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2022-08-31-accounts

Charity registration number 276210

WARWICK ARTS TRUST

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

WARWICK ARTS TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

The Milton Grundy Foundation Trustees Limited Mr O Afridi

Charity number Independent examiner

276210 Place Campbell Wilmington House High Street East Grinstead West Sussex RH19 3AU

WARWICK ARTS TRUST

CONTENTS

Page
Trustee's report 1
Independent examiner's report 2
Statement of financial activities 3
Balance sheet 4
Notes to the financial statements 5 - 10

WARWICK ARTS TRUST

TRUSTEE'S REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

The trustees present their annual report and financial statements for the year ended 31 August 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust's deed, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The trust's objects are to provide performing experience to young musicians. It has also made donations to a number of other charities in the year.

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

The years 2020, 2021, and 2022 were exceedingly challenging for the charity to accomplish what it needed to. Concerts were impossible to plan, but the Warwick Arts Trust organised 3 concerts for aspiring musicians last year as soon as the prohibitions on public gatherings were relaxed.

The trust is working hard to make it possible for performances to take place in prestigious venues like The Wigmore Hall. It will continue to assist young musicians with issues such as job loss, financial hardship, future concerns, psychological wellbeing, social connections, carrying on with creative endeavours, and inequalities.

Financial review

It is the policy of the trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the trust’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The trustees have assessed the major risks to which the trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The Warwick Arts Trust is a charitable trust established by a trust deed dated 19 May 1978 by the trustees of a charitable foundation known as the Clara Haskil Trust based in Canada and having similar objectives as this trust.

The trustees who served during the year and up to the date of signature of the financial statements were: The Milton Grundy Foundation Trustees Limited Mr M Grundy (Deceased) (Deceased 25 November 2022) Mr O Afridi

The trust is administered by the trustee which is responsible for the management of all the affairs of the trust.

The trustee's report was approved by the Board of Trustees.

..............................

Mr O Afridi

O Afridi (Chairman) for The Milton Grundy Foundation Trustees Ltd Dated: .........................

WARWICK ARTS TRUST

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF WARWICK ARTS TRUST

I report to the trustees on my examination of the financial statements of Warwick Arts Trust for the year ended 31 August 2022.

Responsibilities and basis of report

As the trustees of the trust you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the trust’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Place Campbell

Wilmington House High Street East Grinstead West Sussex RH19 3AU

Dated: .........................

WARWICK ARTS TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2022

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2022 2021
Notes £ £
Income from:
Donations and legacies 3 895 1,635
Investments 4 66,589 60,197
Total income 67,484 61,832
Expenditure on:
Charitable activities 5 52,576 37,967
Net gains/(losses) on investments 8 (423,518) 469,827
Net movement in funds (408,610) 493,692
Fund balances at 1 September 2021 3,394,486 2,900,794
Fund balances at 31 August 2022 2,985,876 3,394,486

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

All income and expenditure derive from continuing activities.

WARWICK ARTS TRUST

BALANCE SHEET

AS AT 31 AUGUST 2022

2022
Notes
£
£
Fixed assets
Heritage assets
10
207,815
Investment properties
11
12,100
Investments
12
2,343,447
2,563,362
Current assets
Cash at bank and in hand
425,847
Creditors: amounts falling due within
one year
13
(3,333)
Net current assets
422,514
Total assets less current liabilities
2,985,876
Income funds
Unrestricted funds
General unrestricted funds
2,815,548
Revaluation reserve
170,328
2,985,876
2,985,876
The financial statements were approved by the Trustees on .........................		 2021
£
£
207,815
500
2,913,895
3,122,210
273,891
(1,615)
272,276
3,394,486
3,224,158
170,328
3,394,486
3,394,486		 2021
£
£
207,815
500
2,913,895
3,122,210
273,891
(1,615)
272,276
3,394,486
3,224,158
170,328
3,394,486
3,394,486
3,122,210
272,276
3,394,486
3,394,486
3,394,486

..............................

Mr O Afridi

O Afridi (Chairman) for The Milton Grundy Foundation Trustees Ltd

WARWICK ARTS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1 Accounting policies

Charity information

Warwick Arts Trust is a charitable trust set up by trust deed dated 19 May 1978.

1.1 Accounting convention

The financial statements have been prepared in accordance with the trust's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The trust is a Public Benefit Entity as defined by FRS 102.

The trust has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

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

Financial assets classified as other financial assets are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset.

1.2 Going concern

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

1.3 Charitable funds

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

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

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

1.4 Income

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

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

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

WARWICK ARTS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised when incurred in respect of support and governance costs. In the case of donations to other charities the expenditure is recognised on payment.

1.6 Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.7 Fixed asset investments

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

1.8 Cash and cash equivalents

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.

WARWICK ARTS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

2 Critical accounting estimates and judgements

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

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

3 Donations and legacies

**Unrestricted ** Unrestricted
funds funds
2022 2021
£ £
Donations and gifts 895 1,635

4 Investments

**Unrestricted ** Unrestricted
funds funds
2022 2021
£ £
Income from listed investments 56,747 50,117
Interest receivable 9,842 10,080
66,589 60,197

WARWICK ARTS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

5 Charitable activities

Charitable
Charitable
Expenditure
Expenditure
Heading 1 Heading 1
2022 2021
£ £
Donations 12,141 10,543
Performance costs 1,398 5,284
13,539 15,827
Share of governance costs (see note 6) 39,037 22,140
52,576 37,967

6 Support costs

Insurance
Bank charges
Sundries
Legal and professional
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
-
333
-
47
-
-
-
38,657
-
39,037
-
39,037		 2022
£
333
47
-
38,657
39,037
39,037		 2021
£
415
8
222
21,495
22,140
22,140

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the trust during the year.

8 Net gains/(losses) on investments

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2022 2021
£ £
Revaluation of investments (435,118) 469,827
Revaluation of investment properties 11,600 -
(423,518) 469,827

WARWICK ARTS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

9 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

10 Heritage assets

Works of art
£
At 1 September 2021 and at 31 August 2022 207,815

Heritage assets consist of works of art that are shown at their fair value as estimated by the Trustee.

11 Investment property

Investment property
Fair value
At 1 September 2021
Net gains or losses through fair value adjustments
At 31 August 2022		 2022
£
500
11,600
12,100

Investment property comprises of a piece of freehold land at Conch Alley, Suttle Street, Bridgetown, Barbados The fair value of the investment property has been arrived at by formal valuation performed by a local estate agent. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

2022 2021
£ £
Freehold 12,100 500
Long leasehold - -
Short leasehold - -

12 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 September 2021 & 31 August 2022 2,913,895
Carrying amount
At 31 August 2022 2,913,895
At 31 August 2021 2,913,895

WARWICK ARTS TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

13
Creditors: amounts falling due within one year
Other creditors
14
Related party transactions		 2022
£
3,333		 2021
£
1,615

There were no disclosable related party transactions during the year (2021 - none).

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