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2022-09-30-accounts

Wac Arts

Financial Statements for the year to 30 September 2022

Company Number: 1158819 Registered Charity Number: 267043

Wac Arts (A company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS

For the year to

30 September 2022

Wac Arts

Financial Statements For the year to 30 September 2022

Contents:
Wac Arts Administrative Information
Structure, Governance and Management
Trustee Recruitment, Induction and Training
Mission and Activities
Values
Strategic Report
Financial Review
Risk Management
Looking to the Future
Board of Trustees’ Responsibilities
Independent Auditor’s Report to the Members of Wac Arts
Consolidated Statement of Financial Activities
Charity Statement of Financial Activities
Consolidated and Charity Balance Sheets
Consolidated Cash Flow Statement
Notes to the Accounts		 Contents:
Wac Arts Administrative Information
Structure, Governance and Management
Trustee Recruitment, Induction and Training
Mission and Activities
Values
Strategic Report
Financial Review
Risk Management
Looking to the Future
Board of Trustees’ Responsibilities
Independent Auditor’s Report to the Members of Wac Arts
Consolidated Statement of Financial Activities
Charity Statement of Financial Activities
Consolidated and Charity Balance Sheets
Consolidated Cash Flow Statement
Notes to the Accounts
Wac Arts Administrative Information 3
Structure, Governance and Management 4
Trustee Recruitment, Induction and Training 4
Mission and Activities 5
Values 6
Strategic Report 6
Financial Review 8
Risk Management 9
Looking to the Future 9
Board of Trustees’ Responsibilities 10
Independent Auditor’s Report to the Members of Wac Arts 12
Consolidated Statement of Financial Activities 15
Charity Statement of Financial Activities 16
Consolidated and Charity Balance Sheets 17
Consolidated Cash Flow Statement 18
Notes to the Accounts 19

Wac Arts

Consolidated Financial Statements For the year to 30 September 2022

Wac Arts Administrative Information

The Trustees are pleased to present their report together with the financial statements of the charity for the year to 30 September 2022.

Reference and Administrative Details

These are the consolidated accounts for Wac Arts and The Hamden Trust, both companies and charities. In this report we refer to them as (the “Charity”). Consolidated accounts are prepared to reflect the substance of the two charities working together as one over the legal form of two independent charitable companies with trustees in common.

Charity number: Wac Arts: 267043 The Hamden Trust: 1045440
Company number: Wac Arts: 1158819 The Hamden Trust: 03036627
Principal & registered Office: The Old Town Hall
213 Haverstock Hill
London NW3 4QP
Auditors: Knox Cropper LLP
65 Leadenhall Street
London EC3A 2AD
Bankers: Co-operative Bank Plc
Islington Branch
Islington High Street
London N1 9TR

Trustees

The directors of both charitable companies (Wac Arts and the Hamden Trust) are their Trustees for the purpose of charity law and throughout this report are referred to collectively as (the “Trustees”) and (the “Board”). They are also the members of both charities. Trustees and management serving during the period and since the year end:

Chair: Justina Cruickshank Justina Cruickshank
Elected trustees: David Blake (resigned on 1 April 2022)
Dorota Dominiczak
Justina Cruickshank
Margaret Gorman
Leah Hurst
Christine Kinnear
Martin Summersgill
Swagata Ganguly (appointed 1 April 2022)
Nicola Clements (appointed 22 September 2022)
Aradhna Tayal (appointed 22 September 2022)
Chief Executive: Darius Khwaja (resigned 9 March 2023)
Glenn Middleditch (appointed on interim basis 9 March 2023)

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Wac Arts

Consolidated Financial Statements

For the year to 30 September 2022

Structure, Governance and Management

Organisational Structure

The Board sets the strategic direction for the Charity and measures progress against objectives. The Board meets quarterly as does the supporting Finance Committee. Terms of Reference for committees of the Board are approved by the Board.

Governance

Both Wac Arts and The Hamden Trust are companies limited by guarantee each governed by its Memorandum and Articles of Association. They are registered as charities with the Charity Commission. The members of the charities are the Chair and the elected Trustees, of which there were seven serving at the period end.

Management

The Chief Executive (CE) is appointed by the Board to deliver the Charity’s work. The other key role during the year was Chief Operating Officer. The Chief Executive and Chief Operating Officer comprise the Senior Leadership team. This team are supported by Counterculture LLP for strategic financial director-level advice and several key staff namely the Head of Learning and Participation, Head of Administration, Outreach Manager, Finance Manager and Senior Development Manager. All staff recruitment is done by open advertising with interviews conducted by appropriately skilled and experienced panels. Interview panels include Trustees and external industry specialists where appropriate.

Key Management Personnel Remuneration Policy

Wac Arts is committed to ensuring that staff are paid fairly and consistently. The Charity’s pay policy seeks to balance the need to attract and retain suitably experienced individuals to ensure it provides the greatest public benefit in delivering its charitable objectives, with what the Charity can reasonably afford. Pay is positioned relative to other similar organisations.

Remuneration for the CE is set by the Board. Remuneration for all other staff is presented to the Finance Committee in the annual budget and subject to scrutiny, is recommended to the Board for approval. No member of staff is involved in determining his or her own remuneration.

Annual pay awards are not a contractual requirement. They are considered in relation to the organisation’s financial position, performance and sector benchmarking.

Trustee Recruitment, Induction and Training

Recruitment and Election of Trustees

The Board of Trustees periodically reviews the skill sets it includes to identify gaps, if any, in the Board with a view to considering the potential for recruiting new Trustee(s). Advertising schedules look to reach the broadest potential group of interested candidates, with interviews and recommendations being made to the Board by the Chair and Vice Chair, supported by additional panel members as appropriate.

All Trustees are elected as the members and directors (co-terminus) of the Charity. Board members are appointed with the expectation they will serve for at least three years and normally for two terms. In exceptional circumstances, Trustees may serve a maximum of three terms (nine years).

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Wac Arts

Consolidated Financial Statements For the year to 30 September 2022

Trustee Induction & Training

New Trustees undergo an orientation meeting with the Chair and a briefing with the Chief Executive and Chief Operating Officer. They can attend activities and meet a selection of beneficiaries. They are provided with a Board induction pack including copies of the Memorandum and Articles of Association, Committee Terms of Reference and decision-making processes, the organisation structure, the Business Plan and the recent financial performance of the Charity. All Trustees receive training in Safeguarding and Unconscious Bias. Trustees are expected to attend events presenting the Charity’s work.

Related Parties

Wac Arts and Hamden Trust are sister charities. Trustees of Wac Arts are also Trustees of The Hamden Trust. Although The Hamden Trust shares Wac Arts’ passion for supporting groups in society who face barriers to opportunity, its primary role is to conserve and enhance its historic building and encourage educational work to celebrate our heritage.

Mission and Activities

Charitable Objects

Wac Arts’ charitable objects may be summarised as the provision and development of activities which seek to make the arts relevant and available to the public, the provision of activities to improve the lives of people who may be disadvantaged, the provision of support for other organisations, and the promotion of citizenship and community development.

The six-year strategy to 2020-26 sets out the following high-level objectives:

  1. Produce innovative artistic work that expresses the positive voice of contemporary Britain

  2. Connect people to high-quality opportunities and work to reduce persistent inequality in our society

  3. Become a recognised hub for organisations that share our objects, aims and values

  4. Grow the number of annual beneficiaries from hundreds to many thousands

  5. Professionalise every aspect of what we do to deliver inspirational arts activities, locally and nationally

Mission: Empowering Young People to Change their World through the Arts

Wac Arts believes in the infinite power of the arts to unleash the extraordinary potential of young people.

The Charity believes that:

The Charity seeks to:

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Wac Arts

Consolidated Financial Statements

For the year to 30 September 2022

Creating a centre of excellence for the arts for young individuals who most need it.

Wac Arts has worked with generations of young people for over 40 years, empowering them with the life skills the arts can offer. From its base at the Grade 2 listed Old Town Hall in Belsize Park, the Charity delivers programmes for young people who face barriers to opportunity and provides a range of additional activities and services to the community.

Values

The Charity’s values provide a framework for its activities and reflects how it aims to work as an organisation:

Strategic Report

Performance Overview 2021-22

The year to September 2022 saw the Charity continue to build on the achievements made in the previous year. Once again, the Charity’s financial performance far exceeded forecast. With earned income in particular surpassing expectation.

The Charity continued the implementation of its 6-year business plan, which above all aims to increase the level of public benefit the Charity provides. Investment in the organisation’s staff and foundational systems continued to enable the planned growth in numbers of young people participating in the Charity’s Arts Programme.

The impact of the coronavirus pandemic on the Charity greatly reduced. The number of young people benefiting from the Charity’s Arts Programme grew to 1,103 up from 560 in the previous year. The Charity increased its focus on Outreach work, targeting areas of the UK identified by the All-Party Parliamentary Group (APPG) for Left Behind Neighbourhoods.

Overview of Activity

Arts Programme

Face to face activity was delivered throughout the year with the disruption caused by COVID over. The overall number of beneficiaries on the core Arts Programme grew significantly.

Arts Programme participants FY2022 FY2021 FY2020
Participation 603 436 809
Outreach 500 124 185
Total 1,103 560 994

1 Participation

Special Educational Needs Provision

Wac Arts creative activities to support young people who identify as disabled were increased with the addition of a new weekly session “Spark”. The Charity has significant experience of supporting young people with additional needs and recognises how the pandemic impacted disproportionately on this group. Spark was designed

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Wac Arts

Consolidated Financial Statements For the year to 30 September 2022

specifically to support young people with mild to moderate needs. The Charity continued its work to deliver Short Breaks activities for the London Borough of Camden having successfully won a new 3-year contract to provide services for families of children with disabilities. The contract includes an option to be extended to 5 years.

Weekly Classes and Summer Schools

The Charity’s weekly face-to-face classes for young people in dance, music, drama, animation and film production were expanded to accommodate more young people. New classes in Art and Design, Acting for Screen, Songwriting, Ballet at ISTD level were trialled in response to feedback received from young people.

Youth Voice

The Youth Voice programme, a pilot project to improve how the voices of young people on the Arts Programme contribute to the Governance of the Charity, culminated in the creation of two new trustee roles for young people to join the Charity’s Board.

2 Outreach

The Charity invested significantly in its capacity to deliver Outreach at new scale not least through the addition of a permanent full-time Outreach Manager. Outreach delivery exceeded forecast reaching 500 young people against a target of 400. Of note, 92% of young people were new to the Charity.

Activities were delivered in Primary and Secondary schools, 7 of which had SEND provisions, and in community-based youth club organisations. The Charity worked in Camden, Brent, Haringey, Hammersmith & Fulham and City of Westminster.

3 Wac Arts’ Building

The Charity has continued to attract tenants from the creative sector organisations and charities with missions aligned to Wac Arts. To this end, Brian Timoney Actors Studio, artist Alla Rubitel and video editor Yann Heckmann were all welcomed to the building as new partners.

The Charity made progress in broadening its space hire clients to add film and television production companies to its existing list with productions destined for the BBC, Channel 4 and Apple TV+ hiring space.

Key Achievements

Despite the various challenges faced by the Charity due to the residual effects of COVID-19, staff shortages, the Russian invasion of Ukraine and cost-of-living crisis, Wac Arts successfully continued its plans to improve the quality and scale of its public offer.

Notable Successes

  1. Growing the number of young people on the Arts Programme and especially those new to the Charity

  2. Continuing to improve the Charity’s finances by increasing earned income and making a surplus for three consecutive years

  3. Recruiting new trustees to ensure the composition of the Board better reflects the Charity’s beneficiaries. 43% of trustees are from global majority backgrounds

  4. Reviewing the governance of the Charity with BDB Pitmans LLP charity practice

  5. Securing a year new contract to deliver Short Breaks services for Camden council (c£2m revenue over 5 years)

  6. Further improving pay and conditions for all staff with median pay increasing

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Wac Arts

Consolidated Financial Statements

For the year to 30 September 2022

Development

The Charity continues to raise funds from a wide variety of trusts, foundations, statutory bodies, corporations, and individuals. Our thanks to all those who have chosen to support us, and been advocates for the youth, arts and cultural sectors, including; Camden Council, City Bridge Trust, Foyle Foundation, Jack Petchey Foundation, John Lyons Charity, London Youth, Taurus Foundation, The Childhood Trust, The Greater London Authority, The Hampstead Wells and Campden Trust, The Mercers’ Company, Tuixen Foundation, Young Camden Foundation and all those who prefer to give anonymously.

Key Development Achievements

  1. Working with London Youth to achieve the Gold Quality Mark accreditation and receiving a grant award of £7,000.

  2. Receiving continued core support from the John Lyons Charity, whilst also taking part in their new Cultural Capital funding scheme, supporting our London-based Outreach.

  3. Achieving our Champions for Children & Big Give 2022 matched funding campaign target of £10,000, thanks to the generosity of our individual supporters and The Childhood Trust

  4. Undertaking vital lift refurbishments support by a Capital grant from the City Bridge Trust.

Fundraising Regulation

The Charity complies with the Fundraising Regulator’s Code of Fundraising Practice and with Charity Commission Guidance. The Charity has robust policies in place regarding vulnerable people and treating donors fairly. Wac Arts does not use third parties to undertake any fundraising activities.

The Charity received no complaints relating to its fundraising activities during 2021/22.

Financial Review

The accounts show a £47k surplus (2021: £61k) on unrestricted funds, which represents a continued stabilisation of the financial position. Wac Arts’ principal sources of income continued to be the provision of services to Camden Council for disabled young people, lettings of its premises at the Town Hall, fundraising, and fees for artistic activities provided. The surplus was achieved through continued success in building income and good cost management during the financial year.

The consolidated results of Wac Arts and The Hamden Trust report a £117k deficit (2021: £35k surplus) in total funds during the year, of which £180k (2021: £74k) was a deficit relating to Hamden Trust mainly reflected by depreciation charges on building improvement costs financed by restricted funds accumulated within the Hamden Trust for this purpose in previous years.

The surplus has helped to improve unrestricted reserves to £314k. Charity funds are distinguished between unrestricted and restricted funds in line with the accounting policy definitions (note 1j). The financial health of the charity is considered mainly in the context of the charity's own funds, i.e., unrestricted funds. The term "free reserves" refers to unrestricted funds less fixed assets in order to describe the funds which are readily available to the charity. Free reserves were negative £45k, which represented a £19k improvement in year. This continued the progress in stabilising the financial position of the organisational under its current leadership, summarised below:

18/19
£		 19/20
£		 20/21
£		 21/22
£
Unrestricted Surplus/(Deficit)
Unrestricted Reserves
Free Reserves (standard definition)		 (185,903)
148,584
(184,288)		 57,338
205,922
(139,823)		 61,467
267,389
(64,415)		 46,921
314,310
(45,124)

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Wac Arts

Consolidated Financial Statements For the year to 30 September 2022

The figures above highlight an improvement of £165k (112%) in unrestricted funds and £139k (76%) in free reserves over the last 3 years.

Wac Arts is committed to a phased building of reserves to a level equivalent to three months’ expenditure (approximately £365k). Until this is achieved, the Charity is working to a cash target using long term loans to maintain cash reserves above this level. At 30 September 2022, the Charity’s cash balance was £591k, which was ahead of this interim target.

Loan balances at the end of the year were £567k (of which £517k is long term), from:

Free reserves remain comfortably ahead of business plan targets, which assumed positive free reserves by FY23/24 and a sustainable target level being achieved from approximately FY25/26, based on assumed annual surpluses. The Charity intends to review opportunities for potential early settlement of its long-term loans as circumstances allow, and intends to maintain its recent trajectory towards greater financial stability through continued careful budgeting and financial management.

Trustees have considered emerging macroeconomic risks, including inflation, though its budgeting and reforecasting processes. The Charity was successful in securing a fixed price agreement on its energy costs to 2025/26, which has mitigated the impact of recent rises.

Risk Management

The Trustees' risk management strategy comprises:

This strategy has ensured risks are identified and discussed at an early stage, enabling appropriate management and mitigation arrangements to be put in place.

The charity has continued its work to reduce risk over the last 12 months. Overall risk had reduced by 9% and risks in the high category have reduced to medium.

Looking to the Future

The Year Ahead

The Charity will build on the progress made over the last two years to establish a strong central administrative function capable of supporting the Charity’s plans to operate at a national scale. An experienced full time IT Operations Manager has been appointed to advance the roll-out of Salesforce CRM and other enterprise-level technology tools across the Charity.

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Wac Arts

Consolidated Financial Statements For the year to 30 September 2022

Outreach will form a larger part of the Charity’s Arts Programme. Beneficiary numbers are forecast to grow to 2,500 up from 500 in the previous year. Outreach activity will prioritise audiences new to the Charity and areas outside London that lack cultural infrastructure as identified by the APPG report on Left Behind Neighbourhoods.

The progress made to improve the scale and quality of the Charity’s Learning and Participation programmes will continue. Management will grow the number of young people across all activities with a specific focus on older teenagers. New sessions aimed at young people who want to advance their existing artistic and technical skills towards entry into either specialist education providers or the creative industries will be developed.

The external review of Governance will be completed. The refinements and new arrangements recommended will be implemented in the year ahead.

Board of Trustees’ Responsibilities

Company law requires the Trustees to prepare financial statements for each financial year. The Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the profit or loss of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and 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.

In accordance with company law, each of the persons who are Trustees at the time when this report is approved has confirmed that:

The members each agree to contribute an amount not exceeding £10 to the assets of the charity in the event of it being wound up whilst a member and for one year after ceasing to be a member. The amount of these guarantees at 30 September 2022 was £70 (2021: £70).

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Wac Arts

Consolidated Financial Statements For the year to 30 September 2022

Trustees have no beneficial interest in the charity and are not remunerated.

Statement on Public Benefit

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit published by the Charity Commission in determining the activities undertaken by the charity. The identifiable benefits are set out in this report as are the aims of the Charity and the beneficiary groups.

This report, which incorporates the Strategic Report, was approved by the Board of Trustees and signed on its behalf on 30[th] March 2023 by:

Justina Cruickshank Chair

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Wac Arts

Financial Statements for the year to 30 September 2022

Independent Auditor’s Report to the Members of Wac Arts

Opinion

We have audited the financial statements of WAC Arts (the ‘parent charity’) and its subsidiary (‘the group’) for the year ended 30 September 2022 which comprise the consolidated and charity Statements of Financial Activities (including the Income and Expenditure Account), the consolidated and charity Balance Sheets, consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISs (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 group 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 charitable company’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 Trustees’ Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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Wac Arts

Financial Statements for the year to 30 September 2022

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are Required to Report by Exception

In the light of the knowledge and understanding of the group and the parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company for the purposes 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 group’s and parent 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 group or parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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:

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Wac Arts

Financial Statements for the year to 30 September 2022

A further description of our responsibilities for the audit of the financial statements is located 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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’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 charitable company and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Simon Goodridge (Senior Statutory Auditor) Date: 26 April 2023 For and on behalf of Knox Cropper LLP (Statutory Auditor) 65 Leadenhall Street London EC3A 2AD

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Wac Arts

Financial Statements for the year to 30 September 2022

Consolidated Statement of Financial Activities

Restricted Unrestricted Total Total
2022 2022 2022 2021
Note £ £ £ £
Income from:
Grants and donations 2 202,106 48,385 250,491 468,149
Charitable activities 425,074 1,002,286 1,427,360 1,463,798
Other income - 8,835 8,835 126,309
Investment income - 197 197 41
--------------------- ---------------------- -------------------- --------------------
Total income 627,180 1,059,703 1,686,883 2,058,297
========== ========== ========== ==========
Expenditure on:
Charitable activities:
Service and projects expenditure 3 763,834 582,865 1,346,699 1,547,022
Centre management 3 3,299 453,669 456,968 475,998
----------------------- ---------------------- -------------------- --------------------
Total expenditure 3 767,133 1,036,534 1,803,667 2,023,020
=========== ========== ========== ==========
(139,953) 23,169 (116,784)
Transfers between funds 12 (23,752) 23,752 - -
---------------------- ------------------------ ------------------------ ------------------
Net Movement of Funds (163,705) 46,921 (116,784) 35,277
Reconciliation of funds
Funds at 1 October 2021 6,161,909 267,389 6,429,298 6,394,021
----------------------- ---------------------- ----------------------- -----------------------
Funds at 30 September 2022 12 5,998,204 314,310 6,312,514 6,429,298
=========== =========== =========== ===========

All of the charity’s activities are classed as continuing. All recognised gains and losses are shown above. The comparative year’s Statement of Financial Activities is included in note 20.

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Wac Arts

Financial Statements for the year to 30 September 2022

WAC Arts Statement of Financial Activities

Restricted Unrestricted Total Total
2022 2022 2022 2021
Note £ £ £ £
Income from:
Grants and donations 2 202,106 48,385 250,491 468,149
Charitable activities 425,074 1,002,286 1,427,360 1,463,798
Other income - 8,835 8,835 20,506
Investment income - 197 197 41
--------------------- ---------------------- -------------------- --------------------
Total income 627,180 1,059,703 1,686,883 1,952,494
========== ========== ========== ==========
Expenditure on:
Charitable activities:
Service and projects expenditure 3 587,555 582,865 1,170,420 1,370,745
Centre management 3 - 453,669 453,669 472,799
----------------------- ---------------------- -------------------- --------------------
Total expenditure 3 587,555 1,036,534 1,624,089 1,843,544
=========== ========== ========== ==========
39,625 23,169 62,794 108,950
Transfers between funds 13 (23,752) 23,752 - -
---------------------- ------------------------ ------------------------ ------------------
Net Movement of Funds 15,873 46,921 62,794 108,950
Reconciliation of funds
Funds at 1 October 2021 47,484 267,389 314,873 205,923
----------------------- ---------------------- ----------------------- -----------------------
Funds at 30 September 2022 13 63,357 314,310 377,667 314,873
=========== =========== =========== ===========

All of the charity’s activities are classed as continuing. All recognised gains and losses are shown above. The comparative year’s Statement of Financial Activities is included in note 21.

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Wac Arts

Financial Statements for the year to 30 September 2022

Consolidated and Charity Balance Sheets Company Number: 1158819

30 September 2022 30 September 2022 30 September 2021 30 September 2021
Group Wac Arts Group Wac Arts
Note £ £ £ £
Tangible fixed assets 6 6,349,308 422,791 6,482,083 379,288
Non-Current Assets
Amount due from
Related Charity 7 - 263 - -
Current Assets
Debtors 8 354,680 354,680 218,650 218,650
Cash at bank and in hand 602,783 591,189 683,277 671,647
------------------- ------------------- ------------------- -------------------
957,463 945,869 901,927 890,297
Creditors, amounts falling due
Within one year 9 (477,070) (474,069) (391,680) (391,680)
------------------- ------------------- ------------------- -------------------
Net Current Assets/(Liabilities) 480,393 471,800 510,247 498,617
Creditors, amounts falling due
After more than one year 11 (517,187) (517,187) (563,032) (563,032)
----------------------- ------------------- ----------------------- -------------------
14 6,312,514 377,667 6,429,298 314,873
========== ========= ========== =========
Funds
Restricted funds 1(j), 12, 13 5,998,204 63,357 6,161,909 47,484
Unrestricted funds 1(j), 12, 13 314,310 314,310 267,389 267,389
---------------------- ------------------- ---------------------- -------------------
6,312,514 377,667 6,429,298 314,873
========== ========= ========== ========

The financial statements were approved and authorised for issue by the Board of Trustees on 25[th] April 2023 and signed on its behalf by

Justina Cruickshank – Chair

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Wac Arts

Financial Statements for the year to 30 September 2022

Consolidated Cash Flow Statement

2022 2021
£ £
Net cash (outflow)/inflow from operating activities
Net movement in funds (116,784) 35,277
Investment income (197) (41)
Interest payable 19,231 10,417
Depreciation 212,358 207,492
Disposal of fixed assets - -
(Increase)/ Decrease in debtors (136,030) (132,340)
(Decrease) in creditors 99,857 (136,189)
------------------- -------------------
Net cash (used in)/provided by operating activities 78,435 (15,384)
------------------ ------------------
Cash flow from investing activities
Investment income 197 41
Purchase of tangible fixed assets (79,583) (64,757)
----------------- ----------------
Net cash used in investing activities (79,386) (64,716)
----------------- ----------------
Cash flows from financing activities
Cash inflows from new borrowing - 400,000
Loan repayments (60,312) (41,378)
Interest paid (19,231) (10,417)
----------------- ----------------
Net cash used in financing activities (79,543) 348,205
----------------- ----------------
Net change in cash and cash equivalents in the year (80,494) 268,105
Cash and cash equivalents at the beginning of the year 683,277 415,172
------------------- -------------------
Cash and cash equivalents at the end of the year 602,783 683,277
========= =========
Analysis of cash and cash equivalents
Cash at bank 602,783 683,277
-------------------- --------------------
602,783 683,277
========= =========
Analysis of changes in net debt:
At 30 Sept 2021 Cash flows At 30 Sept 2022
Cash and cash equivalents 683,277 (80,494) 602,783
Borrowings:
Debt due within one year (64,614) 14,467 (50,147)
Debt due after one year (563,032) 45,845 (517,187)
(627,646) 60,312 (567,334)
Total 55,631 (20,182) 35,449

Page 18 of 30

Wac Arts

Financial Statements for the year to 30 September 2022

Notes to the Financial Statements

1. Accounting Policies

(a) Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards. The format of the financial statements has been presented to comply with the Companies Act 2006, FRS102 The Financial Reporting Standard applicable in the UK and Ireland and the Statement of Recommended Practice Accounting and Reporting by Charities (FRS102 SORP second edition). Figures are presented in sterling and rounded to the nearest pound. The Charity is a Public Benefit Entity as defined by FRS102.

These financial statements include the results, assets and liabilities of the main charity, Wac Arts, together with its subsidiary, The Hamden Trust (company number 03036627). The Net Movement in Funds of the Parent was a surplus of £46,921.

(b) Basis of Consolidation

The Statement of Financial Activities, Balance Sheet and Cashflow Statement consolidate the results of the two sister charities, WAC Arts and Hamden Trust. The entities have several Trustees in common and agree that although there is no direct control of one over the other, because the charities work together as one entity consolidation is appropriate to reflect substance over form.

(c) Going concern

The Trustees consider that there are no material uncertainties which would cast doubt on the Group’s ability to continue as a going concern based on consideration of a range of information presented to the Finance Committee. This has included cashflow forecasts, budget plans to 2022/23, management forecasts, and associated papers (including Development Team reports) in year. Trustees have also reviewed a financial risk register during the year, and considered how emerging macroeconomic risks including inflation are managed through budgeting and reforecasting processes.The free reserves position of the Charity and Group has also been monitored against the targets set in the long term business plan, via finance committee papers to inform the view that the Charity and Group remain a going concern.

(d) General information The Charity is a company limited by guarantee, incorporated in England and Wales (company number: 1158819) and a charity registered in England and Wales (charity number: 267043). The registered office is The Old Town Hall, 213 Haverstock Hill, London NW3 4QP.

(e) Significant judgements and estimation uncertainty

In preparing these financial statements the trustees have had to make estimates and assumptions that affect the amounts recognised in these financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Key areas subject to judgement and estimation are as follows:

Fixed asset depreciation. Judgement is applied when assigning anticipated average lives to the fixed assets of the charity.

(f) Income

Income is included in the statement of financial activities when the Charity is entitled to the income, its receipt is probable and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of donations and gifts and are recognised when receivable or when the Charity becomes legally entitled to them and receipt is probable and they can reasonably be measured in financial terms.

Fee income (from sales, room hire and training services), investment income, including interest receivable, and other miscellaneous income are accounted for on a receivable basis.

Page 19 of 30

Wac Arts

Financial Statements for the year to 30 September 2022

Revenue grants are credited to the Statement of Financial Activities when receivable, unless they relate to a specified future or prior period, in which case they are deferred or accrued respectively. Grants received specifically for the purchase of fixed assets are credited to restricted funds when received.

(g) Expenditure

Costs of charitable activities consist of all expenditure directly relating to the objects of the Charity. Support costs which cannot be directly allocated are apportioned between charitable activities and governance costs on the basis of the Trustee’s estimate of the time spent on the relevant functions. Employment benefits, including holiday pay, are recognised in the period in which they are earned. Termination benefits are recognised in the period in which the decision is made and communicated to the relevant employee(s).

Governance costs include expenditure on management and compliance with constitutional and statutory requirements. Certain expenditure is directly attributable to specific activities and has been included in those cost categories. Support costs, which are attributable to more than one activity, are apportioned across cost categories on a basis consistent with the use of resource.

(h) Fixed assets

Individual fixed assets costing £500 or more are capitalised at cost. Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life as follows:

Studio Equipment 50% straight line Land Not depreciated Fixtures and fittings 25% straight line Computer equipment 25% straight line Leasehold buildings 2% per annum Improvement to properties - Straight line over the shorter of - the term of the lease, or - 2% per annum Artwork Not depreciated

(i) Financial instruments

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

(j) Leased assets

Rentals applicable to operating leases are charged to the SOFA over the period in which the cost is incurred. Assets purchased under finance lease are capitalised as fixed assets. Obligations under such agreements are included in creditors. Finance charges are written off to the SOFA over the period of the lease so as to produce a constant periodic rate of charge.

(k) Fund accounting

Restricted funds – these are funds which can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Page 20 of 30

Wac Arts

Financial Statements for the year to 30 September 2022

Unrestricted funds – these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

(l) Pensions

This year the Trust has made available pensions for all qualifying staff in order to comply with the government’s auto enrolment scheme regulations. Contributions to this defined contribution pension scheme are recognised as expenditure when they fall due.

2. Income from Grants and Donations: Wac Arts and Group

Restricted Unrestricted Total Total
Funds Funds 2022 2021
Wac Arts (for 2021-22) £ £ £ £
Camden – Youth Committee 30,000 - 30,000 30,000
Individual Donations 14,500 25,885 40,385 38,184
Trusts and Foundations 157,606 22,500 180,106 354,049
Furlough Grant - - - 45,916
--------------------- --------------------- --------------------- ---------------------
202,106 48,385 250,491 468,149
========== ========== ========== ==========
Restricted Unrestricted Total
Funds Funds 2021
Wac Arts £ £ £
(comparatives for 2020-21)
Camden – Youth Committee 30,000 - 30,000
Individual Donations - 38,184 38,184
Trusts and Foundations 265,349 88,700 354,049
Furlough Grant - 45,916 45,916
--------------------- --------------------- ---------------------
295,349 172,800 468,149
========== ========== ==========

3. a Total Resources Expended: Wac Arts

Service and Centre Total Total
Projects Management 2022 2021
Wac Arts (for 2021-22) £ £ £ £
Staff costs and tutor fees 775,677 211,772 987,449 1,050,831
Other direct costs 182,209 72,297 254,506 421,101
Audit fee - 12,750 12,750 12,600
Allocation of support costs:
General staff costs 12,387 20,400 32,787 49,142
Premises expenses 138,270 10,736 149,006 169,465
Depreciation 16,164 19,916 36,080 31,214
Insurance 22,463 22,980 45,443 41,678
Professional fee 23,250 61,429 84,679 45,218
Irrecoverable VAT - 21,389 21,389 22,297
--------------------- --------------------- --------------------- ---------------------
1,170,420 453,669 1,624,089 1,843,545
========== ========== ========== ==========

Page 21 of 30

Wac Arts

Financial Statements for the year to 30 September 2022

Wac Arts Service and Centre Total
(comparatives for previous year) Projects Management 2021
£ £ £
Staff costs and tutor fees 898,451 152,380 1,050,831
Other direct costs 273,526 147,575 421,101
Audit fee - 12,600 12,600
Allocation of support costs:
General staff costs 4,710 44,432 49,142
Premises expenses 158,848 10,615 169,463
Depreciation 12,279 18,935 31,214
Insurance 20,482 21,196 41,678
Professional fee 2,449 42,769 45,218
Irrecoverable VAT - 22,297 22,297
--------------------- --------------------- ---------------------
1,370,745 472,799 1,843,544
========== ========== =========
3. b Total Resources Expended: Group
Service and Centre Total Total
Group Projects Management 2022 2021
£ £ £ £
Staff costs and tutor fees 775,677 211,772 987,449 1,050,831
Other direct costs 182,209 72,446 254,655 421,150
Audit fee - 15,900 15,900 15,750
Allocation of support costs
General staff costs 12,387 20,400 32,787 49,142
Premises expenses 138,270 10,737 149,007 169,462
Depreciation 192,443 19,915 212,358 207,492
Insurance 22,463 22,980 45,443 41,678
Professional fee 23,250 61,429 84,679 45,218
Irrecoverable VAT - 21,389 21,389 22,297
--------------------- --------------------- --------------------- ---------------------
1,346,699 456,968 1,803,667 2,023,020
========== ========== ========== ==========
Group Service and Centre
(comparatives for previous year) Projects Management 2021
£ £ £
Staff costs and tutor fees 898,451 152,380 1,050,831
Other direct costs 273,526 147,624 421,150
Audit fee - 15,750 15,750
Allocation of support costs:
General staff costs 4,710 44,432 49,142
Premises expenses 158,848 10,614 169,462
Depreciation 188,556 18,936 207,492
Insurance 20,482 21,196 41,678
Professional fee 2,449 42,769 45,218
Irrecoverable VAT - 22,297 22,297
--------------------- --------------------- ---------------------
1,547,022 475,998 2,023,020
========== ========== ==========

Support costs are allocated according to the proportion of staff time or floor space used by each activity.

Page 22 of 30

Wac Arts

Financial Statements for the year to 30 September 2022

4. a Staff costs and numbers 2022 2021
£ £
Wages and salaries 899,838 964,669
Social security costs 70,702 67,542
Pension scheme contributions 16,909 18,620
--------------------- ---------------------
987,449 1,050,831
========== ==========

One employee received more than £60,000 (in the band £90k-£100k) during the year (2021 – one employee received more than £60,000 (£90k-£100k)).

The key management personnel consist of the CEO and the Director of Development. These staff received combined salary, benefits and pension contributions of £196,289 (2021: CEO, the Director of Programmes and the Director of Development received £226,268) during the year.

The average number of persons employed during the year was 67 (2021: 95). There were 2 redundancies, receiving redundancy payments of £18,813 (2021: 3 receiving total redundancy payments of £31,173).

4. b Trustees Remuneration and Expenses – Wac Arts and Group

Trustees received no remuneration during the period (2021: Nil). No expenses were reimbursed during the period to any Members (2021: £Nil).

4. c Trustee Donations

All trustees donate to the charity. During the financial year 2021/22 total donations from trustees came to £5,120 (2021: £2,155).

5. Net movement on funds 2022 2021
Group Wac Arts Group Wac Arts
£ £ £ £
This is stated after charging:
Depreciation (note 5) 212,358 36,080 207,492 31,214
Auditors' fees
- For Audit Services 12,700 10,600 12,600 10,500
- For Non-Audit Services 3,200 2,150 3,150 2,100
======== ======== ======== ========

Page 23 of 30

Wac Arts

Financial Statements for the year to 30 September 2022

6. a Tangible Fixed Assets: Wac Arts

Cost
At 1 October 2021
Additions
Reclassification
At 30 Sept’ 2022
Depreciation
At 1 October 2021
Charge for period
Reclassification
At 30 Sept’ 2022
Net Book Value
At 30 Sept’ 2022
At 30 Sept’ 2021		 Building
Improvm'ts
£
Fire Panel
£
Fixtures
&
Fittings
£
Plant &
Equipm’t
£
Lift
£
Total
Wac Arts
£
335,559
-
108,943
259,715
29,831
734,048
-
6,308
17,684
19,471
36,120
79,583
-
-
-
-
-
-
335,559
6,308
126,627
279,186
65,951
813,631
26,861
-
104,682
221,259
1,958
354,760
6,711
315
5,842
19,915
3,297
36,080
-
-
-
-
-
-
33,572
315
110,524
241,174
5,255
390,840
301,987
5,993
16,103
38,012
60,696
422,791
308,698
-
4,261
38,456
27,873
379,288

6. b Tangible Fixed Assets: Group

Cost
At 1 October
2021
Additions
Reclassification
At 30 Sept’
2022
Depreciation
At 1 October
2021
Charge for
period
Reclassification
At 30 Sept’
2022
Net Book
Value
At 30 Sept’
2022
At 30 Sept’
2021		 Freehold
Long
Lease
£
Long
Leasehold
Building
£
Fire Panel
£
Improvements,
Artwork and
Building
£
Fixtures
and
Fittings
Lift
£
Total
£
330,500
900,000
-
8,250,933
513,807 29,831
10,025,071
-
-
6,308
-
37,155 36,120
79,583
-
-
-
-
-
-
-
330,500
900,000
6,308
8,250,933
550,962 65,951
10,104,654
-
311,727
-
2,758,213
471,090
1,958
3,542,988
-
18,000
315
164,989
25,757
3,297
212,358
-
-
-
-
-
-
-
-
329,727
315
2,923,202
496,847
5,255
3,755,346
330,500
570,273
5,993
5,327,731
54,115 60,696
6,349,308
330,500
588,273
-
5,492,720
42,717 27,873
6,482,083

Page 24 of 30

Wac Arts

Financial Statements for the year to 30 September 2022

7. Non-current Asset – Amount due from Related Charity

The non-current asset of £263 (2021: nil) relates to amounts due from Hamden Trust.

8. Debtors 2022 2021 2021
Group
Wac Arts		 Group Wac Arts
£ £ £ £
Trade debtors 285,193 285,193 38,650 38,650
Other debtors 2,844 2,844 6,012 6,012
Prepayments and accrued income 66,643 66,643 173,988 173,988
-------------------- ------------------- -------------------- -------------------
354,680 354,680 218,650 218,650
========= ========= ========= =========
9. Creditors: amounts falling due 2022 2021
within one year Group Wac Arts Group Wac Arts
£ £ £ £
Trade creditors 68,923 68,923 74,072 74,072
Taxation and social security 65,871 65,871 60,580 60,580
Grants in advance 900 900 3,700 3,700
Loan from Triodos Bank 22,461 22,461 22,416 22,416
CBILS Loan 27,686 27,686 22,198 22,198
Loan from Donors - - 20,000 20,000
Other creditors and accruals 52,801 49,800 117,853 117,853
Deferred income (Note 10) 238,428 238,428 70,861 70,861
------------------- ------------------- ------------------- -------------------
477,070 474,069 391,680 391,680
========= ======== ========= =========
10. Deferred income 2022 2021
Group Wac Arts Group Wac Arts
£ £ £ £
Balance at 1 October 2021 70,861 70,861 249,919 249,919
Amount released to incoming resources (70,861) (70,861) (249,919) (249,919)
Amount deferred in the year 238,428 238,428 70,861 70,861
------------------ ------------------ ------------------ ------------------
Balance at 30 September 2022 238,428 238,428 70,861 70,861
========= ========= ========= ==========
11.
Creditors: amounts falling due after more than one year		 2022 2021
£ £
Due between 1 and 2 years 51,592 44,614
Due between 2 and 5 years 166,205 133,842
Due after 5 years 299,390 384,576
------------------ ------------------
Balance at 30 September 2022 517,187 563,032
======== =========

The charity took a long term borrowing facility from Triodos Bank N.V. of £232,481 in 2019 to help the organisation manage its cashflow as it looked to initiate a capital project to re-develop the Old Town Hall on behalf of The Hamden Trust, a related charity. The loan is for a period of 10 years from the date of draw-down (25th August 2019) and is secured on the freehold property of 213 Haverstock Hill (the Old Town Hall). After a 12-month interest-only period, the loan is repayable in 228 consecutive monthly payments of capital and interest. Interest is payable at 4% over the Bank of England base rate.

In response to concerns on the impact of Covid-19, the charity applied for – and were awarded – a Coronavirus Business Interruption Loan Scheme (CBILS) loan. In February 2021, WAC Arts drew down £400,000 from The Cooperative Bank. The terms of the loan included a 12-month capital repayment holiday and agreement that the Secretary of State would cover any interest, fees and other charges for the first 12 months of the loan. After this initial period, repayments will be made over 60 consecutive months. An interest rate of 3.5% over the Bank of England base rate will be charged per annum.

Page 25 of 30

Wac Arts

Financial Statements for the year to 30 September 2022

12. Movement on funds
At		 Total Total At
1 October Incoming Resources 30 September
Group 2021 Resources Expended Transfers 2022
£ £ £ £ £
Restricted Funds
Wac Arts
Town Hall leasehold
acquisition 900,000 - - - 900,000
Freehold land 212,000 - - - 212,000
Bridge House
Estates Trust Fund 300,000 - - - 300,000
Right of Way 118,500 - - - 118,500
Wac Arts Programme
Costs 1 580,061 (580,062) - -
City Bridge Trust
Capital Project 47,484 47,119 (7,494) (23,752) 63,357
Town Hall Project
Costs 4,583,924 - (179,577) - 4,404,347
--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------
6,161,909 627,180 (767,133) (23,752) 5,998,204
Unrestricted funds
General 267,389 1,059,703 (1,036,534) 23,752 314,310
--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------
6,429,298 1,686,883 (1,803,667) - 6,312,514
============ ============ ============ ============ ============
Movement on funds Comparative
At Total Total At
1 October Incoming Resources 30 September
Group 2020 Resources Expended Transfers 2021
£ £ £ £ £
Restricted Funds
Wac Arts
Town Hall leasehold
acquisition 900,000 - - - 900,000
Freehold land 212,000 - - - 212,000
Bridge House
Estates Trust Fund 300,000 - - - 300,000
Right of Way 118,500 - - - 118,500
Wac Arts Programme
Costs 1 242,468 (242,468) - 1
City Bridge Trust
Capital Project - 52,881 (5,397) 47,484
Town Hall Project 4,657,598 105,803 (179,477) - 4,583,924
Costs
--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------
6,188,099 401,152 (427,342) - 6,161,909
Unrestricted funds
General 205,922 1,657,145 (1,595,678) - 267,389
--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------
6,394,021 2,058,297 (2,023,020) - 6,429,298
============ ============ ============ ============ ============

Restricted funds consist of grants and donations restricted to the purposes as described in each fund’s title above. Transfers represent restricted funds spent on fixed assets .

Page 26 of 30

Wac Arts

Financial Statements for the year to 30 September 2022

13. Movement on funds
At		 Total Total At
1 October Incoming Resources 30 September
Wac Arts 2021 Resources Expended Transfers 2022
£ £ £ £ £
Restricted Funds
Wac Arts Programme
Costs - 580,061 (580,061) - -
City Bridge Trust
Capital Project 47,484 47,119 (7,494) (23,752) 63,357
--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------
47,484 627,180 (587,555) (23,752) 63,357
Unrestricted funds
General 267,389 1,059,703 (1,036,534) 23,752 314,310
--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------
314,873 1,686,883 (1,624,099) - 377,667
============ ============ ============ ============ ============
Movement on funds Comparative
At Total Total At
1 October Incoming Resources 30 September
Wac Arts 2020 Resources Expended Transfers 2021
£ £ £ £ £
Restricted Funds
Wac Arts Programme
Costs - 242,468 (242,468) - -
City Bridge Trust
Capital Project - 52,881 (5,397) 47,484
--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------
- 295,349 (247,865) - 47,484
Unrestricted funds
General 205,923 1,657,145 (1,595,679) - 267,389
--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------
205,923 1,952,494 (1,843,544) - 314,873
============ ============ ============ ============ ============

14. Analysis of Net Assets between Funds

a) Group

Fund balances at 30 September 2022 are represented by:

Restricted Unrestricted 2022
£ £ £
Tangible fixed assets 5,989,874 359,434 6,349,308
Net long-term assets/(liabilities) (263) (516,924) (517,187)
Net current assets/(liabilities) 8,593 471,800 480,393
----------------------- ----------------------- -----------------------
Total Net Assets 5,998,204 314,310 6,312,514
=========== =========== ===========
Restricted Unrestricted 2021
£ £ £
Tangible fixed assets 6,150,279 331,804 6,482,083
Net long-term assets/(liabilities) - (563,032) (563,032)
Net current assets/(liabilities) 11,630 498,617 510,247
----------------------- ----------------------- -----------------------
Total Net Assets 6,161,909 267,389 6,429,298
=========== =========== ===========

Page 27 of 30

Wac Arts

Financial Statements for the year to 30 September 2022

b) Wac Arts

Fund balances at 30 September 2022 are represented by:

Restricted Unrestricted 2022
£ £ £
Tangible fixed assets 63,357 359,434 422,791
Net long-term assets/(liabilities) - (516,924) (516,924)
Net current assets/(liabilities) - 471,800 471,800
----------------------- ----------------------- -----------------------
Total Net Assets 63,357 314,310 377,667
=========== =========== ===========
Restricted Unrestricted 2021
£ £ £
Tangible fixed assets 47,484 331,804 379,288
Net long-term assets/(liabilities) - (563,032) (563,032)
Net current assets/(liabilities) - 498,617 498,617
----------------------- ----------------------- -----------------------
Total Net Assets 47,484 267,389 314,873
=========== =========== ===========

15. Taxation

The company is a registered charity and, as such, is not liable to corporation tax on its charitable operations.

16. Lease Commitments

Lease Commitments
2022 2021
£ £
The total of future minimum lease payments under non-cancellable
operating leases for each of the following periods:
Not later than one year 5,692 5,692
Later than one year and not later than five years 15,325 21,017
More than five years - -
------------------ ------------------
Total Net Assets 21,017 26,709
========= =========

17. Connected Charities

The members of the Board of Trustees of Wac Arts are also the Board of Trustees of The Hamden Trust.

18. Pensions

The Charity contributes to certain individual employees’ personal pension schemes. In addition, the Charity makes pension contributions for all eligible staff to comply with the Government’s auto enrolment scheme regulations. The pension charge for the period was £16,909 (2021: £18,620).

19. Financial instruments

Financial instruments
2022 2021
£ £
Financial assets measured by amortised cost 288,037 44,663
Financial liabilities measured by amortised cost 608,571 724,135

Financial assets measured at amortised cost comprise trade other debtors. Financial liabilities measured at amortised cost comprise loans and trade creditors.

Page 28 of 30

Wac Arts

Financial Statements for the year to 30 September 2022

20. Consolidated Statement of Financial Activities for the year ended 30 September 2021 (for comparative purposes)

Restricted Unrestricted Total
2021 2021 2021
Note £ £ £
Income from:
Grants and donations 295,349 172,800 468,149
Charitable activities - 1,463,798 1,463,798
Other income 105,803 20,506 126,309
Investment income - 41 41
-------------------- ---------------------- --------------------
Total income 401,152 1,657,145 2,058,297
========== ========== ==========
Expenditure on:
Charitable activities:
Service and projects expenditure 3 424,143 1,122,879 1,547,022
Centre management 3 3,199 472,799 475,998
---------------------- ---------------------- --------------------
Total expenditure 3 427,342 1,595,678 2,023,020
=========== ========== ==========
Transfers between funds 12 - - -
---------------------- ------------------------ ------------------
Net Movement of Funds (26,190) 61,467 35,277
Reconciliation of funds
Funds at 1 October 2020 6,188,099 205,922 6,394,021
----------------------- ---------------------- -----------------------
Funds at 30 September 2021 12 6,161,909 267,389 6,429,298
=========== =========== ===========

Page 29 of 30

Wac Arts

Financial Statements for the year to 30 September 2022

21. WAC Arts Statement of Financial Activities for the year ended 30 September 2021 (for comparative purposes)

Restricted Unrestricted Total
2021 2021 2021
Note £ £ £
Income from:
Grants and donations 295,349 172,800 468,149
Charitable activities - 1,463,798 1,463,798
Other income - 20,506 20,506
Investment income - 41 41
-------------------- ---------------------- --------------------
Total income 295,349 1,657,145 1,952,494
========== ========== ==========
Expenditure on:
Charitable activities:
Service and projects expenditure 3 247,865 1,122,880 1,370,745
Centre management 3 - 472,799 472,799
---------------------- ---------------------- --------------------
Total expenditure 3 247,865 1,595,679 1,843,544
=========== ========== ==========
47,484 61,466 108,950
Transfers between funds 13 - - -
---------------------- ------------------------ ------------------
Net Movement of Funds 47,484 61,466 108,950
Reconciliation of funds
Funds at 1 October 2020 - 205,923 205,923
----------------------- ---------------------- -----------------------
Funds at 30 September 2021 13 47,484 267,389 314,873
=========== =========== ===========

Page 30 of 30