢Eors' report and accounts for Companies Acl purposes. The financial statements comply wÈth the Clhir￿.es Acl 2011, the Compan￿5 Act 2006, the Memorandum and Articles of As$C￿lation, and AccountirKJ and Reportin9 by Chanbes.. Statement of Recommended Pra¢ti¢e applt¢able lo ¢haiib'es preparing their a¢¢ounts in a¢¢orfance wsth the Financial Repcsrbng Slandafd applicable in the UK aFwJ RepublK of I￿land IFRS 1021 (effective 1 January 20191. Ref•r•n¢e and administrats'v• details POSK (Polish Social and Cultural Associalionl is a Company lirr4ted by guafaniee (number 8163101 and a registered ¢harty {num￿r 2387451. 11 was incorwraled on 19 Augu51 1964 and is govemed by its Mernorandum and Arlicles as adopted at an Extraordinary General Meetr'ng ol Members on 18 May 2019. Ea¢h member has provKSed a guaranlee up to a fimii of£1 ea¢h. Directors and Trustees.. Becla lappoinled 9 Q¢lober 2021. resKdned 9 2022 K 8ell (resigned 24 April 20211 Dr L BojanuNski Iresi9ned 9 October 20211 R Larnboume lappoinled 19 June 2021". reswJned 9 October 20211 R GaNslowski lappoinled 19 June 2021.. reswned g October 2021 P Kaczmarski IresvJned 9 Cktob¢r 20211 A Kolowi¢z lappoinled 19 June 2021., res&nèd 9 October 20211 J. Krupa (resigned 9 October 20211 Dr O Lalko Ir&sign•d 9 O¢lob&r 20211 Dr M Laskiewtrcz (Chair." appointed 25 September 2021) J Mludzinska Ichair.. resigned 25 September 20211 E Olbrich (appointed 9 Qctobgr 20211 P Pasluszek Iresigned 9 O¢td)er 20211 RW Tobiasiemricz lappoinled 9 October 20211 J Wajda lappoinled 9 October 20211 R Wisniowski Ifesigned 9 O¢tober 20211 Azakrzewski Iresigned 9 October 20211 R Zottaniecki lappoinled g October 20211 A 8ildziuk (appointed 9 July 20221. Objectives and activiti The overall objectives of POSK can be summaris•d as follows.. to promote education and ￿arn￿l9 in the re$pectNe histoiies, arts, liieralure$. laNJuages and curture$ of Poland and of the UK lo prornote education. training and leamry amongst Poles in the UK to provide assistance and fatifjknes lor recreation and ￿lSUre. in particular lo Fersong in need by reason of youth. age, infimiity or diSa￿ement, povety or social or econc#nic circumstances In pursuance tsf these aints. POSK has built and maintains 3 Centre vh*re rt and fulfils these aims, largely thanks to the generosty ol its n￿MberS both instrtutional and indivmjual. but also by raising income from the hire of some office and other space on lis Pre￿Se5 at commerc￿1 rates. POLISH SOCIALAND CULTURALASSOCIATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 The a¢tivilies carried out on a regular basis are.. The of apprcwate space and resources to allow the Poli%h Library to fvjrtsh. The Polish brary eollects, maintains and provides access to Pdish bc*)ks and other pubh"eations as well as extensive ai¢hNes of materials relating to Polsh lrfe ¢urture. It njns a ￿ndIng library and reading room as well as the Central Circulating Library serV￿e wh￿b provKJes books tn Polish for Ictal publsc libraries The provisi¢n of appropriate spa¢e and reswr¢es for the reguLar activities of cu￿￿ra1, educational and ofessional organisalions hawng their home al the Centre su¢h a$ lam¢ng othetsl the Tatry Polish Song and Dance GTOUP, Pdish Stage Company in UK. the Polish Children's Theatre 'Syrena'. the C¢nfraternty of Polish kn'$ts who organise ¢￿$S￿al mLtsic concerts, as well a5 the Polish Univtrsity Abroad (Universty of the Third Agel. the Polth Society of Arts & Sciences Abroad and the Association of Polish Engineers in the UK The provision ol officè space at ￿gnIfiCan1Y reduced rates to other Polish organisalions and ¢hanlies, and a150 (again, al significan￿Y reduced rates) the use of the theat￿ and other halls for their cultural events, as well as educational and academic events such as lectures a￿1 conferences. POSK also runs ils ¢)wn Jazz Café. ¢ommunty ¢inema and a Gallery for exhibrtions ol the visual arts. 11 organises producb"on5 of Polish opefa wth Errfjlish suthes and other curtural events op8n lo both Polish and nors-Polish audiences. All these acb"vibes are carried out with the aim of acling as a focal p)int wthin Ihe Pdish ¢ommunty for promoting Polish Culture and language wthin rt as hell as lo the wder l¢xal tomnvJnty. The truglees have pald due regard lo gu￿an¢e bssued by the Charity Commi55ion in deciding wthal aclivllies the charity shouks undertake. Achievements and performance In 2021 POSK COn￿nUed fealisiro its cuAural ots'eclives as far as was p)ssible wthin the conslraints of government imp¢sed restrictions due lo the coronavirus pandemic. In the fir51 months durKw lockdovm. there were several Mline events includiro successful Ihealre produ¢tions, both aimed at a wide audience but including young people of hkah ￿￿t>01 age in parti¢ular, a concert and fv40 films. Subsequently, later in the year when resln'ctions had eased. POSK rewned and hosted events. All these were held within the prevailing Cowd-safe re9Jlalion$ and altraeted a g¢>)J deal ol interest. Jau Café POSK once again proved to be a very p)pular venue for many lans of various fom$ ol jazz. swiNJ and blues from all over London and beyond. of all ages, backgrounds and cuttures, who come lo POSK to sèe e variety of high cla$$ acts after k¢KdO￿ in the f¥)al quarter. tts activty was resUn￿d having been halted as requir•d of club ven￿. The POSK Gallery also managed to pirt on several very Interesting exhibitions in those late months of the year. The exhibitions, as ever, brought lo the Centre many artists and visiloT$ of ¢ullurally diverse ba¢kgrouftds, and the subjects Var￿ such as Halima Na￿cZ & ￿erArt￿t9 and Solidarity in Poland. POSK Cinema, Set up in 2019 was run very succe5sfv1ty by a small group of volunteers wolking vitth staff members The lickels were priced very M￿Sty. all films were shrywn Mryth Er4Jlish subtilles and the proje¢l Is bringing in a large new a￿llence to POSK. Its success was Crowned in 2020 wrth the Engholm Prize for Film Society of the Year, awarded by Cinema for All. whose juroTr were stunned by rts "matehless creativity, dedi¢alion lo their audiences and Ihe abilty to overcome chalberoes.. POSK Cinema very successful transferTed it actvty online. conlinuiro lo bring the best of PoI￿h cinema lo audiences at home, and then opened to live audiences. In 2020 POSK was able once again lo be part of OFen House LoNJtsn. ￿1h small groups booking visib online and teiThJ given guhled tours around the tr¥JiklNw in a Cov*J-secwe manner. POLISH SOCIALAND CULTURALASSOCIATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORD (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 POSK when it rwened once again provided a venue for many lrterary evenNW svch as book launches and discussions. (some organised by the Polish Library). as well as celebrab.ons in connection wrth anniversaries of historical events and other meetings arKI debates on a variety of sul4'e¢ts s￿h as by the Independenl Thinkers s Cir¢le In 2020 due lo the pandemK and two lockd￿n5 these activities were severely curtaiSed and a new programme of event5 - POSK Online was created. Wth investment in camera equipment and great enthusiasm frc#m a small team ol Directors and staff. POSK Online was able to produce virtualty concerts, telebralions and carols," after￿ardS when il r&opened rt was possib￿ once more to 5tsge conventionally concerts. films, plays such as Moralnosc Pani Oulsk*j, chibjren's events such as Wierszowisko and ¢el&brations such as Andrz8jki and New Year'$ Oay. Many of POSK'$ fvn¢tion rc•)ms, halls and the theatre are hired out on a commercial basis by lo¢al s¢hools, ehoirs, drama, music and opera groups for rehearsals and perforn)an¢es. providing a benefft lo the l*xal comrnunty as well as much needed revenue for POSK They include The Arts Educational Schools. W11 Opera, Addison Singers. City A¢ademy and others In 2021 nearty all of this acttvity ceased in the opening months. atthough ArtsEd were ab￿ to use the prenNses sporadKaWy. The Polish Consulate 5ervi¢e on POSK premises for parents appI￿"n9 for child￿n,5. passports also continued when Ihe regulabons all￿d and wrth SFecial heahh and safety measures in pkce. The Trustees consider that the rnain measures of POSK'S success are a contsnuing vibrant and diverse programme of events and a high usage ol the POSK tr¥JihYing in tem￿ of number of people wsiting POSK and attending tvenls. This was cbviousty severety curtaile¥rMnt ("Councifi and the Directors, knovm as the Executfve Committee. The Council curr*nJy compri￿ 41 members of POSK are elected at General Meetings of POSK plus several members appointed by member ¢xganisations. The Chair Is ele¢ted at POSK'$ Annual Gen¢ial Meets'ng. Al the first Council meeb'n9 after the Annual General Meeting, an ExecutNe Committee selected by the Chair frorn among members of the elected Council is presented to the Council In 2021 the AnnLsal General Meeting was hetd on Zoom and the votino for candidates for Ch&r aNJ Coun¢il was carrie(l out by kWJSI. The Execulfve Committee formulates strategy and ￿1¢Y but also perfomis key managemenl roles and Ils members ale therelore se*led for Ihe professional exFertise and experien¢e they can brin9 to Ihe role. Members Of the Exe¢ubve Committee ￿ acted as the Twstees and D1￿clorS of POSK In 2021, are listed earlier in this report. Ther& am no fomial poli¢i•s and wocedures for the training and inducbon of Twstees. Persons elected as Trustees are usually familiar wth F>OSK andlor ChwItab￿ organtsatthis in general and are th&rèfore considered as not needing general induction. Al each Annual General Meeting. under the Articles ol Assttiation, one th￿d of Ihe menrt>ers of the Council relire and rf eligible, may offer Ihernselves for reothtion. The Council meets quarttrty. but the Executive Commlttee. which includes chairs of spe¢iali$t COff#nitiee$, meets n￿nthlY to review and lake decisions al)out POSK'S actNities. POSK Is closety afflliated th• POSK FourKlation, a charty Ihat is registered under clwity numtrAf 802083 and that has broadly the same Charitab￿ obJe¢lwes as POSK In addIt￿n lo thi$. one ol the POSK Foundation'5 main ¢harrtable obi'ects is to support the social. cultural and educalK)nal acbvikn.es undertaken or recommended by POSK. Financial review Income eneralio Total in¢ome lor POSK in 2021 was £1,11X,02612020- £1,204,117). POSK'S income is very volatile due to donatK*ns and tequesls. According lo note 3, In 2021, total in¢ome frm7 d¢nations and lega¢ies was £368.42012020- £471,221. Thls included £1,2CQ from bequest512020- £10.0001. Once one- off donations of £284.726 are stripped out POSK'S irwne has declined signfficanly year on yeaT, whieh is not unexpected given the pandemic. During the year POSK ￿teNed £60.CQO fvom the POSK Foundation 12020 £111.[￿} and £304,957 investment income12020 - £273,294}. The Trustees would like to thank the POSK Foundation for its eontsnuing support. The rtlativtly hKJh level of investment in¢ome the posrtive effect of the Trustees, ￿licY of finding new revenue streams which do not impact fflalerially on POSK'5 ¢hatitable a¢tivrfies. Clearty the relabve stsi¥'lty of In￿tr￿n1 income assi8ted in rrfalinq the facl that the vast malC￿ty of POSK'S revenue generakn.ng a¢tw￿"e$ ceased. The F4)licy of obtaining new revenue streams has led to a relatively Stable finart¢ial situation insolar as POSK suffered less fomi the pandemic than rf such income not arise. POSK gÉves heartrett thank5 to all ts Supporte￿ for their conb.nued hard and ynerosty in achiewng these re$uks. POLISH SOCIALAND CULTURALASSOCIATION TRUSTEES. REPORT IINCLUDING DIRECTORS. REPORD (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Resou nd Resources expended on chanta￿e activilies aThJ wvemance costs in 3021 We￿ £783,254 12020 - £886,721) The Trus1ees are pleased that steps taken the pandemic and lockdo5￿$ hft to renegotiate conlra¢ls and ¢urtoil expendiiure resulted in a swjnfficant decreas8 in costs. POSK continues to be affected by a h￿h fixed cost base and Ihe Tnjstees intend lo carry on in seeking methods that eftab￿ rt to minimise rts eost basè. A su￿lUS of £1.C>83,74712020- £301,424 was recorded on the Statement of Financial Actmlies for the year. The majorty of the $urplu$ in 2021 is represented by gains on inveslments of £760,975. Bearing in mind thal 2021 was a very tough year because of the pandemic the Trustees consKler the results for the year to be reasonable, and are hopebjl that the Contr'nuing polKy of keeiyng costs stabk whilst growing investrrÉnl income wll efisure the long.tern success of POSK. The movements in fixed assets during the year a￿ set oul in note 13 to the financial staltmenls. Se esP The reseNes held by POSK are detsiled in note 22 in the financr41 statements. The purp)se of these reserves is lo allow Il lo conb.nue lo maintain and develop the POSK bU1￿1n9, whi¢h is used to house its activits'es. POSK has a portfolio of in￿lments thal are used lo generate irKome lo fvrKI its owoing charitable acbvikn"es. Addltionally, rt is the ovmer of a large buildi￿ that ￿qUireS ¢onslanl exyndrtuo on its fabric The Trustees are of the opinion that the nel assets of POSK are vtholly represented by such assets and that Ihi5 policy will apply unb'l such a time as it is cash-flow neLrtral and can SUPkYJrt rtself ongoirvj cash Ilows wthout recourse lo one off inflows from asset saks or kgac*s and donalKns. POSK'S reserves amount to £10,226,45912020 - £9,142,712) of which £220,734 is restricted12020- £157,525 l. Given the future cash projections ol POSK and resources availaL4e to il the Trustees consider the rtsk of its not being a going coneem to be minwnal. Risk rnanagement The TNstees have inlr&Jts¢ed a fom)al risk management pr¢rte￿ lo a$sess b￿lnesS and opefational risks. AJ part of this process a system of inlemal cortro15 was set ￿. dmned to ￿Y0v￿ reasonable assurance against material MISState￿nt or loss. These controls inclvde.. An annual budget approved by the C(xJncil". Regular reviews ofthe financial resuts and variances from budget., Delegation of authorty and segregation of dubes". Identrfication and management of n$k$". . An intemal a￿j11 revitiw POLISH SOCIAL AND CULTURAL ASSOCIATION TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORD {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 The principal risks and uncertainties facing POSK are Uncertainties over feceipt ofdonati¢)ns and bequests An increase in propety related expenses, which cannot be recovered from tenants. An in¢rease In costs that are C￿sIde ol POSKS control Isuch as Uth'lth'es costs. bu￿ne$S rates, Workplace PensKsns the Workwy Wapl The loss of material tenants I hall hirers Abilty to attract and relain SUrtab￿ voknntee Ibl It) lel POSK manages these risks by aiming to make a wsitive retum on Investment (such as the developn*nt at 3 Ravens¢ourt Avenue) to help fvnd its act￿rt￿ and reg¢Jlarty revievmg rts expenses to ascertain whether they can be decreased. It also attempts to seek new sour¢es offvndirrfJ for ts actNibes and bolh new tenants and hall htrers lo diversfy its revenue streams. POSK'S residential pvopety portfolio is proMding ￿lIab￿ reg(tlar in¢on* to supplement POSK'S current it)¢ome streams and has alkswed it lo ¢h)ser to seff-sufficiency. bthen it will be able to tree up any income received from lime lo tsme In the form ol donations crf bequests for use on fvrtherirKJ rts social and cultural activities. With the reduction of financial pr•ssures, POSK shoukl bt able lo toncentrale more on such acb"¥ities and is already atternplirsg to broaden the scope of these in anticipation Thealrical prcductsons on a large scale are currently beyond its rneans, bui it hopes lo be abb to reskK)nd lo audien¢e demand in this sphere in the lulure.11 will also be better able lo supwrt otrer grwps and organisth.ons with limited reS￿l¢t$ to owanlse events In thè POSK building. POSK be looking at bijikling human ¢apital once rts Ilnanclèl srtuation alkm. POSK has become a vèry ¢ompl•x txgani5ats.on and felying on volunteers to perforni key tasks is not viable in Ihe bng tern. Plans for future periods The Tmslees are cont'nuing to IMp￿ment strategies to put POSK on a sound financial footin9 SO that fiJtur• generations may benefit from its facilrties. POSK has been unable lo sell the property bequeathed lo ti in Warsaw due to legal and adminislralNe diffi¢U￿"*$. but h¢pes to do 50 In the coming year in order lo provide funds for Invest￿Ent in hurnan caprtal. the fabnc ol the bu1￿1n9 and ils activthes. The development of residentr.al PfOFety al 3 Ravensctsurt Avenue L8 providirrfJ reliable athtsrtional regular In￿Me to supplement POSK'S current income Streams and has allowed it to move ¢lo$er to seif-SLrfficien¢y. wthen il wll te able to free up any income received from titrn lo tsme in the fomi of donations or bequests for use on lurtherir¥J it$ ￿la1 and cultural a¢lwrt With the reduction ol financial p￿$SUre$, POSK shoukl be a￿• lo ¢on¢entrale more on such a¢ts'vitieg and is already attempting to broaden Ihe s¢oFe of these in anticipation. Theath"cal productions on a large scale are currently beytsnd rts means. but il hopes to be ab￿ to respoThJ to audience demand in this sphere in the future. It wll also be better able to support other groLPS and oryanisathons limited resources lo oryanise events In the POSK buikling. POLISH SOCIALAND CULTURAL ASSOCIATION TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORD (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Investments POSK'S inveslmenl polKy is to invest in ¥evenu• generatiny assets in order to provth $tal￿e, foreseeable cash flows to lund rts or0￿ng activities The primary aim ol this policy is to generate a retum that is tKJlh a ￿8$onable hedge against inflation and above the Bank of England base rate at the Ume the invèstment decision is made. Investment decI510ns are rnade by the Trusteès and material investment decisions are ialffied at ￿￿ting$ of the Council of Management. Durin9 the year to 31 December 2021 POSK has ¢¢)nb'nued to benefft from a high level of rentsl income and the oc¢upancy ol rts UK investrnent property remains al almost 100%. POSK has no intents.on of selling any UK Investment Property and any revaluation n￿¥ements will have no effect on fvture rental streams. Charity's Public Benefft The Trustees have paid due regard lo the Charity CLNnmiSsv￿,s guidance and ensured that all activities throughout the year have been in the intere51 of publt¢ benefrt. This is evidenced by the conllnulng wort undertaken 1¢ keep Ihe building open lo the general public and to ènsure that it ¢onlinues to provide educth.onal and cultural experien¢es.11 also Contains and maintsin$ donated Polish artelacts of hi5torK spJnffi¢an¢& for publi a¢¢e$$. Trustees. Deelaratlon Each ol the persons th) are members of the Executivt Ccmmittee al Ihe tim? whgn thi5 report ￿ approved has confimied that lal So far as each memb•r is aware. there is no felevant audit information of which the Charity's auditors are unaware." and Ibl ea¢h rnem￿r, in their capacty as a Trustee. has tsken all the steps that he ought to have taken as a Trustee, In¢lu¢Jing making appropriate enquiries ol his fellow Tru51ees and of the charity'$ auditors for that purpose, in order to make him wware ol any infornation ￿eded by the ¢harity's auditors in ¢onnection with prepariThJ their re￿ aThJ lo e$lablish that the ¢harity's auditors are aware of thal infoimabon. Auditor A resolution lo appoint Bright Giahanx Murray as the Chanty's audltoi put to the fothGoming Annual General Meeting. The tru$lees' report vr4$ approved by Ihe Board of Tru$tees. M Laskiewicz Truslee 12Jo1&52? POLISH SOCIALAND CULTURALASSOCIATION STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2021 The Ifustees, who are also the th"reclors of Polish Social and Cutturdl Assc*ialion for the purpose of company law. ale responsible lor preparing the Twstees. ReFQrt and the financkal statements in accordance with applicabte law and United Kingdom Accounb"ng Standards IUnrte(l ￿"ngdoM GenerallyAtcepted Accounbng Praclicel. Company requires the trustees to prepare financial sLitements for each finar￿la1 year which gwe a true and fair view of the stale of affair5 of the chartty and of the ineoming resources and application of resources, including the in¢ome and expeThJrture. of the charitabk C(￿nY for that yew. In preparing these financial statements. the trustees are required lo-. - sele¢t suitable aceounting poIKies and then appty them consistentty.. - observe the methols and princiF4es ￿ the Charihes S&9P., - make judgements and estimates that are reasonable and yudenL and - prepare the financial slalements on the gtyng ¢or￿rn basts unless it Is inappropnale to presume thal the charity 11 continue in opefalion. The trustees are responsible for keepirg adeql￿te accountirrfJ ￿COrdS that disclose wth reasonable a¢¢ura¢y al any time the financial pos11ion of the Charity arnd enable them lo ensure thal the financial statements comply with the Companies Act 20Cé. They are also re5p)n51ble for saleguarding the assets of the ¢harity and hence for taklng reasonable sl•ps lor Ihe prev•nI￿ and d¢tecbon offra￿1 arKI other wregu1an1￿. ## **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 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and 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 Financial Reporting Standard 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: - give a true and fair view of the state of the charitable company's affairs as at 31 December 2021 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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. ## **Emphasis of matter** We draw attention to the Trustees report included in the financial statements which notes that there are currently 6 trustees including the chair acting as directors of the charity as this contravenes the charity's articles of association which states the chair shall appoint between 6 and 14 directors. Furthermore, we draw attention to the fact the trustees have chosen to omit from their report that the articles state that if the number of Directors falls below the minimum then the Directors may only lawfully act: (i) to safeguard the assets of the Association and the interests of its beneficiaries; or (ii) to co-opt an Elected Council Member under Article 32(6) above; or (iii) to call a meeting of the Council or of the Members; or (iv) to admit a new Member under Article 9 above; but not for any other purpose. ## **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. - 9 - ## **POLISH SOCIAL AND CULTURAL ASSOCIATION** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF POLISH SOCIAL AND CULTURAL ASSOCIATION** ## **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. ## **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: - the information given in the financial statements is inconsistent in any material respect with the trustees' report; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the statement of trustees' responsibilities, 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. ## **Extent to which our procedures are capable of detecting irregularities, including fraud** We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following: - 10 - ## **POLISH SOCIAL AND CULTURAL ASSOCIATION** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF POLISH SOCIAL AND CULTURAL ASSOCIATION** - We obtained an understanding of laws and regulations that affect the Charity, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the tax legislation, Charities Act. - We enquired of the trustees and reviewed trustees' meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the trustees have in place to ensure compliance. - We gained an understanding of and evaluated the controls that the trustees have in place to prevent and detect fraud. We enquired of the members about any incidences of fraud that had taken place during the accounting period. - The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: income recognition, management override, misappropriation of assets. - We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above. - We enquired of the trustees about actual and potential litigation and claims. - We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud. - In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias. Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. ## **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 - 11 - POLISH SOCIALAND CULTURAL ASSOCIATION STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021 Unrestricted Restricted funds funds 2021 2021 Total Unrestricted Restricted fund5 funds 2020 2020 Total 20 2020 Income from: Oonath'ons and legac Charrtable acthib'es Investments 83.694 432.649 304,957 284.726 368.420 432,649 304,9S7 88,783 458.972 273.924 382,438 471,221 458,972 273.924 Total incorne 821.300 264,726 1.1CIS,026 821,679 382,438 1,204,117 EM nditure o Raisiro funds 17.349 17,349 17,301 17,301 charitab￿ activities 544.389 221,516 765,gOS 644,% 224,914 869,420 Total expenditure 561.738 221,518 783.254 881,807 224,914 886,721 Nel gainslllo$s&sl on investments 760,975 7egJ,975 115.9721 115,9721 Nel movement In fundi 1.020,537 63,210 1.083.747 143,900 157,524 301,424 Fund balances at 1 January 2021 8,985.188 157,524 9.142.712 8,841,288 8,841,288 Fund balanee5 at 31 December 2021 10,005.725 220,734 10.226,459 8.985,186 157,524 9,142.712 The statement of ffinancial activitie5 includes all gains and1053es Tects3nised in the year. All in¢orne and expenditure derive from continuing actmtses. The statement of financial actMJes also com￿leS wfth the requirements for an Income and expendilure a¢¢ounl under the Companies Act 20C6. 12- POLISH SOCIAL AND CULTURAL ASSOCIATION BALANCE SHEET AS AT31 DECEMBER 2021 2020 Notes Fixed assets Tangible assets Investment properties Investments 12 15 14 2,437.403 7,270,000 62.058 2,244.835 6,520,CQO 51,084 9.769,481 8,815.919 Currènt a8￿ts Debtors Cash at bank in hand 17 269.478 461,824 284,769 358,588 731,302 643,357 Creditors- amounts falling due within one year 18 1274,3041 1316,5641 Nel cuThent assets 456,998 326,793 T¢tsl assets It￿ current liabikties 10,226.459 9,142.712 Incom• funds Reslri¢led funds Unrestricted lund5 20 220,734 10.(M)5,725 157.524 8,98S.188 10,226,459 9,142,712 The company is entitled to the exeMpl￿n from the audit requirement contained in secb.on 477 of the CoMpan￿S Act 2006, for the year ènded 31 December 2021, alth￿9h an aLth has been ￿ttled out under seclion 144 of the Charrties Act 2011. The directors a¢knovAedge their respon8ibdth'e$ for ¢omptying ￿th the requirements of the Ccrfnpanies Acl 2006 th respect lo ac¢ounting records and the preparation of finan¢ial statements. The member5 have not Tequired the c¢Jmpany to oblain an audit of its financial statements under the fequirements of the Compan￿5 A¢1 2C¥J6, lor the year in questi[￿ in aceordance vAth se¢tion 476. These finan¢lal statements havè been wepa￿d in accordance wrth the promsbns appHc*4e lo companles sublect lo the small companies regime. The financial statements wore apwoved by the Tiustees on M Laskiewicz Tfustee Company registration number (11816310 13- POLISH SOCIALAND CULTURAL ASSOCIATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEhl8ER 2021 2020 Notes Cash flo*s from opernting activities Cash generated fromllabsorbed by) operations 23 75.890 148,9841 Investlng a¢tlvltle$ Purchase of tangible fixed assets Investsment inccrne reeeNed 1277,6141 304. 1274,9CtI 273,924 Nèt cash generated fromllused ill Investfing activities 27.346 19821 Net cash used in financing activities Net increaselldecreasel In cash and ¢ash equivalents 103,236 (49.9661 Cash and cash equlva￿nts al begiMirKJ of year 408,554 Cash and cash equi¥al•nts at end of year 461.824 358,588 14- POLISH SOCIAL AND CULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 A¢¢otsnting policies Charbty Inf0m￿tIon POIL￿h &Kial and Cuttural Associaix)n is a private ccryny limited by guwantee in¢orw)rated in England and Wales. The registered office Tr$ 2W246 lfjng Street London, W6 ORF, U 1.1 Accounting convention The accounts have been P￿path in ac¢ordan¢e th the charivs goveming document, the Companies Act 2006 and 'Aecounting and Rep)rUrwJ by Chants"es.' Stalemenl of Récommended Practice applicable to charth'es preparing their ac¢ounts in a¢¢ordance Mqlh the Financ￿1 Repofts"ng Standard applicable in the UK and Republic of Ireland IFRS 1021. las amended for ae¢ounting perK*Js commencing trom 1 January 20161. The chanty is a Public Benefit Entyi as defined by FRS 102. The financial statements are prepared in sterfirg, ￿lch 15 the frJnctHJnal ¢Lmn¢y of Ihe ¢harity. Monetsry amounts in these financial stalemttnts ¥e roLmded to the neaiesl £. The fina[￿la1 ststemen15 have been prepared undef the hislori¢al ¢ost ¢onvention. Imodified to include the revaluation of freehold properties and to inelude investrnent propert￿$ and certain financial Instrum￿lS al fair valuel. The principal accounb.ng adopted are sel out t¢low. 1.2 Going concern At the time ol app￿fta the financial slalemefits. the trustees have a reasonable expecLilion that the charity has adequate resources lo conts'nue in operat￿nal txisttnet f¢y th• foreseeable fuiure. Thus the trustees continue lo adopt the going concern basts of accounting in preparing the financtal slalements. 1.3 Charitable funds Unrestricted fvnds are available fry use at the discretKJn of the truglees i) fvrtheranee of their charitable otyectives. Restricted funds are sut¥ecl 10 Specific condrtions by donors as lo how they may be used. The purposes and uses of the reslii¢led ar• sèt out in the notes lo the finaneial statements. Endowment fvnds are sub￿￿ lo spe¢th¢ ¢ondibons by donors that the capilal must be maintained by the charity. 1.4 In¢oming re$ourc•s Income is recognised w￿n th• ¢harrty is legal￿ entiJed to il after any perfomunce condrtions have been mel, thè amounts can be ffleasured reliabty, and rt 15 probable that Ai¢rJxe will be recewed. Cash donations are recogn￿￿1 on receipl. Other donations are recognised once the charity has been notified ol the donation. unless performance ¢ondrtions require deferral ol the amount. Income lax recoverable In rektion lo donatsons received under Gift or deeds of covenant recognised al the time of ihe donation. Legaciès are reeognised on receipt or otherwise rf the charity has been notified of an impendir¥J dislribulion, the amount Is kn¢￿n. and re¢eipl is expected. If the amount 15 not known, the lega¢y is treated as a ¢onl'ng•nt asset. 15- POLISH SOCIAL AND CULTURALASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies (Continued) 1.S Resources expended Expenditure is reeconised or￿e there is a legal OT constTUCtwe oblMJation lo transfer e¢onomie benefft to third paty. rt is Probab￿ that a transfer of t¢On￿l¢ bereffts will be required in $etlle￿￿nt, and thé aftThnt of Ihe obligation can be measured reliabty. Expendrtufe is ¢lassffied by a¢lMty The ¢osts of ea¢h a¢ts'vty are made up of the tcAal ol dlretl costs and shared costs, including support costs invofved in undertaking each aclivity. Direct ¢¢sts attributable to a sin9le acb.vity are aloealed directy to that activty. Shared costs which contribLrte to more than one activity and supwt costs which are not attn.bVtab￿ ic) a singl* a¢tivrty are apportioned belmeen those actrvi*es on a basis ¢onsislenl wlh the use ol resource5. Central staff costs are alb¢ated on the ba$1$ of ts.me spent, and depre¢ia*'on Charyes are alb¢ated on the portj'on ofthe asset's use. Expenditu￿ Is re¢ognised ¢n¢e Ihere is a legal OT eonstructwe obtigation lo make a payrnenl to a third paty, il is probable that settlement will be required and the amount ol Ihe c&ligat'on ¢an be rneasured reliably. Expendrture is elassffjied under Ihe followng actNty headings= Costs of raising Comprise the ¢osts of attracting volw)tsry ineome and the costs offtJr*d ralsing. Expendrture on tharikble acts"v￿.es Includes the costs of lh• delNw of its a¢tivths and service5 for ts beneficiaries. Other expenditure represents those items tKIt falling into any other heading. Irreeoverable VAT is charged as a c05t againsl Ihe actNrty for which the expenditure was in¢urred. All support Costs 8re allocat￿ lo the one charitable activty of Poltsh social and cultural aclivits'e5. 1.6 Tangible fixed assets Tangible fixed assets are inilialty measured al cosl and subsequenlty measured al cost or valuab'on, nel of depre¢iatth) and any impainient losses. Depreciation 15 recognised $0 as lo writ• off the CO￿ or valuation ol assets less their rgs*Jual vall￿$ over Ihtsir useful lives on the folliming bases.. Ffeehold buikling$ Plant and machinery Fixtures, fitlings & equip))ent 1% per annum on c051 1￿2$% redu¢ing balan¢e 10-25% reduciThJ balance The gain or loss dri￿Thg on the th'sposal of an asset Is delem)ined as the dffterence between the sale pro¢eed$ and Ihe eaTrying value of the asset, and is rec(4nised in the slalemenl ol finan¢ral a¢livth'85. 1.7 Investhient woperties Investment propety, wh￿h is property hekl k) eam rentals andlof for ¢apital appreeiation, is initially recognised al ¢osl. whi¢h includes the purchase cost and any directly attributable expendrture. Subsequently it is measured at fair value al the repth.ng end dale The surplus or deficit on revaluation 15 recogni5ed in profft or loss. 1.8 Fixed asset inve$tmtnts Fixed assel in¥eslments are In￿"al￿ measured al transaclion prt¢e excluding transaction costs, and are 5ub5equentty measured al fair value at each rewbro date. Changes in faw value are re¢c4Jnised in nel ncomellexpendrtufel for the year. TranSXl￿n ¢osts are expensed as in¢urred. 1.9 Impairment of fixed assets At each reporting end date. the chartty ￿￿e￿5 thè carwng amounts of ts tangib￿ assets to delemiine whether there is any indication that those assets have suffered an i￿alFment k)ss. If any SLKh indication exists, the ￿¢0¥erab￿ ¥Tr)unt of the asset ￿ eStin￿led ￿ c¥der to delemiine the extent of the impaim*nt loss Irf any). 18- POLISH SOCIALAND CULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 A¢¢ounling poli¢ies (Continued) 1.10 Cash and cash equivalents Cash and cash equwalents inclLbJe tash in hand. dèpxits hdd at eal wth t>anks, other short-tem liquid investments with original maturi￿5 of three months or less, and bank overdrafts. Bank overdrafts are shovm wlhin borrLwbings in Current ￿ab11￿.es. 1.11 Financial instruments The cornpany only has financval assets and finan¢01 liabilities of a kind that qualfy as basi¢ finan¢ial instrL¢ments. Basic financial tnslrurTEnts are inilialty reec¥3nised at transactKJn vahje and are subsequen￿Y measured at their setuement V￿Ue. 1.12 Employ*e bènefrts The cost of any unused holhday entitl￿nt is reccqni5ed in the penod In ￿1¢h the ernployee's services are received. Temiination beneffts are recognised immediately as an eKpense then the ¢harty ts demonstrably commttted Its temiftale the employrnnt ol ￿ enwloyee ¢x to pn)vkle terninatson bèneffts. 1.13 Foreign exchange Transaclitsns in ¢unen¢*s other than pounds sterfing are recorded at the raltts ¢f ex¢hange prevailing at the dates of the transaclKns. At each reporting end date. monetary a$sels and liabililies that are denominated in foreign current￿ are retranslated al the rates prevailing on the reporb.ng end dale. Gains and losses arising on translation are in¢luded in net Incomellexpenditurel lor the period. 1.14 Consolidation The results ol the Polish Tntstee Associat￿ Limited have nol been consol*Jated on the basis of malenalty. ritical accounting estimat•¥ and judgtm•nts In the appli¢ation of ihe chanty's accoLtnts"ng policies. the trustees are wuired lo make judgements, estimates and assumpllons about the carrwng amount of assets and liabilib'es that are not readity apparent Irorn other sujrces. The ests"males and a5S0Clated assumptions aTe based on historical experience and other factors that are considered lo be r&levant. A¢tual resuks may differ from these eslimales. The estimates and undertying assumpb.ons are rev*wed on an oThJoirg basis. Revisions lo accounting estimates are reeognised in the period in ￿1£h the estimate is revised where the revision affects only that period, or in the perlod ol Ihe and fijturn periods the revraion affects both current and fijlure period$. 17- POLISH SOCIALAND CULTURALASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Donations and legaeies Unfestricted Restrictrd funds funds Total Total 2021 2021 2021 2020 Donations and grfls Lega¢ies ieceivable Grants receivable 83.694 83,694 154,744 2S.195 211.451 284.726 284,726 83.694 284,726 368,420 471.221 For the year ended 31 December 2020 88,783 382,438 471,221 Donations and gifts Bequests lo POSK Donations from the POSK Foundab'on Other donalions and membership subserptions Donètons lo Library Oonabon$ to Cinema St0warzyszen￿ Wspolnota Polska- Lrf¢ Poltsh TNsleè Association Stowa(zyszeni& Wspolnots Polska-Alrium Donations forAlrium Coronamrus J¢b Relenbon Scheme Grant Ministers￿9 Kumury i Dziedzi¢tswa Nar￿J¢>we90 grant LBHF- Coronavirus Retail. Hoswtality and Leisure Grant Fund 1,200 60,000 19.345 1,200 60.000 19,345 10,OC 60,000 15,278 1,625 3,100 62,827 4,940 693 693 2,4 2,456 71,225 71.225 102,000 109,340 110,130 110.130 77.228 77,228 77,111 28,143 26,143 25,000 83.894 284.720 ,420 471,221 18- POLISH SOCIALAND CULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Charitable activities Chwltabl• F•cNlll••. Arts Tot•l 2021 •ntr•. Ih••tr• •nd Totsi 2020 Sa￿s within chaiitable activit*s 318.771 115,878 432,649 458,972 Analysis by fund Unrestricted fund5 316,771 115.878 432.649 For the yeaT ended 31 December 2020 Unrestrieted funds 337.237 121,735 458,972 383.S31 271,597 458,972 Investments Unrestricted Unrestricted funds nds 2021 2020 Rental income In¢ome from shares and other Inveslments 250.686 54,271 269,877 4,047 304.957 273.924 19- POLISH SOCIALAND CULTURALASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 Charitable aclivitses 2021 2020 Staff costs Depreciation and impainrnnt Grants payable Legal and professional Printing, postage and statior Cost of Jazz cale events Other expenses Bad debts written off Loss on foreign excharvJe movements Speak•rs and perfomtrs, fees and exFénsts 311.448 85,044 3,807 11.025 1,795 2,423 276.508 119,0931 1.494 5.230 352,413 75,482 580 4,840 15,030 4.325 251,505 58.418 4,059 11,723 679.079 778.353 Share of support costs {see note 81 Share of goveman¢& costs (see noie B) 78,976 7,850 82,717 8.350 765,90S 889,420 Anatysis by fund Unre51ricled fur￿5 Reslrieted fvnds $44.389 221.518 644,508 224,914 76S.905 869,420 Raising fund$ 2021 2020 Investment managenxnl costs 17,349 17,301 17.349 17,301 POLISH SOCIAL AND CULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 OECEAIBER 2021 Support costs Support Governance costs costs 2021 Support ¢osts Govemance costs 2020 Staff costs Printing, wstage and ststionary other expenses Irre¢tsverable VAT Ateountan¢y 52,600 52,81Y) 8,9 16,520 15,209 13.5191 2,7 15,209 13.5191 2,796 16,520 4.441 4.441 Audrt and accounts 7,850 7.850 8.350 8.350 78,976 86,826 82,717 8.350 91.067 Anatysed betsyeen Chantable actwths 78,976 7,850 86,826 B2,717 8,350 91,067 Goveman¢e ¢osts In¢ludes payThnts to the auditors of £7.85012020.' £7.3501 for fees. Trust••8 None ol the twsteeg lor any Fernons connected wilh Iheml rnceived any remuneral￿n or benefits from the Charty during the year. Durin9 the year. the Charity paKI a sum of £1.8B812020. £2.1141 in ffjspecl of tru51ee indemnity Insurance on behaK of the Iruslees. 10 Employeos The average monthly nurrber of enwoyees during the year was: 2021 Number 2020 Number House Library Part time staff Isee below) 10 Total 21 25 Employment costs 2021 2020 Wages and salaries Social se¢uiity costs Other pension eo$ts 336,187 23.016 7,129 370.768 26,863 7,582 366,332 405,213 21 POLISH SOCIALAND CULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 10 Employees (Continued) POSK empkiys part time en¥tyes in vam￿5 Fthiti"ons, mc6t r*)tabty Front of House. Their hours are minimal and combined are in total equNalent to under one fijll tsme amual employee. other staff noted above are f￿1 bm8 8mpk)yo*$. There were no employees whose arnual remuneralion was more than £60,0￿. 11 Net gaing1110sse>} on inveslments 2021 2020 RevaluatKin ol investments Revalulion of investment propertses (See note 141 10,975 750,0 15,9721 760.975 115,9721 12 Tanglble fixed assets Pl*tt m•¢hlrwry FlxbJro•. flWn9a 4 •qulpm•nt Totsl twlldlThJ• Cost Al 1 January 2021 Additions 3,036,932 197,697 84,742 833 808,513 79,084 3,930,187 277,814 Al 31 December 2021 3,234,629 85.575 887.597 4,207,801 Depreclatlon and Impalrment At 1 January 2021 Depreciatson charged in th& year 1,025,785 51.404 70.385 3,797 Wa.186 29.841 1,685,3S8 85,042 Al 31 December 2021 1.077.189 74,182 819,027 1.770,398 Carrylng amount At 31 December 2021 2,157,440 11,393 268,570 2,437,403 Al 310e¢ember 2020 2.011.150 14,357 219,328 2,244,835 POLISH SOCIALAND CULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 13 Heritage assets The Charity has been bequeathed, over a number of years. artefacts of cukural and htstO￿al signrf￿ance. These include furniture, paintings, bc￿$ and sculptures. Due to the unpue and spe¢ifc nature of the artefa¢ts and the ¢onleKI in which they were bequeathed there Is no readity asCertaInab￿ market value and has not been sought to atlribute one Mqthin the financial statements These assets are therefore included al £nil and it is nol practical to provide a fve-year summary for the reporting Pfior lo l January 2021. Thefe were no sales or PLKchases of heritage assets durirwj t￿ yw. The ownership of the contents of the Central Circulab'ng Library and Poli8h Lbrary was vested in the Charity by the British Government wth effect from 1 Aptil 1967 aThJ 1 August 1967 respectively. The value of ts)ese has not been ascertained and has ￿ been brought into the a¢counts al 31 De¢èmbttr 2021. 14 Fixed asset inv*stmtnts Llsted Unllsted investhients inv•slments Share of fi••hold Total Co$1 or valuation At 1 January 2021 Valuats'on ¢harYJes 44,919 10,974 3.165 51.084 10,974 At 31 December 2021 55.893 3.185 3.OJO 62,058 Carrying amount Al 31 Decembgr 2021 55.B93 3,165 82,056 Al 31 December 2020 44.919 3,165 51,084 15 Investsnent property 2021 Fair valu• Al 1 January 2021 Net gain$ or bss•s trrfough faw value adjustments 8,520,OtKJ 750,0 Al 31 De¢emb•r 2021 7,270,OL￿1 -23- POLISH SOCIALAND CULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 15 In¥o$bnant property (Continuedl Movement on investment property- 2021 Market value Additionslldis Change in Market value at 1 January )salsl value in the at31 2021 year De¢¥mbei 2021 1.550.000 1.720,000 2,150.000 1,850,OJO O Ravensc¢)Urt Avenue Property in Poland (Frascati 238A and e KirKJ Str*el 3 Ravens¢wrt AvenLbe 1,550.000 970,0(M) 2,150.ofAI 1,850,OLWJ 750,000 Total 6,520.0fy) 750,000 7,270,OJO Movement on inveslmenl propety. 2020 Market value Additionslldis Change in Market value at 1 January posa151 value in the at31 2020 year December 2020 9 RavenxourtAv•nu• Propety in Poland (Frastab. 41 238A and B King Street 3 Ravenscourt Avenue 1,550.000 970.000 2,1SO,000 1,850,OLKI 1,550,000 970,000 2,150,CNJO 1,850.ODO Totsl 6.520,OfyJ 6,520,000 POSK'S UK investment properties are valued by the Trustees by ¢omparing the rental yr¢ld obtained on these propertre5 to kcal rnarkel welds on swrilai properlies and extrapolating thi5 weld to obtain an eslimale of fair value. Furthermore this estimate ol lair value is compared lo infomiation Tecerved trom h)cal estate agents in order lo ensure that the fair value as ¢alculated 15 reasor5able and adiustsng rt rf necessary. The investment property in Poland was sold post year end and hence the Truslees have based the fair value of this propety as POSK'$ share of the pro¢eeds on sale after dedu¢ling111 all eosts of sale. obtaining vacant possession and tax and121 the remuneration of its LawyeTS in Poland have dealt with its recovery from the Warsaw authoritie$, management and sutsequenl sale amounts'ng to £1,105,06812020'. £511,284). The histoit ¢ost of investment prO￿Tts"es of £2.343.063 12020.. £2,343,rA3) ¢ornprises of g Ravenscourt Avenue at £225.39212020." £225,392). 3 RavenseourlAvenue al £710,41812020.. £710.4181, property held in Poland IFfas¢ab 41 al £g)0.46412020 £9￿,464) and 238 AIB ￿ng Street at £506.78912020. £X16,7891. The Charty's Investment Propety investment portlolits ￿ the key to its lorKJ-tem financial viability. The Trustees have adopted a poli¢y of investing the Chariws funds Into investrnents that will ¢reale addfftional recurring annual income lo support tho activil*s of the Charity. Such wwestnRnts consist of investment propertses and UK equths. The main risk to the Chaiity of these investsnenis lies in the uncertainty of the perf0M￿nce of property rental mathels. -24- POLISH SOCIAL AND CULTURALASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 16 Financial instruments 2021 2020 Carrylng amourrt of financial assets Debt instruThents rneasured at amortised cosl Equty instrtjments measured at cosu fair value ￿ iryaim*nt 216,360 62,058 200.184 51,084 Carying amount of financial liabilities Measured at arn￿.$•d cost 274.304 316,564 Debl instruments are made up ol trade debtors {£152,8471 and other debtors1£63,5141. Equty instruments are made up ol both listed1£55,8931 other in¥estments1£6.1661. 17 Debtorg 2021 2020 Amounts falling due v*Tthin one year: Trade debtors Other debtors Prepayrp*nls and accrued inccrfne 152,847 81.876 34.955 112,231 143,S46 2B,992 289.478 284,769 18 Creditors: arnounts fallin9 due within one yeai 2021 2020 Trade ereditors Other ¢reditQry4 Acerual3 and deferred income lsee note 191 117,717 37,623 118,984 13.022 139,588 183,974 274,304 316,564 19 Deferred Income Ac¢ru81s and deferred income of £118.98512020". É163.974 1 irKludes £88,51812020". £93.eghJl in resFe¢l of income charged to tenants and hall hirers lor the Ferh)d after 31 December 2021. -2S- POLISH SOCIAL AND CULTURALASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 20 ￿$tricted funds The Inceffle frjnds of Ihe chaiity I￿ll￿le restiicled fuThts comprisw& the followNJ unexFended balances ol donat￿n8 and grants hekl cfi trust f¢y spe¢rf¢ purp)ses" Movement In funds Movement in funds Incon¥no R•atyJre•i Balan￿ at I I1￿•￿￿All R•8otsrc•aBa¢ancè at 31 2021 BuildirKJ Fund Asset Purchase Fund MItiDN ￿brary Fund Coronavirus Grants FurKI Library Fund Cinema Fund Minor Events Fund 102.000 62,827 77,111 134.340 1,fj25 3,100 1,435 11.020) 16.283 177.111 1134,340 11.625 13.100 11,435 1CQ,980 71,225 11.7321 16.2831 177,2281 (136,2721 170.473 $0.261 77.228 136,272 382.438 1224,914 157,524 284,725 1221,5151 220.734 The Building Fund represents amounts received in re$pe¢t of donations towards buildin9 woths IAth'uml, The ny)vemenl on the fvnd in the year fepresènts depre¢ialion a¢¢tydtng lo POSK'S depre¢iatlon poli¢y on these building WLirks. The Asset Purchase Fund rep￿Sefits amounts re¢eNed in respect of donations toward5 Teplacemenl of fixed assets Imain Lfftsl. The movement on the fund in thè yeaf represents deprec￿tiOn accordkng to POSK'S depreciation policy on these ffixed assets. The MKSDN Library Fur￿ represents funding from the Polish Ministy of Cutture IMinistersfv/o Kuhury I Dzledzic￿a Narodowegol to SUPFQrt I￿)rary activth•$. The Cor¢navirus Grants Fund represents amounts rt¢ewed from HM Government under various initiatives to support businesse5 duriThJ the Coronavwu$ Pandeny. All an￿nts re¢etv•d wefe lully spent in the year 21 Analysis of net awts be￿wn funds Unreslri¢ted fund Restricted hjnd Total Fund balan¢e$ at 31 De¢￿ber 2021 ère repregented ty. Tar¥Jible assets Investment properties Inveslmtnts Current assets1{liabilit￿I 2,216,869 7.270,000 62,058 456,998 220.734 2,437,403 7,270.000 82,058 456.998 10.005.725 220.734 10,228.459 POLISH SOCIALAND CULTURAL ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 22 Related party transactions The POSK Foundab"on was fomRd in 1989 to support the charitab￿ 0￿.eCtIveS of Pollsh Sertial and Cul￿ra[ Assttiats"on Lirnrted I'POSK.) and is a rdated paty to the chanty. Durin9 thè year. POSK received donats'ons of £60.000 12020 £111.0001 from Ihe POSK FouTrdab"on. RW Tobiasiewcz, AM Zakrzewski and R Wisnitmki are Tnjstees of the POSK Foundation. The administralive costs ofthe POSK Foundation a￿ b)me by POSK. Mr R. Wisnlowski, who was a director in the year, was at50 a director of Polish Daity Publishers Limited, company that publishes 'Tydz*n Po15ki . a weekty newspaper that POSK adVe￿Se$ in. During the year a total of £2,75212020". £2.1801 was paKI by POSK to P￿Ish Daity Publishers Lbmrted. 23 Cash generated from operations 2021 2020 Surplus for the year 1.083,747 301,424 Adjvslments for.. Investment Incon￿ recogni￿ in $tslernenl of financ￿ &tivi￿$ Fair value gains and losses on Investmenl prop8rti&s Fair value 9ains and Sosses on tnvèstments Depreciakn'on and impairment ol tangible fixed ass•ts (304,9571 1750,0001 110.9751 85.044 1273,9241 15,972 75,482 Movements in workirrfJ caprtal. Decre3$ellincreasel in deblors ID•¢r•asel in credi(ors 15,291 142.2601 182,6781 1105,2401 Cash generated fromllabsort)ed by) operalions 75.890 148.9841 24 Analysis of changes In nel funds The ¢hartty had n¢ debt during the year. 27-