Registered number- 01848136 Charity number- 290261 THE ITALIA CONTI ACADEMY TRUST (A Company Limited by Guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 111111 'A(4P611JE' 31105r2023 COWANIES HC4JSE *110
THE ITAUA CONTI ACAOEMY TRUST {A Company Limited by Guarantee) CONTENTS Page Reference and Administrative Details of the Company. its Trustees and Advisers Trustees, Report Independent AUdit0S Report on the Financial Statemènts Statement of Financial Activities 10 Balance Sheet Notes to the Financial Statements 13-23
THE ITAUA CONTI ACADEMY TRUST IA Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022 Trustees J Eaton S Hanness B Thomas (resigned 30 June 2022) Company registered number 01848136 Charity registered number 290261 Registered office Ground Floor 45 Pall Mall London SWIY 5JG Principal operating office 23 Goswell Road London EC1M 7AJ Independent auditor Hillier Hopkins LLP Chartered Accountants Slalulory Auditor 45 Pall Mall London SW1Y 5JG Page 1
THE ITAUA CONTI ACADEMY TRUST {A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2022 The Trustees present their annual report together wth the audited financial slalemenls of the Company for the 1 September 2021 to 31 August 2022. The Annual Report serves the purposes of both a Trustees, report and a directors. report under company law. The TnJstees ¢onfimi that the Annual Report and financial statements of the charrtable company comply with the current statutory requirements. the requirements of the charitable company's governing d¢xument and the provisions of the Statement of Recommended Practice ISORPI applicable to charities p1epang their acwunts in accordance wrth the Financial Reporting Stsndard appIable in the UK and Republi¢ of Ireland IFRS1021 {effective 1 January 20191_ Since the Company qualifies as small under se¢lion 382 of the Companies Act 2006. the Strategic Report required of medium and large compans under the Companies Act 2006 {Strategi¢ Report and Directors, Report) Regulations 2013 has been omitted. Objectives and activities . Polic5 and objectives In accordance with the objects slated above. the Charrty had developed a strategy to provide high quality performing arts courses working alongside The Italia Conti Academy of Theatre Arts Limited {'Ihe Academl'l. Up unlil 31 Augusl 2022. the strategy has been changed 51ighlly, as folbws.. The Academy offers performing arts ccMJr5es for students aged 16 and upward. These courses include Diplomas and Bachelor of Arts Degrees. The A¢ademy operes from premtses, the main s¢hool in London's Barbican, and Avondale Hall in Clapham. where its ¢Jrama CoUeS are centred. Under an agreement with the Academy. the Charity operates part of the Diploma urse$, and provides grants for students to aitend its own r$e$ and considers other perfomiing arts courses where appropriate on application. The costs of running the school which relate to rts courses are reimbursed by the Charity to the Academy each year. Followng a change in premises, in which the Academy merged rts course5 Wrth those of Ilalia Conti Arts Centre Limited and moved lo new premises in Woking, effective from 1 September 2022. the Charity has been permilled to continue rts activities as for the acadernic year 2021r22 into 2022r23, while the Trustees consider the most approprte course of action in pursuance of rts charrtable objectrves. The disposal by the Aeademy of the property al Avondale Hall. London resulted In a crystallisation of f(s asset. At the dale of wnting, the Trustees are confident that rt wll be possible to continue the activities of the Charity alongside Italia Conti Arts Centre Limited, and the strategies are under developmenL In setting objectives and planning for activitw. the Trustees have grven due consideration to general guidance published by the Charty Commission relating to pU1C benefft, including the guidance 'Publi¢ benefit.. running a charty IPB2)'. Page 2
THE ITALIA Coltn ACADEMY TRUST IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Objectives and activities Iconlinuedl The cknjeclives of the Charity are". a. Promoting edUcatn in the perfomlirtg arts through both leaching and the prowsion of scholarships". and. b. ProvKling leaching through the faalilies of the The Italia Conti Academy of Theatre Arts Limited or otherwse. b. Strategies for achieving objectives While hitherto the slrategy for achieiring the Charrtab objectives have been clear, as explained above. rt is now ne¢ess8ry to review these strategies and develop new ones. The global pandemi¢ of Covid-19 has made il extremely challenging for the Charity to estsblish its new acliwlies. ar the Tiustees have determined that they do not wish to enter into arTangements until they have greater clanty. A number of altemative strategies a being rwewed 81 the dale of writing. These include the operation of seginenls of the Italia Cohti business on arrangements sirnilar to those currentty in existence, or the provision of suitable sub-seNices lo stijdents in which the Chanty has expertise. Achievements and perfomiance . Review ol activitie5 Th& year under review was challenging for the Charity in many ways. Falling student numbers due to the closure of the junior school led to a reduced operating surplus. before gfant-making, of £145.853 12021 surplus £104,378). After grant-making, this resuhed in a surplus of £8.39812021- deficit £32,6951. The Charity has retained a small surplus at 31 August 2022. and has made arrangements with Ilalia Conti lo ensure that it does not suffer any overall def1t of charitable funds up to 31 August 2022 as a consequence of its arrangements wth the Academy. The overall Incoming resources for the year were £154.700 12021 £452,777). This is consistent with expeclations and the strategy outlined under"Reserves Policy" bel¢)w such that the net reserves at the balance sheet date were £84,17412021- £10,276). Page 3
THE ITAUA CONM ACADEMY TRUST (A Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 Financial review . Going concern The Trustees are presently of the view that the charilable actrvilies will continue. albeit in a diffenI form, as explained above. As such, Ihey consider that the going concern basis is appropriate, and any allernalive basis for pieparing the financial statements woubd not result in any malerial adjustments. b. Reserves policy The Challly Commission defines reseNes as "income which becomes available to the charity and is to be expended at the Tmslees. diScli0n in furtheiance of the charity's objects. but is not yet spent, committed or designated" Al the balance sheet dale the Charity's reserves ale primarity utilised in the cmjpation of the Barbican premises and lo provide working capital for ils operations. These funds are ulilised by providing grants and teaching courses. It is the Twstee$' policy to ulilise resources for its objectives and not to relain unnecessary funds. Consequently, the Trustees have acted to ulilise all surplus funds in furtherance of the Charity's objectives. especially having regard to the difficult times faced by many parents. The dose latIOnShIp with Italia Conti acts to prowde financial backup ensuring that reserves are in place at all times lo meel the needs of the Charity in prOdIng education. Structure, governance and management a. Constitution The Italia Conti Academy Trust is registered a5 a charitable company limited by guarantee and was sel up by a Trust deed. b. Methods of appointment or election of TNstees The management of the C(ynpany is the responsibilty of the Trustees who are elected and cw*led under the terms of the Trust deed. Page 4
THE ITALIA CONn ACADEMY TRUST {A Company Limited by Guarantee) TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 Statement of Trustees. responsibilities The Trustees (who are also the diTectots of the Company for the purpwjses of company lawl are responsible for preparin9 the Trustees. Report and the financial stalemenls in accordance wlh appliGabie law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice}. Company law requires the Trustees to prepare financial statement5 for each financial . 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 Company and of ils incoming resources and application of resources. including ils income and expenditure, for that period. In preparing these financial statements, the Trustees ale required lo.. select surtable accounting policies and then app them consistenlly-, observe the methods and principles ol the Charities SORP {FRS 1021- make judgments and accounting estimates th are reasonable and prudent.. state whether applicable UK Accounting Standards {FRS 1021 have been followed. subject to any material departures disclosed and explained in the financial statements,. prepare the financial statements on the going concem basis unles5 it is inappropriate to psume that the Cofflpany will continue in business. The Trustees are responsible for keeping adequate accounting CordS that are sufficient lo show and explain the Company's transactions and disdose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the ffin8n¢ial ststements comply with the Companies A¢t 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irularitIes. Disclosure of infomiation to audilor Each of the persons who are Tru5tee5 at the lime when this Trustees. Report is aN)rovetl has confirmed that". so far as that Trustee is aware, Ihere is no relevant audit InfonatIon of which the charity's auditor is unaware, and that Trustee has taken all the steps that ought lo have been tsken as a Trustee in order to be aware of any relevant au¢Jit infonnalion and to eslaWish th the charity's auditor is aware of that infoni)alion. Auditor The aud((or, Hillier Hopkins LLP. has indicated his llingneSS to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees. Approved by order of the members of the board of Trustees and signed on their behalf by.. J Eaton Trustee Dale.. 25105n023 Page 5
THE ITAUA CONTI ACADEMY TRUST IA Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ITALIA CONTI ACADEMY TRUST Opinion We have audited the financial statements of The ItalB Conti Academy TnJsl {the 'charitable company) for the year ended 31 August 2022 which comprise the Statemenl of Financial Activities, the Balance Sheet. the Statement of Cash Flows and the ielated notes. including a summary of significant accounting policies. The financial reporting framewofk that has been applied in their preparation is applicable law and United Kingdom Accounting Stanijards. including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of IreLAnd' {Uniled Kingdom Generally Accepted Accounting Practice). In our opinion the financial statemenls.. give a true and fair view of the state of the charitable MpanY'S affairs as al 31 August 2022 and of 115 incoming resources and application of sOUrCeS. induding its income and expenditure for the year then ended., have been properly prepare11 in acCordae with Uni(ed Kingdom Generally Apted Accounting Practice", and have been prepared in accordance wrth the requirements of the Companies Act 2006. Basis tor opinion We conduded our audit in acwrdance wtth Intemional Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those stsndards are further descnbe(l in the Auditorfs responsibilities for the audit of the financial stements sedion of oui POrt. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the Unrted Kingdom, including the Financial Reporting Council's Ethical Standard. and we have fufilled our other ethical responsibilities in accordance wth these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provÈde a basis for our optnion. Conclusions relating to going concern In auditing the financial statements, we have Conduded that the Trustees. use of the going concern basis of accounting in the preparation of the financial ststemenls is appropriate. Based on the worf( we have perfomed, we have not Èdentffied any material uncertainties relating lo events or condrtions that, Individual or coll11Vety, may $t signrficant doubl on the chaiitsble company's ability lo continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of Ihe Trustees wth respecl lo going concern are described in the relevant sections of this report Page 6
THE ITAUA CONTI ACADEMY TRUST IA Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ITALIA CONTI ACADEMY TRUST {CONTINUEDI Other infom)ation The other infomiation comprises the informalion induded in the Annual Report other than the financial slatemenls and our Auditorfs Report Ihereon. The Trustees are responsible for Ihe other infomialion contained within the Annual ReporL Our opinion on the financk41 slatements does not cover the other information and, except to the extent otherwise expliatty slated in otFr report. we do not express any fom of assurance conclusion Ihereon. Our SpOnsIbl11ty is to read the other infomiation and. in doing so. consider whether the other information is mateiially inconsistent wth the financial statements or our knowledge obtained in the course of the audit, OT Otherwise appears to be materially misstated. If we entity such material inconsistencies or apparent material misstatements, we are required to detemiine whether this gives rise to a material misslatemenl in the financial statements themsefves. If. based on the work we have perfomied. we conclude that there Is a material missiatement of this other information. we are required lo report that fact. We have nothing to report in this regard. Opinion on othor matter5 pre5Gribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audit.. the inlomiation given in Ihe Trustees. Report for Ihe financial year for which the fJnan¢ial slatements are prepared Is consistenl wrth the financial statements. the Trustees. Report has been prepared in 3ecordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the chantable company and its enwronmenl obtaird in the course of the audit. we have not 1dentrfd Material misstatements in the Trustees, Report. We have nothing to report in respect of the frAlowing matters in relation to which Ccnpanies A¢t 2006 requires us to report to you rf, in our opinion.. adeou8le aOunting records have not been kept. or retums adequate for our audit have not been received from branches not visited by us". or the financial statements are not in agreement with the accounting records and retums", or certain disclosures of Trustees. remuneration specified by law are not made.. or we have not ceiVed all the informalK)n and expLinations we require for our audrt,. or the Trustees were not entrtled lo prepa the financial statements in accordance wi(h the small companies regime and lake advantsge of the sm811 c(Knpanies' exemptions in preparing the Trustees, Report and from the requiwment to prepare a Strategic Report. Responsibilities of trusttss As explained more fulty in the Trustees, Responsibilities Ststement. the Trustees {who are also th8 directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial slalemenls and for being satisfied that they give a true and fail wew. and for such intemal conlrol as the Trustees determine Is necessary to enable the preparation of ffinancial stalements th a free frcn material misstatement, whether due to fraud or error. Page 7
THE ITAUA CONTI ACADEMY TRUST {A Company Limited by Guaranteel INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ITALIA CONTI ACADEMY TRUST {CONTINUEDI In preparing the financial statements. the Trustees are responsible for assessing the eharit8ble companys ability lo continue as a going concern. disclosing. as applicable, matters related to going contem and using the going concern basis of accounting unless the Trustees either intend to liquidate the charrtable company or to cease operatsons. or have no realistic altemative but to do so. Auditorfs re$pon$ibilitie$ for th• audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial slalements as a whole are free from material misstatement, whether due to fraud or error, and lo issue an Audilots Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance wrth ISAS IUKI will aayS detect a material misstatement when rt exists. Misslatemenls can arise from fraud or error and are considered material if, indNidualty or in the aggregate. they could reasonably be expected to influence the economic decIsS of users laken on Ihe basis of these financial slalements. lrnegularilies. induding fraud. are instances of non<ompliance with laws and regulatK)ns. We design proceduies in line with our responsibilities, outlined above, lo detect material misslalements in respect of irregularities, including fraud. The exlenl lo which our procedu5 are capable of detectiny Irular1tie$, in¢luding fraud is detailed below. we consider the nature of the industry and sector. control enmronment and business performance including the remuneration incentives and pressures of key management.. Ihe primary responsé)ilily for the prevention and detection of fraud resls with both those charged with govemance of the entrty and management. We consider the resulis of our enquiries of management, internal audf( and the Audit Committee aboLrt their own identfficalion and assessment of the risks of irregularities-. any matters we identrfied having obtsined and wewed the Company's l Group's dccumentstion of their ' policies and prOdureS relating to.. idenlrfying. evaluating and cLJmplying with laws and regulations and whether they were aware of any instances of non<ompliance- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected alleged fraud: the internal ¢trOlS eslablished to mrtigate risks of fraLKI or nonthcompliance vthh laws and regulations., the matters discussed among the audit engagement team and involving felevanl internal specialists, regarding how and where fraud mh1 occur in the financial statements and 8ny potential indicators of fraud. As a sU11 of these procedures. we considered the cppOrtUnleS and incenlNes that may exist wlhin the organisation for fraud and idenlified Ihe greatest potential for fraud. In common with all audrts under ISAS {UKI, we are also required to perform specific prccedures to respond to the risk of management ovemde, including testing ioumals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Page 8
THE ITALIA CONTI ACADEMY TRUST IA Company Limited by Guarnnteèl INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ITALIA CONTI ACADEMY TRUST {CONTINUEDI We also obtained an understanding of the legal and regu1310ry frameworks that the Company l Group operates in. focusing on provisions of those laws and iegulations that a dire¢l effe¢l on the detemiination of material amounts and disclosures in the financial statements. We fLKused on laws and reguL4tions that could give rise lo a Material misslalement in the financial slalemen15. including. bul not limited to, the Companie5 Act 2006, the Charilie5 Act 2011 and relevant lax legislation. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, incILlg those leading to a material misslalement in the financial slalemenls or non-cornplian with regulation. This fisk increases the more that ¢ompliance wrth a law or regulation is removed from the events and transactions reflected in the finan¢ial siatements. as we wll be less likely to become aware of instanS of non-compliance. The risk is also greater regarding irregularities oc¢urring due to fraud ralhei than error, as fraud involves intentional concealment. forgery. collusion, txnission or misrepresentation. A further description of our responsibilities for the audit of the financial statements 15 located on the Financial Reporting Council's website at.. vhYw.frc.o .uklauditorsres onsibililies. This description fomis part of our Auditor's Report. Use of our report This report is made solely to the charrtable company's trustees, as a bly. in accordance with Chapter 3 of Part 16 of the Companies Aet 2006. Our audrt work has been undertaken $0 thal we might slate to the charitable company's trustees those mattets we a required lo state to them in an Auditorfs Report and for no other purpose. To the fullest extent pefmrtted by law, we do not accept or assume responsibility lo anyone other than the charilable company and its members, as a bc#Jy, for our audit work, for this report. or for the opinions we have formed. Michael Ja¢oby FCA (Senior Statutory Auditor) for and on behalf of Hillier Hopklns LLP Charted Accountants Statutory Auditor 45 Pall Mall London SW1Y 5JG Date.. 30 May 2023 Page g
THE ITAUA CONTI ACADEMY TRUST {A Company Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 AUGUST 2022 Unrestricted funds 2022 Total funds 2022 Total funds 2021 Note Income from: Chantable activities 154.700 154.700 446,434 6.343 Olhei trading adiwlies Total income 154.700 154.700 452, 777 Expenditure on.. Chaiitable aclwities 146.302 146.302 48&4T2 Total expenditure 146.302 146.302 485,472 Net movement in funds 8.398 8.398 {32.695J Reconciliation of funds.. Total funds broughl forward Net movement in funds 10,276 8,39B 10.276 8.398 42,97f 132,695) Total funds carried forward 18,674 18.674 10,276 The Statement of Finanual Activities indu(Jes all gain5 and losses recognised in the year. The notes on pages 13 10 23 form pari of these financial slalements. Page 10
THE ITAUA CONTI ACADEMY TRUST IA Company Limited by Guarantee} REGISTERED NUMBER: 01848136 BALANCE SHEET AS AT 31 AUGUST 2022 2022 2021 Note Fixed assets Investment property Current assets 349,500 Debtors Cash al bank an(1 in hand 10 112 38.227 38, T60 44.616 38.339 83,376 Creditors.. wnounts falling due within one year {19,6651 (422,6(j Net Current assets I liabilites 18.674 (339,224) Total net assets 18.674 10,276 Charity funds Re51ricled funds Unrestricted funds 12 General funds 12 18.674 10,276 Total unrestricted funds 12 18.674 10,276 Total funds 18.674 10,276 The entily was entrtled to exemption frc¥n audit under section 477 of the Companies Acl 2006. The members have not required the entity to obtsin an audit for the year in question in accordance bwth sectKJn 476 of the Companies Act 2006. However. an audit is required in accordan wrth section 145 of the Charities Act 2011. The Trustees acknOedge their reS)nsibIlitIeS for comptying wrth the requirements of the Act with respect lo acccHJnling records and preparation of ffinancial statements. The financial statements have been prepared in aCcdanCe wrth Ihe provision5 applicable to entities subject lo the small companies regime. Page11
THE ITAUA CONTI ACADEMY TRUST (A Company Limited by Guaranteel REGISTERED NUMBER.. 01848136 BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2022 The financial ststemenls were approved and authorised for issue by the Trustees and signed on their behalf by.. nM¢iL J Eaton Trustee Dale.. 25105n023 The notes on pages 13 to 23 form part of thvae fina101 statements. Page 12
THE ITALIA CONTI ACADEMY TRUST IA Company Limiled by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 General infomation The Ilalia Conti Academy Tnjst is a company limrted by guarantee incorporated in Engknd and Wales. Its principal place of business is 23 Goswell Road. London. EC1 M 7AJ. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance wrth the Charities SORP {FRS 1021- Accounting and Reporting by Charities.. Stalement of Recommended Practice applicable to charities preparing their accounts in accordance wrth the Financial Reporting Standard applicable in the UK and Republic of IreL4nd {FRS 1021 leffectsve 1 January 20151. the Financol Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 and the Comp8nies Act 2008. The Italia Conti Academy Trust meets the definilion of a public benefrt entty under FRS 102. Assets and liabilities a initially COgnised at hislorical Cost or transaclion value unless othetwise stated in the relevant accounting policy. 2.2 Goirig concem As sel out in the Trustees. Report, following a change in premises in vthich the Academy merged its courses with those of Italia Conti Arts Centre Limited. effective from 1 September 2022, the Charity has been permitted to continue its activities as for the aCadern year 2021122 into 2022123, while the Trustees consider the most appropriate course of action in pursuance of ts charitable objectives. At the dale ol writing, the Trustees are confident that rt wll be possib lo continue the activities of the Charity alongside Ilalia Conti Arts Centre Limrted, and the strategies are under devekjpmenl. As such, they consider that the going concern basis is appropriate. and any allernalive basis for preparing the financid statements would not resurt in any material adjustments. 2.3 Income All income is recognised once the Company has enlitlernenl lo the income, it is probable that the income will be recewed and the amount of incorne receivable can be measured reliably. The recognitson ol income from legacies is dependent on establishing entillemenl, the probability of receipt and the ability to estsmate with sufficient accuracy the amount re1Vable. Evidence of enlrtlemenl lo a acY exists when the Company has sufficient evidence that a gift has been Jeft lo thern {through knOedge of the existence of a valid wll and the death of the benefactorl and the executor is satisfied that the propety in question will not be required to satisfy Claims in the estste. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount e1Vable, which will generally be the expected cash amount to be distribule(I to the Company. can be reliab measured. School fee and other income is recoynised in the period to which the fees relate on a term by term basis. Where fee5 are mrtigated by grants or other subsidies, Ihese are deducted against the income and analysed in the notes to the financial statements. The Charty also takes a prudent view towards the recoverabilrty of dcHJbiful debts and where rt appears that recovery of debts for school fees may be protracted or unlikety. prowsion is made in fvll. Page 13
THE ITALIA CONTI ACADEMY TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Accounting policies (continued) 2.4 Expenditure Expenditure is recognised once the is a kgal or Constructive obligation lo transfer economic benefrt to a third paty. it is probable th* a transfer of economic beneffts wll be required in settlement and the amount of the obligalion can be measured reliabty. Expenditure is classified by activity. The costs of each activity a made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activrty. Shared costs which contnbute to more than one activsty and 5UPPOrt costs which are not attributable to a single activrty are apportioned belween those activities on basis consistent wth the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portron of the asset's use. Expenditure on charitable activit is incurred on directty undertaking the acts'vilies which fvrther the Company's obs'ectives, as well as any associated support costs. All expenditure is inclusive of Irrecoverab VAT. 2.5 Debto Trade and other debtor5 are recognised at the settlement amount after any trade discount offered. Prepayments are valued al the amount prepaid net of any trade discounts due. 2.6 Cash at bank and in hand Cash at bank and in hand includes cash and short-tem highly liquid investments with a short malurrty of three months or less from the date of acquisition or opening of the deposit or similar accounL 2.7 Liabilities and provisions Liabilities are recognised when there is an oblig81ion at the Balance Sheet dale as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement. and the amount of the settlement can be estimated Teliabty. Liabilities are recognised al the amount that the Company an11pate$ it will pay lo settle the debt or the amount (( has received as advanced payments for the gwds or services il must provide. Prowsion5 a rneasured at the best estimate of the amounts required lo settle the obligation. Where the effect of the time value of money is material, the prowsion Is based on the present value of those amovnls, discounted at the pre-tax discount Tate that rellects the risks specific lo the liability. The unwnding of the diseounl is recognised in Ihe Slalemenl of Financial Acts'vi(ies a5 a finance cost. 2.8 Finaneial instruments The Company only has financial assets and financh31 liabilities of a kind that qualfy as basic financial instruments. Basic financial instruments are inrtially recognised at transaction value and subsequently measured al their settlement value wilh the exception of bank loans which are subsequently measured at amortised ¢ost using the effective interest metho¢J. Page 14
THE ITALIA CONTI ACADEMY TRUST {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 AUGUST 2022 Accounting policies {continued) 2.9 Pensions The Company operates a defined conlributK)n pension scheme and the pension charge represents the amounts payable by the Company lo the fund in respect of the year. 2.10 Fund accounting General funds are unrestncted funds wtth are available for use at the discretion of the Trustees in fttrtherance of the general objects.ves of the Company and which have not been designated tor other purposes. 2.11 Distribution$ Distrib(rtions by way of grants and bursaries lo pupils of the s¢hool are shown as deductions from fees in note 4 of the financial statements. Distribulions by way of payment of fees for pupils and students from other educational establishments are show as dislnbutions un¢Jer Resources Expended in the Statement of Financial PoSitn. Income from charitsble aclivities Unrestricted funds 2022 Total funds 2022 Teaching Grants made to students 226.655 171.9551 226,655 {71,955) Total 2022 154.700 154,700 Un$1cted funds 2021 Tot81 lunds 2021 Teaching Grants made lo students 583,507 {t37,073) 583,507 (137,073) Tolal 2021 446,434 446,434 Page 15
THE ITAUA CONTI ACADEMY TRUST IA Company Limited by Guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Income from other trading activities Income from fundraising events Total funds 2022 Total 2022 Unreslncted funds 2021 Tolal lunds 2021 Sundry income Grants 1.254 5,089 1.254 5,089 Total 2021 6,343 6,343 Anatysis of expenditure by activities ActivitTres undertaken directly 2022 Totsl funds 2022 Teaching Management & admin 70,331 75,971 70,331 75.971 146,302 146.302 Page 16
THE ITALIA CONTI ACADEMY TRUST IA Company Limtted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Analysis of expenditure by activities Icontinuedl Activities undertaken directly 2021 Total funds 2021 Teaching Welfare Support Management & admin 470,889 1,245 964 470,889 1,245 964 12,374 12.374 485,472 485,472 Analysis of direct costs Management & admin 2022 Total funds 2022 Teaching 2022 Weffare 2022 Support 2022 Slaff costs Rates & water Insurance 47.205 1.151 47.205 1,151 115 115 Light & heat Postage, stationery & subscflptions Travel 650 650 132 132 114 1.401 18681 309 10,242 (3,6391 23.990 114 1,401 {8681 309 Education costs Bank charges Legal and professional Bad debts Storage Loss on disF)osal of investment property 10.242 {3,6391 23, 65.500 65.500 70.331 75,971 146,302 Page 17
THE ITAUA CONTI ACADEAIY TRUST {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Analysis of expenditure by activities Icontinuedl Analysis of direct costs {¢ontinuedl Management & admin 2021 Total fvnds 2021 Teaching 2021 Welfa 2021 Support 2021 Staff Costs Insurance Light & heat Postage, ststionery & subscriptions Sundries Travel Canteen 391. 705 391, 705 145 442 145 442 7.954 404 8,358 1,245 560 13,670 1,070 1,177 7,236 492 1.245 560 13.610 1.070 1.177 7.236 492 Repairs Shows Educatn costs Bank charges Legal and professional Bad debts Storage 12,228 12.228 25. 718 21,485 25.718 21.485 470.889 1.245 964 72,373 485.477 Auditorfs remuneration 2022 2021 Fees payable to the Compan$ auditcw for the audit of the Company's annual accounts 4.500 Fees payable to the Companls auditor in respect of.. All non4udil service5 not included above 1.350 1.250 Page 18
THE ITALIA CONTI ACADEMY TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Stsff costs 2022 2021 Wages and salaries Soci81 security costs Contribution to defined contribution pension schemes 41,746 4,447 1,013 366,069 20,559 5,077 47,206 391, T05 The aver8 number of persons employed by the C(Mnpany during the year was as follows.. 2022 No. 2021 No. Average number of employees 16 No employee received rernuneratK arrw)unting to more than £60.000 in either year. Trustees. remuneration and expenses During the year. no Trustees received any remuneralion other benefits (2021- £NILJ. During Ihe year ended 31 August 2022. no Trustee expense$ have been incurred f2021- £NIL). Investment property Freehold investment property Al 1 September 2021 Disposals 349,500 1349.5001 Al 31 August 2022 The carying value of the investment property. representsng a right to occupy the Charity premises. represents the amount that the Charity is entrtled to receive rf, for any reason, il becomes unable to continue that occupation, or an aheTnalive accommodation salisfaclory to the Trustees at their discretion is not prOved. This is considered lo be the effective market value of the ri9hls held by the Charity. As set out in the Trustees. Report, fcllowing a change in premises, in which the Academy merged rts courses with those of ltslia Conti Arts Centre knmrted and moved to new premises in Woking, effective from 1 September 2022, the Charity has been pemitted to continue ils activtties as for the academic year Page 19
THE ITAUA CONTI ACADEMY TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Investment property (continued) 2021r22 into 2022r23, while the Trustees ctsisider the most appropriate Course of action in pursuance of i(s eharitable objective5. The disposal by the Academy of the property al Avondale Hall. London resulted in 8 cryslallisation of ils asset. 10. Debtors 2022 2021 Due viithin one year Trade debtors Other debtors Prepayments and accrued income 112 34. 735 2,423 1,602 112 38, 160 11. Creditors: Amounts falling due within one year 2022 2027 Trade ¢redilors Amounts owed to Italia Conti Academy of Theatre Arts Limited Other creditors AccNals and deferred income 4.552 4.754 3,339 7.020 251 335,833 4, 164 82,352 19,665 422,600 Page 20
THE ITALIA CONTI ACADEMY TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 12. Statement of funds Staternent of funds- current year Balance at 1 September 2021 Balance at 31 August 2022 Incorne Expenditure Unrestricted funds Reserves 10.276 154.700 1146,3021 18,674 Statement of funds - prior year Balance at I Seplemljer 2020 Balance al 31 August 2021 Income Expenditu Unrestricted funds Reserves 42.971 452, 777 (485.472) 10,276 13. Summary of funds Summary of funds - current yeai Balance at 1 September 2021 Balance at 31 August 2022 Income Expenditure General funds 10,276 154.700 1146.3021 18,674 Summary offunds- PftOT year Balance al I Seplefnbe 2020 Balance al 31 Augusl 2021 Income Expenditurg General fvnds 42.971 452. 777 (485,472J 10.276 Page21
THE ITAUA CONTI ACADEMY TRUST (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 14. Analysls of net assets bets¥een funds Analysls of net assets between funds- current year Unrestrictèd funds 2022 Totsl tunds 2022 Current as5els Credrtors due wrthin one year 38.339 {19.6651 38,339 119,6651 Total 18,674 18,674 Analysis of net assets between funds- prior year UnrestlFCted funds 2021 Tot81 funds 2027 Investment property Current assets Cre<litors due within one year 349.500 83,376 (422.600) 349,500 83,376 (422.600) Total 10.276 10,276 15. Pension commitments The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an in¢Jependenlly administered fund_ The pension cost charge represents contributions payable by the group lo the ftjnd and amounted to £1.01312021- E5.0771. Page 22
THE ITALIA CONTI ACADEMY TRUST IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 16. Related party transactions As set in the Report of the Trustees, the Charity has a dose working relationship with The Italia Conti A¢aéemy of Theatre Arts Limrted Clhe Academl'l. which has provided the endowments allowing the Charity to exist and to operate. Although the Trustees are independent and the Chanly has its own fee income an¢J stsff, they are Contracted annually by the Academy and there is no obligation for the contract to be renewed_ On 31 August 2022. the Charity entered Into a business transfer agreement to transfer operations frcxn the Academy to Ilalia Conti Arts Centre Limiled. All overhead allocations and treasury management 15 shared vth the Academy. Subject al all times to the Truslee oversight. The Academy is considered to be a reed party'because, and only because of ils close relationship wilh the Charity, in the intent of 9iving a true and fair wew. Page 23