# **COMPANY REGISTRATION NUMBER: 01944551 CHARITY REGISTRATION NUMBER: 292463**
# **Black Swan Arts Ltd Company Limited by Guarantee Unaudited Financial Statements**
**31 March 2022**
## **Black Swan Arts Ltd**
## **Company Limited by Guarantee**
## **Financial Statements**
## **Year ended 31 March 2022**
||**Page**|
|---|---|
|Reference and administrative details|**1**|
|Chair’s Report|**2 – 3**|
|Trustees' Annual Report (incorporating the Director's Report)|**4 - 9**|
|Independent Examiner's Report to the Trustees|**10**|
|Statement of Financial Activities (including Income and Expenditure Account)|**11**|
|Balance Sheet|**12**|
|Notes to the financial statements|**13 - 21**|
**- 0 -**
## **Black Swan Arts Ltd**
## **Company Limited by Guarantee**
## **Reference and administrative details**
## **Year ended 31 March 2022**
|**Registered Charity name**|**Registered Charity name**|Black Swan Arts Ltd|
|---|---|---|
|**Charity registration number**||292463|
|**Company registration number**||01944551|
|**Principal address**|**and registered office**||
|||The Black Swann|
|||2 Bridge Street|
|||Frome|
|||Somerset|
|||BA11 1BB|
|**The Trustees**|R Morland||
||R Hart|(retired 21 June 2022)|
||S Sherrin|(retired 7 February 2022)|
||H Roughley||
||M Lloyd|(appointed 5 August 2021, retired 5 February 2022)|
||A Webb|(appointed 21 March 2022)|
||I Fooks|(appointed 9 May 2022)|
||L Ponsillo|(appointed 9 May 2022)|
||M Golder|(appointed 5 July 2022)|
||R Whitewick|(appointed 5 July 2022)|
||L Thompson|(appointed 17 August 2022)|
|**Independent Examiner**||Joshua Kingston BSc ACA|
|||Burton Sweet Limited|
|||The Clock Tower|
|||5 Farleigh Court|
|||Flax Bourton|
|||Bristol, BS48 1UR|
**- 1 -**
## **Black Swan Arts Ltd**
## **Company Limited by Guarantee**
## **Chair’s Report**
## **Year ended 31 March 2022**
## **Chair's Report**
This report looks back on the financial year that runs from 1 April 2021 to 31 March 2022, as that is the period covered by our accounts.
This was the second consecutive year when COVID continued to have an impact on all aspects of our activities. As well as restrictions at the start of the year, BSA, like all other organisations, had to deal with periods of staff and volunteer sickness and a real caution amongst many to return to our building which affected both volunteers and visitors. This made it very hard to engage in any sort of long-term planning, and – in particular – to programme our upstairs Long Gallery with any confidence. It wasn’t until early 2022 that exhibitions returned to that space, but we were fortunate enough to be able to use the (downstairs) Shop space for a gallery programme for an early part of the year.
We expanded the Shop’s activities throughout the year. As well as hosting various exhibitions, we gradually extended the number of artists/craftpeople’s whose work is sold there. This provides them with profile, and income, and is an increasingly important part of our role as an Arts Centre that supports the local arts community. In order to do this, we gradually extended the number of days that the shop was open during the year, and also built up the pool of staff that work there. Although there is a risk in doing so, not the least because our salary costs have increased, it has done wonders in ensuring that Black Swan Arts presents a public face to the world.
Our programme of exhibitions and other activity during the year were often in partnership with other arts and community organisations. The year started with the major exhibition In Pursuit of Spring, in collaboration with Somerset Art Works, and we also collaborated with them on the exhibition Slow Time – exploring solargraphs - towards the end of the year. We also worked with Frome Open Studios – providing a showcase for their work which, we hope, encouraged more people to seek out their studios around town. Our collaborations also included our ongoing partnership with Window Wanderland, and we were also delighted to welcome back lantern making workshops for Light the Night– the community Lantern Parade which celebrates the start of Christmas in Frome.
Other artistic highlights in the shop during the year included David Parfitt’s wonderful exhibition of watercolours and drawings, which proved very popular over its long run. We also started to re-open the Long Gallery, hosting exhibitions that had originally been planned to appear in 2020, including a shared exhibition of pen and ink drawings at differing scales from Guy Watts and Daniel McGirr – A Duet of Lines.
We continue to host creative workers in all our studio spaces. Our Studio Shops were tenanted by illustrator Jo Joof, Badger House Leather and jeweller Daniel Musselwhite, whilst other tenants included artist Jo Walton, and The Write Place in our attic space. Discover Frome, the town's information centre, also continues to be based here. It was another
**- 2 -**
## **Black Swan Arts Ltd**
## **Company Limited by Guarantee**
## **Chair’s Report**
## **Year ended 31 March 2022**
challenging year for our tenants, given the overall situation, and we again reduced rents where appropriate, as well as providing moral support.
We continued to collaborate closely with our key tenants, River House, who have continued to provide wonderful food and drink, and are always a dynamic and cheerful presence in the centre of the building.
Our financial performance over the year has, as in the previous year, been impacted by COVID. Our income from usual sources has been reduced significantly, but so have some of our costs. We were however lucky enough to secure government funding to support businesses in the Leisure Industry, via Mendip District Council, and some of the income from the Arts Council’s Cultural Recovery Fund reported on in last year’s accounts also supported this year’s accounts. As a result, our overall financial result for the year was positive. We are very aware that 2022/23 will be much more challenging, as we return to a more ‘normal’ way of working, but still with many uncertainties and in particular the growing economic difficulties. As an unfunded community arts organisation, Black Swan Arts is more vulnerable than many.
The commitment of all Trustees this year has been exceptional. We were particularly sad to say goodbye to Steve Sherrin and, more recently, to Rosie Hart, whose contribution as Digital Trustee has been crucial to our success. Over the last few months, we have been lucky enough to recruit several new trustees, and have also welcomed back two previous trustees, including myself.
We have also been very grateful to the hard work and commitment of Emma Warren, the Centre Manager, and Lin Bradshaw Bullock, bookkeeper, as well as various members of the shop team.
Alex Webb
Chair, Board of Trustees
**- 3 -**
## **Black Swan Arts Ltd**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)**
## **Year ended 31 March 2022**
The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 March 2022.
## **Structure, governance and management**
## **Constitution**
The charity is a company limited by guarantee governed by Memorandum and Articles of Association dated 4 September 1985, amended 30 June 1997, and by-laws dated 27 July 1998.
## **Appointment of trustees**
Under the charity's by-laws all members of The BSA Ltd will also be Directors of The Black Swan Arts Ltd. Directors will be appointed and selected by the existing board. An individual nominated to become a Director should attend at least 1 meeting of any category, before becoming eligible to be appointed as Director.
The Chair must at all times be aware of a) the long-term needs of the organisation in establishing a balance of skills within the trustees and b) the agreed number of trustees (8-10).
When a vacancy arises, the organisations situation must be assessed to determine what type of skills are required to sustain Black Swan activities. The latest Board Audit and Review should be referred to at this stage. Vacancies should be openly advertised across the region. The skills required will be decided at the general meeting, as will the method of seeking appointees. When necessary, a small sub-committee will undertake to look at prospective candidates.
## **Induction and training of trustees**
The new Trustee(s) will be given the Board Introduction Pack and will be introduced to the role and responsibilities of the Trustees by the Chair. The new Trustee(s) are required to sign the Code of Conduct and Trustee Contract. The new Trustee(s) should receive a full induction within 1 month of appointment.
Trustees should also refer to the Board Development Plan. Trustees are required to attend training and development events.
## **Organisational structure**
Trustees are supported by a part-time Centre Manager and part-time Bookkeeper.
**- 4 -**
## **Black Swan Arts Ltd**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)**
## **Year ended 31 March 2022**
## **Relationships with related parties**
The charity has a wholly owned trading subsidiary BSE Frome Ltd which is incorporated in England and Wales. This is the company that trades as Black Swan Café. There are 3 directors chosen from amongst the trustees.
## **Risks**
The major risks to which the charitable company is exposed, as identified by the trustees, have been reviewed and systems or procedures have been established to manage those risks.
## **OBJECTIVES AND ACTIVITIES**
## **Objects**
The objects of the charity as stated in the memorandum and articles of association are; -
(a) to promote any charitable purpose which will encourage the exercise and maintain the standard of crafts and improve craftsmanship and foster and increase the interest of the public therein;
(b) to advance the education of the public concerning the arts and crafts and to foster a greater cultural awareness;
(c) to provide opportunities for recreation and leisure time occupations with the object of improving the conditions of life for the inhabitants of the town of Frome and its neighbourhood;
(d) to preserve for the benefit of the inhabitants of the neighbourhood the buildings known as the Black Swan Inn and the Round Tower.
## **VISION AND MISSION STATEMENT**
## **Summary**
Black Swan Arts (BSA) is a charity and a centre for art and crafts in Frome and the wider region. Housed in a listed and locally important building it creates inclusive opportunities for all of the community.
## **Support for arts practitioners**
BSA will support practitioners of contemporary and traditional arts and crafts, at all stages of their careers. In a dynamic and creative town, it will act as a hub for artists and makers to meet, make connections and develop their careers. As part of this we will provide opportunities through our studio spaces for early career professionals to develop as small businesses.
In addition, our Open Exhibitions and gallery programmes will offer opportunities for artists at all stages of their practice to showcase their work to audiences, and to make valuable sales.
**- 5 -**
## **Black Swan Arts Ltd**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)**
## **Year ended 31 March 2022**
## **Our building and the community**
We will offer the great resource that is our building and its spaces as a venue for arts-based activities of all sorts for community participation.
We will seek out partners to collaborate with, who can bring their particular expertise to BSA. This will include arts/crafts-based workshops, for people of all ages, but will also include talks and skill-sharing, and will also include projects such as our Young Open which bring many new visitors to the building.
## **Art**
We will continue to bring excellent, thought provoking and inspirational work to local audiences. We will do so through a varied programme of work, which is skilfully curated and considered by our small voluntary Programming Group.
## **Viability**
To fulfil BSA’s charitable objectives, we need to develop and maintain a realistic and sustainable business model, which is capable of adapting to the changing circumstances within which we operate, and which is supported by effective and appropriate structures and systems.
## **Public Benefit**
In setting objectives and planning activities trustees have taken note of the Charity Commission guidance on public benefit.
BLACK SWAN ARTS is a dynamic venue for the promotion of contemporary arts and crafts, based in Frome, Somerset. The Guild promotes artistic quality and originality, encouraging and exhibiting two and three-dimensional work of an innovative and challenging nature, produced by practicing professional artists and community artists.
Our purpose is to provide an enriching and challenging arts experience for everyone.
**- 6 -**
## **Black Swan Arts Ltd**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)**
## **Year ended 31 March 2022**
## **ACHIEVEMENTS AND PERFORMANCE**
## **Exhibitions**
Our main exhibition programme during the year mainly took place in the Shop area, only moving back to the Long Gallery from the start of 2022.
These Long Gallery Exhibitions were not stewarded, so attendances were not collated.
|||||Total Atts|No of|
|---|---|---|---|---|---|
||||||days open|
|_27/03/2021_|_27/06/2021_|_In Pursuit of Spring_|_with SAW_|1490|25|
|_01/07/2021_|_25/07/2021_|_Open Art Trail_|_highlights in Shop_|1110|17|
|_29/07/2021_|_03/10/2021_|_20 Miles_|_David Parfitt_|3385|52|
|_07/10/2021_|_14/11/2021_|_Frome Arts Society_||||
|_16/11/2021_|_24/12/2021_|_Encaustic Works_|_Mark Karasick_|1949|23|
|_28/12/2021_|_27/02/2022_|_Finding Light_|_Abigail Reed_|||
|_15/01/2022_|_27/02/2022_|_Slow Time_|_with SAW_|||
|_03/03/2022_|_03/04/2022_|_A Duet of Lines_|_Guy Watts & Daniel_|_McGirr_||
## **Exhibitions – Round Tower**
We were delighted to welcome community and other artists back to the Round Tower during the year. Since we do not steward those exhibitions, we do not collate information on attendances.
13-30 August Frome Art Society In Company 3-19 September Active and in Touch Portrayal of a Pandemic 20 Nov-5 Dec Old Bakery Artists Together Again 5-15 December Frome Wessex Camera Club Closing Down and Opening Up 8-19 December CQ West Untold Stories 4-27 March Frome Town Council Mother Makers
## **Over Events and Collaborations:**
Other collaborations and events taking place in the year included:
Christmas Makers Market
Lantern Making workshops with Light The Night
Bessie Bider – Introduction to Felting Felt & picture making workshops Finger puppet making workshops
Frome Community Education: Watercolour and History of Art classes, autumn 2021
**- 7 -**
## **Black Swan Arts Ltd**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)**
## **Year ended 31 March 2022**
## **FINANCIAL REVIEW**
During the year, Black Swan Arts Ltd received total income of £128,369 (2021: £118,958), and total expenditure incurred was £141,498 (2021: £85,367). This resulted in a loss overall of £13,129, compared to a surplus in 2021 of £33,591. It is worth remembering that Black Swan Arts was closed for the majority of 2021, due to the impact of the pandemic, resulting in significant savings, and was also lucky enough to receive government funding both through the Cultural Recovery Fund and also local authority support for businesses and leisure providers. 2022 has been much more of a transitional year, when the building was open for the majority of the time, but when not all its income-generating activities were back in place. Our aim for 2022/23 onwards is, of course, to deliver a balanced budget. As at 31 March 2022 total funds were £468,214 of which free reserves were £24,819 (2021: £19,416).
## **RESERVES POLICY**
The trustees have adopted the following reserves policy. They will aim to ensure that, at all times, the level of reserves is appropriate to the level of the Charity's activities.
The trustees will review annually the nature of the income and expenditure streams, the need to match variable income with fixed commitments, and the nature of the reserves in order to decide on the level of reserves required for the charity to be managed efficiently and to enable future services to remain uninterrupted. Further reserves can be achieved through fundraising, one off grants and donations.
## **Use of reserves**
Reserves are used to: Protect the long-term delivery and continuity of services. Ensure the upkeep of the property and to help fund any major repairs/alterations required.
## **Level/form of reserves**
Trustees decide the level of reserves required. The current aim of the Trust is to build up free reserves approximating to 6 months operating expenses (2022: £70,749). Decisions on the use of reserves will be made by the Board.
**- 8 -**
## **Black Swan Arts Ltd**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)**
## **Year ended 31 March 2022**
## **RESPONSIBILITIES OF THE TRUSTEES**
The trustees (who are also the directors of The Black Swan Arts Ltd for the purposes of company law) are responsible for preparing the Chair’s Report and the Trustees Annual Report (incorporating the Directors’ Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **SMALL COMPANY PROVISIONS**
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees' annual report was approved on 28 November 2022 and signed on behalf of the board of trustees by:
Alex Webb Chair
**- 9 -**
## **Black Swan Arts Ltd**
## **Company Limited by Guarantee**
## **Independent Examiners' Report**
## **Year ended 31 March 2022**
I report to the trustees on my examination of the financial statements of Black Swan Arts Ltd ('the charity') for the year ended 31 March 2022.
## **Responsibilities and basis of report**
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent examiner's statement**
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:
1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
2. the financial statements do not accord with those records; or
3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or
4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 accounts to be reached.
Joshua Kingston BSc ACA Burton Sweet Limited The Clock Tower 5 Farleigh Court Flax Bourton Bristol, BS48 1UR Date: 28 November 2022
**- 10 -**
## **BLACK SWAN ARTS LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)**
## **YEAR ENDED 31 MARCH 2022**
|**Note**
**Income from:**
Donations and legacies
**5**
Charitable activities
**6**
Other trading activities
**7**
**Total income**
**Expenditure on:**
Other trading activities
**8**
Charitable activities
**9**
**Total expenditure**
**Net income/(expenditure)**
**10**
**Transfers between funds**
**21**
**Net movement in funds**
**Total funds at start of year**
**21**
**Total funds at end of year**
**21**|**Unrestricted**
**Funds**
**£**
1,899
81,480
44,990
128,369
31,431
98,544
129,975
(1,606)
7,009
5,403
19,416
24,819|**Endowment**
**Funds**
**£**
-
-
-
-
-
11,523
11,523
(11,523)
(7,009)
(18,532)
461,927
443,395|**Total Funds**
**2022**
**£**
1,899
81,480
44,990
128,369
31,431
110,067
141,498
(13,129)
-
(13,129)
481,343
468,214|Total Funds
2021
Restated
£
11,361
82,520
25,077
118,958
1,511
83,856
85,367
33,591
-
33,591
447,752
481,343|
|---|---|---|---|---|
The Charity has no recognised gains or losses other than the results for the year as set out above.
All of the activities of the charity are classed as continuing.
Prior year fund comparatives are disclosed in note 14.
The notes on pages 13 to 21 from part of the financial statements
11
## **BLACK SWAN ARTS LIMITED**
## **BALANCE SHEET**
## **AS AT 31 MARCH 2022**
|**Note**
**Fixed assets**
Intangible Assets
**15**
Tangible assets
**16**
Investments
**17**
**Current assets**
Stock Asset
Debtors
**18**
Cash at bank and in hand
**Liabilities**
Creditors : amounts falling
due within one year
**19**
**Net current assets**
**Total assets less current liabilities**
Creditors : amounts falling
due after more than one year
**20**
**Net assets**
**FUNDS**
**Unrestricted funds**
General funds
**Endowment funds**
**Total funds**
**22**|**2022**
**£**
14,432
499,079
100
513,611
1,673
2,722
51,864
56,259
(18,385)
37,874
551,485
(83,271)
468,214
24,819
443,395
468,214|2021
Restated
£
16,942
512,099
100
529,141
-
2,266
55,226
57,492
(15,121)
42,371
571,512
(90,169)
481,343
19,416
461,927
481,343|
|---|---|---|
For the year ending 31 March 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
These financial statements were approved by the Trustees on 28 November 2022 and are signed on their behalf by:
R Morland Trustee
## **Company registration number:**
## **01944551**
The notes on pages 13 to 21 from part of the financial statements
12
**BLACK SWAN ARTS LIMITED NOTES TO THE FINANCIAL STATEMENTS**
**YEAR ENDED 31 MARCH 2022**
## **1 General information**
The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is The Black Swan, 2 Bridge Street, Frome, Somerset, BA11 1BB.
## **2 Statement of compliance**
The financial statements have been prepared in accordance with the historical cost convention (except for investments which have been included at fair value) and in accordance with the Statement of Recommended Practice: 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) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.
## **3 Accounting policies**
## **Basis of preparation**
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **Funds**
Unrestricted funds, which include designated funds, can be used in accordance with the charitable objects at the discretion of the trustees.
Restricted funds 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. Expenditure which meets these criteria is charged to the fund. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Endowment funds may not be converted into income. Further explanation of the nature and purpose of the charity's endowment fund is included in the notes to the financial statements.
## **Going concern**
There are no material uncertainties about the charity’s ability to continue as a going concern, despite the significant uncertainty being caused by the worldwide COVID-19 crisis. Whilst the Trustees expect there to be a significant impact on the charity’s operations and reserves in the coming months and years, the charity has sufficient reserves to be able to meet these challenges.
## **Consolidation**
The charity is not required to prepare consolidated accounts in accordance with the Charities Act 2011, and has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the charity and its subsidiary undertakings comprise a small group.
## **Judgements and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
13
**BLACK SWAN ARTS LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS**
**YEAR ENDED 31 MARCH 2022**
- **3 Accounting policies** _**(continued)**_
## **Income**
Incoming is included in the Statement of Financial Activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
- Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
- ∙∙ Legacy income is recognised when receipt is probable and entitlement is established.Income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
## **Expenditure**
Expenditure is recognised in the period in which it is incurred and includes any attributable VAT which cannot be recovered.
Costs which are directly attributable to meeting charitable objects are classified as provision of charitable services. These costs are directly allocated to activities, including staff costs which are allocated based on time spent by individual employees.
Costs which are indirectly attributable to meeting charitable objectives are classified as support costs. Such support costs are allocated to activities based on the percentage of support staff time.
Costs associated with the general running of the charity which are not attributable to meeting charitable objects are classified as governance costs. These costs include management time spent on strategic planning issues and statutory compliance.
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
## **Amortisation**
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
## - 10% Straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
## **Tangible fixed assets**
All fixed assets are initially recorded at cost. Assets costing less than £100 are recognised as resources expended in the Statements of Financial Activities in the year that they are purchased.
All assets are carried at initial cost net of depreciation, except freehold property which is carried at valuation net of depreciation.
## **Depreciation**
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Land and Buildings - 2% straight line Fixtures and Fittings - 10% straight line
Equipment - 25% reducing balance Computer Equipment - 33% straight ine
14
**BLACK SWAN ARTS LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
**5 Income from: Donations and legacies**
## **3 Accounting policies** _**(continued)**_
## **Investments**
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
## **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash at bank and cash in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **Creditors**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **4**
## **Limited by guarantee**
The company is limited by guarantee not having a share capital. The members who are also the directors and trustees undertake to contribute to the assets of the company in the event of it being wound up either whilst a member or within one year of their membership ceasing. The maximum contribution required from each member is £1.
|Donations
CJRS Furlough Grants|**Total Funds**
**2022**
**£**
1,899
-
1,899|Total Funds
2021
Restated
£
6,563
4,798
11,361|
|---|---|---|
All income from donations and legacies in the current and previous year was unrestricted.
## **6 Income from: Charitable activities**
|Performance-related grants
Gallery Sales|**Total Funds**
**2022**
**£**
41,067
40,413
81,480|Total Funds
2021
Restated
£
77,505
5,015
82,520|
|---|---|---|
All income from charitable activities in the current and previous year was unrestricted.
15
**BLACK SWAN ARTS LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 MARCH 2022**
## **7 Income from: Other trading activities**
|Fundraising Events
Friends Subscriptions
Rental income
Sales of Products|**Total Funds**
**2022**
**£**
-
1,399
37,905
5,686
44,990|Total Funds
2021
£
123
2,019
22,935
-
25,077|
|---|---|---|
All income from other trading activities in the current and previous year was unrestricted.
## **8 Expenditure on: Other trading activities**
|Gallery & Exhibitions
Cost of products|**Total Funds**
**2022**
**£**
29,060
2,371
31,431|Total Funds
2021
£
1,511
-
1,511|
|---|---|---|
All costs of other trading activities in the current and previous year were unrestricted.
- **9 Expenditure on: Charitable activities**
|Gallery & Exhibitions
Education
Preservation of The Black Swan
Black Swan Café
Governance Costs
**Prior Year Comparative**
**Restated**
Gallery & Exhibitions
Education
Preservation of The Black Swan
Black Swan Café
Governance Costs|**Activities**
**Undertaken**
**Support**
**Total Funds**
**Directly**
**Costs**
**2022**
**£**
**£**
**£**
8,911
5,925
14,836
1,293
1,069
2,362
67,015
5,338
72,353
7,923
-
7,923
-
12,593
12,593
85,142
24,925
110,067
**Activities**
**Undertaken**
**Support**
**Total Funds**
**Directly**
**Costs**
**2021**
**£**
**£**
**£**
10,686
3,335
14,021
828
1,058
1,886
37,461
4,905
42,366
2,510
-
2,510
-
23,073
23,073
51,485
32,371
83,856|
|---|---|
16
**BLACK SWAN ARTS LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS**
**YEAR ENDED 31 MARCH 2022**
## **10 Net income/(expenditure) for the year**
|This is stated after charging:
Amortisation of intangible assets
Depreciation of tangible assets
Fees payable to the Independent Examiner for:
Independent examination of the financial statements|**2022**
**£**
2,510
13,657
1,500|2021
£
2,510
14,199
1,500|
|---|---|---|
## **11 Staff costs and numbers**
The total staff costs and employee benefits for the reporting period are analysed as follows:
|Wages & salaries
Pension contributions|**2022**
**£**
25,864
588
26,452|2021
Restated
£
16,558
419
16,977|
|---|---|---|
The average employee head count during the year was 4 (2021: 2)
No employee received emoluments of more than £60,000 during the year or the previous year.
The key management personnel are considered to be the trustees.
The total employee benefits received by key management personnel were £nil (2021: £nil).
## **12 Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **13 Trustee remuneration and expenses**
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
There were no expenses reimbursed to trustees or waived by trustees during the year (2021: £Nil)
Aggregate donations from Trustees, key management personnel, and other related parties was £50 (2021: £Nil).
17
**NOTES TO THE FINANCIAL STATEMENTS**
**YEAR ENDED 31 MARCH 2022**
## **BLACK SWAN ARTS LIMITED**
## **14 Statement of Financial Activities comparative figures**
|**For the year ended 31 March 2021**
**Restated**
**Income & Endowments**
Donations & legacies
Charitable activities
Other trading activities
Other income
**Total income**
**Expenditure on:**
Raising funds: costs of other trading activities
Charitable activities
**Total expenditure**
**Net income/(expenditure) for the year**
**and net movement in funds**
**Total funds at start of year**
**Total funds at end of year**
**15**
**Intangible Assets**
**Cost**
**Amortisation**
At 1 April 2021
Charge for the year
At 31 March 2022
**Carrying amount**
**At 31 March 2022**
At 31 March 2021
At 1 April 2021 and 31 March
2022|**Unrestricted**
**Funds**
**£**
11,361
82,520
25,077
-
118,958
1,511
72,333
73,844
(25,698)
19,416
45,114|**Endowment**
**Funds**
**£**
-
-
-
-
-
-
11,523
11,523
473,450
461,927
(11,523)|**Total Funds**
**2021**
**£**
11,361
82,520
25,077
-
118,958
1,511
83,856
85,367
447,752
481,342
**Goodwill**
**£**
**25,100**
8,158
2,510
**10,668**
**14,432**
16,942
33,591|
|---|---|---|---|
18
**NOTES TO THE FINANCIAL STATEMENTS**
## **BLACK SWAN ARTS LIMITED**
## **YEAR ENDED 31 MARCH 2022**
|**16**
**Tangible fixed assets**
**Cost**
At 1 April 2021
Additions
At 31 March 2022
**Depreciation**
At 1 April 2021
Charge for the year
At 31 March 2022
**Net book value**
At 31 March 2022
At 31 March 2021|**£**
576,152
-
576,152
71,968
11,523
83,491
492,661
504,184
**Land and**
**Buildings**|**£**
25,803
637
26,440
21,070
709
21,779
4,661
4,733
**Fixtures and**
**Fittings**|**Equipment**
**£**
26,358
-
26,358
23,176
1,425
24,601
1,757
3,182|**Total**
**£**
628,313
637
628,950
116,214
13,657
129,871
499,079
512,099|
|---|---|---|---|---|
|**17**
**Investments**
**Cost or valuation**
At 1 April 2021 and 31 March 2022
**Carrying amount**
At 31 March 2022
At 31 March 2021|**Shares in group**
**undertakings**
**£**
100
100
100|
|---|---|
All investments shown above are held at valuation.
The above investment represents 100% of the ordinary share capital of BSE Frome Limited (formerly The Black Swan Limited). The holding was acquired at par, and is valued at cost.
## **18 Debtors**
|**Due in less than one year:**
Trade debtors
Prepayments and accrued income|**2022**
**£**
1,686
1,036
2,722|2021
Restated
£
1,264
1,002
2,266|
|---|---|---|
19
**NOTES TO THE FINANCIAL STATEMENTS**
**YEAR ENDED 31 MARCH 2022**
## **BLACK SWAN ARTS LIMITED**
## **19 Creditors: amounts falling due within one year**
|Bank Loan and overdraft
Other creditors
Accruals and deferred income|**2022**
**£**
7,522
7,701
3,162
18,385|2021
£
6,883
5,425
2,813
15,121|
|---|---|---|
Lloyds Bank has a first legal charge over the Black Swan Guild commercial freehold property.
## **20 Creditors: amounts falling due after one year**
|Bank Loans & Overdrafts|**2022**
**£**
83,271
83,271|2021
£
90,169
90,169|
|---|---|---|
Included within creditors: amounts falling due after more than one year is an amount of £44,346 (2021: £52,283) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
## **21 Movement in funds**
**For the year ended 31 March 2022**
|**Unrestricted Funds**
General Funds
**Endowment**
**Total funds**
The Black Swan Arts and Crafts
Centre|**At 1 Apr**
**2021**
**£**
19,416
19,416
461,927
461,927
481,343|**Income**
**£**
128,369
128,369
-
-
128,369|**Expenditure**
**£**
(129,975)
(129,975)
(11,523)
(11,523)
(141,498)|**Transfers**
**£**
7,009
7,009
(7,009)
(7,009)
-|**At 31 Mar**
**2022**
**£**
24,819
24,819
443,395
443,395
468,214|
|---|---|---|---|---|---|
The assets of the permanent endowment comprise The Black Swan Arts and Crafts Centre at current book value excluding the Round Tower. The permanent endowment is 90% of the property value included in the fixed assets. A transfer of £7,009 was made in the current year to more accurately reflect the endowment funds held at 31st March 2022.
20
**BLACK SWAN ARTS LIMITED**
**NOTES TO THE FINANCIAL STATEMENTS**
**YEAR ENDED 31 MARCH 2022**
## **21 Movement in funds** _**(continued)**_
|**For the year ended 31 March 2021**
**Restated**
**At 1 Apr**
**2020**
**£**
**Unrestricted Funds**
General Funds
(25,698)
(25,698)
**Endowment**
473,450
473,450
**Total funds**
447,752
The Black Swan Arts and Crafts
Centre|**Income**
**£**
118,958
118,958
-
-
118,958|**Expenditure**
**£**
(73,844)
(73,844)
(11,523)
(11,523)
(85,367)|**Transfers**
**£**
-
-
-
-
-|**At 31 Mar**
**2021**
**£**
19,416
19,416
461,927
461,927
481,343|
|---|---|---|---|---|
## **22 Analysis of net assets between funds**
|**As at 31 March 2022**
Tangible Fixed Assets
Intangible Assets
Investments
Net Current Assets
Creditors greater than 1 year
**As at 31 March 2021**
Tangible Fixed Assets
Intangible Assets
Investments
Net Current Assets
Creditors greater than 1 year|**Unrestricted**
**Endowment**
**Total**
**Funds**
**Funds**
**£**
**£**
**£**
55,684
443,395
499,079
14,432
-
14,432
100
-
100
37,874
-
37,874
(83,271)
-
(83,271)
24,819
443,395
468,214
**Unrestricted**
**Endowment**
**Total**
**Funds**
**Funds**
**£**
**£**
**£**
50,172
461,927
512,099
16,942
-
16,942
100
-
100
42,371
-
42,371
(90,169)
-
(90,169)
19,416
461,927
481,343|
|---|---|
## **23 Related party transactions**
Included within debtors is £Nil (2021: Restated - £Nil) owed by BSE Frome Limited.
21